Today, 12:23 PM
- BHP Billiton (BHP +1.2%) wins the bidding to partner with Mexican state oil company Pemex to develop the potentially lucrative Trion deepwater oil field in the Gulf of Mexico, outbidding BP (BP +0.6%), the only other company that participated, with a $624M offer.
- The competition marks the first time Pemex will join forces with a private company to drill since Mexico’s 2013 opening of the oil industry; BHP will own 60% of the project to Pemex's 40%.
- The Trion field was discovered in 2012 and is thought to contain ~485M barrels of commercial reserves; Pemex CEO José Antonio González Anaya has said the field should produce ~120K bbl/day by 2025.
- Bids for 10 other deepwater blocks up for auction are due to be opened later today.
Today, 10:47 AM
- BP (BP +0.4%) says it has acquired Repsol's (OTCQX:REPYF, OTCQX:REPYY) 3.06% stake in the Tangguh liquefied natural gas project in Indonesia for $313M.
- The purchase lifts operator BP's stake in the Tangguh plant, which processes 7.6M metric tons/year of lNG, to a little more than 40%.
- In June BP gave the go-ahead for the $8B expansion of Tangguh's third LNG train.
Today, 3:35 AM
- In a highly anticipated opening to foreign oil companies, Mexico will hold its first auction of deepwater oil and gas blocks today.
- The waters are believed to hold important energy reserves, but Mexico's longtime national oil company Pemex, does not have the capital or expertise to develop them.
- Investors are closely watching the results as a measure of the energy overhaul's success as well as potential bidders BP, Chevron (NYSE:CVX), Petrobras (NYSE:PBR) and Statoil (NYSE:STO).
- ETFs: EWW, MXF, MXE, UMX, DBMX, SMK, QMEX, HEWW
Thu, Dec. 1, 8:38 PM
- BP says it will move ahead with its long-delayed Mad Dog project in the deepwater Gulf of Mexico, its first major new platform in the region since the 2010 oil spill disaster.
- The oil giant BP says it has reduced the cost of phase 2 development to $9B, compared with an initial $20B estimate in 2013.
- "It could be an indication that they are optimistic that prices will recover, but even if not, they feel confident enough to sanction a project with prices ~$50/bbl in the deepwater," says Sanford Bernstein analyst Mark Tabrett. "Around two years ago, people didn't think that was an economic level to sanction anything in deep water, so [the decision] seems like a bullish indicator for the market."
- BP expects Mad Dog to begin producing oil in late 2021 and have the capacity to pump up to 140K bbl/day from up to 14 wells.
Thu, Dec. 1, 10:21 AM
- The price of oil pushed through $50 per barrel today, and is currently posting a 2.9% advance on the session at $50.91.
- The S&P 500 is flat and Nasdaq is down 0.45%, but the XLE has tacked on another 1.8% to yesterday's big rise.
- Mid-cap movers: Enerplus (ERF +8.2%), Southwestern Energy (SWN +7.9%), Range Resources (RRC +5.3%), Weatherford (WFT +7.1%), Ensco (ESV +8.2%), Crescent Point (CPG +6.3%).
- Among the large players: Exxon (XOM +1.1%), Chevron (CVX +2%), Shell (RDS.A +2.2%), (RDS.B +2.3%), BP (BP +2.4%), ConocoPhillips (COP +2%), Marathon (MRO +3.1%), Halliburton (HAL +2.3%)
Wed, Nov. 30, 5:45 PM
- Big oil earnings will double next year as crude prices continue to march higher and oilfield services costs remain depressed, Evercore ISI head of energy research Doug Terreson tells CNBC.
- Terreson's top picks are Royal Dutch Shell (RDS.A, RDS.B), BP, ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), but he also sees upside for smaller independent E&P companies and oilfield services firms.
- "While we expected OPEC to cut production, today's outcome exceeded our expectations," Terreson says, "so this is a positive outcome for the oil markets, and we also think for the outlook for energy stocks in 2017 too," adding that he is "unrepentantly bullish."
