PS - Shell won’t hit snooze again on PowerNap development - August 2019Shell made a final investment decision for its PowerNap discovery in the Mississippi Canyon area of the Gulf of Mexico. The development will be tied back to the company’s operated Olympus production hub, and production will be transported by the Shell Pipeline Co.-owned Mars pipeline. First commercial volumes are expected in late 2021, followed by a ramp to peak output of 35,000 boe/d. An estimated 85 MMboe of recoverable resources will be produced at a breakeven of $35/bbl. Located 150...
Aug 19, 2019
September 2012 saw ‘major’ activity in US dealmakingIn September 2012, oil prices were still two years away from crashing. Included in the $12.4 billion of deals that occurred that month were four billion-plus transactions: the biggest in the Gulf of Mexico, two in the Permian and one in the Rockies region. Plains Exploration and Production, which would be acquired by Freeport McMoRan only months later in a huge $16.3 billion deal, paid BP $5.6 billion...
Sep 27, 2017
Who’s Hot/Who’s Not - September 21, 2017Upgrades:
BP (BP/$36.95/$32.53/$38.68/$117.5B) from Market Perform to Outperform
by BMO Capital.
EnCana Corp. (ECA/$10.69/$8.01/$13.85/$10.21B) from Market Perform to
Outperform by Bernstein.
New Coverage:
Carrizo Oil & Gas (CRZO/$14.09/$11.10/$43.96/$1.18B) at Neutral by Citigroup.
Chesapeake Energy (CHK/$4.04/$3.55/$8.20/$3.72B)at In-line by
Imperial Capital.
Continental Resources (CLR/$37.03/$29.08/$60.30/$13.88B) at In-line by
Imperial...
Sep 21, 2017
Freeport sells shallow water Gulf of Mexico assets to CoxPrivately held Cox Oil acquired shallow water assets in the Gulf of Mexico from Freeport McMoRan, as the latter retreats from its oil and gas business to focus on its core mining operations. The deal, which closed July 31, includes Freeport’s interests in the Flatrock and Hurricane areas of the OCS-310 Tiger Shoal lease. In addition to normal pressured wells, Cox plans to further exploit high pressure, high temperature wells.The move follows Cox’s acquisition last year of 17 of the 24 fields...
Aug 15, 2017
People & Companies - April 26, 2017Bonanza Creek’s reorganization plan has been confirmed three months after filing for Chapter 11 protection. The Rockies producer expects to emerge from bankruptcy by the end of April. Camber Energy said J. Fred Hofheinz has resigned from its board. The company has no immediate plan to fill the seat. Permian-focused Centennial Resource Development hired Brent Jensen as VP and chief accounting officer to replace Jamie Wheat, who resigned effective March 24 but will remain with the...
Apr 26, 2017
Freeport-McMoRan & Pura Vida exit Moroccan license - February 9, 2017Freeport-McMoRan and Pura Vida Energy exited Morocco’s offshore Mazagan license. In 2015, the pair drilled the MZ-1 exploration well there to 6,150 m TD in order to test a Triassic sediment prospect, but the well was dry. The companies had been on the hook for a second well, but reached a $9 million settlement with ONHYM to avoid drilling. Freeport-McMoRan operated and owned 52% WI, while Pura Vida held...
Feb 09, 2017
Freeport-McMoRan sells its last major oil & gas assetFreeport-McMoRan agreed to sell the last major part of its oil and gas portfolio for up to $742 million. Sentinel Peak Resources, a newly formed portfolio company of private equity firm Quantum Energy Partners, will acquire Freeport’s onshore California oil properties with current net production of 28,000 bo/d and development opportunities that it says are attractive at current oil prices. Most of the production (18,000 bo/d) comes from the San Joaquin Basin with the rest in the Los Angeles...
