PETROLEUM INDUSTRY AND TRADE – AUSTRALIA

Coates plans board shake-up at Santos

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Original article by Damon Kitney, Matt Chambers
The Australian – Page: 17 & 18 : 15-Feb-16

Oil and gas producer Santos has indicated that its 2015 financial results could include write-downs of up to $A3bn. Meanwhile, chairman Peter Coates has stressed the need for board renewal, noting that some directors have been on the board for a long time. However, he says there are no plans for further board changes in 2016, although there has been speculation that several could step down before the end of the year. Coates has also identified recruiting his eventual successor as a priority.

CORPORATES
SANTOS LIMITED – ASX STO, AGL ENERGY LIMITED – ASX AGL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SCHLUMBERGER LIMITED, ASX LIMITED – ASX ASX, BLUESCOPE STEEL LIMITED – ASX BSL, ENERGYAUSTRALIA PTY LTD, COCHLEAR LIMITED – ASX COH, DEUTSCHE BANK AG, CGI GLASS LEWIS PTY LTD, STANDARD AND POOR’S CORPORATION, ORIGIN ENERGY LIMITED – ASX ORG, CONOCOPHILLIPS

Moody’s may cut Woodside, Origin ratings

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Original article by Brian Robins
The Australian Financial Review – Page: 15 : 25-Jan-16

Ratings agency Moody’s Investors Service has scaled back its Brent crude oil price assumptions by $US10 per barrel in both 2016 and 2017, to $US33 and $US38 respectively. The firm notes that there is a risk of a further downturn in the crude oil price. Meanwhile, Moody’s has indicated that it expects to complete a review of the credit ratings of Origin Energy and Woodside Petroleum by the end of March, which could potentially result in downgrades.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, ORIGIN ENERGY LIMITED – ASX ORG, WOODSIDE PETROLEUM LIMITED – ASX WPL, SCHLUMBERGER LIMITED

Woodside takes $1.7bn hit as oil prices slump

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Original article by Matt Chambers
The Australian – Page: 17 : 22-Jan-16

Oil and gas producer Woodside Petroleum has reported revenue of $US1.105bn for the December 2015 quarter, which is 37 per cent lower than the same period in 2014. Revenue for the full year also fell by 37 per cent to $US4.5bn, due to the downturn in the crude oil price. Woodside has advised that its full-year accounts will be marred by asset write-downs of up to $US1bn ($A1.2bn). Its shares closed $A0.39 lower at $A25 on 21 January 2016.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, OIL SEARCH LIMITED – ASX OSH, APACHE CORPORATION, DEUTSCHE BANK AG

More oil, gas write-downs set to follow BHP’s lead

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 16 : 18-Jan-16

The downturn in the crude oil price prompted a number of Australian-listed energy groups to announce write-downs in 2015. The price of Brent crude oil closed at $US28.94 per barrel on 15 January 2016, coinciding with BHP Billiton’s announcement that its 2015-16 interim results are likely to include a $US7.2bn impairment charge on its oil and gas assets. Mark Busuttil of JP Morgan has forecast that Santos could announce a pre-tax write-off of about $A2bn.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SANTOS LIMITED – ASX STO, JP MORGAN AUSTRALIA LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, ORIGIN ENERGY LIMITED – ASX ORG, BEACH ENERGY LIMITED – ASX BPT, SENEX ENERGY LIMITED – ASX SXY, AWE LIMITED – ASX AWE, DRILLSEARCH ENERGY LIMITED – ASX DLS, RBC CAPITAL MARKETS, BLOOMBERG LP, STANDARD AND POOR’S CORPORATION, BG GROUP PLC, GLADSTONE LNG PTY LTD, AUSTRALIA PACIFIC LNG LIMITED

Woodside cuts spending, lifts production guidance

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 26 : 18-Dec-15

Woodside Petroleum has advised that its total production for 2015 will be within the range of 91 million to 93 million barrels of oil equivalent. Its previous forecast was 88 million to 93 million boe. The oil and gas group has also indicated that capital expenditure for the calendar year will be $US100m lower than previously forecast, and its exploration budget has been cut by $US70m. Woodside’s shares closed 0.85 per cent lower at $A26.82 on 17 December.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, APACHE ENERGY LIMITED, CHEVRON CORPORATION

