Page 13 - NorthAmOil Week 44

NorthAmOil
NEWS IN BRIEF
NorthAmOil
the parties have been developing a Term Sheet for a lump-sum, turnkey engineering, procurement, construction, installation and commissioning contract (LSTK EPCIC)
for the construction and completion of the newbuild FLNG vessel.
Today the company is pleased to announce it has entered into new agreements for front- end design and engineering work with SHI and Black & Veatch. Delfin and its partners are on-track for completion of the engineering work, including a fully termed LSTK EPCIC by the middle of 2020, for the Delfin LNG project.
Many land-based LNG export projects seek ‘economies-of-scale’ to lower their
costs by developing 10-20+ mtpa projects.
By re-purposing existing offshore pipelines and building the FLNG Vessels at efficient, low-cost Asian shipyards, Delfin can achieve total capital costs around 500-550 $/tpa for just 3.5 MTPA FLNG Vessels. Furthermore, each FLNG Vessel can be developed independently with its own commercial and financial structure. This enables Delfin to offer standard HH+ or tolling models with terms
of 10 to 25 years, integrated structures or JV arrangements with offtakers, producers and/ or traders. Delfin’s existing offshore pipelines connect directly to the extensive network of onshore pipeline systems, with ample supply capacity for the first 2-3 FLNG Vessels.
With the lowest costs for FID thresholds
of just 2.0 to 2.5 MTPA of firm offtake and with full commercial flexibility, Delfin is a true differentiator among the US LNG export companies. With 4 FLNG vessel slots at the Delfin project for a total of 13 MTPA of LNG export and with up to 8 MTPA expansion potential with the Avocet project, Delfin offers large scale LNG production at the bottom-end of the cost curve.
DELFIN MIDSTREAM, October 29, 2019
Marathon Petroleum reports third-quarter results
Marathon Petroleum Corp. (MPC) today reported net income of $1.1bn, or $1.66
per diluted share, for the third quarter 2019 compared to $737mn, or $1.62 per diluted share, for the third quarter of 2018. Excluding adjustments shown in the accompanying earnings release tables, third quarter 2019 adjusted net income was $1.1bn, or $1.63 per diluted share, compared to $774mn, or $1.70 per diluted share, for the third quarter of 2018. MPC returned $848mn of capital to shareholders during the third quarter of 2019, including $500mn in share repurchases.
“Our third-quarter results showcased our operational and commercial excellence,”
said Gary R. Heminger, chairman and chief executive officer. “Refining system utilisation was 98% and leveraging our commercial expertise drove strong capture of 94% vs. market indicators. The retail segment delivered solid fuel margins and exceptional merchandise sales growth across our nationwide footprint, marking the 33rd consecutive quarter of same-store merchandise sales growth.
“The focus of the first year of our combination was execution to unlock unrealised value. We have made significant, observable progress improving mechanical availability and operational integrity, expanding our commercial capabilities, and reducing costs. We have converted roughly 550 of our targeted 700 retail stores and
our synergy capture across the company is significantly ahead-of-schedule and on-track to exceed the targeted $600mn by year end.”
“Our company has a history of bold strategic actions. Creating value for our shareholders has always been and remains a top priority. Today we announced our next step to unlocking future value: our intent
to separate Speedway into an independent company. Additionally, we are forming a special committee of the board of directors to continue evaluating alternatives to enhance value across our midstream business.” MARATHON PETROLEUM, October 31, 2019
SERVICES
US Silica Holdings
announces third-quarter
2019 results
US Silica Holdings, a diversified industrial minerals company and the leading last mile
logistics provider to the oil and gas industry, today announced third quarter 2019 results, including a net loss of $23.0mn, or $(0.31) per basic and diluted share.
The third quarter results were negatively impacted by $4.9mn or $0.05 per share related to merger and acquisition expenses, $3.5mn or $0.03 per share in facility closure costs, $3.9mn or $0.04 per share in costs related to plant startup and expansion, and $3.8mn or $0.04 per share in other adjustments, partly offset by $2.0mn or $0.02 per share in a gain related to a royalty note payable valuation change, resulting in adjusted EPS for the third quarter of $(0.17) per basic and diluted share.
“I am proud of the work that our team
did in the quarter, given the seasonal sand demand slowdown in our Oil & Gas segment,” said Bryan Shinn, president and chief executive officer. “We are adapting swiftly to current market realities and are focused on serving customers optimally and profitably while appropriately managing key operational levers to rationalize capacity and reduce cost. These changes are working as we were able
to add 15 new Oil & Gas customers to our portfolio in Q3.”
“At the same time, we are expanding our performance products offerings to serve higher profit, more stable industrial end markets and customers. We have grown established products rapidly over the past few years and recently introduced new, profitable heat treated and ground silica offerings. While we are growing, we expect to generate free cash flow to de-lever our balance sheet through a continued focus on managing working capital and capex,” he added.
“I believe that we have the right strategy, clear plans and a strong team and I am very excited about the future of our company.” US SILICA HOLDINGS, October 29, 2019
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