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360 Articles

Valuations of Appalachian E&Ps Could Start to Surpass the Permian Herd

Valuations of Appalachian E&Ps Could Start to Surpass the Permian Herd

Pipeline constraints limiting the value of Appalachian operators It’s a Wall Street quandary. It is no secret that the Permian has become the hottest play in the United States with E&Ps competing to acquire acreage, but the companies operating there may not always attract the most attractive multiples from investors. In January, EnerCom Analytics took an in-depth look at what[Read More…]

The Best Acquisitions Are Not All in the Permian: a Comparison of 4 U.S. Deals

The Best Acquisitions Are Not All in the Permian: a Comparison of 4 U.S. Deals

Markets reward companies making good transactions, but sometimes even the Permian can’t move the needle The most recent downturn in oil and gas prices has forced the industry to find the most economic acreage available in order to generate returns and attract investors. It’s no secret that for many companies, that has meant buying Permian acreage, particularly the stacked zones[Read More…]

Utica Wells Producing 4.2x More than in January 2014, Beating Permian Efficiencies

Utica Wells Producing 4.2x More than in January 2014, Beating Permian Efficiencies

Despite relatively low rig activity, the Utica shows the strongest gains in production efficiency since January 2014 Baker Hughes Industries (ticker: BHI) released its weekly update on the number of rigs operating in the United States Friday, showing ten more rigs active in the country from last week. The Permian remains the most active basin in the country, but despite[Read More…]

What Does a Growth Company Look Like Following the Downcycle?

What Does a Growth Company Look Like Following the Downcycle?

Investors valued debt-adjusted growth even more in 2016 The crash in oil prices which started at the end of 2014 exposed a number of oil and gas companies that had sacrificed their balance sheet in the name of growth. Many were left over-levered and forced to sell assets or file for bankruptcy in order to make it through the ensuing[Read More…]

Will Increased Oil Hedging Hold Prices Down?

Will Increased Oil Hedging Hold Prices Down?

With Physical Hedging on Rise, Production Response May Weaken With OPEC and non-OPEC production cuts on the horizon (although not guaranteed), institutions exposed to oil have shifted their outlooks for price risk, as reflected in their current positions in NYMEX WTI futures and options. As the WTI forward curve has shifted into backwardation, analysts are calling for swollen inventories to[Read More…]

A Look at Key Midland Players

A Look at Key Midland Players

Midland Basin E&Ps Set to Benefit From Play’s Massive Resources It’s no secret the Permian Basin has enough oil to produce for many years ahead. On November 15, USGS estimated that the Wolfcamp Shale of the Midland Basin alone held an estimated mean 20 billion barrels of oil, 16 trillion feet of associated natural gas, and 1.6 billion barrels of[Read More…]

December 19, 2016 - 11:00 am 360 Articles, Analytics, Closing Bell Story, E&P
OPEC Cut Good, Demand Growth Better

OPEC Cut Good, Demand Growth Better

OPEC Production Cut of 1 MMBOPD Would Raise Oil Prices About $3; Equal Demand Growth Would Add another 4$ As OPEC’s November 30 meeting in Vienna draws closer, the outlook for a production cut agreement is mixed. Sentiment has been positive today with WTI rising 5.2% to above $45 after falling 4% in previous trading sessions. A positive report from[Read More…]

November 15, 2016 - 5:30 pm 360 Articles, Analytics, Closing Bell Story, International, OPEC
Bam! It’s Earnings Season Again – Q3’16 Estimates

Bam! It’s Earnings Season Again – Q3’16 Estimates

EnerCom, Inc. compiled third quarter earnings per share, revenue, EBITDA and cash flow per share analyst consensus estimates on 163 E&P and OilService companies in our database. Click here for EnerCom’s full chart of estimates. The median OilServices company earnings estimate for the quarter ending September 30, 2016, is ($0.11) per share compared to actual earnings per share of ($0.19) and[Read More…]

