ENERGY INDUSTRIES – AUSTRALIA

Oil prices to stay low for years, JPMorgan warns

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Original article by Matt Chambers
The Australian – Page: 17 : 21-Jan-15

JP Morgan has lowered its 2014-15 earnings forecast for Australian-listed resources group BHP Billiton to $US8.3bn ($A10.1bn), or $US1.2bn less than the consensus. A major factor is that JP Morgan also expects the global crude oil price to fall further, and not recover for two years. Brent crude is now tipped to trade at $US49 a barrel in 2015 and $US57 in 2016, compared with previous estimates of $US82 and $US88 respectively. However the Global Energy Fund of Investec Asset Management has taken advantage of the bargain buying opportunity to acquire stock in energy company Santos

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SANTOS LIMITED – ASX STO, WOODSIDE PETROLEUM LIMITED – ASX WPL, BEACH ENERGY LIMITED – ASX BPT, OIL SEARCH LIMITED – ASX OSH, JP MORGAN AUSTRALIA LIMITED, INVESTEC ASSET MANAGEMENT LIMITED, INVESTEC GLOBAL ENERGY FUND, LUKOIL-NEFTEGAZSTROY, CNOOC LIMITED, CHINA NATIONAL OFFSHORE OIL CORPORATION, PETROBRAS, PETROLEO BRASILEIRO SA

Woodside flags cuts, write-downs

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 20 : 16-Jan-15

Woodside Petroleum has reported total sales of $US1.76bn for the final three months of 2014, while sales for the full year were 22.5 per cent higher at $US7.08bn. The oil and gas producer has warned of the potential for asset write-downs of between $US250m and $US400m as a result of the decline in the crude oil price. Woodside also expects to scale back its capital expenditure in 2015. Its shares closed 1.35 per cent lower at $A35.06 on 15 January

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, UBS HOLDINGS PTY LTD, MITSUI AND COMPANY LIMITED, MITSUBISHI CORPORATION, PLATYPUS ASSET MANAGEMENT PTY LTD, PAVILION ENERGY PTE LTD, TEMASEK HOLDINGS (PTE) LTD, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, JP MORGAN AUSTRALIA LIMITED, APACHE CORPORATION

Oil plunge will stir M&A when price settles

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 11 & 16 : 12-Jan-15

Santos, Senex Energy and Horizon Energy are among the Australian companies whose share prices have fallen sharply in response to the downturn in the crude oil price. Experts say lower valuations in the oil and gas sector is likely to prompt mergers and acquisitions activity, although some suggest that potential suitors will bide their time as the oil price and shares may fall further. The price of Brent oil closed at $US50.11 per barrel on 9 January 2015

CORPORATES
SANTOS LIMITED – ASX STO, SENEX ENERGY LIMITED – ASX SXY, HORIZON OIL LIMITED – ASX HZN, BEACH ENERGY LIMITED – ASX BPT, HERBERT SMITH FREEHILLS PTY LTD, TOTAL SA, INPEX CORPORATION, ROC OIL COMPANY LIMITED – ASX ROC, FOSUN INTERNATIONAL LIMITED, DRILLSEARCH ENERGY LIMITED – ASX DLS, AMBASSADOR OIL AND GAS LIMITED – ASX AQO, MAGNUM HUNTER RESOURCES CORPORATION, NIDO PETROLEUM LIMITED – ASX NDO, BANGCHAK PETROLEUM PCL, METGASCO LIMITED – ASX MEL, ELK PETROLEUM LIMITED – ASX ELK, BP PLC, BP AMOCO PLC, EXXONMOBIL CORPORATION, CHEVRON CORPORATION, TEXACO INCORPORATED, BERNSTEIN AND ASSOCIATES, BRIGHTOIL PETROLEUM, HARBOUR ENERGY LIMITED, TEMASEK HOLDINGS (PTE) LTD, PAVILION ENERGY PTE LTD

Shale oil remains the focus for BHP

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Original article by Matt Chambers
The Australian – Page: 16 : 6-Jan-15

Tim Cutt, CEO of the oil and gas division at Australian-listed resources group BHP Billiton, has reaffirmed plans to divest non-core operations and maintain an emphasis on shale assets in the US. The latter require capital investment worth $US4bn ($A4.95bn) a year, compared with just $US1.5bn for conventional energy projects, and had been purchased for $US20bn in 2011. The strategy is being followed despite the recent rapid decline in the global crude oil price

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES

Woodside’s $4.6bn punt on LNG assets

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Original article by Paul Garvey
The Australian – Page: 26 : 17-Dec-14

