Page 12 - NorthAmOil Week 50

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NEWS IN BRIEF
NorthAmOil
progress of the acquisition strategy we laid out when I was named interim CEO. I am confident that Panhandle is well positioned to grow and generate incremental value
for our shareholders as a participant in the consolidation of the mineral sector.” PANHANDLE OIL AND GAS, December 12, 2019
SandRidge Energy
announces a series of
initiatives to improve
shareholder value
SandRidge Energy today announced it has initiated a series of actions designed to improve shareholder value.
The company will be focusing on actions to maximise value to shareholders, which will include evaluation of the 2020 capital expenditure program in light of market conditions with a focus on maximising free cash flow. Management and the board of directors will undertake a comprehensive review of the company with the aim to improve operational efficiencies and cost controls.
Jonathan Frates, chairman of the board, stated: “In light of the current challenging price environment, we are re-evaluating our 2020 capital plans with an emphasis on cost control and free cash flow generation. Our goal is to maintain our strong balance sheet and pursue only high return opportunities.”
In connection with this initiative, Paul
D. McKinney has resigned as president and chief executive officer and as a board member and John P. Suter, who currently serves as
the company’s chief operating officer, has
agreed to serve as interim president and chief executive officer.
SANDRIDGE ENERGY, December 13, 2019
MIDSTREAM
ONEOK announces
completion of the Elk Creek
pipeline
ONEOK today announced the completion
of its Elk Creek pipeline. Natural gas liquids (NGL) volume is now flowing on the fully completed 900-mile pipeline, which extends from the Williston Basin to ONEOK’s existing Mid-Continent NGL facilities in Bushton, Kansas.
Elk Creek has the capacity to transport
up to 240,000 barrels per day (bpd) of unfractionated NGLs and the capability to
be expanded to 400,000 bpd with additional pump facilities. ONEOK expects total Rocky Mountain NGL volume transported on the Elk Creek and Bakken NGL pipelines to reach more than 240,000 bpd by the end of the first quarter 2020.
“The completion of Elk Creek provides critical NGL transportation to producers
in the highly productive Williston, Powder River and Denver-Julesburg basins,” said Terry K. Spencer, ONEOK president and chief executive officer. “Elk Creek, combined with ONEOK’s investments in additional natural gas processing infrastructure in the region, will help producers significantly reduce natural gas currently flaring in North Dakota.” ONEOK, December 11, 2019
DOWNSTREAM
Phillips 66 announces 2020 capital programme
Phillips 66, a diversified energy manufacturing and logistics company, announces its 2020 capital programme. The Phillips 66 capital budget is $3.3bn, net of $0.5bn expected
cash capital contributions from joint venture partners. The adjusted capital budget includes $0.9bn for Phillips 66 Partners.
“The 2020 capital programme supports our strategy to grow high-value businesses, improve returns, and ensure safe, reliable and environmentally responsible operations,” said Greg Garland, chairman and CEO of Phillips 66. “We are investing in attractive growth and return projects that further build out and enhance our integrated system, and funding $1.2bn of sustaining capital for operating excellence projects. The capital program is aligned with our disciplined approach to capital allocation that is underpinned with strong shareholder distributions. Our long- term objective is to reinvest 60% of cash flow back into the business and return 40% to shareholders through dividends and share buybacks.”
The midstream budget, excluding Phillips 66 Partners, primarily reflects funding for the Liberty and Red Oak crude oil pipelines and 450,000 barrels per day of additional fractionation capacity at the Sweeny Hub.
The Phillips 66 Partners budget includes investments in the Gray Oak Pipeline, the C2G Pipeline, the South Texas Gateway Terminal and the Bakken Pipeline, as well as sustaining capital.
The refining capital budget includes $0.6bn for reliability, safety and environmental projects. In addition, Refining capital will fund fluid catalytic cracking (FCC) unit upgrades at the Ponca City and Sweeny refineries, renewable diesel projects and other high-return, quick-payout projects to enhance margins.
The marketing and specialties budget primarily reflects the development and improvement of our international retail sites.
The corporate and other capital budget will primarily fund information technology projects, including an investment in a new enterprise resource planning system.
Phillips 66’s proportionate share of capital spending by joint ventures DCP Midstream, Chevron Phillips Chemical Company and WRB Refining is expected to be $1.2bn. Capital spending by these three major joint ventures is expected to be self-funded. PHILLIPS 66, December 13, 2019
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Week 50 18•December•2019