Thursday, June 20, 2019

Alberta News

Husky Cuts Long-term Spend to Boost Cash Flow

Husky Energy Inc on Tuesday nearly doubled its free cash flow target over five years as it cut its planned capital spending at a time when investors have been calling on oil and gas companies to shore up capital for buybacks and dividends.Oil production curtailments imposed this year by the government of Canada's energy-rich province Alberta, as well as rising global oil prices, have allowed Canadian producers to rake in the highest revenues in five years. Many favor paying down debt or returning cash to shareholders as uncertainty remains about construction of new Canadian pipeline capacity."Oil and gas and energy is pretty unloved…

Suncor Q1 profit beats estimates

(Photo: Suncor Energy)

Canada's Suncor Energy Inc reported a profit on Wednesday that beat analysts' estimates as the integrated oil producer reaped the benefits of improved Canadian heavy crude pricing due to Alberta's production curtailments.The government's mandated cuts that came into effect on January 1 have helped free up some pipeline space for the country's crude, sharply reducing a price discount on Canadian versus U.S.

Husky Energy Beats Profit Estimate

(Photo: Husky Energy)

Canada's Husky Energy Inc beat analysts' estimates for quarterly profit on Friday, as it benefited from improved Canadian crude prices following Alberta's output cuts and investment in a number of refineries and pipelines boosted its margins per barrel.The oil and gas producer, which runs drilling and refining businesses in Canada, the United States and Asia, said average realized prices rose to C$47.20 per barrel of oil equivalent (boe) in the first quarter, from C$40.87 per boe a year earlier.In December last year, Alberta mandated temporary…

Oil Dips on U.S. Manufacturing Data

Oil prices reversed course on Friday, falling 2 percent as bearish U.S. manufacturing data stoked concerns over global energy demand growth.The ISM manufacturing activity index in February sank to the lowest since November 2016, and was below expectations.U.S. West Texas Intermediate futures fell $1.11 to $56.11 a barrel by 11:15 a.m. EST (1615 GMT). The contract had earlier hit a high of $57.88.Global benchmark Brent crude futures for May fell $1.26 to $65.05 a barrel, after earlier touching a session high of $67.14."We have been the island of prosperity…

Oil Steady, Supported by OPEC Cuts

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Record U.S. output, exports offset some of OPEC's cuts.Oil prices were broadly steady on Friday as surging U.S. supply and concerns of a global economic slowdown were offset by falling OPEC output.International Brent crude futures were at $66.39 per barrel at 1231 GMT, up 8 cents from Thursday's settlement.U.S. West Texas Intermediate (WTI) crude oil futures were at $57.38 per barrel, up 16 cents."Oil prices are finely balanced in today's trading session," senior Interfax Energy analyst Abhishek Kumar said.The 14-member Organization of the Petroleum Exporting Countries pumped 30.68 million barrels per day (bpd) in February…

Part of Keystone Pipeline Still Shut After Missouri Leak -TransCanada

TransCanada Corp said on Monday a part of its Keystone crude pipeline from Steele City, Nebraska, to Patoka, Illinois, remained shut after a leak was discovered in the St. Louis, Missouri, area last week.The cause and source of the spill have not been determined and there is no estimated timeline for a restart, TransCanada spokesman Terry Cunha said in an email.The 590,000 barrels-per-day Keystone pipeline system is a critical artery taking Canadian crude from northern Alberta to U.S. refineries.TransCanada told Keystone shippers last week that it was declaring force majeure on shipments affected by the shutdown, according to a notice seen by Reuters.

