Nov. 7, 2014, 7:19 AM
Nov. 5, 2014, 12:45 PM
- Anadarko Petroleum (APC +2.7%) VP of international exploration Frank Patterson worries the shale boom may be less sustainable than it seems, noting that unlike conventional drilling which taps a reservoir where oil or gas has collected, fracking taps the source rock where petroleum originates - what’s left after that?
- Also, young geologists are learning the manufacturing-like process of drilling lots of shale wells at the expense of learning how to explore for new oil, which Patterson calls “potentially a big problem in the future” for E&P companies.
- Meanwhile, Denton becomes the first city in Texas to ban fracking, as voters approved an initiative against the controversial drilling method (NYSEARCA:FRAK).
Oct. 29, 2014, 3:32 PM
- Anadarko Petroleum (APC +0.5%) has been higher for most of the session despite Q3 earnings that missed analyst estimates, as record sales volumes of 849K boe/day improved its liquids product mix to 51% from 43%.
- Credit Suisse says APC’s results are "much better than meets the eye," noting that operating results were strong; in fact, APC raised its full-year production guidance by 1.5% to 305M boe at the mid-point on the strength of U.S. oil production, which the firm says is the key driver of the stock.
- APC’s adjusted cash flow reflects the anticipated deferral of the $550M Tronox tax benefit to Q1 2015; the firm says adjusted Q3 2014 cash flow/share of $4.58 would have comfortably topped its estimate and the Street.
Oct. 28, 2014, 5:46 PM
- Anadarko Petroleum (NYSE:APC) +0.4% AH after Q3 earnings fell short of analyst expectations but revenue rose 30% to $5.01B, as stronger sales volume offset the impact of weaker average selling prices.
- Q3 total sales volume of crude oil, natural gas and natural gas liquids gained 9.5% Y/Y to 849K bbl/day from 775K a year ago.
- APC had sold its China subsidiary along with other assets during Q3, increasing its cash on hand to $8.3B.
- APC raises its full-year sales volume expectations for the third time this year, to a new range of 304M-306M boe, primarily driven by strong results from its Wattenberg horizontal program, where oil volumes doubled from Q3 of last year.
- Separately, P-E firm KKR says it will help APC develop its Eaglebine acreage in south Texas with a non-operated stake in the project; financial terms were not disclosed, but KKR says it expects to participate in 500 wells.
Oct. 28, 2014, 4:14 PM| Comment!
Oct. 27, 2014, 5:35 PM
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Oct. 21, 2014, 3:58 PM
- Global Hunter revisits its commodity price outlook, now moving to $83 long-term oil vs. $85 previously, applying a higher discount rate to future cash flows and modeling more conservative assumptions with regards to future rig activity, which results in downward revisions for several exploration and production stocks price targets and some rating changes (Briefing.com).
- Anadarko Petroleum (NYSE:APC), Gulfport Energy (NASDAQ:GPOR) and Rex Energy (NASDAQ:REXX) are upgraded to Buy; Talisman Energy (NYSE:TLM) is raised to Speculative Buy from Neutral.
- Devon Energy (NYSE:DVN), Hess (NYSE:HES), Occidental Petroleum (NYSE:OXY) and Kosmos Energy (NYSE:KOS) are upgraded to Accumulate from Neutral.
- Cobalt Energy (NYSE:CIE) is downgraded to Speculative Buy from Buy.
Oct. 16, 2014, 2:32 PM
- Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY) and partners including Anadarko Petroleum (NYSE:APC) and Kosmos Energy (NYSE:KOS) are planning to invest $2.2B next year to drill wells in Ghana’s Jubilee and Tweneboa-Enyenra-Ntomme, or TEN, oil fields, the deputy general manager of Tullow Oil Ghana says.
- The partners plan to invest $20B over the next decade to boost the country's crude oil output to 500K bbl/day from 103K now.
- Tullow, the operator of the projects, plans to drill two wells in the TEN field and as many as three wells at Jubilee.
Oct. 9, 2014, 3:25 PM
- Crushed by relentless anxiety about oversupply and weakening global demand, Nymex crude oil futures closed down $1.54 at $85.76/bbl, their lowest close since Dec. 2012, while Brent crude fell below $90/bbl for the first time in more than two years.
- Including today's losses, WTI crude is down 6.2% since the start of the month and Brent has surrendered ~5%.
- In the face of surging output, a move in WTI below its 10-year average at $82 is not out of the realm of possibility, Brown Brothers Harriman says, adding that "a break of $73/barrel could send WTI toward $64, which corresponds with the 2010 low."
- Among big oil names so far today: APC -6.3%, LINE -4.6%, EPD -3.8%, DVN -3.8%, MRO -3.6%, HES -3.8%, KMI -3.7%, TOT -3.5%, STO -3.3%, RDS.A -3.1%, OXY -3%, KMP -3%, XOM -2.6%, COP -2.6%, MUR -2.6%, CVX -2.5%, BP -2.4%.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, ERY, XOP, DIG, BNO, DTO, DBO, DUG, IYE, XES, IEO, CRUD, IEZ, PXE, USL, UWTI, PXJ, FENY, DNO, DWTI, RYE, FXN, SZO, OLO, DDG, OLEM, TWTI
Oct. 9, 2014, 9:56 AM
- Global oil producers open broadly lower as oil prices continue to slide on concerns about high supplies and weak global economic growth (also): RDS.A -2.7%, STO -2.7%, TOT -2.5%, HES -2%, APC -1.7%, BP -1.6%, CVX -1.5%, COP -1%, XOM -0.8%.
