Denver-based Kodiak Oil & Gas Corp., which is focused on the Bakken Shale in North Dakota’s Williston Basin, grew oil and gas sales volumes by 83% during the second quarter compared to a year ago; crude oil accounted for 87% of second quarter sales. The company has raised capital spending and production guidance for the remainder of the year.
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Utility developers planning combined-cycle gas turbine (CCGT) projects in the Marcellus and Utica shales are looking for a “power price appreciation” from excess natural gas, not growing demand, to ensure a fair return on their investments, according to an analysis by Tudor, Pickering, Holt & Co. Inc. (TPH).
Natural gas cash prices overall fell 4 cents in Wednesday’s trading as strength at eastern and northeast points was unable to offset slumping quotes at major market hubs and West Coast locations. Losses were widespread and only a few points managed to make it onto the positive side of the trading ledger. At the close of futures trading, May had fallen 7.2 cents to $4.166 and June was down 7.5 cents to $4.203. June crude oil added $2.25 to $91.43/bbl.
Cash prices eased a penny on average Monday, with modest gains in the Midwest unable to offset declines in the Northeast and East. Major market centers were mixed. Futures prices were pounded lower by forecasts of warmer temperatures in the nation’s midsection, a stark contrast to last week’s outlooks calling for a cooler-than-normal regime. At the close May had fallen 14.1 cents to $4.267 and June was lower by 13.9 cents to $4.298. May crude oil expired at $88.76/bbl, down 75 cents.
The fourth quarter was Carrizo Oil & Gas Inc.’s ninth consecutive quarter of revenue growth and one during which it charted record oil production and oil revenue, affirming the wisdom of management’s decision to transform Carrizo into an oil company, CEO Chip Johnson said.
Domestic natural gas production surged in 2011 to 28.48 Tcf, a 1.66 Tcf (6.2%) increase compared to 26.82 Tcf in 2010, and it was production from the nation’s shale plays that gave the total its biggest boost, according to the U.S. Energy Information Administration (EIA).
ExxonMobil Corp.’s profits climbed 6% year/year in 4Q2012, with annual earnings jumping 9%, despite a steep fall-off in global natural gas and oil production, the supermajor reported on Friday. Until natural gas prices are revived, the producer will direct most of North American unconventional spending on liquids and oil, the investor relations chief said Friday.
Cash natural gas prices shed a dime on average Friday as steady to nominal gains at Rockies points were unable to offset falling quotes at East, Northeast and California points. Traders also cited the normal Friday reluctance to buy ahead of a weekend and weather forecasts indicated little likelihood of East and Northeast cold.
Overall cash prices added about a nickel on average Wednesday as strength at eastern and other points was able to offset weakness in the Northeast and a steady Midcontinent market. Meanwhile, December futures recorded a 12-month spot contract high on the day at $3.827 before closing out the regular session at $3.760, up 2.1 cents from Tuesday’s finish. January was 2.2 cents higher at $3.879. December crude oil rose 94 cents to $86.32/bbl.
Soaring Northeast cash prices were unable to offset a broader overall market decline averaging 11 cents Friday. Gulf and eastern points were especially hard hit. December futures fell 14.5 cents to $3.554 and January tanked 13.8 cents to $3.680. December crude oil fell $2.23 to $84.86/bbl.