Sun, Aug. 2, 5:30 PM
Wed, Jul. 22, 2:37 PM
- A reduction in non-OPEC production eventually will provide an opportunity for U.S. producers to get back in the game, Credit Suisse analyst Mark Lear says as he upgrades the oil and gas E&P sector to Overweight and changes ratings for several individual stocks.
- Lear sees a handful of names with limited downside at WTI prices of ~$60/bbl and “decent” upside with prices in the $70’s, and expects a better year for natural gas in 2016 as dropoffs in production and higher demand could lead to higher winter prices.
- "We may be early,” but Credit Suisse assumes coverage at Outperform on some E&P stocks: EOG, EPE, PXD, DNR, APC, DVN.
- Upgraded to Outperform from Neutral: HES, CXO, CRZO, NBL
- Upgraded to Neutral from Underperform: MUR.
- Assumed coverage at Neutral: APA, DNR
- Assumed at Underperform: SD, SWN
- Downgraded to Underperform from Neutral: REXX, CRK
Tue, Jul. 21, 11:50 AM
Fri, Jul. 17, 12:58 PM
- Rosetta Resources (ROSE +1.2%) pumped 63K boe/day during Q2, 2% more than the same period last year and exceeding the high end of company estimates, the company said in its Q2 earnings report ahead of the expected close next Monday of its takeover by Noble Energy (NBL +1.2%).
- ROSE’s assets in the Eagle Ford Shale in South Texas and the Permian Basin in West Texas have been “under-appreciated,” and the Q2 results shed light on why NBL was eager to snap them up, Tudor Pickering analysts say.
- ROSE’s volumes are projected to add 66K boe/day to NBL’s portfolio, or ~18% of the company’s total output, and the Q2 results are "a positive read-through for Noble," Raymond James says.
- Even as ROSE pumped more oil, the company posted a $342M Q2 loss as it fetched a smaller price for its crude.
Thu, Jul. 16, 2:57 PM
- Global oil majors have $150B of firepower than can be used for M&A and have the ability to defer another $325B in capex on marginal projects; with so much cash available for potential deals and up to 15M bbl/day of production potentially available for purchase, Goldman Sachs analyst Ruth Brooker sees a pickup in M&A activity in the oil and gas space coming soon.
- The firm thinks shale production has the potential to double by 2025, and Brooker argues majors likely will take the current opportunity to increase their exposure to U.S. shale at historically low prices.
- Goldman sees seven companies as most likely to draw buyout attention from the majors: EOG, PXD, CLR, COG, NBL, APC, RRC.
Mon, Jul. 13, 5:38 PM
- Weakness in oil stocks should not be used as a buying opportunity, Barclays analysts say, viewing shares as significantly overvalued and appearing to discount an average oil price of $85-$90/bbl based on group average historical multiples.
- The firm removes Newfield Exploration (NYSE:NFX) and Cabot Oil & Gas (NYSE:COG) from its list of top oil and gas stocks, leaving only Canadian Natural Resource (NYSE:CNQ), EOG Resources (NYSE:EOG), Southwestern Energy (NYSE:SWN), Noble Energy (NYSE:NBL) and Concho Resources (NYSE:CXO).
- Barclays' bottom group consists of five Underweight rated stocks - CHK, OTCQX:COSWF, PXD, OXY and UPL - while WPX Energy (NYSE:WPX) is bumped off the bottom list to reflect an improved outlook as well as a 20%-plus share price decline.
Mon, Jul. 13, 10:25 AM
- Sterne Agee CRT’s Tim Rezvan reiterates his bullish views on Chesapeake Energy (CHK -3.1%), citing the latest short interest data which shows a 14.1% increase from mid-June to the end of June to 185M shares, 27.8% of shares outstanding and 8.1 days to cover; the increase in short interest increase from the end of February to the end of June was 163%.
- The firm upgraded CHK to Buy from Underperform on June 29, reflecting what it considered as oversold conditions, and Rezvan says the month-end short interest data validates the thesis and expect profit-taking from shorts to provide further support to CHK shares into Q2 earnings.
- The largest increase in short interest came from PetroQuest Energy (PQ +0.1%), which had a 16.1% increase to 7.2M shares (11% of shares outstanding, 5.0 days to cover); Noble Energy (NBL -1.1%) also showed a notable jump, with a 10.3% increase to 17.9M shares (4.6% of shares outstanding, 4.1 days to cover).
- CHK is sharply lower today, apparently in reaction to late Friday's court order for CHK to pay nearly $380M to bondholders.
Tue, Jul. 7, 11:49 AM
- Jefferies upgrades its ratings on Anadarko Petroleum (APC +0.3%), EOG Resources (EOG -0.1%) and Noble Energy (NBL -1.5%), citing “more realistic embedded oil price and growth.”
- APC is lifted to Buy from Hold with an $88 price target, raised from $85, as the firm notes increased confidence in “a deep, future Delaware Basin (Wolfcamp) development, the potential for opportunistic monetizations (i.e., Mozambique, WGP shares) and a now more attractive valuation.”
