Stephen Simpson, CFA
Power Hedge • 35 Comments
Thu, Jan. 14, 4:55 AM
- Statoil (NYSE:STO) has increased its exposure to its home market by buying a big stake in Lundin Petroleum (OTCPK:LNDNY), boosting its presence in the Johan Sverdrup field, Norway's biggest offshore project in decades.
- The Norwegian state-controlled oil major bought 11.9% in the Swedish company for SEK4.6B ($539M) making the acquisition Statoil's first big deal since oil prices started collapsing 18 months ago.
Oct. 29, 2015, 8:57 AM
- Statoil (NYSE:STO) agrees to acquire a 35% stake in the Tugela South exploration license offshore South Africa from Exxon Mobil (NYSE:XOM), in the Norwegian company's first venture in the country.
- Tugela South spans nearly 3,500 sq. miles off South Africa's east coast, with water depths at up to 5,905 ft.; the license is in an early exploration phase, with seismic data gathering occurring through 2017, followed by geology and geophysics studies, before any drilling starts.
- Tugela South is operated by XOM, which acquired a 75% stake in the license in 2012 and will retain 40% following the deal with STO.
Oct. 6, 2015, 5:22 PM
- Russian billionaire Mikhail Fridman's LetterOne fund is in advanced talks to acquire German utility E.ON's (OTCQX:EONGY) Norwegian North Sea assets for more than $1B, Financial Times reports.
- The potential deal would signal a renewed push by the Russian oligarch to expand his P-E fund's oil and gas portfolio after being forced to sell his British North Sea assets because of U.S. and European sanctions.
- E.ON owns a 28% stake in the BP-operated Skarv field, which is expected to reach peak output of 165K boe/day, as well as 30% and 17.5% stakes in two Statoil-operated (NYSE:STO) fields.
- LetterOne, whose energy fund is run by former BP CEO John Browne, recently asked the U.K. to delay an October deadline to sell its North Sea assets after a first round of offers came in well short of expectations.
Sep. 28, 2015, 8:49 AM
- BG Group (OTCPK:BRGXF, OTCQX:BRGYY) agrees to acquire stakes in three exploration blocks off the coast of Newfoundland from Repsol (OTCPK:REPYF, OTCQX:REPYY); no financial terms are disclosed.
- BG says the deal provides access to early stage exploration in a proven prospective basin ahead of the first well being drilled later this year.
- The three blocks are operated by Statoil (NYSE:STO).
Mar. 16, 2015, 10:17 AM
- Street chatter says Statoil (STO -2.8%) may be pursuing EOG Resources (EOG +0.5%) in a merger or acquisition that could exceed $50B.
- Analysts say the deal would make sense for STO, which is seeking to expand its U.S. shale presence; STO also has been mentioned as one of several companies showing interest in Whiting Petroleum (WLL -8%).
- Color Raymond James analyst Andrew Coleman skeptical, saying that a 25% premium over EOG's recent $85 share price - suggesting an offer near $60B - would be needed just to get a returned phone call.
Mar. 13, 2015, 3:58 PM
- Whiting Petroleum (WLL +3.1%) spikes on a Bloomberg report suggesting Exxon Mobil (XOM -0.2%) could be interested in the company; trading is now halted for volatility.
- Continental Resources (CLR -4.8%), Hess (HES +0.4%) and Statoil (STO +1.4%) also are reportedly looking at WLL, according to the report, and WLL has set up a data room for potential buyers to evaluate the company’s financial information and asked them to submit bids next week.
- WLL is the largest producer in North Dakota’s Bakken Shale, and the four rumored suitors already are among the 10 largest holders of acreage in the play.
- WLL had been down all day on an earlier report that it was considering selling off pieces rather than the whole company.
Oct. 13, 2014, 3:50 AM
- Norway's Statoil (NYSE:STO) has sold its remaining 15.5% holding in the Shah Deniz gas project in Azerbaijan and other assets to Malaysia's Petronas (OTC:PNADF) for $2.25B.
- The transaction also includes stakes in a South Caucasus pipeline company and two other firms.
- The deal is the latest in a series of sales by Statoil and other major oil companies, and since 2010, the Norwegian firm has offloaded $20B worth of assets.
- "(The) Shah Deniz divestment is yet another sign of credible strategy, (and is) positive," says Swedbank analyst Teodor Sveen Nilsen.
