4 Energy Stock Stories Making It Big on Wednesday
Chesapeake Energy Corp. (NYSE:CHK): Closing price $25.99
An energy company now run by the former Chesapeake Energy Corp Chief Executive Aubrey McClendon, said Wednesday that it has come up with $1.7 billion to drill on shale acreage in Ohio’s Utica Shale. Proceeds will at first be used to purchase and drill on some 110,000 acres in the southern portion of the Utica Shale. Drilling operations will commence employing one rig in the fourth quarter, and the firm will increase drilling activity to at least 12 rigs during the next 2 to 3 years.
Petróleo Brasileiro – Petrobras (NYSE:PBR): Closing price $15.32
The Brazilian billionaire Gradin family will shell out $500 million on three offshore vessels to help the number-one deep water oil producer, Petrobras, reverse declining production at its largest production zone. GranEnergia, which is owned by the Gradin family through its GranInvestimentos holding company, already has a four-year contract with state-controlled energy giant to refurbish and repair aging platforms in the Campos Basin that provides 80 percent of Brazil’s oil, according to Miguel Gradin in an interview in Rio de Janeiro.
Apache Corp. (NYSE:APA): Closing price $85.95
Senior Vice President, Corporate Affairs Bob Dye says that Apache has given up its hunt for hydrocarbons in Kenya, a current hotspot in the race for new oil and gas deposits, after it discovered only non-commercial quantities of gas in its sole Kenyan interest. Dye said that the company was relinquishing its 50-percent stake in Kenya’s offshore L8 Block where it worked with the United Kingdom’s Tullow Oil and Australia’s Pancontinental. The executive told Reuters in an email late on Tuesday that, “We determined that other areas in our worldwide portfolio provided better opportunities for future capital investments.”
Kinder Morgan Energy Partners, L.P. (NYSE: KMP): Closing price $79.60
On Wednesday, Kinder Morgan reported it has reached an accord with a large Eagle Ford Shale producer so as to extend the Kinder Morgan Crude and Condensate pipeline farther into the Eagle Ford Shale in South Texas. KMP will spend roughly $74 million to construct an 18-mile, 24-inch diameter lateral pipeline northwest from its DeWitt Station to a new facility in Gonzales County in which the company will build 300,000 barrels of storage, a pipeline pump station, and truck offloading facilities.
The lateral will possess a capacity of 300,000 barrels per day and will allow Kinder Morgan to batch Eagle Ford crude and condensate from the new Gonzales Station by means of KMCC to its delivery points on the Houston Ship Channel and/or the soon to be finished Sweeny Lateral pipeline serving the Phillips 66 Sweeny Refinery in Brazoria County, Texas. Including joint ventures and other projects, the firm’s planned investments connected with Eagle Ford Shale crude and condensates presently amount to nearly $900 million.