The Noble/Rosetta Merger: Signs Of A Coming Flood, Or Just A Trickle?
Raw Energy • 10 Comments
Raw Energy • 10 Comments
Noble-Rosetta Deal: A Harbinger Of The Upstream Consolidation Wave?
Richard Zeits • 15 Comments
Richard Zeits • 15 Comments
Noble Energy Targeting Multiple Growth Plays
Stephen Simpson, CFA
Stephen Simpson, CFA
Thu, Jul. 14, 5:57 PM
- Energy companies including Anadarko Petroleum (NYSE:APC), Noble Energy (NYSE:NBL), Whiting Petroleum (NYSE:WLL), DCP Midstream (NYSE:DPM) and Synergy Resources (NYSEMKT:SYRG) have donated millions of dollars to derail a push by Colorado environmentalists to place measures on November's election ballot that would stifle oil and gas drilling in the state, Reuters reports.
- Environmental groups are gathering signatures for two statewide initiatives that would transfer regulatory control of oil and gas development to local governments and create tougher setback requirements to keep oil and gas activities away from occupied structures.
- Opponents of the proposed ballot initiatives say they would seriously damage oil and gas exploration in Colorado, the seventh largest oil and gas producing state in the U.S.; a state agency tasked with encouraging energy development says 90% of surface acreage in Colorado would be unavailable for oil and gas development under the new setback laws.
Thu, Jul. 14, 10:48 AM
- Marathon Oil (MRO +0.4%) says it has achieved first gas production through its new Alba B3 offshore compression platform off Equatorial Guinea.
- MRO expects to convert ~130M boe of proved undeveloped reserves, more than double its remaining proved developed reserve base attributed to the country.
- MRO is operator of the Alba field and holds a 65% working interest, while partner Noble Energy (NBL +0.6%) owns the remaining 35%.
Tue, Jul. 5, 8:59 AM
- Noble Energy (NYSE:NBL) agrees to sell a 3% working interest in the Tamar field offshore Israel to the Harel Group pension fund and Israel Infrastructure Fund in a deal valued at $369M.
- NBL says it plans to sell another 7%-8% working interest over the next 36 months to comply with Israel’s approved natural gas regulatory framework, leaving it with a 25% stake and operatorship.
- NBL also says it plans to drill and complete an additional development well at Tamar during Q4.
Sat, Jun. 25, 8:25 AM
- The U.S. currently pumps ~8.7M bbl/day of crude oil, 480K less than at the end of 2015, but more than 500K bbl/day of new crude from the Gulf of Mexico is set to come online this year and next, WSJ reports, threatening to prolong the oil glut and hold down prices.
- One reason is a handful of massive oil fields sanctioned for development years ago by companies such as BP and Freeport McMoRan (NYSE:FCX) that will start pumping later this year, but another is that companies have found that smaller satellite fields can be tapped inexpensively by tieback wells linked to existing offshore oil platforms via underwater pipelines.
- Exxon (NYSE:XOM) this year began pumping from the tieback Julia offshore well, with production piped back to a Chevron (NYSE:CVX) platform; CVX also recently executed a tieback that will produce 50% more oil and gas than it originally expected.
- Noble Energy (NYSE:NBL) nearly doubled its Gulf output in Q1 and has another well starting to pump later this summer; Anadarko (NYSE:APC) has more than 30 tieback well prospects in satellite fields, and will drill up to seven this year.
- Companies also are getting better at accessing deepwater finds; Shell (RDS.A, RDS.B) saved $1B drilling its Stones project, which will start up later this year, by using a slim-well design offshore engineers borrowed from onshore shale operations.
Wed, Jun. 22, 10:52 AM
- Noble Energy (NBL -0.6%) and its partners in Israel's Leviathan natural gas field have started moving forward with development plans delayed for years by political, legal and regulatory fights, and reaffirm that production is on track to begin in 2019.
- The partners authorized NBL, a 40% stakeholder in Leviathan, to sign a contract for engineering work worth ~$120M, according to a new Tel Aviv Stock Exchange, and Delek Drilling (OTC:DKDRF) said designing the platform is the first stage of the gas field’s development.
