SEC Launches Probe of Exxon Mobil on Permian Basin Asset Valuation
The U.S Securities and Exchange Commission (SEC) has launched an investigation of Exxon Mobil Corp.,...
The U.S Securities and Exchange Commission (SEC) has launched an investigation of Exxon Mobil Corp., following a whistleblower complaint that the oil major over-valued a key asset in the top U.S. shale field, the Wall Street Journal reported on Jan. 15.
Several people involved in valuing the Exxon Permian Basin asset during an internal assessment in 2019 said employees were being forced to use unrealistic assumptions about how quickly the company could drill wells there to arrive at a higher value, the report said.
Some Exxon managers in 2018 had initially pegged the net present value of the Delaware Basin in Permian at about $60 billion, the Journal reported in September.
But a few employees involved in Exxon's annual development planning estimated the value was closer to $40 billion in 2019, the WSJ report said.
ConocoPhillips Completes Acquisition of Concho Resources
The more than $13 billion acquisition of Concho Resources by ConocoPhillips was completed...
The more than $13 billion acquisition of Concho Resources by ConocoPhillips was completed in recent days.
The acquisition adds 550,000 net acres in the Permian along with 200,000 bbl/d oil output and 719 MMcf/d gas production to Conoco’s holdings. It also increases the firm’s Permian output by six-fold.
Oil prices fell early on Friday, as expanding lockdowns in China weighed on market sentiment...
Oil prices fell early on Friday, as expanding lockdowns in China weighed on market sentiment about immediate global oil demand, while a stronger U.S. dollar also dragged crude futures down.
Expanding lockdowns in China, whereas of Friday, there were 22 million people on lockdown, weighed on the market. China is grappling with its worst resurgence of the coronavirus since the summer of 2020.
Oil prices were also subdued due to the strengthening of the U.S. dollar on Friday, as a stronger U.S. currency makes crude buying more expensive for holders of other currencies.
West Texas Intermediate crude for February delivery fell $1.21 to finish the day at $52.36 a barrel on the New York Mercantile Exchange while the global benchmark Brent crude oil for March delivery finished down $1.32 to settle at $55.10 a barrel in trading on ICE Futures Europe.
Meanwhile, February's natural gasgained 7.1 cents to $2.737 per MMBtu.
U.S. Rig Count Jumps Again As Oil Prices Stabilize
The U.S. oil rig count increased for the eighth consecutive week as drillers capitalize on higher oil...
The U.S. oil rig count increased for the eighth consecutive week as drillers capitalize on higher oil prices. Baker Hughes reported on Friday that the number of oil and gas rigs in the United States rose by 13 to 373. The oil and gas rig count has risen for eight weeks in a row for a total gain of 63.
The oil rig count increased by 12 this week, while the number of gas rigs increased by 1.
Total oil and gas rigs in the United States are now down by 386 compared to this time last year, just a handful of days before the first case of the mysterious China virus was discovered to have infiltrated the United States.
US Shale Producers Lock in Future Sales as Oil Prices Hit One-year High
U.S. shale producers are taking advantage of the oil market's rally to levels not seen in nearly a year...
U.S. shale producers are taking advantage of the oil market's rally to levels not seen in nearly a year by locking in prices for future sales, sources familiar with the matter said.
U.S. crude futures this month jumped above $50/bbl to the highest since February. The rally has sparked optimism among shale companies, but after a bracing year of pandemic-induced demand destruction, they are not ready to ramp up production. Instead, they are using futures markets to lock in higher sale prices.
"Producers locked in a certain amount of wells at a certain price and hedging at $50 makes you look like a rockstar. This year will be about free cash flow," one executive at a U.S. shale producer said, on condition of anonymity.
