Fri, Mar. 27, 12:49 PM
- Trade unions Unite and GMB say members working in the U.K. North Sea are showing overwhelming support for industrial action over proposed changes to their terms and conditions, voting 93.5% in favor of proceeding to a strike ballot and increasing the likelihood of North Sea strike action for the first time in a generation.
- It is not yet clear how many workers any eventual strike action would involve, but the unions still must cobble together an electoral register that is robust enough to withstand any potential legal challenges, a process which could take some time.
- Companies are broadly cutting headcount in their North Sea operations to trim costs, with hundreds of job losses announced at Shell (RDS.A, RDS.B), BP, Talisman (NYSE:TLM), Chevron (NYSE:CVX) and ConocoPhillips (NYSE:COP) since oil prices plunged in 2014.
Wed, Mar. 18, 7:44 AM
- Talisman Energy (NYSE:TLM) says it is terminating 10%-15% of its employees and contractors, or 150-200 of 1,300 Calgary head office jobs that support its global operations, as it scales back its budget by 30% this year to contend with collapsing crude oil prices.
- TLM says the cuts are not related to Repsol's (OTCQX:REPYY, OTCPK:REPYF) $8.3B takeover of the company, which is expected to close by mid-year.
- TLM follows Cnooc’s Nexen Energy subsidiary and Athabasca Oil in announcing job cuts in Canada’s oil patch on Tuesday.
Wed, Feb. 18, 4:37 PM
- Talisman Energy (NYSE:TLM) says its shareholders voted overwhelmingly to approve the takeover of the company by Repsol (OTCPK:REPYF, OTCQX:REPYY).
- TLM expects the deal, which still requires court and regulatory approvals, to close during Q2.
- Repsol expects the acquisition to boost its oil production by 76% to 680K bbl/day while its reserves would increase 55%.
Thu, Feb. 12, 11:33 AM
- Pennsylvania Gov. Tom Wolf is proposing a new 5% severance tax on natural gas extraction in the state, saying the measure could generate $1B or more.
- The measure could face some pushback in the state's Republican-controlled legislature, but some kind of fracking tax could pass, as lawmakers from both parties already have proposed taxes from 3.2% to 8%.
- Like other major natural gas producing states, Pennsylvania already has a severance tax on the value of the gas extracted at the wellhead.
- Top Marcellus Shale producers include CHK, RRC, RDS.A, RDS.B, TLM, APC, ATLS, COG, CVX, CNX, EQT, EOG, XOM, WPX, XCO, CRZO, SWN, AR.
Tue, Feb. 10, 8:44 AM
- Talisman Energy (NYSE:TLM) reported a wider Q4 loss after it wrote down the value of some assets by ~$1.37B to reflect slumping crude oil prices.
- TLM says it wrote down the value of its Eagle Ford assets in Texas by $614M, fully impaired an investment in the Kurdistan region of Iraq by $234M, and took charges related to assets in the North Sea and in the Equion field in Colombia; it also recorded a $996M loss on joint ventures such as Talisman Sinopec Energy UK, which operates oil and gas fields in the North Sea.
- In North America, TLM's total production and production from ongoing operations averaged 173K boe/day for Q4, up 5% Y/Y due to increased volumes from Canada and Eagle Ford.
- TLM says it still expects the takeover by Repsol (OTCQX:REPYY, OTCPK:REPYF) to happen in Q2.
Tue, Feb. 10, 6:02 AM
Mon, Feb. 9, 5:30 PM
Tue, Feb. 3, 7:59 AM
- Cnooc (NYSE:CEO) says it plans to cut capital spending by 26%-35% in 2015 compared with a year earlier, as China’s biggest energy companies tighten their belts amid plunging oil prices.
- Cnooc says that despite the capex cuts, it would still meet oil production growth targets through “cost control and efficiency enhancement,” forecasting output of 475M-495M boe in 2015, up from ~432M boe last year.
- Cnooc could be facing writedowns of more than $5B related to its 2013 acquisition of Canada’s Nexen, according to J.P. Morgan.
