Noble Energy, Inc.NYSE
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
Thu, Oct. 13, 4:47 PM
- RSP Permian (NYSE:RSPP) -5.8% AH after agreeing to acquire Silver Hill Energy Partners and Silver Hill E&P II for $1.25B in cash and 31M common shares of its common stock, implying a total purchase price of ~$2.4B.
- RSPP says the deal is a unique acquisition of a highly contiguous acreage position in the core of the Delaware Basin with 41K net surface acres, which creates substantial scale with combined current production of ~50K boe/day, 100K-plus net surface acres, 500K-plus net effective horizontal acres, and 3,600 net drilling locations with substantial additional upside.
- To help fund the deal, RSPP launches a 20M-share public offering, with an underwriters option to purchase up to an additional 3M common shares.
- Silver Hill reportedly had attracted interest from the likes of Diamondback Energy (NASDAQ:FANG), Noble Energy (NYSE:NBL), Marathon Oil (NYSE:MRO) and Occidental Petroleum (NYSE:OXY).
Fri, Sep. 30, 6:22 PM
- Diamondback Energy (NASDAQ:FANG) is close to a deal to buy privately held Silver Hill Energy Partners in a deal that could fetch ~$2.5B, WSJ reports.
- FANG would be the winner of an auction that reportedly attracted interest from Noble Energy (NYSE:NBL), Marathon Oil (NYSE:MRO) and Occidental Petroleum (NYSE:OXY), in the latest rush to grab drilling land in west Texas' Permian Basin.
- A deal could be announced as soon as next week, according to the WSJ report.
Thu, Sep. 29, 7:15 PM
- S&P Global Market Intelligence’s Stewart Glickman highlights four stocks - EOG Resources (NYSE:EOG), Marathon Oil (NYSE:MRO), Noble Energy (NYSE:NBL) and Cabot Oil & Gas (NYSE:COG) - that can thrive even at $45/bbl oil.
- The firm estimates nearly 6% production growth for EOG in 2017, a current net debt to capital ratio of ~33%, and projected cash from operations at 114% of anticipated 2017 capex - fundamental metrics that give EOG "a measure of safety even if the macro picture refuses to budge."
- Glickman sees MRO with 2% production growth in 2017, which might seem mediocre but not in the context of its net debt to capital ratio (18%) and its free cash flow percentage for 2017 (128%).
- The firm notes NBL's sizable domestic and international operations, with the company's strong acreage position in natural gas offshore Israel as a key catalyst.
- Glickman sees COG with production growth of 8% in 2017, led by its prolific Northeast acreage, and with a net debt to capital ratio of just 23% and a free cash flow percentage of 146%.
Thu, Sep. 15, 5:40 PM
- Noble Energy (NYSE:NBL), Marathon Oil (NYSE:MRO) and Occidental Petroleum (NYSE:OXY) are considering making offers for Permian Basin explorer Silver Hill Energy Partners, in a sale that could fetch more than $2B, Bloomberg reports.
- Silver Hill, which was started in 2011, controls drilling rights on more than 42K net acres in the Delaware Basin on the western shelf of the Permian.
Wed, Sep. 14, 6:33 PM
- Noble Midstream Partners (NYSE:NBLX), the pipeline partnership backed by Noble Energy (NYSE:NBL), raised $281M today in its IPO, the first for an oil and gas MLP this year.
- The IPO sold 12.5M units, as planned, at $22.50 each, after the company had looked to price units in the $19-$21 range.
- NBLX provides crude oil, natural gas and water-related midstream services on 300K acres in the Denver-Julesburg basin in Colorado and on 40K acres in the Delaware Basin within Texas’ Permian Basin.
- While the deal is not likely to open the floodgates for new MLP offerings, a successful stock market debut should signal to MLP management teams that they can raise equity if they need it, which is “in striking contrast to the beginning of the year,” says Chris Eades, portfolio manager for several MLP strategies at ClearBridge Investments.
