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Woodside Approves $17.5 Billion Louisiana Lng Development
World Oil
Woodside Approves $17.5 Billion Louisiana Lng DevelopmentWoodside has made a final investment decision to develop the three-train, 16.5 million tonne per annum (MMtpa) Louisiana LNG development. Woodside is targeting first LNG in 2029. Development of Louisiana LNG will position Woodside to deliver approximately 24 Mtpa from its global LNG portfolio in the 2030s, and operating over 5% of global LNG supply.1 The development has expansion capacity for two additional LNG trains and is fully permitted for a total capacity of 27.6 Mtpa. At full capacity, the foundation project is expected to generate approximately $2 billion of annual net operating cash in the 2030s. It will drive Woodside’s next chapter of value creation, giving the company’s global portfolio the potential to generate over $8 billion of annual net operating cash in the 2030s.2 The forecast total capital expenditure for the LNG project, pipeline and management reserve is US$17.5 billion (100%).3 Stonepeak, as an investor in Louisiana LNG Infrastructure LLC, will provide $5.7 billion towards the expected capital expenditure for the LNG project on an accelerated basis, contributing 75% of capital expenditure in both 2025 and 2026.4 Woodside’s share of forecast total capital expenditure is $11.8 billion. “Louisiana LNG is a game-changer for Woodside, set to position our company as a global LNG powerhouse and enable us to deliver enduring shareholder returns,” said Meg O’Neill, CEO of Woodside. “This world-class project is a compelling and de-risked investment. It leverages Woodside’s proven strengths in project execution, operational excellence, marketing and customer relationships to offer significant cash generation and drive long-term shareholder value. “Adding Louisiana LNG to our established Australian LNG business provides Woodside with a balanced and resilient portfolio, combining long-life, flexible LNG assets with high-return oil assets," O'Neill continued. “The project benefits from access to abundant low-cost gas resources in the United States and boasts an asset lifespan of more than 40 years. It also has access to well-established interstate and intrastate gas supply networks. “The marketing opportunities Louisiana LNG offers across the Pacific and Atlantic Basins leverages Woodside’s proven LNG marketing capabilities and complements our established position in Asia. This will position Woodside to even better serve global customers and meet growing energy demand. “This supply can target strong and sustained demand for LNG expected in both Asia and Europe, as those markets pursue energy security and decarbonization aspirations. “As the largest single foreign direct investment in Louisiana’s history, Louisiana LNG will also be the first greenfield U.S. LNG project to go to final investment decision since July 2023. References: 1 Source: Wood Mackenzie.2 At Woodside’s current equity interest of 100% in HoldCo (and assumes completion of the asset swap transaction between Woodside and Chevron - refer to announcement titled ‘Woodside simplifies portfolio and unlocks long-term value’ announced 19 December 2024. Completion of the transaction is expected to occur in 2026).3 Louisiana LNG project cost is $15.9 billion, or $960/tonne, and includes EPC, owner’s cost and contingency costs. Pipeline cost is $1.1 billion. Management reserve contains allowances for tariffs and business unit costs.4 See “Woodside announces Louisiana LNG partnership with Stonepeak” announced 7 April 2025 for details. Completion of the transaction is expected to occur in the second quarter of 2025.
oil-gas
Apr 29, 2025
Flotek Acquires Profrac Power Generation Assets For $105 Million
World Oil
Flotek Acquires Profrac Power Generation Assets For $105 MillionFlotek has acquired power generation assets and related intellectual property from ProFrac GDM, a subsidiary of ProFrac, for $105 million. Flotek concurrently entered into an agreement for a six-year dry lease of the acquired assets with ProFrac GDM. The acquired assets include digitally enhanced mobile natural gas conditioning and distribution units providing real-time gas monitoring and dual fuel optimization for remote, behind-the-meter power generation with applications across multiple markets. With this acquisition, Flotek will leverage its real-time measurement technology to treat and optimize fuels used in remote power generation applications. The lease agreement provides for fixed rates during the first five years, and prevailing market rates during the sixth year. Twenty-two assets will be placed into rental service immediately and 8 additional units are expected to be added throughout the second half of 2025. "We are pleased to announce these transformative agreements, providing us with an entry point to the rapidly growing mobile power generation sector,” said Ryan Ezell, Flotek's Chief Executive Officer. “Our innovative, real-time measurement technologies are integrated into the acquired assets, safeguarding critical power generation fleets and measuring fuels for custody transfer. Importantly, we believe these transactions provide stable cash flow attributable to our high-growth Data Analytics segment and will be accretive to our shareholders while honoring our commitment to maintaining a low leverage profile." "These transactions represent an evolutionary step forward in our business relationship with Flotek," said Matt Wilks, Executive Chairman of ProFrac. "By leveraging cutting-edge intellectual property, these asset integrity management solutions provide industry-leading gas quality assurance capabilities to customers while providing a platform for future growth as we partner with Flotek to explore applications of this technology across other industry verticals. Importantly, these transactions strengthen our financial flexibility and our ability to optimally manage our purchase obligations under the Chemicals Supply Agreement in place with Flotek."
