Jul. 18, 2014, 5:38 PM
- Colorado Gov. Hickenlooper and business leaders say they will do “whatever it takes” to defeat initiatives proposed for fall elections that would restrict oil and gas drilling generating $30B/year for the state economy.
- Hickenlooper is trying to head off a ballot measure that would prohibit drilling within 2,000 feet of structures, a step energy companies say would effectively ban fracking in the state; another proposal would provide communities with more control over where drilling takes place.
- Anadarko Petroleum (NYSE:APC), Whiting Petroleum (NYSE:WLL) and Encana (NYSE:ECA), which are drilling in the Denver-Julesburg Basin, one of the nation’s richest oil and gas fields, said this week they will spend $50M to fight the measures.
Jul. 15, 2014, 11:46 AM
- Anadarko Petroleum (APC +2.6%) shares are strong after its financial update says its 8M acres of mineral rights in the Rocky Mountains are accelerating beyond last year’s $675M revenue boost.
- The disclosure has encouraged investors who want APC to sell some interest in the land or find a way to more fully recognize its value, Oppenheimer's Fadel Gheit says; the rights, which date back to land grants given 150 years ago, are in one of the fastest-growing areas for oil drilling in the U.S.
- APC is weighing a deal that would amount to “renting” some of the acreage and the revenue it generates to investors, Citi analyst Robert Morris says, adding that a similar deal within the next year could be worth as much as $750M.
Jul. 15, 2014, 8:42 AM
- Anadarko Petroleum (NYSE:APC) +1.5% premarket after providing a financial update, including the establishment of a new unsecured five-year credit facility, the issuance of senior notes, and the sale of Western Gas Equity Partners (NYSE:WGP) common units.
- Oil and natural gas revenues from both operated and non-operated production totaled ~$675M in 2013, and is trending higher in 2014 based on Q1 results, CFO Bob Gwin says.
- APC says it pared its stake in WGP and made $335M in cash on the offering.
Jul. 3, 2014, 11:35 AM
- Sasol (SSL) says it is teaming with Eni (E) and Mozambique's state-run energy company to study the viability of building a gas-to-liquids plant in the African country.
- The plant would service the gas fields off Mozambique's northern coast in the deepwater Rovuma Basin being developed by Eni and Anadarko Petroleum (APC) which could contain 35T-65T cu. ft. of recoverable natural gas.
- If SSL goes ahead with the plant, it will be the first gas-to-liquids facility in the country; gas production would not begin until at least 2018, and SSL does not say how much such a plant would cost.
Jul. 2, 2014, 11:46 AM
- Schlumberger (SLB +0.1%) makes its debut on the UBS Equity Focus List, as UBS and other Wall Street analysts think the oilfield services company will continue to drive margins on execution, technologies and efficiencies.
- UBS raises its rating on the sector to Neutral from Underweight, citing the growing drive for North American energy independence by the end of the decade.
- UBS also likes other top E&P and oilfield services leaders: Halliburton (HAL +0.3%) should enjoy a boost from a forecast 5% increase in margins over the next three years combined with a tightening frac calendar in some regions, Apache (APA -0.5%) trades at a discount vs. peers, and Anadarko (APC -0.9%) is favored amid rising demand for natural gas.
Jul. 1, 2014, 4:57 PM
- Anadarko Petroleum (APC) plans to sell $1.25B of debt, to include $625M each of 10- and 30-year notes, Bloomberg reports.
- APC last issued bonds in Aug. 2010, when it sold $2B of 6.4% notes due 2017 that yielded ~415 bps more than government bonds; the 10-year notes that may be issued as soon as today may yield 90 bps more than similar-maturity Treasurys, while the 30-year debentures may yield 115 bps more than benchmarks.
- Proceeds from the offering may be used for general corporate purposes, including debt repayment, working capital, capex and acquisitions.
Jun. 30, 2014, 6:07 PM| Comment!
Jun. 30, 2014, 12:42 PM
- New York’s cities and towns can block fracking within their borders, the state’s highest court rules, upholding the dismissal of lawsuits challenging bans in two small upstate towns.
- The ruling could lead the oil and gas industry to abandon fracking in New York, or it could mean that a patchwork of rules eventually may govern whether exploration can take place across the state; the case also may invigorate local challenges to the practice in states across the U.S.
