Page 11 - NorthAmOil Week 07

NorthAmOil PERFORMANCE NorthAmOil
Concho attributed the projected increase to e - ciency gains that it has made.
However, the company anticipates its pro- duction for the rst quarter of 2020 to be lower sequentially, at a targeted 316,000-325,000 boepd, with oil accounting for 202,000-208,000 bpd. Nonetheless, the company expects its oil volumes to grow 10-12% over the course of the whole year.
Like Diamondback, Concho announced that it would hike its dividend. e dividend will be increased by 60% to $0.20 per share, from $0.125 previously.
Devon
Devon – which operates across several other shale regions in addition to the Permian’s Del- aware sub-basin – reported gures that illus- trated similar trends to its Permian-focused counterparts.
The net loss attributable to the company came in at $642mn in the fourth quarter, com- pared with a profit of $1.15bn a year earlier. Devon attributed the loss to a $748mn non-cash impairment charge related to the sale of its Bar- nett shale assets. On an adjusted basis, the pro- ducer achieved earnings of $130mn, or $0.33 per share, marginally beating analysts’ expectations of $0.32 per share, according to IBES estimates from Re nitiv, cited by Reuters.
Devon’s output rose to 343,000 boepd from 306,000 boepd a year ago, with oil production accounting for 160,000 bpd, up 28% y/y.
e company said it was raising its outlook for 2020 oil production growth to 7.5-9.0% on 2019, with this attributed primarily to Devon’s
“exceptionally strong” well performance in the Delaware Basin. However, the company added that it anticipated delivering this growth with less capital than previously anticipated. Devon is lowering the top end of its upstream capital guidance for this year by $50mn to $1.70-1.85bn, and added that it would reallocate some capital from the Sooner Trend, Anadarko Basin, Cana- dian and King sher Counties (STACK) play in Oklahoma to the Delaware. As a result, the rm expects its Delaware Basin capex to rise 15% y/y this year, to account for roughly 60% of its total investment.
Devon also joined Concho and Diamond- back in increasing its dividend, saying it would be raised 22% to $0.11 per share.™
Devon’s operations
POLICY
The government of Canada
supports a global ban on
heavy fuel oil in the Arctic
e government of Canada takes the protection of the Arctic very seriously, and continues to work with member states at the International Maritime Organization (IMO) to nd ways to reduce the environmental impacts of increased marine shipping in
the north. Balancing environmental needs and economic impacts are a priority for the government of Canada.
Today, the Minister of Transport, the Honourable Marc Garneau, and the Minister of Foreign A airs, the Honourable François- Philippe Champagne, announced the Government of Canada’s support for a ban on heavy fuel oil in Arctic waters. Ministers also
NEWS IN BRIEF
announced they will be seeking a phased-in approach to the ban as Canada discusses with IMO countries ways to help balance the environmental bene ts with the economic realities of northern, Indigenous and Inuit communities.
Transport Canada has conducted a domestic impact assessment of the proposed heavy fuel oil ban in the Arctic, based on
the methodology agreed upon at an IMO committee meeting in February 2019. e impact assessment is available on the ‘Let’s talk marine fuel in the Arctic’ webpage. Visitors to this website are invited to have their say on how Canada can best reduce the environmental, economic and social risks associated with the use of heavy fuel oil in the Arctic.
Transport Canada held, and continues
to hold, consultations with Indigenous and Inuit communities, industry, environmental non-governmental organizations, provincial/ territorial governments and other federal
government departments about the use of heavy fuel oil in the Arctic.
TRANSPORT CANADA, February 18, 2020
UPSTREAM
All wells producing at Wizard Lake oilfield
Whitebark Energy is pleased to announce the three wells at the Wizard Lake oil eld
(in Alberta) are presently producing to the eld facilities at a gross, combined rate of ~1,800boepd (1,220 bpd plus 3.5 mmcfd). Since the update in the Quarterly Report
on January 31st, eld operations have
been focussed on maintaining steady but increasing rates from Rex-1 and 2 while work was carried out on identifying appropriate emulsion breaker chemicals for the oil from Rex-3. ese tasks have been completed
Week 07 19•February•2020
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