- The final hurdle in developing the field was cleared last month when the government approved the companies’ two-stage plan to drill eight wells producing 21B cm/year of gas; the partners are in talks with banks to finance the infrastructure project, the largest in Israel’s history.
Thu, Jun. 16, 9:14 AM
- Noble Energy (NYSE:NBL) and PDC Energy (NASDAQ:PDCE) announce an asset swap deal that sees both companies exchange acreage in Colorado's Wattenberg field in the DJ Basin.
- NBL says it will receive ~11.7K net acres in its Wells Ranch development area in exchange for ~13.5K net acres primarily out of the Bronco area.
- PDCE says the trade "creates significant operational efficiencies and incremental value for both PDC and Noble by consolidating our operated acreage positions."
Fri, Jun. 10, 7:05 PM
- Western Colorado has 40x more natural gas than previously thought, potentially making it the second-largest formation in the U.S., according to a new estimate from the U.S. Geological Survey.
- The Mancos Shale formation in Colorado’s Piceance Basin holds ~66.3T cf of gas, up from just 1.6T estimated in 2003, the USGS says, and the revision puts the basin second only to the Marcellus Shale in terms of the largest total gas reserves in the U.S.
- Current prices of ~$2/MMBtu are considered too low for companies to begin drilling to any large extent; companies likely would begin drilling if prices reached $3.50/MMBtu, says David Ludlam of the West Slope Colorado Oil and Gas Association.
- Among Colorado's top current oil and gas producers: APC, NBL, ECA, XOM, CVX, OXY, WLL, BBG, SYRG, PDCE, BCEI, CRZO
Tue, Jun. 7, 3:44 PM
- Seaport Global Securities upgrades a half-dozen energy E&P stocks - and downgrades two others - even after the group has rallied YTD, saying it is "willing to overlook higher leverage as long as the operational trajectory is notably improving."
- Noble Energy (NBL +4.2%) and Eclipse Resources (ECR +5.5%) are upgraded to Buy from Neutral, as NBL boasts "strong growth and cheap valuation relative to peers" and ERC is "among the cheapest NE gas names while offering good compression in out-year multiples."
- Seaport hikes Synergy Resources (SYRG +2.4%) to Buy from Accumulate thanks to "top-tier growth potential at >$50 oil."
- Upgraded to Accumulate from Neutral are Carrizo Oil & Gas (CRZO +4.3%), as “strong Eagle Ford returns justify return to growth,” and Concho Resources (CXO +4.6%), with “high-quality exposure to the Delaware Basin poised to garner further credit."
- The firm raises WPX Energy (WPX +0.2%) to Neutral from Sell, citing “leverage burden eased with equity, higher commodity price deck assumptions, recent operational progress."
- However, Oasis Petroleum (OAS +0.7%) is downgraded to Neutral from Buy as “NAV valuation gap has closed after a 54% move since our March 30 report," and Petroquest Energy (PQ +1.3%) is cut to Accumulate from Buy as “risk/reward upside has tempered" following a 67% move since March 30.
Thu, Jun. 2, 12:30 PM
- Israel's government approves the development of the Leviathan natural gas field, one of the largest offshore discoveries of the past decade.
- Noble Energy (NBL -0.4%), which holds a 40% stake in Leviathan, says the field would initially start production at 1.2B cf/day and expand to 2.1B cf/day; the field has an estimated 622B cm of reserves and is expected to become operational in 2019.
- The project had been opposed by opposition parties and public advocacy groups on grounds that NBL and its partner Delek Group (OTCPK:DGRLY) - which also own the adjacent Tamar field - would control too much of Israel's natural gas supply.
- Earlier this week, Leviathan signed a deal to supply up to 473B cf to a new private power plant for 18 years; NBL estimates gross revenue from the deal at $2.5B.
Mon, May 30, 4:34 AM
- The partners in Israel's Leviathan natural gas field - Noble Energy (NYSE:NBL) and Israel's Delek Group (OTCPK:DGRLY) - have signed an agreement to supply as much as $3B worth of gas to a new private power plant in central Israel.
