ConocoPhillips’ natural gas and oil production worldwide rose in the first three months of the year, but its exploration and production (E&P) unit apparently suffered because of lower gas prices in North America. In an interim quarterly earnings update, the Houston-based producer said it expects 1Q2009 production to be about 30,000 boe/d more than in 4Q2008. E&P results, however, are expected to be impacted by “losses in the U.S. Lower 48 and Canada mainly due to lower realized natural gas prices.” Exploration expenses for the quarter were estimated to be around $275 million before taxes. CEO Jim Mulva early this year projected that the company’s output in 1Q2009 would be flat sequentially (see NGI, Jan. 26). The company swung to a loss of $34 billion in 4Q2008. Midstream operating results are seen falling in 1Q2009 because of a drop in natural gas liquids prices. However, Conoco expects to record an $85 million gain related to the recognition of deferred gains on shares issued by a unit of DCP Midstream Partners LP, a joint venture of Spectra Energy and Conoco. Conoco is scheduled to issue its quarterly results on April 23.
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ConocoPhillips’ natural gas and oil production worldwide rose in the first three months of the year, but its exploration and production (E&P) unit suffered because of lower gas prices in North America, the company said Thursday.
House Democrats suffered a major defeat Wednesday as they failed to garner a two-thirds majority needed to pass a $10 billion omnibus lands package (S. 22) that would take millions of acres of public lands in the West off the table for potential oil and natural gas development.
A decision on whether to move forward with the long-proposed Mackenzie Gas Project (MGP) has suffered yet another delay, with Canadian regulators admitting Friday that they will not complete a report on the natural gas project for another year.
Rep. John Dingell (D-MI) suffered a stinging setback Wednesday when he narrowly lost a vote in the Democratic Steering Committee to challenger Rep. Henry Waxman (D-CA) for the gavel of the powerful House Energy and Commerce Committee.
As the stock market suffered its eighth straight day of losses Friday and the Dow flirted with the 8,000 mark, several more domestic oil and natural gas producers reported that they were cutting their planned capital expenditures (capex) for the rest of the year and/or 2009 and were rolling back their drilling programs or postponing planned acquisitions in order to preserve capital liquidity. Producers said they also had taken steps to shore up their bank credit lines.
Upstream master limited partnerships (MLP) have suffered from the credit crisis along with all high-yield securities, but the distributions from companies in this sector are backed by “solid” oil and natural gas production and cash flows, which will only increase over time, said energy analysts in a note to clients.
Canadian exporters suffered a US$1.7 billion revenue hit as marginal volume growth failed to make up for soft prices during the first three quarters of the current natural gas trading year, records of the National Energy Board (NEB) show.