Timothy Smith
12 years ago
Plains Exploration, has, in addition to the Eagle Ford, a presence in California, the Gulf Coast, and the Rocky Mountains. Plains has 58,000 net acres in the oil and wet gas windows of the play. Investopedia notes that Plains has set (and so far mostly met) company goals of growing total company revenue and production at double-digit rates through 2015 while growing Eagle Ford production at a compound annual rate of 52%.
Plains' financials show that as of the second quarter of 2012, quarterly revenue growth is over 10% year-over-year, total debt is $3.92 billion, and debt/equity is 104. The company has a strong $6.70 cash per share and good operating cash flow.
Plains, in addition to its oil and gas operations, has derivative assets and an investment in McMoRan Exploration (MMR) common stock, both which can significantly affect quarterly income.
Timothy Smith
12 years ago
PXP Provides Second-Quarter Operational and Financial Updates
Jul 9, 2012 5:58:00 AM
HOUSTON, July 9, 2012 /PRNewswire/ -- Plains Exploration & Production Company (NYSE:PXP) ("PXP" or the "Company") announces 2012 second quarter preliminary operational and financial results.
OPERATIONAL UPDATE
PXP's 2012 second-quarter daily sales volumes averaged approximately 98 thousand barrels of oil equivalent (BOE) per day of which oil/liquids volumes represent approximately 61% of total volumes (oil 57%, natural gas liquids 4%) and natural gas 39% of total volumes. Daily oil sales volumes increased 17% compared to first-quarter 2012.
FINANCIAL UPDATE
For the three months ended June 30, 2012, PXP expects to report an approximate $220 million pre-tax gain on mark-to-market derivative contracts of which approximately $20 million is a pre-tax realized gain, an approximate $85 million pre-tax gain on its investment in McMoRan Exploration Co. common stock, and an approximate $5 million pre-tax loss on early extinguishment of debt.
For the second-quarter 2012, Brent crude oil price averaged $108.73 per barrel. PXP's 2012 second-quarter crude oil average realized price per barrel before derivative transactions was $99.29 per barrel, or approximately 91% of Brent. Including the impact of derivative transactions, the second-quarter average realized price was $99.94 per barrel, or approximately 92% of Brent. The oil/liquids average realized price per barrel before derivative transactions, which includes 4 thousand BOE per day net to PXP of natural gas liquids, was $95.50 per barrel, or approximately 88% of Brent. Including the impact of derivative transactions, the average realized price was $96.11 per barrel, or approximately 88% of Brent.
For the second-quarter 2012, NYMEX gas price averaged $2.22 per MMbtu. PXP's 2012 second-quarter natural gas average realized price before derivative transactions was $2.18 per MMbtu, or approximately 98% of NYMEX. Including the impact of derivative transactions, the average realized price was $2.93 per MMBtu, or approximately 132% of NYMEX.
CONFERENCE CALL
PXP is scheduled to release 2012 second quarter results on Thursday, August 2, 2012, before the market opens and will host its quarterly conference call that same day, Thursday, August 2, 2012, at 8:00 a.m. Central time. Investors wishing to participate in the conference call may dial 1-800-567-9836 or 1-973-935-8460. The conference call and replay ID is: 92628335. The replay can be accessed by dialing 1-855-859-2056 or 1-404-537-3406. A live webcast of the conference call will be available in the Investor Information section of PXP's website at www.pxp.com.
PXP is an independent oil and gas company primarily engaged in the activities of acquiring, developing, exploring and producing oil and gas in California, Texas, Louisiana, and the Gulf of Mexico. PXP is headquartered in Houston, Texas.
ADDITIONAL INFORMATION & FORWARD-LOOKING STATEMENTS
This press release contains forward-looking information regarding PXP that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements included in this press release that address activities, events or developments that PXP expects, believes or anticipates will or may occur in the future are forward-looking statements. These include statements regarding:
* production estimates,
* oil and gas prices,
* the impact of derivative positions,
* future financial performance,
* capital and credit market conditions,
* planned capital expenditures, and
* other matters that are discussed in PXP's filings with the SEC.
These statements are based on our current expectations and projections about future events and involve known and unknown risks, uncertainties, and other factors that may cause our actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements. Please refer to our filings with the SEC, including our Form 10-K, for a discussion of these risks.
