Tue, Apr. 28, 5:11 AM
Mon, Apr. 27, 5:13 PM
- Select energy E&P stocks are ready to be bought on weakness following the recent rally in the space, Cowen says as it names Anadarko Petroleum (NYSE:APC), Pioneer Natural Resources (NYSE:PXD) and Range Resources (NYSE:RRC) its top picks; the three are started at Outperform with respective price targets of $72, $216 and $73.
- Cowen says its top picks have low-cost assets and high quality balance sheets that will allow them to emerge from the oil price downturn with higher margins.
- Devon Energy (NYSE:DVN), Noble Energy (NYSE:NBL) and Cimarex Energy (NYSE:XEC) also are initiated with Outperform rating, while Apache (NYSE:APA) and Continental Resources (NYSE:CLR) are started at Market Perform.
Wed, Apr. 22, 6:53 PM
- Nomura came out bullish today on the energy E&P sector - issuing Buy ratings for MRO, PXD, EOG, CLR, APC, NFX, RRC, CNQ, CXO, ECA and SU - even as the firm does not foresee a V-shaped rebound in crude oil prices.
- Nomura believes core North American shale plays do not represent the economic marginal cost of supply in the world, which runs counter to commonly held views that largely see shale occupying the high end of the cost curve; thus as oil rebounds, so will investment in the shales, which should support prices, the firm says.
- In such an environment, Nomura says selecting stocks will depend on factors such as ”the reinvestment opportunity set, impact of oilfield technology, continued efficiencies, potential new geologic plays, management acumen and balance sheet strength."
- The firm is Neutral on DVN, HES, MUR, OAS, UPL, WLL, XEC, COG, COP and SWN; it rates NBL, APA, DNR, CHK and CVE as Reduce.
Wed, Apr. 22, 10:58 AM
- Noble Energy (NBL +0.6%) agrees to a package of upgrades, environmental projects and penalties totaling ~$73M in response to alleged clean air violations involving its operations in the Denver-Julesburg Basin in Colorado.
- The EPA says an investigation found significant emissions were coming from storage tanks used in NBL's operations in the basin, largely due to undersized vapor control systems.
- NBL says the total cost to the company of complying with settlement terms "cannot yet be quantified but are not expected to be material for our operations in the DJ Basin."
Tue, Apr. 14, 12:45 PM
- Noble Energy (NBL +1.8%) doubles down on its commitment to the Falkland Islands east of Argentina, acquiring a 75% interest in a license that covers nearly 285K acres and includes the Rhea prospect, which could contain more than 250M boe, with plans to start drilling there this year despite opposition from Argentina’s government.
- NBL will be the operator, while Italian company Edison acquired the remaining 25%; financial details are not revealed, but the two companies will pay a 5% royalty to an oil and gas exploration company based in the Falklands on any future production in the block.
Tue, Apr. 7, 6:57 PM
- Noble Energy (NYSE:NBL) says it is cutting 220 jobs across the U.S., with ~100 of the losses at its Houston headquarters and another 100 or so coming from its Colorado operations; the cuts represent ~10% of the company's 2,200 U.S. employees.
- NBL also says the Denver-Julesburg Basin continues to be its largest onshore operation, and will now serves as the base for all of the company’s onshore operations.
- NBL said earlier this year that it was planning to trim spending by 40%, with most of the cuts targeting projects in U.S. shale plays and the Gulf of Mexico.
Thu, Apr. 2, 5:38 PM
Fri, Mar. 27, 10:57 AM
- Royal Dutch Shell (RDS.A, RDS.B) is among oil companies that are scaling back investments in China amid falling prices and expensive and geologically risky projects, WSJ reports.
- Shell isn't alone: In the past year, Anadarko (NYSE:APC) and Noble Energy (NYSE:NBL) have completed deals to sell operations in China, Hess (NYSE:HES) says it is quitting a shale exploration deal with PetroChina, and BP has withdrawn from three exploratory blocks in the South China Sea.
- "These companies thought $100 oil was going to stay," says the regional head of Asia-Pacific oil and gas research at Nomura. "They have to prioritize the projects based on returns, and the projects in China tend to be lower return, other things being equal, simply because of higher costs."
Wed, Mar. 18, 3:43 PM
- Stifel analysts say oil prices could be headed even lower, but that investors should buy high quality E&P companies with strong assets and/or balance sheets before prices bottom.
- Stifel says the current cycle resembles previous patterns where large-cap E&P stocks lead the oil price, which in turn leads the rig count, thus the firm does not expect shares of the strong companies to track an oil price bottom; small-cap energy stocks, however, followed oil prices closely through the last cycle and even lagged the commodity’s recovery.
- The firm is favorably disposed to Anadarko Petroleum (APC +2.4%), Cabot Oil & Gas (COG +1%), EOG Resources (EOG +4.2%), Noble Energy (NBL +5.3%), Rosetta Resources (ROSE +5.3%) and Whiting Petroleum (WLL +8.6%).
Wed, Mar. 18, 6:50 AM
- Dolphinus Holdings has signed a seven-year deal to buy an estimated $1.2B of natural gas from Israel's Tamar field.
- The agreement calls for a minimum of 5B cubic meters of gas to be sold in the first three years, the Tamar partners (Noble Energy (NYSE:NBL), Avner Oil (OTCPK:AVOGF) and Delek Drilling (OTC:DKDRF)) said.
- The gas will be exported through an underwater pipeline run by the East Mediterranean Gas company.
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
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