EOG Resources
22 ноября, 18:25

North Dakota Oil Output Remain High, Zooms Past 1.1M Barrels

As daily output remained above 1 million barrels for the eighth month in a row, the state's total number of producing wells reached a new all-time high.

17 ноября, 08:47

Brief Study of T. Rowe Price New Era Fund (PRNEX)

T. Rowe Price New Era Fund (PRNEX) seeks to provide long-term capital appreciation

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15 ноября, 17:06

U.S. SHALE OIL PRODUCTION UPDATE: Financial Carnage Continues To Gut Industry

By the SRSrocco Report, As the Mainstream media reports about the next phase of the glorious U.S. Shale Oil Revolution, the financial carnage continues to gut the industry deep down inside the entrails of its horizontal laterals.  The stench of fracking fluid must be driving shale oil advocates utterly insane as they are no longer able to see the financial wreckage taking place in these companies quarterly reports. This weekend, one of my readers sent me the following Bloomberg 45 minute TV special titled, The Next Shale Revolution.  If you are in need of a good laugh, I highly recommend watching part of the video.  At the beginning of the video, it starts off with President Trump stating that the U.S. has become an energy exporter for the first time ever.  Trump goes on to say, "that powered by new innovation and technology, we are now on the cusp of a new energy revolution."  While I have to applaud Trump's efforts for putting out some positive and reassuring news, I wonder who is providing him with terribly inaccurate energy information. I would kindly like to remind the reader; the United States is still a NET IMPORTER of oil.  We still import nearly six million barrels of oil per day, but we export some finished products and a percentage of our shale oil production.  Thus, we still import a net of approximately three million barrels per day of oil. A few minutes into the Bloomberg video, both Pioneer Resources Chairman, Scott Sheffield, and Continental Resources CEO, Harold Hamm, explain how advanced technology will revolutionize the shale oil industry and bring down costs.  I find that statement quite hilarious as Continental Resources and Pioneer continue to spend more money drilling for oil and gas then they make from their operations.  As I stated in a previous article, Continental Resources long-term debt ballooned from $165 million in 2007 to $6.5 billion currently.  So, how did advanced technology lower costs when Continental now has accumulated debt up to its eyeballs? Of course... it didn't.  Debt increased on Continental Resources balance sheet because shale oil production wasn't profitable... even at $100 a barrel.  So, now the investor who purchased Continental bonds and debt are the Bag Holders. Regardless, while U.S. oil production continues to increase at a moderate pace, there are some troubling signs in one of the country's largest shale oil fields. Shale Oil Production At the Mighty Eagle Ford Stagnates As Companies' Financial Losses Mount It was just a few short years ago that the energy industry was bragging about the tremendous growth of shale oil production at the mighty  Eagle Ford Region in Texas.  At the beginning of 2015, Eagle Ford oil production peaked at a record 1.7 million barrels per day (mbd).  Currently, it is nearly 500,000 barrels per day lower.  According to the EIA - U.S Energy Information Agency's most recently released Drilling Productivity Report, oil production in the Eagle Ford is forecasted to grow by ZERO barrels in December: The chart above suggests that the companies drilling and producing oil in the Eagle Ford spent one hell of a lot of money, just to keep production flat.  Even though the shale oil producers were able to bring on 88,000 barrels per day of new oil, the field lost 88,000 barrels per day due to legacy declines.  We need not take out a calculator to understand production growth at the Eagle Ford is a BIG PHAT ZERO. Here are the five largest shale oil and gas producers in the Eagle Ford where: EOG Resources ConocoPhillips BHP Billiton Chesapeake Energy Marathon Oil The company that doesn't quite fit in the energy group above is BHP Billiton.  BHP Billiton is one of the largest base metal mining companies in the world.  Unfortunately for BHP Billiton, the company decided to get into U.S. Shale at the worst possible time.  BHP Billiton bought shale oil properties when prices were high and eventually had to liquidate when prices were low.  A Rookie mistake made by supposed professionals.  I wrote about this in my article; DOMINOES BEGIN TO FALL: BHP Chairman Says $20 Billion Shale Investment “MISTAKE.” I decided to take a look at the current financial reports published by the five companies listed above.  The largest player in the Eagle Ford is EOG Resources.  I went to YahooFinance and created the following Cash Flow table for EOG: In the latest quarter (Q3 2017), EOG reported $961 million in cash from operations.  However, the company spent $1,094 million on capital (CAPEX) expenditures and another $96 million in shareholder dividends.  Applying simple arithmetic, EOG spent $229 million more on CAPEX and dividends than it made from its operations.  Maybe someone can tell me how advanced technology is bringing down the cost for EOG. The next largest player in the Eagle Ford is ConocoPhillips.  If we look at ConocoPhillips net income at its different business segments, we can see that the company isn't making any money producing oil and gas in the lower 48 states: While ConocoPhillips enjoyed a $103 million profit in Alaska, it suffered a $97 million loss in the lower 48 states.  