CM - Analyst Notes - June 26, 2020Antero Resources Corp. (NYSE: AR; $3.77-June 19; Hold; PT-$4) Announced a $402MM headline value ($300MM upfront, ~$102MM contingency payments over next 12mo) transaction for a weighted average ~1.0-1.5% ORRI across AR’s asset base (1.25% ORRI in existing producing wells, 3.75% ORRI in existing acreage in wells completed over next three years; after a 13% IRR and 1.5x cash-on-cash return to buyer, AR will have an 85% reversionary interest); headline valuation ~in-line with TPHe...
Jun 26, 2020
CM - Continental halts dividend & curbs production through end of May - April 2020Continental Resources, Inc. announced it has suspended its quarterly dividend until further notice as part of a strategy to manage cash flow in the current business climate. The company just began to pay dividends for the first time in its 52-year history last year, starting with a $0.05/share payout on Nov. 21 to holders of record as of Nov. 7. The company had earlier announced a 55% decrease in 2020 capital spending to $1.2 billion and a cutback of drilling and completion activity to...
Apr 24, 2020
CM - Continental cuts capex 55% while Hamm hopes for correction soon - April 2020Continental Resources, Inc. announced a 55% slash in 2020 capital spending to $1.2 billion as a result of recent market developments. It will scale back its drilling and completion activity extensively, going from an average nine rigs in the Bakken to three and from 10.5 rigs in Oklahoma to an average of four this year. Based on the new budget, though, production will fall less than 5% from 2019’s 340,395 boe/d, the company said in a March 19 press release. Continental expects to be cash flow...
Apr 03, 2020
PS - People & Companies - January 6, 2020Baytex Energy announced that Mark Bly has been appointed chairman. Bly joined the board in 2017 and last March was appointed lead independent director and chair of the human resources and compensation committee. Bly is an independent businessman with over 35 years of experience in the oil and gas industry, primarily with BP. Chaparral Energy announced that its board has appointed Charles “Chuck” Duginski as president and CEO. Duginski succeeds K. Earl Reynolds in those roles as...
Jan 06, 2020
CM - People & Companies - December 13, 2019Basic Energy Services, Inc. announced that Anthony J. DiNello resigned from the board of directors, effective Nov. 8. Carbo Ceramics Inc. announced the resignation of Justin H. Wilks as chairman of the board, effective Nov. 13. Chesapeake Energy Corp. announced that Scott A. Gieselman and David W. Hayes resigned from its board of directors on Nov. 15. Both are partners at NGP Energy Capital Management and were the group’s representatives on Chesapeake’s board....
Dec 13, 2019
CM - Continental will pay maiden dividend, earns $158MM in Q3 - November 2019Shareholders of Continental Resources, Inc. can get used to regular quarterly payouts with the company set to deliver its first-ever common stock dividend, payable Nov. 21 to holders of record as of Nov. 7. The $0.05 a share dividend, or $0.20 a year annualized, amounts to a 0.6% yield based on the company’s $30.79 closing price at the end of Q3. According to chairman and CEO Harold Hamm, the new dividend, along with a recently announced $1 billion share buyback plan, “demonstrates the...
Nov 15, 2019
CM - Continental’s profits flat YOY; common stock buybacks to start - August 2019Continental Resources Inc. reported $236.6 million in profit on revenue of $1.2 billion in Q2, off 2% YOY on revenue that was up 6%. Net cash provided by operating activities of $783.4 million was up 4% YOY while capital expenditures of $805 million were up 8% from a year ago. Bakken production grew by more than 23% and production in its South region was up over 35% Q2 oil production increased 23% YOY to 193,586 bo/d, on which the company realized $54.66/bbl, down 14% from a year ago....
Aug 26, 2019
PS - People & Companies - March 21, 2019President Donald Trump nominated
David Bernhardt as Secretary of the
Interior to replace Ryan Zinke, who
resigned. Bernhardt was serving in
the role on an interim basis prior to his
appointment and was previous deputy
secretary of the department twice and
Interior department solicitor under
President George W. Bush. Bernhardt
must be confirmed by the Senate. Berry Petroleum appointed Donald
L. Paul to its board, effective Feb. 28. Don
Paul is currently executive
director of the...