All forward-looking statements in this press release are made as of the date hereof, and you should not place undue reliance on these statements without also considering the risks and uncertainties associated with these statements and our business that are discussed in this press release and our other filings with the SEC. Moreover, although we believe the expectations reflected in the forward-looking statements are based upon reasonable assumptions, we can give no assurance that we will attain these expectations or that any deviations will not be material. Except as required by law, we do not intend to update these forward-looking statements and information.
SOURCE Plains Exploration & Production Company
OilStockReport
13 years ago
Could become a buying op here.
Plains' US deep sale delayed
Plains Exploration & Production said the planned sale of its deep-water properties in the Gulf of Mexico would be delayed as it failed to get the right value for them because of the prevailing tough regulatory environment, sending its shares down 6%.
News wires 24 March 2011 14:19 GMT
The Houston-based oil and gas company is looking to shift away from offshore operations to onshore fields due to the proposed wave of regulations following the oil spill in the US Gulf.
"To date, the deepwater separation process reflects a discounted value due to the current regulatory uncertainties, permit delays, and reduced activity for Gulf of Mexico exploration and development," chief executive James Flores said today.
The company intends to sell its Friesian and Lucius oil discoveries, and interests in 107 blocks, 9 well-defined prospects and an additional 22 prospects or leads in Pliocene, Miocene and Lower Tertiary reservoirs in the US Gulf.
"We believe it is prudent to allow time for the regulatory uncertainties to abate and to complete the Lucius well test.
OilStockReport
13 years ago
Plains Exploration and Production (NYSE:PXP) transitioned in 2010 towards becoming an onshore exploration and production company focused on oil and natural gas liquids development, as the company moved to monetize its Gulf of Mexico assets.
Strategic Review
In August 2010, Plains Exploration and Production announced a "strategic alternatives process" of its properties in the Gulf of Mexico. The goal was to reduce exposure to this basin and secure between $1 and $2 billion in value from here through divestitures or joint ventures.
As a result of this strategic review, Plains Exploration and Production announced the sale of its shallow water Gulf of Mexico assets to McMoRan Exploration (NYSE:MMR) for a combination of $818 million in cash and stock. The deal was structured by Plains Exploration and Production so that the company could participate in any exploration and development success by the buyer.
Plains Exploration and Production is also marketing its deepwater properties in the Gulf of Mexico. These properties include the company's 33.3% interest in the Lucius project operated by Anadarko Petroleum (NYSE:APC). Another attractive property owned by Plains Exploration and Production in the deepwater Gulf of Mexico is the Friesian project. Plains Exploration and Production has interests in 107 deepwater blocks and expects a deal to be announced in the first half of 2011.
Shift to Oil
Plains Exploration and Production has shifted the focus of its capital plan towards oil and liquids development over the last few years. The company spent only 7% of its total capital budget on the development of oil assets in 2009, and plans to increase this percentage to 54% in 2011. These funds will be spent mostly in the Eagle Ford Shale, Granite Wash and in various basins in California.
Eagle Ford Shale
In 2010, Plains Exploration and Production bought into the Eagle Ford Shale in 2010, acquiring 60,000 net acres for $578 million in cash. The company plans to put 23% of its 2011 capital budget into this play, where the company has its own operated acreage and is also involved in a joint venture with EOG Resources (NYSE:EOG).
Granite Wash
Plains Exploration and Production has 19,100 net acres exposed to the Granite Wash formation. The company spent $105 million and spud 20 wells here in 2010. Wells here produce a mix of natural gas, oil and natural gas liquids.
California
Plains Exploration and Production has a large base of operations in California, where the company has 215 million barrels of oil equivalent (BOE) of proved reserves. Plains Exploration and Production spent $166 million in capital here in 2010, and plans to spend $271 million in 2011, or 23% of its total capital budget. The company also plans to drill some exploratory wells into the Monterey Shale in 2011 on its acreage in California.
The Bottom Line
In 2010, Plains Exploration and Production moved towards diversifying its assets in the Gulf of Mexico. With the company now spread among several U.S. oil and liquid developments, 2011 will determine the wisdom of these decisions. (To learn more, see our Oil And Gas Industry Primer.)
OilStockReport
13 years ago
PXP is increasing its portfolio nicely. This acquisition from HUSA is a smart play on both ends since HUSA needs development capital and PXP is positioned to do quite a bit more with these SoTx assets.
HOUSTON, Nov. 16, 2010 /PRNewswire-FirstCall/ -- Plains Exploration & Production Company (NYSE: PXP) announces it has closed the previously announced acquisitions of oil and gas properties in the Eagle Ford oil and gas condensate windows in South Texas, subject to customary post closing adjustments.
