Fri, Apr. 17, 5:36 PM
Wed, Apr. 15, 12:32 PM
- Anadarko Petroleum (APC +2.1%) says it may close sales accords in the coming months that would enable it to authorize a Mozambican project that has the potential to make the country one of the top three liquefied natural gas exporters.
- A final investment decision depends on converting a non-binding heads of agreement that the APC-led project has in place for 8M metric tons/year of gas with customers in Japan, China, Thailand and Singapore into a sales contract.
- APC’s Area 1 and Eni’s (NYSE:E) Area 4 in the Rovuma Basin off Mozambique’s north coast together hold technically recoverable reserves of 120T cf, according to industry consultant Wood Mackenzie.
Wed, Apr. 8, 3:48 AM
- European energy shares are having a party in early trading following confirmation of Shell's blockbuster deal to buy BG Group for $70B.
- Tullow Oil (OTCPK:TUWLF) soars 11.5%, BP (NYSE:BP) is +4.2%, Repsol (OTCQX:REPYY) +2.2%, Total (NYSE:TOT) +1.3% and Eni (NYSE:E) +1.5%. The STOXX Europe 600 Oil & Gas index is +5.4%.
- "The deal is done on a net asset value basis, and the good price tag is set to trigger some re-rating across the whole sector," says a Paris-based trader.
- ETFs: XLE, ERX, VDE, OIH, XOP, ERY, FCG, DIG, GASL, DUG, IYE, XES, IEO, IXC, IEZ, PXE, IPW, PXI, FENY, PXJ, PSCE, RYE, FXN, GNAT, DDG, FILL
Thu, Apr. 2, 8:51 AM
- In a bit of good news for a beleaguered oil services company, Hercules Offshore (NASDAQ:HERO) +8.8% premarket after agreeing to a five-year contract with Eni (NYSE:E) for use of the Hercules 260 drilling rig in West Africa.
- HERO says the dayrate under the contract will range from a minimum of $75K/day when the price of Brent crude oil is $86/bbl or less to a maximum of $125K/day when the price of Brent crude is $125/bbl or more.
Mon, Mar. 30, 3:58 PM
- Exxon Mobil (XOM +2.4%) says it began production at its Hadrian South gas development in the deepwater Gulf of Mexico with facilities tied back to the nearby Lucius project, reducing additional infrastructure requirements.
- XOM expects daily gross production from Hadrian South, its deepest subsea tie-back in nearly a mile and a half of water, to reach ~300M cf of gas and 3K barrels of liquids from two wells.
- Hadrian South is a subsea production system with flowlines connected to the Anadarko-operated Lucius truss spar, which started production in January.
- With the startup of Hadrian South and Lucius, XOM's total Gulf of Mexico net production capacity has increased by more than 45K boe/day.
- XOM holds a 46.7% interest in Hadrian South, with partners Petrobras (NYSE:PBR) at 23.3% and Eni (NYSE:E) holding a 30% stake; XOM owns a 23.3% interest in Lucius.
Mon, Mar. 16, 12:55 PM
- Eni (E -2.1%) says it has made a significant discovery of gas and condensate with a wildcat well drilled at its Bahr Essalam South exploration prospect off Libya.
- The well produced 29M cf/day and 600 bbl/day of condensate during the production test; once producing, the well is expected to deliver more than 50M cf/day and 1K bbl/day of condensate.
Fri, Mar. 13, 3:44 PM
- Eni (E -5.9%) is 6% lower after becoming the first global oil major to cut its dividend, as well as suspending the €6B ($6.7B) share buyback plan it announced last year.
- BP and Royal Dutch Shell (RDS.A, RDS.B) have said they would do their utmost to continue paying high dividends and would rather cut operating and capital spending, sell assets and increase borrowing than reduce payouts.
- "Everyone was convinced they'd do all they could to keep the dividend steady," says a fund manager at Ifigest, adding that the capex cuts and intensity of the asset sales - the company is eyeing ~$8.5B in sales - also are causes for concern.
- UBS calls Eni’s decision to cut the dividend a “bold step” because the higher payout risked skewing strategy to protect it; Eni’s dividend payout is now below several peers, including Shell, though the comparison is somewhat false as the other companies are paying partly in shares, UBS adds.
