May. 16, 2014, 12:39 PM
- Data released by a lobbying group for oil refiners confirms that crude from North Dakota is very volatile and contains high levels of combustible gases, but the group says the crude is no more dangerous to ship than oil from other shale regions and new rules on safety standards are not needed.
- Oil and refining companies say it's mostly the railroads that are at fault: a probe into the derailment and explosion of a train in Lac-Megantic last year found that brakes weren’t applied correctly; a train that exploded in North Dakota in December crashed into a train that had derailed across the tracks; and the April explosion of a train carrying Bakken crude through Lynchburg, Va., may have been caused because sections of the track bed had been washed away by heavy rains.
- Among Bakken producers: CLR, EOG, WLL, HES, KOG, OAS, NOG, EOX, MRO.
May. 9, 2014, 11:58 AM
- Wall Street’s idea of investing in climate change means investors are piling into natural gas - the least polluting fossil fuel - as energy have accounted for nearly two-thirds of the $8B of inflows into sector-based ETFs this year.
- A White House advisory panel said this week that global warming already is blighting the U.S. with more intense coastal flooding, rainstorms and wildfires, but “weather extremes are good for the energy business," says money manager Skip Aylesworth.
- Climate change is proving to be a boon for energy investment; on the day the report was issued, the S&P Energy Index hit a record, and $322M flowed into ETFs that specialize in energy.
- "Natural gas is a potential bridge to new technologies that are green or clean,” says State Street's David Mazza, which he says has sparked investor interest in companies such as Nabors Industries (NBR), EOG Resources (EOG), Anadarko Petroleum (APC) and Chesapeake Energy (CHK).
- ETFs: XLE, ERX, VDE, OIH, ERY, FCG, DIG, DUG, GASL, IYE, GASX, PXJ, PXI, PSCE, FENY, RYE, FXN, DDG
May. 6, 2014, 7:25 PM
- The U.S. energy boom is undeniable - just today, the government said the U.S. next year will import only 23% of the crude oil it needs, the lowest since 1970 - but it's worth noting that the boom has been bought on credit.
- Many oil companies that lead the way in the fracking revolution spend more cash leasing land and drilling than they make selling oil and gas; Standard & Poor’s says 75 of the 97 E&P companies it covers have junk bond ratings.
- Little wonder that EOG - which generated $2.27B from its operations and spent $1.9B in Q1, its fourth straight cash flow-positive quarter - has one of the highest credit ratings (A-) of any oil and gas driller.
- Heard On The Street's Liam Denning thinks E&P investors now may be just chasing momentum, leaving them vulnerable to sharp corrections.
- ETFs: XLE, ERX, VDE, OIH, ERY, FCG, XOP, DIG, DUG, GASL, FRAK, IYE, IEO, GASX, PXE, PXJ, PXI, PSCE, FENY, RYE, FXN, DDG
May. 6, 2014, 11:53 AM
- EOG Resources (EOG +3.3%) - known for quietly building up positions in areas before their potential is widely recognized - says in its Q1 earnings report that its land in the DJ and Powder River basins in Colorado and Wyoming may hold the equivalent of 400M barrels of oil.
- EOG’s move to identify the region as one of four central elements of its drilling portfolio is significant because the company has been among the most conservative in describing the potential of new developments, Oppenheimer analyst Fadel Gheit says.
- Still, the Rocky Mountain reserve base is small compared to the 3.2B barrels EOG says lies beneath its acreage in the Eagle Ford.
May. 6, 2014, 8:15 AM
- EOG Resources (EOG) +3.2% premarket after reporting Q1 earnings rose 34% Y/Y and revenues that easily beat analyst estimates, benefiting from increased production.
- EOG's total crude oil and condensate production during Q1 gained 42%, including growth of 45% in the U.S.; overall total company production increased 18%, led by a 37% increase in total liquids production.
- Raised its 2014 crude oil and condensate production growth target to 29% from 27%, and raised its total production growth target for the year to 12% from 11.5%.
May. 5, 2014, 6:17 PM
May. 5, 2014, 6:55 AM
May. 4, 2014, 5:35 PM
- AEIS, AIG, APC, APL, ARE, AXLL, BDE, BNFT, CATM, CFN, CKEC, CKP, CRK, DATA, ECOL, ECOM, EGOV, ELNK, ENH, EOG, EOX, FLDM, FN, G, HCLP, HGR, HI, IDTI, ININ, KAR, LF, MCEP, MED, MR, NLS, OAS, OTTR, PIKE, PRI, PSMI, QLYS, RBC, RGR, ROSE, RWT, SALE, SKH, SMG, SNHY, STAG, SZYM, THC, TXRH, UAM, VECO, VNO, VVUS, WG, YY, ZIPR.
Apr. 23, 2014, 12:57 PM
- North Dakota's industrial commission is considering a proposal that would cut back on the state’s booming oil production as a means of controlling the amount of natural gas that’s being burned off at well sites.
