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Today, 12:25 PM
- Transocean (RIG -8.1%) is tumbling after Murphy Oil (MUR -2.1%) terminated its contract for the Discoverer Deep Seas in exchange for a lump-sum payment, the latest of the company's rigs to have a contract cancelled after two other rigs were terminated by customers in December.
- The 15-year-old drillship was contracted from October 2013 through November 2016 at a $604K dayrate.
- Citigroup's Scott Gruber says the issue is that the idling of the Deep Seas is likely to reduce its ability to secure a new contract through the downturn, meaning there is an increased likelihood that the rig is cold stacked, which in turn increases the likelihood that it never returns to service.
- MUR also “exercised its option to revert the term” on a contract with Diamond Offshore (DO -1.2%).
Wed, Feb. 3, 5:17 AM
- Just ten days after Moody's put over half a trillion dollars in energy debt on review for downgrade, S&P decided it wanted to be the first one out of the gate.
- Companies that saw their ratings cut by one notch: Chevron (NYSE:CVX), Apache (NYSE:APA), Continental Resources (NYSE:CLR), Devon Energy (NYSE:DVN), EOG Resources (NYSE:EOG), Hess (NYSE:HES), Hunt Oil, Marathon Oil (NYSE:MRO), Murphy Oil (NYSE:MUR) and Southwestern Energy (NYSE:SWN).
- Oil futures settled below $30 a barrel again on Tuesday, but prices have taken a positive turn this morning after two days of steep declines.
- Previously: Moody's places 175 oil, gas and mining companies on review for downgrade (Jan. 22 2016)
Wed, Jan. 27, 5:54 PM
- Enbridge (NYSE:ENB) agrees to acquire Murphy Oil's (NYSE:MUR) Tupper Main and Tupper West gas plants and pipeline assets in British Columbia for C$538M.
- The deal includes the sale of existing infrastructure capable of processing up to 320M cf/day.
- MUR says it plans to invest some of the proceeds in a new joint venture with Athabasca Oil (OTCPK:ATHOF) to develop the Duvernay and Montney fields in the Kaybob area.
Wed, Jan. 27, 5:35 PM
Tue, Jan. 26, 5:35 PM| Tue, Jan. 26, 5:35 PM | 26 Comments
Wed, Jan. 20, 6:38 PM
- ConocoPhillips (NYSE:COP), ExxonMobil (NYSE:XOM), Marathon Oil (NYSE:MRO) and Occidental Petroleum (NYSE:OXY) are retained with Outperform ratings at Wells Fargo, which says the average upside potential for the four in its international E&P and integrated oil group is 38% at the top end of its valuation range and 25% at the lower end.
- From both a debt-adjusted cash flow and enterprise value/EBITDA standpoint, MRO and Market Perform-rated Chevron (NYSE:CVX) and Murphy Oil (NYSE:MUR) carry the most discounted valuations, the firm says.
- Among oil services stocks, the firm likes Halliburton (NYSE:HAL), RPC (NYSE:RES), Patterson-UTI Energy (NASDAQ:PTEN), U.S. Silica (NYSE:SLCA) and Nabors Industries (NYSE:NBR) to survive the downturn while maintaining the financial flexibility to thrive and take share in a North American recovery.
- Earlier: Wells Fargo's MLPs most likely to cut distributions: ETE, ETP, WMB, WPZ, AMID, APLP, CCLP, CEQP (Jan. 15)
Sat, Jan. 16, 9:15 AM
- Oppenheimer's Fadel Gheit and Luis Amadeo offer a bleak view of the Q4 2015 earnings season for oil and gas producers, warning of sharply lower earnings with deeper losses and wider cash flow deficits Y/Y and Q/Q.
- Among the integrated oil majors, the analysts see overall Q4 earnings falling by more than 50% Y/Y and more than 30% Q/Q; they expect Chevron (NYSE:CVX) to show the steepest earnings decline of 60%-plus Y/Y and 50%-plus Q/Q, while anticipating Exxon Mobil (NYSE:XOM) to report the lowest declines of 40%-plus Y/Y and 25%-plus Q/Q.
