Friday, August 22, 2014
- ONEOK (NYSE:OKS) has filed to sell up to $650M in limited partner interest through future offerings.
- ONEOK had $278M in cash at the end of Q2, and no borrowings under a $1.7B revolving credit facility. The company recently committed to investing $605M-$785M on a North Dakota natural gas processing facility.
4:05 PM| 4 Comments
- Citing a lack of near-term catalysts and a belief its buy thesis hasn't played out, Deutsche has downgraded Cabot Oil & Gas (COG -2%) to Hold, and cut its target by $2 to $38.
- Deutsche upgraded Cabot last December, arguing shares are attractively valued relative to other Marcellus shale plays. Shares are down 15% YTD.
- Argus rings the register on its Buy call on Pacific Gas & Electric (NYSE:PCG), the team citing worry over the revised federal indictment from the San Bruno blast, as well as lower authorized ROE and pending equity dilution.
- Previously: PG&E faces new charges, potential $1.1B fine over San Bruno blast
7:23 AMOMV next to pull staff from Kurdistan, waits on Crimea OMV next to pull staff from Kurdistan, waits on Crimea OMV next to pull staff from Kurdistan, waits on Crimea
- OMV (OTC:OMVJF) is now the latest energy group to withdraw its staff from Iraqi Kurdistan, as violence continues to escalate in the region.
- "We were able to book a gas find in Kurdistan but are not active at the moment. All the staff that were there have left," says CEO Gerhard Roiss. "We are also waiting and seeing (what happens) south of Crimea, where we had plans together with Exxon (NYSE:XOM)."
- Certain Midwest generation assets are being purchased from Duke Energy (NYSE:DUK) for $2.8B, and others from Energy Capital Partners for $3.45B.
- In total 12.5 megawatts of coal and gas generation is being acquired, nearly doubling Dynegy's (NYSE:DYN) existing portfolio to almost 26K megawatts.
- Dynegy has synergy targets of more than $40M per year, $200M in collateral efficiencies, and nearly $500M in present value cash tax savings.
- 2015 adjusted EBITDA and free cash flow accretion per share is expected to by about 125% and 220%, respectively (assuming both deals close this year).
- Financing: Roughly $5B in unsecured debt issuance, $1.25B in equity and equity-linked securities, including $200M in stock issued to ECP, and $950M in incremental revolving credit facilities.
- Conference call at 8:30 ET
- Source: Press Release
- Rosneft (OTC:RNFTF) has agreed to acquire shares in North Atlantic Drilling (NYSE:NADL) through an asset swap and investments into the company's share capital.
- "The final parameters of the deal, including the amount of Rosneft's cash contribution in NADL's charter capital, will be defined upon receiving corporate and accountant's approvals which is expected till the end of the 2014," says Rosneft.
- The status of Kurdish crude oil will come to a head today, as the high-stakes dispute over a tanker carrying 1M barrels of Kurdish crude still situated in the Gulf of Mexico will be determined by a federal court in Texas.
- The ruling will define the status of importing the controversial crude, as the Iraqi Oil Ministry and the Kurdistan Regional Government wrangle over the latter’s right to produce and sell its natural resources.
- Previously: Kurds petition U.S. court to let tanker enter Texas
- ETFs: USO, OIL, UCO, SCO, BNO, DTO, DBO, CRUD, USL, UWTI, DWTI, DNO, SZO, OLO, OLEM, TWTI
- BP (NYSE:BP) is planning to spend A$10B ($9.3B) over the next decade on expanding its gas station network and developing oil and gas projects in Australia.
- The new objective is fueled by BP's new focus on expanding its retail business on the continent, while scaling back on refining operations.
- "The big opportunities we’re after is at the customer end of the business," says President Andy Holmes "Filling stations...that’s the area where we’re turning up our focus."
Thursday, August 21, 2014
- Amid the latest flareup of Middle East violence, one-time enemies Israel and Egypt are negotiating deals that may mean the sale of $60B in Israeli natural gas to liquefaction plants in Egypt.
- Executives at Noble Energy (NYSE:NBL) and units of Israel’s Delek Group said this week they expect to finalize by year-end agreements to deliver as much as 6.2T cf of gas over 15 years from the Tamar and Leviathan offshore fields to LNG facilities in Egypt.
- For Israel, the two fields have more than enough gas to supply it for decades, so it is seeking a way to export the excess, and shipping it to Egypt would be faster than building LNG plants; the Russia-Ukraine crisis has made energy security a top priority for Europe, which will be scrutinizing all potential energy sources.
- Baker Hughes (NYSE:BHI) is poised to win the biggest contract in Petrobras' (NYSE:PBR) $1.5B-$2B offshore drilling program, according to a Bloomberg report.
- BHI is said to have placed the lowest-cost bid for a contract representing half the drilling work being offered by the Brazilian company over the next four years, charging less per well compared with other drilling packages that have smaller volumes of work.
- Schlumberger reportedly offered the cheapest bid for a second package representing 30% of offshore wells and Halliburton (NYSE:HAL) placed the lowest-cost offer for the remaining 20% of work.
