Здравствуйте. Вся информация этого сайта бесплатна. Вы можете сделать пожертвование и поддержать наше развитие. Спасибо.

Hello. All information of this site is free of charge. You can make a donation and support our development. Thank you.

2015-03-08 13:20:00

U.S. OIL NEED MONEY

U.S. OIL NEED MONEY

The world may run on oil, but the oil industry runs on money. The US shale boom would not have been possible without a huge inflow of capital: the small to midsized companies that led the revolution raised $875bn from syndicated loans, bonds and equities in 2007-14, 83 per cent of it in debt, according to Dealogic.

The critical question for the industry, and for the future of US oil production, is whether that financial lifeblood will continue to flow.

It is clear that some sources are drying up. E&P companies are still raising funds through equity issues: Noble Energy announced a $1bn-plus share sale last week, and Goodrich Petroleum a $49m issue on Monday. But equity is a more expensive source of capital now than it was in August, after a 35 per cent-plus drop in the S&P 500 E&P sector index.

Bond issuance by smaller independent companies has slowed to a trickle, with only two sales in January and February, according to Dealogic. At the same time, bank lending is also facing constraints.

Smaller US independents generally use reserve-based lending, with their borrowing secured against valuations of their oil and gas assets, which are linked to market prices. The borrowing bases are typically calculated twice a year, with one round of valuations going on about now. The plunge in both crude and US natural gas in the past six months will curb the amount that companies can borrow.

So given those constraints, where will the industry find the capital it needs? One answer is through larger companies, including ExxonMobil and Chevron, swallowing up the smaller, buying both assets and entire businesses. With its triple A credit rating — better than the US government's — Exxon has ample access to cheap capital, as its $7bn bond sale on Tuesday showed.

Even Exxon, though, will want to be selective about its acquisitions. Management capacity is finite, and it cannot buy everything. Market valuations are also a disincentive to making acquisitions for shares. Anadarko Petroleum, for example, is often talked about as a takeover target, but its shares are trading at about 40 times 2016 earnings, while Exxon's are at 16 times.

A takeover would dilute Exxon's earnings unless it can improve Anadarko's performance dramatically. The best value deals will be available only from companies that are forced sellers.

The other increasingly important source of capital is going to be private equity and hedge funds. Blackstone has raised $4.5bn to invest in energy, while Apollo Global Management, Goldman Sachs and others have also been raising funds. If these funds still have a positive long-term view on energy, it is a much better time to buy in now than a year ago.

Already a few deals have been done. Linn Energy, a heavily-indebted E&P company structured as a partnership, in January announced an investment of up to $500m from GSO, Blackstone's debt unit. Resolute Energy at the end of last year raised a $150m loan from Highbridge Capital Management, a hedge fund owned by JPMorgan.

But this source of capital does not look like cheap money, though. Resolute is paying Highbridge an interest rate of 10 percentage points over Libor, with a minimum of 11 per cent.

Companies seeking financing will have to show that they are investable propositions, and for the most part that is likely to mean planning for significantly higher returns on capital than in the past, even at significantly lower commodity prices.

That means that cutting costs will be vital. If costs cannot be brought down fast, both by increasing efficiency and by squeezing lower rates out of service companies, then the outlook for investment in US E&P companies will continue to deteriorate.

For anyone wanting to understand the outlook for US production and world oil markets, costs in the shale industry will be a critical indicator to watch.

ft.com

Tags: U.S., SHALE, OIL,
U.S. OIL NEED MONEY October, 19, 11:30:00

ТРАГЕДИЯ В КЕРЧИ

U.S. OIL NEED MONEY October, 19, 11:25:00

OIL PRICE: NOT ABOVE $80

U.S. OIL NEED MONEY October, 19, 11:20:00

GAS FOR CHINA: THE BIGGEST

U.S. OIL NEED MONEY October, 19, 11:15:00

RUSSIAN LNG FOR GERMANY

U.S. OIL NEED MONEY October, 19, 11:10:00

RUSSIAN YAMAL LNG

U.S. OIL NEED MONEY October, 19, 11:05:00

EXXON'S LNG FOR CHINA

All Publications »

Chronicle:

U.S. OIL NEED MONEY
2018, October, 19, 11:00:00

NORWAY'S GAS FOR BRITAIN

PLATTS - Norwegian natural gas exports to the UK jumped to their highest in six months Wednesday as consistently high UK prices incentivized flows normally only reserved for wintry periods.

U.S. OIL NEED MONEY
2018, October, 19, 10:55:00

UZBEKISTAN'S NUCLEAR: $11 BLN

AZERNEWS - The estimated cost of construction of nuclear power plant of Russian design in Uzbekistan will be about $ 11 billion, the launch of the first power unit has been planned for 2028, the Aide to the President of the Russian Federation Yury Ushakov said.

U.S. OIL NEED MONEY
2018, October, 19, 10:50:00

IRANIAN GAS: 1 BLN CMD

SHANA - Managing Director of the Iranian Gas Engineering and Development Company (IGEDC) Hassan Montazer Torbati said the supply of one billion cubic meters per day of natural gas by National Iranian Gas Company (NIGC) was one of the goals of the company by 2021.

U.S. OIL NEED MONEY
2018, October, 19, 10:45:00

CHINA - BELGIUM NUCLEAR

WNN - China and Belgium have signed a framework agreement on cooperation in the peaceful use of nuclear energy. The agreement was one of several accords signed in Brussels yesterday during a meeting between Chinese Premier Li Keqiang and Belgian Prime Minister Charles Michel.

All Publications »