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Interesting news here. Any merit?
McMoRan Exploration Co. Reports Second-Quarter/Six-Month 2012 Results
PRODUCTION ACTIVITIES
Second-quarter 2012 production averaged 140 MMcfe/d net to McMoRan, compared with 197 MMcfe/d in the second quarter of 2011. Production in the second quarter of 2012 was below McMoRan’s previously reported estimate of 145 MMcfe/d in April 2012 because of unplanned downtime for repairs to platforms and third party pipelines and weather related shipping delays. Excluding potential production from Davy Jones, production is expected to average approximately 137 MMcfe/d for the year 2012, including 135 MMcfe/d in the third quarter of 2012. McMoRan’s estimated production rates are dependent on the timing of planned recompletions, production performance, weather and other factors.
Production from the Flatrock field averaged a gross rate of approximately 121 MMcfe/d (50 MMcfe/d net to McMoRan) in the second quarter of 2012, and as anticipated was lower than the year ago period which averaged 172 MMcfe/d (70 MMcfe/d net to McMoRan). McMoRan owns a 55.0 percent working interest and a 41.3 percent net revenue interest in the Flatrock field.
EXPLORATION AND DEVELOPMENT ACTIVITIES
Since 2008, McMoRan’s drilling activities in the shallow waters of the Gulf of Mexico (GOM) below the salt weld (i.e. listric fault) have successfully confirmed McMoRan’s geologic model and the highly prospective nature of this emerging geologic trend. The data from five wells drilled to date indicate the presence below the salt weld of geologic formations including Upper/Middle/Lower Miocene, Frio, Vicksburg, Upper Eocene, Sparta carbonate, Wilcox, Tuscaloosa and Cretaceous carbonate, which have been prolific onshore, in the deepwater GOM and in international locations. The results of these activities indicate the potential for a major new geologic trend spanning 200 miles in the shallow waters of the GOM and onshore in the Gulf Coast area. Further drilling and flow testing will be required to determine the ultimate potential of this new trend.
Full press announcement: http://www.alphatrade.com/news/stories/AM/2012-07-17/BIZ/201207170800BIZWIRE_USPR_____BW5906.html
Market seems to have factored in the dilution already. 5% hit doesn't seem too bad?
Market pulled back on 8k material agreement. Still doing DD on the agreement but seems positive. Buying opportunity possibly here.
Another 5% kicker today. Also 8K on election of directors.
Now that is advise I most certainly intent to take. Thank Johnsyn :)
Thanks for your response. 800 BOPD is a massive number for a micro cap stock. I would be very interested in any links or DD that indicates this type of production. I will keep digging but thanks in advance for your help.
Very interesting action today. Recent news seems to suggest something positive to come.
I am very familiar with the Corsicana potential which makes this an interesting play. Does AGRT currently have any production?
Sounds like a good opportunity. I am excited to see them realize their potential after merger.
I would tend to agree with you. Thank you for the chart.
Some action I would love to see!
OXY has shown improving profitability over the years and is expected to do so with its presence in the Permian shale and its shift to liquid plays in California.
It is trading at a P/E and P/B ratio of 9.7x and 1.7x, and offers a dividend yield of 2.5%, which is in line with its competitors.
We believe the company is well placed to take advantage of the oil and shale gas boom in the U.S. Therefore, we have a positive outlook on the stock, while oil prices remain a key risk to our thesis.
Investors willing to take a long position or already holding OXY in their portfolio, can hedge their position against a decline in oil prices by taking a short position in the Oil ETF (USO).
IF YOUR A BULL
Exxon has been outperforming the Energy Sector ever since it declared a dividend increase of 21% in 2Q2012, compared to the previous quarter's figure, and has seen increased investor interest due to its dividend yield, which is higher than its 10-year average.
If the slowdown in the U.S. and Chinese economies is reversed and the European Union debt crisis is resolved, oil price could revert to levels of $100/bbl. In such a case, the stock price could target a price of $101/share.
IF YOUR A BEAR
Oil prices have dropped by an approximate 20% since the debt crisis in the European Union intensified and the slowing signs of growth from the U.S. and China.
Since oil prices and profitability are highly correlated, any negative development on this front would drive down earnings as well as the stock price. However, historically, OPEC producers adjust their output according to the economic scenario to support oil prices.
If all negatives kick in and the prices of oil drop further, then the stock could trade below $70/share.