- The Shah Deniz field is operated by BP (NYSE:BP), with other partners including Lukoil. (PR)
Sep. 12, 2014, 4:54 AM
- Statoil (NYSE:STO) is selling stakes in a number of oil and gas fields and a pipeline project to Germany's Wintershall (OTCQX:BASFY) for $1.25B in cash, plus another $50M if certain goals are met.
- "This transaction focuses our Norwegian continental shelf portfolio and further improves our capacity to invest in core areas," says Statoil President Arne Sigve Nylund.
- Statoil has divested more than $18B in assets since 2010, and plans to invest $20B annually between 2014 and 2016.
Jul. 14, 2014, 2:21 PM
- Whiting Petroleum's (WLL +7.4%) $6B buyout of Kodiak Oil & Gas (KOG +5.1%) is renewing investor attention on independent energy firms with operations in the Bakken Shale, especially those significantly owned by hedge funds; Paulson & Co. is the single biggest owner of KOG stock, with just under 10% of shares outstanding as of the last filing date.
- While many of the largest Bakken producers are huge companies or parts of huge companies - Hess (NYSE:HES), EOG, Statoil (NYSE:STO), Marathon Oil (NYSE:MRO), XTO Energy (NYSE:XOM) - a few small and mid-cap independent players show hedge fund interest, CNBC's Brian Sullivan writes.
- The single biggest holder of Oasis Petroleum (OAS +0.5%) also is John Paulson's hedge fund, which owns 9.9M shares (~9.8% of shares outstanding), Jana Partners owns 16M-plus shares in QEP Resources (QEP +1.4%), and WPX Energy (WPX +1.1%) has substantial hedge fund ownership.
May 5, 2014, 5:42 PM
- Talisman Energy (TLM) and Statoil (STO) are considering selling their joint venture in the Eagle Ford basin, which could fetch more than $4B, Bloomberg reports.
- TLM is said to have solicited offers last year for its 50% interest in the JV and couldn’t find a buyer in part because STO wasn’t ready to exit.
- The report speculates that a sale could draw interest from large exploration companies such as Encana (ECA), Murphy Oil (MUR) and Devon Energy (DVN) that want to acquire more oil-producing properties.
Aug. 19, 2013, 2:45 AM
- Statoil (STO) has agreed to sell stakes in key offshore Norwegian fields to Austrian company OMV (OMVJF.PK) for $2.65B.
- Under the deal, Statoil's holding in the Gullfaks field will drop to 51% from 70%, and in the Gudrun field to 51% from 75%. The Norwegian company is also exiting two other fields near Scotland.
- The transaction includes a contingent payment as well and a partnership between the two companies.
- Statoil expects to recognize a gain from of $1.3-1.5B from the deal, which will allow it to reallocate $7B of capital expenditure. (PR)
Mar. 25, 2013, 7:59 AM
Hess (HES) +1% premarket after Heard On The Street suggests it could be sold outright rather than broken up into pieces. No one has stepped up to buy Hess despite its valuation gap, Liam Denning writes, most likely because it wasn't perceived as being for sale. Norway's Statoil (STO) is an intriguing potential acquirer; for one thing, it has among the lowest proved-reserves life of the major oil companies.| Mar. 25, 2013, 7:59 AM | 2 Comments
Jan. 18, 2013, 9:48 AMSome analysts say the coming leadership change at EOG Resources (EOG +0.3%) makes a takeover more possible, with Chevron (CVX) and Statoil (STO) seen as potential suitors. EOG is “an attractive target from the perspective of a super-high-quality asset base in all the right plays in the U.S.,” an RBC analyst says. With CEO Mark Papa leaving in June, “it does increase the possibility” of a deal. | Jan. 18, 2013, 9:48 AM
Nov. 8, 2012, 11:03 AM
Nov. 8, 2012, 8:44 AM
Whiting Petroleum (WLL) +11.3% premarket on a report that Statoil (STO) approached the company with a takeover bid worth up to $7.6B. WLL and STO are among the top producers in the Bakken shale formation in North Dakota, and STO has said it wants to pick up further shale acreage in the U.S.| Nov. 8, 2012, 8:44 AM | 3 Comments
Apr. 18, 2012, 3:00 AM