- Brent prices slump to $91/bbl, approaching two-year intraday lows, and Nymex crude tumbles to $86.67/bbl to an 18-month intraday low.
- The EIA said yesterday that U.S. crude supplies rose by a more than expected 5% last week, while gasoline and distillate inventories unexpectedly grew as well.
- Barclays is cutting its oil price forecasts: It now sees U.S. crude averaging $85/bbl in Q4 and $89 in 2015, down from previous estimates of $98 in Q4 and $100 next year, and Brent crude averaging $93/bbl in Q4 and $96 in 2015, down from a respective $106 and $107 previously.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, ERY, XOP, DIG, BNO, DTO, DBO, DUG, IYE, IEO, CRUD, PXE, USL, UWTI, PXJ, FENY, DNO, DWTI, RYE, FXN, SZO, OLO, DDG, OLEM, TWTI
Sep. 30, 2014, 10:58 AM
- Exxon Mobil (NYSE:XOM) had secured the best strategic position of any western oil company in Russia, but instead its Russian ambitions are on ice because of western sanctions, and questions about its sluggish growth and weak share price performance vs. some leading rivals are returning to the fore.
- "Russia was going to be Exxon’s next mega-area, and the list of mega-areas in the world is very short," says Wolfe Research's Paul Sankey.
- FT reports many Russian oil executives believe western sanctions will prove relatively short-lived, but some analysts think the Russians may overestimate U.S. willingness to sacrifice foreign policy goals to help American businesses.
- If the road in Russia remains blocked, analysts say XOM could use its financial strength to invest more in the U.S. oil and gas boom; rumors have swirled about an XOM bid for Anadarko Petroleum (NYSE:APC), BG Group (OTCPK:BRGXF, OTCQX:BRGYY) or even BP, an option that could be particularly attractive if weak oil prices put pressure on company valuations.
Sep. 12, 2014, 8:19 AM
- Mitsubishi agrees to buy a 20% stake in an oil exploration project led by Anadarko Petroleum (NYSE:APC) offshore of Ivory Coast, pending approval by the African country's government.
- If enough oil is found and the project moves to the development phase, the total investment would be ~Y800B ($7.5B), of which Mitsubishi would pay 20%.
- APC, the operator and owner of 55% of the block, aims to start production in 2019, and output is expected to reach ~60K bbl/day at its peak.
Sep. 8, 2014, 6:43 PM
- The energy sector has seen little M&A activity despite a growth shortfall and cheap borrowing rates, but UBS analysts think a focus on incremental returns may lead to less exploration and more deals as resource prices on the market have fallen.
- The firm figures four large-cap E&P companies - Anadarko Petroleum (NYSE:APC), EOG Resources (NYSE:EOG), Marathon Oil (NYSE:MRO) and Pioneer Natural Resources (NYSE:PXD) - could prove tantalizing acquisition targets, but the buyer likely would need very deep pockets.
- In the case of EOG, UBS says the company's strong position in the three biggest tight oil plays - the Eagle Ford, Bakken and Permian - make it a perfect fit for an integrated major looking to expand in those areas.
Sep. 8, 2014, 12:32 PM
- The day's five biggest decliners in the S&P 500 are all energy companies - Newfield Exploration (NFX -5.6%), EOG Resources (EOG -3.6%), Anadarko Petroleum (APC -2.9%), Cimarex Energy (XEC -3.3%) and Pioneer Natural Resources (PXD -3.4%) - as crude oil prices slide to new lows, including Brent crude's first move below $100/bbl in more than a year.
- Brent crude dropped $1.12, or 1.1%, to $99.70/bbl after falling to as low as $99.36, a 16-month low, while U.S. crude slipped more than a percent to below $92 after settling at $93.29 on Friday for its sixth weekly drop in seven.
- Traders are concerned crude demand won't keep up, with data from the U.S. and China, the world's top oil consumers, suggesting their economies aren't growing as quickly as had been hoped.
- ETFs: USO, OIL, UCO, SCO, XOP, BNO, DTO, DBO, IEO, CRUD, PXE, USL, DBE, UWTI, DWTI, DNO, RJN, SZO, OLO, JJE, ONG, RGRE, OLEM, UBN
Sep. 2, 2014, 2:15 PM
- Russia's Lukoil (OTCPK:LUKOY, OTC:LUKOF) has made a discovery at Ghana’s offshore Cape Three Points project, Bloomberg reports.
- Ghana and its partners, including Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY) and Anadarko Petroleum (NYSE:APC), plan to spend $20B in the next decade to boost oil production to 500K bbl/day from current output of ~100K bbl/day.
- If commercially viable, the Lukoil find would be Ghana’s fifth planned offshore field.
Aug. 28, 2014, 10:58 AM
- The Marcellus region is now the world's biggest natural gas shale play, and there’s still $90B to be made by tapping the area’s reserves, according to a study by Wood Mackenzie.
- The energy consultant predicts that the top 20 operators in the Marcellus will earn nearly $86B over the life of the play after the costs of reaching the reserves; for comparison, it estimates ~$118B to be made by extracting the resources in North Dakota’s Bakken region, but most production there is higher-priced oil.
- Major Marcellus shale producers include CHK, RRC, RDS.A, RDS.B, TLM, APC, ATLS, COG, CVX, CNX, EQT, EOG, XOM, WPX, XCO, CRZO, SWN, AR.
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