COP has positioned the company as a high-yielding E&P, in a sector where investors have historically rewarded portfolio and production growth over cash returns to shareholders (dividend and share repurchase) and free cash generation.
The share price performance of COP will depend on whether dividend-seeking investors view COP as a low volatility stock.
The stock price performance has shown a decline of 4% in the previous three months, underperforming the NYSE composite, a decline of 2% YTD underperforming the NYSE composite and a decline of 1% in the last one year, outperforming the NYSE composite.
The EPS of $2.02/share for 1Q2012 increased 11% compared with EPS of $1.82/share reported in 1Q2011
HESS Financial Performance
E&P earnings, after witnessing a growth of 163% in 2010, underwent a decline of 3% in 2011. The average crude oil prices for HES were $89.99/bbl, $66.20/bbl and $51.62/bbl in 2011, 2010 and 2009. The average realized natural gas prices were $5.96/mcf, $5.63/mcf and $4.85/mcf in 2011, 2010 and 2009.
The output of the company averaged 370,000, 418,000 and 408,000 barrels of oil equivalent per day in 2011, 2010 and 2009.
The R&M segment witnessed an increase in the loss incurred in 2011, as compared to the previous years. Refining witnessed a loss of $728 million (including the impairment loss related to HOVENSA and the shutdown of the refinery in St CroiX), $445 million and $87 million in 2011, 2010 and 2009.
The refining business has been in losses due to the global challenges being faced by the company, due to capacity additions in emerging markets and competitive disadvantages compared to other refiners.
The marketing business recorded earnings of $185 million, $215 million and $168 million in 2011, 2010 and 2009. The improvement in earnings in 2010, as compared to 2009, was due to the improved margins from weak economic conditions. The decline witnessed in 2011 was due to lower sales volumes and lower margins.
Hess Growth Prospects
The company has acquired strategic acreage in the Utica shale play in Ohio, U.S., and the Kurdistan region of Iraq in 2011.
The company is expected to witness growth from its production in the Bakken Shale, North Dakota.
The company intends to continue the appraisal of the Eagle Ford Shale, Texas.
The company continued investment in it Tubular bells project in the deep water Gulf of Mexico.
The company has made significant progress on its assets in Australia, and expects further development going forward.
The company announced a discovery in offshore Ghana. The discovered well is expected to have 490 net feet of oil and condensate. The company is expected to continue drilling in 2012.
Petronas signed three production sharing contracts with HES for its gas fields off Malaysia's East Coast.
Honestly I would believe it. LNG has huge upside in my opinion and companies like CVX have gotten big through M & A so why not here.
Absolutely agree.
Chevron (CVX +0.5%) outperforms its peers after JPMorgan (JPM) upgrades the stock to "neutral" from "underweight," saying the oil major offers a "more balanced risk-reward outlook" as its project queue delivers "substantial growth in long-lived production." A positive report about Chevron's oil spill in Brazil and its Q2 update may also be helping.
Exxon Mobil (XOM -0.7%) is downgraded to Hold from Buy at Deutsche Bank, which also favors Chevron (CVX +0.2%) as its top mega-cap energy play. "Volumes are guided to be weak in 2012 and likely to underperform with our forecast showing down 4% Y/Y, even having recovered from Q1’s 6% fall," the firm writes, estimating Q/Q earnings to come in flat.
Brazil's National Petroleum Agency says it's unlikely to fine Chevron (CVX) more than 50M reais ($24.5M) for its role in a November oil spill off Brazil's coast; the agency is expected to release its report on the incident later this week. CVX and Transocean (RIG) face civil and criminal lawsuits for their roles in the incident at the CVX-operated Frade offshore oil field.
Will have to get my DD gear box turning on that one. Your thoughts?
I'm not up on the rumor mill!
Haha yeah they are probably at the bars already!
Ahh I see what you mean. I am hugely bullish on LNG as an export in general. Prices in Europe are $10+ and Asia even higher (from the last data I saw). The over supply in the US is what has driven down prices so this would also help stabilize prices in the US if we can effectively export gas.
Yeah I see positives from their moves but will watch for value pricing. Nice pick up @ $8 wish I swooped some then!
I agree fundamentals are a matter of perception and perception has changed. I think as these reserves are unlocked and oil rebounds MHR can be a big winner for everyone. Just my honest opinion.
LNG dropped because the are raising capital to pay off debt (correct me if I am wrong). MHR increased its proven reserves and didn't move. It could be the market already factored in these reserves. Thoughts?
