Aug. 7, 2014, 11:58 AM
- Technological improvements will allow energy companies to scrape more crude out of the ground and drive U.S. oil production as high as 14M bbl/day, Pioneer Natural Resources (NYSE:PXD) CEO Scott Sheffield says.
- The industry may not discover any more elephant fields, but operators will continue to find new opportunities in conventional plays, the CEO says, noting the industry is pursuing new techniques for boosting the recovery rate at wells up from the 2%-3% common today.
- Only lower oil prices can stop the upward march in U.S. production, Sheffield adds, warning that a price collapse for domestic West Texas Intermediate crude would cause “a tremendous turndown.”
- ETFs: XLE, ERX, VDE, OIH, ERY, XOP, DIG, DUG, IYE, IEO, PXE, PXJ, FENY, RYE, FXN, DDG
Aug. 5, 2014, 2:48 PM
- Pioneer Natural Resources (PXD -5%) is defended by Goldman Sachs analyst Brian Singer, who maintains a Buy rating on the shares and lifts his price target to $266 from $257 after a "noisy" Q2 but with 2015 growth on track.
- While total production beat expectations, oil was lighter as vertical Permian wells that were returned to production at flush rates in Q1 declined in Q2; oil comprised 63% of Permian production vs. 68% in Q1, but the firm views the 67% 2013 average as more normal and expects an oilier mix as horizontal growth rises.
- The firm remains confident in PXD's growth, with H2 ramp-up the first key test; PXD raised its 2014 production growth to 16%-19% from 14%-19% and maintained its three-year compound annual growth rate at 16%-21%, warranting a double-digit multiple.
Aug. 5, 2014, 8:39 AM
- Pioneer Natural Resources (NYSE:PXD) says its first cargo of Eagle Ford condensate was exported in late July following confirmation from the Commerce Department that the ultra-light oil could be exported without a license if processed minimally.
- PXD says its monthly condensate shipments are expected through year-end at prices higher than domestic levels, adding that Asian petrochemical demand for the Eagle Ford shale condensate is growing.
Aug. 4, 2014, 5:15 PM
- Pioneer Natural Resources (NYSE:PXD) agrees to sell its Hugoton and Barnett Shale assets for ~$495M, part of its move to focus on its oil-related Spraberry/Wolfcamp assets in the Permian Basin in west Texas.
- Linn Energy (NASDAQ:LINE) is buying PXD's Hugoton Shale assets for $340M, while an unnamed private company is buying the Barnett Shale assets for ~$155M.
- LINE says its acquisition in the Hugoton Shale would make it the largest producer in the field, as it would acquire ~235K net acres, all held by production, with ~1,200 producing wells; meanwhile, LINE is selling its rights to the Woodford and Meramec horizons in the STACK play on ~26K undeveloped acres in the Anadarko Basin for ~$90M.
- Earlier: Pioneer Natural Resources beats by $0.07, misses on revenue.
Aug. 4, 2014, 4:14 PM| Comment!
Aug. 3, 2014, 5:35 PM
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Jul. 29, 2014, 12:58 PM
- The U.S. reportedly has put on hold two companies’ requests for permission to sell condensate, effectively stalling an industry push for U.S. exports of the expanding glut of oil.
- The delay may give the Commerce Department more time to put together some form of comprehensive public guidance about what kind of oil can or cannot be exported, answering the industry's plea for clarity; sources tell Reuters they think it could occur within weeks.
- The news last month that Pioneer Natural Resources (NYSE:PXD) and Enterprise Product Partners (NYSE:EPD) had been told that putting condensate through an advanced stabilizer was sufficient processing to export it without a license created a storm of confusion and questions.
- ETFs: USO, OIL, UCO, SCO, BNO, DTO, DBO, CRUD, USL, UWTI, DWTI, DNO, SZO, OLO, OLEM
Jul. 9, 2014, 6:30 PM
- A new EIA report underscores the remarkable comeback of the Permian Basin, which boomed in an earlier era, faded and now leads the U.S. in oil production.
- Daily crude oil production in the Permian, which lies under much of west Texas and part of eastern New Mexico, has increased from a low of 850K barrels in 2007 to 1.35M barrels last year.
- The increased production is concentrated in six low-permeability formations: the Spraberry, Wolfcamp, Bone Spring, Glorieta, Yeso, and Delaware.
- Among the top Permian producers: OXY, PXD, APA, KMP, XOM, COG, CVX, EOG, EGN, XEC, FANG.
Jun. 26, 2014, 1:47 AM
- Following yesterday's reports that the ban on U.S. oil exports will begin to narrow, the White house has announced that there has been no change to its policy.
- Pioneer Natural Resources (PXD) and Enterprise Products Partners (EPD) received permission this week to ship condensates to foreign buyers, leading reports to surface about a change to export policy. However, U.S. law allows for refined oil, even minimally refined, to be exported under the name fuel, instead of crude oil.
- ETFs: USO, OIL, UCO, SCO, BNO, DTO, DBO, CRUD, USL, UWTI, DWTI, DNO, SZO, OLO, OLEM, TWTI
Jun. 25, 2014, 7:17 PM
- The decision to allow two Texas companies to export condensates looks like a win for Eagle Ford Shale crude producers at the expense of refiners and companies planning to build processing plants along the Gulf coast.