Mar 21, 2019
CM - Analyst Notes - February 14, 2019Apache Corp. (NYSE: APA; $30.53-Feb. 7; Neutral; PT-N/A)
APA’s FY19 budget of $2.4B came in 20% below its prior/ preliminary $3.0B estimate,
which was unveiled with Q3 earnings and was expected to generate FCF under a low $60/
bbl WTI environment. Despite the downward revision in its 2019 capital
outlay, APA has still maintained its original 410 Mboepd-440 Mboepd
FY19 production guidance, although the company now projects that it will average closer
toward the midpoint of the range vs....
Feb 14, 2019
CS - People & Companies - December 04, 2018Bayshore Petroleum Corp.
announced Alex Falconer was named as
an independent director. His appointment
is subject to approval by the
TSX Venture Exchange. He
serves as CFO of a TSX
Venture-listed company and a CSE-listed
company. In addition, he has been a
director and audit committee member of
many resource-based issuers. Michael Hill will retire as CFO at
Cathedral Energy Services effective
Dec. 31. Scott MacFarlane, the company’s
president and CEO, will assume the duties
of CFO on an...
Dec 04, 2018
Faroe says ‘tut tut’ to shareholder DNO’s £406.8MM offerThe board of directors of Faroe Petroleum Plc told shareholders on Nov. 26 that an unsolicited 152p a share buyout offer by 28.2% owner DNO ASA was opportunistic and substantially undervalues Faroe. The directors urged its other shareholders to take no action in response to the bid, which represented a premium of just 1% to Faroe’s three-month volume-weighted average AIM trading price and 21% above Faroe’s Nov. 23 closing price of 126p.In the aggregate, DNO offered to pay £406.8 million...
Nov 29, 2018
OFS - News Briefs - February 4, 2020Doris Inc. won a contract from BHP for engineering services for subsea umbilicals, risers, flowlines and the export pipeline for the Trion project off Mexico. Trion is located in the Perdido belt in 2,570 meters of water. BHP is targeting a 2022 final investment decision on the project, with first oil coming in 2025 or 2026. Financial terms were not disclosed. Evolution Well Services executed a 24-month agreement to provide dedicated electric hydraulic fracturing services for a leading...
Feb 04, 2020
A&D - News Briefs - October 10, 2019Privately held Royale Energy is selling non-operated Permian assets to Midland-based Vanco Oil & Gas Corp. for $1.98 million. Vanco picks up 1,525 net acres (4,726 gross) that hold Rowena field in Runnels County, Texas (473 net acres), Arledge field in Nolan County (292 net acres) and Yucca Butte field in Pecos County (760 net acres). The purchase price is subject to adjustment by agreement between Vanco and JVA Operating Co., which operates the properties. Royale’s primary operations...
Oct 10, 2019
OFS - Projects Briefs - April 01, 2019Houston-based engineering firm
KBR Inc. and Norwegian E&P company
Equinor announced the sail-away and
installation of the Johan
Sverdrup utilities and
living quarter platform in the North
Sea. K2JV, a JV of Kvaerner and KBR,
received the NOK6.7 billion ($776
million) contract for the engineering,
procurement and construction of the
ULQ platform in 2015 from Equinor,
then called Statoil. The 18,000-tonne
ULQ platform, one of the largest in the
world, will also serve as the field center
for the...
Apr 01, 2019
PS - News Briefs - January 17, 2019Chesapeake Energy’s Nwfu 26-34-
72 C TR #20H well (8,598-ft lateral; 35 frac
stages; 13.7 MMlb proppant) in Converse
County, Wyoming, tested at an IP24 of
1,899 boe/d (76% oil), or 221 boe/d per
1,000 lateral ft, from the Turner on a 32/64-
inch choke at 1,592 psi FTP. This is the
company’s second-highest IP24 in the
play, according to state data. The Bureau of Land Management
sold 20 parcels covering 7,847 acres in
Jackson, Mesa, Rio Blanco, Routt and
Weld counties, Colorado, during...
Jan 17, 2019