The Hart Energy video team brings a closer look from the exhibit floor at the 2018 NAPE Summit, which drew more than 12,000 attendees this year to downtown Houston.
After overbuilding during the last boom, debt and uncertainty weigh heavily on the sector.
U.S. E&Ps plan substantial increases to their drilling and completion budgets for 2018 and beyond.
To increase production operators still need to access capital on relatively short timeframes.
Finance - Buy Backs
QEP Resources Inc. (NYSE: QEP) said on Nov. 6 it has priced an offering of $500 million aggregate principal amount of senior notes due 2026.
BP Plc (NYSE: BP) will become the first major European oil and gas company to resume share buybacks since the 2014 price slump, a sign years of austerity have paid off.
The bonds, which include notes maturing in Jan. 2019, March 2019, April 2019, Jan. 2020 and March 2020, have almost $10 billion outstanding worth of securities, Reuters reported.
Finance - Debt
Lime Rock’s $1.8 billion “stalking horse” offer tops a $1.6 billion enterprise valuation by Breitburn’s investment bank.
Diamondback said it plans to use all of the net proceeds from the tack-on offering to repay a portion of the outstanding borrowings under its revolving credit facility, which totalled $235 million as of Sept. 30.
Extraction said proceeds will partially be used to fund a tender offer of its $550 million outstanding 2021 notes. Any remaining proceeds will go toward the D-J Basin-focused company's general corporate purposes.
Finance - Equity
Lotus Midstream is a crude oil logistics provider focused on the organic development of midstream infrastructure and services in the Permian Basin and Midcontinent regions.
The investment, which is the New York-based firm’s first since closing Blue Wolf Capital Fund IV LP at its hard cap of $540 million in September 2017, is expected to facilitate rapid expansion at Petrosmith.
Double Eagle’s substantial equity commitments from Apollo Global Management will support the company’s ongoing acquisition and development initiatives in the Permian Basin.
Ridge Runner is a newly-formed E&P focused on the Delaware Basin. The company is led by CEO Scott Germann, an Exxon-trained geologist with more than 20 years of experience in the Permian.
Finance - Redemptions
Holly Energy Partners LP and Holly Energy Finance Corp. will redeem all $300 million of their outstanding 6.50% senior notes due 2020, according to a Dec. 2 press release.
Paramount Resources Ltd. will redeem about $286.58 million of outstanding 7.625% senior unsecured notes due 2019 on Dec. 19 of this year, the company said Nov. 17.
Concho also said it recently completed its redemption of the $600 million of 7.0% senior notes due January 2021.
The Bank of New York Mellon Trust Co. NA, the trustee, is notifying all current registered noteholders of the redemption.
Finance - Restructuring
At the recent NAPE Global Business Conference, panelists from Hess and Akin Gump gave insight on what plays into developing resources in the Lower 48 or international deepwater.
Privately-held Ascent is one of several energy companies U.S. fracking pioneer Aubrey McClendon launched after leaving Chesapeake Energy in 2013.
Drilling rig company Seadrill said in a court filing it postponed an initial hearing on its restructuring plan to Feb. 26, buying more time to consider alternative plans.
Seadrill’s main owner, Norwegian-born billionaire John Fredriksen, backed by Centerbridge Partners, and a group of unsecured bondholders have submitted alternative restructuring plans, and started talks earlier in January.