Thus, the third largest oil company in the U.S. isn't making any money producing oil and gas in the majority of the country.  According to the data, ConocoPhillips produced twice as much oil and gas in the lower 48 states then what they reported in Alaska, but the company still lost $97 million. The third largest company producing oil in the Eagle Ford is BHP Billiton.  Instead of providing financial results, I thought this chart on BHP Billiton's Return On Capital Employed was a better indicator of how bad their U.S. Shale assets were performing.  If we look at the right-hand side of the chart, BHP Billiton's shale oil resources have become one hell of a drag on the company's asset portfolio: While BHP Billiton is enjoying a healthy positive Return On Capital Employed on most of its assets, shale oil resources are showing a negative return.  Furthermore, the company makes a note to above stating, "Detailed plans to improve, optimize or EXIT."  I would bet my bottom Silver Dollar that their decision will end up "EXITING" the wonderful world of shale energy, with the sale of their assets for pennies on the dollar. Moving down the list to the next shale company, we come to Chesapeake.  While Chesapeake is the country's second-largest natural gas producer, the company has been losing money for more than a decade.  Unfortunately, the situation hasn't improved for Chesapeake as its current financial statement reveals the company continues to burn through cash to produce its oil and gas: Chesapeake's net cash provided by its operating activities equaled $273 million for the first three-quarters of 2017.  However, the company spent a whopping $1,597 million on drilling and completion costs (CAPEX).  Thus, Chesapeake spent $1.3 billion more on producing its oil and natural gas Q1-Q3 2017 than it made from its operations.  Again, how is advanced technology making shale oil and gas more profitable? If it weren't for the asset sale of $1,193 million, Chesapeake would have needed to borrow that money to make up the difference.  Regrettably, selling assets to fortify one's balance sheet isn't a long-term viable business model.  There are only so many assets one can sell, and at some point, in the future, the market will realize those assets will have turned into worthless liabilities. Okay, we finally come to the fifth largest player in the Eagle Ford.... Marathon Oil.  The situation at Marathon isn't any better than the other companies drilling and producing oil in the Eagle Ford.  According to the companies third-quarter report, Marathon suffered a $600 million net income loss: Again, we have another example of an energy company losing a lot of money producing shale oil and gas.  You will notice how high Marathon's Depreciation, depletion, and amortization are in both the third-quarter and nine months ending on Sept 30th.  While some may believe this is just a tax write off for the company... it isn't.  Due to the massive decline rate in producing shale oil and gas, PLEASE SEE the FIRST CHART ABOVE on the EAGLE FORD GROWTH OF ZERO, these companies have to write off these assets as it represents the BURNING of CASH. For example, Marathon reported cash from operations of $1,487 million for Q3 2017.  However, it spent $1,305 million on CAPEX and $128 million on dividends for a total of $1,433 million.  Thus, Marathon actually enjoyed a small $53 million in positive free cash flow once dividends were deducted.  But, that is only part of the story.  If we go back to 2005 when the oil price as about the same as it is today, Marathon was reporting quarterly profits, not losses. In the first quarter of 2005, Marathon earned a positive $324 million in net income.  It also reported a $258 million net income gain in 2004, even at a much lower oil price of $38 a barrel versus the $48-$50 during Q3 2017.  So, the Falling EROI - Energy Returned On Invested is killing the profitability of shale oil and gas companies today, whereas they were making profits just a decade ago. Now, I didn't provide any data on the other shale oil fields in the U.S., but production continues to increase in several regions, especially in the Permian.  However, one of the largest players in the Permian, Pioneer Resources, isn't making any money either.  If we look at their financials, we can see that Pioneer continues to spend more money on CAPEX than they are receiving from cash from operations: In all three quarters in 2017, Pioneer spent more money on capital expenditures than it made from its operating activities.  Pioneer spent $400 million more on CAPEX spending than from its operations for the first nine months of 2017 ending on Sept 30th.  So, here is just another example of a U.S. shale oil producer who partly responsible for the rising production in the Permian, but it still isn't making any money. Now, some investors or readers on my blog would say that the situation will get better when the oil price continues towards $60, $70 and then $80 a barrel.  Well, that would be nice, but I believe we are heading towards one hell of a market crash.  Even though some economic indicators are looking rosy, this market is being propped up by a massive amount of debt and the largest SHORT VIX trade in history.  When the markets start to go south as the massive VIX TRADE reverses... well, watch out below. Thus, as the markets crash, the oil price will head down with it.  Unfortunately, this will be the final blow to the U.S. Shale Oil Ponzi Scheme and with it... the notion of Energy Independence forever. Check back for new articles and updates at the SRSrocco Report.