oil-gas
Apr 28, 2025
Upstream M&A Reached $17 Billion In Q1 2025, Enverus Says
World Oil
Upstream M&A Reached $17 Billion In Q1 2025, Enverus SaysEnverus Intelligence Research (EIR), a subsidiary of Enverus, is releasing its summary of 1Q2025 upstream M&A activity and outlook for the rest of the year. The M&A summary follows Enverus' release of Investor Analytics, a new cutting-edge solution designed to offer investors a comprehensive view of key market dynamics. Upstream M&A opened 2025 with $17 billion in deal value, the second-best start to a year since 2018. However, activity was disproportionately driven by one company, Diamondback Energy. Buyers were already feeling the pressure of limited acquisition opportunities and high asking prices for undeveloped drilling inventory. "Upstream deal markets are heading into the most challenging conditions we have seen since the first half of 2020. High asset prices and limited opportunities are colliding with weakening crude," said Andrew Dittmar, principal analyst at EIR. "Potential sellers are acutely aware of the scarcity of high-quality shale inventory, creating a reluctance to unload their assets at a discount. Buyers on the other hand were already stretched by M&A valuations and can't afford to continue to pay recent prices now that oil prices are lower." Prior to OPEC and tariffs creating waves in oil markets, pricing for quality shale inventory was a perpetually rising tide. Diamondback set a record in the Permian Basin with its acquisition of Double Eagle IV. The private equity sponsored E&P was able to garner such a large premium for its land because high consolidation over the last few years has left few attractive private companies for the public E&Ps to target. A potential bright spot for M&A is natural gas with significant interest in adding assets with access to Gulf Coast markets from multiple buyer groups, including international buyers and private capital. While near-term gas prices are also being challenged in the broad market selloff, future prices still look strong with a secular shift in demand from liquified natural gas export facilities and secondary demand from datacenters Using Enverus newest AI tool, Investor Analytics, to summarize comments about M&A markets from management teams in recent earnings calls reveals companies were already concerned about the asking prices for deals and available opportunities. "Volatility and lower prices make deals tough right now but will create opportunities for nimble buyers with a longer-term outlook," said Dittmar.
oil-gas
Apr 25, 2025
Liberty Energy Sees U.S. Oil Activity Holding Firm With Prices Above $60
World Oil
Liberty Energy Sees U.S. Oil Activity Holding Firm With Prices Above $60(Bloomberg) – Liberty Energy Inc., one of the biggest U.S. fracing companies, expects most producers to stick with their production plans as long as crude prices can hang on near current levels.  “If oil stayed in the low $60s, well, that’s not an exciting environment for us by any stretch of the imagination,” Liberty Chief Executive Officer Ron Gusek said during a call with analysts Thursday. “At most we probably feel modest ripples in activity levels.” If US oil futures dip into the $50s, however, companies are apt to start dropping drilling rigs, Gusek said. But it was premature, he said, to forecast how much production would slow.  West Texas Intermediate rose 3% Thursday to $64.54 a barrel.  Liberty, formerly run by U.S. Energy Secretary Chris Wright, is the first large oil-service company to report earnings since crude prices began plunging in the wake of U.S. President Donald Trump’s trade war and OPEC’s decision to raise a planned production increase later this year. The rout has hammered oil companies’ share prices and threatened to undermine drillers’ plans to modestly increase U.S. production this year. Denver-based Liberty has been among the hardest-hit companies, with its shares down about 20% since Trump announced the tariffs earlier this month. The stock surged as much as 13% Thursday after the company reported higher-than-expected first-quarter sales. The company’s crews are currently working to hold production flat, Gusek said. Despite the recent volatility, he doesn’t expect oil and gas companies to make any sudden changes to their drilling plans.  “It’s unlikely that we’re going to have any of our customers remove a pad in the next month or two,” Gusek said. “It’s my expectation that to the extent we do see some changes, that’s going to be back half of the year.”