- North Dakota drillers currently flare more than a third of the gas because development of pipelines and processing facilities to capture it hasn’t kept pace with oil drilling.
- "If production curtailment is the chosen regulatory path, then wells will be shut in or not even drilled,” says Roger Kelley, director of regulatory affairs for Continental Resources (CLR), one of the biggest players in the state.
- Other top North Dakota producers include EOG, WLL, HES, KOG, OAS, NOG, EOX, MRO.
Apr. 16, 2014, 6:37 PM
- EOG Resources (EOG) expects a ~$155M non-cash loss during Q1 on the mark-to-market of its crude oil and natural gas derivatives contracts, according to an SEC filing.
- EOG says the net cash paid for settlements of the derivative contracts in Q1 was $34M, while actual realizations for crude oil and natural gas differ from average Nymex prices due to delivery location and quality adjustments.
- EOG typically reports its adjusted profit figures that exclude impacts from mark-to-market commodity derivative contracts.
Apr. 16, 2014, 12:14 PM
- Another potential problem related to fracking has been discovered in North Dakota, where piles of garbage bags have been found in two places recently filled with “oil socks” used to capture silt found in the waste water from fracking, but which also contain radioactive waste.
- North Dakota wells may produce 27 tons/day of the filter socks, and the state has no storage facility capable of handling radioactive waste - with 500-600 injection wells now producing the socks.
- Though the radiation levels are mild, the discoveries provide further evidence of how regulators in the state have been slow to address the repercussions of the shale oil boom.
- Bakken producers include CLR, EOG, WLL, HES, KOG, OAS, NOG, EOX, MRO.
Apr. 12, 2014, 8:25 AM
- Ohio geologists for the first time have linked earthquake activity in the Marcellus Shale to fracking, a new connection that could have implications for oil and gas drilling in the state and beyond.
- As a result, Ohio is setting new permitting conditions in quake-sensitive areas and has halted drilling indefinitely at the site of five quakes last month in the Youngstown area.
- Earthquakes recently rattled residents in Oklahoma, putting that state on track for record quake activity this year, which some seismologists say may be tied to oil and gas exploration.
- Among companies drilling in the Marcellus and Utica shales: RRC, CHK, COG, ACMP, APC, ATLS, CVX, CNX, DTE, EOG, EQT, XCO, XOM, MWE, NBL, RGP, REXX, RICE, RDS.A, RDS.B,SWN, STO, SXL, TLM, WMB, WPX.
Apr. 10, 2014, 10:46 AM
- Oklahoma is experiencing a noticeable increase in earthquakes near drilling sites, according to the Oklahoma Geological Survey, suggesting a potential link between fracking and seismic activity.
- The state already has experienced as many earthquakes YTD than all of last year combined: 109 earthquakes with a magnitude 3 or higher through April 6, the same number of earthquakes as in all of 2013.
- The incidents pose a conundrum for regulators in a state that has fully embraced oil and gas drilling.
- Among drillers with a significant Oklahoma presence: CHK, CLR, APA, DVN, SD, EOG, MRO, OKE, OKS, GPOR, WPX, WMB, WPZ, LPI, CWEI, NFX, NGL, COG, WLL, NBL, MPO, PQ, XEC
Apr. 8, 2014, 6:21 PM
- Drilling fees on nearly 6,500 natural gas wells in the Marceluus Shale will bring more than $630M to Pennsylvania's coffers by the end of the year, three years after the state passed the fees into law, but critics say the oil and gas companies aren’t paying enough.
- Range Resources (RRC) paid the most with $27M in fees last year, followed by Chesapeake Energy (CHK) with $26.6M; among others, Cabot Oil & Gas (COG) forked over $13.2M, Anadarko Petroleum (APC) paid $12.3M, and EOG Resources (EOG) coughed up $4.5M.
- Critics who want the companies to pay more point to a report from the state’s independent fiscal branch that found Pennsylvania’s drilling fees were lower than severance tax rates on gas production in Texas and other states, which do not have drilling fees.
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, 6:35 PM
- There's no sign of a boom-and-bust scenario in the Bakken and Three Forks formations, where oil production will average 1.1M bbl/day in 2014 and grow to 1.7M bbl/day by 2020, Wood Mackenzie predicts.
- The research firm also says there is close to $118B in remaining value in the U.S. parts of the formations, adding that the expected lifetime of a Bakken well is 25-30 years.
- Participants are expected to spend ~$15B on drilling and completion of wells this year.
- Bakken producers include CLR, EOG, WLL, HES, KOG, OAS, NOG, EOX, MRO.
EOG vs. ETF Alternatives
EOG Resources Inc explores for, develops, produces and markets crude oil and natural gas primarily in major producing basins in the USA, Trinidad, United Kingdom, China, Argentina and, from time to time, select other international areas.
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