Tue, Mar. 17, 7:40 PM
- Crude oil production at three major U.S. shale oil fields - the Eagle Ford in south Texas, the Bakken in North Dakota, and the Niobrara in Colorado and adjacent states - is projected to fall this month for the first time in six years, the Energy Information Administration says.
- Net production from the three fields is expected to drop by a combined 24K bbl/day, but overall losses likely will be masked by production gains in the Permian Basin in west Texas and other regions.
- It is one of the first signs that idling hundreds of drilling rigs and billions of dollars in corporate cutbacks are starting to affect the U.S. oil patch, but it also shows that drilling technology and techniques have advanced to the point that productivity gains may be negligible in some shale plays.
- Top Eagle Ford producers: EOG, BHP, COP, CHK, MRO, APC
- Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
- Top Niobrara producers: NBL, APC, ECA, CHK, EOG, WPX
Tue, Mar. 17, 7:12 PM
- Most of the top 15 shale oil producers in the U.S. are heavily concentrated in basins expected by NavPort to be severely affected by the decline in prices, with one major exception: ConocoPhillips (NYSE:COP).
- COP has the lowest well completion concentration in basins expected to suffer the greatest production cuts this year, implying less disruption than other shale competitors, according to NavPort, which collates oil well and rig data using regulatory reports.
- All 14 of the other top producers tracked by NavPort have at least two-thirds of well completion concentrated in the basins rated with "strong" or "severe" exposure: CHK, APC, EOG, DVN, SWN, MRO, APA, SD, XOM, CLR, PXD, NBL, BHP, WLL.
- Operators concentrated in basins that have been less severely affected - such as the Woodford, Utica and Haynesville basins - should enjoy more production than their peers through a higher volume of well completions, NavPort says.
- The study sees the Mississippi Lime, Granite Wash, Bakken and Permian basins suffering at least a 40% Y/Y reduction in drilling.
Tue, Mar. 17, 2:28 PM
- The positives clearly outweigh the negatives for E&P stocks such as EOG Resources (NYSE:EOG), Anadarko Petroleum (NYSE:APC) and Noble Energy (NYSE:NBL), J.P. Morgan's Joseph Allman says of his three preferred stocks in the sector.
- Allman is "slightly bullish" on the group because of an improving oil market improving, low oil prices with futures in contango, declining service costs, improved wells with new completion designs, and room for improved sentiment as investors remain tentative.
- The best companies - with high quality assets that give investors the most leverage to the best parts of the best plays, plus strong balance sheets and operating and/or financial catalysts - can still perform very well in this market, Allman writes.
Tue, Mar. 17, 9:56 AM
- Noble Energy (NBL -0.1%) is expected to declare its Aphrodite natural gas reserve off Cyprus commercially viable within weeks, paving the way for exports, the country's energy minister says.
- The move would be an important milestone for Cyprus, which required an international bailout in 2013 and is now looking at an economic turnaround based partly on offshore reserves.
- NBL is the only company licensed by Cyprus to have made a discovery, with an estimated 4.54T cf in its Aphrodite field.
Wed, Mar. 11, 7:49 AM
- The Palestine Power Generation Company cancels a $1.2B gas supply deal with the Noble Energy-led (NYSE:NBL) Leviathan project in the wake of NBL’s decision to put the project on hold after Israel’s anti-monopoly regulator pressed for the breakup of the venture.
- A year ago, PPGC signed a 20-year deal to buy up to 4.75B cm of natural gas once Leviathan starts production later in the decade.
- Israel's anti-trust regulator has said NBL and its partners - including Delek Drilling (OTC:DKDRF) and Avner Oil (OTCPK:AVOGF) - have too much control over Israel's natural gas reserves and should be forced to sell some of their assets.
Sat, Mar. 7, 8:25 AM
- With U.S. oil steadying at ~$50/bbl in recent weeks, investors are beginning to believe crude prices have found a bottom, and public money is starting to flow back to North American oil producers.
- Investors have pumped $7.75B YTD into 16 separate stock market equity fund-raises - the biggest surge in at least seven years, and more equity than oil producers issued in all of 2009.
- "There was a two to three month window when capital markets were closed because everyone was nervous," but now things are turning around, says Tudor Pickering's Michael Rowe.
- In just the past two weeks, PAA, ECA, NBL, OAS, NFX, GDP, CXO, LPI, AR and TEP have stepped up with equity fund-raises.
- ETFs: XLE, ERX, VDE, OIH, XOP, ERY, DIG, DUG, IYE, XES, IEO, IEZ, PXE, FENY, PXJ, RYE, FXN, DDG
Wed, Feb. 25, 4:42 PM| 1 Comment
Tue, Feb. 24, 12:43 PM
- Israel's competition regulator has delayed a decision on whether to declare the country's natural gas fields a monopoly for two months to allow time for an agreed solution to be reached.
