Diamondback Energy misses Q3 profit estimates, raises annual production forecast
Diamondback Energy missed Monday's estimates for the third quarter profit as it was hit by lower prices. However, its forecast for production for this year got a boost thanks to its acquisition of Endeavor Energy for $26 billion. Oil prices dropped in the third quarter, after an interest rate reduction by the Federal Reserve that was larger than expected sparked concern about the U.S. economic situation as well as global demand. The company has been announcing its results for the month of September. Lower prices for its third quarter oil and gas production. This makes it the third U.S.
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.
Exxon has secured over 271,000 acres of land in Texas waters to capture CO2 offshore
Exxon Mobil announced on Thursday that it had acquired state leases covering over 271,000 acres of Texas state waters to conduct an offshore CO2 capture operation. Exxon won the lease from the Texas General Land Office after it bid in 2021 for federal land near the Texas coast to capture CO2, and then emerged as the highest bidder in 2023 for 69 blocks of shallow water in the U.S. Gulf of Mexico, in order to expand its carbon storage area. Oil companies such as Chevron and Occidental Petroleum have adopted carbon capture…
Occidental Petroleum reports lower oil and gas prices in Q3
Occidental Petroleum, a U.S.-based oil producer, announced on Wednesday that its oil and natural gas production prices were lower in the third quarter compared with the previous period. The company reported that the realized prices or the prices it received for its production during the third quarter were about 6% lower in total for its oil output, and 26% lower in its U.S. Natural Gas output. Concerns about the growth of global oil demand led to a decline in oil prices during the quarter July-September. U.S. Natural Gas prices fell to multi-year lows. Prices in the Waha Hub were also at their lowest levels.
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.
As tensions in the Middle East escalate, futures prices fall; employment data is on tap
U.S. Stock Index Futures fell on Wednesday, as geopolitical tensions and a port strike in the United States kept investors on edge before data that was expected to shed some light on the state of the economy and its monetary policy trajectory. Wall Street's major indexes started the fourth quarter of the year with a gloomy outlook. The S&P 500, and Nasdaq touched lows that were about two weeks old in the previous session as investors dumped riskier assets in response to Iran firing missiles at Israel in retaliation to its attacks on Lebanon. The markets held steady as Israel and the U.S.
As a major hurricane approaches, oil companies are evacuating their staff from the Gulf of Mexico.
On Monday, U.S. producers of oil scrambled to evacuate their staff from offshore oil fields in the Gulf of Mexico as the second major storm to hit in two weeks is predicted to ravage them. The U.S. National Hurricane Center stated that a potential Tropical Cyclone over the warm waters of the Gulf could rapidly intensify and become a major Hurricane with winds up to 115 mph (185 kph). According to the NHC, the storm, called Helene, would hit the U.S. at a category 3 on the Saffir Simpson wind scale. It…
Occidental's 1PointFive receives funding up to $500 mln by US DOE
Occidental Petroleum’s carbon capture unit 1PointFive announced on Thursday that the U.S. Department of Energy’s Office of Clean Energy Demonstrations had committed up to 500 million dollars to support the development of the South Texas Direct Air Capture Hub (DAC). BlackRock, one of the largest asset managers in the world, had funded this facility previously. Occidental’s first large-scale DAC plant represents a pivotal trial in terms of economics for a technology, which the International Energy Agency believes will play a crucial role for industrial decarbonization globally despite initial high costs.
Oil producer APA Corp will sell Permian assets at $950 mln
APA Corp, a U.S. oil-and-gas producer, announced on Tuesday that it will sell its non-core Permian drilling properties for $950 million to an unnamed buyer as part of its efforts to reduce debt. Energy companies are rushing to increase their oil and natural gas drilling inventory, particularly in the Permian Basin, which is the largest shale formation in the United States. In an attempt to reduce debt and streamline operations, companies have also been forced to sell assets. Occidental Petroleum announced earlier this year that it would sell certain assets to Permian Resources.
Will Buffett's put' on oil company Occidental stop the share price drop?
Shares of U.S. oil company Occidental Petroleum dropped to $56.17 Tuesday. This is below the level which has triggered Berkshire Hathaway, owned by billionaire Warren Buffett. Wall Street analysts referred to past multimillion-share purchase as "the Berkshire Put" because they were timed so precisely with drops below $60. But Occidental's shares have traded below this price for the entire month. This is the longest period of time since a swoon that began in January and ended when Berkshire bought 4.3 million stocks in early February.
