Page 12 - NorthAmOil Week 30

NorthAmOil
NEWS IN BRIEF
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Ecopetrol and Occidental form strategic partnership to develop acreage in Midland Basin
Ecopetrol announced today that it formed
a joint venture with Occidental Petroleum Corporation to develop 97,000 net acres of Occidental’s Midland Basin properties in the Permian Basin.
e JV enables Ecopetrol to book ~160 MMboe of proved undeveloped reserves at transaction closing and provides access to one of the most proli c resource plays in
the world. e JV will progressively increase production until 2027, when production for Ecopetrol in the JV is estimated to reach circa 95 kboed.
In addition to its share of future production from the development acreage, Ecopetrol will second employees to the joint venture. is will enable Ecopetrol to advance its expertise in shale development and ensure technology and knowledge transfer from the Permian Basin to its assets in Colombia. e deal is fully aligned with Ecopetrol’s strategic priorities outlined in the 2019-2021 business plan, which focus on reserves and production growth, under a strict capital deployment discipline.
Ecopetrol will pay $750mn in cash plus $750mn of carried capital in exchange for
a 49-percent interest in the new venture. Occidental will own a 51-percent interest and operate the joint venture. During the carry period, Ecopetrol will pay 75% of Occidental’s share of capital expenditures.
e joint venture allows Occidental to accelerate its development plans in the Midland Basin. Occidental will retain
production and cash ow from its existing operations in the Midland Basin.
“We are excited to partner with one of
the largest operators in the Permian Basin, especially one we have worked successfully with for so many decades,” said Ecopetrol CEO President Felipe Bayon. “ is is a
key step to enhance our reserve base and production growth whilst we strengthen our capabilities in shale development and bring this technology to Colombia for the economic bene t of the country.”
e transaction is expected to close around year end.
ECOPETROL, July 31, 2019
ConocoPhillips reports
second-quarter 2019
results; delivered strong
freecashflowandfinancial
returns; raised 2019
planned share buybacks
ConocoPhillips today reported second- quarter 2019 earnings of $1.6bn, or $1.40
per share, compared with second-quarter 2018 earnings of $1.6bn, or $1.39 per share. Excluding special items, second-quarter 2019 adjusted earnings were $1.1bn, or $1.01 per share, compared with second-quarter 2018 adjusted earnings of $1.3bn, or $1.09 per share. Special items for the current quarter were primarily driven by a nancial tax bene t related to the previously announced UK disposition, settlement of certain tax disputes, and amounts recognized from the PDVSA International Chamber of Commerce (ICC) settlement.
CONOCOPHILLIPS, July 30, 2019
Anadarko announces 2019 second-quarter results
Anadarko Petroleum today announced 2019 second?quarter results, reporting a net loss attributable to common stockholders of $1.025bn, or $2.09 per share (diluted). ese results include certain items typically excluded by the investment community in published estimates.
In total, these items increased the net loss by $1.274bn, or $2.60 per share (diluted),
on an a er-tax basis, which includes the Chevron merger termination fee and other merger transaction costs of $1.042bn. Net cash provided by operating activities totalled $776mn for the quarter.
ANADARKO PETROLEUM, July 26, 2019
Whiting Petroleum
announcessecond-quarter
2019 financial and operating
results
Whiting Petroleum today announced its nancial and operating results for the second quarter of 2019.
Whiting’s production totalled 11.6 million barrels of oil equivalent (MMBOE), an average of 127,090 barrels of oil equivalent per day (boe/d). Crude oil and natural gas liquids (NGLs) comprised 65% and 17%, respectively, of total production.
Bradley J. Holly, Whiting’s chairman, president and CEO commented: “We remain committed to our strategy which prioritizes returns and free cash ow. In the face of highly volatile commodity prices and a constrained gas infrastructure market in North Dakota, we are taking strong measures to improve our margins and deliver on our goal of generating peer leading free cash ow. Our strategic plan is designed to deliver a better cost structure and more consistent results.”
Mr. Holly continued: “We also
remain committed to leading the way
in implementing new technologies to streamline our operations and further unlock the full potential of the expanding Bakken core in North Dakota. Our initial wells in our Foreman Butte property delivered strong production results, which demonstrates our technical acumen and ability to create value in areas previously considered outside the core.”
WHITING PETROLEUM, July 31, 2019
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Week 30 01•August•2019