LyondellBasell (LYB) has had an awesome year, and it looks like that performance will continue on, with one of the major drivers being its extraordinarily profitable ethane.
Ethane is a "wet" byproduct of shale gas, aka natural gas liquids (NGLS), along with butane and propane. All three are profitable, but ethane probably has the best potential going forward.
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Showing posts with label Shale Gas. Show all posts
Showing posts with label Shale Gas. Show all posts
Saturday, June 1, 2013
Friday, July 9, 2010
Exxon (NYSE:XOM) Buying Back $3 Billion Shares
In a nod toward shareholders, Exxon Mobil Corp. (NYSE:XOM) said they're going to buy back $3 billion of its shares in the quarter to shrink the effects it had of diluting shares from their acquisition of XTO Energy.
The giant energy company also said they'll refinance or pay back all the assumed debt from the deal as well.
Outstanding shares in the company rose by 416 million, or about 9 percent from the $25 billion acquisition, said vice president for investor relations, David Rosenthal, on a conference call.
The amount of assumed debt needed to be refinanced or paid off is $11 billion.
This is a natural gas play from a long-term perspective, where Exxon Mobil received with XTO, at minimum, 45 trillion cubic feet of recoverable gas. And just as important, the immediate expertise of those in the company who specialized in the sector.
The giant energy company also said they'll refinance or pay back all the assumed debt from the deal as well.
Outstanding shares in the company rose by 416 million, or about 9 percent from the $25 billion acquisition, said vice president for investor relations, David Rosenthal, on a conference call.
The amount of assumed debt needed to be refinanced or paid off is $11 billion.
This is a natural gas play from a long-term perspective, where Exxon Mobil received with XTO, at minimum, 45 trillion cubic feet of recoverable gas. And just as important, the immediate expertise of those in the company who specialized in the sector.
Monday, May 10, 2010
MAG Silver (TSE:MAG), Platinum Group Metals (TSE:PTM) Founder Likes Natural Gas
The founder of precious metal mining companies like MAG Silver (TSE:MAG), Platinum Group Metals (TSE:PTM), R. Michael Jones, likes what he sees in the natural gas sector, and is pursuing it with his latest startup, Nextraction Energy Corp. (TSE-V:NE).
Nextraction Energy targets gas development in the U.S., primarily shale gas which has been so abundantly discovered, and over the long-term will change the energy picture around the world, and bring the focus back on the U.S., which used to be the largest oil producer in the world.
Jones especially likes the emerging markets possibilities, where natural gas will serve them as an efficient energy supplement or replacement for oil, which will cost much less.
While in the short term natural gas is expected to remain depressed in price, over the long term it could rise some and stabilize, offering a predictable stream of income for companies positioned to take advantage of it.
But this is definitely a long-term play, as natural gas companies gravitate toward oil for profits in the low-margin, existing natural gas market.
Nextraction Energy targets gas development in the U.S., primarily shale gas which has been so abundantly discovered, and over the long-term will change the energy picture around the world, and bring the focus back on the U.S., which used to be the largest oil producer in the world.
Jones especially likes the emerging markets possibilities, where natural gas will serve them as an efficient energy supplement or replacement for oil, which will cost much less.
While in the short term natural gas is expected to remain depressed in price, over the long term it could rise some and stabilize, offering a predictable stream of income for companies positioned to take advantage of it.
But this is definitely a long-term play, as natural gas companies gravitate toward oil for profits in the low-margin, existing natural gas market.
Wednesday, March 24, 2010
Exco Resources (NYSE:XCO) Marcellus Shale Joint Venture
Exco Resources Marcellus Shale
According to CEO Douglas Miller, within a couple of weeks Exco Resources Inc. (NYSE:XCO) could announce a joint venture in the Marcellus shale.
Increased drilling in the region by companies like Chesapeake Energy Corp. (NYSE:CHK), Encana Corp. (NYSE:ECA) and Petrohawk Energy Corp. (NYSE:HK) has raised costs, making it more profitable to attract a partner than bear the cost themselves.
Miller didn't release any potential partners in the Marcellus shale play, although he's looking at a number of options before making a final decision.
Exco Resources Marcellus Shale
According to CEO Douglas Miller, within a couple of weeks Exco Resources Inc. (NYSE:XCO) could announce a joint venture in the Marcellus shale.
Increased drilling in the region by companies like Chesapeake Energy Corp. (NYSE:CHK), Encana Corp. (NYSE:ECA) and Petrohawk Energy Corp. (NYSE:HK) has raised costs, making it more profitable to attract a partner than bear the cost themselves.
