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.
Mar. 31, 2014, 11:19 AM
- EOG Resources (EOG -0.9%) surges to all-time highs before pulling back, as the biggest owner of drilling leases in the Eagle Ford shale says five new wells in the formation were pumping more than 13K boe/day of crude, yielding 91%-97% oil.
- The wells individually produced from 2,314 bbl/day to 3,071 bbl/day; the quality of the crude discovered was on par with the light oil produced in Nigeria or off the Louisiana coast.
Mar. 24, 2014, 5:35 PM
Mar. 12, 2014, 2:36 PM
- ZaZa Energy (ZAZA +6.2%) says it will move ahead with the third and final phase of its joint venture with EOG Resources (EOG -0.4%) developing the emerging Eaglebine tight oil play in east Texas.
- EOG will receive a 75% working interest in the remaining Phase III acreage, and ZAZA will receive $4.7M of upfront cash and a carry of the partner's share of future joint venture costs of up to ~$9.2M.
- EOG also commits to drill an additional two wells, with the first commencing no later than July 1.
Mar. 5, 2014, 3:33 PM
- EOG Resources' (EOG -0.6%) target price is raised to $214 from $190 at Deutsche Bank, as year-end 2013 disclosures from Buy-rated EOG suggest the drivers of oil growth are diversifying away from rather than concentrating further on the Eagle Ford.
- Since contributing 90% of EOG oil growth in 2012, the firm's analysis suggests the diversification means growth in 2014 and beyond will be more balanced at 65% Eagle Ford and 35% for other plays, offering important implications for EOG's risk profile and multiple, and how the market perceives the stock's multi-year outlook.
Feb. 26, 2014, 12:59 PM
- While Chesapeake (CHK -7.1%) languishes after reporting its Q4 earnings, natural gas producer EOG Resources (EOG +1.8%) continues to rise after its Q4 results beat expectations.
- Howard Weil raises its EOG price target to $210 from $191 following strong earnings coupled with encouraging conference call commentary on EOG's domestic onshore portfolio; EOG has exhibited tremendous success in discovering new horizontal oil resource plays and capturing sizable acreage positions, and has improved well performance and reduced costs in other key areas outside of the Eagle Ford (Briefing.com).
- RBC Capital lifts its target to $206 from $182 as EOG increased its Eagle Ford net potential recoverable reserves by 45%; the firm thinks FY 2014 production growth guidance probably was conservative (Briefing.com).
Feb. 26, 2014, 9:46 AM
- Yesterday's U.S. government emergency order requiring tests of crude oil on trains prompts confusion as refiners and producers try to understand what the new requirements will mean to their operations and how broadly they will apply to shipments.
- "What do you want us to test for?” says Alon USA Energy's (ALJ) director of supply, trading and business development. "I’m not really sure what this means or what they expect from us."
- Tesoro’s (TSO) VP of development, supply and logistics says he isn’t sure what new procedures were being mandated since the company already tests crude shipments.
- Continental (CLR), the biggest producer of Bakken crude, praises the government’s effort to improve crude-by-rail safety.
- More Bakken names: EOG, WLL, HES, KOG, OAS, NOG, EOX, MRO.
Feb. 25, 2014, 4:42 PM
- Companies moving crude oil by rail must test the volatility of fuel out of North Dakota's Bakken oilfields to ensure the proper classification of crude oil before it is transported, the Department of Transportation announces.
- The move is meant to step up oversight after several recent fiery derailments of oil moved by rail out of the Bakken; some data contends that Bakken crude is more combustible than oil from other areas.
- Bakken oil names include: CLR ,EOG, WLL, HES, KOG, OAS, NOG, EOX, MRO.
- Rails: CSX, NSC, KSU, GWR, CP, UNP.
Feb. 25, 2014, 12:05 AM
Feb. 24, 2014, 6:20 PM
- EOG Resources (EOG) +1.7% AH after reporting a Q4 profit compared with a year-ago loss when the energy company wrote down the value of some Canadian assets.
- EOG's crude oil and condensate revenue - its biggest contributor to the top line - rose 48% Y/Y; natural gas liquids revenue rose 4.5%, while natural gas revenue fell 1.7%.
- Q4 net operating revenue increased 24% to $3.75B while operating expenses fell 18% to $2.7B.
- Sets 2014 crude oil production growth target at 27% and overall production growth target at 11.5%; 2014 capex planned at $8.1B-$8.3B, and does not plan to allocate capital to North American dry natural gas drilling in 2014.
Feb. 24, 2014, 5:33 PM
Feb. 24, 2014, 5:30 PM
Feb. 24, 2014, 10:22 AM
- Following a string of explosive accidents on railcars carrying crude oil, a WSJ analysis finds that crude from North Dakota’s Bakken Shale formation contains several times more combustible gases than oil from elsewhere.
- Nearly 1M bbl/day are being produced in North Dakota but with pipeline capacity unable to keep up with growth, railroads are the prime method of transporting the crude to refineries; the volatility of the crude, however, raises concerns that the cargo moving through the U.S. is more dangerous than previously believed.
- Tanker cars full of oil pass through several major U.S. cities, and a repeat of what happened in last July's fatal derailment in Quebec in a densely populated area is a huge safety concern.
- Among top Bakken producers: CLR, EOG, WLL, HES, KOG, OAS, XOM, MRO, STO.
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