- ETFs: AMLP, AMJ, KYN, TYG, KYE, SRV, CEM, MLPI, NML, FEN, NTG, KMF, MLPA, EMLP, FMO, AMZA, FEI, JMF, SRF, CBA, MLPN, GMZ, MLPX, GER, EMO, TTP, CTR, MLPS, CEN, SMM, DSE, FPL, AMU, MIE, JMLP, ENFR, ATMP, IMLP
Wed, Sep. 7, 7:58 AM
- Noble Energy (NYSE:NBL) unit Noble Midstream Partners LP says it expects to raise as much as $263M in its IPO after shelving its plan to go public in November due to the oil downturn (S-1 statement).
- The company plans to price the offering of 12.5M common units at $19-$21 each.
- The units have been approved for listing on the NYSE under the symbol NBLX.
Mon, Aug. 29, 2:29 PM
- Oil and natural gas explorers escape a vote in Colorado that could have severely limited drilling in the state, as two measures that would have allowed local communities to ban hydraulic fracturing fail to garner enough support for the November ballot.
- A proposal that would have restricted drilling near homes fell ~21K valid signatures short of the total needed to qualify for a ballot vote, and a measure allowing local governments to ban fracking also failed to attract enough signatures, according to the Colorado Secretary of State's office.
- Colorado's top producers include Anadarko Petroleum (APC +1.3%), Encana (ECA +0.4%), Noble Energy (NBL +1.4%), PDC Energy (PDCE +1.6%), Whiting Petroleum (WLL +1.9%), Bill Barrett (BBG +5.3%), Carrizo Oil and Gas (CRZO +2.2%) and Synergy Resources (SYRG +5.2%).
Thu, Aug. 25, 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.
Mon, Aug. 8, 9:53 PM
- Environmental groups in Colorado say they have collected enough signatures to add proposed anti-fracking initiatives to the November election ballot, pending final validation by the Secretary of State's office.
- One of the initiatives would strengthen the state's setback rules, requiring new oil and gas development facilities to be located at least 2,500 ft. from occupied structures or areas such as parks, while the second would transfer regulatory control of new oil and gas development to local governments.
- Anadarko Petroleum (NYSE:APC), Noble Energy (NYSE:NBL) and Whiting Petroleum (NYSE:WLL) hold the greatest net acreage in Colorado's DJ Basin; other companies with DJ exposure include Synergy Resources (NYSEMKT:SYRG), PDC Energy (NASDAQ:PDCE), Bonanza Creek Energy (NYSE:BCEI), Bill Barrett (NYSE:BBG), and Carrizo Oil and Gas (NASDAQ:CRZO).
Wed, Aug. 3, 4:49 PM
- Post-earnings comments today from Noble Energy (NYSE:NBL), Devon Energy (NYSE:DVN) and Occidental Petroleum (NYSE:OXY) show U.S. shale oil producers' continuing ability to squeeze more crude from improved well designs and fracking techniques.
- "It's a bit surprising to me how we continue to still see improvements," NBL CEO Dave Stover said of operations in Colorado, where Q2 productivity rose 4% Y/Y; NBL initially expected to get 390K boe/day this year on spending of $1.5B, but now it expects to spend less and produce 415K boe/day (Q2 earnings).
- OXY CEO Vicki Hollub said 2016 production would now be at the high end of its forecast for a 4%-6% increase from 2015 levels of 652K boe/day, without raising planned capex of $3B (Q2 earnings); the CEO also noted in OXY's earnings conference call that "most of our cost reductions are due to our own efficiency gains, not service company unit cost reductions."
- CEO Dave Hager says DVN has cut costs to drill and complete new wells by 40% and plans to cut $1B in costs this year (Q2 earnings).
Wed, Aug. 3, 7:06 AM
Tue, Aug. 2, 5:30 PM
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Tue, Jul. 26, 3:14 PM
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.