08 ноября, 16:08

The Zacks Analyst Blog Highlights: Ecopetrol, Hess Midstream Partners, China Petroleum & Chemical, Noble Midstream Partners and EOG Resources

The Zacks Analyst Blog Highlights: Ecopetrol, Hess Midstream Partners, China Petroleum & Chemical, Noble Midstream Partners and EOG Resources

08 ноября, 00:01

Oil & Gas Stock Roundup: Shell, EOG, Concho Report Strong Q3

Integrated major Royal Dutch Shell (RDS.A), as well as Permian-focused energy explorers EOG Resources (EOG) and Concho Resources (CXO) reported strong Q3 results, driven by higher commodity prices.

07 ноября, 23:14

Hidden Opportunities with These Select Energy Players

Hidden Opportunities with These Select Energy Players

07 ноября, 17:23

5 Oil Stocks to Buy as Saudi Tensions Boost Prices Over $57

Though skeptics are already depicting the spike as a temporary one, several factors may combine to boost oil prices for a longer period.

07 ноября, 00:37

Top Stock Reports for Facebook, Celgene & BlackRock

Top Stock Reports for Facebook, Celgene & BlackRock

03 ноября, 19:30

Is US Outpacing OPEC in Crude Oil Export Race?

In line with its historic oil production cut accord, OPEC is reducing oil supply to major crude buyers.

03 ноября, 16:55

EOG Resources (EOG) Q3 Earnings Gain on Increased Volumes

Conducive oil and natural gas pricing environment drives EOG Resources' (EOG) Q3 earnings.

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01 ноября, 15:48

Should You Buy EOG Resources (EOG) Ahead of Earnings?

EOG Resources (EOG) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.

31 октября, 23:43

EOG Resources (EOG) Q3 Earnings: What's in the Cards?

EOG Resources (EOG) is expected to report better-than-expected results for the third quarter due to higher realized commodity prices and production.

25 октября, 16:15

Industrial-Strength Rebound for the Dow

Industrial-Strength Rebound for the Dow

09 октября, 22:19

Top Analyst Reports for Coca-Cola, BP & Alibaba

Top Analyst Reports for Coca-Cola, BP & Alibaba

29 сентября, 15:11

North Dakota Production Up in July: Will the Gain Last?

As daily output remained above one million barrels for the sixth month in a row, the state's total number of producing wells reached a new all-time high.

22 сентября, 16:00

EOG Resources (EOG) Banks on Gaut's Expertise for Growth

EOG Resources (EOG) believes that Christopher's extensive years of experience in oilfield services will benefit it.

