Wed, Apr. 8, 7:30 PM
- Analysts say Shell's (RDS.A, RDS.B) move to buy BG Group is telling potential acquirers that one of the biggest players is now confident enough to make a big play, and that the worst may be over in the big slide in oil and gas prices.
- The deal also may be the starting gun for a wave of M&A activity that oil industry observers have been predicting since crude prices started to slump in June.
- For starters, BG's U.S. shale assets likely will become candidates for divestiture after the Shell deal closes; in buying BG, Shell has made the choice to double-down on global liquefied natural gas and de-emphasize U.S. shale.
- Among the biggest players, Exxon (NYSE:XOM) and BP could contemplate deals - perhaps even with each other, as has been speculated, since BP ranks among the cheapest major producers relative to estimated profit.
- BG itself could whet the appetite of XOM's Rex Tillerson, who recently said there was "no limitation" to what he might buy - but he will be especially selective after getting burned by 2010's XTO purchase.
- Companies with prime acreage in oil-rich shale fields in Texas, North Dakota and Colorado have become a lot cheaper in recent months; Anadarko (NYSE:APC), Cabot Oil & Gas (NYSE:COG), Pioneer Natural Resources (NYSE:PXD), Occidental (NYSE:OXY), Continental Resources (NYSE:CLR), Concho Resources (NYSE:CXO) and Tullow Oil (OTCPK:TUWLF) are among those at topping analysts’ lists.
- Galp Energia (OTC:GLPEF) may draw interest from buyers because, like BG, it offers access to oil assets in Brazil.
Fri, Mar. 13, 9:19 AM
- Exxon Mobil (NYSE:XOM) releases a statement suggesting ways the U.S. government should adjust its energy policies, including allowing U.S. exports of oil and natural gas, approving the Keystone XL pipeline, and making the regulatory process less burdensome and more transparent.
- "The energy industry has been an economic engine for the entire nation at a time of recession, slow growth, and falling labor participation rates,” CEO Rex Tillerson says.
- Also, several CEOs of U.S. drilling companies, including ConocoPhillips' (NYSE:COP) Ryan Lance, Marathon Oil's (NYSE:MRO) Lee Tillman, Chesapeake Energy's (NYSE:CHK) Doug Lawler and Occidental Petroleum's (NYSE:OXY) Steve Chazen, reportedly were in D.C. this week trying to persuade White House officials and lawmakers to lift the 40-year ban on U.S. oil exports.
Thu, Mar. 5, 4:55 PM
- Occidental Petroleum (NYSE:OXY) reaches a settlement with indigenous communities that sued it over contamination in Peru's northern Amazon, with the company agreeing to pay an undisclosed sum.
- Five Achuar communities, along with the environmental group Amazon Watch, sued OXY in 2007, alleging oil spills and toxic dumpings in their territory over three decades ending in 2001 caused premature deaths, birth defects and other health problems.
- The settlement was reached in 2013 in Los Angeles federal court but not announced until today.
Mon, Mar. 2, 2:42 PM
- BP's Bob Dudley joins other oil explorers calling for less onerous conditions from Mexico as the country opens its crude and natural gas reserves to outsiders for the first time in 75 years.
- Preliminary terms being offered by Mexico "need to be a little more competitive” in the wake of oil's collapse, the CEO says, echoing sentiments of Occidental Petroleum's (NYSE:OXY) Stephen Chazen that OXY would rather develop U.S. projects than “fool around with some ridiculous contract” in Mexico.
- Alfa (OTCPK:ALFFF), which has a partnership with Pacific Rubiales Energy (OTCPK:PEGFF), said last week that requirements to participate in the fields are "extremely high."
- Production sharing contracts for 14 Mexican shallow water blocks to be auctioned this year include a 60% cost recovery limit and 25% local content in the first year, terms that analysts say may be pricing the country out of the market as would-be investors take a more cautious approach.
Thu, Feb. 12, 7:40 AM
Tue, Feb. 10, 8:24 AM
- Occidental Petroleum (NYSE:OXY) and Abu Dhabi's national oil company agree to team up on a $500M oil exploration project at the Hail and Ghasha offshore fields in the Persian Gulf.
