Aug. 26, 2014, 5:09 PM| 2 Comments
Aug. 25, 2014, 2:01 PM
- Sales growth by the key candy, mints, and gum category grew 2.6% last year, according to data from Nielsen.
- The category is a margin-booster for most retail chains.
- Convenience stores (OTCPK:ANCUF, PTRY, MPC, KR, XOM) saw the most CMG growth at 3.3% to $5.48B - followed by food stores at 2.6%, mass market retailers at 1.5%, and drugstores at 0.5%.
Aug. 22, 2014, 7:23 AM
- OMV (OTC:OMVJF) is now the latest energy group to withdraw its staff from Iraqi Kurdistan, as violence continues to escalate in the region.
- "We were able to book a gas find in Kurdistan but are not active at the moment. All the staff that were there have left," says CEO Gerhard Roiss. "We are also waiting and seeing (what happens) south of Crimea, where we had plans together with Exxon (NYSE:XOM)."
Aug. 18, 2014, 3:25 PM
- Valero Energy (VLO +2.3%) has dropped 3% during the past three months and has underperformed its closest peers Marathon Petroleum (MPC +1.6%) and Phillips 66 (PSX +2.1%), but Morgan Stanley’s Evan Calio and Manav Gupta think it’s time for a turnaround.
- While MPC, PSX and Exxon Mobil (XOM +0.2%) have major planned turnaround scheduled for Q4, VLO will be operating at a meaningfully higher utilization rate and is best positioned to capture any widening Gulf Coast differentials resulting from high turnaround activity, the analysts say.
- In addition to VLO's Q4 earnings revision upside, the firm estimate VLO has $800M in MLP-able EBITDA, including organic growth projects, which can be dropped into Valero Energy Partners (VLP +0.7%) in the foreseeable future.
Aug. 15, 2014, 12:35 PM
- ConocoPhillips (NYSE:COP) and Royal Dutch Shell (RDS.A, RDS.B) are among global oil companies needing crude prices in excess of $150/bbl to turn a profit from Canada’s oil sands, according to a study from a London-based environmental advocacy group.
- The projects most at-risk from lower prices are COP's Foster Creek and Shell’s Carmon Creek oil sands developments in Alberta that respectively need $159/bbl and $157/bbl oil to be profitable, Carbon Tracker says.
- The joint COP-Total (NYSE:TOT) Surmont oil sands project requires $156/bbl, while Exxon Mobil's (NYSE:XOM) Aspen and Kearl developments in the same part of Canada need $147 and $134 crude, respectively, to make economic sense, the study finds.
Aug. 14, 2014, 7:15 PM
- The U.S. Energy Department has finalized its plan to revamp the process for approving liquefied natural gas exports, largely codifying a process first proposed in May.
- Beginning immediately, the DoE will only issue final rulings on whether exports are in the public interest after the FERC has completed an environmental review of the project.
- The benefits of the change extend unevenly to the dozens of companies now vying to export U.S. natural gas, and some in the industry say the new process will exacerbate permitting delays for most companies.
- The biggest winner under the new approach is Cheniere Energy (NYSEMKT:LNG), which already had gained FERC approval but faced a nearly two-year wait for the required Energy Department review of its proposed Sabine Pass expansion; it now moves to the front of the line to get a permit from the DoE.
- Another winner is Exxon's (NYSE:XOM) Golden Pass project in southeast Texas, which also was far down the Energy Department’s list, even though it was well into the FERC review.
- The new policy will not affect companies that already have received conditional approvals, such as Dominion's (NYSE:D) Cove Point project, Sempra's (NYSE:SRE) Cameron LNG project and Leucadia National's (NYSE:LUK) Oregon LNG project.
Aug. 14, 2014, 1:01 PM
- The dollar store group (DLTR, FDO, DG, BIG) and select grocery store chains (KR, SWY, SVU) are slight out-performers on the day after Wal-Mart's (WMT +0.1%) Q2 report indicates it lost some market share in the U.S.
- Edward D. Jones analyst Brian Yarborough attributes the limp sales growth for Wal-Mart in the U.S. to the retailer's inability to nab the quick "milk and bread" runs by consumers due to the massive size of its stores.
- That line of thought is consistent with the stronger growth numbers put up lately by convenience store operators such as Circle K (OTCPK:ANCUF), 7-11, Pantry (NASDAQ:PTRY), BP Connect (NYSE:BP), On the Run (NYSE:XOM), Speedway America (NYSE:MPC), Kwik Shop (NYSE:KR), and Qwiktrip.
Aug. 14, 2014, 7:45 AM
- Exxon Mobil (NYSE:XOM) and Total (NYSE:TOT) are ending their exploration plans in South Sudan, as a civil war in the country enters its eighth month.
- XOM is not renewing an agreement to negotiate for joint exploration over parts of a 120K sq. km concession in the country; TOT says it is still bidding to explore in partnership with Kuwait Foreign Exploration Petroleum Co.
- Crude oil output, South Sudan’s almost sole source of revenue, has fallen by at least a third to ~160K bbl/day since conflict erupted in December.
