Cabot, Range to keep spending, output in check this year
Appalachian pure plays Cabot Oil & Gas and Range Resources...
Appalachian pure plays Cabot Oil & Gas and Range Resources have no plans to increase spending or production this year despite the prospect of higher natural gas prices for the remainder of the year. Cabot Chairman, President and CEO Dan Dinges does not expect US dry gas production to bounce back significantly this year "as producers across the industry are focused on free cash flow generation, balance sheet repair and capital returns to shareholders over production growth."
Diamondback Energy announced that it completed its previously announced acquisition...
Diamondback Energy announced that it completed its previously announced acquisition of leasehold interests and related oil and gas assets from Guidon Operating LLC, a portfolio company of Blackstone Energy Partners. Aggregate consideration consisted of $375 million in cash and 10.68 million shares of the Company’s common stock after accounting for post-effective date adjustments. As a result of the acquisition, Diamondbackadds approximately 32,500 net acres in the Northern Midland Basin, primarily held by production allowing for capital-efficient full-field development.
Energy stocks are set for a higher start, backed by gains in the crude complex and broader index futures...
Energy stocks are set for a higher start, backed by gains in the crude complex and broader index futures which look to rebound on the heels of positive vaccine news from JnJ and a decline in bond yields. In company news, shares of Exxon Mobil are up more than 3% after announcing that activist investor Jeff Ubben will join the Board of Directors. The company will also add Michael Angelakis and increase the number of members to 13 from 12.
Oil prices are up about 1% in early trading, aided by global market strength which is staging a rebound following last week’s sharp declines. Catalysts today include the FDA’s approval of JnJ’s one-shot vaccine, a decline in bond yields which rapidly rose over the past two weeks, and after the US House of Representatives passed a $1.9 trillion stimulus bill over the weekend which now waits for the Senate to pass. Meanwhile, a rising dollar capped a lid to the upside.
Will the Texas Freeze Be Too Much for Some Operators?
Smaller U.S. shale producers in the Permian Basin were ...
Smaller U.S. shale producers in the Permian Basin were particularly hard-hit by the recent storms. These smaller to mid-size operators have had to navigate an already difficult year, with plummeting oil prices driving up bankruptcy rates. Analysts estimate that more than 2 million barrels per day of crude output was lost during the recent cold snap and restarting production may take weeks. Associated production/quarterly earnings losses and the high cost of restarting marginal wells may be more than some operators can sustain.
Oil rebounded from its biggest slump since November ahead of a key OPEC+ meeting that may see some supply...
Oil rebounded from its biggest slump since November ahead of a key OPEC+ meeting that may see some supply returned to a fast-tightening market.
Futures in New York rose above $62 a barrel. The alliance gathers on Thursday and is expected to loosen the taps after prices got off to their best-ever start to a year. But it’s unclear how robustly the group will act, with the Saudi Arabian energy minister calling for producers to remain “extremely cautious.”
At stake in the meeting is how much OPEC+ output gets restored and at what pace, with current reductions amounting to just over 7 million barrels a day, or 7% of global supply. The 23-nation coalition will decide whether to revive a 500,000-barrel tranche in April and in addition, whether the Saudis confirm an extra 1 million barrels they’ve taken offline will return as scheduled.
