It's time to buy U.S. E&P assets, and it's time to sell, depending on your long-term goal. Each year, prognosticators suggest major oil companies will buy a large U.S.-focused E&P, such as Devon Energy Corp. or Anadarko Petroleum Corp. Each year passes, and the forecast is as valuable as the fortune cookie that comes with Chinese take-out: It's fun, and it was free (well, it didn't show up on the bill). As each year passes, the major oils continue to miss opportunities. Of course, ExxonMobil or ConocoPhillips produces out an Anadarko a quarter or at least in under a year, so buying one of these isn't significant to near-term results. By the SEC's definition of what is "material," ExxonMobil might not even need to put out a press release on buying an Anadarko (just joking). But what the major oils have been missing is the "promise," i.e. the PDNP and PUD, probable and possible. They do invest heavily abroad on probable and possible; they miss this right at home. It's better for the U.S. independent oil industry that the major oils have practically left it alone to grow at home -- the evidence is in how they've grown since the mid-1980s. Of course, a major buying a Devon Energy would result in a large number of U.S. assets coming onto the market for smaller independents to work and profit from, since the majors would do as they do -- divest. As for a time to sell, it's profit-taking time for many producers. Sell to a major now at $140 oil and $13 gas and in today's capital-gains tax regime, and buy a bit of it back next year at a smaller price and virtually untouched. –Nissa Darbonne, Executive Editor, Oil and Gas Investor, A&D Watch, OilandGasInvestor.com; firstname.lastname@example.org
2023-09-05 - CEO Bill Way has shifted Southwestern Energy’s course from Fayetteville founder to dual-basin natural gas powerhouse. Now the LNG sector’s top supplier aims to establish itself as the leading natural gas company in the U.S. with decades of inventory in the Haynesville Shale and Appalachian Basin.
2023-09-25 - As public E&Ps hold fast with capital discipline, even exuberant prices might not be enough to substantially bump up production, although private operators remain a wild card, analysts said.
2023-11-06 - From another postponement of the Gulf of Mexico’s Lease Sale 261 to new contract awards, below is a compilation of the latest headlines in the E&P space.
2023-10-02 - Here’s a roundup of the latest E&P headlines, including the go-ahead for a North Sea subsea field to begin production and new contract awards and technology launches.
2023-10-30 - Here’s a roundup of the latest E&P headlines, including the gas export concept solution for Goliat and subsea equipment delivered for Shenzi North.