Sign in
Why are you using WhatsApp?
We have the only messenger dedicated to the industry right here!
Newsfeed, Jobs, Chat, Vendor Network, Crew Creator and Location Services
Subscribe to our mailing list to receive trending oil and gas news!
(Bloomberg) Anadarko Petroleum Corp., Noble Energy Inc. and other companies exploring for oil and natural gas in Colorado jumped in stock market trading Wednesday after voters rejected a plan that sought to limit their ability to drill in the state.
Proposition 112 was voted down with 57% of ballots cast against the measure. It would have forced oil and gas development further away from residential and environmentally “sensitive†areas, curbing drilling across more than half of Colorado.
Oil and gas companies raised more than $41 million to defeat the proposal, compared with just $1.3 million amassed by its supporters. The battle over the proposition illustrated the industry’s influence in a state that’s producing more crude than ever, driven by activity in the prolific DJ basin just north of Denver. Energy extraction and production contributed about $13.1 billion to Colorado’s economy in 2017, or about 4.3% of the state’s total gross domestic product.
The vote lifts a threat that hung over some energy stocks since early August, when supporters gathered enough signatures to get the measure on the ballot. Anadarko’s stock has fallen 20% in that time, SRC Energy Inc. 35 percent and Extraction Oil & Gas Inc. 43%, analysts at Houston-based Tudor Pickering Holt & Co. said in a note.
On Wednesday, Anadarko rose 7.8% at 10:03 a.m. in New York while Noble gained as much as 7.1%; Extraction climbed as much as 19%; PDC Energy Inc. jumped 14%; SRC gained 20%; HighPoint Resources Corp. rose 24%; and Bonanza Creek Energy Inc. advanced 16%.
Pipeline companies with a presence in Colorado also increased, with DCP Midstream LP and Western Gas Partners LP gaining as much as 14% and 12% respectively.
As of August, Colorado’s oil output reached 477,000 bpd, leading the state to overtake California and become the nation’s fifth-largest producer. But the boom’s proximity to Denver’s suburbs has raised concerns about health and safety, especially after an Anadarko gas line explosion last year killed two people and leveled a home.
Despite failure at the ballot box, Colorado’s legislature may take action early next year to further regulate the industry. House Majority Leader KC Becker, a Democrat representing Boulder county who endorsed Proposition 112, has said the statehouse will consider legislation tackling funding for orphan wells, air and water monitoring, greater local control over siting and potentially a setback from infrastructure.
While Colorado’s voters rejected the drilling limits, they elected as governor Democrat Jared Polis, a past critic of oil and gas development.
In a statement on Anadarko’s website, CEO Al Walker cheered “the defeat of this extreme measure†but also said the company was ready to work with the state to find “a better equilibrium†with Colorado’s growing population.
“For the betterment of the state, the communities, and our industry, we need to work together to eliminate, to the extent possible, this two-year cycle that increasingly hurts economic stability,†Walker said.
The industry intends to “continue substantive, serious dialogue with our colleagues on the other side of this debate,†Tracee Bentley, executive director of the Colorado Petroleum Council, said in another statement.
By Catherine Traywick and Alex Nussbaum
— With assistance by Rachel Adams-Heard
Photo used under the Creative Commons Attribution-Share Alike 3.0 Unported license. Author: Ronhjones
Check out our other current stories!
A new community just for oil and gas…
Download the app free right here!
Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023. Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.” Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.” Updated Guidance As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023. First Quarter 2023 Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023 Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico. The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin. The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL). Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee. “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling. Source: Dolphin Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Why are you using WhatsApp?
We have the only messenger dedicated to the industry right here!
Newsfeed, Jobs, Chat, Vendor Network, Crew Creator and Location Services
Subscribe to our mailing list to receive trending oil and gas news!
Comments (0)