Suncor sees 13% rise in fourth-quarter upstream output

(Photo: Suncor Energy)

Suncor Energy Inc said on Monday it expects total upstream production to rise by about 13 percent in the fourth quarter of 2018, helped by higher output from its majority-owned Syncrude oil project in northern Alberta.The company expects total upstream production of 831,000 barrels of oil equivalent per day (boe/d), up from 736,400 boe/d in the fourth quarter of 2017.Production from Syncrude alone was 355,000 barrels per day (bbls/d) for the quarter.Chief Executive Officer Steve Williams said the company's newest oil sands project, Fort Hills, completed its production ramp up ahead of schedule and exceeded its forecast of 90 percent utilization for the quarter.The Calgary, Alb

Husky Energy Cuts 2019 Capex

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Canadian oil and gas producer Husky Energy Inc on Thursday cut its 2019 capital expenditure program by about 8 percent, or C$300 million, citing Alberta's mandatory curbs on output and lower oil prices.The company now expects 2019 capital expenditure of C$3.4 billion ($2.52 billion), lower than the C$3.7 billion it forecast at its Investor Day in May 2018.Husky forecast average annual 2019 production to be about 300,000 barrels of oil equivalent per day (boepd). The company had estimated annual production in the range of 310,000 to 320,000 boepd…

Canada-US Pipelines Restart After Weather Disruptions

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Two major pipelines carrying oil from Canada to the United States resumed operations on Wednesday after brief disruptions due to power outages from severe weather in Saskatchewan, Canada, a day earlier.A number of lines on Enbridge Inc's Mainline system, which carries about 1.2 million barrels per day of crude and other liquids, and TransCanada Corp's 590,000 bpd Keystone crude pipeline were hit by power outages on Tuesday in the western Canadian province.TransCanada's Keystone pipeline was operational on Wednesday after it experienced a brief outage due to power disruptions…

Cenovus Expects to Spend $1.1 Bln in 2019

(Photo: Cenovus Energy)

The chief executive of Cenovus Energy Inc said on Monday that he expects the company to invest some C$1.5 billion ($1.1 billion) in 2019, in line with 2018 capital spending, after the Alberta government's mandated oil output cuts boosted Canadian crude prices."My company will have a capital program that looks pretty similar to the program we had last year," Alex Pourbaix said in an interview. "We'll spend the better part of C$1.5 billion, give or take, and that would not have been the case if the government hadn't take action."Pourbaix also said he now expects the Canadian heavy crude discount to be closer to $20 below the U.S.

Oil Surges 5 Percent

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Oil prices jumped by more than 5 percent on Monday after the United States and China agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to cut supply.U.S. light crude oil rose $2.92 a barrel to a high of $53.85, up 5.7 percent, before easing to around $53.00 by 1240 GMT. Brent crude rose 5.3 percent or $3.14 to a high of $62.60 and was last trading around $61.75."From Argentina to Alberta, the oil market news is about supply curtailments," said Norbert Rucker, head of commodity research at Swiss bank Julius Baer.

Pucks and Pellets: Canada Eyes New Ways to Move Crude

(Photo: Canadian National Railway Company)

Canada's biggest railroad says it is attracting interest from oil producers in its effort to move crude in solid, puck-like form, as clogged pipelines divert more oil to riskier rail transport.Congested pipelines have stranded much of Canada's crude in Alberta, driving discounts to record-high levels. Canadian heavy crude traded on Friday for less than one-third of the U.S. benchmark light oil price.The latest blow to the sector landed on Thursday, when a U.S. court ruled construction must stop on TransCanada Corp's Keystone XL pipeline.Pipeline pressure has pushed more crude onto trains owned by Canadian National Railway Co and smaller rival Canadian Pacific Railway Limited.

US Judge Halts Keystone XL Oil Pipeline

Photo: TransCanada Corp

A U.S. judge in Montana has halted construction of the Keystone XL pipeline designed to carry heavy crude oil from Canada to the United States, drawing a sharp rebuke on Friday from President Donald Trump.The ruling of a U.S. Court in Montana late on Thursday dealt a major setback to TransCanada Corp, whose stock dropped 2 percent in Toronto. Shares of companies that would ship oil on the pipeline also fell.TransCanada said in a statement it remains committed to building the $8 billion, 1,180 mile (1,900 km) pipeline, but it has also said it is seeking other investors and has not taken a final investment decision.The ruling drew an angry response from Trump…

Canadian Oil & Gas Drilling Slipping

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Canadian drilling activity will fall 5 percent in 2019, as deep price discounts discourage production, an industry group forecast on Thursday.Canadian oil producers are collecting prices that are much lower than the U.S. benchmark due to severe pipeline bottlenecks, and weak prices may lead producers to limit drilling budgets in the world's fifth-largest oil-producing country.The Petroleum Services Association of Canada (PSAC) forecast that 6,600 wells will be drilled in 2019, the fewest in three years and down from an estimated 6,980 this year.

