Oct. 29, 2014, 5:53 PM
Oct. 15, 2014, 10:19 AM
- Ethiopia will grant Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY) an extension to its exploration license after the company reported “encouraging” results in its search so far, the country's mining minister says.
- Tullow had requested more time to analyze data from drilling and seismic surveys in southern Ethiopia after two out of four wells it drilled in the past two years, along with partners Marathon Oil (NYSE:MRO) and Africa Oil (OTCPK:AOIFF), show they may contain petroleum deposits.
- No oil or gas is currently produced by Ethiopia.
Oct. 13, 2014, 5:57 PM
- Bakken shale oil producers are under pressure to scale back their 2015 drilling plans after Bakken oil fell below $80/bbl for the first time in nearly a year, as worldwide crude prices decline amid ample North American supplies and Persian Gulf producers signaling they’re prepared to keep output high to protect their market shares in Asia.
- The "body language" among producers is that capex next year will be flat or only slightly higher, vs. earlier expectations for 5%-10% increases, says Topeka Capital's Gabriele Sorbara, who adds Bakken drillers need prices of $70-$80/bbl to earn a typical 15%-25% return.
- Bakken wells produced a record 1.047M barrels of crude in July, accounting for 12% of total U.S. output: CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
Oct. 9, 2014, 3:25 PM
- Crushed by relentless anxiety about oversupply and weakening global demand, Nymex crude oil futures closed down $1.54 at $85.76/bbl, their lowest close since Dec. 2012, while Brent crude fell below $90/bbl for the first time in more than two years.
- Including today's losses, WTI crude is down 6.2% since the start of the month and Brent has surrendered ~5%.
- In the face of surging output, a move in WTI below its 10-year average at $82 is not out of the realm of possibility, Brown Brothers Harriman says, adding that "a break of $73/barrel could send WTI toward $64, which corresponds with the 2010 low."
- Among big oil names so far today: APC -6.3%, LINE -4.6%, EPD -3.8%, DVN -3.8%, MRO -3.6%, HES -3.8%, KMI -3.7%, TOT -3.5%, STO -3.3%, RDS.A -3.1%, OXY -3%, KMP -3%, XOM -2.6%, COP -2.6%, MUR -2.6%, CVX -2.5%, BP -2.4%.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, ERY, XOP, DIG, BNO, DTO, DBO, DUG, IYE, XES, IEO, CRUD, IEZ, PXE, USL, UWTI, PXJ, FENY, DNO, DWTI, RYE, FXN, SZO, OLO, DDG, OLEM, TWTI
Sep. 15, 2014, 11:58 AM
- North Dakota's daily oil production jumped 5% in July to an all-time high 34.4M barrels (~1.1M bbl/day), state regulators say, although the number was lower than expected as producers worked to meet aggressive flaring-reduction targets.
- Natural gas production hit 1.3B cf/day, also an all-time high, but the percentage of natural gas flared in the state fell to 26% in July from 30% in June.
- In an effort to curb flaring, state regulators issued strict goals earlier this year with key benchmarks for flaring percentages each month; for October, for instance, the state's oil producers cannot flare more than 74% of natural gas produced.
- Bakken producers include CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
Sep. 8, 2014, 6:43 PM
- The energy sector has seen little M&A activity despite a growth shortfall and cheap borrowing rates, but UBS analysts think a focus on incremental returns may lead to less exploration and more deals as resource prices on the market have fallen.
- The firm figures four large-cap E&P companies - Anadarko Petroleum (NYSE:APC), EOG Resources (NYSE:EOG), Marathon Oil (NYSE:MRO) and Pioneer Natural Resources (NYSE:PXD) - could prove tantalizing acquisition targets, but the buyer likely would need very deep pockets.
- In the case of EOG, UBS says the company's strong position in the three biggest tight oil plays - the Eagle Ford, Bakken and Permian - make it a perfect fit for an integrated major looking to expand in those areas.
Aug. 29, 2014, 8:54 AM
- Libya's largest oil port Es Sider is now receiving supplies from oil fields, with Waha Oil Co. supplying 22K bbl/day after oil in storage at the port started to be shipped last week, ending a year-long stoppage.
- Libya's oil production has jumped to more than 600K bbl/day, 4x the level in late May, as the country's oil industry steadily recovers despite fighting between rival militias in the capital of Tripoli.
- Waha Oil is a partnership between Libya's National Oil Co. and U.S. companies Marathon Oil (NYSE:MRO), Hess (NYSE:HES) and ConocoPhillips (NYSE:COP).
Aug. 25, 2014, 7:57 AM
- Libya says normal operations have resumed at the giant Waha oil field, paving the way for a return to exported production later this week, in a report that's in stark contrast with claims by an Islamist militia to have taken over of Tripoli's airport over the weekend.
