Tag Archives: Hess Corp

Hess Corporation, Newfield Exploration Co. Leave Pennsylvania Due To Fracking Moratorium

By The Huffington Post News Editors

Two energy companies are pulling out of northeastern Pennsylvania, where a three-year moratorium on gas drilling has infuriated landowners who say it’s now cost them a windfall of more than $187 million.

Hess Corp. and Newfield Exploration Co. sent a letter to landowners that notified them their leases are no longer in effect, according to the Northern Wayne Property Owners Alliance, which negotiated a master lease on behalf of more than 1,300 families and businesses.

“The lease is gone. It is no longer in force. They are releasing the properties,” the group’s spokesman, Peter Wynne, said Monday.

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Source: FULL ARTICLE at Huffington Post

Hedge Fund Keeps Hammering Hess After Lackluster Russian Sale

By Christopher Helman, Forbes Staff

Embattled oil company Hess Corp. appears to have left money on the table in its deal, announced last week, to sell its scandal-tainted Russian subsidiary to Lukoil for $2.05 billion.

From: http://www.forbes.com/sites/christopherhelman/2013/04/11/hedge-fund-keeps-hammering-hess-after-lackluster-russian-sale/

Pentagon Issues $82.2 Million Worth of Contracts

By Rich Smith, The Motley Fool

Filed under:

The Department of Defense announced a series of small (in defense contracting terms) contract awards to a handful of publicly traded companies Tuesday. Among them:

  • Hess Corp. was awarded a $57.6 million fixed-price with economic-price-adjustment contract to supply pipeline-quality natural gas to Army, Navy, and federal civilian agencies locations in New Jersey through March 31, 2015.
  • CACI International won a $17.9 million cost-plus-fixed-fee contract to support Joint Expeditionary Team Counter-IED (C-IED) operations in Afghanistan through December 2013.
  • L-3 Communications landed a $6.7 million foreign military sales contract under a previously awarded basic ordering agreement. L-3 is tasked with repairing Total Radiation Aperture Controlled Antenna (TRAC)-A Rotodome Antennas and performing IFF Mode 5/S upgrades for the French Navy. (France is footing the bill). Work on this contract is to be completed by March 31, 2015.

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The article Pentagon Issues $82.2 Million Worth of Contracts originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of L-3 Communications Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

Sanchez Energy Acquires Eagle Ford Assets from Hess

By 24/7 Wall St.

Drilling Rig

Filed under:

Small-cap independent oil and gas producer Sanchez Energy Corp. (NYSE: SN) this morning announced that it had purchased approximately 43,000 net acres in the Eagle Ford shale play in South Texas from Hess Corp. (NYSE: HES) for $265 million in cash. The acquisition adds about 13.4 million barrels of oil equivalent to Sanchez’s proved reserves and about 4,500 barrels a day to the growing company’s daily production.

Sanchez also announced this morning the private placement of $175 million in newly created Series B preferred stock and its intention to offer additional preferred shares up to an amount totaling $250 million. Today’s offering is expected to yield net proceeds of $168.4 million and if the company raises the offering, net proceeds are expected to reach $241 million.

The company will use some of the proceeds from the sale of preferred shares to pay for today’s announced acquisition. The preferred shares will pay an annual dividend of $3.25 and carry a liquidation preference value of $50 a share. Preferred shares may be converted to common stock at an initial conversion rate of 2.3370 shares of common stock for each preferred share. Sanchez may not redeem the preferred shares, but has the option to convert them to common stock under certain conditions on or after April 6, 2018.

In announcing its acquisition of the Eagle Ford assets, Sanchez said it had obtained financing commitments of $325 million. The acquisition is expected to close in the second quarter of this year.

Shares of Sanchez are up about 0.8% in the premarket this morning, at $19.60 in a 52-week range of $16.37 to $25.37.

Filed under: 24/7 Wall St. Wire, Commodities, Oil & Gas, Secondary Offering Tagged: HES, SN

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Source: FULL ARTICLE at DailyFinance

IEA Lowers Oil Demand Forecast

By 24/7 Wall St.

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Filed under: ,

In the wake of yesterday’s OPEC oil market report, we have the latest monthly report from the International Energy Agency (IEA) today. While the two differ somewhat in specifics, the general story is the same. Global demand for crude will not grow as quickly as either OPEC or the IEA had originally forecast, and prices will be lower.

The IEA today lowered its forecast global demand growth to 820,000 barrels a day, or a total of 90.6 million barrels a day. Yesterday OPEC forecast demand growth of 800,000 barrels a day for a total of 89.7 million barrels a day.

According to the IEA, OPEC production rose by 150,000 barrels a day in February to 30.49 million barrels a day, due mainly to an increase in Iraqi production. Demand for OPEC crude fell by 100,000 barrels a day, due largely to refinery maintenance in the United States and Europe.

Non-OPEC production fell by 60,000 barrels a day in February to 54.1 million barrels a day, which is still 600,000 barrels a day higher than average 2012 production. The IEA forecasts non-OPEC supply to grow by 1.1 million barrels a day in 2013 to a total of 54.5 million barrels a day.

Whether demand will catch up with supply in 2013 is the big question. Given the weakness in the global economy, betting that crude demand will grow and prices will rise is no better than an even-money proposition.

For a better read than the forecasts from the IEA or OPEC, it is worth paying attention to the price of gasoline at New York Harbor and to compare that to the price of Brent and to the differential between Brent and West Texas Intermediate. Then look at the futures prices and the open interest on the futures market. In the early part of this year, commodities traders and refiners were selling gasoline futures and buying crude futures following the closing of the Hess Corp. (NYSE: HES) refinery. Once the gasoline stores were determined to be sufficiently supplied, crude buying slowed and prices fell.

Filed under: 24/7 Wall St. Wire, Economy, Oil & Gas, Research Tagged: HES

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Source: FULL ARTICLE at DailyFinance