BMO Capital announced it is initiating coverage on GeoResources (Nasdaq:GEOI) and REX Energy (Nasdaq:REXX), starting them both off with a "Market Perform" rating.
Rex Energy operates in the Illinois Basin and the Appalachian Basin as an independent oil and gas company.
GeoResources, Inc. is also an independent oil and gas company, operating primarily in Louisiana, Texas, North Dakota, Colorado, Oklahoma and Montana.
GeoResources closed Friday at $17.09, gaining $0.08, or 0.47 percent. Geo has a market cap of $337.07 million. Rex closed at $12.71, dropping $0.15, losing 1.17 percent. They have a market cap of about $560 million.
Showing posts with label Oil and Gas Companies. Show all posts
Showing posts with label Oil and Gas Companies. Show all posts
Monday, October 25, 2010
Monday, August 2, 2010
BP (NYSE:BP) Seeks Rights To New Mexico Assets
There are two oil and gas companies which are suing BP (NYSE:BP) and Apache Corporation. With Regards to the rights to purchase almost $400 million of assets in New Mexico.
There are two pending transactions being disputed. Both properties in question were announced June 20th. The first is BP's sale of assets to Apache for $7 billion. The second is Concho Resources Incorporated purchase of Marbob Energy Corporation for $1.66 billion.
There are certain operating agreements in place for the properties which Concho has valued at $400 million. BP told Marbob that they had full plans to exercise their rights to the land, which will be turned over to Apache. Under the operating agreement, BP is required to give Marbob a purchase right notification which the company has failed to do.
Marbob and Concho have filed a lawsuit in New Mexico state court. They are seeking a judgement requiring BP to file the correct paperwork. When BP was questioned, they declined comment. Bill Mintz Apache spokesman stated that he believes that BP has exercised a valid preferential right. "We expect Marbob to deliver the property," said Mintz.
There are two pending transactions being disputed. Both properties in question were announced June 20th. The first is BP's sale of assets to Apache for $7 billion. The second is Concho Resources Incorporated purchase of Marbob Energy Corporation for $1.66 billion.
There are certain operating agreements in place for the properties which Concho has valued at $400 million. BP told Marbob that they had full plans to exercise their rights to the land, which will be turned over to Apache. Under the operating agreement, BP is required to give Marbob a purchase right notification which the company has failed to do.
Marbob and Concho have filed a lawsuit in New Mexico state court. They are seeking a judgement requiring BP to file the correct paperwork. When BP was questioned, they declined comment. Bill Mintz Apache spokesman stated that he believes that BP has exercised a valid preferential right. "We expect Marbob to deliver the property," said Mintz.
Saturday, July 3, 2010
Judge Feldman Owned Exxon (NYSE:XOM) Stock: Groups Want Him Off The Moratorium Case
Environmental groups are asking U.S. District Judge Feldman to recuse himself citing financial conflicts, due to evidence showing he owned stock in Exxon Mobil (NYSE:XOM). Feldman has received much criticizing for his ruling putting a block on the six month moratorium issued by the president.
In the U.S. District Court filing against Feldman, the groups state that his investments in oil and gas companies prove his ruling to show prejudice. According to the Judges 2009 financial holdings, he held stock in Exxon Mobil during the days leading up to his ruling. After the public release of his financial records, Feldman said that he learned about his investments in Exxon Mobil on June 21st, the day prior to his ruling. He sold the stock the following morning.
Federal Judges, under the Federal law are not allowed to rule in cases where there could be a financial interest in the parties or the outcome. If there is an appearance of conflict they are prohibited from ruling on or being involved in those cases.
Some legal experts are saying that Feldman's decision to sell his stocks before making his ruling absolves him of any legal wrongdoing. "I doubt a recusal motion would survive under those circumstances," said Deborah Rhode, a law professor at Stanford Law School and director of the Stanford Center on the Legal Profession.
In the U.S. District Court filing against Feldman, the groups state that his investments in oil and gas companies prove his ruling to show prejudice. According to the Judges 2009 financial holdings, he held stock in Exxon Mobil during the days leading up to his ruling. After the public release of his financial records, Feldman said that he learned about his investments in Exxon Mobil on June 21st, the day prior to his ruling. He sold the stock the following morning.
Federal Judges, under the Federal law are not allowed to rule in cases where there could be a financial interest in the parties or the outcome. If there is an appearance of conflict they are prohibited from ruling on or being involved in those cases.
Some legal experts are saying that Feldman's decision to sell his stocks before making his ruling absolves him of any legal wrongdoing. "I doubt a recusal motion would survive under those circumstances," said Deborah Rhode, a law professor at Stanford Law School and director of the Stanford Center on the Legal Profession.
