• 1 day U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 1 day Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 2 days Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 2 days Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 2 days Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 2 days TransCanada Boasts Long-Term Commitments For Keystone XL
  • 2 days Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 2 days Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 2 days Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 3 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 3 days Venezuelan Output Drops To 28-Year Low In 2017
  • 3 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 3 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 3 days Kinder Morgan Delays Trans Mountain Launch Again
  • 3 days Shell Inks Another Solar Deal
  • 4 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 4 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 4 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 4 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 4 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 4 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 4 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 4 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 4 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 4 days Norway Grants Record 75 New Offshore Exploration Leases
  • 5 days China’s Growing Appetite For Renewables
  • 5 days Chevron To Resume Drilling In Kurdistan
  • 5 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 5 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 5 days Nigeria Among Worst Performers In Electricity Supply
  • 5 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 5 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 6 days Saudis To Award Nuclear Power Contracts In December
  • 6 days Shell Approves Its First North Sea Oil Project In Six Years
  • 6 days China Unlikely To Maintain Record Oil Product Exports
  • 6 days Australia Solar Power Additions Hit Record In 2017
  • 6 days Morocco Prepares $4.6B Gas Project Tender
  • 6 days Iranian Oil Tanker Sinks After Second Explosion
  • 8 days Russia To Discuss Possible Exit From OPEC Deal
  • 8 days Iranian Oil Tanker Drifts Into Japanese Waters As Fires Rage On
New Importers Keep LNG Markets Tight

New Importers Keep LNG Markets Tight

While increased LNG demand from…

U.S. Oil Drillers Raise $28B From Stock Offerings So Far In 2016

Anadarko rig

U.S. oil drillers have reaped a combined US$28 billion from secondary stock offerings so far this year, as they are buying land and raising capital for M&A, fuelfix reported on Tuesday.

The capital that the drilling companies have raised from investors via more than 60 secondary stock offerings is second only to real estate investment trusts (REITs).

Anadarko Petroleum Corporation (NYSE:APC) has raised the highest single amount of cash from a stock offering this year, fuelfix’s Collin Eaton writes.

In its third-quarter results release last month, Anadarko said that it had completed successfully a US$2.16-billion equity offering during the quarter, and had around US$4 billion of cash on hand at the end of September. Anadarko said it planned to use some US$1.8 billion of the cash to fund its US$2 billion acquisition of a deepwater Gulf of Mexico property.

One of the latest public offerings was that of Rice Energy (NYSE:RICE), which completed its offering in October, raising around US$1.2 billion in net proceeds.

According to fuelfix, in the second half of this year alone, U.S. drillers have attracted US$14.6 billion in proceeds from secondary stock offerings, most of which is set to be used to buy land in the Permian in West Texas, in Oklahoma’s STACK and SCOOP plays, and in the Appalachian region.

The Permian, for example, has remained profitable even with the sub-$50 oil price, and is experiencing a true land rush as companies are trying to snatch acreages there while halting projects elsewhere.

At oil prices at around US$50 next year, U.S. companies are seen boosting spending by 37 percent, fuelfix quoted Simmons & Company International analyst Pearce Hammond as saying. However, such crude oil price is contingent on whether OPEC can pull off a deal to limit global crude supply, and if it somehow manages to clinch a production deal, U.S. drillers could be “off to the races”, Hammond told fuelfix.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News