- EOG and NBL are raised to Hold from Underperform following recent pressure on the shares, which now better reflect “a slower ramp.”
Tue, Jun. 30, 8:25 AM
- Israel's energy ministry unveils proposed guidelines for the country's natural gas sector that would leave the largest offshore project, Leviathan, in control of a U.S.-Israeli consortium while opening the industry to new competition.
- The new plan requires Noble Energy (NYSE:NBL) and Israel’s Delek Group (OTCPK:DGRLY) to sell stakes in smaller fields while maintaining their grip on the larger Leviathan field, and requires companies to cap prices for a number of years until competition is developed.
- Delek will have six years to sell its entire stake in a second large field, Tamar, and NBL must decrease its stake in the field to 25% from 36%.
- Thousands demonstrated in Tel Aviv over the weekend against the expected plan, fearing the proposal fails to break up a monopoly and will result in high prices for Israeli consumers.
Thu, Jun. 25, 6:55 PM
- As expected, Israel's security cabinet has voted in favor of a plan to let Noble Energy (NYSE:NBL) and Israeli's Delek Group (OTCPK:DGRLY) keep control of most of the country's natural gas deposits, a decision that ends months of uncertainty after the anti-trust regulator branded them a monopoly late last year.
- Details of the agreement have yet to be made public, but industry sources have said NBL and Delek will be allowed to keep control of Leviathan, the world's largest offshore gas discovery of the past decade.
- Earlier: Noble Energy, Delek likely to keep control of Israel's Leviathan field
Thu, Jun. 25, 7:58 AM
- Israel's security cabinet is expected to vote in favor of a plan that will allow Noble Energy (NYSE:NBL) and Delek Group (OTCPK:DGRLY) to keep control over most of the country's natural gas deposits while putting some others up for sale.
- Sources tell Reuters that Noble and Delek would be allowed to keep control of Leviathan, the world's largest offshore gas discovery of the past decade; the field holds ~22T cf, is primarily earmarked for exports and is expected take three years to bring online.
- Delek would have six years to sell its entire ~45% stake in another large field, Tamar, and Noble would have to lower its stake to 25% from 36%, and both companies would be forced to sell their stakes in two smaller fields, Tanin and Karish, in up to 18 months.
Wed, Jun. 17, 10:35 AM
- Israel's Minister for National Infrastructures, Energy and Water resources say the government wants to reach an agreement with exploration companies on a natural gas policy framework as soon as possible.
- The development of Israel's Leviathan offshore natural gas field, held by Noble Energy (NBL +0.2%) and units of Delek Group (OTCPK:DGRLY), has stalled amid arguments over policy.
- Delek shares rose to their highest levels since December in Tel Aviv trading on the news.
Mon, Jun. 8, 9:49 AM
- The Aphrodite natural gas field off Cyprus is commercially viable, and plans call for producing 8B cm/year and construction of a pipeline to Egypt, says Noble Energy (NBL -0.3%) and Delek Group (OTCPK:DGRLY), the partners behind the project.
- Delek says the planned Egyptian exports were made possible by a cooperation agreement the countries signed in February, adding that the partners would submit their plans to the Cypriot government in the near future.
- NBL is the project operator with a 70% stake, while Delek holds 30% through two subsidiaries but is in talks to buy an additional 19.9% for ~$155M.
Mon, Jun. 1, 10:58 AM
- Delek Group (OTCPK:DGRLY) says it is in talks to buy an additional 19.9% stake of the Aphrodite offshore Cyprus gas field from its partner, Noble Energy (NYSE:NBL), for ~$155M.
- NBL owns a 70% stake in the field, located in Block 12 off the Cypriot coast and estimated to contain 4.54T cf of natural gas; Delek, through two subsidiaries, holds the remaining 30%.
- Cyprus is weighing options to export gas to Egypt and Jordan via pipeline from the Aphrodite field.
Tue, May 26, 7:59 AM
- Israel’s antitrust commissioner says he will resign from his position to protest a compromise framework on natural gas policy that he says will not lead to competition; the resignation would take effect at the end of August.
- David Gilo caused an uproar in December when he ruled that Noble Energy (NYSE:NBL) and Delek (OTCPK:DGRLY) may constitute a monopoly over their control of two large natural gas fields Tamar and Leviathan, and the resignation could ease pressure on the companies.
- Tamar began producing gas two years ago, but development of Leviathan, the world's largest offshore gas discovery of the past decade, has been frozen.
Mon, May 11, 11:27 AM
- Some analysts say Noble Energy’s (NBL -7.5%) acquisition of Rosetta Resources (ROSE +25.5%) is the deal that will finally open the floodgates of M&A activity in the oil patch.
- The premium for ROSE is below average for the sector over the past five years, suggesting there are more mergers to come, says Oppenheimer's Fadel Gheit, and the sale shows that M&A was “arguably” a cheaper option for growth than organic investment, according to Morgan Stanley's Martijn Rats.
- SunTrust's Neal Dingmann sees Matador Resources (MTDR -0.9%), Callon Petroleum (CPE -0.5%) and Carrizon Oil & Gas (CRZO -1.8%) as the most likely targets for acquisitive eyes.
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