Kinder Morgan's (KMI) Q1 earnings fell 1.7% and missed estimates, while Q1 earnings at its Kinder Morgan Partners (KMP) affiliate slipped 5% and El Paso Partners (EPB) also posted a Y/Y decline.
KMP, which holds the majority of KMI's assets, had reported strong profit growth in recent quarters; KMP's earnings more than doubled in 2013, while KMI enjoyed a sixfold increase in net income last year.
Kinder said analysts’ projections that U.S. demand for natural gas could rise by a third by 2024 as “a little understated," touting demand for gas for LNG exports, electric generation, industrial use and shipment to Mexico as factors that bode well for the company’s future.
EOG says the net cash paid for settlements of the derivative contracts in Q1 was $34M, while actual realizations for crude oil and natural gas differ from average Nymex prices due to delivery location and quality adjustments.
EOG typically reports its adjusted profit figures that exclude impacts from mark-to-market commodity derivative contracts.
Noble Corp. (NE) +1.4% AH after Q1 earnings surged 70%, beating expectations, as the offshore driller saw new rigs help lift revenues.
Noble, with a fleet of ~77 drilling units, says revenues from drilling services, which makes up most of the company's top line, rose nearly 30% Y/Y to $1.2B as several new rigs went into operation and operating days improved.
Average daily revenues gained 5% to $223.6K vs. the previous quarter average of $212K, reflecting the addition of premium assets, while fleet utilization rose to 84% in Q1 compared to 82% in Q4 2013.
Contract backlog as of March 31 was ~$14.3B, vs. $15.4B as of Dec. 31.
Renewable Energy (REGI) -12.5% AH after saying it expects to report a Q1 earnings loss of $1.5M-$3.5M vs. analyst consensus estimate for a gain of $0.14/share, adjusted EBITDA of $1M-$3M vs. the company's prior guidance of $5M-$15M, and gallons sold at the lower end of earlier guidance of 45M-55M gallons.
REGI cites Q1's unseasonably cold winter, which reduced overall demand for diesel and biodiesel blends, and increased REGI's utilities expenses, particularly natural gas prices.
A group of investors reportedly agrees to back Eike Batista's struggling Oleo e Gas Participacoes (OGXPY) with an additional $73M, a move that could speed the energy company's exit from bankruptcy.
Bondholder Autonomy Master Fund is said to be leading the group after objecting to the recovery plan earlier this month, saying creditors had been treated unfairly.
As part of the restructuring plan, creditors will exchange ~$5.8B of debts owed by OGP for shares equivalent to 90% of the company's total capital, and bondholders will end up with a majority stake; Batista's stake will fall to 5.02% from 50.2%.
ConocoPhillips' (COP +1%) price target is raised to $85 from $80 at Oppenheimer to reflect the company's improving outlook on stronger financial and operating results (Briefing.com).
Last week, COP reiterated its value proposition of 3%-5% compound annual growth for both production and margins, by allocating 95% of its $16B annual capex in 2014-17 on projects with greater than $30/boe margins while maintaining a dividend yield above its U.S. peers and strong financial flexibility.
With higher production growth than other majors and a lower valuation than E&P peers, Oppenheimer says COP offers an alternative to both groups.
Noble Energy (NBL +1.2%) - together with its Israeli partners Delek Drilling (DKDRF), Avner Oil (AVOGF) and Ratio Oil in developing the Leviathan gas field - has bid to supply gas to a Cypriot power station, according to Globes.
The deal is expected to be worth ~$3B, and the report says NBL and its partners stand a good chance of winning the tender.
The partners have signed two foreign gas supply contracts this year: a $500M deal with Jordan's Arab Potash Co. and a $1.2B contract with the Palestinian Authority.
Precision Drilling (PDS +5.3%) is upgraded to Overweight from Underweight at Morgan Stanley, which believes the oilfield services company may double its Canadian land-drilling business over several years, benefiting from its exposure to the liquefied natural gas market which should see meaningful secular growth.
The firm says Canadian service providers Calfrac Well Services (CFWFF) and Trican Well Services (TOLWF) also could see growth for pressure pumpers.
Global Infrastructure Partners currently owns 50% of Ruby Pipeline, with Kinder Morgan (KMI +0.8%) owning the other half, though KInder is slated to sell its stake to El Paso Pipeline Partners (EPB +0.9%).
Another potential problem related to fracking has been discovered in North Dakota, where piles of garbage bags have been found in two places recently filled with “oil socks” used to capture silt found in the waste water from fracking, but which also contain radioactive waste.
Dejour Energy (DEJ +5.5%) says gross production at its Woodrush oil project in British Columbia has reached 540 boe/day (380 net), a 60% increase vs. gross daily production of 316 boe in Q4 2013.
Closed the purchase of natural gas producing assets and related processing facilities adjacent to Woodrush, including a 54% working interest in a currently producing Halfway formation well and a 74% working interest in three shut-in Halfway natural gas wells.
DEJ has a 70% ownership stake in the Woodrush project.
Alberta looks likely to implement energy efficiency measures when it revamps its climate-change policy to win support for its oil sector, an about-face on the former premier’s vow that the province wouldn’t enact new rules until the U.S. did.
The province plans to have new regulations on emissions in the near future and may include a higher carbon price, Alberta's environment minister says.
The struggle by Alberta’s oil producers for access to new markets, as reflected in U.S. delays in approving the Keystone XL (TRP) pipeline, comes amid opposition to oil sands bitumen because of its higher carbon intensity and concerns around air and water pollution.