- Noble Energy (NBL +1.7%) and Israel's Delek Group (OTCPK:DGRLY) own 85% of the Leviathan gas field off the Mediterranean coast, and also control the nearby Tamar well, a situation Israel's antitrust commissioner said in December created a monopoly.
- Leviathan is one of the world's largest offshore gas finds to be made in the last decade, with an estimated 22T cf of reserves; production had been expected to begin in 2018 following an initial development investment of ~$6.5B.
Thu, Feb. 19, 3:40 PM
- Noble Energy (NBL -2.1%) says its disputes with Israel’s antitrust regulators has forced it to stall virtually all of its investments this year in two massive offshore natural gas fields in the Mediterranean Sea.
- In today's earnings call, CEO David Stover called Israel's antitrust decision an example of the uncertain regulatory environment in the country and said the two sides must come to an agreement before NBL could invest significantly in Israel’s energy sector.
- The two offshore gas fields, the Leviathan and the Tamar, hold the vast majority of Israel’s gas reserves, with more than enough to feed domestic demand, bring down electricity costs in the nation and have more gas for exports; NBL and Delek Group (OTCPK:DGRLY) own the majority of both fields.
- Stover said NBL had signed a letter of intent with a customer in Egypt to supply up to 250M cf/day of gas from Tamar, but it has not booked any of the sales because of the impasse with Israel’s government.
Thu, Feb. 19, 8:26 AM
- Noble Energy (NYSE:NBL) plans a 40% reduction in capital spending for 2015 to $2.9B, in the latest example of an energy company that has slashed its spending plans in the wake of sharply lower oil prices.
- At the same time, NBL forecasts total 2015 sales volumes of 295K-315K boe, representing 5% growth at the midpoint of the range, after adjusting for assets divested in 2014.
- The capital program comprises 60% toward core U.S. onshore assets, 35% for global offshore development activities and 5% for global offshore exploration.
- In NBL's Q4 earnings results, the sharp drop in oil prices cut into revenue and offset higher sales volumes; estimated reserves at year-end 2014 were 1.4B boe.
Thu, Feb. 19, 7:31 AM
Wed, Feb. 18, 5:30 PM| 7 Comments
Tue, Feb. 17, 8:39 AM
- Noble Energy (NYSE:NBL) agrees to supply Egypt with seven liquefied natural gas cargoes under a two-year deal that begins in April.
- Once a gas exporter, Egypt is undergoing its worst energy crisis in decades, with rising consumption and declining production turning it into an energy importer.
- Egypt recently signed a deal with Algeria's state-owned Sonatrach to import six LNG shipments during 2015, and expects to complete an agreement with Russia’s Gazprom to import another seven LNG shipments.
Fri, Feb. 13, 6:22 PM
- Deutsche Bank analysts think Noble Energy (NYSE:NBL) might be able to reach an agreement with Israel about offshore drilling before that country’s elections in March, which could raise shares as high as $56.
- The firm says its discussions with colleagues in country point to an apparent desire to find a compromise ahead of the Israeli elections; if correct, this would be the first good news in some time for NBL stock and could help improve sentiment, particularly around the longer term secular growth story of NBL's unique asset.
Tue, Feb. 10, 6:47 PM
- Figuring the debt markets are a bit more rational than the equity markets right now, Wunderlich analysts look to the bond market for some clues about energy investing.
- The firm finds that where Chesapeake Energy's (NYSE:CHK) debt is trading now as "quite refreshing" given the strong balance sheet the company has built, strengthening its conviction that CHK is a Best idea among oil stocks; others holding up well, it says, are financially strong names such as XEC, CXO, EGN, EOG, GPOR, MTZ, NBL, PTEN, PDCE, PXD and ROSE.
- In other cases, the debt is providing “equity-like returns” for investors who want to move out of stocks and into bonds, with the firm mentioning AREX, BBG, CWEI and NOG.
Tue, Feb. 3, 8:59 AM
- Israel's energy minister reiterates that natural gas companies operating offshore will need to sell some of their reserves to avoid being deemed a monopoly, reinforcing a stance against control of the assets by Noble Energy (NYSE:NBL) and Delek Group (OTCPK:DGRLY).
- The comments were the most explicit since Israel's antitrust authority said in December the U.S.-Israeli partners who discovered two large natural gas fields in the eastern Mediterranean may constitute a monopoly.
- The minister says the government is working to find a balance between increasing competition and making it worthwhile for companies to ensure the offshore Tamar and Leviathan fields are developed.
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