Valeura Announces Increased Natural Gas Prices

CALGARY, July 31, 2018 /CNW/ – Valeura Energy Inc. (TSX:VLE) (“Valeura” or the “Company”) is pleased to announce an immediate increase in the sales price of its natural gas production in Turkey.  Boru Hatlari ile Petrol Tasima Anonim Sirketi (“BOTAS”), who own and operate Turkey's crude oil and natural gas pipeline grid, has announced that [Read More…]

Source: BOE Report

Viper Energy Partners LP, a Subsidiary of Diamondback Energy, Inc., Prices Public Offering of Common Units

MIDLAND, Texas, July 31, 2018 (GLOBE NEWSWIRE) — Viper Energy Partners LP (NASDAQ:VNOM) (“Viper”), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback”), announced today the pricing of Viper’s public offering of 9,000,000 common units representing limited partner interests at a public offering price of $31.25 per unit. The total gross proceeds of the offering (before [Read More…]

Source: BOE Report

FTS International Reports Second Quarter Financial and Operational Results

FORT WORTH, Texas–(BUSINESS WIRE)–FTS International, Inc. (NYSE: FTSI) (the “Company”) today reported its financial and operational results for the second quarter of 2018. Second Quarter 2018 Highlights Compared to the First Quarter 2018 Revenue was $493.3 million, up from $467.5 million in the first quarter Net income was $103.6 million, up from $78.7 million in [Read More…]

Source: BOE Report

2Q18 OCTG Inventory Yard Survey: Who Turned Up the Volume?

Photo Courtesy Vallourec

Photo Courtesy Vallourec

Susan Murphy PublisherDrum roll, please…the results of our exclusive quarterly OCTG inventory yard survey is here. The objective of this endeavor is always the same: to measure demand for upstream pipe throughout the supply chain across the lower 48. The question is, did 2Q18 end on a high note or were we left singing the blues? The answer is somewhat involved. A portion of our analysis that was published in this month’s Report follows. The key point is inventories ended higher than anticipated but shouldn’t be cause for concern—yet.

Q2 “prime” OCTG inventories advanced +6% in the most recent quarter with the bulk of increases driven by mill/processors beefing up reserves as a hedge against the 232. Total quarterly inventory tons this period ranked closest in count to inventories last seen in 2Q15. That was just after reaching the highest OCTG inventory volumes ever logged during 1Q15. A record build that followed on the heels of the oil market downturn and was exacerbated by an import surge in 1Q15, coupled with considerable quantities of domestic OCTG that continued after domestic manufacturers volumes reached their apex in 4Q14.

2Q18 offered a number of opportunities for historical comparisons. For starters, alloy stockpiles charged to the fore Q/Q. This was the largest quarterly jump in alloy inventories since 1Q09 when imported goods from China flooded the market. Domestic producers were also riding the high shipment tide leading up to that disconcerting state of affairs. The current alloy hike is the result of an acceleration in production from domestic mill/processors: a combination of domestically rolled pipe and heat-treated carbon imports. Inventories of casing also registered a hefty climb in 2Q18, posting the largest quarterly increase (outside of third quarter adjustments) since 2Q10 when the market was climbing out of the recession. Seamless products came in third on the list of big movers this quarter; the greatest Q/Q increase since 1Q09. Carbon materials were the only product that lost ground (again) this quarter, posting a nominal decrease in Q2.

We’ve laid out some of what took place this past quarter from a historical perspective now let’s use what we know to analyze what it means for the coming months. Inventory doesn’t occur in a vacuum, there are numerous factors that lead to the changes we report. The threat of the 232 decision (pre-March 2018) had the effect of fueling a resurgence of imported OCTG as well as lighting a fire under domestic mills that saw the potential for shoring up market share. All the while oilfield activity has remained steady, propped up by healthy commodity prices making it challenging to predict the impact on inventories heading into Q2. Throughout Q2 we’ve reported a “time out” of sorts relative to OCTG pricing. The apparent lull in buying has a great deal to do with advance purchases (pre-232) of pipe, which isn’t necessarily a bad thing. Buyers sitting on adequate supplies are averse to buying “high,” preferring to wait until the market acquiesces to their thrift, which is holding OCTG pricing hostage for the time being. Pipe mills possessing sizable inventories are particularly sensitive to fluctuations in the buying cycle as they are eager to fill available capacity. Meanwhile, average rig counts continue to crawl upwards but the slope of the rig count has begun to flatten.

