Repositioning

Contract driller Helmerich & Payne Inc. has been repositioning its rig fleet or the last 10 years, well in advance of the shale revolution that has swept the oil and gas patch. Back then it wasn’t known how well suited the firm’s FlexRigs would be to horizontal drilling in the shales. As it turns out, they work quite well, H&P CEO Hans Helmerich told financial analysts during a fiscal fourth quarter earnings conference call.

In a merger that would create a formidable onshore oilfield services company, Superior Energy Services Inc. on Monday agreed to pay $2.7 billion in cash and stock to buy Complete Production Services Inc. — a 62% premium to Complete’s closing share price on Friday.

July futures rose Friday as traders saw the day’s gains as part of a repositioning of the market following a Thursday overnight trade that plunged July to as low as $4.51 and a subsequent race back up that took July as high as $4.983.

Aquila Inc. took a major step in its “repositioning” efforts on Monday, reaching agreement with two sureties to discharge the guarantees of four prepaid natural gas supply contracts. Release from the supply contracts, which represent 92% of Aquila’s prepaid gas obligations, lifts a heavy burden off of the Kansas City-based utility as it works to exit its unregulated businesses.

Burlington Resources’ North American asset repositioning started to pay off in the fourth quarter 2002, with earnings of $157 million or $0.78 per diluted share, compared to a prior-year 4Q loss of $79 million or $0.39 per diluted share. And it’s just the beginning, company officials said, pointing to continued improved results it expects from its San Juan Basin and Barnett shale properties in the U.S. and further development of its Canadian acquisitions.

Burlington Resources’ North American asset repositioning started to pay off in the fourth quarter 2002, with earnings of $157 million or $0.78 per diluted share, compared to a prior-year 4Q loss of $79 million or $0.39 per diluted share. And it’s just the beginning, company officials said, pointing to continued improved results it expects from its San Juan Basin and Barnett shale properties in the U.S. and further development of its Canadian acquisitions.

Cabot Oil & Gas announced it will close its Pittsburghoffice Aug. 31 as part of a “strategic repositioning” that includedthe sale of non-core Appalachian properties to Enervest ManagementCo. for $46.2 million last September. About 15 jobs will beeliminated as a result of the action. The remaining positions willbe transferred to existing offices in Charleston, WV, and Houston.

Cabot Oil & Gas announced it will close its Pittsburghoffice Aug. 31 as part of a “strategic repositioning” that includedthe sale of non-core Appalachian properties to Enervest ManagementCo. for $46.2 million last September. About 15 jobs will beeliminated as a result of the action. The remaining positions willbe transferred to existing offices in Charleston, WV, and Houston.

Suncor Energy Inc. of Calgary said it will reposition its gasbusiness to achieve at least a 10% return on capital within fiveyears. Suncor intends to build competitive operating areas, improvebase business efficiency and create new, low-capital businesses.