After its debt swap announcement, CHK’s stock initially spiked to $4.63 on May 12, 2016, but closed at $4.17, down 4.3% compared to the previous close.
Breitburn Energy Partners is going through a liquidity crisis. It expects the borrowing base under its credit facility to be redetermined in late May 2016.
Linn Energy (LINE) is among several upstream producers plagued by the extended low commodity price environment and high leverage. LINE has a huge outstanding debt of ~$10 billion sitting on its balance sheet.
At a broader level, 72.7% of the analysts surveyed by Bloomberg rate Breitburn Energy a “hold,” 9.1% rate it a “buy,” and the remaining ~18.2% rate it a “sell.”
At a broader level, 60% of analysts surveyed by Bloomberg rate Vanguard Natural Resources a “hold,” 30% rate it as a “buy,” and the remaining ~10% rate it a “sell.”
In the week ending November 25, there were 189 operating US natural gas rigs. Since the beginning of 2015, the natural gas rigs fell by 139 as of November 25.
The top upstream MLP losers include Mid-Con Energy Partners (MCEP), Linn Energy (LINE), Vanguard Natural Resources (VNR), and Atlas Resource Partners (ARP).
The top upstream MLP losers include Vanguard Natural Resources (VNR), Linn Energy (LINE), Memorial Production Partners (MEMP), and Legacy Reserves (LGCY).
The two most recent recommendations are by UBS and Scotia Howard Weil, and they rate LINE “sell” and “sector perform,” with target prices of $2 and $5, respectively.
Upstream companies’ earnings are significantly tied to crude oil and natural gas prices. UNG tracks daily movements in natural gas futures. It rose 0.44% yesterday.
In 1Q15, Marathon Oil’s North American exploration and production sales volume increased 33%, compared with an 8% volume decline in its international operations.
According to Baker Hughes, there were 862 active oil and gas rigs in the US in the week ending July 2—three more than the previous week ending June 26.
In the US, there were 228 natural gas rigs operating in the week ending June 26—five more than in the previous week. This was the second week with an addition.
In 1Q15, EOG Resources’ adjusted EBITDAX fell 58% to $747.7 million from $1.79 billion a quarter ago. Compared to the figure last year, the fall amounted to 68%.
In the US, there were 223 natural gas rigs operating in the week ending June 19—two more than the week before. The fall has slowed down in recent weeks.
The decline in the natural gas rig count slowed down in the past four weeks. Four rigs went offline in the preceding four weeks, and 43 went offline in the four weeks before that.
The US rig count experienced an uptrend in most of 2014. But that trend reversed with 26 consecutive weeks of falling rig counts, hitting the lowest level since January 2003.
There were 875 active oil and gas rigs in the US during the week ending May 29, 2015. With last week’s fall, the average four-week US rig count drop was eight.
RSP Permian’s crude oil production increased 98% from 1Q14 to 1Q15, while natural gas production increased 68%. Its natural gas liquids production increased 48% during the same period.
Encana’s (ECA) 1Q15 production decreased compared to production in the same quarter last year. Its overall crude oil equivalent production volume decreased by 20%, down to 430.1 Mboebpd.
Encana (ECA) is an independent oil and gas exploration and production company. The company produces oil and gas in resource plays located in the US and Canada.
The oil and gas rig count signals how confident producers are about drilling for oil and gas. Falling rig counts indicate a decline in upstream activity.
Approximately 69% of analysts tracking EOG Resources rate it a “buy,” ~21% of these analysts rate the company a “hold,” and 10% of these analysts recommend a “sell.”
EOG estimates its realized crude oil price to remain below the West Texas Intermediate price and its natural gas price to remain below the Henry Hub price in 2015.
In the last 12 months to May 1, the total US crude oil and natural gas rig count dropped by 949, or 51%. The number of active oil rigs decreased by 848, or 56%.
The head and shoulder pattern is the most common reversal pattern. It forms at the trend’s peak. The pattern has three peaks—left shoulder, head, and right shoulder.
Price patterns are trends that occur in stock charts. The charts are used in technical analysis. The pattern forms recognizable shapes. Price patterns are used to forecast the prices.
As we discussed previously in this series, National Fuel Gas (NFG) noted in its latest fiscal 3Q14 results that its earnings growth was driven by higher earnings in its Midstream and Upstream businesses.
LINE’s EBITDA shows that it has been struggling with its earnings power lately. It has struggled despite a steady rise in its oil and gas production. LINE’s debt exploded from just over $3 billion in 3Q11 to over $9.5 billion in 2Q14.
LINN Energy LLC (LINE) is a U.S. independent oil and natural gas exploration and production company. LINE went public in a 2006 initial public offering (or IPO) that raised ~$261 million.
LINE hasn’t missed a distribution in the last seven years. The distributions only move in one direction—up. Currently, it pays a monthly distribution of $0.24. It trades at a yield of just under 10%!
In the four months between May 21 and September 18, LINN Energy (LINE) and ExxonMobil (XOM) entered into two asset swap deals. LINE showcased the deals. They hold many advantages for the company.
On September 18, LINN Energy LLC (LINE) and ExxonMobil Corp. (XOM) announced a “non-monetary” asset swap deal. The deal involved oil and gas assets in California and Texas.
Kinder Morgan Management LLC (KMR)—formed in May 2001—is a limited partner in and manager of Kinder Morgan Energy Partners (KMP). So essentially, KMP is run by KMR, which in turn is run by Kinder Morgan Inc (KMI).
The representative NGL barrel reached highs of up to ~$50 per barrel in early February, given the strength in propane prices due to a cold winter as well as natural gas prices that pushed ethane prices up.
This week saw NGL prices trade higher—a positive short-term indicator. Besides, despite falling from highs reached in February, NGL prices remain up significantly since late June 2013.
NGL prices traded down by 4% on the week, as most of the composition experienced a drop in price. However, the representative NGL barrel remains up over 50% since lows in June.
This week saw NGL prices trade up by 5%, a positive short-term indicator. Plus, note that NGL prices are up significantly since late June, a positive medium-term indicator.
This week saw NGL prices trade up, a positive short-term indicator. Plus, note that NGL prices are up significantly since late June—a positive medium-term indicator.
