4 Energy Stock Stories to Spark Investment Chatter
Royal Dutch Shell (NYSE:RDSA): Closing price $65.68
Following a disappointing performance by its exploratory wells, which did not indicate sufficient potential to keep the energy major around, Shell is withdrawing from Kansas. According to The Wichita Eagle, the announcement is one more in a series of exits by major exploration firms that are abandoning the Kansas side of the Mississippian Lime foundation. Shell’s Scott Scheffler said that his company, which is selling off its 45 producing wells and 600,000 acres in nine Kansas counties, ceased drilling in July.
Petroleo Brasileiro (NYSE:PBR): Closing price $16.01
The Brazilian government intends to finance the state-run oil company’s participation in the October 21 auction of Libra, the country’s biggest-ever oil discovery, according to the Estado de S. Paulo on Saturday. Beyond that, the government is also mulling other measures to help cash-strapped Petrobras fund the large investments it is required to make in Libra under a 2010 Brazilian oil law, said Estado, citing an unnamed government source. These measures include the raising of Brazilian fuel prices, the lowering of dividends on the government’s shareholding in Petrobras, and altering the terms of a 2010 oil-for-stock swap.
Total SA (NYSE:TOT): Closing price $57.06
Europe’s No. 3 oil firm said annual output will rise in the next three years while capital expenditure peaks. Total will begin projects in Norway, Angola, and the North Sea in the near future, and will also maintain production growth targets, according to a Monday company statement. Total anticipates capital spending to fall to between $24 billion and $25 billion in 2015 to 2017, versus $28 billion to $29 billion in 2013, said Chief Financial Officer Patrick de la Chevardiere.
Statoil ASA (NYSE:STO): Closing price $22.79
Norway’s top energy company made a second natural gas find close to the Barents Sea’s Johan Castberg oilfields that failed to boost crude reserves at a project held back by growing costs and taxes. Statoil said Monday in a statement that the Iskrystall discovery may hold up to 25 million barrels of oil equivalent in gas. After the commercially nonviable Nunatak gas discovery, it marks the second of four wells to be drilled around Johan Castberg’s twin fields in an endeavor to add to the 400 million to 600 million barrels of crude in estimated reserves.
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