MURPHY CUTS 60%
Murphy Oil Corp. is expected to cut its budget for 2016 by more than half to below $1 billion, according to a Raymond James & Associates Inc. energy update on Dec. 9.
"At yesterday's analyst dinner, Murphy guided—to our knowledge, for the first time—to less than $1 billion of capital spending in 2016," RJA reported. "This compares to $2.3 billion in 2015, so a nearly 60% cut. This is one of the steepest 2016 spending cuts we've seen across oil and gas producers."
The financial services firm says, as a result, Murphy anticipates a 7% drop in its production guidance when comparing its 2016 average from the fourth-quarter 2015 run-rate.
"A better comp is [fourth-quarter 2016] vs. [fourth-quarter 2015], which management didn't spell out, but assuming a linear trajectory, there would be a 12-15% decline by yearend 2016," RJA said.
The company's Eagle Ford production "will take the brunt," RJA said, with plans to average 1.75 rigs, down from 3 in the fourth quarter. Murphy's oil and natural gas production from the play in 2014 was 51,300 b/d and 33 MMcfd, respectively.
Murphy operates four fields in the Eagle Ford: Karnes with 62% interest, Tilden 94%, Catarina 100%, and Nueces 86%.
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GAZPROM - The parties discussed relevant issues related to bilateral cooperation, including the Baltic LNG project. Emphasis was placed on the priority measures aimed at developing a joint design concept (pre-FEED).
BHGE - U.S. Rig Count is up 11 rigs from last week to 1,063, with oil rigs up 8 to 869, gas rigs up 4 to 193, and miscellaneous rigs down 1 to 1. Canada Rig Count is up 13 rigs from last week to 195, with oil rigs up 8 to 127 and gas rigs up 5 to 68.
REUTERS - Brent crude futures had risen $1.02 cents, or 1.3 percent, to $81.28 a barrel by 0637 GMT. The contract dropped 3.4 percent on Thursday following sharp falls in equity markets and indications that supply concerns have been overblown. U.S. West Texas Intermediate (WTI) crude futures were up 80 cents, or 1.1 percent, at $71.77 a barrel, after a 3 percent fall in the previous session. WTI is on track for a 3.5 percent drop this week.
EIA - Brent crude oil spot prices averaged $79 per barrel (b) in September, up $6/b from August. EIA expects Brent spot prices will average $74/b in 2018 and $75/b in 2019. EIA expects West Texas Intermediate (WTI) crude oil prices will average about $6/b lower than Brent prices in 2018 and in 2019.