Encana Widens N. America Reach with $5.5 bln Newfield Deal

Photo: Encana

Canada's Encana Corp will buy Newfield Exploration Co for $5.5 billion, giving the natural gas producer greater access to North America's biggest oilfields.Thursday's all-stock deal will give Encana more acreage in United States' Anadarko and Permian basins as well as Canada's Montney regions. This fits into its five-year plan to boost output by focusing on high-margin, liquids-rich production.U.S. listed shares of Encana fell 15 percent, while Newfield rose 13 percent."This (deal) gives Encana a third growth area in the STACK/SCOOP. It also makes it more weighted obviously to the U.S. and U.S.

Suncor Energy CEO Sees No Need for Oil Output Cuts

Suncor Energy Inc , Canada's second-largest energy producer, does not need to reduce crude output as some of its peers are doing to cope with low prices, Chief Executive Steve Williams said on Thursday.Suncor, which has dedicated pipeline space for its crude as well as refineries in Canada, is mostly insulated from the impact of growing discounts on Canadian crude that are due to pipeline constraints. (Reporting by Rod Nickel in Calgary, Alberta)

Cenovus Sees Crude Differentials to Ease Out by Mid-2019

Photo: Cenovus Energy Inc

Canadian oil and gas producer Cenovus Energy Inc expects the spread between Western Canadian Select (WCS) and U.S. benchmark Crude (WTI) to "significantly" ease out by mid 2019, Chief Executive Officer Alex Pourbaix said on a call.Cenovus also expects crude by rail to reach 300,000 barrels per day by the end of this year, the company said on a post-earnings call with analysts on Wednesday.Last month, the company signed three-year deals with Canada's two major railways to transport roughly 100,000 barrels per day from Northern Alberta to the U.S. Gulf Coast starting in the fourth quarter. (Reuters, Reporting by Laharee Chatterjee in Bengaluru)

Pan Orient Energy Announces Thailand Oil Discovery

Map: Pan Orient Energy

The oil and natural gas company Pan Orient Energy Corp announce that the L53-DD1 exploration well encountered an interpreted, combined 26 meters of net oil pay within three separate sandstone reservoirs between a true vertical depth of 960 to 1,125 meters.The Alberta based oil and gas exploration and production company with operations currently located onshore Thailand, Indonesia and in Western Canada said in a press release that  this interpretation was based on conventional open hole wire line logs and hydrocarbon indications observed while…

Precision Drilling Trumps Ensign Bid for Peer Trinidad

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North American drilling contractor Precision Drilling Corp on Friday said it would buy Trinidad Drilling Ltd in a deal valued at C$1.03 billion ($796 million), trumping a hostile bid from rival Ensign Energy Services.The acquisition, which has an enterprise value of about C$4 billion, makes Precision the third-largest driller in the United States with more than 200 active rigs and 322 rigs in total, said the companies, both based in the Canadian province of Alberta."We'll have strong coverage in other U.S. shale plays and in the Permian," said Precision Chief Financial Officer Carey Ford on a call with analysts.Precision expects the deal…

Sinopec Plans to Build Canadian Oil Refinery

China's Sinopec Corp has joined a group planning to build an oil refinery in Alberta, an enterprise that would strengthen demand for the Canadian province's heavily discounted crude.State-owned Sinopec, formally known as China Petroleum & Chemical Corp, along with an Alberta indigenous group, China State Construction Engineering Corp and Alberta management company Teedrum, plan to build a refinery to process 167,000 barrels per day of crude into gasoline and other products, the project's consulting firm Stantec Inc said in a statement on Thursday.The SinoCan Global refinery would cost C$8.5 billion…