- Waha, which normally produces 160K bbl/day, supplies crude to the Es Sider terminal, which restarted exports using stored oil last week after a year-long interruption.
- Waha is partly owned by ConocoPhillips (NYSE:COP), Hess (NYSE:HES) and Marathon Oil (NYSE:MRO).
Aug. 11, 2014, 10:59 AM
- Noble Energy (NBL +0.3%) and Australia’s Woodside Petroleum (OTCPK:WOPEF) sign an agreement to explore a deepwater prospect off the coast of Gabon; NBL will be the operator with a 60% working interest.
- NBL says the execution of the production sharing contract represents its initial entry into Gabon and meaningfully expands the company's exploration portfolio.
- Marathon Oil (MRO +0.1%) also signed a production sharing deal with Gabon for a separate offshore deepwater location in which it has a 100% working interest.
Aug. 5, 2014, 4:58 PM
- An industry-funded study concludes that crude oil from the Bakken region is similar to other North American light, sweet crudes and does not pose a greater risk to transport by rail than other crudes and transportation fuels.
- But the study also outlines several best practices intended to boost safety, including classifying the crude higher on the hazardous material shipping scale.
- The group hopes the report allays fears that Bakken oil may be more prone to ignition after a series of accidents involving rail shipments of the oil.
- Bakken producers include CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
Aug. 5, 2014, 10:16 AM
- North Dakota’s crude oil production passed 1M bbl/day in April and remained above the 1M benchmark in May on the strength of production from the Bakken and Three Forks formations.
- One reason for May's 3.6% M/M growth to 1.039M bbl/day was the addition of 227 producing wells through the state, with 10,892 producing wells in May compared to 10,665 in April.
- Average production per well in the state also grew between the months, to 2,959 barrels per well from 2,822 in April.
- North Dakota's oil fields now account for 12% of all U.S. oil production, and more than 1% of global production.
- Top Bakken producers include CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
Aug. 5, 2014, 8:24 AM
- Marathon Oil (NYSE:MRO) +1.8% premarket after reporting better than expected Q2 earnings, driven by strong production growth and higher crude oil and condensate prices in the U.S.
- Production available for sale from continuing operations, excluding Libya, rose 6% Y/Y to 383K boe/day, attributed to continued growth in North American shale production.
- MRO expects the region to produce 235M-248M boe/day in Q3 vs. 200M boe/day in the year-ago quarter.
- Three high-quality Eagle Ford plays averaged net production of 170K boe/day, up 29% Y/Y and on track for greater than 30% Y/Y production growth.
- Income from North American exploration and production rose 37% to $302M on higher sales volume that offset a 16% increase in exploration expenses.
- Recorded 98% average operational availability for Company-operated assets.
Aug. 4, 2014, 11:52 PM
Aug. 3, 2014, 5:35 PM
- ACLS, ACXM, AEIS, AIG, ANV, APL, AREX, BRS, CAR, CHGG, CKEC, CKP, CNQR, CRK, CUTR, DRC, ECOM, ELNK, ENH, EOX, EPAM, GTAT, ININ, IRWD, JMBA, KAMN, KONA, LF, LLNW, LMNS, MCEP, MDR, MRO, MWA, NLS, OGS, OTTR, PHH, PL, PLOW, PXD, QLYS, REGI, ROSE, RP, RTEC, SALE, SNHY, THC, TNET, TNET, TSRA, TXRH, VNO, VNR, VVC, WAGE, Y
Jul. 30, 2014, 6:05 PM
Jul. 14, 2014, 2:21 PM
- Whiting Petroleum's (WLL +7.4%) $6B buyout of Kodiak Oil & Gas (KOG +5.1%) is renewing investor attention on independent energy firms with operations in the Bakken Shale, especially those significantly owned by hedge funds; Paulson & Co. is the single biggest owner of KOG stock, with just under 10% of shares outstanding as of the last filing date.
- While many of the largest Bakken producers are huge companies or parts of huge companies - Hess (NYSE:HES), EOG, Statoil (NYSE:STO), Marathon Oil (NYSE:MRO), XTO Energy (NYSE:XOM) - a few small and mid-cap independent players show hedge fund interest, CNBC's Brian Sullivan writes.
- The single biggest holder of Oasis Petroleum (OAS +0.5%) also is John Paulson's hedge fund, which owns 9.9M shares (~9.8% of shares outstanding), Jana Partners owns 16M-plus shares in QEP Resources (QEP +1.4%), and WPX Energy (WPX +1.1%) has substantial hedge fund ownership.
MRO vs. ETF Alternatives
Marathon Oil Corp is an energy company engaged in the exploration, production and marketing of liquid hydrocarbons and natural gas, production and marketing of products manufactured from natural gas and oil sands mining.
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