Jun. 17, 2014, 4:57 PM
- Encana’s success with spinning out its oil and gas royalty assets is being studied by Canadian Natural Resources (CNQ) as it considers options to monetize its royalty properties before year's end, CNQ President Steve Laut says at the company's investor day.
- Laut doesn’t say if CNQ would keep a controlling stake in the company if it decides to spin the assets into a new entity as Encana (ECA) did, “although Prairie Sky does look pretty good."
- Indeed it does: PrairieSky Royalty has climbed ~40% on the Toronto Stock Exchange from the $28 price it carried when Encana floated 52M shares three weeks ago.
May. 21, 2014, 10:11 AM
- U.S. energy authorities have slashed by 96% the estimated amount of recoverable oil in California's Monterey Shale deposits, deflating its potential as a national "black gold mine" of petroleum, the LA Times reports.
- Just 600M barrels of oil can be extracted with existing technology, far below the 13.7B barrels once thought recoverable; the new estimate is expected to be released publicly next month.
- The Monterey Shale formation contains about two-thirds of U.S. shale oil reserves, and had been seen as an enormous bonanza for California's economy and U.S. energy security.
- Potential tickers of interest include OXY, CNQ, PXP.
May. 13, 2014, 7:29 PM
- U.S. exchanges are now unified in canceling some wild trades in (AOL -3.1%) in a two-minute span just 10 minutes before the close.
- The odd trades, traced to a trading firm's mistake, also affected dealing in Nabors (NBR), Lorillard (LO -1.3%), Marathon Petroleum (MPC -0.3%), Canadian Natural Resources (CNQ +0.3%), Nasdaq OMX (NDAQ -0.9%) and Caterpillar (CAT +0.9%), among others -- but those trades will be left standing.
- The NYSE will bust AOL trades of $33.17 or below, while Nasdaq, Direct Edge and NYSE Arca will cancel those at $33.16 and below.
May. 9, 2014, 12:46 PM
- Canadian Natural Resources (CNQ -1.1%) President Steve Laut says this morning's earnings call that the company is considering spinning off or selling its stream of royalty income from its wholly owned lands in western Canada.
- Laut says CNQ will earn C$140M-C$150M in pretax royalty revenue from third-party oil and gas production on its properties, including those recently acquired from Devon Energy.
- Q1 earnings more than doubled Y/Y and beat analyst estimates, benefiting from higher natural gas prices; average natural gas pricing before risk management was C$5.69 in the quarter, up from C$3.51 a year ago, due in part to colder than normal winter temperatures in North America.
- Q1 production rose less than 1% to ~684.5K boe/day, and forecasts 2014 production levels before royalties of 537K-574K bbl/day of crude oil and NGLs and 1,530-1,570M cf/day of natural gas.
May. 8, 2014, 6:49 PM| 2 Comments
May. 8, 2014, 6:35 PM| 1 Comment
May. 8, 2014, 5:30 PM
Apr. 17, 2014, 7:56 AM
- Total (TOT) says it found oil while drilling in an ultra-deepwater play off Ivory Coast, the first discovery in the San Pedro Basin frontier exploration area.
- TOT says it found liquid hydrocarbon below 2,300 meters of water and will now evaluate the extent of the "very promising' find.
- TOT operates the block and holds a 54% stake in the venture, with Canadian Natural Resources (CNQ) owning 36% and state player Petroci 10%.
Apr. 16, 2014, 10:48 AM
- Alberta looks likely to implement energy efficiency measures when it revamps its climate-change policy to win support for its oil sector, an about-face on the former premier’s vow that the province wouldn’t enact new rules until the U.S. did.
- The province plans to have new regulations on emissions in the near future and may include a higher carbon price, Alberta's environment minister says.
- The struggle by Alberta’s oil producers for access to new markets, as reflected in U.S. delays in approving the Keystone XL (TRP) pipeline, comes amid opposition to oil sands bitumen because of its higher carbon intensity and concerns around air and water pollution.
