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Operators at Risk
“Rigzone” reports a sharp increase in the number of companies on the B3 Negative List published by Moody’s Investor Service. The list includes those companies that Moody’s considers speculative and high-risk for the long term. The number of companies on the list has increased to 223 over the last three months. This is an 8%… Read More
High Stakes for Domestic Operators
In a recent blog (https://rudyenergy.com/risk-to-independents-exaggerated/ ) I cited an article in “World Oil”, which, based on analysis by consulting group Wood Mackenzie, contended that domestic operators were largely immune to the impact of fall reserve revaluations by lenders. Now, “Rigzone” reports the investment firm Raymond James (RayJa) has reached the opposite conclusion. RayJa contends that… Read More
Oxy Sells Bakken Acreage
“Rigzone” reports that Occidental Petroleum Corp. is selling roughly 300,000 acres in North Dakota’s Bakken shale. While Oxy is not strapped for cash, the sale will enable the company to remain cash neutral during the current industry downturn and concentrate on other plays. The Bakken assets were sold for $500 million to a private equity… Read More
Eagle Ford Gas
Apparently the Eagle Ford shale of South Texas is a microcosm of the domestic energy industry. “World Oil” reports that the same “retreat to the core” strategy is playing out in Karnes County as has been the case across the nation. As prices drop and funds become scarce, shale operators are devoting their remaining cash… Read More
Risk to Independents Exaggerated
A recent article in “World Oil” cites two studies by consulting firm, Wood Mackenzie, which concludes that the independent energy segment of the industry is not in imminent danger. Many industry commentators had predicted dire consequences for small oil and gas producers as a result of this Fall’s recalculation of reserves used in Reserve Based… Read More