Woodside drops Oil Search bid

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Original article by Barry FitzGerald
The Australian – Page: 20 : 9-Dec-15

Woodside Petroleum has advised that it will no longer pursue a $A10.2bn takeover bid for Oil Search. Woodside had never convinced investors and the Papua New Guinea Government – which has a 10.1 per cent stake in Oil Search – of its one-for-four scrip offer’s merits. Suhas Nayak of Allan Gray notes that Oil Search could not be classified as a "distressed asset", but says Woodside’s relatively healthy balance sheet means it can pursue such assets if appropriate opportunities arise.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, ALLAN GRAY AUSTRALIA PTY LTD, EXXONMOBIL CORPORATION

Santos pitches value of shares in long term

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 23-Nov-15

Retail investors will be offered shares in Santos at $A3.85 apiece in the oil and gas producer’s entitlement offer. Santos is seeking to raise $A1.375bn from retail investors and $A2.5bn overall. The rights issue is part of a broader strategy aimed at reducing group debt. Neil Beveridge of Bernstein suggests that Santos could attract another private equity buyer, after the group rebuffed a bid from Scepter Partners in October 2015.

CORPORATES
SANTOS LIMITED – ASX STO, BERNSTEIN AND ASSOCIATES, SCEPTER PARTNERS, HONY CAPITAL LIMITED, BLOOMBERG LP

Chinese rescue Santos

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Original article by Simon Evans, Angela Macdonald-Smith, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 12 : 10-Nov-15

China-based Hony Capital will initially acquire a 9.9 per cent stake in Santos for $A500m, although its participation in a $A2.5bn rights issue means the private equity firm will invest about $A700m in the oil and gas group in total. Santos investors will be offered new shares at $A3.85 apiece, compared with the group’s closing price of $A5.91 on 6 November 2015. Meanwhile, Clough CEO Kevin Gallagher will become CEO of Santos in early 2016.

CORPORATES
SANTOS LIMITED – ASX STO, HONY CAPITAL LIMITED, CLOUGH LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, PIZZA EXPRESS, SWISSE WELLNESS PTY LTD, BIOSTIME INTERNATIONAL HOLDINGS LIMITED, SCEPTER PARTNERS, BERNSTEIN AND ASSOCIATES, DEUTSCHE BANK AG, LAZARD PTY LTD, LEGEND GROUP LIMITED, TEMASEK HOLDINGS (PTE) LTD

Santos rejects Scepter’s $7bn takeover bid

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Original article by Matt Chambers
The Australian – Page: 21 & 24 : 23-Oct-15

Shares in oil and gas producer Santos closed 16 per cent higher at $A6.32 on 22 October 2015, in response to a takeover approach from Scepter Partners. The Bermuda-based private equity firm’s $A7.14bn non-binding offer is pitched at $A6.88 per share, which has been described as "opportunistic" by Santos. Romano Sala Tenna of Katana Asset Management agrees with this assessment, although Mark Samter of Credit Suisse believes that Scepter’s offer represents good value for Santos investors.

CORPORATES
SANTOS LIMITED – ASX STO, SCEPTER PARTNERS, KATANA ASSET MANAGEMENT LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, HSBC HOLDINGS PLC, GLENCORE PLC, XSTRATA PLC, VODAFONE GROUP PLC, BLACKSTONE ADVISORY PARTNERS ASIA, CITIGROUP PTY LTD

Analysts wary of Woodside Petroleum hiking Oil Search offer price

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Original article by Brian Robins
The Australian Financial Review – Page: 15 : 16-Oct-15

Woodside Petroleum’s revenue rose by 21 per cent to $US1.09bn ($A1.5bn) in the September 2015 quarter, although it fell by 44.6 per cent year-on-year due to the impact of the lower crude oil price. Production was 26 per cent higher than the June quarter, at 25.3 million barrels of oil equivalent. Meanwhile, some analysts have downplayed the potential for Woodside to increase its takeover offer for Oil Search.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, MACQUARIE GROUP LIMITED – ASX MQG, GMP SECURITIES LP, CHEVRON CORPORATION