PS - Bruin completes six-well pad, halts D&C operations - June 2020In McKenzie County, North Dakota, Bruin E&P Partners completed the FB Bonita #152-93-9B-10-9T targeting the first bench of the Three Forks. The well was completed with a 10,038-ft effective lateral fracked with 9.9 MMlb of proppant (987 lb/ft). During a 24- hour test, it flowed 4,796 boe/d (89% oil), or 478 boe/d per 1,000 lateral ft, on a 50/64-inch choke at 2,250 psi FCP, which places it in the company’s top quartile for IP24s. Five other wells were completed on the same pad during Q1....
Jun 24, 2020
BS - Bruin completes six-well pad, halts D&C operations - June 16, 2020In McKenzie County, North Dakota, Bruin E&P Partners completed the FB Bonita #152-93-9B-10-9T targeting the first bench of the Three Forks. The well was completed with a 10,038-ft effective lateral fracked with 9.9 MMlb of proppant (987 lb/ft). During a 24-hour test, it flowed 4,796 boe/d (89% oil), or 478 boe/d per 1,000 lateral ft, on a 50/64-inch choke at 2,250 psi FCP, which places it in the company’s top quartile for IP24s. Five other wells were completed on the same pad during Q1....
Jun 16, 2020
OFS - NOV issues $500MM in 2029 notes to help redeem 2022 notes - November 2019National Oilwell Varco completed a public offering of $500 million aggregate principal amount of 3.65% senior unsecured notes due 2029 at 99.265. The company grossed $496 million from the offering, and the yield to maturity for buyers will be 3.688%. Final pricing on the issue was a 190 bps spread over benchmark. The BBB+ issuer will use net proceeds plus cash on hand or borrowings from its revolving credit facility to redeem a portion of its 2.6% senior notes due 2022, of which $1.4...
Nov 19, 2019
CM - NOV sells $500MM in new notes to redeem 2022 debt - November 2019usaNational Oilwell Varco, Inc. completed a public offering of $500 million aggregate principal amount of 3.65% senior unsecured notes due 2029 at 99.265. The company grossed $496.33 million from the offering, and the yield to maturity for buyers will be 3.688%. Final pricing on the issue was a 190 bps spread over benchmark. The BBB+ issuer will use net proceeds plus cash on hand or borrowings from its revolving credit facility to redeem a portion of its 2.6% senior notes due 2022, of...
Nov 15, 2019
IS - High-yield buyers embrace Pemex’s $7.5 billion float - September 2019Mexico’s national oil company Pemex issued three US dollar-denominated tranches worth an aggregate $7.5 billion into the global debt markets on Sept. 12. Already hugely indebted with $87 billion principal amount of bonds and notes outstanding and another $21 billion owed through term loans and capital leases, the BBB+ rated company undertook what it called “the largest refinancing effort” in its history. It found a ready and willing market from high-yield investors for its package of...
Sep 24, 2019
OFS - GE rejects allegation that it is hiding losses from BHGE sale - August 2019A market watchdog who helped expose Bernie Madoff’s Ponzi scheme accused General Electric of an accounting fraud that covers up billions in losses through its stake in Baker Hughes, a GE company. The conglomerate vehemently denied the allegations. Investors and financial analysts seemed largely to shrug off the allegations of deception. GE shares closed lower 11% on Aug. 15, when the report came out, but rose 10% the next day. “GE’s $38 billion in accounting fraud amounts to over 40% of...
Aug 28, 2019
OFS - Upcoming Q2 earnings seem unlikely to show a rebound - July 2019Signs are pointing to another
disappointing earnings season in oilfield
services with indications that Q2 onshore
drilling performed worse than expected.
However, earnings reports are
expected to show pockets of
onshore pricing strength.
Patterson-UTI’s rig count offered one
indicator that Q2 was worse than expected,
noting that it averaged 150 rigs operating in
June and 158 for Q2 (PG.9). Drillinginfo’s
rig count puts the number lower—133 as
of July 11 (PG.11). In April, CEO...