PXP is an independent oil and gas company primarily engaged in the activities of acquiring, developing, exploring and producing oil and gas in California, Texas, Louisiana and the Gulf of Mexico. PXP is headquartered in Houston, Texas.
OilStockReport
13 years ago
Operations are strong and getting stronger for 2011 IMO.
OPERATIONAL UPDATE
* Average daily sales volumes for the third quarter 2010 were 90.6 thousand BOE, or 9% higher than the 83.0 thousand BOE in the third quarter 2009. Fourth-quarter 2010 average daily sales volumes are expected to be in line with third quarter volumes reflecting the impact of the Gulf of Mexico shelf asset sale, downtime on certain California and Texas assets and the previously announced repair work following a fire at the Madden Field in Wyoming.
* In the Texas Panhandle Granite Wash development, PXP is currently operating 5 rigs drilling horizontal wells to develop its inventory of over 150 potential locations. PXP plans to spud up to 20 horizontal wells in 2010 and over 25 wells in 2011. Four wells have been drilled, completed and are producing and 4 wells are waiting on completion.
Initial production rates for the two most recent completions are 10.4 million cubic feet per day with 344 barrels of condensate per day and an estimated 1,076 barrels of natural gas liquids per day (2,528 BOE net per day) for the Hanson 29-2H well, and 8.2 million cubic feet per day with 358 barrels of condensate per day and an estimated 773 barrels of natural gas liquids per day (1,993 BOE net per day) for the Sanders 74-1H well.
* In the Haynesville Shale, third quarter 2010 average daily sales volumes were 129 million cubic feet equivalent (MMcfe) per day net to PXP, an approximate 22% increase over the 106 MMcfe net per day average rate for the second quarter of 2010. With interests in 45 active drilling rigs, production from this asset area is expected to exceed 135 MMcfe net per day in the fourth quarter 2010.
* In California, PXP drilled 22 wells in the San Joaquin Valley and 8 wells in the Los Angeles Basin during the third quarter and expects to drill up to 16 wells in the San Joaquin Valley and up to 9 wells in the Los Angeles Basin during the fourth quarter.
* In the South Texas Eagle Ford, the previously announced acquisition is on track for a November closing. Currently, four rigs are operating on the properties and 20 gross wells have been drilled, completed or are producing. Once closed, PXP will have a net acreage position of approximately 60,000 acres, an estimated 140 to 175 million BOEs of net resource potential and approximately 500 net well locations. This asset area is poised to be a significant driver of future production and reserve growth for PXP.
* On September 19, 2010, PXP, together with certain of its subsidiaries, entered into an agreement with McMoRan Exploration Co. (MMR) and certain of its subsidiaries to divest our interest in properties located in the Gulf of Mexico shallow water for a combination of cash and stock. PXP will receive $75 million in cash and 51 million shares of MMR common stock in exchange for its interest in all of its Gulf of Mexico leasehold located in less than 500 feet of water. The transaction is subject to customary closing conditions and adjustments and the approval of MMR's stockholders. The transaction will have an effective date of August 1, 2010 and is expected to close by year-end 2010.
* On September 20, 2010, PXP announced that the data room process for the planned Gulf of Mexico deepwater divestment was underway. PXP expects to set an early December bid date and close the transaction by year-end 2010 or early 2011.
Picassa
15 years ago
Soros Buys 5.4% of Plains Exploration
FORMER HIGHFLYER Plains Exploration & Production (ticker: PXP) is one stock that has run out of gas as energy prices pulled back. However, the oil and natural-gas exploration company has a new investor in billionaire George Soros who has scooped up nearly 6.5 million of the downtrodden shares in 2009.
On May 4 Soros's fund, Soros Fund Management, disclosed it now owns 6,467,400 million shares, or a 5.4% stake in the Houston-based Plains Exploration.
Picassa
15 years ago
Derivatives
In the first quarter of 2009, we monetized our 2009 and 2010 crude oil put option contracts on 40,000 BOPD.
As a result, we received $389 million in net proceeds on February 20, 2009 and will receive approximately $711 million in net proceeds in March 2009, which we will use to reduce the outstanding balance on our senior revolving credit facility.
We currently are party to crude oil put option contracts on 32,500 BOPD in 2009 and 40,000 BOPD in 2010.
These put options have a strike price of $55 per barrel. Additionally, we are party to natural gas $10 by $20 collars on 150,000 MMbtu in 2009 and natural gas three way collars on 40,000 million British thermal units (MMbtu) per day for 2010.