Wed, Nov. 30, 9:50 AM
- Shares of energy companies surge at the open, as hopes for an OPEC deal to cut production send crude oil futures soaring.
- Reports say Saudi Arabia is prepared to accept "a big hit" to production and agree to Iran freezing output at pre-sanctions levels.
- In early trading: XOM +2.2%, CVX +2.3%, RDS.A +3.6%, BP +3.4%, TOT +1.7%, STO +5.1%, PBR +8.1%, COP +7.2%, MRO +12.1%, APC +8%, DVN +12.7%, HES +9.5%, ENB +2.1%, PSX +0.8%, SLB +4.2%, HAL +8.3%, BHI +4.3%, KMI +4.8%, EPD +2.7%, ETP +3.8%, WMB +5.4%, RIG +11.3%, SE +2.2%, CHK +9.4%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, GASX, PXI, FIF, PXJ, RYE, NDP, GUSH, PSCE, DRIP, DDG, FXN, CRAK
Tue, Nov. 29, 10:20 AM
- Crude oil continues to slide - WTI now -3.8% at $45.27/bbl, and Brent -3.8% at $46.40/bbl - dragging oil and gas equities (XLE -2.1%) down with it.
- Iran's oil minister says he is not prepared to reduce supply, and Saudi Arabia says it would not participate in a production deal without Iran and Iraq.
- Reuters reports that Iran has written to OPEC saying Saudi Arabia needs to cut oil output to 9.5M bbl/day; Saudi has said it was prepared to reduce its production only by 500K bbl/day from current levels of 10.5M.
- In early trading: XOM -1%, CVX -1.7%, RDS.A -1.4%, BP -1%, TOT -0.3%, STO -1.8%, PBR -3.7%, COP -2.9%, MRO -4%, APC -2.8%, DVN -2.7%, HES -3.6%, ENB -2.3%, PSX -1.2%, MPC -0.8%, SLB -2.2%, HAL -2.3%, BHI -2.1%, KMI -1.4%, EPD -2%, ETP -2.2%, WMB -2.4%, SE -2.3%, CHK -2.6%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, GASX, FIF, PXJ, RYE, NDP, GUSH, DRIP, DDG, FXN, CRAK
Tue, Nov. 29, 8:55 AM
- Chevron (NYSE:CVX) is teaming up with Mexico's Pemex and Japan’s Inpex to bid for the right to explore for oil and natural gas in Mexico's first-ever deepwater auction, set for Dec. 5.
- The auction marks the first time Mexico's state-owned operator will partner with private companies to develop crude in the Gulf of Mexico, and is one of seven groups and eight individual bidders to qualify for participation.
- Total (NYSE:TOT) is joining forces with BP and Statoil (NYSE:STO) in one group, and with ExxonMobil (NYSE:XOM) in another, while Eni (NYSE:E) and Lukoil (OTCPK:LUKOY, OTC:LUKOF) also joined up, and Anadarko Petroleum (NYSE:APC) and Royal Dutch Shell (RDS.A, RDS.B) formed another group; other companies involved include BHP, CEO, MUR.
- The Mexican regulator has not specified which bids are for the Trion field joint venture with Pemex or for the other areas.
Fri, Nov. 25, 12:05 PM
- BP (BP -0.4%) acquires a 10% stake in Egypt’s Giant Zohr Gas Field for $375M, according to Bloomberg.
- The company has an option to add another 5% stake by the end of 2017.
- "This interest in a truly world-scale asset will complement our existing Egyptian business," noted BP CEO Bob Dudley in an e-mailed statement.
Mon, Nov. 21, 11:26 AM
- BP (BP +2.1%) has created a new executive committee to explore business in Iran which will exclude its American CEO Bob Dudley to avoid potential violations of U.S. sanctions still in place, Reuters reports.