- Today's selloff in refiners reflected concern that the groups will lose some of their competitive edge if condensate exports become common: Valero Energy (NYSE:VLO), the largest U.S. refiner, dropped 8.3%, PBF tumbled 10.7%, PSX fell 4.2%, and HFC slid 6.7%.
- Oppenheimer notes that PXD, DVN, MRO, COP and MUR produce the most Eagle Ford condensate, and could benefit if U.S. condensate prices close some of the gap with European prices; EOG, the largest Eagle Ford producer, produces little condensate and likely benefits little from the lifting of the condensate ban.
- Investor reaction toward Gulf Coast gathering and processing MLPs such as EPD, MMP, KMP and NGLS was more muted, since plans to build splitters in Texas may be undermined by even modest rule changes in the crude export ban that allow Eagle Ford producers to sell condensate after running it from the wellhead to their own nearby - and much cheaper - distillation towers.
Jun. 25, 2014, 10:18 AM
- Refiners take a beating in early trading, as a lift of the ban on U.S. oil exports is expected to narrow the WTI-Brent spread, which could cause refiners' profits drop if they are forced to pay higher prices to compete with international buyers for U.S. crude.
- “We don’t think the current system needs to be changed,” Valero Energy tells Bloomberg.
- Yesterday's rulings gave Pioneer Natural Resources (PXD +2.6%) and Enterprise Products Partners (EPD +1.4%) permission to ship ultralight oil to foreign buyers - a narrow ruling, but one that is likely to spark similar requests from other companies, and increase lobbying for a full lifting of the 40-year-old ban on exporting crude oil.
- Refining stocks are broadly lower: VLO -7.4%, PBF -5.8%, MPC -5.7%, WNR -5.5%, DK -5.4%, HFC -4.6%, ALDW -4.6%, TSO -3.8%, NTI -3.5%, PSX -2.9%, ALJ -2.7%, CVI -2.3%.
Jun. 24, 2014, 6:20 PM
- Pioneer Natural Resources (PXD) +4.2% AH and Enterprise Products Partners (EPD) +1% after WSJ reports the U.S. government has taken steps to allow the two companies to export condensate that could be turned into jet fuel or diesel.
- Under current rules, companies can export refined fuel, such as gasoline and diesel, but not oil itself; the government's new approach reportedly redefines some ultra-light oil as fuel after it has been minimally processed, making it eligible for sale abroad.
- The first shipments - which could begin as soon as August - likely will be small but ultimately could include much of the 3M bbl/day of oil energy companies are pumping from shale, industry experts say, depending on how regulators define what qualifies for export.
Jun. 17, 2014, 10:56 AM
- Pioneer Natural Resources (PXD -0.7%) is downgraded to Accumulate from Buy on valuation at Global Hunter, but the firm raises its target price to $260 from $220.
- Despite the lower rating, Hunter says it is still "groupies who remain mesmerized" by the potential of PXD's Permian peer group-leading inventory level, core-of-the-core position, and logistical prowess, and is actually increasing its NAV-based price target as confidence in PXD's asset base continues to increase.
- Oppenheimer says PXD shares are expensive but for good reasons, driven by PXD's large acreage position and strong growth potential in the Permian Basin, one of the most attractive resource plays in North America; the firm maintains its Perform rating (Briefing.com).
Jun. 10, 2014, 3:45 PM
- Aubrey McClendon would seem to be overpaying in his $2.5B purchase of 63K acres in the Permian Basin "unless he knows more than we do," Jim Cramer says while acknowledging that McClendon - a "genius" a buying energy-rich land - probably does.
- Some companies have figured out the "code" to drilling in the Permian Basin, and McClendon is unlikely to have overpaid in the long run, Cramer says.
- McClendon's American Energy Partners is not publicly traded, but investors can benefit from the Permian Basin boom by buying stocks such as Pioneer Natural Resources (PXD), EOG Resources (EOG) and Cimarex Energy (XEC), Cramer believes.
May. 29, 2014, 2:56 PM
- Pioneer Natural Resources (PXD +3.9%) powers higher after FBR Capital raises its price target to $275 from $250 to reflect expectations of positive drilling results.
- FBR says its visit with the company added to its comfort with the existing assessment of material NAV and production growth upside for the platform; FBR believes production growth over the next three to five years could be materially higher than guidance and expectations.
- Jim Cramer reminds viewers that PXD owns ~20K potential drilling locations, ensuring it can sustain high production growth rates for years.
May. 6, 2014, 6:59 PM
- Pioneer Natural Resources (PXD) +2.7% AH after posting better than expected Q1 earnings and revenues thanks to continued success at tight-oil fields in Texas.
- Q1 production rose 5% Y/Y to 172K boe/day, primarily driven by successful Spraberry/Wolfcamp and Eagle Ford Shale horizontal drilling programs and the full recovery of weather-related production curtailments during Q4; continues to forecast 2014 production growth of 14%-19% based on $3B planned drilling capex.
- Increased its drilling rig program in the northern Spraberry/Wolfcamp to 16 horizontal rigs from five at year-end 2013; total horizontal wells placed on production in the Spraberry/Wolfcamp and Eagle Ford Shale are expected to increase to 175 in H2 from 125 in H1.
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