Paying off debt is good for the company but current investors never like dilution no matter the reason. Could be a buying opportunity once the price factors it in.
Good points all around. I appreciate your DD.
Armada Oil, Inc. Accelerates Oil Exploration in Niobrara Region With 3-D Seismic Survey; Signs Geophysical Data Acquisition Agreement With Geokinetics
Jul 9, 2012 8:45:00 AM
2012 GlobeNewswire, Inc.
HOUSTON, July 9, 2012 (GLOBE NEWSWIRE) -- Armada Oil, Inc. (AOIL.QB), an emerging independent oil and gas company, has entered into a geophysical data acquisition agreement with Geokinetics USA, Inc. (NYSE Amex:GOK), a leading provider of seismic data to the oil and gas industry worldwide, to conduct a 3 dimensional (3-D) seismic survey on the Company's strategic acreage position in the developing Niobrara oil play.
According to its data acquisition agreement, filed today with the U.S. Securities and Exchange Commission (SEC), the survey will cover approximately 41.05 square miles (26,272 acres) in and around the Laramie and Hanna Basins in Southern Wyoming.
"Technological advances in the last decade have helped create new opportunities in unconventional energy plays, but in order for any company to fully tap the potential and truly make the Niobrara an economic resource play they must successfully translate geological understanding into completions success and determine the most commercially viable completions strategies to ensure long-term production," said Richard F. Miles, Chief Executive Officer of Geokinetics.
"Armada's front-end investment in an advanced 3-D seismic program is part of our aggressive growth strategy and will further illuminate the Niobrara play, allowing exploration for reserves not locatable by other means and providing the necessary data to develop the new discoveries," said Armada Oil Chief Executive Officer James J. Cerna. "We plan to drill two wells by year-end in the Niobrara and are eager to be working in tandem with Geokinetics to record and interpret state-of-the-art information that will enable us to identify high-potential drill targets."
Further details on progress of the southern Wyoming seismic program will be released as they become available. An electronic copy of the related 8-K and other filings are available on the company website in addition to the website of the SEC: http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001081074&owner=include&count=40.
About Geokinetics USA, Inc.
Geokinetics USA, Inc. is a leading provider of seismic data acquisition, seismic data processing services and multi-client seismic data to the oil and gas industry worldwide. Headquartered in Houston, Texas, Geokinetics is the largest Western contractor acquiring seismic data onshore and in transition zones in oil and gas basins around the world. Geokinetics has the crews, experience and capacity to provide cost-effective world-class data to its international and North American clients. For more information on Geokinetics, visit www.geokinetics.com.
About Armada Oil, Inc. (www.armadaoilinc.com)
Houston, Texas-based Armada Oil, Inc. (AOIL.QB) is an independent oil and gas company focused on discovering, acquiring and developing multiple objective onshore oil and natural gas resources in prolific and productive geological formations in North America. Armada holds strategic acreage positions in and around the Laramie and Hanna Basins in Southern Wyoming that includes a contiguous 25,000+-acre site near existing infrastructure in the liquids-rich Niobrara formation and a footprint in the Eagle Ford shale play in Texas. For more information, please visit www.armadaoilinc.com.
The Armada Oil, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=13093
Armada Oil, Inc. Launches New Website; Issues Form 10-K Fiscal Year Ending March 31, 2012
Company Enhances Online Communications to Strategic Investors and Partners
Jun 27, 2012 4:41:00 PM
2012 GlobeNewswire, Inc.
HOUSTON, June 27, 2012 (GLOBE NEWSWIRE) -- Armada Oil, Inc. (AOIL.QB), an emerging independent oil and gas company with significant acreage in the developing Niobrara oil play in Wyoming, announced the launch of its new corporate website at www.armadaoilinc.com in its Annual Report on Form 10-K filed today with the U.S. Securities and Exchange Commission (SEC). Electronic copies of Armada's Form 10-K and other filings are now available on the company website in addition to the website of the SEC: http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001081074&owner=include&count=40.
"The Niobrara shale had emerged as one of the most promising oil-producing shales in the U.S.," said Mr. James J. Cerna, President and CEO of Armada Oil, Inc. "As we explore and evaluate the full potential of the transaction that added 25,000+ acres to our portfolio in this emerging, liquids-rich resource play, we recognize the importance of continually communicating our progress and success. Our objective in designing our website was to demonstrate Armada's central role in the development of the Niobrara and serve as a resource for the public, investors and potential partners domestically and globally, seeking additional information on this emerging oil play."