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27 июля, 07:00

Гидроразрыв 2.0: Америка объявила о второй сланцевой революции

Нефтяным компаниям США удалось снизить себестоимость добычи углеводородовВ Америке назревает вторая сланцевая революция, с гордостью пишут заокеанские СМИ. Инвестиционные «зазывалы» обещают неслыханные доходы тем, «кто вложится в новые проекты, несмотря на недавний крах на этом рынке». Нефтяной аналитик Ник Хобге напоминает, что многие люди разбогатели, прежде чем лопнул сланцевый пузырь. Тогда акции таких компаний, как Continental, American Oil & Gas и Brigham Exploration озолотили счастливчиков. Правда, на пике сланцевой революции.«Теперь гидроразрыв вернулся, и прибыль, которую он создаст, будет даже больше, чем в первый раз», — пишет Ник Хобге. По его словам, это связано с новой технологией, получившей в американской прессе условное название «Fracking 2.0». Судя по публикациям, в США не только удешевили нефтедобычу, но и научились вторично собрать углеводороды там, где, казалось бы, уже ничего не осталось.И в самом деле, спад мировых нефтяных цен заставил ряд энергетических компаний Соединенных Штатов вложиться в разработку новых эффективных решений. В итоге добытчики сланцевой нефти оптимизировали свои затраты, и теперь бурят только там, где «это научно обосновано». Пионером в продвижении новой технологии стала компания EOG Resources Inc, которую неформально называют нефтяным Apple. Её аналитики разработали программно-аппаратное приложение iSteer, которое позволяет существенно снизить стоимость разведки, бурения и добычи нефти в сланцевых образованиях.Напомним, именно компания EOG Resources Inc получила широкую известность во время первой сланцевой революции, став первопроходцем в горизонтальном бурении, причем в плотных слоях горных пород, которые удерживают нефть и газ в крошечных порах. Тогда буровиков из EOG Resources Inc сначала называли безумцами, так как расчеты показывали очевидную убыточность этого проекта, но затем — гениями.И вот инженеры EOG Resources Inc анонсировали новую технологию, которая позволяет безубыточно работать в условиях низких цен на нефть от $ 40 до $ 50 за баррель. Первые публикации о технологии «Fracking 2.0» появились в марте-апреле этого года, но тогда не были известны детали.«Теперь стало известно, что EOG бурит в Западном Техасе горизонтальные скважины длиной более чем на одну милю в течение 20 дней, по сравнению с 38 днями в 2014 году, — пишет Ник Хобге. — Зафиксирован рекорд — всего за 101/2 дня. Невероятно. И самое главное, по цене на четверть дешевле, чем это было три года назад». Основной эффект достигается за счет снижения капитальных затрат при разведке и бурении на 25%, а также благодаря более точному определению богатых пластов, что сокращает еще 15% расходов.А инженеры из Baker Hughes Inc., к слову, сообщили об инновационных восстановительных методах на старых скважинах, которые, как правило, используются всего 9−12 месяцев. Это позволило Baker Hughes Inc увеличить до 46 месяцев эксплуатацию нефтеносного слоя и добывать в среднем дополнительно 69% нефти по сравнению с традиционной технологией. При этом стоимость восстановления не превышает $ 1,8 млн. за единицу, или 25% от цены новой скважины. Они назвали это «нокаутом» капитальным расходам.Еще две компании — Chesapeake Energy Corp. и Pioneer Natural Resources Co. — заявили, что достигли таких же результатов своим путем. Причем помимо приложения iSteer появились и другие инновации, призванные также резко снизить цену «сланца». В частности, стало известно об экспериментах со сверхтонкими скважинами в нефтеносных песках, которые позволяют получить больше нефти на каждый потраченный доллар по сравнению с традиционными методами.Понятно, что издержки на каждой скважине отличаются, но в целом у американцев есть резерв для снижения средней себестоимость добычи сланцевой нефти на 40% по сравнение с 2014 годом. Или до $ 35 за баррель, утверждает Ник Хобге. Хотя три года назад о таких цифрах даже не мечтали.И все-таки логично говорить не о второй сланцевой революции, а об эволюции, которая, кстати, не состоялась бы без новейших американских достижений в материаловедении, в приборостроении и в математическом моделировании.Напомним, в начале 2015 года эксперт Сергей Пикин, директор фонда энергетического развития, в интервью «Свободной Прессе» предупреждал, что сланец себя еще покажет. «Американцы имеют уже большой опыт в этом деле, — комментирован тогда Сергей Пикин. — Вспомним, что активное освоение сланцевой нефти началось в 2009 году, а по газу — еще раньше, в 2005 году. Понятное дело, что за это время ими достигнуты определенные результаты, поэтому вполне вероятно, что имеются наработанные „ноу-хау“. Кроме того, те, кто занимается этим бизнесом, максимально мотивированы. Так что мы может стать свидетелями новых изобретений в этой области и новых потрясений на рынке нефти».Так или иначе, но по расчетам Минэнерго США, за счет инноваций ежедневный объем производства нефти в 2018 году достигнет 9,7 млн. баррелей, отскочив от «дна» — 9,2 млн. баррелей. Следовательно, ОПЕК, и прежде всего Саудовской Аравии, придется снижать свою добычу пропорционально росту в США, чтобы сохранить текущие цены.В то же время, эти цифры свидетельствуют лишь о восстановлении нефтедобычи в Америке до уровня 2014 года. Дело в том, что большинство игроков местного сланцевого рынка признались, что снижение издержек в рамках «Fracking 2.0» не дает им надежды не то, что на рывок — даже на элементарное выживание. Им нужно, по крайне мере, от $ 55 до $ 60 за баррель, чтобы действительно началась вторая сланцевая революция. При этом успех компаний EOG Resources Inc, Chesapeake Energy Corp., Pioneer Natural Resources Co и Baker Hughes Inc они связывают с конкретными благоприятными обстоятельствами. В любом случае, надеяться на возврат высоких нефтяных цен на мировом рынке уже не приходится.https://svpressa.ru/economy/article/176439/

14 июля, 23:15

Top Research Reports for Facebook, Verizon & Merck

Top Research Reports for Facebook, Verizon & Merck

12 июля, 17:11

Stock Market News for July 12, 2017

The Dow and the S&P 500 ended nearly flat on Tuesday, while the Nasdaq posted its gain for a third consecutive session