Post Tagged with: "Investment"

Source: TOPS/LinkedIn

Black Bay Energy Capital Backs Permian-Based Oilfield Services Company

By Tyler Losier, Energy Reporter, Oil & Gas 360 Black Bay Energy Capital forms partnership with Total Operations and Production Services Black Bay Energy Capital, a private equity firm focused primarily on the oilfield services and equipment sector, has formed a partnership with, and made an investment in, Total Operations and Production Services (TOPS). TOPS, which operates in the Permian Basin, is an oilfield services company that provides compression products and services, specializing in gas lift applications. The company is headquartered in Midland, Texas, and is led by Founder and President L.D. Green, as well as Vice President Brian Green. A TOPS electric gas lift unit (source: TOPS Inc./LinkedIn) “TOPS is manage… Login or click here to subscribe Username or E-mail Password Remember Me     Forgot Password

Source: Oryx Midstream Services

Oryx Midstream Lands $550 Million from Qatar Investment Authority

By Tyler Losier, Energy Reporter, Oil & Gas 360 Qatar Investment Authority acquires significant stake in Oryx Midstream Services from an affiliate of Stonepeak Infrastructure Partners Qatar Investment Authority (QIA), the country’s sovereign wealth fund, will be acquiring a significant interest in Permian crude operator Oryx Midstream Services from an affiliate of Stonepeak Infrastructure Partners, in addition to chipping in a total investment of approximately $550 to help with Oryx’s development. The partnership between the two companies comes as a part of QIA’s ongoing initiative to increase its investments in the U.S. to $45 billion in the coming years. The Oryx system, which transports crude to market hubs on the Gulf … Login or click here to subscribe

Black Bear Midstream Enters into Gas Gathering and Processing Agreement

Black Bear Midstream Enters into Gas Gathering and Processing Agreement

By Tyler Losier, Energy Reporter, Oil & Gas 360 Black Bear Midstream enters into seven-year agreement with undisclosed Cotton Valley producer Black Bear Midstream, a portfolio company of Oaktree Capital Management (stock ticker: OAK), has entered into a seven-year gas gathering and processing agreement with an undisclosed Cotton Valley producer in Desoto Parish and Caddo Parish, Louisiana. To support both this contract and other producers on either side of the Louisiana and Texas border, Black Bear will be building approximately 20 miles worth of 16-inch rich gas gathering pipelines to the west of its DeSoto Parish cryogenic processing plant. Black Bear Midstream’s current asset portfolio (source: Black Bear Midstream) … Login or click here to subscribe

To Keep Up, Majors Need to Spend $30 Billion in the Permian: IHS

To Keep Up, Majors Need to Spend $30 Billion in the Permian: IHS

From the Houston Chronicle Oil majors led by Exxon Mobil and Chevron will need to bulk up their Permian Basin spending to meet their growth goals, triggering more consolidation and higher costs for oilfield services, according to a new report Monday. The IHS Markit report argues that Exxon Mobil, Chevron and, to a lesser extent, Royal Dutch Shell, will need to spend nearly $30 billion from 2018 to 2020 just in West Texas’ booming Permian Basin to hit their production targets. That means the three companies could be buyers of companies and acreage in the Permian, pressuring smaller exploration and production companies to sell as they struggle to keep up with cost inflation. At the same time, the Big Oil players will need to balance rising costs in the Permian with the pressure from shareholders to maintain conservative spending plans, the report states. “If truly committed to the Permian Basin,[Read More…]

June 21, 2018 - 11:09 am Closing Bell Story, Energy News
Warburg Pincus Invests $138 Million in Canadian E&P

Warburg Pincus Invests $138 Million in Canadian E&P

Calgary-based E&P Artis Exploration Ltd. closed a CDN$180 million (USD$138 million) growth equity investment from Warburg Pincus. Founded in 2015, Artis is focused on the Duvernay East Shale Basin of Western Canada, where the company holds a contiguous acreage position of over 260,000 net acres. Artis is led by Darryl Metcalfe, who was previously president and CEO at Artek Exploration. “With this investment, we will be well-positioned to continue to scale through the development of our premier acreage position in the Duvernay oil play,” Metcalfe said. Metcalfe is joined by a seasoned management team with extensive experience in the geotechnical and engineering aspects of resource and shale plays in North America. 2017 saw a record $453 billion from investors In the context of the total business sector, the global private equity industry raised a record $453 billion from investors in 2017, leaving it with more than $1 trillion to pour[Read More…]

