OFS - People & Companies - June 10, 2020Seabed services provider Acteon Group announced its new CEO will be Carl Trowell, former CEO of Ensco. Trowell joined Ensco as CEO in 2014 from Schlumberger. When Ensco and Rowan Cos. merged in 2019 to create Valaris, he was named executive chairman as Rowan’s Thomas Burke became as CEO. Acteon CEO Richard Higham stepped down June 1 after 30 years with the UK-based company but remains on the board. Aker Solutions CFO Ole Martin Grimsrud gave notice that he will leave the company Sept. 1...
Jun 10, 2020
CM - Ultra Petroleum swapping $2B in debt as it returns to bankruptcy - June 2020Ultra Petroleum Corp. filed for Chapter 11 bankruptcy protection on May 14, the second time in four years for the Powder River Basin-focused gas producer. This time, Ultra came to court with a prepackaged plan to equitize or eliminate its $2.0 billion debt. The company incurred most of the current debt when it emerged from the previous bankruptcy with $2.98 billion in new funding. The new petition was made after the company missed a $13 million interest payment. Second Chapter 11s by the...
Jun 05, 2020
CM - People & Companies - April 3, 2020Amazing Energy Oil and Gas Co. named Benjamin Jacobson III CFO effective Feb. 13, succeeding Marty Dobbins, who resigned. Prior to joining Amazing Energy, Jacobson co-founded ICP, LLC, which invests in E&P companies. Apache Corp. appointed Clay Bretches EVP, Operations, a promotion from SVP Operations. He will also continue to serve as CEO and a director of Apache subsidiary Altus Midstream Co., which he has done for over a year. Basic Energy Services, Inc. has reconfigured its...
Apr 03, 2020
CM - PDC launches buyback offer on $550MM of assumed SRC debt - January 2020PDC Energy, Inc. has offered to buy back all of the $550 million principal amount outstanding of the 6.25% senior notes due 2025 at 101 that it assumed from SRC Energy Inc., according to a Jan. 17 purchase offer and letter of transmittal that expires Feb. 18. PDC closed the acquisition of SRC three days earlier for $1.015 billion in stock and the assumption of $685 million of net debt. Once the 2025 notes are repurchased, SRC’s more expensive 9% debt, of which there is about $81 million...
Jan 31, 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 - Noble reduces 2019 capex total; Leviathan 96% complete - November 2019Noble Energy, Inc. now expects 2019 capital expenditures to be $2.3 billion, or up to $200 million below its initial forecast. It attributes the decrease to lower planned activity and completion activities at the Leviathan gas field, offshore Israel, which is 96% complete with total gross capital for the project reduced by $150 million to $3.6 billion. Organic capex in Q4 is expected to be in the $425-475 million range after totaling $556 million in Q3, which was 12% off midpoint guidance. The...
Nov 15, 2019
CM - Analyst Notes - November 15, 2019Chesapeake Energy Corp. (NYSE: CHK; $1.28-Nov. 6; Sell; PT-$0) With our model now updated to reflect the company’s 2020 outlook as we see $1,367MM capex /423mboepd /114mbopd, our 3P NAV falls to $0/shr at a LT price deck of $49.74 WTI / $2.45 HHUB / $55.59 Brent and warrants a downgrade to Sell. While we don’t expect this move to come as a surprise given balance sheet issues, the going concern warning in the most recent 10-Q highlighted a declining leverage covenant that may be...
Nov 15, 2019
CM - Analyst Notes - October 25, 2019Callon Petroleum Co. (NYSE: CPE; $3.82-Oct. 21; Hold; PT-$7) With the quarter essentially out of the way, we’re looking forward to additional commentary on 2020 during the upcoming conference call. Given the preliminary 2020 outlook had a FCF breakeven of ~$50/bbl and the company expects $300MM of FCF through 2021 at $55/bbl, we’ll be looking to see how plans may potentially change with our price deck of ~$51/bbl for 2020 and ~$50/bbl in 2021+, particularly how management plans to...