Aug. 11, 2014, 9:45 AM
- Vladimir Putin lauded Russia's "old and reliable partner" Exxon Mobil (NYSE:XOM) this weekend in a ceremony launching the start of drilling the country's northernmost oil well.
- Putin, XOM Russian chief Glenn Waller and Rosneft (OTC:RNFTF) CEO Igor Sechin, undeterred by the crisis in U.S.-Russian relations, together welcomed the start of the Arctic well in the first step in a quest for new energy resources to help maintain oil production near a post-Soviet high of more than 10M bbl/day.
- Universitetskaya is the first of as many as 40 offshore wells Rosneft plans by 2018 to test the potential of the unexplored Arctic Ocean.
Aug. 8, 2014, 12:39 PM
- Seadrill (SDRL +1.7%) says it won a two-year $497M contract from Exxon Mobil (XOM +0.2%) for employment of one of its newbuild ultra-deepwater drillships.
- The deal is for work in Nigeria, in support of the ERHA North Phase 2 project.
- The rig, under construction by Samsung Heavy Industries, will be delivered in September.
Aug. 8, 2014, 7:43 AM
- Exxon Mobil (NYSE:XOM) and Russian partner Rosneft (OTC:RNFTF) will start exploration drilling in Russia’s Kara Sea tomorrow, undeterred by deteriorating relations between the U.S. and Russia.
- The companies will drill using the West Alpha rig and continue working at least through October, according to a statement from Pres. Putin; drilling will take ~70 days, which should be sufficient to assess the reserves of any discovery, Rosneft says.
- The latest round of sanctions against Russia, restricting the export of equipment used for offshore oil production, does not impact XOM’s plans because the contract to hire the rig was signed before the measures were announced.
Aug. 7, 2014, 2:28 PM
- Chevron (CVX -0.2%) says it is reducing overseas staff working in the Kurdish region of Iraq as Islamic State militants push their offensive closer to the area.
- Unconfirmed reports say Exxon Mobil (XOM -0.8%) also is evacuating staff from Kurdistan.
- The capture of Qara Qosh, east of Mosul, brings the militants within 40 miles of the province of Erbil, where the capital of the Kurdistan Regional Government is located.
- Brent crude prices rose above $105/bbl today on the reports, as well as a decline in U.S. oil inventories; West Texas crude moves past $97.
- Earlier: Kurdistan oil producers plunge as Islamic militants advance on the region.
Aug. 5, 2014, 7:17 PM
- Natural gas production in the Marcellus region exceeded 15B cf/day in July, the most productive period ever recorded there, according to a new report from the U.S. Energy Information Administration.
- Marcellus, located mostly in West Virginia and Pennsylvania, now accounts for nearly 40% of total U.S. shale gas production, and its rapid growth isn’t expected to ebb soon, the report says.
- New wells in the region are expected to deliver another 600M cf/day, more than offsetting decline rates, for a net production increase of 247M cf/day.
- Major Marcellus shale producers include CHK, RRC, RDS.A, RDS.B, TLM, APC, ATLS, COG, CVX, CNX, EQT, EOG, XOM, WPX, XCO, CRZO, SWN.
Aug. 5, 2014, 7:05 PM
- Venezuelan state oil company PDVSA would sell North American unit Citgo if it receives a good offer, the country's oil minister says.
- Citgo has three U.S. refineries with combined capacity of ~750K bbl/day, but two of the refineries are geared to run heavy crudes from Venezuela while U.S. refining companies are trying to maximize profits by buying cheap domestic light crudes; Citgo's refinery in Lemont, Ill., is the only one that does not process Venezuelan heavy crudes, and its location is not far from inexpensive Canadian crudes.
- Separate from Citgo, PDVSA has a stake in the Chalmette refinery in Louisiana with Exxon (NYSE:XOM) and owns the Merey Sweeny unit of the Sweeny, Tex., refinery with Conoco (NYSE:COP) spinoff Phillips 66 (NYSE:PSX); selling either likely would lead to legal tangles because of arbitration claims filed by XOM and COP over 2007 nationalizations of their projects in Venezuela.
Aug. 5, 2014, 4:58 PM
- An industry-funded study concludes that crude oil from the Bakken region is similar to other North American light, sweet crudes and does not pose a greater risk to transport by rail than other crudes and transportation fuels.
- But the study also outlines several best practices intended to boost safety, including classifying the crude higher on the hazardous material shipping scale.
- The group hopes the report allays fears that Bakken oil may be more prone to ignition after a series of accidents involving rail shipments of the oil.
- Bakken producers include CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
Aug. 5, 2014, 10:16 AM
- North Dakota’s crude oil production passed 1M bbl/day in April and remained above the 1M benchmark in May on the strength of production from the Bakken and Three Forks formations.
- One reason for May's 3.6% M/M growth to 1.039M bbl/day was the addition of 227 producing wells through the state, with 10,892 producing wells in May compared to 10,665 in April.
- Average production per well in the state also grew between the months, to 2,959 barrels per well from 2,822 in April.
- North Dakota's oil fields now account for 12% of all U.S. oil production, and more than 1% of global production.
- Top Bakken producers include CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
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Exxon Mobil Corporation is engaged in energy, involving exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products.
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