- Meanwhile, PBR has spudded the first appraisal well in the pre-salt Libra field, where production is scheduled to begin in 2017, plateauing at 1.3M bbl/day in 2030.
- Jim Cramer offers a shout-out for DistributionNOW (DNOW +1.6%), the distribution business that recently was spun out from National Oilwell Varco, as a long-term gainer based on the amount of money set to be spent on oil pipelines.
- Cramer notes that Rich Kinder believes $800B will be spent on new pipeline, and DNOW CEO Robert Workman confirmed the outlook on CNBC's Mad Money.
- Cramer sees DNOW as a one-stop shop for the industry's pipe, valve and flange needs, and notes that Warren Buffett has acquired a stake in the company.
- Mozambique will invest more than $30B to begin building capacity in its natural gas sector to produce 20M metric tons/year of liquefied natural gas, with the first exports due to start in 2018, according to the head of the national oil company.
- The investments will be made to develop the northern ports of Pemba and Palma, where a giant logistics base and LNG production plants are planned that will use gas produced from offshore fields in the Rovuma Basin being developed by Anadarko Petroleum (NYSE:APC) and Eni (NYSE:E).
- Commitments from APC and Eni already run into several billions of dollars, but the national oil company estimate is the first to put an overall price tag on the first phase of Mozambique's LNG ambitions.
- DuPont ([[DD] +0.4%) says it has filed a patent infringement lawsuit against SunEdison (SUNE -0.3%) and its NVT affiliate, alleging infringement of its patented tellurium paste technology.
- DuPont says that by sourcing and using photovoltaic cells and solar modules containing Samsung SDI front-side metallization paste, SUNE is infringing on DD's patent.
- The latest fleet status reports from Diamond Offshore (DO -0.2%) and Hercules Offshore (HERO -3.8%), released after yesterday's close, appear to provide another sign that offshore drilling likely will get worse before it gets better.
- Raymond James analysts explain that DO's negative fleet status included a lower than expected dayrate on the ultra-deepwater rig Ocean Monarch for one year at $425K, below the firm's estimated 2015 rate of ~$450K; a convertible option to alter the contract to an 18-month term also was below expectations.
- HERO's August fleet status included a contract termination; Raymond James had expected choppiness in the coming months through hurricane season, but says the termination and increase in potential rigs available is cause for further caution.
- Also: SDRL -0.7%, RIG -0.5%, ESV -0.2%, HP -1.3%, RDC -0.7%, ATW -1%.
- Cameco (CCJ -4.9%) slumps nearly 5% after Cowen analysts downgrade the stock to Market Perform from Outperform with a $20 price target, lowered from $25, as the firm anticipates an extended malaise in uranium pricing.
- Cowen reassesses its uranium market outlook and expect that a meaningful recovery in pricing will not surface until 2017; despite strong long-term fundamentals, expectation for a recovery is more distant as a result of Japan's painfully slow restart process and ample global supply.
- Statoil (STO +0.4%) signs a five-year deal with Lithuanian gas supplier Litgas to deliver 540M cubic meters/year of liquefied natural gas from 2015, a move that could end Lithuania's dependence on Russian gas.
- STO's first shipment of LNG is set to be delivered at the Klaipeda terminal in December, with a new floating terminal set to begin commercial operations by Jan. 1, 2015.
- Lithuania is currently dependent on Gazprom (OTCPK:OGZPY) for 100% of its gas, and the country has been paying 15% higher than the European average gas price.
- Rosetta Resources (ROSE +0.6%) is benefiting slightly from an upgrade from KLR Group, which raises its rating to Accumulate from Hold and announces a $59 price target after shares have sold off ~7% since Aug. 11.
- ROSE has significant upside potential in the Eagle Ford and Delaware Basin sites, the firm says, seeing the two locations driving 30% growth in 2015.
- An Upper Eagle Ford pilot test has been successful, exhibiting similar performance as Lower Eagle Ford, according to KLR; in the Delaware Basin, only 4-5 rigs are currently in place while ROSE plans to add 20 more in 2014.
- Whitecap Resources (OTC:SPGYF +6.9%) agrees to acquire a controlling stake in a Niska light sweet oil pool in Alberta for ~C$267M, which it says will add 2,500 boe/day of production.
- The purchase includes strategic facilities consisting of two oil batteries, water disposal infrastructure and pipelines which Whitecap says will be important for future low-cost production growth.
- The company also plans to sell ~600 boe/day of non-core production for C$57M, and announces a 12% dividend hike to a monthly C$0.07/share.
- Plains All American Pipeline (PAA -0.5%) announces plans to construct a 440-mile pipeline from its Cushing, Okla., terminal to Valero's (VLO +0.2%) Memphis refinery, to provide capacity of up to 200K bbl/day of domestic sweet crude.
- PAA expects total project investment of ~$900M and completion in late 2016.
- PAA says the Diamond pipeline project is underpinned by a long-term shipping agreement with VLO and a related contract for storage and terminalling services at the Cushing terminal.
- VLO holds an option until Jan. 2016 to become a partner in the pipeline and purchase a 50% interest.