Courtesy of Cheniere

Cheniere’s LNG Express Moves Forward with FID for Train 3 at Corpus

Cheniere Energy, Inc. (ticker: LNG) made a positive final investment decision, clearing the way for its Train 3 project at Corpus Christi to reach the goal line. Cheniere said it plans to issue a full notice for Bechtel Oil, Gas and Chemicals, Inc. to continue construction. The construction began in late 2017 under limited notice to proceed, but with the full notice, this will be the first final investment decision (FID) on new liquefaction capacity in the U.S. since 2015. The project site is located on the La Quinta Channel on the northeast side of Corpus Christi Bay in San Patricio County, Texas, on over 1,000 acres owned or controlled by Cheniere. Cheniere’s Corpus Christi liquefaction project is a three-train liquefaction project near Corpus Christi, Texas. Each train is expected to have a nominal production capacity of approximately 4.5 mtpa of LNG (metric tonnes per annum). More trains to come[Read More…]

Iran’s Short-Lived Oil and Gas Boom

Iran’s Short-Lived Oil and Gas Boom

Iran’s energy sector will feel the repercussions of renewed sanctions Iran has the world’s fourth-largest proved crude oil reserves and the world’s second-largest natural gas reserves, but production in the country has been suppressed by international sanctions and underinvestment. Although some sanctions targeting the energy industry were temporarily lifted, and oil production reached ~3.8 MMBOPD in 2017, growth has remained slow. According to an EIA report published in April 2018, Iran ranked among the world’s top 10 oil producers and top five natural gas producers. Iran produced almost 4.7 MMBPD of petroleum and other liquids in 2017, and an estimated 7.2 Tcf of dry natural gas in 2017. Despite Iran’s abundant reserves, crude oil production stagnated and even declined between 2012 and 2016, as nuclear-related international sanctions targeting Iran’s oil exports hindered progress, affecting upstream investment. At the end of 2011, the United States and the European Union imposed sanctions[Read More…]

Private Equity: Delivering Capital Upstream

Private Equity: Delivering Capital Upstream

In the context of the total business sector, the global private equity industry raised a record $453 billion from investors in 2017, leaving it with more than $1 trillion to pour into companies and new business ventures, Reuters reported at the beginning of the year. The capital raised in 2017 surpassed the previous landmark of $414 billion set in 2007. Private equity players have been stepping up the pace of investments in the energy sector since the recovery took hold last year. In 2017 the industry was clawing its way out of a miserable two-and-one-half-year downturn during which IPOs and secondary public securities offerings were postponed or cancelled. And private equity was in position to take up the slack. Private equity funds are flush with cash. Private Equity sponsors issued 125 commitments in 2017, and the upstream sector was tied to 70% of them. Out of 125 PE commitments tracked[Read More…]

EIG’s FS Energy and Power Fund – at $4.3 Billion – is Largest Energy BDC

EIG’s FS Energy and Power Fund – at $4.3 Billion – is Largest Energy BDC

FS Investments (FS) and EIG Global Energy Partners (EIG) closed a transaction today, allowing EIG to manage FS Energy and Power Fund (FSEP). According to the company’s press release, FSEP will be the largest energy-focused business development company (BDC) in the marketplace with $4.3 billion in assets under management. “We are excited to enter the next phase of our partnership with EIG and continue working closely with their team,” said Michael Forman, chairman and CEO of FS. “EIG’s scale, global reach and singular focus on energy investing will provide expanded opportunities to reposition the FSEP portfolio and enhance performance as we work toward a liquidity event for our investors.” Effective today, a partnership jointly owned by FS and EIG now provides investment advisory services to FSEP, which is able to participate in the same transactions alongside EIG’s other institutional funds and accounts. “With the close of this transaction, EIG will[Read More…]

Tellurian Keeps Sailing

Tellurian Keeps Sailing

Tellurian Inc. (ticker: TELL) wrapped up its first year as a public company, ending 2017 with $128.3 million of cash and cash equivalents. The company remains debt free, but reported a net loss of $231.5 million, or $(1.23) per share as it ramps up permitting and preconstruction phases for its Driftwood LNG plant on the Louisiana Gulf coast. Driftwood is targeting a 2019 groundbreaking. The company bought natural gas resources in 2017 and has approximately 327 Bcfe of proved natural gas reserves. Tellurian President and CEO Meg Gentle said, “Tellurian is developing asset opportunities representing $29 billion of near-term investments…” Bechtel invests $50 million in Tellurian Bechtel Oil, Gas and Chemicals, Inc. recently made a $50 million, zero-coupon preferred equity investment in Tellurian, which has an implied Tellurian common share price of $8.16 per share. Brendan Bechtel, chairman and CEO of Bechtel Group, Inc. said, “Tellurian management and Bechtel have[Read More…]

