BHP Billiton (BHP), in search for increased earnings from existing assets, is looking to its DUC wells to provide a boost.
The natural resources giant has some premium wells it has been sitting on that it can quickly complete and make a profit. It didn't reveal how many wells it has that can generate earnings at about $45 per barrel, but it does have about 1,400 it will complete if the price of oil approaches the $60 per barrel mark.
With iron ore expected to be subdued for the next decade, and coking coal producing some profits, BHP needs another profitable revenue stream to move its earnings. Shale oil is an excellent asset, with a relatively small investment needed to get them going.
If oil sustainably jumps past the $50 per barrel mark, it's also looking at developing new wells.
More on BHP Billiton and its DUC wells strategy
Showing posts with label BHP Billiton. Show all posts
Showing posts with label BHP Billiton. Show all posts
Wednesday, June 22, 2016
Monday, October 25, 2010
BHP (NYSE:BHP) Spending $900 Million on Gas and Oil Exploration in Fiscal Year
In their fiscal year ending June 2011, BHP Billiton Ltd. (NYSE:BHP) said they plan on spending a record $900 million in oil and gas exploration.
The 2010 fiscal year exploration budget of BHP was $817 million. Spending in the quarter ending September 30 was only $74 million, as the bulk of the spending will occur in the second half of their fiscal year.
On the company website, BHP says their primary gas and oil exploration focus going forward will be the Gulf of Mexico, Australia, Canada, the Falklands and Malaysia.
Even with Gulf operations being slowed by the Obama administration moratorium, BHP still sees results being in line with 2010's.
Overall production for last year increased by 15 percent to 158.6 million barrels.
The 2010 fiscal year exploration budget of BHP was $817 million. Spending in the quarter ending September 30 was only $74 million, as the bulk of the spending will occur in the second half of their fiscal year.
On the company website, BHP says their primary gas and oil exploration focus going forward will be the Gulf of Mexico, Australia, Canada, the Falklands and Malaysia.
Even with Gulf operations being slowed by the Obama administration moratorium, BHP still sees results being in line with 2010's.
Overall production for last year increased by 15 percent to 158.6 million barrels.
Friday, September 3, 2010
Call Buyers Crush on Anadarko (NYSE:APC)
Rumors are flying that BHP Billiton (NYSE:BHP) is not just interested in fertilizer and Potash Corp. (NYSE:POT), but may be eyeing up Anadarko Petroleum (NYSE:APC) as well.
Shares of Anadarko surged yesterday after the reports came out, rising above 5 percent at one time, but drawing back and closing at $50.24, gaining $1.45, or 2.97 percent at the end of the trading session.
Call volume were the heaviest for Anadarko for the September $55 strike, with over 9,000 contracts being exchanged by a little after noon EDT. Close to 4,000 of those were acquired at an average premium of $0.51 apiece.
For the September $52.5 strike, call buyers bought close to 2,000 calls at a premium of $1.01 each. Another 2,900 calls now in-the-money calls were scooped up at the September $50 strike for an average premium of $1.85 each.
Interestingly, the frenzy continued into the November $55 strike, where traders acquired about calls for an average premium of $2.29 each.
If the acquisition rumors persist, or if they're confirmed to be true by a bid from BHP, calls should shoot higher before the expiration.
Shares of Anadarko surged yesterday after the reports came out, rising above 5 percent at one time, but drawing back and closing at $50.24, gaining $1.45, or 2.97 percent at the end of the trading session.
Call volume were the heaviest for Anadarko for the September $55 strike, with over 9,000 contracts being exchanged by a little after noon EDT. Close to 4,000 of those were acquired at an average premium of $0.51 apiece.
For the September $52.5 strike, call buyers bought close to 2,000 calls at a premium of $1.01 each. Another 2,900 calls now in-the-money calls were scooped up at the September $50 strike for an average premium of $1.85 each.
Interestingly, the frenzy continued into the November $55 strike, where traders acquired about calls for an average premium of $2.29 each.
If the acquisition rumors persist, or if they're confirmed to be true by a bid from BHP, calls should shoot higher before the expiration.
Thursday, September 2, 2010
BHP (NYSE:BHP) May Bid for Anadarko (NYSE:APC)
A report from a newspaper in Australia said BHP (NYSE:BHP) may be interested in making a bid for Anadarko Petroleum Corp. (NYSE:APC).
Anadarko is 25 percent owner of the Macondo well with BP (NYSE:BP), which they're in the middle of permanently plugging.
The newspaper cited "a senior figure in the global energy industry," saying they are a possible target of BHP.
BHP has already made a bid for fertilizer giant Potash Corp. (NYSE:POT), as they look for deals to grow the company.
The oil company rose in response to the news to $50.36, gaining $1.57, or 3.22 percent, as of 1:56 PM EDT.
Anadarko spokesman John Christiansen had no comment on the story.
Anadarko is 25 percent owner of the Macondo well with BP (NYSE:BP), which they're in the middle of permanently plugging.
The newspaper cited "a senior figure in the global energy industry," saying they are a possible target of BHP.
BHP has already made a bid for fertilizer giant Potash Corp. (NYSE:POT), as they look for deals to grow the company.
The oil company rose in response to the news to $50.36, gaining $1.57, or 3.22 percent, as of 1:56 PM EDT.
Anadarko spokesman John Christiansen had no comment on the story.
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