Anadarko Petroleum Corp is engaged in the exploration and production of oil and natural gas. The Company's three operating segments are: Oil and gas exploration and production, Midstream and Marketing.
As Gulf coast states prepare for the advance of tropical storm Karen, BP says it is shutting in all of its oil and natural gas production in the deepwater Gulf of Mexico, and Anadarko (APC) says it has removed all workers and shut in all production at its eastern Gulf facilities.
Last year, BP produced 214K bbl/day from the Gulf, making it the largest producer in the region.
Shell (RDS.A, RDS.B), Exxon (XOM), Chevron (CVX), Marathon Oil (MRO) and Murphy Oil (MUR) are all removing non-essential workers from their offshore facilities.
Seven major refineries with a combined capacity of 1.8M bbl/day - ~10% of the U.S. total - are in Karen's path; Phillips 66 (PSX) and Valero (VLO) say they're continuing to monitor the storm's progress.
Crude oil price gains remain subdued, as WTI +0.2% to $103.50/bbl and Brent +0.1% to $109.07.
Eni (E) and Anadarko (APC) are strongly considering building a floating liquefied natural gas platform to export a portion of the gas they have discovered offshore Mozambique, NYT reported yesterday.
The companies likely will publish documents in the next few days soliciting interest from international contractors in the project, according to the report.
Eni and Anadarko already are in the early stages of designing an onshore liquefied natural gas facility in the country which probably would be one of the largest in the world; the potential floating operation would be a small fraction of the size, but it reflects a major new push to find cheaper and more efficient ways to produce the natural gas locked under the sea in remote areas.
Total development costs for the drilling and onshore export facilities are estimated at ~$50B.
Oil prices are up only modestly, as WTI +0.7% to $104.01/bbl and Brent +0.6% to $109.63; prices have been pulled down by the U.S. government shutdown, declining geopolitical risks and positive inventory data released earlier this week, but the storm is helping oil prices find support.
APC operates more than 5,800 wells, 2,500 storage tank facilities and 3,200 miles of pipeline in the Wattenberg area, and ~675 operated vertical wells were shut in preparation for and during the flooding.
Oil exploration and production analysts at Wunderlich make it clear they like the Permian Basin in west Texas for the variety of stacked pays offered, and they think producers are just beginning to understand the full potential of the resource plays in the region.
The firm estimates potential for more than 100 years of production, and that the region could have well over 1B barrels of oil.
The big E&P companies, with the financial power to cover the costs, have a decided edge in the Permian Basin, the firm says: APC, APA, CVX, COP, XOM, EOG, OXY.
Moody’s raises its outlook on Anadarko Petroleum’s (APC) debt to positive, citing the company’s strong operating performance and possible clarity on certain legal liabilities.
APC’s Baa3 rating, Moody's lowest investment-grade level, is supported by a diversified U.S. property base and exposure to numerous overseas markets; APC also benefits from having nearly half its production from oil and natural gas liquids, offsetting weak natural gas prices.
Chevron (CVX) and Range Resources (RRC) stand out among energy plays Credit Suisse thinks will thrive amid fast-rising U.S. production and declining demand.
The firm favors upstream companies with repeatable drilling inventory at the low end of the cost curve (e.g. Wattenberg, Eagle Ford, Northern Midland, Utica, super-rich Marcellus, core Bakken): Taking value into account, it likes Pioneer Natural Resources (PXD), Noble Energy (NBL), Anadarko Petroleum (APC), Marathon Oil (MRO), Gulfport Energy (GPOR), Diamondback Energy (FANG) and PDC Energy (PDCE).
It could take weeks for Colorado oil producers including Anadarko (APC +0.6%) and Noble Energy (NBL +0.1%) to tally the damage from a flood that has shut down an estimated 12% of the state’s daily oil production.
State workers are being hampered by "wet and slow-going conditions” as they evaluate wells and tank batteries.
Flooding may mean Q3 sales volumes at APC fall within or at the low end of the company’s expected range, and Q4 volumes also may be affected, an Alembic Global analyst says; APC still has 600-plus wells shut in the Wattenberg field.
NBL says it had put ~325 wells back online, with 433 remaining shut.
Three new spills were reported yesterday, including 5,100 gallons of oil from an NBL facility and 2,500 gallons from a PDC Energy (PDCE) location.
Almost 1,900 wells in northeast Colorado have been shut in after last weekend's flooding, as operators worked to determine the impacts on oil and gas installations in the Denver-Julesberg basin, the state's richest field.
Analysts are beginning to consider the impact on Q3 production at Anadarko (APC), Noble Energy (NBL), Bill Barrett (BBG) and others, though the extent is still unknown.
APC says it had shut in 670 operated wells out of ~5,800, 250 of 2,535 tank batteries and 20 of 3,200 miles of pipeline; APC's Wattenberg holdings produced 106K boe/day in Q2, less than 15% of overall production.
NBL also has shut in wells; its acreage in the area produced ~100K boe/day as of late July, about 35% of overall production, Simmons says.
BBG has reported minimal impact on its Colorado acreage, with four wells shut in.
Natural gas drilling sites aren't leaking as much methane as the federal government had estimated, according to a peer-reviewed study by researchers at the University of Texas that was the first attempt to measure actual emissions from gas drilling operations at 190 sites.
Measurements of gas emissions found that wells emitted ~20% less greenhouse gases than the EPA estimate.
The study also found that pneumatic switches used in wells leaked much more methane than previously believed, highlighting an area of needed improvement.
Companies cooperating in the project included Anadarko (APC), Chevron (CVX), Shell (RDS.A, RDS.B), Pioneer Natural Resources (PXD), Southwestern Energy (SWN) and Exxon’s (XOM) XTO Energy.
The PR push makes sense for APC and NBL, whose North American oil and gas portfolios are full of Colorado assets; the companies plan to sink $10B into continuing to develop the Wattenberg field, part of the Denver-Julesburg basin in the eastern part of the state.
While Colorado’s fracking regulation has been a model for other regions, the state is becoming a battleground on the issue.
Noble Energy (NBL), Anadarko Petroleum (APC), Continental Resources (CLR) and EOG Resources (EOG) are the top energy picks at UBS, which says each company delivers above-average cash flow per share growth, deep inventories and attractive pricing.
BG Group is “on the verge of delivering strong, accretive volume growth from Australia and Brazil," UBS says, and Total (TOT) has the most potential for earnings and share upgrades based on its high dividend yield and conservative expectations for the company.
Lukoil (LUKOY.PK, LUKOF.PK) is the standout value play in Russia, China's Sinopec (SNP) offers attractive valuation and improving transparency, but Brazil’s Petrobras (PBR) is still too risky.