CS - Alberta producers dodging limits with new wells & crude-by-rail
- November 2019As of Nov. 8, Alberta producers are able to drill new conventional oil wells unrestricted by the curtailment program, although existing wells will still be affected. The province made the change to drive investment, increase drilling activity and support economic growth. “Companies are currently making investment decisions and we want those dollars and jobs to be in Alberta,” Energy Minster Sonya Savage said. Alberta produced 480,000 bo/d of conventional oil in September, of which...
Nov 13, 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 - Analyst Notes - October 4, 2019Berry Petroleum Co. (NYSE: BRY; $9.36- Sept. 30; Buy; PT-$14) Looking ahead to 2020, we think there is downward bias to production estimates, but with less spending, when contemplating entering 2020 at 3 rigs, the industry’s general move towards reduced growth, and BRY’s unchanged focus on shareholder returns. We model ~10% y/y boe growth (to 31mboepd; 27.6mbpd oil) for ~$180MM in spending, which compares to consensus ~14% growth (to 32.5mboepd; 28.4mbpd oil) for $205MM in capex. Name...
Oct 04, 2019
CM - Analyst Notes - April 18, 2019Callon Petroleum Co. (NYSE: CPE; $7.82-April 10; Outperform; PT-$15)
We are maintaining our Outperform rating and one-year price target of $15 on CPE
shares. On 4/8/19, after market close, CPE announced the sale of its Ranger assets. The
agreement gives CPE the potential to realize incremental cash payments of up to $60MM
based upon future commodity prices (upside participation starting at the $60/Bbl WTI).
The company has expressed its intention to monetize this asset in the past and...
Apr 18, 2019
CM - Analyst Notes - March 28, 2019Abraxas Petroleum Corp. (Nasdaq: AXAS; $1.34-March 13; Buy; PT-$3.80)
4Q18 EPS/EBITDA of $0.02/$20.1MM…beat our estimate on average realized
price (12%) and production tax (-7%). Pre-released 4Q18 production (1/29/19)
increased 19% y-y and 4% q-q to 10.5 MBoepd, 2% above/9% below prior SF/
consensus. Production was negatively impacted by frack protect
shutins, gas flaring and voluntary production curtailment due to a
high December basis differential in the Williston Basin. 4Q18 capex
of...
Mar 28, 2019
Canada’s crude-by-rail reaches record 330,402 bo/dnewCanada’s strong oil production and limited pipeline capacity continue to create a rising demand for crude by rail. Exports of crude by rail reached 330,402 bo/d in November, the ninth consecutive month that exports have risen to a record, according to statistics from the National Energy Board. The record November export statistic was announced in late January after the government-mandated production cuts of 325,000 bo/d took effect on Jan. 1. The production cuts sparked a rally in...
Feb 12, 2019
Imperial profits up 55% to $516MM despite upstream lossImperial Oil’s downstream and chemical operations reported a strong Q1,
offsetting upstream losses the company incurred because of challenges in moving its
production to market. Like many of its peers, Imperial has been affected by limited
takeaway capacity from Canada’s major production areas. Nevertheless,
Imperial’s other segments helped lift the company’s net income to $516
million from $333 million a
year ago. Revenue of $7.9 billion grew
from $7.2 billion one year ago.
CEO Rich...
May 18, 2018
People & Companies - February 28, 2018Frontera Energy Corp announced
the resignation of CFO Camilo McAllister
effective March 9. The company retains
a search firm to find a new CFO but
corporate finance director Alejandro
Piñeros will take on the role in the interim. PentaNova Energy Corp named
Ralph Gillcrist as CEO and President,
Alan Aitchison as COO and Rafael
Orunesu as VP, business development
and country manager, Argentina. Gillcrist
is also named to the company’s
board. Previously, he was
CEO of Petroamerica...
