| | | El Paso Pipeline Partners, LP (EPB), Frank's International (FI), JX Holdings (5020),
Kinder Morgan Energy Partners, LP (KMP), Petrobras (PBR), Precision Drilling Corporation(PDS),
Woodside Petroleum (WPL.AX / WPL AU)
El Paso Pipeline Partners, LP (EPB)
EPB Stays on Budget; Future LNG Export
Projects or KMP Combo May Drive Upside
17 July 2014 sendspace.com
Frank's International (FI)
Still Earning Their Stripes
17 July 2014 sendspace.com
JX Holdings (5020)
Alert: Announces US carbon capture/oil recovery project
15 July 2014 ¦ 7 pages ir.citi.com
Conclusions – On July 15 JX Holdings announced the start of a project to boost
crude oil output using CO2 coal-fired thermal power plant emissions. This should
prove fairly positive for the share price given that the company’s direct investment is
expected to be around ¥30bn, the project is factored into the medium-term
management plan announced last year, and the expected projected return (IRR) is
at least 10%. We intend to keep an eye on whether the project proceeds as
planned.
Details – The project entails first constructing a CO2 capture facility (the world’s
largest) at a coal-fired thermal power plant in Texas. The captured CO2 will then be
compressed and injected into the West Ranch oil field (also in Texas, located
around 130km southwest of the power plant) to help boost oil production to
12,000bbl/day from the current 500bbl/day. The aim is to increase output by a total
of 60mn bbl over around 10 years. The start of commercial operation at the capture
facility is slated for Q4 2016. A company formed in equal partnership with a major
US power company will run the project. The project will also reduce CO2 emissions
by 1.6mn MT annually.
Investment amount – The total expected investment is around $1bn. JX Holdings’
direct investment will be $290mn (around ¥30bn) given that the US Department of
Energy will provide a $167mn subsidy and $250mn will be raised by project
financing. No breakdown was provided, but we expect spending related to CO2
capture facility construction, increased oil field output, and obtaining oil field rights.
Expertise – JX Holdings has experience gained from a similar initiative at the Rang
Dong oil field in Vietnam. There is some risk that the investment amount or margins
will change, but we think the business risk is relatively minor given that the
technology is already established and the company has relevant experience
JX Holdings (5020) — Nikkei report on hydrogen station plans
16 July 2014 ¦ 7 pages ir.citi.com
On July 16, the Nikkei reported that JX Holdings aims to set up 100 hydrogen
stations in Japan by FY3/19. Nationwide, there are plans to open 100 stations by
FY3/16 and 1,000 stations by 2025. JX Holdings already planned to open 40
stations by FY3/16. If the report is accurate, we expect the number of hydrogen
stations operated by JX Holdings to increase to 100 in three years from FY3/17.
Takashi Miyazaki | Takayuki Naito
Kinder Morgan Energy Partners, LP (KMP)
Rising Backlog & Nat Gas Commitments; Trim
2017E on TransMountain Delay; Raise TP to $92
17 July 2014 sendspace.com
Petrobras (PBR)
The PN-ON spread
16 July 2014 sendspace.com
Precision Drilling Corporation(PDS)
Entering the Big Leagues
16 July 2014 sendspace.com
Woodside Petroleum (WPL.AX / WPL AU)
Operational performance remains strong
17 July 2014 sendspace.com |
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