October 26, 2016 - 6:35 pm 360 Articles, Analytics, Closing Bell Story, Earnings
Source: Encana; Sound wall around DJ Basin well site rig niobrara colorado

Capital Investment Spending: The Times They are a Changin’

Come writers and critics Who prophesize with your pen And keep your eyes wide The chance won’t come again. Nobel Prize winner Bob Dylan must have been an oilman in his youth.  How could he have been so prescient to know about OPEC’s November 27, 2014 decision back in 1964?  Just in case you’re unfamiliar with the ditty, here’s the[Read More…]

October 20, 2016 - 10:00 am 360 Articles, Analytics, Closing Bell Story, E&P
The Oil & Gas Industry is not Running out of Ideas

The Oil & Gas Industry is not Running out of Ideas

An EnerCom Special Report: Technology is Driving Returns Parke A. Dickey, petroleum geologist, once said, “We usually find oil and gas in new places with old ideas. Sometimes, also, we find oil and gas in an old place with a new idea, but we seldom find much oil and gas in an old place with an old idea. Several times[Read More…]

October 19, 2016 - 3:41 pm 360 Articles, Analytics, Closing Bell Story, E&P
Source: Company Presentations

E&Ps Implementing Variety of Hedging Strategies

Hedging programs that E&Ps have in place in 2016 vary considerably. The chart below shows the range of oil and gas production for several E&Ps covered by hedging contracts. Pioneer Natural Resources (ticker: PXD) and Cimarex Energy (ticker: XEC) have hedged the largest portions of their remaining production at 85/75 and 80/90 percent, respectively, for oil and gas. This chart[Read More…]

October 18, 2016 - 1:59 pm 360 Articles, Analytics, Chart of Week, Closing Bell Story, E&P, Finance
E&Ps with the Best Capital Yields Grow 1% Since 2014, Outperform Peers by 45%

E&Ps with the Best Capital Yields Grow 1% Since 2014, Outperform Peers by 45%

Companies Generating OCF from Cash Capex Thrive During the Downturn With the second anniversary of the oil price downturn nearing, KLR Group decided to take a look at which companies have managed to create value in the downturn and what differentiated them. Capital yield, also known as the cash recycle ratio, is the clear differentiator of the winners since the[Read More…]

EnerCom Analysis:  Crude Oil Direction is More Important than Pinpointing Price

EnerCom Analysis:  Crude Oil Direction is More Important than Pinpointing Price

EnerCom built and maintains its own proprietary WTI price model to gain insights into the current market In the company’s recent monthly report, we reviewed the current drivers of WTI pricing. Because oil is a globally traded commodity with numerous possibilities for arbitrage, worldwide benchmark prices often move in sync with one another and are affected by the same global[Read More…]

September 29, 2016 - 6:57 pm 360 Articles, Analytics, Closing Bell Story, Commodity Pricing
DUCs Amok? Oil and Gas 360® Examines Dueling EIA and Bloomberg Backlog Data

DUCs Amok? Oil and Gas 360® Examines Dueling EIA and Bloomberg Backlog Data

Well Backlog a Critical Piece of the Puzzle as the Market Seeks to Predict what Happens in a Recovery DUCs, or drilled but uncompleted wells, have been a major topic of discussion among analysts for more than a year. The idea is that companies drilled wells (roughly half the total well cost) but didn’t complete the wells (roughly the other[Read More…]

September 23, 2016 - 11:54 am 360 Articles, Analytics, Chart of Week, Closing Bell Story, E&P, Fracing
Oil Market Sentiment on Wild Ride After 2015

Oil Market Sentiment on Wild Ride After 2015

WTI Volatility Index at Elevated Levels Since Price Crash Prior to the fall 2014 crash in oil prices, volatility in the oil markets had been on a steadily decreasing trend. An examination of futures volatility in the post-crash period, however, suggests a new normal of heightened uncertainty in pricing outlooks with wide-reaching implications. As WTI plunged from $100 to $40 per[Read More…]

