CM - EOG deepens spending cuts & shut-ins, stays in black in Q1 - May 2020EOG Resources Inc. announced that it had further reduced 2020 capex by $1.0 billion at midpoint to the $3.3-3.7 billion range, an overall 46% drop from original guidance. It has cut its operated rig count down to eight from 36 since the end of March and expects an average of six to run through the rest of the year. It will shut in existing wells and delay starting up almost 150 net new wells until H2. Overall, it plans to bring 485 net wells online this year, compared with the original forecast...
May 15, 2020
CM - Prices plunge, and then along comes earnings… - May 2020First-quarter earnings have been mostly painful with the writedowns of billions in impaired oil and gas assets. Exxon Mobil Corp. incurred its first quarterly loss in 32 years (PG.1), ConocoPhillips reported a $1.7 billion loss (PG.12), Hess Corp. a $2.4 billion loss (PG.12), Diamondback Energy Inc. lost $272 million (PG.14) and Concho Resources Inc. has reported quarterly losses in five out of the last 10 quarters but never even close to the almost $9.3 billion (PG.13) it lost in Q1. Reliable...
May 15, 2020
CM - EOG focuses on Delaware & Eagle Ford with 31% less to spend - April 2020EOG Resources, Inc. announced a 31% reduction of its 2020 capital plan to $4.3- 4.7 billion on March 24 to help it “weather the storms of lower commodity prices.” The lower expenses will come with by a drop in drilling activity in all operating areas. The company said it will continue to concentrate on drilling in the Delaware Basin and Eagle Ford, where it has its highest rate-of-return oil assets and the majority of its oil production. EOG anticipates output of 446,000- 466,000 bo/d this...
Apr 03, 2020
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 - 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
CM - Analyst Notes - August 02, 2019Bonanza Creek Energy, Inc. (NYSE: BCEI; $21.37-July 23; Outperform; PT-$30)
BCEI disclosed 2Q19 sales volume of approximately 24.4MBoepd, representing
18% sequential growth and exceeded our previous estimate of 21.7Mboepd. BCEI has
not changed its annual guidance of 20- 24Mboepd, and we now expect production
at near the top of the range…2Q19 lease operating expenses (LOE) were $2.87/boe,
compared to our previous estimate of $3.00/boe; cash G&A decreased sequentially by
24% to $3.61/boe,...
Aug 02, 2019
CM - Analyst Notes - July 12, 2019Berry Petroleum Co. (Nasdaq: BRY; $10.12-July 5; Buy; PT-$13)
Given the analyst day, the postponement of AB345, and business-as-usual on the
way to the company's plans for ratably drilling ~400 wells this year, we're expecting a
straightforward quarter on ops and results; TPHe in-line on both production (24.2mbpd
oil vs. Street 23.8) and capex ($49MM vs. Street $52MM). Bigger picture, we remain
constructive on the equity as it represents a unique way to gain yield (4.7%
dividend) in the...
Jul 12, 2019
CM - EOG breaking even at lower price points, spending less on F&D - June 2019EOG Resources, Inc. told investors its breakevens would trend downward while
adding more wells at lower finding and developing costs. Its breakevens have fallen from
more than $80/bbl a few years ago to $55/bbl last year to $50 this year, EVP Ken Boedeker
said at a June 18 industry conference. During the 2015-2016 downturn, EOG turned to a
premium drilling strategy with a 30%-plus after-tax return target assuming a flat oil price
of $40/bbl and gas at $2.50/Mcf.
EOG said it can add...
Jun 21, 2019
CM - Analyst Notes - May 31, 2019EOG Resources, Inc. (NYSE: EOG; $93.68-May 20; Overweight; PT-$115)
We expect EOG to outperform the peer group assuming oil prices remain near strip levels.
EOG is a top quartile producer in our “force rank” methodology reflecting the company’s strong
capital efficiency and balance sheet, and we expect the company’s growth trajectory into
2019 to remain largely intact despite the decline in oil prices given the company’s FCF
cushion. While there are concerns that the higher mix of...
May 31, 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
CM - People & Companies - April 18, 2019Altus Midstream Co. appointed
Craig Collins COO, effective April
29. He will also serve as VP of US
midstream operations of Apache Corp.
Collins was VP of midstream for Alta
Mesa Resources and VP and COO of
Kingfisher Midstream, LLC from April
2018 until April 3, when he resigned. Amplify Energy Corp. elected
Scott Hoffman to the board of directors to
replace P. Michael Highum, who resigned.
The changes became effective March 22. Andeavor Logistics LP announced
that Blane W....
Apr 18, 2019
Viking Minerals sells non-core Eagle Ford for $28 millionOklahoma City-based Viking Minerals struck a $28.3 million divestiture of non-core Eagle Ford assets in Karnes, DeWitt and Gonzales counties, Texas. The deal was announced on Sept. 9 on the website of Stephens, Inc., which assisted Viking in the sales process. The assets encompass 1,191 net royalty acres (41,000 gross) with ~200 wells in pay, 40 DUCs and permitted wells, and ~700 additional locations. Monthly PDP cash flow is $300 million, with 2H18 estimated annualized cash flow...
Sep 19, 2018
OFS People & Companies - August 21, 2018Schlumberger appointed EOG
Resources founder Mark Papa and
energy researcher Tatiana Mitrova to
its board of directors
effective Oct. 16. Papa
is currently CEO of Centennial Resource
Development and Mitrova is director of
the Energy Center at the Moscow School
of Management. Papa also resigned as
chairman of Oil States International
upon taking the Schlumberger position. Oil States International directors
elected Robert Potter as chairman
following the resignation of Mark Papa,
who...
Aug 21, 2018
PS - News Briefs - July 08, 2019North Dakota gas output hit a record
2.86 Bcf/d in April, up from 2.84 Bcf/d in
March, according to the state’s Department
of Mineral Resources. Oil production fell
571,000 bo/d sequentially to 1.39 MMbo/d. Oasis Petroleum brought online
15 wells in Q1: 12 in the Williston Basin
and three in the Delaware Basin. Overall
volumes averaged 91,700 boe/d, up
4% sequentially and up 19% YOY. CEO
Thomas Nusz said Oasis’ Williston
Basin “deep inventory and emphasis on
operating efficiency...
Jul 08, 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