4 Energy Stock Stories Gaining Traction
Royal Dutch Shell (NYSE:RDSA): Closing price $65.23
Shell Chief Executive Peter Voser said it will take more time than expected for the firm to gather benefits from its shale gas projects because of poor short-term results. Disappointing domestic shale liquids output contributed to a $2.2 billion charge Shell revealed in August and was a crucial factor in its decision to abandon its goal to deliver 4 million barrels per day of production by 2017. Voser told reporters at the World Energy Congress: “We didn’t get the results which we were expecting to get in the shorter term and we will therefore have to develop this a little bit more before we can take benefits from. It was clearly not as successful as thought.”
Transocean Ltd. (NYSE:RIG): Closing price $
Transocean on Tuesday reported it won a five-year contract for a newbuild, dynamically positioned ultra-deepwater drillship by Chevron U.S.A. Inc. Shipyard delivery is set for the second quarter of 2016. Subsequent to customer acceptance, the contract should begin in the fourth quarter of 2016, contributing an estimated revenue backlog of roughly $1.1 billion, excluding mobilization. Excluding capitalized interest, the capital investment for the newbuild drillship is at an estimated $725 million.
Exxon Mobil Corp. (NYSE:XOM): Closing price $86.79
Exxon Mobil on Monday shut down an oil pipeline system at the Port of Long Beach, in California, after finding a crude leak in the area, according to a company spokesman. The THUMS oil pipeline system, which links to the firm’s refinery in Torrance, California, was taken offline “in an abundance of caution” after an oil leak was discovered in the vicinity of the system, said Exxon Mobil spokesman Aaron Stryck, who reported that the oil has been contained without quantifying the amount that was released.
Tesoro Logistics LP (NYSE:TLLP): Closing price $54.81
Tesoro said Tuesday that it will repair and replace a 200-foot section of the North Dakota pipeline that leaked 20,600 barrels of Bakken oil onto farmland in late September. The plan has been submitted and OK’d by the Department of Transportation Pipeline and Hazardous Materials Safety Administration.
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