Yesterday, 10:51 AM
- Natural gas production from the Marcellus and Utica shales remains surprisingly strong and defying predictions that output would fall, averaging 22.63B cf/day so far in August, up 2% from last month and the most since February’s all-time high of 22.78B cf/day.
- Even though the number of drilling rigs has declined, new production per rig now averages ~11.4M cf of gas in the Marcellus, up 18% Y/Y, as producers have managed to maintain volumes by tapping inventories of drilled but uncompleted wells and burrowing deeper, longer wells that yield more gas.
- Production has been strong despite regional prices at ~$1.2757/MMBtu, less than half the price for benchmark gas in Louisiana.
- Top Marcellus/Utica producers include EQT, RRC, RICE, CVX, CNX, VTG, REXX, XOM, NBL, COG, CHK.
Wed, Aug. 24, 10:56 AM
- Some of the world’s largest energy companies are saddled with their highest debt levels ever as they struggle with low crude oil prices, raising worries about their ability to pay dividends and find new barrels, according to a WSJ analysis.
- Exxon Mobil (NYSE:XOM), Royal Dutch Shell (RDS.A, RDS.B), BP and Chevron (NYSE:CVX) hold a combined net debt of $184B, more than double their debt levels in 2014, when oil prices began the decline that eventually bottomed out at $27/bbl earlier this year.
- The rise in net debt has helped push the companies’ gearing, which measures the proportion of a company’s net debt to its equity and influences the ratings given by credit agencies: Shell’s gearing is at 28%, BP’s is more than 25%, CVX’s is 20% and XOM's is ~18%.
- “Eventually something will give,” says Michael Hulme, manager of the Carmignac Commodities Fund, which holds stakes in Shell and XOM. “These companies won’t be able to maintain the current dividends at $50 to $60 oil. It’s unsustainable."
Fri, Aug. 19, 8:21 AM
- Chevron (NYSE:CVX) is committed to its Thailand investments despite job cuts that have spurred rumors of the oil major's exit, and may keep a Myanmar gas field stake if no attractive offer is made it.
- These are a "core part of Chevron's portfolio and we have intention of it remaining a core part of our portfolio. We are not leaving Thailand," said Stephen Green, President of Chevron Asia Pacific Exploration and Production.
- CVX -1% premarket
Fri, Aug. 19, 3:32 AM
- Aiming to drill for crude in Mexico's deepwater oil areas, Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and Hess Corp. (NYSE:HES) have reached an agreement to bid on producing oil in 10 areas up for auction on Dec. 5, Bloomberg reports.
- Mexico hopes to raise $44B in its first-ever sale of deepwater drilling rights in the Gulf of Mexico, located in the Perdido area near the maritime border with the U.S.
Thu, Aug. 11, 8:10 AM
- Protesters block the entrance to a Chevron (NYSE:CVX) oil depot in Nigeria for a third day, while terrorists blew up another Niger Delta crude pipeline belonging to state oil firm NNPC.
- The protesters are demanding jobs and housing, and threaten to shut down CVX's crude flow in Abiteye, Jones Creek and other operations in the area if the company does not agree to their demands.
- The Niger Delta region has been hit by a wave of attacks on oil and gas pipelines, reducing Nigeria's crude output by 700K bbl/day.
Wed, Aug. 10, 8:57 AM
- Suncor Energy (NYSE:SU) agrees to acquire a 30% participating interest in the U.K. North Sea Rosebank project from OMV Ltd.
- SU will make an initial payment of US$50M on closing, and could pay as much as another $165M if the partners approve the Rosebank project final investment decision and SU elects to participate.
- Rosebank is considered one of the best and largest remaining undeveloped resources in the U.K. North Sea.
- Chevron (NYSE:CVX) is operator of the project and holds a 40% stake.
Tue, Aug. 9, 11:55 AM
- Chevron (CVX +0.5%) is upgraded to Overweight from Neutral with a $117 price target, raised from $110, at Piper Jaffray ahead of what the firm sees as a long-term oil price recovery.
- CVX is "an attractive name to own" at this point in the commodities cycle, the firm writes, as the stock "fulfills our criteria of offering impressive financial resilience and dividend sustainability alongside leading operational leverage to eventual oil price normalization and a seemingly more sustainable business model (among super majors)."
- Jaffray likes Suncor Energy (SU +1%) as its top overall pick, believing SU’s ability to generate free cash flow and the stock's relative YTD underperformance has it set up best headed into 2017.
Mon, Aug. 8, 2:12 PM
- Chevron (CVX +0.8%) says the Second U.S. Circuit Court of Appeals has affirmed a lower court decision which found that the $9.5B judgment against the company in Ecuador is unenforceable in the U.S. and the product of fraud and racketeering activity.
