We may see a wave a takeovers by the Majors in 2019 as they move to gain scale in the U.S. shale plays.
Rigzone: "Breakeven prices for shale have been driven below $40 a barrel and are even lower for companies fracking the best rock."
Read: https://www.rigzone.com/news/why_majors ... 7-article/
Major to be more aggressive in U.S. Shale in 2019
Major to be more aggressive in U.S. Shale in 2019
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Major to be more aggressive in U.S. Shale in 2019
BP Profit Smashes Estimates on Eve of Giant Shale Oil Deal . Bloomberg .
BP Plc reported a surge in profit that smashed estimates, giving the company the confidence to fully fund its $10.5 billion U.S. shale oil deal with cash. Adjusted net income was the highest since 2012 and Chief Executive Officer Bob Dudley said the shale acquisition will “transform” the company’s position in the U.S. However, abandoning plans to fund part of the BHP Billiton Ltd. deal with shares leaves BP relying on oil prices remaining in their recent range. It will also mean gearing, the ratio of net debt to equity, will edge above the company’s target of 30 percent in the first quarter. BP will need oil prices to stay strong and execute its divestment plan. Proceeds from $5 billion to $6 billion of planned asset sales, announced in connection with the shale deal, will now be used to reduce debt. BP said gearing should fall back toward the middle of its 20 to 30 percent target range by the end of next year. It’s raised just $400 million from divestments so far this year.
BP Plc reported a surge in profit that smashed estimates, giving the company the confidence to fully fund its $10.5 billion U.S. shale oil deal with cash. Adjusted net income was the highest since 2012 and Chief Executive Officer Bob Dudley said the shale acquisition will “transform” the company’s position in the U.S. However, abandoning plans to fund part of the BHP Billiton Ltd. deal with shares leaves BP relying on oil prices remaining in their recent range. It will also mean gearing, the ratio of net debt to equity, will edge above the company’s target of 30 percent in the first quarter. BP will need oil prices to stay strong and execute its divestment plan. Proceeds from $5 billion to $6 billion of planned asset sales, announced in connection with the shale deal, will now be used to reduce debt. BP said gearing should fall back toward the middle of its 20 to 30 percent target range by the end of next year. It’s raised just $400 million from divestments so far this year.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group