- The new committee is headed by CFO and British national Brian Gilvary, who will coordinate BP's operations in Iran and any discussions with the country's national oil company, according to the report.
- BP has yet to sign any deals with Iran, and a lack of clarity over Iran's terms for new production contracts, difficulties facing the banking system due to continued U.S. sanctions, and companies' severe budget constraints due to lower oil prices have kept most oil majors on the sidelines.
Wed, Nov. 16, 11:45 AM
- BP (BP -1.2%) says it plans to cut as many as 80 salaried positions at the company's 413K bbl/day refinery in Whiting, Ind.
- Union-represented hourly and salaried employees at the refinery, which is BP's largest in the U.S., will not be affected by the layoffs.
- BP does not specify when the cuts, totaling 3%-4% of the plant's total workforce of 1,800 employees and contractors, will take effect.
Tue, Nov. 15, 3:48 PM
- CLSA upgrades Chevron (CVX +2.3%) and EOG Resources (EOG +2%) while downgrading BP (BP +1.8%) and ConocoPhillips (COP +2.4%) following Q3 group earnings results that were better than expected, mainly benefiting from self-help initiatives.
- The firm upgrades CVX to Buy from Outperform with a $127 price target, believing the company’s strategic shift towards its short-cycle upstream business is a game changer and that the Permian update in its Q3 conference call is "just the beginning."
- CLSA upgrades EOG to Outperform from Underperform with a $105 target, as the Yates transaction in September creates a platform with 6K premium locations, and sees significant further upside underpinned by EOG’s technical innovation and operational excellence.
- However, BP is downgraded to Outperform from Buy with a $37 target, as BP has done a remarkable job in positioning for long-term growth with cash breakeven at $50-55/bbl, but the firm awaits clarity on a Lower 48 strategy.
- Finally, COP is cut to Underperform from Outperform with a $47 target, as the lack of meaningful Delaware/Midland Basin shale exposure is a key negative vs. other large-cap E&P peers.
- Oil and gas stocks are broadly higher today in a very strong session for crude oil.
Tue, Nov. 15, 2:28 PM
- BP (BP +1.4%) signs a deal to use a new digital solution by General Electric (GE -0.5%) to improve the efficiency and safety of its offshore oil platforms by predicting equipment breakdowns before they occur; financial terms were not disclosed.
- BP says GE's Plant Operations Advisor software, which will gather data from various pieces of oilfield equipment and process it through GE's Predix software, should help it save more than $200M/year from its deployment at up to 33 platforms globally, and estimates the program will boost its efficiency by 2%-4%.
- GE hopes the BP partnership will set up future opportunities across the oil industry, especially ahead of the merger of its oil and gas division with Baker Hughes.
Tue, Nov. 15, 9:55 AM
- BP (BP +1.1%) CEO Bob Dudley thinks the oil market is “pretty pessimistic” about OPEC reaching a deal to cut production at the cartel's Nov. 30 meeting in Vienna.
- Oil prices likely will stay around current levels if OPEC fails to implement the deal it reached in Algiers in September to limit output, Dudley tells Bloomberg.
- Supply and demand are “generally in balance” in the market, Dudley says, due to demand growth in China, Europe and North America, although there is a “tremendous amount” of oil in storage that will take a long time to draw down.
Thu, Nov. 10, 10:58 AM
- BP (BP +0.5%) was the big winner in the latest call for exploration bids for deepwater tracts off Newfoundland and in the Jeanne d'Arc basin, Upstream reports.
- The biggest bid was a $C276M bid for one Parcel 3, which BP will operate and own 50% with Hess (NYSE:HES) and Noble Energy (NYSE:NBL) each taking on 25%, and the trio also teamed up for two other bids totaling C$137M; BP and NBL went 60-40 on another parcel.
- In the Jeanne d'Arc basin, Husky Energy (OTCPK:HUSKF) won both blocks offered with a 100% stake after bidding a combined C$244M.