- Of the 15 large E&Ps Oppenheimer covers, 13 likely will report losses in Q4 vs. 10 in Q3 and none in Q4 2014, with only Devon Energy (NYSE:DVN) and Range Resources (NYSE:RRC) reporting a profit; the analysts expect most of the other 13 to report steeper declines, including Anadarko Petroleum (NYSE:APC), Apache (NYSE:APA), Chesapeake Energy (NYSE:CHK), EOG Resources (NYSE:EOG), Hess (NYSE:HES), Marathon Oil (NYSE:MRO), Murphy Oil (NYSE:MUR), Pioneer Natural Resources (NYSE:PXD) and Southwestern Energy (NYSE:SWN).
- Earlier this week, Gheit predicted that half of U.S. shale oil producers could go bankrupt before the crude market reaches equilibrium.
Dec. 16, 2015, 2:31 PM
- Moody's says it is reviewing 29 E&P companies from the U.S. and seven from Canada for a potential downgrade, saying the companies "will be stressed for a longer period with much lower cash flows, difficulty selling assets and limited capital markets access."
- Based on the severity and potential duration of the industry challenges, Moody's expects many companies will be downgraded one notch and others could be lowered by more than one notch.
- Yesterday, the ratings agency cut its oil and gas price assumptions in light of continuing oversupply in the global oil markets and the U.S. natural gas market.
- Among the U.S. companies: APC, AR, APA, XEC, CXO, COP, CLR, DNR, EGN, EOG, EPE, EQT, HES, MRO, MUR, NFG, NFX, NBL, OXY, PXD, QEP, RRC, SM, SWN, UNT, WLL, WPX
- From Canada: BTE, CNQ, OTCQX:COSWF, CVE, ECA, OTCPK:HUSKF, SU
Dec. 9, 2015, 5:13 PM
- Murphy Oil (NYSE:MUR) is expected to cut 2016 capital spending by more than half to below $1B from $2.3B in 2015, Raymond James says, calling it "one of the steepest 2016 spending cuts we’ve seen across oil and gas producers."
- As a result, MUR anticipates a 7% drop in its production guidance when comparing its 2016 average from its Q4 2015 run-rate, RJ says.
- Production in the Eagle Ford, where MUR operates four fields, "will take the brunt,” according to the firm, with plans to average 1.75 rigs, from three in Q4; MUR’s oil and natural gas production from the play in 2014 totaled a respective 51.3K bbl/day and 33M cf/day.
Dec. 3, 2015, 8:37 AM
- Marathon Oil (NYSE:MRO) says it has plugged and abandoned its Solomon exploration well in the deepwater Gulf of Mexico after failing to encounter its lower tertiary target interval.
- MRO says it plans no further exploration at the closely watched prospect.
- MRO is the operator of the well, with a 58% working interest; Murphy Oil (NYSE:MUR) holds a 20% interest.
- The move comes after MRO agreed to sell all its operated producing properties in the Gulf and a tranche of non-operated interests for $205M last month.
Nov. 9, 2015, 3:34 PM
- Apache (APA +14.3%) shares reach their highs of the day after a report that the company had rejected a takeover offer after a suitor was lured by APA's $1.6B in cash and low leverage to help strengthen its balance sheet and fund a dividend.
- One analyst thinks Hess (HES -0.8%) and Murphy Oil (MUR +0.5%) - with strong balance sheets and which have materially underperformed in 2015 as investors have focused on E&Ps with longer life onshore portfolios - also could be buyout targets.
- But shares of APA’s peers have enjoyed little benefit from the report, which Heard On The Street's Spencer Jakab says suggests that the bargains on offer among North American oil and gas producers are not compelling enough to kick off a round of consolidation and that the list of buyers is short.
- Analysts at Simmons thinks Exxon Mobil (XOM -2.1%) and BP (BP -0.5%) are the most likely prospective buyers for APA.
Oct. 28, 2015, 6:39 PM
- Murphy Oil (NYSE:MUR): Q3 EPS of -$0.72 beats by $0.21.
- Revenue of $714.95M (-50.0% Y/Y) beats by $83.25M.