- Despite a proposed a 17% cut in planned capital spending over the 2015-18 period compared to previous plans, Eni says production will grow 3.5%/year in the four years on the back of several projects started in 2014 in Angola, Congo, the U.K., the U.S. and Norway.
Fri, Mar. 13, 11:13 AM
- Eni (E -5.2%) staggers to two-month lows after its new strategic plan outlines sharply lower spending, a big dividend cut and asset sales totaling €8B ($8.5B) over the next four years amid lower oil prices.
- Eni traditionally has one of the highest dividend payouts in the industry, but it now plans to pay an annual dividend of €0.80/share, a 29% reduction from last year.
- Eni's four-year plan for 2015-18 projects a 17% drop in capex compared with its previous plan.
Wed, Feb. 18, 9:02 AM
Fri, Jan. 23, 11:52 AM
- Eni (E -2.2%) expects to cut costs this year by 10%-15% while postponing investments in its most costly projects, Chairwoman Emma Marcegaglia tells WSJ.
- The company has managed to obtain better terms - discounts of as much as 30% vs. the recent past - on new contracts with its contractors and the governments in the countries where it operates, Marcegaglia also says.
Thu, Jan. 8, 9:14 AM
- DryShips (NASDAQ:DRYS) +3.9% premarket on news that its Ocean Rig UDW (NASDAQ:ORIG) subsidiary has secured a contract extension for one of its drillships with Eni (NYSE:E) and gains work for possibly another two units.
- As part of the contract extension for the Ocean Rig Poseidon, ORIG will adjust the existing dayrate of the Ocean Rig Poseidon contract and Eni will enter into two contracts for the employment of one or more of ORIG's available drillships in West Africa starting in Q1.
- DRYS says the agreement increases ORIG's total contract backlog by ~$187M.
Mon, Jan. 5, 2:44 PM
- Chevron (CVX -3.8%) is downgraded to Neutral from Buy at Citigroup after outperforming big oil peers in the past three months in a reflection of the resilience of CVX's balance sheet.
- Citi revises its earnings forecasts to reflect lower oil prices, and says the stock now offers little upside in absolute and relative terms, "certainly when balanced against a portfolio that still carries uncertainties around both execution and reinvestment."
- The firm also downgrades Eni (E -8.6%) and Repsol (OTCQX:REPYY -5.8%), whose business models and valuations will look more challenged in a lower oil environment, but prefers companies it says boast strong growth credentials, such as BG (OTCPK:BRGXF), Total (NYSE:TOT) and ConocoPhillips (NYSE:COP); it keeps Exxon (XOM -2.6%) at Neutral, thinking share buybacks likely will be dialed down to preserve the balance sheet for a prolonged period of lower prices or eventual acquisitions.
Mon, Jan. 5, 12:39 PM
- ConocoPhillips (COP -4.8%) says it is flowing its first barrels of oil from the Eldfisk II project in the Norwegian North Sea, in the company’s second big startup off the coast of Norway since late 2013.
- COP says its newly productive project, alongside its other Norwegian offshore wells, will boost its output by 60K boe/day by 2017, and plans to drill 40 new water-injection and oil wells at its Norwegian field over the next three years.
- The Eldfisk field is one of four offshore oil regions that make up Norway’s Greater Ekofisk Area, operated by COP and co-owned with Total (NYSE:TOT), Eni (NYSE:E), Statoil (NYSE:STO) and others.
Mon, Jan. 5, 9:10 AM
Dec. 17, 2014, 5:40 PM
Dec. 2, 2014, 12:15 PM
- Chevron (CVX +1.8%) says oil and natural gas production has begun from the Jack and St. Malo fields development project in the deepwater Gulf of Mexico, 10 years after the fields were first discovered.
- CVX expects total production from the $7.5B project - its costliest active investment in the Americas - to ramp up to 94K bbl/day of crude and 21M cf/day of gas by 2020, with 500M boe from the two fields over their 30-year lifespan.
- CVX has a 50% interest in the Jack field, with Statoil (NYSE:STO) and Maersk splitting the remaining half, and it owns 51% of St. Malo, with co-owners Petrobras (NYSE:PBR), Statoil, Exxon (NYSE:XOM) and Eni (NYSE:E).
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