Ohio pure-play Eclipse Resources Corp. plans to significantly increase its capital spend this year, guiding for a $300 million budget that builds on the lessons it learned last year and includes 11 super laterals — wells with extensions of 15,000 feet or longer.
Capital
Articles from Capital
Trump Plan to ‘Free Up’ Pipeline Infrastructure Projects Encouraging, Says Chevron CEO
Chevron Corp. sowed a second consecutive quarterly profit in the last three months of 2016 following sharp cost containment and a modest price rebound, but earnings still came in well below Wall Street consensus.
Laredo Capex Signals Growth in Permian Midland’s Wolfcamp
Laredo Petroleum Inc. said Tuesday it is budgeting $530 million for capital spending this year, nearly all for the Upper and Middle Wolfcamp formations of the Midland sub-basin of the Permian, with an eye on raising production volumes by 15% over 2016.
Wood Mackenzie Sees U.S. E&Ps Leading New Investment Cycle in 2017
The global oil and natural gas industry will turn cash flow positive in 2017 for the first time since the downturn if the reduction in output promised by the Organization of the Petroleum Exporting Countries drives oil prices above $55/bbl, according to Wood Mackenzie.
Phillips 66 Sees 25% 2017 Capital Reduction, Focuses on NGLs, Transportation
While still taking a cautious approach to investment due to the current business climate, Houston-based Phillips 66 said Friday that more than half of its 2017 capital budget will be allotted to the company’s natural gas liquids (NGL) and transportation businesses, with 85% of that targeting growth projects.
Taxes Bleeding Mexico’s Pemex Dry, Fitch Says
The Mexican government is taxing Petroleos Mexicanos (Pemex) to death, and a recently adopted support package to prop up Pemex is not enough, Fitch Ratings said in a note last week.
Brief — Pennsylvania Protest
Roughly 150 protesters were at the Pennsylvania Capitol in Harrisburg on Tuesday for a rally urging lawmakers to pass legislation that would make it difficult for oil and gas companies to deduct post-production costs from royalty checks. Lawmakers have tried but failed for years to pass legislation to clarify the state’s Guaranteed Minimum Royalty Act of 1979, which sets forth the minimum payment to landowners but doesn’t address marketing costs and how they should be factored into royalties. Bradford County, PA, has launched a campaign to pressure lawmakers into passing state HB 1391, which may be considered in October (see Shale Daily,Sept. 9). The industry has fought against the legislation, claiming contractual disputes should be settled in court.
New NatGas Power Plant Opens in Oregon
Portland General Electric (PGE) opened a new 440 MW natural gas-fired generation plant in eastern Oregon last Friday, the highlight topic of PGE’s 2Q2016 earnings conference call on Wednesday.
Encana Raises 2016 Capex, Production Guidance on Efficiency, Production Increases
Encana Corp., one of the largest North American natural gas producers, is so encouraged by a spate of recent efficiency improvements and rising production that it has increased both its 2016 production guidance and capital guidance.
Hefty Private Equity War Chest Readied For NatGas, Oil Investments
Privately backed financial firms have close to $1 trillion ready to deploy into the global oil and natural gas sector, with one-quarter now planning acquisitions by year’s end that mostly target North America and the Asia-Pacific, a survey by Ernst & Young has found.