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NorthAmOil PROJECTS & COMPANIES NorthAmOil
US DoE approves export licences for four Texas LNG projects
TEXAS
The projects proposed for the Brownsville area face stronger opposition than facilities elsewhere on the Gulf Coast.
THE US Department of Energy (DoE) issued four licences this week covering LNG exports from proposed facilities in Texas to countries with which the US does not have a free-trade agreement (FTA).
Three of the projects – Annova LNG, Texas LNG and Rio Grande LNG – are located in the Brownsville area in South Texas. While these projects hope to leverage their proximity to the Panama Canal, they face stronger opposition than projects in other locations on the US Gulf Coast, from a coalition of shrimpers, fishermen, environmentalists and community groups. These opponents, who cite concerns about endangered species, climate and other issues, have requested that the US Federal Energy Reg- ulatory Commission (FERC) reconsider the per- mits issued to the three projects. However, FERC officials tabled the requests to reconsider the per- mits for Annova LNG and Texas LNG, as well as denying the request to reconsider the permit for
Rio Grande LNG. The opposition coalition may now resort to filing a federal lawsuit in an effort to prevent the projects from going ahead.
The fourth project to receive non-FTA export authorisation from the DoE this week is the planned Stage III expansion of Cheniere Ener- gy’s Corpus Christi LNG facility. The expansion will mark a move away from the design of the existing two 4.5mn tonne per year (tpy) trains – and a third of the same capacity that is currently under construction and due to enter service in 2021. Instead, the Stage III expansion will consist of seven mid-scale liquefaction trains that will have a combined capacity of 10mn tpy. Cheniere expects to take an FID on the expansion this year.
The authorisations will be welcomed by the LNG developers involved, but they come at a difficult time for the industry, with spot prices in Asia at record lows amid a supply glut and the coronavirus outbreak in China reducing demand.™
UPSTREAM
ARC Resources reports fourth quarter and year- end 2019 financial and operational results and year-end 2019 reserves results
ARC Resources is pleased to report its fourth quarter and year-end 2019 financial and operational results as well as its year-end 2019 reserves results. ARC’s audited consolidated financial statements and notes and ARC’s Management’s Discussion and Analysis (MD&A) as at and for the three months and year ended December 31, 2019 are available on ARC’s website and on SEDAR.
ARC’s business delivered strong financial and operational results in 2019. During
the year ended December 31, 2019, ARC generated funds from operations of $697.4mn ($1.97 per share), paid $212.4mn ($0.60 per share) in dividends to shareholders, and maintained its strong financial position.
NEWS IN BRIEF
ARC invested $691.5mn during the year, demonstrating excellent capital execution by bringing the Sunrise Phase II gas processing facility to full capacity and advancing strategic infrastructure projects at Dawson and Ante Creek that will deliver profitable liquids growth over the long term. Average daily production for 2019 was a record 139,126 barrels of oil equivalent (boe) per day, and ARC replaced 164% of 2019 production(4), adding 83mn boe of proved plus probable (2P) reserves through development activities to total 910mn boe, which included replacing 198% of 2019 oil and NGLs production and 153% of 2019 natural gas production. ARC added 65mn boe of proved producing (PDP) reserves through development activities to total 258mn boe.
ARC has established a very efficient, robust, and sustainable business. The company’s operating expense of $4.97 per boe is the lowest it has been in 20 years, and continues to trend downwards. 2P finding and development (F&D) costs, including future development capital (“FDC”), are $4.82 per boe, and ARC continues to manage its corporate decline rate below 30%. The safety of ARC’s employees and contractors continues to be paramount. ARC employees recently surpassed six years without a lost-
time incident, and the total recordable injury frequency for contractors in 2019 was the lowest it has been in the company’s history.
ARC has moved towards a larger production base with lower capital requirements. Planned investment levels for 2020 represent a 28% decrease from 2019 and are expected to deliver a 14% increase in production.
ARC RESOURCES, February 06, 2020
Newpark Resources reports fourth quarter 2019 results
Newpark Resources today announced results for its fourth quarter ended December 31, 2019. Total revenues for the fourth quarter of 2019 were $189.5mn compared to $202.8mn for the third quarter of 2019 and $247.7mn for the fourth quarter of 2018. Net loss for the fourth quarter of 2019 was $17.1mn, or ($0.19) per share, compared to net loss of $1.4mn, or ($0.02) per share, for the third quarter of 2019, and net income of $10.6mn, or $0.11 per diluted share, for the fourth quarter of 2018.
NEWPARK RESOURCES, February 06, 2020
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