Getting things back to a semblance of normalcy, Oklahoma City-based Kerr-McGee Corp. on Thursday announced that it has increased its net production in the Gulf of Mexico to 95,000 Boe/d, representing nearly 75% of pre-hurricane volumes.
Oklahoma
Articles from Oklahoma
Devon Focuses on Share Repurchases, Not Acquisitions
Oklahoma City-based Devon Energy Corp.’s CEO said Wednesday that the best value on the market right now is his own company, which means that instead of making new acquisitions, the producer will instead concentrate on buying back its own shares.
Transportation Notes
CenterPoint issued an Operational Alert, saying it was experiencing capacity constraints on the far west end of Line AD in Oklahoma’s Hemphill and Roger Mills Counties (westernmost portion of the West 1 Pooling Area). It listed 15 receipt points as being constrained (see the bulletin board for details). Effective with the start of Wednesday’s gas day CenterPoint limited capacity on the affected section of Line AD to 70,000 Dth/d until further notice, but said it anticipates no impact on its ability to meet primary firm receipt obligations or overall receipt entitlements in the West 1 Pooling Area.
Potential Western Storage Buyers Mum on EnCana Sales Pitch
In the immediate aftermath of EnCana Corp.’s decision announced Monday to sell its natural gas storage business, including underground facilities in California, Oklahoma and Alberta, several western companies declined to comment on whether they would be interested in one or more of the facilities. EnCana announced Monday it intends to divest the storage business either through a competitive auction or an initial public offering (see Daily GPI, June 21).
Kerr-McGee Undecided on Selling, Spinning Off Chemicals Unit
Oklahoma City-based Kerr-McGee Corp.’s CEO said last week that a decision to sell or spin off the company’s chemical division will be made by the end of the year. The company announced in March it would exit the chemicals business to concentrate on oil and natural gas exploration (see NGI, March 14).
Kerr-McGee Undecided on Selling, Spinning Off Chemicals Unit
Oklahoma City-based Kerr-McGee Corp.’s CEO said Tuesday that a decision to sell or spin off the company’s chemical division will be made by the end of the year. The company announced in March it would exit the chemicals business to concentrate on oil and natural gas exploration (see Daily GPI, March 9).
Devon Announces $1.2B U.S. Asset Divestiture; Canadian Asset Sales Coming Soon
Oklahoma City-based Devon Energy, which has grown rapidly through acquisitions over the last several years to become the U.S.’ largest independent producer, announced a series of U.S. asset sales last week to a number of undisclosed buyers. The company sold about 88 MMboe of U.S. gas and oil reserves for $1.2 billion ($915 million after taxes) or about $13.64/boe.
Devon Announces $1.2B U.S. Asset Divestiture; Canadian Asset Sales Coming Soon
Oklahoma City-based Devon Energy, which has grown rapidly through acquisitions over the last several years to become the U.S.’ largest independent producer, announced a series of U.S. asset sales Monday to a number of undisclosed buyers. The company sold about 88 MMboe of U.S. gas and oil reserves for $1.2 billion ($915 million after taxes) or about $13.64/boe.
Devon’s 2004 Earnings Increase 25%
Oklahoma City-based Devon Energy had a banner year in 2004, posting sharply higher earnings and showing solid reserves and production growth. The company’s net income was up 25% for the year to $2.2 billion ($4.38/share compared to estimates of $4.27) and net income in the fourth quarter rose 24% to $673 million ($1.35/share) compared to $543 million ($1.16/share) in 4Q2003.
Industry Briefs
PetroQuest Energy said it purchased about 8.8 Bcf of proved natural gas reserves in the Arkoma Basin of Oklahoma from an unnamed private company for $13.5 million. The company expects to allocate $2 million of the purchase price to unevaluated acreage. The reserves are 47% proved developed producing. Development costs for the proved undeveloped reserves are estimated at $0.74/Mcf. The acquisition will initially add 1.5 MMcf/d of production. “This acquisition expands our existing operations in the Arkoma Basin, adding approximately 6,000 net acres adjacent to our current acreage position and approximately 28 miles of pipeline and infrastructure in Pittsburg County, OK,” said CEP Charles T. Goodson. “This brings our total ownership to over 12,000 net acres and 36 miles of pipeline in the area.”