Occidental delays CrownRock output goals, turns to debt reduction
Occidental Petroleum said on Thursday that it would focus on reducing debt and catching-up with production goals promised before a much anticipated expansion of the cash distribution program. The U.S. Oil Producer posted better than expected second quarter results on Tuesday, thanks to strong production in Colorado and lower operating costs. This, combined with a one-time high midstream earning, sent the shares up by 1.54% during afternoon trading. The company has not been able to produce the 170,000 barrels equivalent per day (boepd), as expected, from newly acquired assets.
Occidental Petroleum Jumps into Acquisition Mode
Occidental Petroleum said on Monday it would buy energy producer CrownRock in a cash-and-stock deal valued at $12 billion including debt, expanding in the lucrative Permian basin.Investors are pressing oil and gas producers to expand their inventories following Exxon Mobil's $60 billion deal for Pioneer Natural Resources and Chevron's $53 billion agreement for Hess in October.Occidental will finance the purchase of privately-held oil and gas producer CrownRock with $9.1 billion of new debt, the issuance…
When is a Cargo of Oil Certified "Carbon Neutral"? Ask Lundin Energy
Sweden's Lundin Energy has sold to Italian refiner Saras what it said is the world's first oil cargo certified as carbon neutral at the point of production, the two companies said on Monday.Oil companies are increasingly trying to market their products as cleaner in an effort to secure a future for the fossil fuel industry in a world where investors, activists and regulators are demanding action to halt climate change.While Lundin's crude from the Norwegian Edvard Grieg field was certified as carbon neutral from exploration…
China Ramps up US Oil Purchases Ahead of Trade Deal Review
U.S. crude oil shipments to China will rise sharply in coming weeks, U.S. traders and shipbrokers and Chinese importers said, as the world’s top economies gear up to review a January deal after a prolonged trade war.Chinese state-owned oil firms have tentatively booked tankers to carry at least 20 million barrels of U.S. crude for August and September, the people said, moves that may ease U.S. concerns that China’s purchases are trending well short of purchase commitments under the Phase 1 of the trade deal.China had emerged as a top U.S.
Flurry of US Crude Export Fixtures Offers Slimmer of Hope
A flurry of tentative bookings to export U.S. crude oil from the Gulf Coast suggests demand is edging up after the coronavirus slammed energy consumption worldwide.BP, Trafigura and Equinor have all tentatively fixed vessels this past week to carry U.S. crude to global destinations over the coming month, according to Refinitiv Eikon data and shipping sources.Commodities merchant Trafigura and Occidental Petroleum are among companies looking to book vessels to ship crude from the U.S. Gulf Coast to Asia, one shipbroker said. The U.S.
Price Drop Triggers Haggling Over Oil and Gas Deals
The collapse in oil prices to 21-year lows has led potential buyers of oil and gas fields to try and renegotiate deals already agreed at higher prices, with the first examples emerging of sellers having their hand forced.At a time when most oil companies are slashing budgets, dividends, and headcounts to preserve cash, sellers are facing a difficult choice between sweetening the deal or risking losing it altogether.Premier Oil's CEO said he is seeking a cheaper price for North Sea assets it agreed to…
Occidental Posts $2.2B Loss, Deepens Spending Cuts
Occidental Petroleum Corp on Tuesday swung to a first-quarter loss on writedowns and charges, and the troubled U.S. oil producer cut its budget for the third time since March in response to a historic oil-price crash.The company has been struggling with debt taken on in last year's $38 billion acquisition of Anadarko Petroleum, an ill-timed bet on rising shale oil prices ahead of a market dive.Global energy demand has tumbled amid coronavirus-related travel and business restrictions and a glut of oil from a price war. U.S.
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…
Oxy Slashing Jobs 'Significantly'
Occidental Petroleum Corp said on Wednesday it would begin dismissing workers in a new cost-cutting move following its $38 billion acquisition of Anadarko Petroleum.The company has already "significantly" cut staff through a voluntary program, spokeswoman Melissa Schoeb said in an email. She did not respond to requests for information about the number of employees to be cut or any potential charge to earnings.The combined company had about 16,000 workers when it merged.Occidental has been selling assets and cutting costs since it outbid Chevron Corp last year for Anadarko, quadrupling its debt to $40 billion.
Gould Elected to Oxy Board of Directors
US based oil and gas company Occidental Petroleum announced on Thursday that former Schlumberger Chairman and Chief Executive Officer Andrew Gould has been elected to its Board of Directors effective March 1, 2020.Gould has more than 40 years of experience in the oil and gas industry. He started his career at Schlumberger in 1975 and served as Chairman and Chief Executive Officer of the oilfield services giant from 2003 to 2011. Following his tenure at Schlumberger, Gould served as non-Executive Chairman of multinational oil and gas company BG Group from 2012 until its sale to Royal Dutch Shell in 2016.
