Page 12 - NorthAmOil Week 13

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Devon Energy provides revised 2020 capital expenditure outlook and hedge update
Devon Energy today provided updates to its 2020 capital expenditure outlook and hedge position. Based on current market conditions, Devon has elected to further reduce its capital expenditures by an additional $300mn for the full-year 2020. The revised capital outlook of approximately $1bn represents a reduction
of nearly 45% compared to the company’s original 2020 capital budget.
The $300mn of incremental capital reductions will be driven by the deferral of activity in the Eagle Ford, improved capital efficiencies in the Delaware Basin and lower service-cost pricing attained across the company’s asset portfolio. With the revised capital plan, Devon now expects to fund its 2020 capital programme within operating cash flow at current strip pricing. Beyond the spending cuts announced today, Devon is prepared to further reduce capital activity should commodity prices remain weak to protect its financial strength.
“Our top priority in this environment
is to protect Devon’s financial strength and liquidity,” said Dave Hager, president and CEO. “Our decisive actions to date have allowed us to rapidly recalibrate drilling and completion activity to ensure we can fund
all our 2020 capital requirements within cash flow. We will continue to assess market conditions and adjust activity levels as necessary to ensure the long-term viability of our business.”
DEVON ENERGY, March 30, 2020
Tengasco announces year-
end 2019 financials and
results of operations
Tengasco announced today that it has filed with the Securities and Exchange Commission its annual report on Form 10-K for the year ended December 31, 2019.
The company reported a net loss from continuing operations of $(436,000) or $(0.04) per share in 2019 compared to net income from continuing operations of $442,000 or $0.04 per share in 2018. In addition to the
net income from continuing operations, the Company also reported net income from discontinued operations of $1,127,000 or $0.11 per share in 2018. The net income from discontinued operations in 2018 was primarily related to recording a gain on the sale of the methane facility assets completed in January 2018.
The company realised revenues of approximately $4.9mn in 2019 compared to $5.9mn in 2018. During 2019, revenues decreased approximately $960,000 of which $689,000 of this decrease related to a $7.36 per barrel decrease in the average oil price received from $59.48 per barrel received
in 2018 to $52.12 per barrel received in
2019. Revenues also decreased by $266,000 related to a 4,500 barrel decrease in oil sales volumes from 98,200 barrels in 2018 to 93,700 barrels in 2019. The decrease in volumes
was primarily related to lower sales volumes on the Veverka D lease due to declines
from increased volumes associated with the polymer work performed in mid-2018 as
well as natural declines on other properties, partially offset by sales volumes from the BSU #1-30 well that was completed in Q4 2018.
The company reported total proved oil reserves at December 31, 2018 of 803,000 barrels, valued at approximately $8.4mn on a discounted future net cash flow basis before effect of income taxes, down from 1,094,000 barrels, valued at $14.0mn at December 31, 2018. The decreases in proved reserve volume and value result primarily from lower oil prices experienced during 2019 compared to 2018 oil prices.
TENGASCO, March 30, 2020
DOWNSTREAM
Commonwealth LNG, LLC; notice suspending environmental review schedule
The Federal Energy Regulatory Commission (FERC or commission) is suspending
the environmental review schedule for Commonwealth LNG proposed liquefied natural gas (LNG) export terminal in Cameron Parish, Louisiana. The notice
of schedule, issued on October 15, 2019, identified a May 2020 draft Environmental Impact Statement (EIS) issuance date and an October 2, 2020 final EIS issuance date. This schedule was based upon Commonwealth providing complete and timely responses
to any data requests. In its February 4, 2020 partial response to staff ’s January 2, 2020
data request, Commonwealth stated it would provide the remainder of the outstanding responses in stages through July 2020, including an official interpretation from the United States Department of Transportation
– Pipeline and Hazardous Material Safety Administration (PHMSA) in June 2020 pertaining to Commonwealth’s proposed LNG storage tank design.
Because the outstanding data responses to staff ’s data request and the issuance of the PHMSA interpretation are expected after the previously announced draft EIS date, the commission will suspend the environmental
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Week 13 02•April•2020