Shale Pioneer Chesapeake Energy Files for Bankruptcy
Chesapeake Energy Corp filed for Chapter 11 on Sunday, becoming the largest U.S. oil and gas producer to seek bankruptcy protection in recent years as it bowed to heavy debts and the impact of the coronavirus outbreak on energy markets.The filing marks an end of an era for the Oklahoma City-based shale pioneer, and comes after months of negotiations with creditors.
OTC Snaps up Rival Oil Brokerage as Consolidation Heats Up
Commodities broker OTC Europe has agreed to purchase rival Oil Brokerage in the latest consolidation in a sector squeezed by rising competition and smaller margins. OTC Europe, a subsidiary of OTC Global Holdings, said it concluded its purchase of Oil Brokerage, a 29-year-old, London-based firm with some 70 staff, on Tuesday in an effort to expand its global footprint.
Total on Hunt for Deals After Outperforming Rivals
French oil company Total is on the hunt to buy assets from struggling rivals, it said on Thursday, as it reported some of the biggest profits in the industry for last year and raised its dividend. Chief Executive Patrick Pouyanne said Total was reaping the benefit of cutting costs more quickly than competitors following the start of an oil price rout in 2014, and of focusing on projects with lower production costs.
Pemex set to announce debt management deal
Mexican national oil company Pemex is about to execute a debt management deal in international markets to improve the firm's finances, Pemex Chief Financial Officer Juan Pablo Newman said on Wednesday. Newman said the transaction is comprised of three parts, a refinancing in dollars, a pre-funding component and a debt swap, but he declined to go into further detail.
Fire on Pemex Tanker in Gulf of Mexico
A fire broke out on an oil tanker of Mexican state oil company Pemex in the Gulf of Mexico on Saturday, forcing all the crew to be evacuated in the latest accident to plague the struggling firm. The blaze on the tanker "Burgos" occurred off the coast of Boca del Rio in Veracruz state and all the crew were safe, Pemex said in a tweet. Mexico's Navy said there were 31 crew members and that all had returned to port.
Jobless Recovery Looms for White-Collar Oil Workers
Elizabeth Huber lost her job inspecting oilfield pipes nearly 20 months ago and her prospects remain bleak even as oil executives cautiously plot production and budget increases. Despite crude trading 75 percent above its February lows and energy companies shifting focus from survival to recovery, white-collar jobs in the sector remain as scarce as during the depths of the two-year oil price rout.
US Oil Drillers Add Rigs for 5th Week in 6
U.S. drillers this week added oil rigs for a fifth week in six, according to a closely followed report Friday, prompting analysts to predict the rig count has bottomed and production will start to edge up early next year. Drillers added 10 oil rigs in the week to July 8, bringing the total rig count up to 351, compared with 645 a year ago, energy services firm Baker Hughes Inc said.
With Oil Near $50, U.S. Shale Producers eye Growth
Two years into the worst oil price rout in a generation, large and mid-sized U.S. independent producers are surviving and eyeing growth again as oil nears $50 a barrel, confounding OPEC and Saudi Arabia with their resiliency. That shale giants Hess Corp, Apache Corp and more than 25 other companies have beaten back OPEC's attempt to sideline them would have been unthinkable just months ago, when oil plumbed $26 a barrel and collapses were feared.
Oil Majors Look to Shed Refineries
Chevron solicits interest in Burnaby, British Columbia refinery; Shell seeks buyer for Martinez, California plant. Global oil majors Chevron Corp and Royal Dutch Shell Plc are putting small refineries on the auction block as they look to trim lower-margin assets in the face of headwinds from rising crude oil prices. Chevron, the second largest U.S. oil company, is soliciting interest in its Burnaby…
Penn Virginia Files for Bankruptcy Protection
Oil and natural gas producer Penn Virginia Corp said on Thursday it had filed for bankruptcy protection, the latest company to fall victim to the oil price rout. Dozens of U.S. shale companies have sought bankruptcy protection in recent months as a near-60 percent slump in oil prices since mid-2014 erodes cash flows. This has forced companies to restructure debt taken on during a frenzy of development in recent years.