Monday, June 28, 2010
Oil Company Executives Leave Meeting With Salazar Disappointed: BP (NYSE:BP), Exxon (NYSE:XOM), Transocean (NYSE:RIG), Chevron (NYSE:CVX),
Executives from several oil and gas companies including BP (NYSE:BP), Exxon Mobil (NYSE:XOM), Transocean (NYSE:RIG), Chevron (NYSE:CVX), Noble Energy, Hercules Offshore Inc., Rowan Cos. Inc. (NYSE:RDC), Diamond Offshore Drilling, and Seahawk Drilling, attended an hour long meeting with Ken Salazar, U.S. Interior Secretary today. Also present were the heads of the trade groups for the industry.
The purpose of this meeting was to lift the moratorium imposed by President Obama. Everybody left disappointed as Salazar refused to make any promises that the government would lift the Deep water drilling ban. Kendra Barkoff, Interior spokeswoman confirmed the meeting took place but refused to comment on the contents of the meeting itself.
"Numerous operators told Secretary Salazar that they were in the final stages of moving rigs, deepwater rigs out of the Gulf of Mexico and to West Africa or the Middle East. We were frankly disappointed at the lack of serious attention that was paid by the department of the Interior on the horrible economic impact that the Department of Interior's policies are having on the industry and on communities along the Gulf Coast, " said a source close to the matter.
In letters to the executives of these oil and gas companies, House Democrats questioned if their oil response plans "were adequate to protect the Gulf region from the consequences of a sub sea blowout similar to the blowout" that BP experienced at the Macondo well.
The purpose of this meeting was to lift the moratorium imposed by President Obama. Everybody left disappointed as Salazar refused to make any promises that the government would lift the Deep water drilling ban. Kendra Barkoff, Interior spokeswoman confirmed the meeting took place but refused to comment on the contents of the meeting itself.
"Numerous operators told Secretary Salazar that they were in the final stages of moving rigs, deepwater rigs out of the Gulf of Mexico and to West Africa or the Middle East. We were frankly disappointed at the lack of serious attention that was paid by the department of the Interior on the horrible economic impact that the Department of Interior's policies are having on the industry and on communities along the Gulf Coast, " said a source close to the matter.
In letters to the executives of these oil and gas companies, House Democrats questioned if their oil response plans "were adequate to protect the Gulf region from the consequences of a sub sea blowout similar to the blowout" that BP experienced at the Macondo well.
Saturday, June 26, 2010
Oil Investments, Selling of Bonds, and Bond Debt: BP (NYSE:BP) and Shell (LSE:RDSA)
Oil and gas companies worldwide have borrowed a total of $83.3 billion already this year, due to BP's (NYSE:BP) oil spill disaster. This is a 41 percent increase from this time last year. The bulk of it, $53.3 billion has come in the second quarter. Traders and analysts are saying that oil companies are increasing their borrowing. This is in order to lock down funding to prevent further turmoil in the credit market and the industry as a whole.
Energy companies are also feeling the effects and worldwide have sold a total of $29.1 billion in bonds since April 20th when BP's leased rig blew up. On Monday, Royal Dutch Shell sold a total of $2.75 billion in bonds. Shell had no comment as to why or on the timing of their sale.
Andrew Karp, head of investment grade bond syndicate at the Bank of America Merrill Lynch, said that there was a high demand for the debt sales. According to Standard & Poors 500 the oil and gas sector credit spread has increased from 2.43 percent on April 28th to on Thursday reaching 3,35 percentage points.
This normally would put off borrowers until costs came down. Oil companies are borrowing while they can. Justin D'Ercole, head of America's Investment grade syndicate at the Barclays Capital said, "in late July if there's noise that the relief wells aren't working, the energy space could be a lot wider and oil companies will likely try to get ahead of that."
Energy companies are also feeling the effects and worldwide have sold a total of $29.1 billion in bonds since April 20th when BP's leased rig blew up. On Monday, Royal Dutch Shell sold a total of $2.75 billion in bonds. Shell had no comment as to why or on the timing of their sale.
Andrew Karp, head of investment grade bond syndicate at the Bank of America Merrill Lynch, said that there was a high demand for the debt sales. According to Standard & Poors 500 the oil and gas sector credit spread has increased from 2.43 percent on April 28th to on Thursday reaching 3,35 percentage points.
This normally would put off borrowers until costs came down. Oil companies are borrowing while they can. Justin D'Ercole, head of America's Investment grade syndicate at the Barclays Capital said, "in late July if there's noise that the relief wells aren't working, the energy space could be a lot wider and oil companies will likely try to get ahead of that."
