Fri, Feb. 27, 2:42 PM
- BP is pushing back the start date for its contract with Helix Energy Solutions (HLX -2.2%) for the Q5000 well intervention vessel, sending HLX shares to 52-week lows.
- The well was scheduled to begin work in the Gulf of Mexico in Q3, but the amended agreement defers the start of the work to April 1, 2016.
- The amendment also contains certain other modifications that HLX says will give it greater flexibility to market the vessel to other potential customers, including prior to starting the work for BP.
Thu, Feb. 12, 2:14 PM
- If Exxon Mobil (XOM +1.6%) decides to go hunting for struggling energy peers with shrinking cash flow - as it did five years ago when it acquired XTO Resources for $25B, during an energy rout worse than today's - it would need to go big or not go at all in order to meaningfully boost its oil and gas reserves, WSJ writes as it discusses BP (BP +2.1%) as a potential takeover target.
- BP “is the obvious fit says Wolfe Research's Paul Sankey; buying BP, which is still dealing with the fallout of the 2010 Gulf of Mexico oil spill, “would close out a damaged brand at a terrific price” and bolster XOM’s capacity to find new sources of oil and gas, he says.
- Other potentially attractive targets singled out by analysts include a smaller tier of companies such as Anadarko (APC +1.9%) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY), which have discovered huge deposits of oil and gas but may lack the cash flow to develop them quickly.
Tue, Feb. 3, 5:13 PM
- BP -1.7% AH following a Financial Times report that the U.S. Commodity Futures Trading Commission has told the company it intends to recommend legal action after “investigating certain practices relating to crude oil pipeline nominations procedures” in Canada.
- The CFTC has been examining shippers’ use of “air barrels,” or booking more oil than they plan to move, a lawyer familiar with the investigation tells FT.
- BP is a heavy consumer of Canadian oil, and it recently retooled a refinery in Whiting, Ind., to handle more imports; Canadian oil also flows into the Cushing, Okla., delivery point for benchmark U.S. crude futures that are regulated by the CFTC.
Tue, Feb. 3, 12:38 PM
- Providing a gloomy oil price outlook despite the rally in recent days, BP (BP +2.6%) CEO Bob Dudley says crude prices likely will settle in at low levels because U.S. production will continue to increase at least through the summer even though rigs are falling fast.
- "It will be a long time before we see $100 again," Dudley tells Bloomberg, adding that the current situation reminds him of 1986 when oil dropped to $10/bbl from $30; today's biggest problem, he says, is that oil stocks are filling up around the world and places like China aren’t growing as fast.
- The CEO’s comments came as BP announced it would cut its annual budget to $20B, down ~20% from its original program as it slashed spending on hunting for oil and postponed refining projects, becoming the latest oil major to call off ambitious investments because of falling petroleum prices.
- The shareholder dividend remains the company’s first priority, Dudley says.
- ETFs: USO, OIL, UCO, SCO, BNO, DTO, DBO, UWTI, USL, DWTI, DNO, SZO, OLO, TWTI, OLEM
Tue, Feb. 3, 4:45 AM
- BP (NYSE:BP) reported a replacement-cost loss of $969M for the fourth quarter of 2014, after taking a $3.6B impairment charge related to its upstream assets and cutting spending due to low oil prices.
- On an underlying basis, replacement cost profit came in above expectations at $2.2B (due to unexpected profit at the company's Rosneft (OTC:RNFTF) stake), sending up shares as much as 3% premarket.
- BP also announced it would cut capex to $20B in 2015 from $22.9B in 2014.
- "We have now entered a new and challenging phase of low oil prices through the near and medium term," said CEO Bob Dudley. "Our focus must now be on resetting BP."
Fri, Jan. 30, 11:39 AM
- Chevron (CVX -2.9%) turns sharply lower after saying during its earnings conference call that it is suspending its share buyback program for 2015 given the change in market conditions.
- The company also says it is reviewing staff levels around the world.