Peter Coleman, CEO of Australian-listed energy group Woodside Petroleum, has announced the acquisition for $US3.75bn ($A4.6bn) combined of holdings in two LNG developments from US-based Apache Energy. Woodside will gain a 13% stake in the Wheatstone project offshore Western Australia (WA) and one of 50% in the Kitimat tenements in Canada. The deal will please investors who had been concerned at a lack of new growth assets for the company. At the same time it has, along with allies Royal Dutch Shell and BP, again postponed the roll-out of floating LNG technology at their Browse field off WA

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, APACHE ENERGY LIMITED, ROYAL DUTCH SHELL PLC, BP PLC, CHEVRON CORPORATION

Plunge claims its first scalp as Red Fork Energy goes under

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Original article by Paul Garvey
The Australian – Page: 19 : 12-Dec-14

Australian-listed oil and gas producer Red Fork Energy has become the first such business to succumb to the effects of the recent global crude oil price fall. Its stock had declined from $A0.38 in late 2013 to just $A0.006 in early December 2014. In mid-2013 the group sourced over $A47m in fresh capital at a price per share of $A0.43, and among the major stockholders to now suffer losses is Ellerston Capital with a stake of 10.9%. Red Fork, which has shale oil and gas assets in the US, cannot service its liabilities of $A100 with Guggenheim Partners

CORPORATES
RED FORK ENERGY LIMITED – ASX RFE, GUGGENHEIM PARTNERS LLC, ELLERSTON CAPITAL PTY LTD, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, ASX LIMITED – ASX ASX

Power plant half shut as gas rises, demand falls

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Original article by Matt Chambers
The Australian – Page: 20 : 11-Dec-14

AGL Energy has advised that it will close down four of the eight generating units at its gas-fired Torrens Island power station in South Australia in 2017. The move has been attributed to factors such as the rising cost of gas for domestic consumption and a decline in energy use. AGL shut down the four older generating units for several months earlier in 2014 due to low demand for electricity

CORPORATES
AGL ENERGY LIMITED – ASX AGL, SANTOS LIMITED – ASX STO

Woodside’s Apache bid may kill Browse

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Original article by Paul Garvey
The Australian – Page: 20 : 10-Dec-14

Insiders claim that Australian-listed Woodside Petroleum has made a pitch to US partner Apache ­Energy, to acquire the latter’s 13% stake in the Wheatstone LNG development offshore Western Australia. The likely price tag is $US1.8bn ($A2.17bn), and other potential suitors appear to have abandoned their bids due to the recent decline of the crude oil price. If Woodside goes ahead, it may no longer want to pursue its stalled Browse LNG project. A floating LNG production platform has been proposed for it by Woodside and allies Royal Dutch Shell and BP

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, APACHE ENERGY LIMITED, ROYAL DUTCH SHELL PLC, BP PLC, TEMASEK HOLDINGS (PTE) LTD, HARBOUR ENERGY LIMITED, NOBLE GROUP LIMITED, EIG GLOBAL ENERGY PARTNERS, PAVILION ENERGY PTE LTD, ORBIS AUSTRALIA PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG

Santos slumps after rating downgrade

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 10-Dec-14

Investors have responded bearishly to a move by Standard & Poor’s to reduce the credit rating of Australian-listed Santos from "BBB+" to "BBB". Santos shares closed $A0.60 lower at $A7.70 on 9 December 2014, after reaching an intra-day low of $A7.46. The oil and gas producer has indicated that the ratings downgrade will have no impact on its finances, and notes that it has a healthy balance sheet

CORPORATES
SANTOS LIMITED – ASX STO, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, JP MORGAN AUSTRALIA LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Oil slump drives Santos to hybrid

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 19 & 24 : 27-Nov-14

David Knox and Andrew Seaton, CEO and CFO respectively of energy group Santos, on 26 November 2014 told investors about plans to compensate for the recent decline in the crude oil price by some 30%. The company, which has LNG projects in Queensland and Papua New Guinea, will cut costs and capital investment. A previous estimate for annual cash flow to grow 100% between 2013 and 2016 has been revised down to 65%, and Seaton foreshadowed a potential hybrid debt issue worth EUR500m ($A726m). Santos shares closed $A0.15 higher at $A11.98, after a fall of 5% the day before

CORPORATES
SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, SENEX ENERGY LIMITED – ASX SXY, CREDIT SUISSE (AUSTRALIA) LIMITED, ORD MINNETT GROUP LIMITED, PAPUA NEW GUINEA LNG PROJECT, UBS HOLDINGS PTY LTD, TOTAL SA