Page 14 - NorthAmOil Week 06

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NEWS IN BRIEF
NorthAmOil
Baker Hughes announces January 2020 rig counts
Baker Hughes announced today that the Baker Hughes international rig count for January 2020 was 1,078, down 26 from the 1,104 counted in December 2019, and up 54 from the 1,024 counted in January 2019. The international offshore rig count for January 2020 was 245, down 12 from the 257 counted in December 2019, and up 3 from the 242 counted in January 2019.
The average US rig count for January 2020 was 791, down 13 from the 804 counted in December 2019, and down 274 from the 1,065 counted in January 2019. The average Canadian rig count for January 2020 was 204, up 69 from the 135 counted in December 2019, and up 28 from the 176 counted in January 2019.
The worldwide rig count for January 2020 was 2,073, up 30 from the 2,043 counted in December 2020, and down 192 from the 2,265 counted in January 2019.
BAKER HUGHES, February 07, 2020
MIDSTREAM
ARB Midstream announces
new connection to pipeline
system in the DJ Basin
DJ South Gathering (DJS), a subsidiary of ARB Midstream announces another key expansion of its fast-growing crude oil gathering and transportation system in the prolific DJ Basin in northeastern Colorado. DJS’ Platteville Complex now has connectivity to Tallgrass Energy’s Pony Express pipeline and terminal system. With an initial
throughput of 48,000 bpd, the connection into Tallgrass’ Grasslands terminal continues ARB’s mission to operate the most connected crude pipeline system, offer shippers the widest market access, in the DJ Basin.
ARB’s link to Tallgrass’ Pony Express system will be fed by ARB’s 300,000 barrels of dedicated crude oil storage at Platteville, which is in turn fed by DJS’s 90,000 bpd Badger segment 220,000 bpd Matador pipeline and the 150,000 bpd bi-directional Freedom pipeline, linking Platteville to Lucerne West.
ARB’s crude oil gathering systems include over 250 miles of new pipeline covering
the core of the DJ Basin, with over 625,000 bpd of planned and existing throughput capacity and 600,000 barrels of storage. At over 250,000 dedicated acres underpinned by fixed-fee, long term contracts, ARB is the largest privately held crude oil gatherer in the DJ Basin.
The continued expansion of the ARB Midstream pipeline system in the DJ Basin is funded by Ball Ventures through its energy division: BV Natural Resources.
ARB MIDSTREAM, February 06, 2020
DOWNSTREAM
New Fortress Energy signs
long-term LNG supply
agreement
New Fortress Energy announced today that
it has signed a long-term supply agreement for the purchase of 27.5 million MMBtu
per annum of liquefied natural gas (LNG),
or approximately 8 cargoes a year, at a price indexed to Henry Hub through January 2030.
This agreement will support the continued
growth of New Fortress’ customer base in international markets as the company develops LNG terminals and natural gas infrastructure.
“This agreement supports our efforts to spur economic growth and reduce emissions as we deliver more affordable and cleaner energy to our customers,” said New Fortress Chairman and CEO Wes Edens. “We evaluated a broad range of competitive offers to meet the expansion of our LNG terminals across international markets. We’re pleased to take advantage of the dislocation in global LNG markets and secure ten years of offtake for our growing business.”
NEW FORTRESS ENERGY, February 10, 2020
SERVICES
Patterson-UTI Energy
reports financial results for
the three months and year
ended December 31, 2019
Patterson-UTI Energy today reported financial results for the three months and year ended December 31, 2019. The company reported a net loss of $85.9mn, or $0.44
per share, for the fourth quarter of 2019, compared to a net loss of $201mn, or $0.93 per share, for the fourth quarter of 2018. Revenues for the fourth quarter of 2019 were $492mn, compared to $796mn for the fourth quarter of 2018.
For the year ended December 31, 2019, the Company reported a net loss of $426mn, or $2.10 per share, compared to a net loss
of $321mn, or $1.47 per share, for the year ended December 31, 2018. Revenues for the year ended December 31, 2019 were $2.5bn, compared to $3.3bn for the year ended December 31, 2018.
During 2019, the company spent $250mn to repurchase 22.6mn shares pursuant to the company’s share repurchase program. The company also reduced its long-term debt
by $150mn during 2019 and extended debt maturities. During the fourth quarter, the company issued $350mn of senior, unsecured notes due 2029 in order to refinance $300mn of notes due 2022 and to reduce outstanding borrowings under a bank term loan. The early repayment of notes due 2022 resulted in a pre-tax charge of $15.8mn during the fourth quarter.
Andy Hendricks, Patterson-UTI’s chief executive officer, stated: “We believe our rig count bottomed in the fourth quarter and will
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Week 06 12•February•2020