- Larger rival China National Petroleum (NYSE:PTR) is pledging “revolutionary measures” to cut costs, and a joint venture between Sinopec (NYSE:SNP) and Canada’s Talisman Energy (NYSE:TLM) is laying off several hundred staff and contractors in the U.K.
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.
Dec. 19, 2014, 10:37 AM
- Even some of Wall Street's big boys are taking a beating in the oil sector: Carl Icahn’s holdings of Talisman Energy (NYSE:TLM) have tumbled $230M since late August, and John Paulson’s firm had one of its largest losses of the year on a bet that big oil companies would buy smaller ones.
- Before TLM agreed to be bought by Repsol, which boosted TLM shares, Icahn's losses stood at more than $540M as recently as Dec. 11, and he still will have lost ~$290M at the deal price; Icahn also holds stakes in hard-hit Chesapeake Energy (NYSE:CHK) and Transocean (NYSE:RIG).
- Paulson was the biggest shareholder in Whiting Petroleum (NYSE:WLL) and Oasis Petroleum (NYSE:OAS) at the end of Q3, but his strategy could yet pay off, as many analysts expect consolidation in the energy sector as lower oil prices pressure smaller firms.
- Also caught flat-footed by the oil price pullback was Prosperity Capital’s Mattias Westman, a longtime investor in Russia whose firm has lost more than $1B this year, in part on stakes in Russian energy companies Gazprom (OTCPK:OGZPY) and Lukoil (OTCPK:LUKOY, OTC:LUKOF).
Dec. 17, 2014, 2:20 PM
- New York Gov. Cuomo's administration says it will ban fracking statewide, citing health concerns and what it considers as limited economic benefits to drilling.
- NY's acting health commissioner said at a cabinet meeting in Albany today that studies on fracking’s effects on water, air and soil are inconsistent, incomplete and raise too many “red flags” for the state to allow it; the state Department of Environmental Conservation will now issue a legally-binding recommendation prohibiting fracking.
- The state has had a de facto moratorium on fracking for more than six years, so nothing really changes with today's decision.
- Parts of New York sit atop the gas-rich Marcellus shale formation, whose top producers include CHK, RRC, RDS.A, RDS.B, TLM, APC, ATLS, COG, CVX, CNX, EQT, EOG, XOM, WPX, XCO, CRZO, SWN, AR.
Dec. 16, 2014, 12:47 PM
Dec. 16, 2014, 10:24 AM
- Talisman Energy (TLM +47.2%) explodes higher at the open after Repsol's (OTCQX:REPYY -2.3%) $13B deal to buy the company, but investors in the Spanish company aren't so enamored, sending shares lower.
- The purchase price of $8/share reflects a 75% premium to the seven-day volume weighted average share price - a hefty price that analysts say could force Repsol to consider a sale of its 30% stake in Gas Natural; Repsol chairman Antonio Brufau says his company is not considering such a sale.
- Barclays believes Repsol is getting a business that is free cash flow negative with a problematic North Sea business of questionable value, and that it should have waited longer for what could be a prolonged oil price downturn to make an acquisition.
- But considering that TLM's share price topped $11 last June before plunging to ~$4 last week, 24/7's Paul Ausick says Repsol got a bargain; TLM’s main assets are high quality - in the Marcellus shale play in Pennsylvania and the Eagle Ford shale play in south Texas, as well as off the coasts of Indonesia and Malaysia - and the two companies' combined production capacity will total ~680K boe/day with refining capacity of ~1M bbl/day, vaulting it into the ranks of the 20 largest oil companies in the world.
Dec. 16, 2014, 9:10 AM
Dec. 16, 2014, 2:44 AM
- Talisman Energy (NYSE:TLM) has confirmed that Repsol (OTCQX:REPYY, OTCPK:REPYF) plans to purchase it for $8.3B, or $8 per share in cash.
- Repsol said it would also take on $4.7B of Talisman debt as part of the deal, putting TLM's enterprise value at $13B.
- Talisman Energy's board has approved the offer and recommends that shareholders accept it.
- TLM +20% After hours
Dec. 15, 2014, 12:52 PM
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