Energen revealed plans to sell the remainder of its San Juan Basin assets in 2016 along with other noncore assets in the Delaware Basin with proceeds estimated at $400 million.
Although land leasing contracts across the world may have some common features, looks can be deceiving and certain kinds of agreements should trigger alarms, a speaker warned.
Houston-based service company MRC Global entered into an agreement to sell its U.S. oil country tubular goods, which follows a sale in late January by Canada's largest pressure pumper.
The company plans to keep its U.S. shale position at less than 20% of total production to weather downturns with low decline rates, but seems committed to paying dividends.
Analysts see WPX’s ability to deal its gas assets as a positive for other E&Ps looking to divest noncore producing assets amid low commodity prices.
A news report that said the company had hired a restructuring attorney sent the price of the stock tumbling, but Chesapeake countered it had no intention of filing for bankruptcy.
Although M&A and A&D activity has been down lately, some believe change is coming.
President Barack Obama is proposing to pay for clean energy investments by placing a $10 per barrel oil fee as the industry grapples with low prices. Congressional leaders said the plan is dead on arrival.
Craig Lande, managing director at RBC Richardson Barr, says A&D will be different in 2016: capital markets are tightening, 20% of production is hedged and demand is hopelessly outmatched by supply.
Midstream assets figure heavily into deal, with Dominion calculating that $425 million in EBITDA could be moved into its midstream MLP. The merger would put Eastern and Western gas market under Dominion’s roof.
At Hart Energy’s Viewpoint Executive Energy Club, Stratas Advisors directors gave industry executives a wide-ranging view and key to competing in the upcoming year.
Pressure pumpers are seeing bids cluster, a signal that concessions for E&Ps may have bottomed and that some oilfield service companies may start to fall by the wayside.
|E&P||USD 910||Members only||WPX Energy Inc.|
|S&S||USD 247||Members only||Trican Well Service Ltd.|
|Mid||USD 350||Members only||NGL Energy Partners LP|
|Mid||CAD 30||Members only||AltaGas Ltd.|