Atlantic-based IntercontinentalExchange (ICE) has announced plans to conduct an initial public offering of its common stock. It plans to file a registration statement with Securities and Exchange Commission in the next several weeks. ICE operates an online exchange for trading natural gas, crude oil and power futures and over-the-counter energy products. ICE conducts its markets for futures trading through its subsidiary, London-based International Petroleum Exchange (IPE), Europe's leading energy futures and options exchange. ICE also announced its 2004 financial results on Wednesday, reporting revenues of $108.4 million and consolidated net income of $22 million. Consolidated cash flow from operations was $40.3 million. Capital expenditures and capitalized software in 2004 totaled $6.5 million. For 2004, volume traded on ICE's futures subsidiary, the International Petroleum Exchange (IPE), reached 35.5 million contracts. Electronically traded IPE Brent volume increased from 2.8% of total contract volume in January 2004 to 27.2% of total contract volume in December 2004. For more information, go to www.theinterchange.com.
Devon Energy's board increased the company's quarterly cash dividend on its common stock by 50% on Wednesday. The dividend for the first quarter of 2005 is 7.5 cents/share payable on March 31. "We increased the common stock dividend in 2004 and are doing so again in 2005," said CEO J. Larry Nichols. "Devon is committed to delivering value to our shareholders. Dividends are one of the ways in which we do this." Devon also announced that its board declared a quarterly cash dividend on its 6.49% cumulative preferred stock, series A. The dividend rate is $1.6225 per share.
Tulsa-based independent Vintage Petroleum Inc. internally increased its oil and natural gas production in 2004 and achieved a 5% increase in aggregate contributions from all of its producing areas. It also estimated year-end proved reserves at 437.2 million boe, with 2004 output from continuing operations of 24.5 million boe. For 2005, Vintage raised its production guidance to 26.4 million boe from 25.8 million boe. About 0.4 million boe is attributed to an inventory adjustment in Argentina, and another 0.7 million boe is from a recent acquisition in Alabama. Year-end 2004 estimated proved reserves were composed of 297 million bbl of oil and 840 Bcf of natural gas, representing 68% and 32% of total proved reserves, respectively. Of the total, 67% were classified as proved developed reserves.
Shell Canada Ltd. plans to conduct a 3-D survey this summer of the Orphan Basin, located in the deepwater offshore Newfoundland and Labrador, after acquiring a 20% interest in eight exploration licenses. The interest was acquired under a farm-in agreement with ExxonMobil Canada and Imperial Oil Resources. The eight land parcels are located 202 miles offshore Newfoundland. They were acquired initially in December 2003 by Chevron Canada Resources (50%), ExxonMobil Canada (25%) and Imperial Oil Resources (25%). Under the terms of the agreement, ExxonMobil and Imperial Oil will each reduce their shares by 10% to provide Shell with its 20% interest. Shell Canada conducted the first Orphan Basin exploration in 1969, and exploration permits and licenses were issued throughout the 1970s and 1980s. However, most of the deepwater remains unexplored. Up to now, drilling has been restricted to the western edge of the basin.
Calgary-based Talisman Energy Inc. increased its oil and natural gas production 10% in 2004, boosted by new production in Trinidad, an expansion in its Western Canadian operations, and continuing success from deep natural gas drilling in the Rocky Mountains. Cash flow in 2004 increased 7% to C$2.931 billion (C$7.65/share), compared with C$2.729 billion (C$7.07/share) a year earlier. Cash flow per share was C$1.78 in the fourth quarter, up 6% from 4Q2003. Net income was down in 2004, reflecting the sale of Talisman's Sudan assets and several tax changes in 2003. Total net income in 2004 was C$663 million (C$1.77/share) versus C$1.012 billion (C$2.56/share) in 2003. Net income per share increased 19% to C$0.32 in 4Q2004, compared with 4Q2003. Production for the year averaged 438,000 boe/d. In the fourth quarter, output averaged 451,000 boe/d, an increase of 8% over 4Q2003, and sequentially, 5% above 3Q2004.
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