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Emerald Oil, Inc. (EOX)

  • Yesterday, 7:35 PM
    • The crude oil aboard the train that derailed and exploded two weeks ago in West Virginia contained so much combustible gas that it would have been barred from rail transport under safety regulations set to go into effect next month, WSJ reports.
    • The oil’s vapor pressure was 13.9 psi, which exceeds the limit of 13.7 psi that North Dakota is set to impose in April on oil moving by truck or rail from the Bakken Shale.
    • Plains All American Pipeline (NYSE:PAA), which shipped the oil, says it follows regulations governing the shipping and testing of crude; CSX, the railroad that carried the oil, says it had stepped up its inspections of the track along the route.
    • The new information about the West Virginia accident likely will increase regulators’ focus on the makeup of oil being shipped by train; oil from sahle formations is known to contain far more combustible gas than traditional crude oil, which has a vapor pressure of ~6 psi.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Thu, Feb. 26, 2:58 PM
    • North Dakota's oil producers have cut the number of active rigs in the state to just 121 from 190 a year ago, according to a new list published by the state’s Department of Mineral Resources.
    • The rig count is now below the threshold of “at least 130” the DMR director had identified last month as needed to sustain output at the current level of slightly more than 1.2M bbl/day.
    • Of the 121 active rigs, 115 are drilling in just four counties at the heart of the Bakken - Dunn, McKenzie, Mountrail and Williams.
    • With the number of rigs in even the core areas down by 30% in just over two months, production likely will begin to plateau or fall in the coming months, Reuters' John Kemp writes.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Fri, Feb. 6, 9:12 AM
  • Thu, Feb. 5, 5:20 PM
    • Emerald Oil (NYSEMKT:EOX) -7.2% AH after announcing a public offering of $25M in common stock, with an underwriters option to purchase up to an additional $3.75M of stock.
    • EOX says it plans to use the proceeds for working capital and general corporate purposes.
  • Thu, Feb. 5, 2:39 PM
    • Emerald Oil (EOX +20.2%) surges after announcing Q4 total production of more than 377K boe (96% oil), or 4.1K boe/day, up 69% Y/Y and a 6% increase Q/Q.
    • EOX says its proved reserves increased 99% Y/Y to 26.3M boe.
    • Says drilling operations continue with one rig currently operating in the Low Rider project area in North Dakota, and intends to continue its previously announced variable one rig program in 2015.
  • Thu, Feb. 5, 12:45 PM
    | 1 Comment
  • Thu, Jan. 15, 10:25 AM
    • North Dakota oil production rose to a new record even as energy companies drilled fewer wells and the rig count dropped to a near five-year low.
    • The state's oil output hit a record 1.19M bbl/day in November, the most recent month available, according to data released yesterday by North Dakota’s Department of Mineral Resources.
    • Despite the new record, the head of the department warned the state’s crude production will peak and decline later this year if oil prices don’t rebound; the current price of North Dakota sweet crude is ~$29.25/bbl, the lowest since Dec. 2008.
    • The latest drilling rig count is 158, the lowest in nearly five years and down from a high of 218 rigs in 2012, but the department says production may not start to drop until the rig count falls to 130 or lower.
    • Gregor McDonald argues that the North Dakota data confirming that Bakken drilling activity has slowed meaningfully has sparked the snapback rally in crude oil prices.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Mon, Jan. 12, 7:22 PM
    • The number of drilling rigs operating in North Dakota's oil fields has dropped to 159, the lowest level since November 2010.
    • The state lost eight rigs overnight, according to state data, a steep one-day drop not seen for years in the second-ranked U.S. oil producer.
    • The drop comes after Continental Resources (NYSE:CLR), Oasis Petroleum (NYSE:OAS) and other companies announced capital spending cuts for 2015, admitting they planned to use fewer rigs this year.
    • Other major North Dakota producers include EOG, WLL, HES, XOM, NOG, EOX and MRO.
  • Fri, Jan. 9, 10:56 AM
    • North Dakota needs an oil price of $55/bbl and a fleet of at least 140 rigs to sustain production at the current level of 1.2M bbl/day, according to a presentation from the state's chief mineral resources regulator.
    • Breakeven rates for new wells range from $29 in Dunn county and $30 in McKenzie to $36 in Williams and $41 in Mountrail; these four counties account for 90% of drilling in the state.
    • The number of rigs operating in the state already has fallen to 165, down from 191 in October.
    • The projections confirm North Dakota's oil output will start to fall by year's end unless prices rise from current depressed levels.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Thu, Jan. 8, 3:29 PM
    • News reports about crude oil futures prices plunging through $50/bbl have been plentiful but many U.S. physical crude producers are receiving far less and would be thrilled if they could get $50, Reuters' John Kemp writes.
    • Case in point: Prices received by oil producers in North Dakota's Williston Basin have averaged less than $34/bbl so far this month, according to Plains Marketing, falling by almost two-thirds since June when Plains posted an average price of nearly $92/bbl for Williston Sweet.
    • The recent decline has been almost as rapid and brutal as 2008-09 when Williston prices crashed from $116 to less than $17.
    • Kemp says past experience suggests extreme prices tend be relatively short-lived phenomena and followed by at least a partial correction, and thinks some sort of rebound is likely this time around in the next 2-3 months.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
  • Sun, Jan. 4, 3:49 PM
  • Dec. 18, 2014, 9:14 AM
  • Dec. 12, 2014, 3:49 PM
    • Emerald Oil (EOX -23.9%) plunges to 52-week lows after trimming its Q4 production target to 3,300 boe/day, down 14.9% Q/Q, and reduces 2015 guidance by more than 17% from its mid-point of prior range to 4,500-4,800 barrels daily; in a move to conserve capital and protect the balance sheet, EOX also drastically cut its drilling and completion budget to $62M-$81M from a prior $210M-$240M.
    • Shares are downgraded to Neutral from Accumulate at Global Hunter, which views the defensive posture as prudent but the lower production forecast reduces NAV to $1.50; however, the firm says EOX remains a favored way to play a rebound in oil prices, sporting one of the highest sensitivities to $90 oil within its coverage group.
  • Dec. 12, 2014, 12:46 PM
  • Dec. 12, 2014, 9:16 AM
    | Comment!
  • Dec. 11, 2014, 5:23 PM
    • Emerald Oil (NYSEMKT:EOX) lowers its Q4 average production guidance to 3,300 boe/day, citing downtime associated with a one-time installation process of replacing electric submersible pumps with rod pumps to reduce lease operating expenses; the 2014 exit rate guidance of 4,600 boe/day remains unchanged.
    • EOX also cuts its 2015 production and capex guidance: Sees production of 4200-4500 boe/day vs. prior 5,425-5,800 boe/day, drilling and completion budget of $62M-$81M vs. prior $210M-$240M, and net operated well count of 6.5-8.5 vs. prior 22.1-25.2.
    • Appointed Mike Dickinson as its new COO, effective Jan. 1, replacing David Veltri, who resigned.
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Company Description
Emerald Oil Inc is an independent exploration and production company. The Company focuses on acquiring acreage and developing wells in the Williston Basin of North Dakota and Montana.