About Armada Oil, Inc. (www.armadaoilinc.com)
Houston, Texas-based Armada Oil, Inc. (AOIL.QB) is an independent oil and gas company focused on discovering, acquiring and developing multiple objective onshore oil and natural gas resources in prolific and productive geological formations in North America. Armada holds strategic acreage positions in and around the Laramie and Hanna Basins in Southern Wyoming that includes a contiguous 25,000+ acre site near existing infrastructure in the liquids-rich Niobrara formation and a footprint in the Eagle Ford shale play in Texas. For more information, please visit www.armadaoilinc.com.
The Armada Oil, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=13093
Photo Release -- Armada Oil, Inc. Adds Eric Wold, CFA, Veteran Equity Analyst, to Board of Directors
Company Aggressively Bolsters Board as it Seeks to Leverage Strategic Niobrara Acreage
May 31, 2012 8:30:00 AM
2012 GlobeNewswire, Inc.
HOUSTON, May 31, 2012 (GLOBE NEWSWIRE) -- Armada Oil, Inc. (AOIL.OB), an emerging independent oil and gas company, is pleased to announce the appointment of veteran equity analyst Eric Wold, CFA, to its Board of Directors, effective immediately. Today's announcement follows the addition of Rhonda B. Rosen as Chief Financial Officer and two appointments to the Board of Directors: Kenneth T. Hern, former President of Texaco Saudi, and finance industry veteran Will E.D. Matthews.
Armada Oil, Inc. (AOIL.OB) Appoints Eric Wold, CFA, to its Board of Directors
A photo accompanying this release is available at http://www.globenewswire.com/newsroom/prs/?pkgid=13086
"Eric's addition supports the continual maturation of our Board and management team," explained Mr. James C. Cerna, President and CEO of Armada Oil, Inc. "Having worked alongside Eric in my previous capacity as CEO of Lucas Energy, where he concurrently served on the Board, I've seen first-hand his depth of knowledge with research coverage, public company strategy and ability to identify and capitalize on early trends in the capital markets."
Mr. Wold joins Armada following its merger with NDB Energy, Inc., a partnership that enabled the Company to "leapfrog into an acreage position in an up and coming play" in the Niobrara, according to Rigzone.com, a leading industry-centric online publication. Armada's Niobrara project includes more than 25,000 acres in Carbon County, Wyoming near existing infrastructure. Armada has acquired 1,280 acres to date, engineering data, 2-D seismic with an option to purchase an additional 23,700+ acres.
Armada CEO James Cerna added, "Our near-term development plans include a 3-D seismic shoot of the area in the upcoming fall season and drilling two test wells by year-end. Of course, we also plan to seek strategic investors and partners, identify divestiture and acquisition opportunities and pursue a more senior listing for the company; the kinds of initiatives where I'm confident we can leverage Eric's expertise."
Mr. Wold previously served on the Board of Directors of Lucas Energy (AMEX:LEI), a publicly held company within the oil and energy sector from 2005-2009. He is currently a Senior Analyst with B. Riley & Co., a leading full-service investment bank, where he has more than 18 years of buy-side and sell-side equity research experience, reporting on a dozen companies in the Internet and Media and Entertainment sectors with market caps between $50 Million and $6 billion, including Tivo, Inc., Netflix, Inc. and Coinstar, Inc.
Previously, Mr. Wold held the position of Managing Director, Equity Research at the investment banking firm Merriman Capital, Inc., where he covered the Branded Global Consumer and Media Groups. He was also Director of Corporate Finance with NightFire Software, a privately held telecommunications software company based in Oakland, California. At First Security Van Kasper, he served as Vice President and Senior Research Analyst, where he was responsible for the Restaurant and Branded Consumer sectors.
Mr. Wold began his career on the buy-side with research analyst positions with both Polynous Capital Management (a hedge fund that he co-founded in 1996) and GT Global Financial Services. He received his Chartered Financial Analyst (CFA) designation in 1997 and a bachelor's degree in Finance from the University of California at Berkeley.
About Armada Oil, Inc. (www.ndbenergyinc.com)
Houston, Texas-based Armada Oil, Inc. (AOIL.OB) is an independent oil and gas company focused on discovering, acquiring and developing multiple objective onshore oil and natural gas resources in prolific and productive geological formations in North America. Armada holds strategic acreage positions in an around the Laramie and Hanna Basins in Southern Wyoming that includes a contiguous 25,000+ acre site near existing infrastructure in the liquids-rich Niobrara formation and a footprint in the Eagle Ford shale play in Texas. For more information, please visit www.ndbenergyinc.com.
