| | | Cabot Oil & Gas Corp (COG). EnCana Corp (ECA), Noble Energy Inc (NBL),
Senex Energy Limited (SXY.AX), XOM/ROS Target Monster of the North,
Cabot Oil & Gas Corp (COG)
Q2’14 Wrap-Up: Growth Outlook Still On Track For Now
25 July 2014 ¦ 19 pages ir.citi.com
Q2’14 Bottom Line — As outlined in our ‘ Results’ note yesterday, Cabot’s Q2’14
production came in below expectations due to third-party gathering issues while
much lower-than-projected non-cash DD&A more than offset higher transportation,
gathering and G&A expenses. Natural gas price realizations were in line.
EnCana Corp (ECA)
Q2’14 Wrap-Up: Portfolio Restructuring Will Likely Continue With
An Oily Acquisition More Likely
25 July 2014 ¦ 15 pages ir.citi.com
Q2’14 Bottom Line – As outlined in our 'Results' note yesterday, Encana reported
lower-than-expected Q2’14 bottom-line results due lower-than-forecast natural gas
price realizations and natural gas production as well as higher-than-expected per-
unit transportation and DD&A expenses.
Noble Energy Inc (NBL)
Q2’14 Wrap-Up: Infrastructure Issues Temper Near-Term Outlook
25 July 2014 ¦ 18 pages ir.citi.com
Q2'14 Bottom Line – As outlined in our ‘Results’ note this morning, Noble reported
better-than-expected Q2’14 bottom-line results despite total production coming in at
the low-end of guidance but with non-cash Exploration Expense and per-unit DD&A
along with aggregate G&A below our projections.
Senex Energy Limited (SXY.AX)
Reserves growth, update on growth assets in August
28 July 2014 ¦ 12 pages ir.citi.com
XOM/ROS Target Monster of the North
‘University’ in Russian Arctic is Once-In-Generation Exploration
28 July 2014 ¦ 14 pages ir.citi.com
Big Oil is not normally geared to exploration, unless the targets are very big.
Unusually 2014 sees two such wells. The first, Dilolo, is currently drilling for
STO/TOT in the Kwanza Basin. The second, and likely much bigger well, is about
to start for XOM/ROS in the Russian Arctic Kara Sea, a virtual exploration
frontier, unexplored due to the cost of working in a remote environment that has
ice present for much of the year. The well carries a lot of risk (we estimate 1 in 5
chance of economic success) especially around whether there is enough liquids
(versus gas), but in a liquids-rich success-case could be worth $6–$18bn to XOM
(+2%-6% of 2013A capital employed) and $12-$36bn to ROS (+6%-18% of
2013A capital employed). Well results are expected by early October.
Alastair R Syme | Ronald Paul Smith | Fernando Valle | Alexander Bespalov, CFA
Rosneft (ROSN.MM)
Results: Results In-Line; Call Focuses On Horizontal Drilling,
Offshore, On-Shore, And Gas Production Growth
25 July 2014 ¦ 8 pages ir.citi.com
Rosneft’s 2Q14 numbers were largely in-line with Citi and Street expectations.
On the call management gave significant detail on production plans for a number
of significant fields, including a potential 140kbd increase at YuganskNG and
start-up and peak production data for the fields in the Vankor Cluster. Horizontal
drilling should continue to ramp up, having partially contributed to the overall
drop in meters drilled in 1H13, although management expects a 2H revival in
drilling volumes. Offshore, ExxonMobil’s West Alpha rig has crossed into Russian
waters and will begin drilling in the Kara Sea by mid-August. In Russia’s Far
East, production at the offshore N.Chaivo and Arkutun-Dagi fields off of Sakhalin
should see first production later this year. Unfortunately, while the detail on
Rosneft’s production plans was material, in the current environment of elevated
geopolitical risk we think the market is unlikely to give the company much credit
for it.
Ronald Paul Smith | Alexander Bespalov, CFA |
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