says only a bit over 2%. Wasn't expecting that and will get hit with a tax bill. Probabaly will sell this as well as DXGE and buy in my IRA instead.
Had a couple of upgrades on Dec 16, but now down a bit below that. I feel better about this company now that the Utica was such a success and that they are reducing capital expenditures while at the same time increasing productivity. If it goes back to the 53's then I will nibble a bit more.
HOUSTON – Global oil markets could lose as much as 7.5 million barrels of crude over the next decade if sunken oil prices stall the slate of new oil and gas projects around the world, a new report says.
In a report released Monday, Goldman Sachs estimated $930 billion in future oil investments that would bolster production through 2025 are in peril as oil prices have collapsed. That’s around 8 percent of the current global demand for crude, a sizable chunk of the worldwide supply glut that is putting enormous pricing pressure on black gold.
If prices rebound to and stay at around $70 a barrel, the cost to develop oil and gas fields will have to fall 20 to 30 percent for those projects to become profitable, and big oil companies will have to cut their capital spending by 30 percent in a bid to shore up free cash flow. It will be a painful period for oil-field service companies, the bank said.
“The environment of project deferral and cost deflation will be extremely challenging for oil service providers, especially capital-intensive companies that require high asset utilization,” including drillers and subsea construction firms, the Goldman analysts wrote.
Goldman said its analysis of the world’s 400 largest new oil and gas fields excluded shale plays. Over the next five years, $70-a-barrel oil could put a kink in 2.3 million barrels a day and cut into 3 percent of global demand.
Both the international and U.S. benchmark crude prices have fallen below $60 a barrel, down from heights above $100 a barrel earlier this year. Goldman said less than a third of pre-sanctioned oil projects at the 400 fields are profitable at current prices.
The big-oil projects that can’t make money with crude prices below $70 a barrel are in Russia, oil and wet gas fields in the Eagle Ford Shale in South Texas, marginal Gulf of Mexico projects and heavy oil efforts, according to Goldman Sachs.
over $ 2.00. The intraday low for RRC was 52.29 on Jan 13, 2012 (Note that it closed at 54.16 that day).
Now as I look today, Nat gas is $ 3.73 and we are .01 penny lower (at 52.28) than the intraday close when nat gas was only about $ 2 bucks...........and remember, RRC price closed at 54.16 the day it hit the intraday low.
CNBC: Wall Street banks backing Cheniere's big gas plans
Dec 9 2014, 11:38 ET
Even as energy markets are buffeted by unusual volatility, some of Wall Street's biggest banks are ready to write billion-dollar checks to finance Cheniere Energy's (LNG +0.4%) $15.5B Corpus Christi natural gas project on the Gulf coast, CNBC reports.The commitments could put banks including JPMorgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) on the hook if the market for liquefied natural gas goes south, according to the report.The gas terminal, now under development and expected to produce as much as 13.5M tons of liquefied natural gas starting in 2018, is now seeking $11.5B in a seven-year bank credit facility that would depend in part on the issuance of new bonds next year and the year after to repay its debt; private lenders reportedly have provided LNG with an initial $2.5B in funding to construct the terminal.
1) Isn't it true that natural gas is a by-product of shale oil drilling. So if there is reduced shale oil drilling (because price of oil has come way down), then there were be less natural gas brought to the market.
2) Because of the reduced shale oil drilling, it would seem that there would be more idle rigs and thus the rig day rates would come down. Thus it would help to reduce drilling costs.
Ok, I feel a little better now that I revisited the Sep 30, 2014 Rice Presentatiion.
Page 68 is they say they maintain an orderly Debt Maturity Ladder…….
I added yesterday at 61.97 (it was already down 2.51 from the previous day close of 64.48). That's probably the end of my adding.
Thanks oilexplore1. The last 10 days has been really ugly that it made me a bit concerned it might go insolvent.
have any thoughts on the recent RRC plunge ? SWN hasn't plunged like this. Perhaps RRC is in the doghouse because of the high debt to equity ratio ?
has been brutal lately. I feel like just the other day we were at 73 ish.
All the other oil service stocks were down earlier and NBR was green. Guess the upgrade was a bit pre-mature. I'll add a bit more if it breaks to the high 10's or low 11's. Looks like it's going to be a brutal few months.
Also BB&T or something like that, downgraded from buy to hold today. I seem to recall in the last cc that CBI said no buybacks yet, but something about revisiting the topic next quarter ??????
Didn't expect it to go up so much in a week, so I sold that block of trading shares at 15.97 a few minutes ago. Still have my base. Wohooooo, up 11 % in a week on that block. Will buy again if it goes in the low 14's.
Just sold these trading shares at 15.97. 11% gain in these shares in a week. Still have my base shares. Wohoooo !!!!