- "This deal is an important milestone, in that it establishes another domestic contract that... is essential for the quick development of Leviathan," said Niv Sarne, Noble's manager of business development.
Wed, May 25, 10:33 AM
- Noble Energy (NBL +2.9%) is upgraded to Buy from Neutral with a $47 price target at Sterne Agee CRT, which says noise around Israeli political disputes and Colorado's drilling opposition is overblown.
- The firm says it has long considered NBL "a great company," and now views the shares as "a compelling investment, given overblown geopolitical headwinds, operational momentum and attractive valuation amid year-to-date underperformance."
- Now read Israel approves Leviathan natural gas deal
Sun, May 22, 10:16 AM
- Israel has approved a deal it hopes will fast-track development of the huge Leviathan offshore natural gas field and end years of regulatory uncertainty that has stifled the country's nascent oil and gas industry.
- The agreement is said to give the state more leeway while offering enough stability for Leviathan partners - Noble Energy (NYSE:NBL) and Israel's Delek Group (OTCPK:DGRLY) - and will hopefully bring the field online by the end of 2019.
- Previously: Israel reaches deal with Noble Energy, Delek on Leviathan gas plan (May. 18 2016)
Wed, May 18, 4:48 PM
- Israel has reached a new agreement with Noble Energy (NYSE:NBL) and Delek Group (OTCPK:DGRLY) that will allow the companies to move ahead with development of the Leviathan natural gas field.
- Finance Minister Steinitz says the new deal, which will be consider for final approval in the coming days, gives the government more leeway to change policies if needed.
- The project hit a major obstacle in March when Israel's Supreme Court blocked a previous agreement that bound the state to the terms of the deal for 10 years.
- NBL, which had warned that the court ruling could delay development of Leviathan beyond its hoped-for year-end 2019 completion date, calls the new agreement an "important milestone in creating a stable investment environment."
- Now read Bloomberg: Israel, Egypt near accord on natural gas dispute
Wed, May 18, 11:48 AM
- Israel and Egypt are nearing a compromise that would sweep away a major obstacle to a multibillion-dollar natural gas deal, as Israel may agree to settle for half of the $1.73B fine Egypt was ordered to pay it, Bloomberg reports.
- Israel considers gas exports to Egypt and other countries in the region a strategic imperative to cement ties with its closest ally in the Muslim world; energy-strapped Egypt needs fuel until it develops its own newly discovered fields, and it can use an idle gas pipeline to transfer Israeli fuel for export to third countries.
- U.S.-based Noble Energy (NYSE:NBL) and Israel’s Delek Group (OTCPK:DGRLY) need export contracts with Egypt to obtain financing for the development of the Leviathan gas field.
Wed, May 4, 8:28 AM
- Noble Energy (NYSE:NBL) reports a narrower than expected Q1 loss and raises its 2016 sales volume guidance by 4%.
- NBL says its Q1 sales volume rose 31% Y/Y to 416K boe/day, and its first two Delaware Basin wells in Texas' Reeves County had started producing; excluding assets from last July's merger with Rosetta Resources, volumes rose 12%.
- NBL says it now expects full-year sales volumes of 405K boe/day vs. its earlier forecast of 390K; U.S. volumes are increased as a result of improved productivity primarily in the DJ Basin, even with slightly fewer completions expected to commence production, while international volumes are driven by reduced Alba field downtime in west Africa and higher natural gas demand in Israel.
- NBL expects Q2 capex of $350M-$400M, with full-year capex coming in less than the original $1.5B estimate.
- Q1 total lease operating costs averaged $4.25/boe, down 22% Y/Y, and NBL says "Significant capital efficiency gains and outstanding operating performance, combined with robust liquidity, position us well in any price scenario."
Wed, May 4, 7:07 AM
Noble Energy, Inc. is an independent energy company engaged in oil and natural gas exploration and production. The company has core operations onshore in the U.S., primarily in the DJ Basin and Marcellus Shale, in the deepwater Gulf of Mexico, offshore Eastern Mediterranean, and offshore West... More
Sector: Basic Materials
Industry: Independent Oil & Gas
Country: United States
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