- The agreement covers 3D seismic surveys, drilling of appraisal wells and conducting of engineering studies necessary for field development.
- Abu Dhabi says OXY would have a 30% share in the project that runs through 2017.
- The emirate seeks to boost oil production capacity to 3.5M bbl/day by the end of 2017 from ~3M now; last month, it chose Total as the first partner in a 40-year concession for its largest onshore oil fields.
Tue, Feb. 3, 2:49 PM
- Veteran energy analyst Christopher Eades recommends a half-dozen safe oil majors, oilfield services firms and transport MLPs as the best bets to ride out the current storm - Halliburton (HAL +4%), Pioneer Natural Resources (PXD +2.2%), Hess (HES +3.2%), Occidental Petroleum (OXY +2.1%), Enterprise Products Partners (EPD +1.4%) and Plains All American Pipeline (PAA +2.4%) - all companies with strong balance sheets, strong growth prospects, and healthy yield levels with no dividend cuts on the table.
- Eades says he is "more enthusiastic about MLPs than I've been in some time," as the group has essentially given up two years’ worth of gains yet cash flow fundamentals have been largely unchanged - "to me, that sounds like a good opportunity, particularly in a world still so starved for yield."
Thu, Jan. 29, 6:58 PM
- Occidental Petroleum (NYSE:OXY) CEO Stephen Chazen quipped during today's earnings conference call that Chevron (NYSE:CVX) was too poor to buy his company, but the offhand remark may have given a boost to OXY's stock, Reuters reports.
- With oil prices sharply lower and profits slipping, an M&A wave could be ahead, and when Chazen was asked if OXY was for sale, the CEO casually mentioned that he had "looked at Chevron and they don't have any free cash."
- An OXY spokesperson said the comments were in jest, but OXY shares, which had been falling, reversed course and finished up 2.3%, well ahead of most energy stocks.
- The remarks more likely were the result of a history of strained relations between the companies, and most energy stocks climbed off early lows as crude oil prices recovered.
- Earlier: Occidental Petro racks up big writedowns on lower oil prices
Thu, Jan. 29, 8:49 AM
- Occidental Petroleum (NYSE:OXY) -0.5% premarket after posting an unadjusted Q4 earnings loss, thanks to net writedowns totaling ~$4B as a result of the slump in oil prices.
- OXY says it is planning a 2015 capital spending budget of $5.8B, down by a third from 2014 levels, as the company says it is focused on cutting costs, which includes renegotiating supplier contracts.
- OXY plans to focus on core assets in the Permian Basin and parts of the Middle East, and is minimizing development activities in the Williston Basin, domestic gas properties, Bahrain, and the Joslyn oil sands project.
- OXY also reports year-end 2014 preliminary worldwide proved reserves of 2.82B boe, up 3% Y/Y; preliminary domestic proved reserves totaled 1.78B boe, up 6.5% Y/Y.
Thu, Jan. 29, 7:12 AM| Comment!
Wed, Jan. 28, 5:30 PM
- ABT, AIT, ALLY, ALV, ALXN, APD, BABA, BAX, BC, BEAV, BMS, BX, CAH, CAM, CELG, CHKP, CL, CLFD, CMS, COH, COP, CRR, CSH, DGX, DHX, DOW, DST, EMC, EPD, F, GLOP, HAE, HAR, HGG, HOG, HP, HSY, HUB.B, ITG, IVZ, JBLU, KELYA, KEM, KMT, LLL, LRN, LSTR, MD, MJN, MMYT, MTH, NDAQ, NOC, NOK, NYCB, OSTK, OXY, PENN, PHM, POT, PSX, PSXP, RCI, RCL, RDS.A, RGLD, RGS, RTN, RYL, SHW, SILC, SWK, SXC, TCB, TDY, TKR, TMO, TWC, UBSI, VIAB, VLO, VLY, VRTS, WCC, WILN, WRLD, XEL, ZMH
Mon, Jan. 26, 12:58 PM
- ConocoPhillips (NYSE:COP) headlines BofA Merrill's list of five favorite large-cap energy stocks, after recently raising the stock to a Buy rating as the company has somewhat dampened earnings and growth expectations for a time even though it is cash rich.
