US energy deals fall to $12 billion in Q3 after a year-long frenzy
Enverus, a leading analytics firm, said that U.S. oil deals slowed dramatically in the last quarter as a result of fewer firms being offered and a consolidation wave lasting ten months. Andrew Dittmar, principal analyst at Enverus Intelligence research, reported that the quarter ending Sept. 30 saw the lowest number of deals in six quarters. After 2023, when $192 billion was spent on deals in West Texas and New Mexico's Permian Basin, the biggest shale formation in the U.S. He added that these mega deals are causing acquirers to review their portfolios in order to eliminate unwanted assets.
Shares of US energy companies rise as Middle East crisis fuels supply concerns
The shares of U.S. Energy companies rose in premarket trading on Wednesday. This was due to the rise in oil prices, which was a result of concerns about a possible escalation in tensions in Middle East. The markets went into a risk off mode after the announcement. The demand for safe-haven currencies such as the Japanese yen, Swiss franc and oil stocks was strong. Benchmark Brent crude rose by 2.8% to $75.59 per barrel while U.S. crude climbed 3% to $71.92. Matthew Ryan, director of Ebury's market strategy, said that the involvement of Iran was a worrying development for the markets.
Natural gas producers ask Harris for answers on the battleground state
Drillers from Pennsylvania, an energy-rich state, called on Democratic presidential nominee Kamala Harris this week to explain her stance on natural gas. The energy industry touts it as a clean fuel but climate activists claim that the fuel is a threat to global warming. In January, President Joe Biden froze new LNG export permits to examine their environmental impact. This was a move made in the election year in order to gain support from the green voting blocs of his party. Harris is now facing Donald Trump, a Republican who has stated that he will immediately lift the freeze on permits if elected.
Sources say that Citizen Energy, a producer of shale oil and gas, will buy Validus in a deal worth more than $2 billion.
According to sources familiar with the situation, Validus Energy, a privately held oil and natural gas producer, has agreed to purchase Citizen Energy, a rival company, for over $2 billion including debt. The U.S. Shale industry has seen a record wave of consolidation. After the COVID, oil prices surged and buyers were eager to secure the best drilling locations. Sources who requested anonymity because the talks are confidential said that Validus won the auction for Tulsa's Citizen Energy. Sources said that Citizen…
U.S. Oil Firms' Quarterly Reports to Show Depths of Slump
Investors are in for more bad news on the energy front in the coming weeks as a host of the sector's biggest companies report quarterly results following the historic collapse in oil prices.Forecasts for U.S. energy sector earnings this year have dropped along with oil prices, weighing on shares along with worries over debt, layoffs and possible bankruptcies.Analysts see a 58.9% year-over-year decline in energy earnings for the first quarter, steeper even than the 37.7% decline they projected at the start of the month, according to IBES data from Refinitiv.
Upstream Sector Leads O&A M&A in 2019
A latest research revealed that the upstream sector accounted for the bulk of mergers and acquisitions (M&A) in the global oil and gas industry in 2019, generating some high-value transactions during the process.According to GlobalData's theme report, ‘M&A in Oil and Gas – 2020’, the acquisition of Anadarko Petroleum by Occidental Petroleum in April 2019 for a purchase consideration of US$57bn was the highlight of oil and gas M&A activity last year, says GlobalData, a leading data and analytics company.Ravindra Puranik…
Investors Brace for Poor US Shale Earnings
Investors are bracing for weaker results from U.S. shale players in coming days as lower oil and natural gas prices and cost-cutting measures have weighed on third-quarter operations.Major shale producers ConocoPhillips and Concho Resources this week kick off quarterly earnings reports for a group whipsawed this year by volatile pricing and investor demands for improved returns. Oil and gas producers have cut drilling and slashed jobs amid worries over pricing outlooks.U.S. oil prices are down 17% and natural gas is down about 31% from a year ago, undercutting production increases.
Canadian Natural Resources eyes Rail Contracts
Canadian Natural Resources, the country's biggest oil and gas producer, is looking at taking on the Alberta provincial government's contracts to move crude by rail, a senior company executive said on Thursday.Shipping more crude by rail is seen as critical for Canadian oil producers due to congested pipelines that forced Alberta to order mandatory oil curtailments this year.Alberta's United Conservative Party government said in June that it would divest rail contracts amounting to 120,000 barrels of crude per day (bpd) to the private sector this fall.