All of these forces pressure suppliers to work even more aggressively to reduce inventories in view of presumed lower year-end drilling activity alongside exhausted Capex budgets and ad valorem taxes. Plus, the current delta between ERW prices and welded raw material costs (HRC) doesn’t incentivize domestic welded mills to add shifts. When you further consider the tons that will be eliminated from this year’s OCTG import totals, the potential for supply disruptions or marked drawdowns in inventory become apparent—and more amplified if commodity prices and oilfield activity continue strong. Clearly a mixed bag of possibilities at play for the back half of the year. Buyers beware!

If the projected Y/Y increase in US Capex and sustained $60+/bbl WTI forecasts hold true, chances are we’ll end the year on a good note in any case: music to our collective ears.

Photo Courtesy Vallourec

Toscana Energy Announces Second Quarter 2018 Results

CALGARY, Alberta, July 31, 2018 (GLOBE NEWSWIRE) — Toscana Energy Income Corporation (“Toscana” or the “Corporation”) (TSX: TEI) announces financial and operating results for the second quarter ended June 30, 2018. Financial and operating results: This news release summarizes information contained in the Condensed Consolidated Interim Financial Statements (unaudited) and Management’s Discussion and Analysis (“MD&A”) for the [Read More…]

Source: BOE Report

WildHorse Resource Development Corporation Announces Cash Dividend on Series A Perpetual Convertible Preferred Stock

HOUSTON–(BUSINESS WIRE)–WildHorse Resource Development Corporation (NYSE:WRD) today announced that the Board of Directors has declared an aggregate quarterly dividend of $6.756 million or $15.53 per share on its 435,000 shares of 6.0% Series A Perpetual Convertible Preferred Stock. WRD elected to pay the dividend in cash. The dividend is for the period beginning on May [Read More…]

Source: BOE Report

Pioneer Natural Resources Company Announces Sale of West Panhandle Assets for $201 Million

DALLAS–(BUSINESS WIRE)–Pioneer Natural Resources Company (NYSE:PXD) (“Pioneer” or “the Company”) today announced that it has signed a purchase and sale agreement with an undisclosed buyer to sell all of its assets in the West Panhandle field in Texas for $201 million, before normal closing adjustments. The transaction is expected to close during the third quarter, [Read More…]

Source: BOE Report

Crestwood Announces Second Quarter 2018 Financial and Operating Results; Provides Strategic Delaware Basin and Powder River Basin Expansion Updates; Divests Non-Core West Coast NGL Assets

Adjusted EBITDA Increased 6% Year-over-Year Driven by Outperformance in G&P and MS&L Segments 2018E Adjusted EBITDA Guidance Range Tightened Upward to $400 Million to $420 Million Following Strong Year-to-Date 2018 Results and Divestiture of West Coast NGL Assets HOUSTON–(BUSINESS WIRE)–Crestwood Equity Partners LP (NYSE: CEQP) (“Crestwood”) reported today its financial and operating results for the [Read More…]

Source: BOE Report

Northern Oil and Gas, Inc. Announces the Largest Acquisition in the Company’s History and Preliminary Second Quarter 2018 Production in Excess of 21,000 Boe per day

MINNEAPOLIS–(BUSINESS WIRE)–Northern Oil and Gas, Inc. (NYSE American: NOG) announced today that it has entered into a definitive agreement with W Energy Partners for the largest acquisition in Northern’s history. At closing, the acquisition will represent approximately 6,750 barrels of oil equivalent (Boe) per day of production and 10,600 net acres in the core of [Read More…]

Source: BOE Report

Baytex Reports Q2 2018 Results

CALGARY, Alberta, July 31, 2018 (GLOBE NEWSWIRE) — Baytex Energy Corp. (“Baytex”)(TSX, NYSE: BTE) reports its operating and financial results for the three and six months ended June 30, 2018 (all amounts are in Canadian dollars unless otherwise noted). “We continued to deliver on our operational and financial targets in the second quarter, which included [Read More…]

Source: BOE Report

Report for the six months ended 30 June 2018

Record high quarterly EBITDA and operating cash flow. Production above guidance. Full year guidance increased to 78–82 Mboepd from previous guidance of 74–82 Mboepd. Operating cost of USD 3.30 per barrel for the first six months 2018. Full year guidance reduced to below USD 4 per barrel. Dividend of SEK 4 per share distributed on [Read More…]

Source: BOE Report

LINN Energy Announces Event Reminder for Investor Conference Call Relating to Roan Resources and Presentation Availability

HOUSTON, July 30, 2018 (GLOBE NEWSWIRE) — LINN Energy, Inc. (OTCQB:LNGG) (“LINN” or the “Company”) announces today presentation materials for the upcoming conference call to discuss the strategic and financial outlook of Roan Resources LLC (“Roan”) as it relates to LINN’s 50% equity interest in Roan are now available on the company’s website at the [Read More…]

Source: BOE Report