Feb 28, 2018
Analyst Takes - February 26, 2018Bonavista Energy Corp. (TSX: BNP; $1.43 – Feb. 7; Equal Weight; PT: 2)Looking ahead, the weakness in Canadian gas prices has led Bonavista to adopt a defensive approach, acknowledging that investment returns are modest at today's prices, although this is partially offset by hedges on 50% of 2018 gas production at $3.07/mcf. The 2018 capital budget of $160-180mn (~70% of cash flow), aims to sustain production near 2017 levels, which seems reasonable considering current volumes in the...
Feb 26, 2018
People & Companies - February 26, 2018Arctic Hunter Energy announced
the appointment of Gord Steblin to the
company’s board. He replaces Ray Lee,
who has served on the board since 2012,
but resigned to pursue other activities.
Steblin continues to hold his position
as CFO to the company. Previously, he
served as CFO of Palisades Ventures Inc. Cobra Venture Corp. announced
the appointment of Stuart Ross to the board,
replacing Reid MacDonald. Ross has
held senior officer and director positions
at several public companies...
Feb 26, 2018
Kinder Morgan’s Canadian unit files for an IPO just in caseKinder Morgan, Inc. is leaning toward an option of selling restricted shares in a portfolio of Canadian assets via an initial public offering in newly formed Kinder Morgan Canada (KMC) to finance its C$7.4 billion ($5.49 billion) Trans Mountain pipeline expansion project. The company would retain a majority stake in the new Canadian unit and transfer 12 strategic energy infrastructure assets and interests across Western Canada to a limited partnership, which will be owned by both Kinder Morgan...
May 10, 2017
PLS brings Dealmakers and capital providers to Dallas July 27The oil and gas asset marketplace is again heating up as prices rise and stabilize, creating the perfect opportunity for buyers, sellers and capital providers to meet at PLS’ next Dealmakers Prospect & Properties Expo in Dallas on Tuesday, July 27. Direct, face-to-face communication is the best way to monetize non-core assets or evaluate the best choices for new acquisitions. That’s why Dealmakers slots are filling up fast.Dealmakers is expected to attract more than 60 exhibitors and...
Jul 13, 2016
Canadian Oil Sands’ board urges rejection of Suncor bidSuncor Energy’s unsolicited takeover offer of $6.6 billion for Canadian Oil Sands is meeting stiff resistance from the board, which has unanimously recommended that shareholders reject the bid. The board has further instituted a shareholder-rights plan, more commonly and dramatically referred to as a poison pill, complicating Suncor’s path to an acquisition.Canadian Oil Sands received Suncor’s offer of an all-equity deal swapping shares at a rate of 0.25 Suncor shares for each...
Oct 20, 2015
Who’s Hot, Who’s Not - June 5, 2015Upgrades: • Gulfport Energy (GPOR/$44.41/$35.00/$65.87/$4.23B) from Market Perform to Outperform by Wells Fargo. • HollyFrontier (HFC/$40.94/$30.15/$51.31/$7.87B) from Hold to Buy at TheStreet Ratings. • Nordic American Tanker (NAT/$13.18/$6.95/$13.33/$1.17B) from Hold to Buy by TheStreet Ratings. • Occidental Petroleum (OXY/$78.37/$71.70/$101.96/$59.44B) from Hold to Buy by Deutsche Bank. • Seventy Seven Energy (SSE/$5.92/$2.79/$28.34/$331.06M) from Hold...
Jun 05, 2015
Who's Hot, Who's Not - April 28, 2014Upgrades:• Anadarko (APC/$100.19/$73.60/$103.50/$50.01B) from Underweight to Overweight by J.P. Morgan.• Baker Hughes Incorporated (BHI/$69.77/$43.34/$70.91/$30.36B) from Neutralto Buy by Global Hunter.• Basic Energy (BAS/$27.93/$11.06/$29.61/$1.08B) from Sell to Hold by Wunderlich.• Cabot Oil & Gas (COG/$37.97/$31.79/$41.78/$15.94B) from Hold to Buy by Societe Generale.• Carbo Ceramics (CRR/$136.66/$62.11/$144.35/$3.12B) from Neutral to Buy by DA...
Apr 28, 2014