oil-gas
Apr 17, 2025
Noia Voices Support For Burgum'S Pause Of U.S. Offshore Wind Project
World Oil
Noia Voices Support For Burgum'S Pause Of U.S. Offshore Wind ProjectNational Ocean Industries Association President Erik Milito issued the following statement after Secretary of the Interior Doug Burgum halted construction activities of the Empire Wind offshore wind project and ordered a review of both existing and pending offshore wind permits:"NOIA fully supports the President and Secretary Burgum’s energy dominance objectives. Our industry is committed to advancing an energy dominant future that strengthens economic growth, environmental stewardship, and national security for the benefit of all Americans. NOIA members along the Gulf Coast and nationwide, many of whom are integral to the offshore wind supply chain, bring extensive expertise in engineering, designing, constructing, and operating offshore oil, gas, wind, and emerging energy projects. Decades of experience ensures these industries coexist seamlessly with vital marine activities, including fishing, military operations, tourism, and maritime commerce."We are committed to working closely and expeditiously with federal agencies, stakeholders, and the administration to quickly resolve any concerns and deliver energy solutions that align with national priorities."
oil-gas
Apr 16, 2025
Haynesville Natural Gas Market Will Shift Amid Price Volatility, Enverus Says
World Oil
Haynesville Natural Gas Market Will Shift Amid Price Volatility, Enverus SaysEnverus Intelligence¼ Research (EIR) is releasing a series of reports focused on its Haynesville growth forecast including natural gas production, operational efficiencies and Henry Hub basis fluctuations amid high price volatility. According to EIR, the high volatility in natural gas prices expected at East Texas hubs served by Haynesville production is driven by timing mismatches related to gas supply, pipeline development and LNG export demand. Over the next decade, the Haynesville is anticipated to experience underutilized pipeline capacity, according to EIR reports. “Operator guidance and a minimal increase in drilling activity in the Haynesville has driven a downgrade for our 2025 and 2026 production outlook,” said Alex Ljubojevic, director at EIR. Jason Feit, an adviser at EIR added, “Gas producers and consumers should expect volatile prices at key trading hubs in Texas over the next few years as new pipelines come onstream and alter supply-demand dynamics. Prices at the Katy and Carthage trading points should stabilize in 2028 and beyond but expect a bumpy ride until then.” “There could be as much as 6 Bcf/d of underutilized pipeline capacity over the next decade in the Haynesville. Legacy pipelines and those lacking LNG access face the most challenges,” Feit said. Key takeaways from the report:
oil-gas
Apr 16, 2025
Vista Buys Petronas' Argentina Oil Stake In $1.5 Billion Deal
World Oil
Vista Buys Petronas' Argentina Oil Stake In $1.5 Billion DealVista Energy has acquired Petronas' 50% stake in the Vaca Muerta shale basin in a deal valued at $1.5 billion USD. Vista estimates that the area, known as La Amarga Chica (LACh) could potentially hold 400 new well locations to be drilled in its inventory (at 100% working interest). The remaining 50% of LACh is held by operator YPF S.A. The purchase price is comprised of US$ 900 million in cash, US$ 300 million in deferred cash payments and 7,297,507 American Depositary Shares. LACh spans across 46,594 acres in the black oil window of Vaca Muerta. As of December 31, 2024, it had 247 wells on production. In addition, as of December 31, 2023, LACh had 280 million barrels of oil equivalent (MMboe) of P1 reserves according to the Argentine Secretary of Energy (at 100% working interest). During the fourth quarter of 2024, LACh produced 79,543 barrels of oil equivalent per day (boed) at 100% working interest, of which 71,471 barrels per day (bpd) were oil, according to the Argentine Secretary of Energy. Vista estimates LACh could potentially hold 400 new well locations to be drilled in its inventory (at 100% working interest). The remaining 50% of LACh is held by operator YPF S.A. “With this acquisition we gain significant scale in Vaca Muerta with a premium block that has growing production and low operating costs, enabling the acceleration of our long-term plan and strengthening our free-cashflow profile,” said Miguel Galuccio, Vista’s Chairman and CEO. “The acquisition both increases our profitability and enhances our portfolio of ready-to-drill locations in the core area of Vaca Muerta. Importantly, in the current global macro and oil price environment we are consolidating a high- margin, low- breakeven asset, with strong synergies with our ongoing operation, reflecting our constructive long-term view on crude oil demand and supply dynamics. I firmly believe this represents a unique opportunity to create long-term value for our shareholders.” Images: YPF
oil-gas
Apr 16, 2025
Liberty Energy’S Profits Sink To Three-Year Low As Oil Prices Drop
World Oil
Liberty Energy’S Profits Sink To Three-Year Low As Oil Prices Drop(Bloomberg) -- Shale fracing major Liberty Energy Inc., formerly run by U.S. Energy Secretary Chris Wright, posted its worst earnings in three years amid plunging oil prices and mounting concerns about energy demand. Adjusted first-quarter profit fell to 4 cents a share, according to a statement Wednesday, for the worst result since early 2022. The figure matched the average estimate among analysts. Liberty’s broad footprint across North American shale provides it a unique scope of vision for domestic oil-production trends. The Denver-based oilfield contractor has tumbled 46% this year as U.S. President Donald Trump’s trade war punished crude prices and tarnished the outlook for near-term fossil-fuel demand. Liberty is the first major U.S.-based oil-service company to post quarterly results, with rival Halliburton Co. set to follow Tuesday morning.
