$500M gathering project planned
An affiliate of American Energy Partners LP has entered a joint venture with Regency Energy Partners LP, which will build and operate a natural gas gathering project in Ohio. The $500 million project is being expanded by Regency and American Energy-Midstream LLC to accommodate more than 2 billion cubic feet of firm volume commitments. It includes a 52-mile trunk line capable of delivering 2.1 billion cubic feet of natural gas a day to two transmission lines. The project is expected to be completed by the third quarter of next year. Regency also will enter into a gathering agreement with American Energy-Utica LLC for gas produced in the eastern Ohio.
GE Energy, Casillas to partner
TULSA — GE Energy Financial Services has partnered with Casillas Petroleum Corp. to buy oil and natural gas reserves in southwest Kansas from Cimarex Energy Co. Terms of the deal were not disclosed. The assets include more than 500 producing wells across 14 Kansas counties. Casillas will operate the properties and serve as general partner of the partnership, with GE Energy Financial Services as the sole limited partner. “Our investment with GE allows us to grow our business through a high-upside oil and gas field acquisition, while maintaining the financial flexibility to continue to drill new wells,” Casillas President Greg Casillas said. GE Energy Financial Services has provided more than $4 billion in partnership equity for independent oil and gas companies since 1991. Its 25 partnership investments own interests in more than 3,000 wells that produce an estimated 11,000 barrels of oil equivalent daily.
TULSA — SemGroup Corp. posted a net loss of $17.6 million, or 41 cents a share, in the second quarter due to a non-cash warrant expense and a loss on the sale of a gathering system, the company reported Thursday. That compares to a profit of $3.6 million, or 8 cents a share, in the second quarter of last year. “We are pleased with the strong contribution from our new growth projects during the quarter,” CEO Carlin Conner said. “We’re on track to meet guidance for the year and continue our growth momentum with increased volumes in our crude and gas businesses in the U.S.” SemGroup will pay a quarterly cash dividend of 27 cents a share on Aug. 28.
Rose Rock Midstream LP
TULSA — Rose Rock Midstream LP on Thursday reported net income of $15.1 million, or 41 cents a common unit, for the second quarter, up from $9.1 million, or 44 cents a unit, for the same period of last year. “Rose Rock’s second quarter was all about growth,’ CEO Carlin Conner said. “We grew our business through the acquisitions of the crude oil trucking assets from Chesapeake Energy and of the remaining one-third interest in SemCrude Pipeline, which owns 51 percent of White Cliffs Pipeline, from SemGroup.” That helped Rose Rock boost its cash distribution to 53.5 cents a unit. It is the 10th straight quarter that Rose Rock has increased its distribution.
Laredo Petroleum Inc.
TULSA — Laredo Petroleum Inc. booked a net loss of $18.9 million, or 13 cents a share, in the second quarter, the company reported Thursday. The company earned $35.8 million, or 28 cents a share, in the same quarter last year. Laredo noted a $63 million loss on commodity derivatives in the just-completed quarter, which also included record production from its holdings in the Permian Basin. “Our high-quality acreage position continues to yield significant advantages as we build production corridors to support our transition into full-scale development drilling,” CEO Randy A. Foutch said. “As we accelerate drilling activities and their concentration along the corridors, we expect to realize additional capital savings per well, lower lease operating expenses and enhanced wellhead realizations.”
Panhandle Oil and Gas Inc.
Panhandle Oil and Gas Inc. on Thursday reported net income of $5.1 million, or 61 cents a share, for its fiscal third quarter. That is up slightly from $5 million, or 61 cents a share, in the same period of last year. Panhandle’s production was up 2 percent to 3.3 million cubic feet of natural gas equivalent. CEO Michael C. Coffman said the next quarter will be bolstered by Panhandle’s new assets in the Eagle Ford Shale. “And, with over 100 locations remaining to drill on the Eagle Ford acreage, these assets will continue to provide meaningful oil production for Panhandle for many years,” he said.
Compressco Midstream Partners
Compressco Midstream Partners LP nearly doubled its net income in the second quarter, the company reported Thursday. Compressco earned $4.9 million, or 30 cents a unit, for the quarter, up from $2.5 million, or 15 cents a unit, in the same period of last year. “Compressco responded to oil shale-related compression opportunities and improved natural gas prices to generate tremendous improvement in net income for the quarter, compared to the second quarter of 2013,” said Ronald J. Foster, the company’s senior vice president and chief marketing officer. “We are also pleased with the continued revenue growth in our U.S. business.”
Apco Oil and Gas International
TULSA — Apco Oil and Gas International Inc. posted net income of $7.1 million, or 24 cents a share, in the second quarter, the company announced this week. That is down from $13.5 million, or 46 cents a share, in the same period of last year. Apco said its net income dipped due to a combination of lower operating revenues, greater operating costs and expenses and lower equity income. “Our second-quarter results improved with an increase in oil price realization in Argentina,” CEO Bryan Guderian said. “We do not expect Argentina’s recent debt default to have an immediate impact on our industry. However, until the situation is resolved, it could cause further deterioration of the peso, increase inflation and impede progress toward improving the country’s economic environment.”
From Staff Reports