W&T Offshore Announces Debt Exchange Results

W&T Offshore Announces Debt Exchange Results

W&T Offshore announced early participation results for the company’s tender offer to exchange its 8.5% senior notes due 2019 ($900 million aggregate principal outstanding) for new second lien paid-in-kind (PIK) toggle notes due 2020 and third lien PIK toggle notes due 2021, and equity. To date, the company has exchanged 78.9% of qualifying notes for a total of $710.2 million.[Read More…]

August 31, 2016 - 6:51 pm 360 Articles, Analytics, Closing Bell Story, Finance
More Volatility: Oil Price Falls as U.S. Petroleum Stocks Rise

More Volatility: Oil Price Falls as U.S. Petroleum Stocks Rise

Largest Weekly Build in Crude Stocks since April WTI oil price fell this morning after EIA reported that crude oil stocks has increased by 2.5 million barrels, the largest weekly build in crude stocks since April 29, 2016. The build is a reversal of the 2.5 million barrel draw the week prior. Total inventories still remain at inflated levels for[Read More…]

August 24, 2016 - 5:44 pm 360 Articles, Analytics, Closing Bell Story
Natural Gas Delivers a Surprise

Natural Gas Delivers a Surprise

NATURAL GAS INVENTORY (Week Ended 7/29/16) Current: 3,288 Bcf Actual Injection/(Withdrawal), per EIA: (6) Bcf Economist Average Estimate, per Bloomberg: 0 Bcf Previous: 3,294 Bcf Natural gas inventory is cyclical in nature, to the point where the two cycles are broken into “withdrawal season” and “injection season.” Both are common benchmarks among followers of the natural gas sector. The “S-curve” that emanates from this[Read More…]

Crude Oil Storage Rises, WTI Price Sinks

Crude Oil Storage Rises, WTI Price Sinks

July 27, 2016 CRUDE OIL INVENTORY/000 BBLS Week Ended 7/22/2016 Current Inventory:                          521,133 Actual Build/(Draw):                       1,671 Economist Average Estimate:     (2,020) Previous Inventory:                        519,462   Crude oil storage increased for the first time after nine weeks of storage draws. Economist’s estimates called for a draw of 2 million barrels, but the week’s data showed a build of 1.7 million barrels[Read More…]

July 27, 2016 - 12:40 pm 360 Articles, Analytics, Closing Bell Story
DUCs Flying Every Which Way

DUCs Flying Every Which Way

Trends suggest that operators are using their DUCs as a more capital efficient means of tapping production, rather than using them to grow production For the past year, discussions in the oil and gas industry have been focused on asking what role drilled uncompleted wells, or DUCs, will play in the industry’s recovery. Most analysts have predicted a rapid reduction[Read More…]

July 22, 2016 - 6:40 pm 360 Articles, Analytics, Closing Bell Story, E&P, Popular
Bam! It’s Earnings Season Again – Q2’16 Estimates

Bam! It’s Earnings Season Again – Q2’16 Estimates

EnerCom, Inc. compiled second quarter earnings per share, revenue, EBITDA and cash flow per share analyst consensus estimates on 201 E&P and OilService companies in our database. Click here for the full chart of estimates. The median OilServices company earnings estimate for the quarter ending June 30, 2016, is ($0.13) per share compared to actual earnings per share of ($0.11)[Read More…]

Bonanza Creek: From IPO to Strategic Alternative Process in 55 Months

Bonanza Creek: From IPO to Strategic Alternative Process in 55 Months

Shares of Bonanza Creek fall 37% on news of hiring a financial advisor Shares of Bonanza Creek (ticker: BCEI) took a nosedive Wednesday, falling 38%, with investors reacting negatively to an 8-K filing released during trading hours that the company was hiring Perella Weinberg Partners to “advise and assist in analyzing and evaluating financial and transactional alternatives, including restructuring options.”[Read More…]