oil-gas
Apr 16, 2025
Iraq To Cut Oil Exports Amid Opec+ Pressure To Comply With Production Limits
World Oil
Iraq To Cut Oil Exports Amid Opec+ Pressure To Comply With Production Limits(Bloomberg) – Iraq plans to cut oil exports next month as OPEC+ presses members to adhere to production targets, according to an official with knowledge of the matter. OPEC’s second-largest producer aims to reduce shipments by roughly 100,000 barrels a day to an average of 3.2 million barrels a day in May, the official said, asking not to be identified as the figures aren’t public.  The Organization of the Petroleum Exporting Countries and its partners announced last month they would gradually start reviving production halted two years ago, but sought to offset the increases by insisting on better discipline from quota-violators. Iraq, along with some other members of the OPEC+ alliance, is under pressure from the group’s leaders to make extra supply curbs as compensation for overproducing during the past year. OPEC+ uses oil production rather than exports to measure compliance with its targets. Iraq’s output was about 90,000 barrels a day more than its target last month, according to figures used by OPEC+, while estimates from the International Energy Agency put the figure at more than 300,000 barrels a day above its quota.  While Iraq’s export reduction may indicate it has correspondingly curbed production, an associated drop isn’t guaranteed. The country has in the past often promised quota adherence and then failed to deliver. Baghdad has long chafed against OPEC+ output limits, as it seeks to rebuild its economy and trading relationships after decades of sanctions and conflict. The country would need an oil price of $92 a barrel in order to cover government spending this year, according to the International Monetary Fund. Brent crude futures are trading near $65. Oil has tumbled this year, dropping sharply the past two weeks as US President Donald Trump’s sweeping tariffs upended global markets. The lower price puts particular pressure on Middle Eastern economies that are dependent on oil. Iraq, especially, needs higher prices to support spending as it rebuilds an economy weakened by years of war. Data from OPEC+ released on Wednesday showed that Iraq made some notional progress with its compensation backlog last month, while Kazakhstan — the group’s biggest offender — instead overshot its limits even more starkly.
oil-gas
Apr 16, 2025
Bp'S Strategy Reset Is Shaky As Trade War Continues, Oil Prices Drop
World Oil
Bp'S Strategy Reset Is Shaky As Trade War Continues, Oil Prices Drop(Bloomberg) – BP Plc’s big strategy reset is less than two months old, but the foundations of the company’s pivot back to oil are already starting to look shaky.  After years of under-performance, the struggling major made a series of financial pledges in February intended to assure investors that dividends and share buybacks — a core part of the industry’s appeal — would be secure for years to come.  Yet one key requirement in targets for boosting cash flow and improving returns was an oil price of $70 a barrel. Brent crude, the international benchmark, plunged below that level last week after U.S. President Donald Trump launched his trade war and OPEC+ agreed to raise production by more than expected. Oil is near $64 a barrel in London and influential forecasters say this price, or even lower, could be the new normal for markets this year and next.  “They’re facing an environment where oil prices look skewed to the downside,” said Morningstar analyst Allen Good. While peers such as Shell Plc look well placed to withstand a slump, bp is “in a particularly precarious position.” bp sells more than just crude oil, and its targets are also based on prices of natural gas and refined fuels that have seen less price volatility than Brent, but the financial impact of recent market gyrations is large. By the company’s own estimates, each $1 drop in oil prices wipes an estimated $340 million from pretax profit. Analysts are questioning whether the company can maintain share buybacks, while a prolonged oil industry slump would complicate its plan to curb debt with $20 billion of asset sales.  Meanwhile, activist investor Elliott Investment Management remains among the company’s largest shareholders, pressing management to make bolder changes. A spokesperson for Elliott declined to comment.
oil-gas
Apr 16, 2025