Monday, May 24, 2010
Transocean: (NYSE:RIG) Cement Work Cause Of Blowout
While many are pointing the finger at BP (NYSE:BP) others are investigating what is showing a common thread with improperly oil well cementing jobs. Sealing offshore oil wells has failed numerous times in the past according to the American Press Association.
Another example of poor regulations is federal regulators giving drillers a free hand in crucial safety steps. These federal regulators leave the decision of what type of cement is used up to the oil and gas companies. There are simple guidelines from the American Petroleum Institute that drillers are encouraged to follow.
Yet, state and federal standards and controls are comparably much more strict on cement projects such as bridges, roads, and buildings. Transocean feels that the cement work is one of the main causes for of the blowout.
An AP review of the federal accident and incident reports on offshore wells shows that there have been at least 34 times the cementing process has been implicated since 1978. Many of the reports simply state the cause as "poor cement job."
Another example of poor regulations is federal regulators giving drillers a free hand in crucial safety steps. These federal regulators leave the decision of what type of cement is used up to the oil and gas companies. There are simple guidelines from the American Petroleum Institute that drillers are encouraged to follow.
Yet, state and federal standards and controls are comparably much more strict on cement projects such as bridges, roads, and buildings. Transocean feels that the cement work is one of the main causes for of the blowout.
An AP review of the federal accident and incident reports on offshore wells shows that there have been at least 34 times the cementing process has been implicated since 1978. Many of the reports simply state the cause as "poor cement job."
Tuesday, February 10, 2009
Oil Investment | 2009 and Beyond
The oil and gas industry continues to struggle as overall demand continues to decline. That has of course, as far as oil demand goes, created the current contango or super contango situation which has resulted in a great chance to make safe money through oil investment.
Even though oil and gas companies will have some short term difficulty and challenges, as the economic circumstances continue to gradually improve, people will start driving, flying and traveling again, and we'll see oil demand and oil prices start to increase again.
Oil news has been somewhat grim, but again, crude oil isn't going to drop in need or use anytime soon, and even though mainstream media outlets love to make big oil companies look like villains, they will continue to be profitable far into the future because of the demand for it will not stop any time soon.
Many people that in reality oppose the use of oil for a variety of stupid reasons, like to try to make the argument that we've reached the point where oil has peaked, or peak oil, so that we much waste billions of dollars in order to save humanity as fuel resources dry up. This is nothing else but a lie, and the use of fear as a tool to take taxpayers dollars and waste them on things like ethanol, which has turned into a disastrous debacle and the source of an endless number of engine breakdowns, especially among small engines. Creating an atmosphere of torment and fear has ended with idiotic waste of time and money, when in reality there are billions of barrels of oil on U.S. land and off it's shorelines. Only the hateful environmentalists and their private agendas generate the type of publicity that makes this typeo of scenario possible, as the thought of drilling into their mother earth is atrocious to these earth worshippers, as they are offended by humans existing, but god help you if you drill into their "mother."
That's my little rant. Now the reality. Just in the rock shale of the United States alone, it is estimated there is far more available proven oil reserves than exists in Saudi Arabia. This is trying to be covered up so Americans don't call the government and radical environmentalists to account for their crimes against humanity by not only lying, but covering up the fact that there is that much oil available for use. This doesn't even take into account the oil off our shorelines or in Alaska. Go beyond that and we have the new methods that can see hidden oil underneath the salt of the oceans, and where Brazil's Petrobras has uncovered billions more in oil fields beneath the ocean floor, and they're just getting started. Add the huge amount in the Canadian oil sands and you get the idea. The idea of peak oil is a joke at this time, and will be for many decades into the future. Those opposing oil and gas companies have been hiding the fact of how much oil is available so they can create a panic in order to get access for their pet projects in relationship to alternative energy. A growing number of those in the energy business are doing the same as tax credits and other incentives "blind" their eyes to the huge source of existing energy we still have.
So the oil and gas industry along with the oil and gas companies are in reality in a strong position in the long term, as oil and gas will flow through the pipelines for decades and decades into the future, which will not only provide many oil and gas jobs, but keep things running while we lose the emotional baggage and slowly look at realistic and legitimate sources of alternative energy going forward. There's absolutely no lack of oil and gas we can drill for and produce at this time, and there is no need to create the false sense of urgency the media has been doing through its going to bed with environmentalists.
Oil exploration needs to continually be encouraged, as well as removing barriers to oil well drilling. Oil development will continue to be a huge business in the world, and the resources out there are still staggering, as far as the amount of oil and gas still out there to be extracted from the earth and underneath the oceans.
Where does all of this leave oil and gas as an investment? It will be a very strong and profitable place to put our money, both over the short and long term.
