Page 14 - NorthAmOil Week 11

NorthAmOil
NEWS IN BRIEF
NorthAmOil
The proposed purchase of the Pioneer Pipeline is subject to execution of definitive agreements, which is expected to occur in the second quarter of 2020. The acquisition and operation of Pioneer Pipeline by NGTL also requires approval of the Canadian Energy Regulator.
TC ENERGY, March 12, 2020
EnLink Midstream announces 30%
reduction to 2020 capital expenditures and prioritises financial flexibility
EnLink Midstream today announced that,
in response to recent commodity price and market volatility, it has reduced its 2020 total capital expenditures, net to EnLink guidance by approximately 30%. EnLink is reducing capital expenditures related to well connection and associated gathering infrastructure and
is deferring several growth projects across
its platform. This immediate reduction in 2020 capital expenditures, net to EnLink
was primarily driven by several of EnLink’s key customers decreasing drilling and completions activity in response to the current oil price environment.
EnLink’s revised 2020 total capital expenditures guidance, net to EnLink, which includes both growth and maintenance
capital expenditures, is $225mn to $285mn, compared to the previously announced
range of $315mn to $425mn. This reflects a reduction of approximately $115mn at the midpoint and is approximately 60% lower than actual 2019 total capital expenditures, net to EnLink. EnLink maintains its previously announced plan to fully self-fund all capital expenditures during 2020 with internally generated cash flows, and has no plans to access the capital markets during 2020.
The revised capital expenditures guidance allows EnLink to continue its capital investment program to serve customers who it believes will continue to be active in this environment, including XTO Energy (an ExxonMobil subsidiary) and Venture Global LNG. EnLink maintains flexibility to further adjust its capital expenditures as customers adjust their plans and market conditions change.
EnLink continues to work closely with customers to evaluate near-term and long- term impacts to EnLink’s business and is prepared to make further adjustments to its capital program, as necessary. In parallel, EnLink is undertaking an in-depth review
of all aspects of its cost structure and uses of cash flow given the reduced commodity price and producer activity environment, including the effect of these factors on other elements of EnLink’s 2020 guidance.
ENLINK MIDSTREAM, March 17, 2020
SERVICES
Weatherford announces
fourth quarter and full year
2019 results
Weatherford International announced today its results for the fourth quarter and full year 2019.
Weatherford emerged from Chapter
11 bankruptcy protection pursuant to a prepackaged plan of reorganisation on December 13, 2019 and eliminated $6.2bn
of debt as part of its financial restructuring. Upon emergence, Weatherford adopted fresh- start accounting which results in Weatherford becoming a new entity for accounting and financial reporting purposes. As required by GAAP, results for the year must be presented separately as the predecessor period from January 1, 2019 through December 13, 2019 and the successor period from December
14, 2019 through December 31, 2019. The results from these predecessor and successor periods are not comparable. Nevertheless,
the company has combined the results of the predecessor and successor periods as a non- GAAP measure to compare to prior periods for discussion purposes herein, as we believe it provides the most meaningful basis to analyse our results.
On a GAAP basis, total revenues and net loss in the Successor period from December 14, 2019 to December 31, 2019 were $261mn and $26mn, respectively. Total revenues
and net income in the Predecessor period from January 1, 2019 to December 13, 2019 were $5.0bn and $3.7bn, respectively. Total revenues and net income in the Predecessor period from October 1, 2019 to December 13, 2019 were $985mn and $5.3bn, respectively.
The Predecessor period includes a net reorganization gain of $5.4bn from January 1, 2019 to December 13, 2019.
WEATHERFORD INTERNATIONAL, March 16, 2020
Peak Land Services – assisting companies in filing liens and bankruptcy due diligence
Peak Land Services has broadened its services to include providing the research necessary in order to file liens against mineral properties and assisting in bankruptcy due diligence. Within the last few months, Peak Land Services has assisted companies with the process of filing liens against assets owned by an oil and gas company which was not paying their vendors in the Permian Basin.
Peak Land Services Co-Founder, Cole Frederick, stated, “It’s no longer surprising
to find myself working in a new aspect of the land business. Working on exotic projects differing from typical land work (leasing,
title, due diligence, etc.) can be a result of the particular state of the industry. As all landmen quickly learn, you go where the work is. Right now, companies are inquiring about our services in assisting them in filing liens on mineral property. I guess it’s just a sign of the times.”
In a recent article published by Peak
Land Services, LLC, and Wayne Taylor of Dorsett Johnson & Swift, LLP, titled “A Sign of the Times – Filing Liens Against Mineral Property,” these companies outlined the basic steps of what is involved in filing liens in the mineral property space.
Peak Land Services Co-Founder, Mitchell Eberenz, stated “I wouldn’t be surprised if we continue to get calls about this new service offering. With oil prices hovering in the low $30’s, money is going to get tight. Companies may start to lean on their service providers to preserve cashflow, and service providers will be left wondering when they will get paid. If you are in the oil and gas space, understanding what your rights are to ensure you get paid is critical to keep the doors open long enough to weather this downturn, and stay ready for the next boom.”
PEAK LAND SERVICES,
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Week 11 19•March•2020