US Drillers Add Rigs for Fourth Week in Five
U.S. energy firms added oil rigs for a fourth time in the last five, keeping the rig count at its highest in over three years even though crude futures were on track to fall for a fifth week in a row to their lowest level since February.Drillers added 12 oil rigs in the week to Nov. 9, bringing the total count to 886, the highest level since March 2015, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday.The U.S. rig count, an early indicator of future output…
Devon Energy Sees Higher US Output in Third Quarter
Shale producer Devon Energy on Tuesday forecast higher U.S. production for the third quarter from a year earlier, helped by an increase in output of natural gas liquids.Devon now expects output of about 418,000 barrels of oil-equivalent per day boe/d, up from 403,000 boe/d it reported, a year earlier.The company said its capital spending fell to $523 million in the quarter, 9 percent below the company's midpoint forecast.(Reporting by John Benny in Bengaluru; Editing by Arun Koyyur)
SandRidge Says Approached by 17 Potential Buyers, Including Icahn
SandRidge Energy Inc said on Friday it had been approached by 17 potential bidders for a buyout, including billionaire Carl Icahn who is fighting for control of the oil and gas producer's board.Icahn has criticized SandRidge's leadership, forced the removal of its chief executive officer and got the company to back out of its planned buyout of rival Bonanza Creek Energy Inc .The investor, who said in April he was willing to buy the company, will now have to battle 16 other potential suitors even as he seeks to revamp the board with his seven preferred nominees."Some investors tip their hat to an Icahn-lead board…
Devon Energy to Sell EnLink Midstream Stakes
Oil and gas producer Devon Energy Corp said on Wednesday it plans to sell its stakes in EnLink Midstream for $3.13 billion cash in a bid to streamline assets and pare debt."The EnLink proceeds, combined with proceeds from the non-core E&P assets already sold and those currently being marketed, will exceed our $5 billion divestiture target," Chief Executive Officer Dave Hager said in statement.Shares of the company rose more than 6 percent to $41.85 before the bell.Devon is trying to simplify its asset portfolio, cut costs and at the same time return cash to shareholders.
Devon Energy Raises Oil Production Guidance
Shale oil producer Devon Energy Corp raised its annual production forecast on Tuesday, saying it expected output would now grow 16 percent from last year compared to an earlier forecast of 14 percent.The Oklahoma-based company said it produced 251 thousand barrels of oil and bitumen per day in the quarter ended March 31, with realized prices per barrel rising 21 percent to $62.93.Total revenue rose to $3.81 billion from $3.55 billion and the company's shares rose 2.12 percent to $37.1 in trading after the bell.Net loss attributable to company shareholders stood at $197 million, or 38 cents per share, for the three months ended
Devon Energy Eyes More Asset Sales
U.S. oil producer Devon Energy Corp said on Monday it was looking to sell even more assets than previously announced in order to focus its portfolio on three shale regions. Devon is now eyeing asset sales of up to $5 billion as it streamlines operations to the SCOOP/STACK, Permian and Rocky Mountain areas, Dave Hager, Devon's chief executive, said at the Scotia Howard Weil energy conference in New Orleans. "We are working on more strategic type moves for the company," Hager said. The company has no plans to increase its 2018 capital budget of $2.2 billion to $2.4 billion even with the recent rise in oil prices…
Small OK Shale Play Sees Big Bets from Producers
A little-known shale oil play in Oklahoma is attracting more drilling and investment as rising output from newer wells is enticing companies to boost production beyond the giant Permian basin in Texas. The Meramec formation is a part of what is called the STACK region - Sooner Trend Anadarko basin Canadian and Kingfisher counties - where companies such as Marathon Oil and Devon Energy bought up acreage following the oil slump in 2014. Those investments are now paying off as production levels rise and soaring land costs in the Permian have producers looking to other fields for expansion.
Hess to Buy Back $1 bln Shares
Hess Corp said on Thursday it would buy back $1 billion worth of shares by the end of 2018, becoming the latest U.S. oil and gas producer to do so amid a recovery in oil prices. Hess said the new buyback program was in addition to the $500 million plan the company had announced in late 2017. Investors have increasingly demanded companies to return more cash as oil prices have more than doubled since their lows in 2016. The news from Hess comes a day after Devon Energy Corp laid out similar plans and industry major Chevron Corp on Tuesday said it was looking at buying back shares three years after halting its program.
US Shale Producers Promise Higher Output and Returns
U.S. shale producers are telling investors impatient for better returns that they can keep boosting oil output aggressively and do so while still making money for shareholders. Investors have pushed top U.S. shale companies to focus on returns, rather than higher output, a move that threatened to slow the breakneck growth in supply sparked by the shale revolution in the world's top oil consumer. For the Organization of the Petroleum Exporting Countries, slower shale production gains would have been welcome. The cartel this year put caps on its members' production to end a supply glut and boost oil prices, only to find U.S.
Devon Energy Resuming Operations in Eagle Ford Shale after Harvey
Devon Energy Corp said on Wednesday it has resumed drilling and fracking of wells in the Eagle Ford shale region of Texas after halting operations during Tropical Storm Harvey. The company said its facilities sustained only minor damage due to the storm and that it expects to have the "vast majority" of affected operations online by the end of the week. Reporting by Ernest Scheyder
Devon Energy Posts Q2 Profit vs Year-ago Loss
U.S. oil and gas producer Devon Energy Corp reported a quarterly profit, compared with a year-ago loss when the company recorded a $1.50 billion asset impairment charge. The net income attributable to Devon was $425 million, or 80 cents per share, in the second quarter ended June 30, compared with a loss of $1.57 billion, or $3.04 per share, a year earlier. Production fell nearly 17 percent to 536,000 barrels of oil equivalent per day. (Reporting by John Benny in Bengaluru; Editing by Sriraj Kalluvila)
US Oil Drillers Cut Rigs for 2nd Week in Three
U.S. energy firms cut the number of oil rigs for the second in three weeks, slowing the pace of a 15-month drilling recovery, amid plans to spend less in reaction to declines in crude prices over the past several months. Drillers cut one oil rig in the week to August 4, bringing the total count down to 765, General Electric Co's Baker Hughes energy services firm said in its report on Friday. There were 381 active oil rigs during the same week a year ago. Drillers have added rigs in 55 of the past 62 weeks since the start of June 2016. The rig count is an early indicator of future output. U.S.