Miller didn't release any potential partners in the Marcellus shale play, although he's looking at a number of options before making a final decision.
Exco Resources Marcellus Shale
Thursday, March 18, 2010
Exxon Mobil (NYSE:XOM), Marathon Oil (NYSE:MRO) and Shale Gas in Europe
Shale Gas in Europe
Exxon Mobil (NYSE:XOM), Marathon Oil (NYSE: MRO) and Royal Dutch Shell (NYSE: RDS-A) are spreading throughout the European landscape in search of shale gas which could be the future of European energy needs, or at least a large part of it.
Shale gas has become huge in America, and energy companies are just starting to search Europe for natural gas found in the shale.
To show the potential in Europe, shale gas reserves, or unconventional gas reserves are estimated to stand at about 1,200 trillion cubic feet, about five times the proven reserves in Europe at this time.
Although this is an important bit of information to know for long-term investors in these companies, it will probably take somewhere near a decade to bring the natural gas to the market and generate revenue for the companies and region.
One small detail does remain, and that is the geology still must be proven before this can be a for sure thing. But if results are anywhere near that in America, it should be a great boon.
Shale Gas in Europe
Exxon Mobil (NYSE:XOM), Marathon Oil (NYSE: MRO) and Royal Dutch Shell (NYSE: RDS-A) are spreading throughout the European landscape in search of shale gas which could be the future of European energy needs, or at least a large part of it.
Shale gas has become huge in America, and energy companies are just starting to search Europe for natural gas found in the shale.
To show the potential in Europe, shale gas reserves, or unconventional gas reserves are estimated to stand at about 1,200 trillion cubic feet, about five times the proven reserves in Europe at this time.
Although this is an important bit of information to know for long-term investors in these companies, it will probably take somewhere near a decade to bring the natural gas to the market and generate revenue for the companies and region.
One small detail does remain, and that is the geology still must be proven before this can be a for sure thing. But if results are anywhere near that in America, it should be a great boon.
Shale Gas in Europe
Wednesday, March 17, 2010
Exxon Mobil (NYSE:XOM) and XTO Energy (NYSE:XTO)
Exxon Mobil Waiting Period over for XTO Energy
A required regulatory hurdle entailing a waiting period for Exxon Mobil (NYSE:XOM) to take over XTO Energy (NYSE:XTO) has been met, and the fact that there were no objections or actions taken by the Federal Trade Commission or the Justice Department implies an open door and that Exxon and XTO can go forward with the deal. The waiting period officially ended on Monday.
Terms of the deal are straightforward, with Exxon acquiring XTO in an all-stock deal for the company. One other key requirement will be for the shareholders to approve the deal, which doesn't seem to be a problem at this time. Exxon will also take over about $10 billion in debt XTO holds. The deal is expected to close on June 30 according to CEO Rex Tillerson.
According to XTO, they are sitting on 45 trillion cubic feet of gas which is trapped in tight shale formations, which formerly was cost-prohibitive to extract. New technology exists where it can be done on a much less expensive basis.
Exxon believes natural gas will be an important generator of electricity in the years ahead.
A required regulatory hurdle entailing a waiting period for Exxon Mobil (NYSE:XOM) to take over XTO Energy (NYSE:XTO) has been met, and the fact that there were no objections or actions taken by the Federal Trade Commission or the Justice Department implies an open door and that Exxon and XTO can go forward with the deal. The waiting period officially ended on Monday.
Terms of the deal are straightforward, with Exxon acquiring XTO in an all-stock deal for the company. One other key requirement will be for the shareholders to approve the deal, which doesn't seem to be a problem at this time. Exxon will also take over about $10 billion in debt XTO holds. The deal is expected to close on June 30 according to CEO Rex Tillerson.
According to XTO, they are sitting on 45 trillion cubic feet of gas which is trapped in tight shale formations, which formerly was cost-prohibitive to extract. New technology exists where it can be done on a much less expensive basis.
Exxon believes natural gas will be an important generator of electricity in the years ahead.
Wednesday, March 10, 2010
Marathon Oil (NYSE:MRO) Drilling 25 New Wells
Marathon Oil Drilling 25 New Oil Wells
Oil wells in the Oregon Basin have been producing oil for close to 100 years, and even though Marathon Oil (NYSE:MRO) hasn't been drilling there for a couple of years, they're poised to start again with a goal of drilling another 25 new wells in the region.