- Occidental Petroleum (NYSE:OXY) faces the oil price correction with the strongest balance sheet in the sector, the firm says, with net cash at year-end 2014 estimated at $1.7B and a whopping $11/share of cash available for buybacks.
- Chatter about takeover speculation has resumed around Hess (NYSE:HES); with a market cap falling to just north of $21B, Merrill says the company could fall prey to larger integrated as a quick bolt-on acquisition to boost growth.
- Also recommended: XOM, PXD
Sat, Jan. 24, 8:25 AM
- In a low-yield world, the newly launched iBillionaire High Dividend Index - which tracks the trading moves of 25 investing-savvy billionaire investors such as Stanley Druckenmiller, James Dinan and Nelson Peltz - actually lives up to its name with a dividend yield of 5.34%.
- At 24%, the index has a high allocation of energy shares, including OXY, TRP, CNP, COP, BP, ATLS, CVI, WMB, APL, RIG and ARP.
- Also worth noting is that the index contains some high-yielding mortgage REITs, an area most investors hate right now but where billionaires seem to find value; examples are NRF, AGNC and CIM.
- No mutual fund or ETF tracks this index, but it offers a fishing pond of income investment ideas to research further.
- The top 20 holdings: TLM, CVC, GM, TIME, AEE, D, STAY, KMI, TROX, EXC, STNG, PPL, IRM, PFE, KKR, KAR, F, MIC, LO, ABBV.
Wed, Jan. 7, 12:39 PM
- BofA Merrill recommends that clients stay defensive on oil stocks and become more positive on natural gas names, highlighting four natural gas stocks and two oil stocks to consider.
- Range Resources (NYSE:RRC) is called a top stock to buy for possible gains in natural gas after shares have slumped 40% since July, especially with the possibility of continued harsh winter weather; the firm also likes Southwestern Energy (NYSE:SWN), Devon Energy (NYSE:DVN) and Memorial Resource Development (NASDAQ:MRD).
- Occidental Petroleum (NYSE:OXY) and Hess (NYSE:HES) are BofA's top oil stocks to buy, and are on the firm's US1 list.
Mon, Jan. 5, 12:18 PM
- Energy stocks severely underperform the broader market, with the sector -4.2% vs. the S&P 500's -1.4%, as U.S. oil prices briefly slip below $50/bbl for the first time since April 2009; Nymex crude recently was -4.4% at $50.37, while Brent crude -5.9% at $53.08.
- Among the day's biggest losers: DNR -9%, RIG -7.6%, NBR -4.8%, CHK -5.9%, SDRL -9.1%, SD -12.3%, NOV -5.9%, PSX -6.2%, APA -5.9%, DVN -4.4%, EOG -6%, SU -5.2%, OXY -4.2%, APC -8.7%, PWE -9%, ECA -5.5%, MRO -5.3%.
- Global oil majors, which have been seen as less vulnerable to falling oil prices, are posting big losses: XOM -2.7%, COP -4.5%, CVX -3.8%, BP -5.8%, RDS.A -4.6%, TOT -6.5%.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, XOP, ERY, FCG, DIG, PBW, BNO, GASL, DTO, DBO, DUG, IYE, XES, IEO, QCLN, IEZ, UWTI, PXE, USL, PXI, FENY, DWTI, PXJ, DNO, PSCE, RYE, SZO, PUW, FXN, OLO, DDG, HECO, TWTI, OLEM
Dec. 22, 2014, 3:39 PM
- Occidental Petroleum (OXY -0.6%) is in talks to acquire closely held shale explorer Three Rivers Operating Co. II at a price below $20K/acre, Bloomberg reports.
- A purchase of Three Rivers' owned rights to 82K acres in the Permian Basin would cement OXY’s dominance in the area that is the most prolific U.S. crude region, and would be the company’s first significant acquisition in more than four years.
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