Blackstone Reportedly Nears Deal For Shell Gas Stake
Aug 10 14
Royal Dutch Shell plc (ENXTAM:RDSA) is preparing to dispose of its 50% stake a Louisiana gas field to The Blackstone Group L.P. (NYSE:BX) for $1.2 billion, as the oil and gas group retreats from one of its souring investments in North America. A person familiar with the situation said Blackstone is set to acquire Shell’s stake in the Haynesville Shale formation, that rests under large parts of Arkansas, Louisiana and Texas, as soon as this week. The person cautioned that deal talks could still fall apart. However, a deal would mark the latest sign Blackstone’s seeking to swoop in and take advantage of struggling investments in gas fields. Shell owns a 50% stake in the Haynesville formation with the other half owned by Encana Corporation (TSX:ECA).
Encana Corporation Declares Dividend, Payable on September 30, 2014
Jul 24 14
Encana Corporation declared a dividend of $0.07 per share payable on September 30, 2014, to common shareholders of record as of September 15, 2014.
Encana Corporation Reports Unaudited Consolidated Earnings and Operating Results for the Second Quarter and Six Months Ended June 30, 2014; Revised Earnings and Production Guidance for the Year 2014; Provides Production Guidance for the Fourth Quarter of 2014
Jul 24 14
Encana Corporation reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported cash flow of $656 million against $665 million a year ago. Cash flow per diluted share was $0.89 against $0.90 a year ago. Operating earnings were $171 million against $247 million a year ago. Operating earnings per diluted share were $0.23 against $0.34 a year ago. Net earnings were $281 million or $0.38 per share against $730 million or 0.99 per share a year ago. Revenue was $1,588 million compared to the $1,984 million for the same quarter year ago. Capital expenditure was $3,483 million compared to the $726 million for the same quarter year ago. While total cash flow was down slightly from the second quarter of 2013, Encana's upstream operating cash flow, excluding hedges, was up by roughly 22% compared to the second quarter of 2013. The company net earnings before income tax were $570 million against $486 million a year ago. Net earnings attributable to common shareholders were $271 million or $0.37 basic and diluted earnings per share against $730 million against $0.99 basic and diluted earnings per share a year ago. Cash flow from operating activities was $767 million against $554 million a year ago. Capital expenditure was $560 million against $639 million a year ago.
For the six months, the company has reported cash flow of approximately $1,733 million or $2.34 per share compared to the $1,188 million or $1.61 per share, a 41% rise year-over-year, while $686 million in operating earnings and $387 million in net earnings attributable to common shareholders are increases of 61% and 29%, respectively, from 2013 levels. Profit was $397 million or $0.54 per share compared to the $299 million or $0.41 per share for the same period year ago. Revenue was $3,480 million compared to the $3,043 million for the same period year ago. Capital expenditure was $4,017 million compared to the $1,463 million for the same period year ago. The company reported net earnings before income tax were $714 million against $98 million a year ago. Net earnings attributable to common shareholders were $387 million or $0.52 basic and diluted earnings per share against $299 million against $0.41 basic and diluted earnings per share a year ago. Cash flow from operating activities was $1,710 million against $892 million a year ago. Capital expenditure was $1,071 million against $1,354 million a year ago.
For the quarter, the company reported natural gas of 2,541 MMcf/d against 2,809 MMcf/d a year ago. Total oil and NGLs were 68.2 Mbbls/d against 67.9 Mbbls/d a year ago. Total production was 2,949 MMcfe/d against 3,216 MMcfe/d a year ago.
For the six months, the company reported natural gas of 2,675 MMcf/d against 2,821 MMcf/d a year ago. Total oil and NGLs were 68 Mbbls/d against 45.6 Mbbls/d a year ago. Total production was 3,083 MMcfe/d against 3,094 MMcfe/d a year ago.
The company announced the total liquids production in the fourth quarter of 2014 is expected to average between 105,000 and 110,000 barrels per day, excluding the expected production from Bighorn.
The company hedged approximately 2,138 MMcf/d of expected July to December 2014 natural gas production at an average price of $4.17 per thousand cubic feet (Mcf) and approximately 825 MMcf/d of expected 2015 natural gas production at an average price of $4.37 per Mcf. In addition, The company has hedged approximately 304,000 barrels per day (Mbbls/d) of expected July to December 2014 oil production using WTI fixed price contracts at an average price of $97.34 per bbl. The company also now expects 2014 total liquids production of 86,000 to 91,000 bbls/d, up from previous guidance projections of 68,000 to 73,000 bbls/d. The midpoint on the revised guidance projects about 88,500 barrels per day of total oil and NGL production in 2014 and greater than 25% increase, midpoint-to-midpoint, compared to original 2014 guidance, which the company disclosed last December. The company is projecting an annual average of about 2.4 Bcf to 2.5 Bcf per day, about a 9% decrease, midpoint-to-midpoint, against original 2014 natural gas guidance. This decrease is primarily due to the annualized impact of asset sales and acquisitions that have closed year-to-date.
The company continued to enhance its financial strength through a quarter of rapid portfolio transition. Proceeds received from the IPO and divestitures transactions, along with year-to-date free cash flow of approximately $679 million, contributed to a strong period-end balance of approximately $2.7 billion in cash and cash equivalents. As a result of the strong results achieved thus far in 2014, the company has increased its cash flow guidance from $2.9-$3.0 billion to $3.4-$3.6 billion. This increase reflects the strong first quarter gas prices and the cash flow that expects to receive from Eagle Ford assets in the second half of the year. The company has also increased its upstream capital investment guidance to $2.6-$2.7 billion, up from $2.3-$2.4 billion, largely attributable to the planned capital expenditures in the newly acquired Eagle Ford position. The company expects to generate free cash flow of about $500 million in 2014.