Page 18 - NorthAmOil Week 19

NorthAmOil
NEWS IN BRIEF
NorthAmOil
2020 capital budget, we also expect to reduce our annualized cash costs by $350mn. We entered this unprecedented downturn on firm financial footing, and we believe we are taking the necessary steps to protect our hard-earned financial strength and flexibility.”
MARATHON OIL, May 06, 2020
MIDSTREAM
Energy Spectrum Capital
closes eighth venture
capital fund with total
commitments of $969mn
Energy Spectrum Capital, a Dallas-based venture capital firm focused on energy infrastructure, today announced the final closing of Energy Spectrum Partners VIII (Fund VIII) with total capital commitments of $969mn.
With strong support from both new and existing limited partners, Fund VIII will continue to invest primarily in midstream assets within the energy industry. Midstream assets include oil and natural gas gathering and transportation systems, processing and treating plants and storage facilities. A diverse mix of 82 limited partners committed to Fund VIII, including private and public pension funds, insurance companies, university endowments, foundations and family offices.
“The final close of Fund VIII enables
us to continue wisely deploying capital on behalf of our limited partners, as we have done over the past 25 years,” said Thomas
O. Whitener Jr., President and Founding Partner of Energy Spectrum Capital. “In the current environment, we believe we are well positioned to identify high quality midstream assets and take advantage of opportunities amid the significant price dislocations in the current market. We appreciate the support
of our limited partners and look forward to executing on their behalf.”
James P. Benson, founding partner of
Energy Spectrum Capital, added: “This new capital provides Energy Spectrum with a renewed mandate to support best-in-class management teams to build successful midstream companies. Our 10 investment professionals bring an average of 26 years
of experience in energy markets, which we believe will enable us to profitably navigate the market volatility and build another strong portfolio.”
To date, Fund VIII has committed to four new portfolio companies and has a fifth in documentation. Three of the four existing companies are led by management teams with whom Energy Spectrum has successfully partnered previously.
Baker Botts served as legal counsel for Fund VIII.
ENERGY SPECTRUM CAPITAL, May 08, 2020
Summit Midstream Partners reports first-quarter 2020 financial and operating results
Summit Midstream Partners announced today its financial and operating results for the three months ended March 31, 2020, including
net income of $5.3mn, adjusted EBITDA of $66.1mn and DCF of $34.2mn. Operated natural gas volume throughput averaged
1,281 mmcf per day and liquids volume throughput averaged 98,000 bbl per day in the quarter. Natural gas volume throughput benefitted from the on-time commissioning of a five-well pad site behind our Utica Shale gathering system in mid-March 2020. This pad site is generating aggregate production rates in excess of 160 mmcf per day, which exceeded the expectations set forth in our original financial guidance by more than 15%. We expect this system will be a growth driver for us over the next several quarters as natural gas forward pricing has strengthened in the second half of 2020 and will incentivise upstream activity in this and other natural gas-focused basins in which we operate.
Heath Deneke, president and chief executive officer, commented: “We are operating in unprecedented times given the prevailing commodity price backdrop and COVID-19 pandemic. As a result of the current environment, many of our customers have updated their forecasts to reflect the steps they are taking to reduce capital budgets, delay and defer drilling and completion activities, and on a limited scale, temporarily curtail existing production. On May 3, 2020, we released updated 2020 adjusted EBITDA and capital expenditures guidance that was based on revised customer information. As previously reported, we expect our 2020 adjusted EBITDA to trend towards the low-end of our original $260mn to $285mn guidance range and for our 2020 capital expenditures range to be down by 33% at
the midpoint. We will continue to monitor our customers’ month to month decisions regarding to what extent, if any, curtailments of production will continue beyond May 2020 and we will continue to work aggressively
to find ways to further reduce operating expenses and capital expenditures. I’m proud of how quickly our employees have adapted to the current environment, while maintaining their commitment to operate safely, effectively and focus on initiatives that are within our control.”
SUMMIT MIDSTREAM PARTNERS, May 08, 2020
SERVICES
Oceaneering reports first- quarter 2020 results
Oceaneering International today reported
a net loss of $368mn, or $(3.71) per share,
on revenue of $537mn for the three months ended March 31, 2020. Adjusted net income was $3.5mn, or $0.04 per share, reflecting the impact of $393mn of pre-tax adjustments, including $379mn associated with goodwill impairments, asset impairments and write- offs during the quarter.
During the prior quarter ended December 31, 2019, Oceaneering reported a net loss of $263mn, or $(2.66) per share, on revenue of $561mn. Adjusted net income was $2.5mn,
or $0.03 per share, reflecting the impact of $255mn of pre-tax adjustments, primarily $240mn associated with asset impairments, write-downs and write-offs recognized during the quarter.
OCEANEERING INTERNATIONAL, May 13, 2020
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Week 19 14•May•2020