Jul 16, 2019
IC -Saudi Aramco launches historic $12B, five-tranche offering - April 2019Saudi Aramco hit global debt markets for the first time on April 9 with $12 billion
principal amount of US dollar-denominated bonds across five tranches in a process that
drew a record-breaking $100 billion of orders from investors. The company opened up
the sale to investors the day before, started a pricing process that didn’t stray
far from the Saudi sovereign curve and had already received more than $30
billion in indicative orders across a series of roadshow meetings in Europe,
Asia and...
Apr 10, 2019
IS - Moody’s warns of violence hurting business in Mexico - March 2019Ratings agency Moody’s warned
that violent crime was hurting Mexican
businesses and could imperil tourism and
the energy industry. The warning comes
as oil companies face the risk of robbery
and violence against its staff in Mexico
and crime syndicates are illegally tapping
into pipelines, stealing oil and fuel and
leaving companies liable for explosions
from the damaged infrastructure.
Moody’s notice also comes after
Standard & Poor’s downgraded the
country’s outlook to “negative”...
Mar 14, 2019
Mexico plans $3.9B bailout to strengthen Pemex’s financesMexico will inject $3.9 billion into its struggling state oil company Pemex in an effort
to strengthen its finances and prevent its credit ratings from reducing the company’s debt
to junk status. Pemex, which has traditionally been a source of revenue for the government,
is now troubled with falling oil production, corruption, high labor costs and
fuel theft. It has $106 billion in debt, the largest of any Latin American stateheld company, and is scheduled to make more than $27 billion in debt...
Feb 27, 2019
Indian firms sell nearly $2B in $US-denominated debtJanuary was a busy month for Indian energy bond issuers, with three of the subcontinent’s
larger state-owned oil companies selling debt into global markets, apart from the usual array
of short-term zero coupon instruments sold locally, typically to finance commercial paper.
State-owned Indian Oil Corp. launched a $900 million aggregate principal amount
of 4.75% senior unsecured notes due 2024, bringing its notes and bonds outstanding to
about $4 billion. The company had anticipated a launch in...
Feb 06, 2019
Indian Oil reported to be prepping up to a $1.5B bond floatState-owned Indian Oil Corp. Ltd. is preparing to raise from $750 million to $1.5
billion on the global bond market, according to reports sourcing investment bankers on
Jan. 4. Terms and maturity of the would-be US dollar-denominated bonds have not yet
been made available. As reported at the halfway mark of its FY19 at Sept. 30, IOC had
just over $3 billion in long-term
debt outstanding.
Credit agencies Moody’s
and Fitch gave the bonds ratings of Baa2 and BBB-, respectively, equating...
Jan 16, 2019
Russia’s oil production hits pre-Perestroika high at 11.1MMboRussian oil production came in at its highest level in 2018 since the dissolution
of the Soviet Union in 1991. Despite production limits in tandem with OPEC, average
Russian output of 11.16 MMbo/d was up 1.6% from 2017 output, closing in on Russia’s
all-time peak production of over 11.4 MMbo/d in 1987, as reported by BP.
Russian volumes were
capped during 1H18 because
of the agreement it made with
OPEC to support market rebalancing, but production cuts rolled back once the...
Jan 16, 2019
CEFC Energy sub defaults on $327MM in bond paymentsCEFC Shanghai International Group missed payments on bonds worth RMB 2.09 billion ($327 million) after its deal to acquire 14.16% of Rosneft for $9.1 billion collapsed earlier this month. On May 22, the subsidiary of China CEFC Energy was considered to be in default on the debt instruments after issuing a payment warning on May 14. It’s the first time the company has missed bond payments, and the default immediately triggered a cross-default of its U.S.$250 million notes. The...
May 24, 2018
MI - Finance Briefs - September 25, 2018Targa Resources will issue up to
$750 million of common stock in an atthe-market
public offering. The shares will
be issued through a collection of
18 sales agents who will collect
a 2.0% fee. Targa said it will
use the proceeds for general corporate
purposes. Its SEC filing noted it had $160
million of outstanding borrowings under
its credit facility, $350 million under
its revolver and $350 million under its
accounts receivable securitization facility. Enterprise Products...
Sep 25, 2018