GeoPark Produced 10.2 MMBOE in 2017, Receives Reserve Report

GeoPark Produced 10.2 MMBOE in 2017, Receives Reserve Report

‘For every barrel produced, we replaced it with almost three proven barrels’ – GeoPark CEO James Park EnerCom Dallas presenter GeoPark Limited (ticker: GPRK) recently received an independent appraisal of reserves covering 100% of the company’s assets in Colombia, Chile, Brazil, Peru and Argentina. Following GeoPark’s oil and gas production of 10.2 MMBOE in 2017, the company received certified 2P net reserves of 159.2 MMBOE (composed of 85% oil and 15% natural gas). By country, 55% of reserves were in Colombia, 21% in Chile, 20% in Peru, 3% in Brazil and 1% in Argentina. GeoPark CEO James F. Park said, “For every barrel produced, we replaced it with almost three proven barrels. And all was paid for from internally generated cash from our own operations – which also had a big increase from the year before. We invested $106 million of our cash flow and were able to increase our[Read More…]

Crescent Point Energy Looks to Exit 2018 with 195,000 BOEPD

Crescent Point Energy Looks to Exit 2018 with 195,000 BOEPD

Uinta HZ inventory climbs to 850 net locations Crescent Point Energy Corp. (ticker: CPG) expects to generate annual average production of 183,500 BOEPD and exit production of 195,000 BOEPD in 2018. The increase will be fueled from its $1.8 billion CapEx spending budget for 2018. Crescent Point had a 2017 exit rate of 183,000 BOEPD, which represented year-over-year production growth of approximately 10%, both on an absolute and per share basis. At year-end 2017, Crescent Point’s risked Uinta Basin horizontal inventory increased to approximately 850 net locations, up from 120 at the end of 2016. According to Crescent Point, the new locations have the potential to generate more production and increase the productive capacity of drilling inventory by approximately 70%, compared to the prior year. Crescent Points estimates Uinta basin at 8.5 billion barrels of oil in place The company also updated its estimated original oil-in-place for the Uinta Basin,[Read More…]

Canada Looks to Attract More Chinese Investment by Relaxing Rules

Canada Looks to Attract More Chinese Investment by Relaxing Rules

Canada hopes to attract greater foreign investment with lower political risk and a skilled workforce Canadian Finance Minister Bill Morneau said that the country is considering relaxing rules on foreign investment in order to attract more capital and spur growth. Morneau indicated that these loosened policies may even include restrictions on the ability of state-owned enterprises to invest in Canada, reports Bloomberg. These changes would have a particularly pronounced impact on Chinese foreign investment in Canada’s energy industry. Following the 2012 acquisition of Nexen Inc. by Chinese state-owned CNOOC for $15.1 billion, then-Prime Minister Stephen Harper introduced a measure that the government would only allow a state-owned enterprise to acquire an oil sands company under “exceptional circumstances.” This legislation appeared to be directed specifically at Chinese state-owned enterprises (SOE), reports Alberta Oil Magazine. Cold water thrown on investment prospects “It’s challenging, if not impossible, to unpack the cause and effect[Read More…]

Source: WPX

Rice Energy Closes $500 Million Funding Deal with EIG Global Energy Partners

Rice Energy (ticker: RICE; RiceEnergy.com) has closed a financing agreement with EIG Global Energy Partners (“EIG”; www.EIGpartners.com). EIG has agreed to a $500 million equity investment with Rice:  $375 million upfront in exchange for preferred equity and common units in Rice Midstream Holdings (“RMH”) and Rice Midstream GP Holdings, respectively. The investment from EIG will generate increased liquidity to grow midstream business in the Utica shale and will simultaneously allow Rice Energy to fund their capital program in 2016 without incurring any more debt. Rice Midstream GP Holdings is a newly formed company in partnership with EIG. The deal will allow EIG to have an interest in both RMH and a limited partner interest in Rice Midstream Partners. RMH will use approximately $75 million of the proceeds to repay all outstanding borrowings under its revolving credit facility and to pay transaction fees and expenses. The remaining $300 million will be[Read More…]

Exploration and Production: Which Companies Shall Investors Not Worry About?

Exploration and Production: Which Companies Shall Investors Not Worry About?

Pool of companies in Moody’s lowest credit rating grows; but risk of bankruptcy is minimal for a few standouts Continued pressure from low oil prices has prompted Moody’s Investor Service to put 264 companies in its lowest credit rating, just shy of a record high 291 in April 2009. The growing number of companies included in Moody’s lowest credit rating represents a 44% increase over the past 12 months. “The majority of new additions come from oil & gas, followed by metals & mining, chemicals and coal,” Moody’s said in its report. The list is made up of companies with ratings below B3 or that are projected to be downgraded below that level, which indicates at least substantial risk of default. The majority of the companies being downgraded have come from the energy sector, reports Bloomberg. In the last month alone, as many as 20 firms were added to the[Read More…]