- The decision rejects efforts by lawyer Steven Donziger and representatives of residents of Ecuador's Lago Agrio region who sought to hold CVX responsible for water and soil contamination supposedly caused by Texaco, which CVX acquired in 2001.
Thu, Aug. 4, 10:43 AM
- Chevron (CVX -0.4%) is seeking to sell Asian assets worth up to $5B in an attempt to raise cash, Dow Jones reports.
- Among the assets CVX reportedly wants to sell is its stake in an offshore oilfield production venture with China's Cnooc, which could fetch as much as $1B; its geothermal assets in Indonesia, which could be worth more than $2B; and natural gas field assets in Thailand.
- The Asia deals are part of CVX's broader program of asset sales; the company said in January that it was looking to sell up to $10B in oilfield and other assets through 2017, of which it has completed $1.4B.
Tue, Aug. 2, 9:43 AM
- July monthly performance was: +1.9%
- 52-week performance vs. the S&P 500 is: +10%
- $0.23 in dividends were paid in July
- Top 10 Holdings as of 6/30/2016: AT&T Inc (T): 5.65149%, Exxon Mobil Corp (XOM): 5.47044%, Verizon Communications Inc (VZ): 4.40575%, Chevron Corp (CVX): 3.75675%, General Electric Co (GE): 3.47376%, Procter & Gamble Co (PG): 3.01991%, Wal-Mart Stores Inc (WMT): 2.97257%, Pfizer Inc (PFE): 2.9201%, Philip Morris International Inc (PM): 2.86459%, Coca-Cola Co (KO): 2.36751%
Sat, Jul. 30, 12:10 PM
- "There’s just no place for the supermajors to hide” in the wake of Exxon Mobil's (NYSE:XOM) lowest quarterly profit since 1999 (I, II) and Chevron’s (NYSE:CVX) third straight loss for its longest slump in 27 years (I, II).
- “Oil prices, natural gas, refining, it all looks very bad right now," says Edward Jones analyst Brian Youngberg.
- The results from both companies came after disappointing results from European peers Shell (RDS.A, RDS.B) and BP earlier this week.
- Q3, which likely will feature the same weak refinery margins, “could be even worse," says Michael Lynch of Strategic Energy & Economic Research.
- The pain will extend far longer than just the next quarter, says John LaForge, head of real asset strategy at Wells Fargo Investment Institute, who believes crude oil is in the early stages of a 20-year commodities bear market supercycle - "you might be looking at $30-$60 for the next decade, and it's going to keep bouncing back and forth."
- ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
Fri, Jul. 29, 10:38 AM
- Chevron (CVX -1.1%) trades lower after posting a Q2 loss - its third straight unadjusted quarterly loss - that reflects lower oil prices and "our ongoing adjustment to a lower oil-price world."
- Q2's reported $0.78/share loss may not be comparable to the analyst consensus $0.32 profit; the result includes $2.8B in impairments and other non-cash charges, partially offset by $420M in gains on asset sales.
- CVX says its Q2 upstream operations lost $2.46B from a $2.22B loss in Q2 2015, with the U.S. segment losing $1.11B vs. a $1.04B loss a year ago.
- Q2 downstream earnings fell 56% Y/Y to $1.28B from $2.95B in the year-ago quarter on weak refining margins; U.S. downstream earned $537M vs. $731M a year earlier.
- Q2 production fell 3% Y/Y to 2.53M boe/day from 2.6M boe/day in the year-ago quarter.
Fri, Jul. 29, 8:32 AM
Thu, Jul. 28, 5:30 PM
Wed, Jul. 27, 5:52 PM
Wed, Jul. 27, 2:39 PM
- Hess (HES -4.3%) says it is pursuing legal action against Schlumberger for as much as $40M, claiming SLB supplied a defective valve for a Gulf of Mexico oilfield that shuttered three wells and hurt production.
- Hess slammed SLB, as well as the company's quality of service and parts provided, during its earnings conference call.
- Two of four wells at the Tubular' Bells field had been closed during Q2 for regular maintenance that was supposed to last 31 days, but Hess says a faulty valve forced the closure of another well earlier this month; thus Hess lowered its full-year Tubular production guidance to ~10K boe/day from previous estimates for at least 25K boe/day.
- Hess owns a 57% stake in the Tubular project, with Chevron (CVX -0.2%) holding the rest.
Chevron Corp. is an integrated energy company, which provides administrative, financial, management and technology support to U.S. and international subsidiaries that engage in fully integrated petroleum operations, chemicals operations, mining operations, power generation and energy services.... More
Sector: Basic Materials
Industry: Major Integrated Oil & Gas
Country: United States