Once the global recession starts to wind down, demand for oil will increase and go beyond normal levels, and we'll see a huge increase in use and prices. Those investing in the oil industry and oil companies will profit tremendously, as it's discovered that oil resources aren't diminishing at all, but are available in huge quantities. As oil engineers solve some of the cost problems related to extracting oil of shale, along with doing it more efficiently, we'll see this story unfold in the years ahead, as the media, politicians and radical environmentals won't be able to hide it.
Short term we already have the existing contango or super contango condition that allows a safe and guaranteed source of profit via taking arbitrage positions, and as that winds down, we should see oil prices start to gradually rise again. It's only a matter of when the economy turns around; that's what we need to be looking at and measuring our decisions of when to invest in oil by.
So whether it's oil drilling companies, natural gas companies, or oil and gas companies within the oil and gas industry, the future is bright for all aspects of the energy sector. Those investing in oil or gas in the short and long term will find themselves very happy with the profits they take away from it.
Even though oil and gas companies will have some short term difficulty and challenges, as the economic circumstances continue to gradually improve, people will start driving, flying and traveling again, and we'll see oil demand and oil prices start to increase again.
Oil news has been somewhat grim, but again, crude oil isn't going to drop in need or use anytime soon, and even though mainstream media outlets love to make big oil companies look like villains, they will continue to be profitable far into the future because of the demand for it will not stop any time soon.
Many people that in reality oppose the use of oil for a variety of stupid reasons, like to try to make the argument that we've reached the point where oil has peaked, or peak oil, so that we much waste billions of dollars in order to save humanity as fuel resources dry up. This is nothing else but a lie, and the use of fear as a tool to take taxpayers dollars and waste them on things like ethanol, which has turned into a disastrous debacle and the source of an endless number of engine breakdowns, especially among small engines. Creating an atmosphere of torment and fear has ended with idiotic waste of time and money, when in reality there are billions of barrels of oil on U.S. land and off it's shorelines. Only the hateful environmentalists and their private agendas generate the type of publicity that makes this typeo of scenario possible, as the thought of drilling into their mother earth is atrocious to these earth worshippers, as they are offended by humans existing, but god help you if you drill into their "mother."
That's my little rant. Now the reality. Just in the rock shale of the United States alone, it is estimated there is far more available proven oil reserves than exists in Saudi Arabia. This is trying to be covered up so Americans don't call the government and radical environmentalists to account for their crimes against humanity by not only lying, but covering up the fact that there is that much oil available for use. This doesn't even take into account the oil off our shorelines or in Alaska. Go beyond that and we have the new methods that can see hidden oil underneath the salt of the oceans, and where Brazil's Petrobras has uncovered billions more in oil fields beneath the ocean floor, and they're just getting started. Add the huge amount in the Canadian oil sands and you get the idea. The idea of peak oil is a joke at this time, and will be for many decades into the future. Those opposing oil and gas companies have been hiding the fact of how much oil is available so they can create a panic in order to get access for their pet projects in relationship to alternative energy. A growing number of those in the energy business are doing the same as tax credits and other incentives "blind" their eyes to the huge source of existing energy we still have.
So the oil and gas industry along with the oil and gas companies are in reality in a strong position in the long term, as oil and gas will flow through the pipelines for decades and decades into the future, which will not only provide many oil and gas jobs, but keep things running while we lose the emotional baggage and slowly look at realistic and legitimate sources of alternative energy going forward. There's absolutely no lack of oil and gas we can drill for and produce at this time, and there is no need to create the false sense of urgency the media has been doing through its going to bed with environmentalists.
Oil exploration needs to continually be encouraged, as well as removing barriers to oil well drilling. Oil development will continue to be a huge business in the world, and the resources out there are still staggering, as far as the amount of oil and gas still out there to be extracted from the earth and underneath the oceans.
Where does all of this leave oil and gas as an investment? It will be a very strong and profitable place to put our money, both over the short and long term.
Once the global recession starts to wind down, demand for oil will increase and go beyond normal levels, and we'll see a huge increase in use and prices. Those investing in the oil industry and oil companies will profit tremendously, as it's discovered that oil resources aren't diminishing at all, but are available in huge quantities. As oil engineers solve some of the cost problems related to extracting oil of shale, along with doing it more efficiently, we'll see this story unfold in the years ahead, as the media, politicians and radical environmentals won't be able to hide it.
Short term we already have the existing contango or super contango condition that allows a safe and guaranteed source of profit via taking arbitrage positions, and as that winds down, we should see oil prices start to gradually rise again. It's only a matter of when the economy turns around; that's what we need to be looking at and measuring our decisions of when to invest in oil by.
So whether it's oil drilling companies, natural gas companies, or oil and gas companies within the oil and gas industry, the future is bright for all aspects of the energy sector. Those investing in oil or gas in the short and long term will find themselves very happy with the profits they take away from it.
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