Stephens: Invest in OilService Development, Not a Recovery

Stephens: Invest in OilService Development, Not a Recovery

Buy low, sell high is perhaps the most commonly (and overly) used phrase when it comes to investing. Now that commodity prices are near the floor (depending on who you ask), investors are cherry picking stocks in hopes of capitalizing on a down market and its inevitable recovery. It may not come in 2016, but oilservice giants like Schlumberger (ticker: SLB, www.slb.com), along with analyst firms like KLR Group, are pegging 2017 as the rebound year. However, there are different recovery games for different sectors of the oil and gas industry. Exploration and production companies, especially those with minimal hedges, are exposed to quick revenue rebounds. In the meantime, companies are adjusting budgets and cutting dividends on a seemingly daily basis in order to navigate the oversupplied market. Oilservice companies, on the other hand, have been forced to drop service costs in the ballpark of 20% to accommodate capital-cutting measures[Read More…]

Alberta Drops 22 Places in Study of Attractive Places to Invest

Alberta Drops 22 Places in Study of Attractive Places to Invest

Alberta falls to 38th from 16th in just one year Alberta is becoming a less attractive target for oil and gas investment, according to an annual study conducted by the Fraser Institute. The survey of petroleum executives, which ranks jurisdictions around the world based on how much government policy deters investment in oil and gas, listed Alberta as the 38th most attractive place to invest out of 126 jurisdictions, down 22 places from its spot at number 16 last year. “Unfortunately, this was what we expected,” said Ken Green, senior director of natural resource studies at the free-market-oriented Fraser Institute and one of the survey’s authors. “We see jurisdictions drop sharply within months of announcing a new policy, not years.” Recently elected Alberta Premier Rachel Notley ran in part on a campaign to review the royalty structure in Alberta. Notley said that if the review found that increasing royalties could[Read More…]

December 1, 2015 - 5:38 pm Canada, Closing Bell Story, Oil and Gas 360 Articles
Source: theiet.org

Iran Seeks Partners for 45 Oil & Gas Projects

Chairman of Iran’s oil contracts restricting committee Mehdi Hosseini said that Iran has selected 45 oil and gas projects to show international companies at a conference that will be in London in December 14-16. Hosseini said that Iran would present the projects alongside the finished versions of its new oil contracts, reports Bloomberg. “We will define projects in the oil and gas sector as much as feasible and necessary since we believe this sector will bring wealth and economic development,” Hosseini said. “As far as this conference is concerned, we have defined around 45 projects which include exploratory blocs at varying development costs.” Iran may give companies two to three months to decide whether to bid on the projects, he added. “The exact length will be decided by the time of the conference.” Following the conference, Iran will begin asking companies to bid. New contract model hopes to attract more[Read More…]

Oil Prices Recover 2.2%, but Hold Near Multi-Month Lows

Oil Prices Recover 2.2%, but Hold Near Multi-Month Lows

Weaker dollar helps oil prices find $46 West Texas Intermediate prices gained 2.2%, or $1, Tuesday after loses Monday, rising to $46.17 per barrel on the New York Mercantile Exchange. The recovery was boosted by a weaker dollar, making oil more affordable to holders of other currencies. Brent crude prices rose 1.5%, or $0.73, to $50.25 per barrel on the ICE Futures Europe as well. While oil prices made a recovery in early trading today, some analysts remain pessimistic about the future of oil prices. “Prices may be recovering slightly this morning, but given the 1.5 to 2.0 million barrels per day oversupply…the recovery will probably be short-lived,” a Commerzbank analyst told The Wall Street Journal. Carlyle Group’s Rubenstein calls energy “one of the best investments in the world” David Rubenstein, co-founder and co-CEO of The Carlyle Group, said he is still bullish on carbon-based energy investment. “The consumption of[Read More…]

Source: Rosneft

Rosneft to Invest $14 Billion in Venezuela’s Oil and Gas Sector

Investment is expected to double current production Venezuelan President Nicolas Maduro said that Russia’s top oil producer, Rosneft (ticker: RNFTF), agreed to invest around $14 billion in the South American OPEC country’s oil and gas sector. Maduro met with Rosneft CEO Igor Sechin and Venezuela state-owned PDVSA’s president, Eulogio del Pino, Wednesday, reports Reuters. “We had a great meeting and agreed on investment of over $14 billion,” Maduro said in a televised broadcast, adding funds would go toward doubling Venezuela’s oil production. Maduro did not provide a breakdown of the investment plan. Rosneft said in an email to Reuters that the $14 billion dollars was the total amount of investments of the company in Venezuela during the lifespan of current and future projects. The company already invested $1.8 billion from 2010 to 2014, and sees its own oil production in Venezuela rising to 8 million tons per annum (160 MBOPD)[Read More…]

May 29, 2015 - 6:59 pm International, Oil and Gas 360 Articles

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March 14, 2013 - 9:19 pm Oil and Gas 360 Articles