Occidental Petroleum CorporationNYSE
Tue, Nov. 15, 10:49 AM
- West Texas' Permian Basin now holds nearly as many active oil rigs as the rest of the U.S. combined, including those offshore, the U.S. Energy Information Administration reports.
- The rig count has been rising since this summer, but the Permian began seeing rigs increase earlier than the U.S. as a whole, and is adding rigs more quickly; of the ~450 total U.S. rigs, the Permian now accounts for ~220.
- Permian production has reached 2M bbl/day of oil, while south Texas’ Eagle Ford and North Dakota’s Bakken have fallen to below 1M bbl/day.
- Top Permain producers include CVX, OXY, APA, PXD, CXO, DVN, EOG, MRO, FANG, XOM, ECA, RSPP, SM, EGN, PE, AREX, GPOR, XEC, LPI, CPE, ESTE, WPX, PDCE
Tue, Nov. 8, 8:57 AM
- Abu Dhabi National Oil Co. and partner Occidental Petroleum (NYSE:OXY) say they plan to expand their Al Hosn gas facility, adding 50% more processing capacity.
- The project is vital for keeping the United Arab Emirates supplied with fuel and reducing its growing gas imports.
- ADNOC holds a 60% share in the Al Hosn joint venture, and OXY owns 40%.
Tue, Nov. 1, 2:19 PM
- Occidental Petroleum (OXY -6.1%) sinks to lows of the day after reporting a larger than expected Q3 loss as production is curtailed due to the slump in oil prices.
- OXY says its Q3 production totaled 605K boe, 12% lower than 689K boe in the year-ago quarter, as it continued to reduce its exposure to non-core operations in the U.S. and the Middle East and North Africa region, and says Q3 oil and gas operating costs fell 82% Y/Y.
- OXY says it plans to spend $3.3B-$3.8B in 2017, up from the planned $3B for 2016 and making it one of the largest oil companies so far to promise a spending hike next year.
- In the Permian Basin, the company expects to drill an additional 115 wells next year, bringing up oil production by “double digits” after its output in the region declined this year.
Tue, Nov. 1, 7:06 AM
Mon, Oct. 31, 5:30 PM
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Mon, Oct. 31, 5:15 PM
- Occidental Petroleum (NYSE:OXY) agrees to acquire ~35K acres of Permian Basin holdings from unnamed private sellers, as well as several Permian Basin enhanced oil recovery and CO2 properties, plus related infrastructure, for a combined ~$2B.
- OXY already is the largest Texas producer of enhanced oil recovery projects, which use carbon dioxide and other means to boost oil recovery.
- The acreage are in Reeves and Pecos counties, areas where OXY currently operates or has working interests, and has an aggregate production of 7K boe/day from 68 wells.
- OXY believes the land, which has ~41M boe of proved reserves, has the potential for as many as 700 new wells.
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).
Thu, Oct. 6, 1:43 PM
Wed, Oct. 5, 3:29 PM
- The EPA says it has secured a $165M agreement with Occidental Chemical (OXY +0.3%) to conduct the work needed to begin cleanup of the lower eight miles of the Passaic River in New Jersey.
- Although OXY did not directly discharge pollution into the Passaic, the company is legally responsible for pollution discharged from the former Diamond Alkali pesticides manufacturing plant that operated in Newark, since the plant eventually was bought by a company that merged into OXY.
- OXY will perform engineering and design work needed to begin cleanup of the river, under EPA oversight.
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.
Wed, Sep. 28, 3:19 PM
- The energy sector (XLE +4%) bursts to the top of the leaderboard after OPEC announces a planned production cut to 32.5M bbl/day at the informal OPEC meeting in Algiers.
- Among individual energy stocks: XOM +3.8%, CVX +2.7%, RDS.A +2.8%, BP +3.4%, TOT +2.4%, PBR +4.5%, COP +6.4%, MRO +8%, MPC +1.4%, PSX +1.9%, VLO -0.1%, EOG +6.2%, PXD +6.4%, OXY +4.5%, DVN +7.9%, CLR +8.3%, APA +6.2%, NOV +8.1%, SLB +3.3%, BHI +3.6%, HAL +4.3%, KMI +3.4%, ENB +2.6%, EPD +1.9%, ETP +2.9%.
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.
Mon, Sep. 12, 3:58 PM
- ConocoPhillips (COP +1%) is upgraded to Overweight from Neutral with a $51 price target, raised from $44, at J.P. Morgan, which sees COP's 2016-20 dividend growth coming in at 2x U.S. peers with no risk of another dividend cut in a flat $40/bbl case.
- The firm says it is more comfortable that COP "can 'walk' (de-lever with maturity schedule) and 'chew gum' (buy back stock).
- Near term, JPM foresees catalysts around COP's November analyst day, such as a potential share buyback authorization and/or expanded asset sale program, which could address investors’ balance sheet fears.
- Meanwhile, the firm downgrades Occidental Petroleum (OXY -0.3%) to Underweight from Neutral with a $78 price target, noting that while OXY has executed well, it believes valuation is stretched with an estimated 2020 sustaining free cash flow yield of ~5.7% (group average ~7.2%), despite similar leverage.
Tue, Aug. 30, 6:19 PM
- Maxus Energy is defending a $130M settlement with its YPF corporate parent over responsibility for the cleanup of New Jersey’s contaminated Passaic River, saying it was the best option “when compared to the risks of losing everything at trial and garnering no value for the debtors’ creditors.”
- Maxus was one of several companies blamed for discharging hazardous substances into the river decades ago, and filed for bankruptcy in June after reaching a deal with YPF over the corporate parent’s alleged liability for the cleanup.
- Occidental Petroleum (NYSE:OXY) subsidiary OxyChem, which bought part of Maxus’ business in 1986, contends that YPF is legally responsible as an alter ego for the environmental liabilities owed by its Maxus subsidiary.
- YPF has denied liability, and says it should not be responsible for a cleanup bill Maxus agreed to with OxyChem nearly a decade before it purchased Maxus.
Fri, Aug. 5, 5:45 PM
- Occidental Petroleum (NYSE:OXY) still must wait until at least the middle of next week before resuming production at three Colombian fields amid delays in fixing a pipeline attacked by guerrillas, Bloomberg reports.
- Repairs to the Cano Limon line, halted since July 4, had been expected to finish this week; production at the three OXY-operated fields that produce a combined 56K bbl/day has been halted since July 15 after the company ran out of storage space.
- The Cano Limon pipeline, Colombia’s second-largest, is operated by state-controlled Ecopetrol (NYSE:EC), transporting oil from the eastern part of the country to the Caribbean coast for export.
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).