Tuesday, April 7, 2020

Devon Energy News

Upstream Sector Leads O&A M&A in 2019

Graph: GlobalData

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

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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

A crude oil train segment rumbles alongside a U.S. inland waterway. CREDIT: Dagmar Etkin

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

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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

Logo: SandRidge Energy

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

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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

File Image (CREDIT: AdobeStock / (c) Shamtor)

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

File Image (CREDIT: AdobeStock / (c) Kasto)

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

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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

US Oil Drillers Cut Rigs for 2nd Week in Three

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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.

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)

Penn Virginia to buy Eagle Ford Assets for $205 mln

File Image (CREDIT: AdobeStock / (c) Shamtor)

U.S. oil producer Penn Virginia Corp said on Monday it would buy assets in the Eagle Ford shale in Texas from larger rival Devon Energy Corp for $205 million to expand in the area.   The assets, which comprise about 19,600 net acres adjacent to Penn Virginia's core operations, are expected to increase the company's production by about 30 percent or 3,000 barrels of oil equivalent per day.   Devon's sale of the assets is part of its program to sell $1 billion in assets, first announced in May.   Penn Virginia said it would fund the all-cash deal through debt financing.   Reporting by Ahmed Farhatha

BP Doubles Down on Deepwater

BP's Thunder Horse platform in the Gulf of Mexico (File photo: BP)

About 300 BP workers commute 150 miles here by helicopter, from the Louisiana coast to a deep-sea drilling platform that can produce more oil in a day than a West Texas rig can pump in a year. On the deck of Thunder Horse, they work two-week shifts, drink seawater from a desalination plant, and eat ribs and chicken ferried in by boat. On the ocean floor, robots provide remote eyes and arms as drills extract up to 265,000 barrels per day. "There's a whole city below us," said Jim Pearl, Marine Team Leader on the platform. This is just one of the four Gulf of Mexico platforms on which BP has staked its future in U.S.

Innovators Toil to Revive Canada Oil Sands

In the boreal forests and on the remote prairies of Alberta, a handful of firms are running pilot projects they hope will end a two-decade drought in innovation and stem the exodus of top global energy firms from Canada's oil sands. They are searching for a breakthrough that will cut the cost of pumping the tar-like oil from the country's vast underground bitumen reservoirs and better compete with the booming shale industry in the United States. If they fail, a bigger chunk of the world's third-largest oil reserves will stay in the ground.

Devon Energy to Divest $1 Bln in Non-core Assets

U.S. oil producer Devon Energy Corp said it planned to divest about $1 billion of upstream assets across its portfolio.   The portfolio includes portions of its Barnett Shale assets.   The company expects to start divesting the assets in the second quarter of 2017 and complete the process over next 12 to 18 months.   Devon on Tuesday also reported a first-quarter profit, compared with a year-ago loss, helped by cost cuts. (Reporting by Sruthi Shankar and John Benny; Editing by Maju Samuel)

As Trump Targets Energy Rules, Oil Companies Downplay their Impact

President Donald Trump (Official White House photo)

President Donald Trump’s White House has said his plans to slash environmental regulations will trigger a new energy boom and help the United States drill its way to independence from foreign oil. But the top U.S. oil and gas companies have been telling their shareholders that regulations have little impact on their business, according to a Reuters review of U.S. securities filings from the top producers. In annual reports to the U.S. Securities and Exchange Commission, 13 of the 15 biggest U.S. oil and gas producers said that compliance with current regulations is not impacting their operations or their financial condition.