Under the later arrangement, if the index price is below the floor price of $6.25 per MMbtu, we receive the difference between $6.25 and the index price up to a maximum of $1.45 per MMbtu.
If the index price is greater than the ceiling price of $8.00 per MMbtu, we pay the difference between the index price and $8.00 per MMbtu.
http://biz.yahoo.com/e/090226/pxp10-k.html
Picassa
15 years ago
Plains E&P: Plenty More to Pump
We are maintaining our Buy recommendation on Plains Exploration and Production (NYSE: PXP - News), but are decreasing our target price from $91.00 to $55.00 per share.
The credit crunch and soft commodity environment has been detrimental to E&P players stock prices, as the industry has slid more than 50% YTD. However, after its Piceance/Permian Basin asset divestiture, PXP will enter 2009 with $1.3 billion of liquidity, strong production growth from its Texas, Flatrock and Haynesville assets and a very favorable hedging program securing more than 80% of its production.
We believe that the slowing economy story has been priced into the stock and as such, there is much more upside potential than downside.
Picassa
16 years ago
PXP Announces 2008 Second Quarter Earnings of $203 Million or $1.84 Per Diluted Share Representing a 701% Gain Over Same Period in 2007
Please click here for PDF version of this release.
HOUSTON, Aug. 5 /PRNewswire-FirstCall/ -- Plains Exploration & Production Company (NYSE: PXP) ("PXP" or the "Company") today announced financial and operating results for the second quarter 2008.
Highlights:
-- Net income increased to $202.9 million in the second quarter 2008 from
$25.3 million in the second quarter 2007.
-- Operating cash flow was $450.3 million in the second quarter 2008
compared to $111.0 million in the second quarter 2007 (a non-GAAP
measure).
-- Second quarter 2008 oil and gas sales volumes averaged 87.5 thousand
barrels of oil equivalent per day (BOEPD) reflecting the previously
announced asset divestitures which closed in February 2008. Sales
volumes averaged 91.6 thousand BOEPD for the first six months of 2008.
PXP expects sales volumes to average between 92 and 96 thousand BOEPD
for the year-ended 2008 and is currently producing within that range.
Flatrock and other growth initiatives are expected to contribute to
sales volume growth throughout the year.
-- Positive drilling results at Flatrock which has four successful wells
to date and two producing wells with approximately 30 million cubic
feet equivalent per day (MMCFED) net to PXP:
- Flatrock No. 2 well commenced production on July 6, 2008. Gross
production currently approximates 102 MMCFED, 23 MMCFED net to PXP.
- Flatrock No. 3 well logged deeper pay in May 2008. In total, the well
encountered 256 feet of net pay. First production is expected in the
third quarter of 2008.
- Flatrock No. 4 development well logged 116 net feet of pay in June
2008 and is drilling below 16,800 feet to proposed total depth of
18,500 feet.
- Flatrock No. 5 well commenced on July 1, 2008 and is currently
drilling below 9,700 feet to proposed total depth of 18,400 feet.
- Flatrock No. 6 well is expected to commence drilling in the second
half of 2008.
-- South Timbalier Block 168 ultra-deep exploratory well has been drilled
to 32,550 feet and is being evaluated.
-- Fredericksburg exploratory prospect, operated by Shell and located on
Desoto Canyon Block 486, is currently drilling with results expected in
the third quarter.
-- Friesian #2 well, operated by PXP and located on Green Canyon Block
643, has a rig on location running anchors, with drilling results
expected in the fourth quarter.
-- Positive drilling results continue from the Texas Panhandle development
program. We began the year producing 6,500 BOEPD and are currently
producing approximately 7,600 BOEPD. These production gains are
primarily coming from the Courson Ranch and Marvin Lakes areas. We are
having better-than-expected results from vertical wells targeting the
Mississippian St. Louis formation and horizontal wells targeting the
Cleveland formation. Additionally, wells in the Marvin Lakes area
targeting the Granite Wash and Atoka Wash formations, where we have a
significant inventory of future drilling locations, are contributing to
these positive results.
-- Acquired a 20% interest in Chesapeake Energy's 550,000 acre leasehold
position in the Haynesville Shale, 110,000 acres net to PXP, for $1.65
billion. In addition, PXP has agreed to fund 50% of Chesapeake's 80%
share of drilling and completion costs for future Haynesville Shale JV
wells over a several year period until an additional $1.65 billion has
been paid. This applies to less than 10% of the estimated 6,800
potential future drilling locations. PXP expects average drilling and
completion costs of $1.25 per MCFE and total finding and development
costs of $1.83 per MCFE. Drilling operations are underway with 6 rigs
running and a total of 30 rigs expected by year-end 2009. Production
contribution is expected in the fourth quarter 2008.