- Parts of New York sit above the Marcellus Shale, some of whose top producers are: CHK, RRC, RDS.A, RDS.B, TLM, APC, ATLS, COG, CVX, CNX, EQT, EOG, XOM, WPX, XCO, CRZO, SWN.
Jun. 12, 2014, 9:11 AM
- An Anadarko Petroleum (APC) takeover by Exxon Mobil (XOM), as rumored yesterday, is unlikely, J.P. Morgan says.
- APC listed its net asset value in March at above $140/share, and the firm thinks management could require a premium to net asset value in a corporate takeover.
- JPM believes a more likely scenario is APC undertaking accretive transactions, including the monetization of assets.
- APC -0.8% premarket.
Jun. 11, 2014, 12:18 PM
- Anadarko Petroleum (APC +3.1%) moves to 52-week highs before pulling back a bit amid speculation it may be the subject of takeover interest from Exxon Mobil (XOM +0.6%).
- APC has “an asset base that would be coveted by any large player looking to make that kind of a splash," says a Raymond James analyst. "The question would be, is now the time for that?"
- APC says it doesn't comment on rumors.
Jun. 10, 2014, 5:58 PM
- A Ghana court has ordered state-run Ghana Gas to stop construction at a $650M gas plant designed to process gas from the offshore Jubilee field until the government pays land compensation to local chiefs.
- The government hopes the project's completion will boost power supply and help reduce spending on light crude imports for thermal power generation.
- Tullow Oil (TUWLF, TUWOY) is the lead operator of the Jubilee field; partners include Anadarko Petroleum (APC) and Kosmos Energy (KOS).
Jun. 10, 2014, 8:14 AM
- Eni (E) agrees to buy a 40% interest in an exploration permit held by Sasol (SSL) granting rights to explore an offshore area of 82K sq. km off South Africa's east coast for hydrocarbons
- The agreement is for exploration permit 236, south of Mozambique, the country where Eni and Anadarko Petroleum (APC) discovered more than 100T cf of gas.
- No financial terms are provided.
Jun. 4, 2014, 7:27 PM
- BP and Anadarko Petroleum (APC) could be facing billions of dollars in fines after the U.S. Court of Appeals in New Orleans said today the companies are automatically liable under the U.S. Clean Water Act as co-owners of the Macondo well that blew out and started the 2010 Gulf of Mexico oil spill.
- The court upheld a lower-court decision that allows the U.S. to seek up to $18B in fines from BP if it is found grossly negligent for its actions surrounding the spill; APC faces a maximum of $4.6B.
- The Clean Water Act allows the government to seek fines of as much as $1,100/bbl spilled on a finding of strict liability and up to $4,300/bbl for gross negligence; the ruling leaves both companies immediately vulnerable to the $1,100/bbl fines.
May. 28, 2014, 2:15 PM
- Anadarko Petroleum’s (APC +1.2%) $5.15B settlement to pay for pollution cleanup across the U.S. is approved by a bankruptcy judge over objections from people who say their illnesses won’t be properly compensated.
- The judge is sending his recommendation to a district court, where the settlement also needs to be reviewed; he says the money should be enough for claimants in Columbus, Miss., who had objected to the deal.
May. 22, 2014, 8:59 AM
- Total (TOT) and Repsol (REPYY, REPYF) are the latest western oil companies to pull out some expatriate employees from Libya amid escalating violence there, posing the latest challenge to the Libyan oil industry's fragile recovery.
- Strikes and armed occupation of oil terminals already have reduced the Libya's oil output to less than 20% of its normal level of ~1.5M bbl/day.
- Among other oil majors with a Libyan presence are Statoil (STO), ConocoPhillips (COP), Marathon Oil (MRO), Hess (HES), Eni (E) and Occidental Petroleum (APC).
May. 20, 2014, 3:32 PM
- Anadarko Petroleum (APC -1.1%) is looking too pricey after a 25% YTD gain for Barclays analyst Thomas Driscoll, who downgrades shares to Equal Weight from Overweight.
- It is easy to understand the enthusiasm for APC considering the strong record of deepwater exploration success, the willingness to monetize assets and the large discovery in Mozambique, Driscoll says; yet Continental Resources (CLR), EOG Resources (EOG) and Noble Energy (NBL) all are likely to grow twice as fast as APC while lacking any appreciable premium in their shares.
- The analyst prefers Devon Energy (DVN +1.2%), which he says has made decisive steps to upgrade its portfolio in recent months, significantly improving its near-term investment opportunity set.
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