Page 13 - NorthAmOil Week 15

NorthAmOil
NEWS IN BRIEF
NorthAmOil
$1bn in annualised cash savings, and we will continue to remain agile to ensure the long- term success of the business.”
In addition to previously communicated capital and cost initiatives, Noble Energy has: Reduced planned capital expenditures for 2020 by an additional $350mn to now range from $800-900mn. As compared to original guidance, 2020 capital expenditures have been reduced 50% at the midpoint;
Identified an additional $125mn in cash cost savings (from lease operating, production taxes, gathering and transportation, general and administrative, and asset retirement). These actions are anticipated to reduce
cash outlay for 2020 by over $175mn versus original plan;
Lowered executive leadership salaries by 10-20% and decreased cash retainer to directors by 25% through year-end 2020;
Implemented employee furlough and part-time programs to align the company’s workforce with near-term activity levels;
Cash-settled certain 2020 crude oil hedges that had reached maximum value, generating an additional $145mn in realised gains in the first quarter, and added new downside oil hedge protection through the remainder of 2020;
Ensured ample cash on hand by drawing $1bn on the Company’s unsecured $4bn revolving credit facility as of the end of March 2020;
Reduced the company’s quarterly cash dividend to an annualised per share amount of $0.08.
NOBLE ENERGY, April 15, 2020
MIDSTREAM
Advantage announces agreement to sell 12.5% interest in Glacier gas plant for CAD100mn
Advantage Oil & Gas is pleased to announce it has reached a definitive agreement to sell
a 12.5% interest in the Glacier gas plant to
a strategic partner for CAD100mn cash proceeds. This transaction will fortify Advantage’s robust balance sheet during a time of unprecedented volatility and augment the corporation’s ability to pursue strategic opportunities and execute value-generating capital projects. National Bank Financial acted as financial advisor to Advantage on the transaction.
The Glacier gas plant is one of the largest producer-owned gas processing facilities in Canada. It was commissioned by Advantage in 2010 and expanded in six phases to reach 400 mmcf per day raw gas and 6,800 bpd liquids capacity by 2018. The plant features innovative design, high operating run-times, zero venting, and state-of-the-art automation technology. Complemented by the Glacier acid gas sequestration project, it continues
to be a key element of Advantage’s leading operating cost structure and extremely low carbon emissions intensity.
Advantage will continue to be operator of the Plant and will retain all surplus capacity during the term of a volume commitment. Advantage and the purchaser may pursue
further strategic opportunities together. The Glacier gas plant processes all
production from Advantage’s Montney assets at Glacier, Valhalla and Progress through
a network of owned pipelines, compressor stations and liquids hubs. As commodity prices vary, Advantage maintains the optionality to redeploy capital to the assets with superior economics depending on the mix of gas, condensate and light oil, with no major infrastructure projects required. ADVANTAGE OIL & GAS, April 13, 2020
SERVICES
US Well Services and EQT
Corporation finalise long-
term electric frack contract
US Well Services today announced it has executed a long-term contract to provide electric hydraulic fracturing services for EQT Corporation using its next-generation Clean Fleet® technology. Pursuant to the terms of the agreement, US Well Services will provide a dedicated electric hydraulic fracturing fleet to support EQT’s completions activity for three years if all optional extensions are exercised.
“US Well Services is pleased to announce that we have formalized our partnership with EQT following its successful trial of the Clean Fleet® technology beginning in the fourth quarter of 2019,” said Joel Broussard, US
Well Services’ President and Chief Executive Officer. “EQT is the largest producer of natural gas in the United States and is a best-in-class E&P operator. The decision
to contract an electric fracturing fleet from USWS is a testament to EQT’s unyielding focus on decreasing completion costs and improving efficiencies while minimising its environmental impact.”
“We are excited to strengthen our partnership with US Well Services and utilise their innovative, next-generation Clean Fleet® frack technology,” said Toby Z. Rice, EQT president and chief executive officer. “This partnership will allow EQT to capture proven operational efficiencies to deliver on our well cost targets, while decreasing our carbon footprint and opening the door for future innovation as we evolve the way we operate. This agreement secures one-third of our planned activity levels, preserving EQT’s operational flexibility for the future.”
“Clean Fleet® offers unparalleled advantages to our customers through fuel cost savings, operating efficiencies and an industry leading reduction in noise and greenhouse
Week 15 16•April•2020
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