QEP Resources: Asset Rich With A Strong Balance Sheet
Fri, Aug. 12, 2:31 PM
- North Dakota's crude oil production fell 2% in June to 1.03M bbl/day, hitting its lowest level in more than two years.
- The state's Department of Minerals Resources says production may already have dropped below 1M bbl/day and could take at least a year to recover if the level is breached.
- But in a positive sign for the industry, the state says the breakeven price for oil production at its existing wells has slipped to $26/bbl, showing that existing production remains profitable for companies that have aggressively cut costs.
- Companies with a presence in North Dakota's Bakken Shale include CLR, WLL, EOG, ERF, HK, HES, MRO, OAS, QEP, SM, STO, TPLM.
Mon, Aug. 8, 11:57 AM
- SM Energy’s (SM +7.2%) $980M purchase of drilling rights in the Permian Basin shows that producers are willing to pay a premium for access to one of the few spots where oil exploration still turns a profit, Bloomberg reports.
- SM will pay the equivalent of $39.5K/acre for drilling rights across 24,783 acres in the Permian Basin, will ahead of the $25K-$35K that acreage in the Permian’s Midland Basin section had been fetching as recently as May and almost doubling SM's holdings in the region.
- Other Permian producers also are trading higher, including: PXD +2.2%, CXO +1.8%, XEC +2.1%, CWEI +6.1%, APA +3.8%, FANG +2.1%, PE +1.2%, QEP +3.6%, RSPP +2.4%, APC +2.6%, DVN +3.7%, MTDR +2.3%.
Wed, Jul. 27, 4:30 PM
Tue, Jul. 26, 5:35 PM
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Wed, Jun. 22, 9:24 AM
Tue, Jun. 21, 4:35 PM
- QEP Resources (NYSE:QEP) -2.9% AH after agreeing to acquire additional oil and gas properties in the Permian Basin from unnamed sellers for ~$600M.
- QEP says the properties' current net production is ~1,400 boe/day (83% oil) from 96 vertical wells, with net proved reserves of 76M boe.
- To help fund the deal, QEP announces a public offering of 20M common share, with an underwriters option to purchase up to an additional 3M shares.
Thu, Jun. 16, 12:19 PM
- North Dakota’s crude oil production fell by the largest amount ever for a single month, sinking 6.3% to 1.04M bbl/day in April from a revised 1.11M bbl/day in March.
- The North Dakota Department of Mineral Resources cites low crude oil prices but also windy weather throughout much of the month, which delays the fracking of wells, adding that it expects the slide to accelerate through May and into the summer.
- There are 28 drilling rigs currently active in the state, up from 27 in May which was the fewest since July 2005; at its peak, North Dakota had 218 rigs drilling in May 2012.
- Companies with a Bakken presence include: CLR, ERF, EOG, HK, HES, MRO, OAS, QEP, SM, STO, TPLM, WLL.
Wed, Jun. 15, 10:47 AM
- QEP Resources (QEP -0.1%) is upgraded to Overweight from Neutral with a $24 price target, raised from $20, at Piper Jaffray, which believes the company is undervalued and will deliver oil production growth of 8% above peers.
- Jaffray says the main catalysts driving QEP will include incremental well results in the Permian Basin, downspacing in Williston and cost reductions across the company's portfolio.
- The firm also notes increases in location count in South Antelope to 400 from 278 and increased Spraberry EUR's to 900M boe from 650M boe.
Wed, May 11, 6:48 PM
- The EPA tomorrow will issue the first U.S. standards aimed at curbing methane emissions from the oil and natural gas industry, WSJ reports.
- The rules, which will affect only new oil and natural gas wells, will require companies to install technologies to monitor and limit inadvertent emitting of methane during the production and transmission process of natural gas, and require new practices such as regular inspections for leaks.
- Meanwhile, a new study says the Bakken oil-producing region of North Dakota and Montana leaks 275K tons/year of methane, a sizeable amount but less than previously believed.
- Companies with a Bakken presence include: CLR, ERF, EOG, HK, HES, MRO, OAS, QEP, SM, STO, TPLM, WLL
Sun, May 1, 1:08 PM
- A new study finds that fracking of U.S. shale fields is causing a global surge in ethane emissions. Ethane is known to contribute to global warming and dangerous air pollution.
- Global ethane levels had been falling since the 1980s, but in 2010 a sensor in Europe picked up a surprise increase. U.S. shale fracking was thought to be the culprit. More recently, a single field in the North Dakota and Montana Bakken Formation has been found to be emitting 2% of the worldwide total.
- "Two percent might not sound like a lot, but the emissions we observed in this single region are 10 to 100 times larger than reported in inventories. They directly impact air quality across North America. And they're sufficient to explain much of the global shift in ethane concentrations," said Eric Kort, the first author of the new study published in Geophysical Research Letters.
- Ethane emissions from other U.S. fields, especially the Texas Eagle Ford, likely contributed as well, the research team says. The findings illustrate the key role of shale oil and gas production in rising ethane levels.
- Baaken stocks include: CLR, ERF, EOG, HK, HES, MRO, OAS, QEP, SM, STO, TPLM, WLL
- Eagle Ford stocks include: APC, APA, COG, CRZO, CHK, COP, ECA, XOM, MUR, PXD
- See the full study here »
Wed, Apr. 27, 4:31 PM
Tue, Apr. 26, 5:35 PM
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Thu, Mar. 24, 6:45 PM
- At least 15 companies in the hard-hit E&P energy industry have announced new share offerings this year, and nearly all have been rewarded by stock investors who normally would cringe as their holdings are diluted.
- Amid widespread worries about energy companies collapsing under debt loads, analysts and investors say shareholders more easily stomach the dilution if it means the companies are adding cash to strengthen their balance sheets.
- Some companies did not urgently need cash but stood to "immunize” their balance sheets in case the oil markets remain ugly into 2017, and others have asset sales pending but the newly raised money means they do not have to worry about timing of proceeds, says Wunderlich's Irene Haas.
- But "the low-hanging fruit [has] been picked," says Christian Ledoux, senior portfolio manager at South Texas Money Management, "not because [other companies] don’t want to, but because they won’t be able to attract investors" until oil prices are much higher.
- E&P companies that have outperformed the S&P 500 Energy Index by more than 10 percentage points since their respective offerings YTD: EGN, OAS, DVN, MRO, NFX, CPE, FANG, WFT, QEP, HES, SYRG.
- Outperforming the index by 1-10 percentage points: PXD, GPOR, PDCE, MTDR
- Underperforming the index: COG
Mon, Feb. 29, 9:17 AM
Mon, Feb. 29, 8:35 AM
- QEP Resources (NYSE:QEP) -6.1% premarket after announcing a public offering of 30M common shares, with an underwriters option to purchase up to an additional 4.5M shares.
- QEP says it plans to use the proceeds for general corporate purposes, including cutting debt, acquiring properties and funding part of its exploration and production activities and working capital.
Wed, Feb. 24, 5:22 PM
- QEP Resources (NYSE:QEP) says in its Q4 report that it is suspending its dividend in a bid to strengthen its liquidity, even while saying the impact on its cash position is relatively small.
- QEP says it will reduce its 2016 capex by more than 50% Y/Y to $450M-$500M from $1.01B in 2015, which anticipates ramping down from nine operated rigs at year-end 2015 to 3-4 operated rigs for the remainder of the year, with one each on its Williston, Permian and Pinedale acreage.
- QEP says it expects flat Y/Y crude oil production in 2016, citing efficiency gains, strong well performance and ongoing cost reduction initiatives.