Armada Oil, Inc. Appoints Kenneth T. Hern, Former President of Texaco Saudi, Inc., and Finance Industry Veteran Will E.D. Matthews to Board of Directors
Appointments Follow Name Change and Recent Acquisition Increasing Company's Key Acreage Position in the Niobrara Shale Formation
May 16, 2012 8:35:00 AM
HOUSTON, TX -- (Marketwire) -- 05/16/12 -- Armada Oil, Inc. (OTCBB: AOIL), an emerging independent oil and gas company, today announced that it has appointed international oil and gas executive, Kenneth T. Hern, former president of Texaco Saudi and finance industry veteran Will E.D. Matthews to its Board of Directors, effective immediately.
"Ken's global executive leadership roles with Texaco, combined with his experience advising early-stage public companies, uniquely position him to counsel Armada Oil at this pivotal time in our development," said James J. Cerna, President and CEO of Armada Oil, Inc. "Correspondingly, Will's nearly two decades in investment banking, private equity and hedge funds in U.S., Canadian and Asian markets, will help facilitate growth following our recent acquisition of Armada Oil, Inc., enhancing our portfolio with an unprecedented 25,000+ acres of prime acreage in the Niobrara formations in Carbon Country, Wyoming."
Mr. Hern joins Armada Oil succeeding a 25-year-career with independent oil giant Texaco, now part of Chevron, the multinational energy corporation, where he served as President of Texaco Saudi, Inc., between 1981-1984, as Vice Chairman and Managing Director of Texaco Nigeria Limited, from 1984 through 1989 and as President of Texaco Brazil from 1989 through 1993.
He also serves on the Board of Directors of Mesa Energy Holdings, Inc., a publicly traded oil and gas exploration and production company, and Flotek Industries, Inc., a supplier of drilling and production related products and services to the energy and mining industries. He was previously Chairman of the Board and CEO of Nova Biosource Fuels, Inc.
Mr. Hern earned a Bachelor of Arts in Chemistry from Austin College and a Master of Science in Organic Chemistry from North Texas State University.
Mr. Hern joins the Board along with Will E.D. Matthews, who currently serves as Principal of Macritchie Metals Pte Ltd in Singapore, a mining boutique focused on acquiring, operating and financing minerals projects as well as providing capital raising services.
Previously, Mr. Matthews held the position of Managing Director at GS Investment Strategies from 2007-2009, Aramanth Advisors LLC from 2003-2006 and Principal at Polar Equity Capital, LLC from 2002-2003. He also served as Vice President, Mergers & Strategic Advisory Group with Goldman, Sachs & Co. from 1999-2002; Vice President, Private Equity at BMO Nesbitt Burns Equity Partners, Inc. from 1996-1999 and as an associate with UBS Securities, Inc. from 1989-1992. He received a Master of Business Administration at the University of Western Ohio, Richard Ivey School of Business and a Bachelor of Science in International Business and Finance from New York University's Stern School of Business.
About Armada Oil, Inc. (www.ndbenergyinc.com)
Armada Oil, Inc. is an emerging independent oil and gas company, exploring, developing, producing, and marketing crude oil and natural gas from various known prolific and productive geological formations. It holds interests in and around the Laramie and Hanna Basins in Southern Wyoming that includes more than 25,000 acres in the Niobrara formation and a footprint in the Eagle Ford shale play in Texas. To date, Armada Oil, Inc. has acquired 1,280 acres, engineering data, 2D seismic and has an option to purchase an additional 23,700+ acres.
Yeah it is all linked up together. Even sky rocking oil prices will drive down economies.
A lot of evidence suggests that the 2008 crash that lead to the collapse of the real estate markets followed by the stock markets was caused by the run away oil prices.
Now of course there was a lot of underlying problems but oil was the probable cause or so it seems.
I've heard some financial wizards even calling for $300 per barrel. Either way I think oil is the place to be. Some brokers I have talked to even say gold has already had its rally and its cycle won't climb much but oil is about to start a strong bull market (more then it already has). Interesting to say the least.
Hows about $200 per barrel? Government says its possible.
http://www.theatlantic.com/business/archive/2012/06/-200-oil-the-government-says-its-possible/259243/
What am I missing, this is great news, shouldn't the stock price improve considerably?
LOL yeah I would assume so :)