- Other oil majors also turn lower: XOM -1%, COP -1.7%, BP -0.9%, RDS.A -2.1%.
Thu, Jan. 29, 1:47 PM
- France's Total (TOT +1.5%) is one of the day's few energy gainers after the surprise announcement of a new deal to operate some of the Persian Gulf's largest onshore oil fields in the United Arab Emirates.
- TOT is taking a 10% stake for 40 years in a joint venture with Abu Dhabi National Oil Company to extract crude in the 15 main fields in the UAE with a total output of 1.6M bbl/day.
- Four oil majors - TOT, Exxon Mobil (NYSE:XOM), Royal Dutch Shell (RDS.A, RDS.B) and BP - had each held 9.5% equity stakes in the ADCO concession since the 1970s.
- Concessions for international oil companies to produce on in the Persian Gulf Arab states such as the UAE are rare and highly prized due to the size of reserves and low production costs.
Wed, Jan. 28, 10:24 AM
- Chevron (CVX -2.2%) says it plans to work with BP (BP -2.1%) and ConocoPhillips (COP -1.7%) to explore and appraise 24 jointly held offshore leases in the northwest part of Keathley Canyon in the deepwater Gulf of Mexico.
- The move marks a significant strategic retreat for BP, which will sell to CVX half its equity interests in the Gila and Tiber fields, huge deepwater discoveries found during the past decade, as it continues to scale back its balance sheet and cut costs; financial terms are not disclosed.
- CVX and COP agreed to joint ownership interests in the Gibson exploration blocks east of Gila.
- In Gila and Gibson, CVX will be the operator and own 36% interests, with BP holding 34% and COP 30%; in Tiber, CVX and BP each will own 31%, Petrobras (NYSE:PBR) 20% and COP 18%.
Fri, Jan. 16, 8:21 AM
- BP +3.8% premarket and is the leading gainer on the FTSE 100 after a U.S. judge essentially split the difference between competing claims about how much oil was spilled in the 2010 Gulf of Mexico disaster.
- BP now faces a maximum penalty of $13.7B rather than the $17.6B the company had feared; penalties will be assigned after the third and final phase of the non-jury trial which starts Tuesday in New Orleans.
- Barclays analysts see the ruling as "a step in the right direction [for BP] of what appears set to be a long and hard-fought legal battle."
Mon, Jan. 5, 12:18 PM
- Energy stocks severely underperform the broader market, with the sector -4.2% vs. the S&P 500's -1.4%, as U.S. oil prices briefly slip below $50/bbl for the first time since April 2009; Nymex crude recently was -4.4% at $50.37, while Brent crude -5.9% at $53.08.
- Among the day's biggest losers: DNR -9%, RIG -7.6%, NBR -4.8%, CHK -5.9%, SDRL -9.1%, SD -12.3%, NOV -5.9%, PSX -6.2%, APA -5.9%, DVN -4.4%, EOG -6%, SU -5.2%, OXY -4.2%, APC -8.7%, PWE -9%, ECA -5.5%, MRO -5.3%.
- Global oil majors, which have been seen as less vulnerable to falling oil prices, are posting big losses: XOM -2.7%, COP -4.5%, CVX -3.8%, BP -5.8%, RDS.A -4.6%, TOT -6.5%.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, XOP, ERY, FCG, DIG, PBW, BNO, GASL, DTO, DBO, DUG, IYE, XES, IEO, QCLN, IEZ, UWTI, PXE, USL, PXI, FENY, DWTI, PXJ, DNO, PSCE, RYE, SZO, PUW, FXN, OLO, DDG, HECO, TWTI, OLEM
Dec. 22, 2014, 10:45 AM
- Natural gas prices fall 9.5% to near two-year lows at $3.133/mmBtu, in the biggest one-day percentage loss since February and the lowest intraday price since January 2013, on mild weather forecasts and inventory that is above year-ago levels.
- Prices are now down more than 15% in three straight losing sessions and are 30% lower than the six-month high closing price of $4.489/mmBtu it hit just a month ago.