Along with the search for new oil, Marathon will also be employing new techniques to extract known oil resources for existing wells, possibly through the use of carbon dioxide or steam to push the oil to the surface; although that is more costly and will depend on market prices at the time whether it's feasible or not.
Crude in the Oregon Basin is called asphaltic crude, and is used in highway construction. Increased demand and prices make it worth the effort to start drilling for it again.
In general, this type of crude is close to 30 percent in value than light sweet crude, but that has narrowed recently, again, making it economically feasible to puruse by Marathon Oil and other energy companies.
Marathon Oil Drilling 25 New Oil Wells
Oil wells in the Oregon Basin have been producing oil for close to 100 years, and even though Marathon Oil (NYSE:MRO) hasn't been drilling there for a couple of years, they're poised to start again with a goal of drilling another 25 new wells in the region.
Along with the search for new oil, Marathon will also be employing new techniques to extract known oil resources for existing wells, possibly through the use of carbon dioxide or steam to push the oil to the surface; although that is more costly and will depend on market prices at the time whether it's feasible or not.
Crude in the Oregon Basin is called asphaltic crude, and is used in highway construction. Increased demand and prices make it worth the effort to start drilling for it again.
In general, this type of crude is close to 30 percent in value than light sweet crude, but that has narrowed recently, again, making it economically feasible to puruse by Marathon Oil and other energy companies.
Marathon Oil Drilling 25 New Oil Wells
Exxon Mobil (NYSE:XOM) Chasing Shale Fields
Exxon Mobil and Shale
Slow to get into the enormous potential represented by shale fields, Exxon Mobil has now smelled the roses and is sprinting to catch up with some of its rivals who have been quietly working to cut costs to extract oil and gas from teh shale.
This is why Exxon recently bid $31 billion to acquire XTO Energy (NYSE:XTO) to get back ahead of the curve. XTO is the leading company which extracts energy from what is called "unconventional" sources.
With most large discoveries behind oil and gas companies (possibly other than those under the ocean floor), large energy companies are looking for new sources of gas and oil, with shale being the next wave of source for the industry.
Exxon Mobil and Shale
Slow to get into the enormous potential represented by shale fields, Exxon Mobil has now smelled the roses and is sprinting to catch up with some of its rivals who have been quietly working to cut costs to extract oil and gas from teh shale.
This is why Exxon recently bid $31 billion to acquire XTO Energy (NYSE:XTO) to get back ahead of the curve. XTO is the leading company which extracts energy from what is called "unconventional" sources.
With most large discoveries behind oil and gas companies (possibly other than those under the ocean floor), large energy companies are looking for new sources of gas and oil, with shale being the next wave of source for the industry.
Exxon Mobil and Shale
Monday, March 8, 2010
ExxonMobil (NYSE:XOM) Shale Gas Deposits in Europe
ExxonMobil Shale Gas in Europe
After largely missing out on the huge amount of shale gas available in the U.S., large energy companies like ExxonMobil (NYSE:XOM) are now looking to the European continent as the place they can access large shale gas deposits.
If the amound of shale gas in the U.S. is any indicator, there could be an extraordinary amount in Europe as well, as the technology is now available to tap into it.
For ExxonMobil, their huge move into the shale gas sector was via its acquisition of XTO, which specializes in the field.
Even with the drop in the price of gas, over the long term the shale gas play should result in solid revenue and profits for those willing to invest with a long term horizon in mind.
The major challenge for those looking to Europe for shale gas is the industry infrastructure will need to be build up in order to process the gas, as there are only about 50 onshore gas-drilling rigs in Europe in contrast to the approximate 2,000 operating in the U.S.
ExxonMobil Shale Gas in Europe
After largely missing out on the huge amount of shale gas available in the U.S., large energy companies like ExxonMobil (NYSE:XOM) are now looking to the European continent as the place they can access large shale gas deposits.
If the amound of shale gas in the U.S. is any indicator, there could be an extraordinary amount in Europe as well, as the technology is now available to tap into it.
For ExxonMobil, their huge move into the shale gas sector was via its acquisition of XTO, which specializes in the field.
Even with the drop in the price of gas, over the long term the shale gas play should result in solid revenue and profits for those willing to invest with a long term horizon in mind.
The major challenge for those looking to Europe for shale gas is the industry infrastructure will need to be build up in order to process the gas, as there are only about 50 onshore gas-drilling rigs in Europe in contrast to the approximate 2,000 operating in the U.S.
ExxonMobil Shale Gas in Europe
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