Oct 25, 2019
CM - Noble Energy offering raises $1B for redemption of 2021 notes - October 2019Noble Energy, Inc. priced an offering of $500 million aggregate principal amount of 3.25% senior notes due 2029 at 99.982 and $500 million of 4.2% senior notes due 2049 at 99.930 on Sept. 24. The 2029 notes have a yield to maturity of 3.252% while the 2049s provide a 4.204% yield to maturity. The offering closed Oct. 1 and the company will use proceeds to redeem all of the $1 billion outstanding of its 4.15% senior notes due 2021. Noble commenced the tender offer for the 2021 notes on...
Oct 04, 2019
CM - People & Companies - October 4, 2019Alta Mesa Holdings GP, LLC announced that interim CEO James T. Hackett resigned from that role on Sept. 10 but will continue as executive chairman of Alta Mesa Resources, Inc. The GP is the general partner for Alta Mesa Holdings, LP and filed for bankruptcy together with Alta Mesa Resources. Basic Energy Services, Inc. announced that president, CEO and director TM Roe Patterson is transitioning away from the company but will stay through the appointment of his successor. Also,...
Oct 04, 2019
CM - Analyst Notes - August 26, 2019Bonanza Creek Energy, Inc. (NYSE: BCEI; $22.03-Aug. 9; Outperform; PT-$30) BCEI reported adjusted EPS of $1.62, CFPS of $2.68, and adjusted EBITDA of $56mn, exceeding consensus estimates of $1.46, $2.62, and $55mn, respectively. The company pre-announced production volume and LOE, and other costs or revenue items were consistent with our estimates. Realized oil price of $54.10/bbl was consistent with our estimate, the realized gas price of $1.94/mcf was 10% better, and NGL of $11.66/bbl...
Aug 26, 2019
OFS - Analyst Notes - May 14, 2019Flotek Industries (NYSE: FTX; $3.33-May 9; Neutral)FTK continues to fundamentally reshape its business with the recent divestiture of
the CICT business, intense focus on operational improvements to the now standalone
Energy segment, and new capital committee. We think the capital committee’s
decision to restrict capital spending in order to preserve cash while it focuses
on improving margins is the right move due to the significant amount of time a
turnaround may take. The focus on...
May 14, 2019
CM - Analyst Notes - May 09, 2019EOG Resources, Inc. (NYSE: EOG; $89.17-May 3; Buy; Target-$97)
Oil volumes of 436mbpd beat consensus 433, while total production of 774mboepd
beats TPHe 765/Street 769. Capex of $1,732MM, excluding cash acquisitions of
$321MM, screens well below TPHe $1,837MM/Street $1,818MM on 177 net TILs vs
TPHe 173. Q2 oil midpoint of 451mbpd relatively in-line with consensus 450, though
capex midpoint of $1.7B screens above TPHe $1,475MM/Street $1,557MM. No change
to FY'19 budget or production...
May 09, 2019
MI - People & Companies - February 26, 2019Enbridge appointed Teresa
Madden and Susan Cunningham as
directors. Most recently, Madden was
working as EVP and CFO of Xcel Energy,
and Cunningham was working as EVP
of Noble Energy. Boardwalk Pipeline Partners
promoted Mercy Kamps to SVP of human
resources, communications and investor
relations. Mercy previously served as
Boardwalk’s VP, assistant general counsel,
and led the legal operations team. Chevron Corp. announced its
EVP of downstream and chemicals,
Pierre Breber,...
Feb 26, 2019
A&D - Analyst Notes - January 30, 2019Devon Energy (DVN; $27.17-Jan. 22; Buy; PT-$40)
We believe the STACK would be the next asset on the chopping block – in our
conversation, DVN: (1) seemed less likely to rein in Rockies activity, which is on track to
accelerate to 4 rigs (from 2 prior), a level of activity sufficient for a dedicated frac crew;
and (2) voiced hesitation to pullback in the Delaware, its most prolific and
fastest rate of change asset which has featured monster well results in recent
months as the company...
Jan 30, 2019