- Weather has been unseasonably warm for December, limiting demand for home heating and allowing relatively low stockpiles to catch up to where they were a year ago and encouraging traders to sell based on the belief that supply is relatively healthy.
- Gas producers are among the biggest early decliners: XOM -1.1%, CHK -7.3%, APC -2.6%, SWN -6%, DVN -2.2%, COP -2.3%, BP -1.5%, COG -4%, BHP -1.9%, CVX -1.3%, ECA -5.1%, EQT -4.3%, RDS.A -1.7%, UPL -12%, WPX -6.9%, EOG -1%, OXY -1.1%, RRC -6.1%, APA -2.3%, AR -3.2%, CNX -3%, QEP -4.8%, LINE -4.9%, NBL -1.6%, SM -2.6%, XEC -4.2%, PXD -2.9%, NFX -5.1%.
- ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ, FCG, GASL, KOLD, UNL, NAGS, DCNG
Dec. 15, 2014, 2:42 PM
- The European Commission gives conditional clearance for BP (BP -3.1%) to acquire jet fuel business Statoil Fuel and Retail Aviation (NYSE:STO), subject to conditions.
- The competition authorities say BP had committed to divesting SFRA's activities at Stockholm, Malmo, Gothenburg and Copenhagen airports to remove concerns that increased concentration there would have led to price increases of fuel for airlines.
Dec. 12, 2014, 12:58 PM
- BP (BP -1.9%) must cut jobs because costs are higher than at its global competitors, and some sites or plants may be shut or sold, CEO Bob Dudley reportedly told staff this week.
- "In many parts of BP, we have higher costs and larger teams than other companies operating at a similar scale,” Dudley said in an internal memo to staff obtained by Bloomberg.
- BP plans to cut $1B-$2B from a previous capital spending budget for 2015 of $24B-$26B, it said earlier this week.
Dec. 10, 2014, 3:26 PM
- As BP (BP -2.1%) looks to cut costs further in the face of collapsing crude oil prices, the company faces an identity crisis in the long term and dividend doubts in the short term.
- Investors can see the benefits of capital discipline, but FT's Christopher Adams ponders what kind of company BP wants to be after already shrinking enormously - production has dropped nearly 30% since 2009 - and where are the discoveries that will power growth and keep it among the supermajors.
- Bringing online new projects in the Gulf of Mexico, including an expansion of Thunder Horse field, will be essential if BP is to finally move clear of more than $40B in post-spill provisions; analysts say BP’s position in the high-margin Gulf of Mexico and expertise in deepwater drilling give it the best chance to weather the slide in oil prices.
Dec. 10, 2014, 12:58 PM
- Energy stocks are slammed across the board as oil prices take another nosedive (I, II), with the losses heaviest on shares of small, U.S.-based oil and gas producers.
- “Financial leverage is being thrown out the window, and everything else is being purged as well,” says Simmons analyst Bill Herbert, who adds that cuts to production budgets in the coming year likely will mean more pain for oil service companies.
- Among the hardest-hit shares: TPLM -15.2%, CRK -12.4%, GDP -11.9%, NOG -9.5%, AREX -8.6%.
- Investors have been less quick to dump shares of integrated oil companies, but today they have been smacked too: XOM -2.8%, CVX -2.9%, COP -2.3%, BP -2%, RDS.A -2.2%, TOT -2.3%.
- Today's worst performers on the S&P 500 include OKE -8.2%, DNR -7.4%, NE -5.6%.
- Service companies also are down: SLB -2.6%, HAL -2.7%, WFT -6.6%, BHI -2%.
- ETFs: XLE, ERX, VDE, OIH, ERY, DIG, DUG, IYE, XES, IEZ, PXI, FENY, PXJ, RYE, FXN, DDG
Dec. 10, 2014, 4:37 AM| 3 Comments
BP vs. ETF Alternatives
BP PLC provides energy products and services. The company explores for oil and natural gas and also engages in supply and trading of crude oil, petroleum, petrochemicals products and related services.
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