Page 10 - LatAmOil Week 32

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Aramco put a characteristically brave face on the CNRL is one of Canada’s largest producers,
results, heralding the firm’s resilience, though and the deal illustrates its desire to keep growing
much of the financial hurt experienced by the its footprint in the liquids-rich Montney shale
company and its majority sovereign stakeholder gas play in northeastern British Columbia.
was self-imposed, given the Ministry of Energy’s News of the deal comes within days of CNRL
direction to Aramco to produce a single-day reporting a better-than-expected loss for the sec-
record in early April. ond quarter of 2020.
For the energy sector, Aramco’s earnings The company’s adjusted loss came in at
update took some of the spotlight off the tragic CAD772mn ($581mn) or CAD0.65 ($0.49)
explosion in the port of Beirut that has brought per share, while Refinitiv data showed that ana-
an already crippled economy to a near-complete lysts had expected it to post an adjusted loss of
halt, with the government set to resign en masse. CAD0.85 ($0.64) per share.
Countries around the world have jumped for- Other second-quarter losses also continued
ward with humanitarian aid, though the wounds to pile up over the past week, extending a trend
are not just skin-deep. that quickly became clear after the first North
Meanwhile, Baghdad announced last week American producers reported their earnings.
that it would increase voluntary additional oil Among those reporting a loss in recent days A number of
production cuts to 400,000 bpd below its 3.8mn in the US was leading shale producer EOG shale producers
bpd ceiling in August to make up for previous Resources, which performed worse than ana-
non-compliance with OPEC+ cuts. lysts’ expectations. have unveiled
The company posted a net loss of $909.4mn,
If you’d like to read more about the key events shaping or $1.57 per share, for the second quarter of plans for a
the Middle East’s oil and gas sector then please click 2020, from a profit of $847.8mn, or $1.46 per
here for NewsBase’s MEOG Monitor. share, a year ago. variable dividend
A number of shale producers, including Pio- in an effort to
Another acquisition in North America neer Natural Resources and Devon Energy, have
Larger North American companies appear to also unveiled plans for a variable dividend in an keep rewarding
be gaining the confidence to make acquisitions effort to keep rewarding shareholders as they
despite the continued uncertainty over the near- struggle to deliver returns. Other shale players shareholders
term oil and gas outlook. have also said they may consider such a move.
This week, Canadian Natural Resources Ltd Pioneer’s CEO, Scott Sheffield, has suggested this
(CNRL) announced that it had agreed to acquire could be a new model for a volatile industry that
Painted Pony Energy for CAD461mn ($347mn) had fallen out of favour with investors in recent
including debt. Indeed, the assumption of years.
Painted Pony’s debt makes up the majority of
the transaction at CAD350mn ($264mn), while If you’d like to read more about the key events shaping
CNRL will pay CAD111mn ($84mn) in cash for the North American oil and gas sector then please click
the company. here for NewsBase’s NorthAmOil Monitor.™

P10 www. NEWSBASE .com Week 32 13•August•2020