July 15, 2016 - 6:16 pm 360 Articles, Analytics, Closing Bell Story, E&P
Oil Reports Cast Contradicting Shadows of Oil Market: Oil Price Falls

Oil Reports Cast Contradicting Shadows of Oil Market: Oil Price Falls

In the last two days, three reports have been released with current data and predictions for the oil market moving forward. Yesterday, the Oil Market Reports for July were released from both OPEC and IEA, as well as the crude oil storage report from API. This morning brought the Weekly Petroleum Status Report from EIA. This smorgasbord of data has[Read More…]

July 13, 2016 - 6:18 pm 360 Articles, Analytics, Closing Bell Story
Not Just Another Cycle: Major Shifts Between 2008 and Today

Not Just Another Cycle: Major Shifts Between 2008 and Today

Just because it’s cyclical, doesn’t mean every cycle is the same They say history repeats itself, and given the cyclical nature of the oil and gas business, many look to the past when trying to guess what is coming next, but past experience doesn’t always offer an exact model for the present. Much has changed between the 2008 oil and[Read More…]

Oil Price Falls Hard on Inventory Report

Oil Price Falls Hard on Inventory Report

Oil started the day on a slight upswing, but following today’s Petroleum Weekly Status Report issued by the EIA, the price began to plummet, ending the day down 4.76%. Initial reports coming last night from the American Petroleum institute (API) showed a draw on inventories of 6.7 million barrels. However, the API was just setting up the EIA for disappointing[Read More…]

July 7, 2016 - 6:25 pm 360 Articles, Analytics, Closing Bell Story

Could the Reaction to a Strong Yen Push Oil Lower?

Eyes of the World Should be on the BOJ As the markets tread into the ‘post-Brexit’-world after the UK voters cast in favor of the United Kingdom leaving the European Union, the chips are beginning to fall and countries half a world away are feeling the effects of the decision. There have been many financial market effects felt around Britain[Read More…]

June 27, 2016 - 6:03 pm 360 Articles, Analytics, Closing Bell Story, Energy News
Marathon Adding $888 Million of STACK Acreage

Marathon Adding $888 Million of STACK Acreage

Private Equity Cashing In: EnCap Company PayRock Energy Built the STACK Position Marathon Oil has reached an agreement to purchase privately held PayRock Energy Holdings for $888 million in a cash transaction. PayRock holds approximately 61,000 care acres in the Anadarko Basin STACK play in Oklahoma. “Acquiring PayRock’s STACK position will meaningfully expand the quality and scale of Marathon Oil’s[Read More…]

Reasons for Not Completing a Well

Reasons for Not Completing a Well

Drilling but not completing wells–why is it done? The uncertainty of the last year and a half surrounding the oil and gas industry has given rise to a multitude of different rationales about industry practices. Rig counts have been dissected, production levels followed, and any data point that could possibly be related to oil and gas has been factored in. Big[Read More…]

June 15, 2016 - 5:59 pm 360 Articles, Analytics, Closing Bell Story, Popular
Dow Jones Industrials – Is the Money Flow a Good Indicator of Market Direction?

Dow Jones Industrials – Is the Money Flow a Good Indicator of Market Direction?

Bullish or bearish? The chart above shows the total amount of money since August 2, 2011 that has been invested in the Dow Jones Industrial Average (DJIA) – the index – by institutional investors and retail investors via various forms of investment vehicles. In total more than $56 billion has been invested in the DJIA since Aug. 2011. This could[Read More…]

June 14, 2016 - 10:21 am 360 Articles, Analytics, Chart of Week, Closing Bell Story
China: Yuan Down, Yuan to Go

China: Yuan Down, Yuan to Go

Despite the Memorial Day weekend and the shortened week for U.S. business, the week has been eventful nonetheless. With anticipation mounting for the June 2nd OPEC meeting, the increased potential for a U.S. interest rate hike being signaled by the Fed, and Canadian crude returning to the market, oil markets have been rife with intensity this week. These market influences[Read More…]