COVID Market Update
More oil and gas companies reported their quarterly financials this week, and it's more of the same unfavorable news as the companies struggle to churn profits or at a minimum, beat analyst expectations as oil prices continue range-bound at sub-$40 levels.
- First on our list is Texas-based shale driller Diamondback Energy (FANG.O), which reported its third quarterly loss this week. Its Q3 production was 287,315 boe/d, with total equivalent prices averaging a disappointing $26.75 per barrel. Diamondback reported a net loss of $1.11 billion in the quarter, after taking a $1.45 billion impairment charge.
- Next up, Oklahoma-based WPX Energy, which will soon be taken over by Devon Energy, reported a loss as well, of $148 million, largely as a result of a $110 million net loss on derivatives.
- Houston-based EOG Resources also posted a quarterly loss for the quarter, of $42 million. This compares with a profit of $615 million for Q3 2019.
- Shell (RDS.A) has announced that it would begin the process of shutting down its large 211,000 barrel Convent refinery in Louisiana within the next week or so after failing to find any interested takers. Other majors have shut down refineries as well. Shell will continue its search for a buyer. The divestment of this refinery is part of the company’s plan to rid itself of eight refineries over the next five years--keeping only those that have integrated oil refineries and chemical plants.…