Oct. 27, 2015, 5:35 PM
- ABX, ACGL, AEM, AF, AFFX, AFOP, AMGN, ANIK, AR, ARII, ARRS, ASGN, ATML, BANC, BLKB, BWLD, CACI, CAVM, CBL, CGI, CHDN, CLI, CMO, CMPR, CNL, CNO, CNW, CRUS, CSGP, CW, CWT, DRE, DYAX, ECHO, ELLI, EPR, EQIX, EQY, ESIO, ESRT, ESV, EXR, FFIV, FMC, FORM, FORR, FR, GPRO, HBI, HLS, HOS, HT, HUBG, HY, INT, INVN, ISIL, KEX, KRA, KS, LNC, LOCK, LOPE, MAA, MANT, MAR, MC, MEOH, MMLP, MTGE, MTW, MUR, NE, NEM, NGD, NSIT, NTRI, NVDQ, NXPI, O, OCN, OGS, OII, ORLY, OTEX, PLXS, PPC, PRXL, PSA, PTC, QDEL, QEP, QGEN, QUIK, REG, ROG, ROVI, RRC, SCI, SGI, SGMO, SIMO, SPN, SPRT, SPWR, SSS, STAA, SU, TAL, THG, THRX, TILE, TLLP, TSO, TTMI, UNM, VAR, VECO, VRTX, WDC, WES, WGP, WLL, WMB, WSTL, WTS, YELP
Oct. 12, 2015, 3:45 PM
- Barclays maintains a Neutral rating on the group of 10 Americas-based oil majors, expecting the group to miss consensus expectations in the light of lower crude oil and gas prices, while it reduces the ratings and price targets of several of the companies.
- Although the refining companies have benefited from a modest widening of the key North American crude differentials and stronger product cracks, the firm says higher operating costs and lower than expected margin capture rate at several refiners due to unplanned outages have partially offset these benefits.
- Barclays downgrades Petrobras (PBR -3.7%) to Equal Weight from Overweight, as the company’s unsustainable levels of debt, cash flow outlook and concerns surrounding the corruption investigation cannot be ignored even as shares appear attractively valued; Imperial Oil (IMO -2.1%) also is cut to Equal Weight from Overweight.
- The firm maintains Suncor Energy (SU -0.5%) and Husky Energy (OTCPK:HUSKF -1.9%) at Overweight, saying the two stocks offer the best value over the next 12 months on a risk-adjusted basis, while maintaining Chevron (CVX -0.9%), Hess (HES -2.8%) and Murphy Oil (MUR -3.2%) with Equal weight ratings; it cuts price targets slightly for all five companies.
- Earlier: Exxon upgraded to Equal Weight at Barclays
Oct. 8, 2015, 1:57 PM
- Oppenheimer energy analysts expect just one of the 15 pure-play E&P companies it covers to report positive EPS in Q3, just two to post positive EPS in Q4, and only two to finish in the green for 2016.
- Devon Energy (DVN +1.5%) is the only large E&P Oppenheimer expects to post a profit in Q3 and one of only two, along with Range Resources (RRC +1.5%), seen recording a profit in Q4.
- The firm sees Anadarko Petroleum (APC +2.4%), Hess (HES +4.1%) and Murphy Oil (MUR +3.5%) as the hardest hit stocks in Q3, forecasting respective EPS losses of $0.76, $0.91 and $1.13.
- Oppenheimer projects only ConocoPhillips (COP +1.2%) and Occidental Petroleum (OXY +1.9%) coming through with a profit for full-year 2016.
Aug. 12, 2015, 10:15 AM
- Syncrude is facing an environmental protection order following the deaths of 30 great blue herons at an abandoned sump pond at its Mildred Lake mine site near Fort McMurray, Alberta.
- Although bird deterrents were working elsewhere on the mine site, Syncrude says no such equipment was in operation at the sump.
- Syncrude was fined $3M in 2008 when more than 1,600 ducks died after they landed on a company tailings pond.
- Canadian Oil Sands (OTCQX:COSWF) owns 37% of Syncrude, with stakes also held by lead operator Imperial Oil (NYSEMKT:IMO), Suncor (NYSE:SU), Murphy Oil (NYSE:MUR), Sinopec (NYSE:SNP) and Cnooc (NYSE:CEO).
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