Oil Rises, Heads for Third Week of Gains
Oil prices rose on Friday and were poised for a third week of gains as market sentiment turned more upbeat amid signs a persisting global supply glut may be easing. Strong gasoline consumption in the United States, increasing signs of declining production around the world and oilfield outages have underpinned a return to investment in the sector, traders said. "The…
US Oil Drillers Cut Rigs for 12th Week in a Row
U.S. energy firms this week cut oil rigs for a 12th week in a row to the lowest level since December 2009 as drillers continue to slash capital expenditures despite crude prices having apparently bottomed, data showed on Friday. Looking forward, many analysts think the rig count will rebound later this year when prices rise. Drillers removed six oil rigs in the week ended March 11…
Argentina's YPF Will Cut Capital Expenditure in 2016
Argentina's state-controlled oil company YPF will cut its capital expenditure in 2016 to mitigate the impact of the global oil price rout, its chief executive said on Friday after the firm announced a fourth quarter loss. "We do not see a meaningful production growth this year, we will be cutting capex," Chief Executive Officer Miguel Galuccio told an investor conference call.
Pemex Posts Wider Q4 Loss at $9.8 Bln
Mexico's national oil company Pemex on Monday reported a wider quarterly loss for the fourth quarter of last year at $9.8 billion, a nearly 44 percent deeper loss compared to the year-earlier period. The company's revenues for the quarter stood at $15.4 billion, down about 28 percent compared to the same period last year. Pemex, whose market monopoly was ended by a sweeping energy reform in 2013…
U.S. Refinery Cuts Quicken, Impact Crude Markets
For the past six years, U.S. refiners from Texas to Philadelphia have bought every barrel of crude they can lay their hands on to cash in on a golden era of healthy margins. Now, at least five refiners - including two of the country's largest - have voluntarily cut output of gasoline and distillate in the most widespread cuts since the global financial crisis, moves that may deepen crude's prolonged rout as storage tanks at Cushing…
BNP Paribas Exits US Energy Loan Market on Oil Price Rout
France's largest bank BNP Paribas (BNPP.PA> is pulling out of a niche U.S. energy lending business for the second time in four years after plunging oil prices dragged what was once seen as some of the safest energy loans into losses. "Given the current environment in the oil and gas markets and the short to medium term outlook, BNP Paribas has decided to halt the redevelopment of its reserve-based lending business," BNP said in a statement.
Canadian Profits Impacted by Oil Price
The oil price rout and related Canadian dollar slide that is ravaging the country's economy is starting to take its toll on corporate profits, from rail and retail to seemingly unrelated sectors like telecoms. "The direct impact from the energy sector alone is going to be significant," said Macquarie analyst David Doyle. Thomson Reuters SmartEstimates data project…
Struggling U.S. Producers get Credit Lifeline
An autumn credit crunch was expected to hit many independent U.S. oil producers, starving the industry of billions of dollars and further denting company budgets and drilling plans. But banks that adjust their loans to energy companies every six months based on the oil price and volumes of reserves were more lenient than many expected this time, leaving producers…
Tesoro: Better Yields Bolster Value of Railed-in Bakken Crude
Tesoro Corp sees continued value in railing North Dakota Bakken crude to its Washington state refinery despite higher costs because of improved yields, Chief Executive Greg Goff told analysts on Thursday. "We still see economic value to be able to move Bakken to the West Coast and achieve the benefits that we have always stated, which primarily are driven by the yield improvements in the refineries," he said.
Chesapeake Energy BoardMmember Martin Named Chairman
Chesapeake Energy Corp, the second largest U.S. producer of natural gas, on Monday said current director and former Saks Inc Chief Executive Brad Martin has been named non-executive chairman of its board, effective immediately. He replaces Archie Dunham, who helped Chesapeake navigate a governance and liquidity crisis that occurred under the watch of former CEO Aubrey McClendon.