-- Closed the Piceance Basin acquisition in June 2008, expanding an
existing PXP growth area by adding approximately 11,000 acres adjacent
to our existing position and increasing our overall Piceance drilling
inventory to over 3,600 potential well locations. Production from the
Piceance Basin properties has increased 155% to 27.5 MMCF per
day in the second quarter of 2008 compared to 10.8 MMCF per day in the
second quarter 2007. There are 6 rigs running and a total of 7 rigs
expected by year-end 2008.
-- Received Santa Barbara County Planning Commission approval of the
Tranquillon Ridge project in April, one of the necessary government
approvals. PXP is currently working to secure approval from the
California State Lands Commission.
-- In Vietnam we contracted a rig to drill our first well mid-year 2009.
-- Increased PXP's commodity price protection by acquiring incremental
derivatives on a significant portion of 2008, 2009 and 2010 production
volumes with over $100 crude oil floors and $10 by $20 natural gas
collars.
Picassa
16 years ago
PXP Announces $1.25 Billion Divestiture of Permian and Piceance Basin Properties
HOUSTON, Sept. 25 /PRNewswire-FirstCall/ -- Plains Exploration & Production Company (NYSE: PXP) ("PXP" or the "Company") announced today it has executed a definitive purchase and sale agreement to sell its interests in oil and gas properties located in the Permian and Piceance Basins for $1.25 billion to Occidental Petroleum Corporation (NYSE: OXY).
"Pursuant to our commitment to strengthen PXP's financial profile, this transaction increases the Company's oil weighting for both reserves and production for 2009 and protects a significant portion of our remaining production with our superior hedge put position insuring positive cash flow even in a lower commodity price environment. Additionally, this transaction reduces our corporate debt by at least $1 billion and enables us to lower our projected 2009 capital expenditures to $1.35 billion plus have a pro forma target compounded annual production growth rate in excess of 15% for 2008-2012," commented Mr. James C. Flores, Chairman, President and Chief Executive Officer of PXP.
"This divestment facilitates PXP's rotation from assets with moderate growth and challenging differentials to the unparalleled high growth Haynesville Shale play which is proving to have stronger operating metrics and growth attributes with higher wellhead realizations. PXP has a 20% interest in Chesapeake's as reported 550,000 acre leasehold position holding an estimated 40 trillion cubic feet equivalent of gross un-risked resource potential. With an expanding drilling program and production beginning in the fourth quarter of this year, the Haynesville Shale will become a key driver to our production and reserve growth for most of the next decade while bolstering our return on investment. The Company's core assets remain our strong California oil production, Texas and Gulf Coast gas assets, long-life Madden field, dynamic Haynesville Shale play and high-impact exploration in the Gulf of Mexico, Offshore California and Vietnam.
"The refocusing of our asset base will increase our high margin, oil weighting and will target a strong organic production growth rate while remaining fiscally disciplined and preserving commodity price upside for our stakeholders," commented Mr. Flores.
The properties to be sold generate sales volumes net to PXP of approximately 13,000 barrels of oil equivalent per day and had approximately 92 million barrels of oil equivalent proved reserves net to PXP as of December 31, 2007. Pro forma for this transaction, PXP's oil and gas mix for 2009 estimated production will increase to 56% oil and to 70% oil for estimated year-end 2008 reserves while on average 75% of our 2009 and 2010 estimated oil production is protected with floors above $100 and approximately 85% of our estimated natural gas production through year-end 2009 is protected with either physical purchases used in our operations or $10 by $20 collars.
The transaction effective date is December 1, 2008 and is expected to close during the fourth quarter 2008 subject to customary closing conditions and adjustments. J.P. Morgan Securities Inc., Banc of America Securities LLC and Barclays Capital Inc. acted as financial advisors to PXP on this transaction.
OUTLOOK
PXP plans to update full-year 2008 operating and financial guidance and provide full-year 2009 operating and financial guidance on November 6, 2008 when third quarter earnings are released.
PXP is an independent oil and gas company primarily engaged in the activities of acquiring, developing, exploring and producing oil and gas in California, Texas, Louisiana and the Gulf of Mexico. PXP is headquartered in Houston, Texas.
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