Oil hedging activity picks up amid market turbulence
US oil and natural gas operators have rushed in the past...
US oil and natural gas operators have rushed in the past few months to shield their businesses from market volatility with production hedges and various contractual arrangements. The producers tracked by Goldman Sachs have boosted their share of hedged 2020 output from 48% before the downturn to 66% currently, marking the highest level of hedging activity in at least five years.
Also, "we saw a sharp pick-up in 2021 hedging for oil and natural gas," Goldman Sachs said. "Producers have 14% of 2021 estimated oil production hedged (versus 2% post-Q4 2019 earnings) and 28% of 2021 estimated gas production hedged (versus 15% post-Q4 2019 earnings)."
US independent oil producers, including Diamondback Energy...
US independent oil producers, including Diamondback Energy and SM Energy, are prioritizing debt management, but adverse market conditions may jeopardize their efforts to secure capital and improve their financial standing.
As independents have already sharply lowered their 2020 spending plans, banks are likely to advance less credit against their proven undeveloped reserves than proven developed (PD) assets in the spring, as the former require more investment to bring oil into production.
Hedge Fund Angelo Gordon Reportedly Raising $1.5 Billion for Distressed Energy Debt
Hedge fund Angelo Gordon & Co. LP aims to raise as much as $1.5 billion to buy the debt of...
Hedge fund Angelo Gordon & Co. LP aims to raise as much as $1.5 billion to buy the debt of distressed oil and gas companies, according to a person familiar with the matter and an investor presentation viewed by Reuters.
The U.S. shale boom, financed by access to cheap capital, is drying up as weak oil and gas prices and investors' reluctance to refinance debt has companies cutting production and some seeking protection from creditors. U.S. output is expected to fall as much as 2 million bbl/d this year.
The Angelo Gordon fund will be called AG Energy Credit Opportunities Fund IV LP and will seek to acquire distressed debt in the oil exploration and production, pipeline and services sectors, according to a presentation seen by Reuters.
Trump administration tables more oil and gas lease sales
The Trump administration has backed off its regular oil and gas lease sale schedule, postponing...
The Trump administration has backed off its regular oil and gas lease sale schedule, postponing at least two auctions that had been set for later this month after delaying a major sale in New Mexico in May, according to an official web site.
The U.S. Bureau of Land Management, the arm of the Interior Department that oversees lease sales, postponed a sale of seven oil and gas leases on more than 10,000 acres in Nevada that had been scheduled for June 9. It is also delaying the sale of two parcels on 88 acres in Mississippi that had been expected on June 18, according to the online auction platform EnergyNet.
The moves mark a shift for the U.S. Department of Interior, which had proceeded with a slew of oil and gas lease sales on public lands earlier this year as the outbreak of the coronavirus caused energy prices to crash.
Drilling on federal lands is a crucial part of President Donald Trump’s “energy dominance” agenda to maximize domestic production of fossil fuels.
Oklahoma-Based Templar Files for Bankruptcy, Citing Market Turmoil
Anadarko Basin independent Templar Energy LLC has filed for Chapter 11 bankruptcy protection,...
Anadarko Basin independent Templar Energy LLC has filed for Chapter 11 bankruptcy protection, joining a growing list of distressed operators amid the sharpest oil market downturn in recent memory.
Templar on Monday said it is seeking to address “substantial challenges” amid “declining commodity prices, exacerbated by the Covid-19 pandemic.”
The Oklahoma City-based firm plans to liquidate all or substantially all of its assets through Chapter 11 and to eliminate an aggregate principal debt load of $426 million, plus about $20 million in annual interest expense.
The company has secured $25 million in debtor-in-possession (DIP) financing, which it will use to fund its operations during the Chapter 11 cases.
Templar’s exploration and production (E&P) portfolio targets liquids-rich natural gas and oil formations in the Greater Anadarko Basin in Western Oklahoma and the Texas Panhandle.