Oct 14, 2016
Three of top four 2016 deals A&D now outside of PermianIn recent weeks the US upstream market took a break from high-value back and forth between the Midland and Delaware basins to deliver two multibillion deals in regions that had been largely left out of the recovery: the Marcellus and the Gulf of Mexico. Rice Energy is acquiring Marcellus rival Vantage Energy for $2.7 billion, while Anadarko is paying $2 billion for Freeport McMoRan’s deepwater GOM portfolio (page 1). It’s worth noting that with these two deals plus Range Resources’ recently...
Sep 28, 2016
Anadarko buys Freeport’s deepwater GOM portfolio for $2BFreeport-McMoRan took a big step toward winding down its oil and gas portfolio, agreeing to sell its deepwater Gulf of Mexico assets to Anadarko for $2.0 billion cash plus contingent payments. The deepwater portfolio formed the centerpiece of the global miner’s oil and gas operations after it bought Plains E&P and reacquired 1994 spinoff McMoRan Exploration in late 2012 for nearly $20 billion in cash, equity and debt. With closing slated for Q4 and recently completed Haynesville and royalty...
Sep 13, 2016
Freeport sells Congo mine to Chinese firm for $2.65 billionAs part of a divestment program aimed at slashing US$5-10 billion from its debt, Freeport-McMoRan signed a deal to sell its indirect 56% stake in the Congo’s Tenke Fungurume copper and cobalt mine to a Chinese mining and processing firm. China Molybdenum will pay $2.65 billion cash upfront plus contingent payments up to $120 million depending on metal prices in 2018-2019: $60 million if copper prices average more than $3.50/lb and another $60 million if cobalt prices exceed $20/bbl. The deal is...
May 31, 2016
No IPO for FM's O&G biz - May 26, 2016Freeport-McMoRan will not be going through with its planned initial public offering of its oil and gas unit after all. The company, predominantly a copper miner, issued a filing May 20 announcing its withdrawal of the IPO registration but said it might launch a private offering. The energy exploration and production group, which is wholly owned by Freeport-McMoRan, filed for the IPO last summer, but the oil price has fallen by 20% more since that...
May 26, 2016
Freeport-McMoRan cancels IPO of oil & gas businessFreeport-McMoRan will not be going through with its planned initial public offering of its oil and gas unit after all. The company, predominantly a copper miner, issued a filing May 20 announcing its withdrawal of the IPO registration but said it might launch a private offering. Previously, Freeport-McMoRan said it may consider a sale or joint venture for the business, which lost $4.2 billion in Q1. The energy exploration and production group, which is wholly owned by Freeport-McMoRan,...
May 20, 2016
People Briefs - April 18, 2017Cobalt International Energy president of E&P James Painter has resigned after being appointed to the post in January. Current VP of Exploration Tim Nicholson has been appointed SVP of exploration and appraisal. Nicholson has been with the company since 2005.Diamondback Energy added executive officer, SVP and VP levels to its management structure. COO Michael Hollis was promoted to the additional position of president; CFO Teresa Dick, general counsel and secretary Randall Holder, VP of...
Apr 19, 2017
People & Companies Briefs - September 14, 2016Anadarko Petroleum promoted US onshore E&P EVP Darrell Hollek to operations EVP overseeing US onshore, Gulf of Mexico and international activities. It also promoted international exploration SVP Ernie Leyendecker to international and deepwater exploration EVP to replace Bob Daniels, who is retiring later this year. International and deepwater operations EVP Jim Kleckner is also retiring. Hollek joined Anadarko in 1980 as a field engineer. Leyendecker has more than 30 years of experience and...
Sep 14, 2016
People & Companies Briefs - September 09, 2016Anadarko promoted US onshore E&P EVP Darrell Hollek to operations EVP overseeing US onshore, Gulf of Mexico and international activities. It also promoted international exploration SVP Ernie Leyendecker to international and deepwater exploration EVP to replace Bob Daniels, who is retiring later this year. International and deepwater operations EVP Jim Kleckner is also retiring. Hollek joined Anadarko in 1980 as a field engineer. Leyendecker has more than 30 years of experience and joined the...
Sep 09, 2016