- Relevant companies include ECA, ENB, EEP, STO, XOM, IMO, SU, CVE, PGH, BP, CNQ, BTE, DVN, IVAN, AAV, RDS.A, RDS.B, PTR, ATHOF
Apr. 7, 2014, 10:58 AM
- Stifel analysts raise price targets on their favorite exploration and production stocks, saying all the ingredients are in place for crude oil prices to stay elevated.
- Anadarko's (APC) target is lifted to $104 from $87 after underperforming the sector, but the Tronox environmental contamination suit went back decades and last week's settlement removes a huge overhang from the stock.
- Canadian Natural Resources (CNQ), considered one of the top Canadian oil stocks with the largest reserve base among its peers, is raised to $42 from $38.
- EOG Resources (EOG), which is reporting record oil and gas production and revolutionizing the U.S. energy position, is upped to $120 from $100.
- Also receiving price target raises: GPOR, NFX, PQ, SWN.
Apr. 4, 2014, 11:22 AM
- It's been nearly three years since the Obama administration started stalling and deferring its decision on the Keystone XL (TRP) pipeline, but the prevailing view is that the project will go ahead - and when it does, an approval could be "a light bulb moment" for investing in Canadian energy, says analyst Sonny Mottahed of Calgary-based Black Spruce Capital.
- The Keystone debacle has resulted in negative investor sentiment toward Canadian energy stocks, depressing their values relative to U.S. counterparts, Mottahed says; approval would remove much of the negative psychology, with investors saying Canada is in the game again.
- Many investors also feel that Keystone delays are constraining the development of Canada's energy sector, "so if that roadblock is removed, it would be a big positive," says Nomura's Charles St. Arnaud.
- The uncertainty has resulted in “an overhang on market access against Canadians” that has pushed capital to the U.S. energy industry, Canadian Natural Resources (CNQ) CFO Corey Bieber says.
Mar. 10, 2014, 5:34 PM
- Canadian Natural Resources (CNQ) remains haunted after nearly a year of unexplained leaks at its Primrose oil sands production site, as Alberta's energy regulator turned down its application to resume steaming operations in the affected area "in light of the ongoing investigation into the leaks at Primrose."
- The decision came on Friday, just a day after CNQ CEO Steve Laut told analysts the issue was “totally solvable” and that the company hoped to restart steaming in the impacted area in March or April.
- The mysterious subterranean leaks of oily water, which now total more than 7K barrels of crude, were first detected last May and led regulators to impose an indefinite ban on some steaming operations at Primrose.
Mar. 7, 2014, 10:57 AM
- Canadian Natural Resources (CNQ +0.8%) says it expects rising construction costs and delays at its Sturgeon refinery project in Alberta could double its equity commitment for the project to as much as C$680M.
- Sturgeon is designed to process 50K bbl/day of crude oil into refined products such as low-sulfur diesel and diluent used to dilute heavy oil for shipment.
- The cost overruns are a setback for Canada's second largest oil and gas company, which has prided itself on completing projects on time and within budget, and raises questions about the project's viability as other oil sands producers have abandoned similar upgrader plans.
Mar. 6, 2014, 11:28 AM
- Canadian Natural Resources (CNQ +1.2%) is trading higher after raising its dividend 12.5% and posting a 50% improvement in adjusted Q4 earnings as production edged higher.
- The dividend hike was the second in three months, and now is 80% higher than a year ago.
- Despite the strong growth, Q4 results were no better than mixed compared with analyst estimates, and cash flow per share was $1.64, $0.10 below expectations.
- Q4 crude oil at natural gas liquids production volumes rose 2% Y/Y as a result of steady production at Horizon, production growth at Pelican Lake and increased NGL output; natural gas production rose 5% Y/Y due to the Montney drilling program at Septimus.
- Total FY 2013 production more than 671K boe, up 3% Y/Y.
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