Energy Business Recap: Iranian Oil Embargo, Natural Gas Excesses

Hess (NYSE:HES) raises its capital-spending target to $6.8 billion for the year. Almost all of the cash is tagged for exploration and production. Hopefully that will generate long-term growth for shareholders.

Cabot Oil & Gas (NYSE:COG) CEO Dan Dinges’ response to “continued misinformation around our pricing” hasn’t stopped the decreasing in shares of the natural gas producer a day after sustaining an 11% drop. Commodity prices are lower than desired. However, the Marcellus project still has a significant rate of return “around 55%-60% before hedges,” according to the Chief Executive Officer.

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Goodrich Petroleum’s (NYSE:GDP) pipes are full and it is just flaring gas off as it drills for oil. “Nearly all United States gas drilling is uneconomic,” says Jon Wolff, expecting significant declines in production this year. “The market needs a rest,” says Chesapeake Energy Corporation (NYSE:CHK) CEO Aubrey McClendon. Natural gas continues to slide today amongst abundant supplies and a mild winter.

European Union members planned embargo of Iranian oil is likely due to be delayed six months and crude futures have fallen to $100.08/barrel which is down 0.8%, reports Bloomberg.

Atwood Oceanics (NYSE:ATW), an offshore drilling company is being pressured to sell after acknowledging the selling of $450 million worth of 6% notes due in 2020. It intends to use the proceeds to reduce borrowings made under an existing credit facility.

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To contact the editor responsible for this story: Damien Hoffman at