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$NBL 1Q15 10-Q: Capital program for 2015 are an investment of approx. $2.9Bil which is approximate 40% reduction from 2014. To allocate approx. $1.8Bil to onshore US development split between DJ Basin & Marcellus Shale drilling programs & infrastructure investment. Approx. $600MM to be invested in development of sanctioned Gulf of Mexico projects.
Natural gas company $CNX said it intends to rebrand CONE Gathering and its subsidiaries, on closing the acquisition of $NBL’s 50% membership interest in CONE Gathering. The initiative, aimed at conforming to the CNX brand identity, includes rechristening of CONE into `CNX Midstream Partners’ and changing the ticker symbol from ‘CNNX’ to ‘CNXM’.
$NBL raised its its outlook for 3Q17 sales volumes to range of 352,000-358,000 barrels of oil equivalent per day, representing a 3% uplift at the midpoint of expectations. Total oil volumes are expected to rise over 4% from prior guidance to 126,000-130,000 barrels per day. Capex has been maintained within the original range of $625-725MM.
$NBL priced its previously announced cash tender offer for any and all of its $1Bil 8.25% senior notes due 2019, which expired on Aug 14, 2017. As on expiry, $666.56MM aggregate principal amount of the 2019 notes were validly tendered, which excludes $2.2MM aggregate principal amount of the 2019 notes that remain subject to delivery procedures.
$NBL has priced an offering of $600MM of 3.85% senior notes due on Jan 15, 2028, and $500MM of 4.95% senior notes that will mature on Aug 15, 2047. The price to the public for the 2028 notes and the 2047 notes are 99.688% and 99.643% of the principal amounts, respectively. The offering is expected to close on Aug 15, 2017.
$NBL began a cash tender offer for any and all of its $1Bil 8.25% senior notes due 2019. The tender offer will expire on Aug. 14, 2017, unless extended or earlier terminated. $NBL has engaged Citigroup to act as dealer manager, and has appointed Global Bondholder Services Corp. to serve as the depositary and information agent for the tender offer.
$NBL closed the transaction divesting its upstream assets in northern West Virginia and southern Pennsylvania to HG Energy II Appalachia, a portfolio company of Quantum Energy Partners. The purchase price of $1.125Bil is subject to customary closing adjustments.
$NBL has agreed to divest the holding company which owns a 50% interest in CONE Gathering, LLC and 21.7MM common and subordinated limited partnership units to a portfolio company of Quantum Energy Partners for $765MM. Closing of the transaction is anticipated in 3Q17.
$NBL expects to reduce its debt this year with the proceeds from the Marcellus transaction. The company has struck a deal to sell off its assets in Marcellus Basin for $1.2Bil. The U.S. oil and gas producer ended 1Q17 with $4.8Bil in total liquidity and about $6.9Bil in debt ($6.7Bil of the debt is bank and bond debt).
For 2Q17, $NBL lifted total sales volumes forecast to 405,000-415,000 Boe/d, which represents the upper half of its prior range. Total liquids volumes are expected to be up about 30,000 Bbl/d from 1Q, with half of the increase from oil and half from NGL volumes. Natural gas is expected to be relatively flat period over period.
$NBL's total sales volumes for 1Q17 were 382,000 barrels of oil equivalent per day (Boe/d). Crude oil and condensate sales volumes totaled 119,000 barrels per day (Bbl/d) and natural gas liquids (NGLs) totaled 55,000 Bbl/d. Natural gas contributed the remaining 1.2Bil cubic feet per day.
$NBL swung to a profit in 1Q17 from a loss last year, on higher revenue and lower costs and expenses. Net income was $36MM or $0.08 per share compared to a loss of $287MM or $0.67 per share last year. Revenue grew to $1.04Bil from $724MM. Adjusted loss for the latest quarter was $0.05 per share.
$NBL agreed to divest all of its upstream assets in northern West Virginia and southern Pennsylvania to an undisclosed buyer for a total amount of $1.225Bil. The amount includes upfront cash of $1.125Bil and an additional contingent amount of $100MM, structured as three separate payments of $33.3MM.
$NBL said that, following the overwhelming approval by the stockholders of Clayton Williams Energy of the acquisition of Clayton Williams Energy by $NBL, the transaction closed and became effective immediately on April 24, 2017. Clayton Williams Energy became a wholly owned subsidiary of $NBL under the name NBL Permian LLC.
Shareholder rights law firm Johnson & Weaver, LLP is investigating potential claims against $PNRA and $CWEI. One investigation concerns whether the Panera board failed to satisfy their duties to shareholders regarding the JAB deal to buy $PNRA at $315 per share in cash. The $CWEI investigation is regarding the acquisition by $NBL for $139 a share.