Latest news with #AnadarkoPetroleum
Reuters
6 days ago
- Business
- Reuters
Sierra Leone aims to be West Africa's newest oil and gas exploration frontier
CAPE TOWN, June 26 (Reuters) - Sierra Leone will wait for the results of a recently-launched offshore 3D seismic survey, its first in over a decade, ahead of potentially opening its next oil and gas licensing round later this year, a senior government official said on Thursday. In partnership with the government's petroleum directorate, consultancy GeoPartners started the six-week seismic survey last month as part of efforts to de-risk exploration in Sierra Leone's offshore basin. "The reprocessing of that data is happening now with our multi-client partners, TGS, and we are hoping to get something to push to the market in October," Foday Mansaray, director general at the Sierra Leone Petroleum Directorate said of a potential licensing launch date. He said the West African country, where the then Anadarko Petroleum and Russia's Lukoil previously discovered oil but not in commercial quantities, could potentially offer up to 60 offshore blocks in its sixth oil and gas auction round. The previous round concluded in 2023. However, the new blocks are unlikely to include ultra-deep areas that are ordinarily open for direct negotiations, he said. Sierra Leone has an estimated 30 billion barrels of oil equivalent recoverable offshore, Mansaray said, including the large Vega prospect identified by Anadarko previously, which has some 3 billion barrels of oil recoverable. Situated along the Atlantic seaboard and between regional oil-producing countries, such as Ivory Coast to the south and Senegal to the north, Sierra Leone is keen to boost its credentials as an emerging exploration frontier. Over the past 18 months, Shell (SHEL.L), opens new tab, Petrobras ( opens new tab, Hess (HES.N), opens new tab and Murphy Oil (MUR.N), opens new tab have purchased some of its licensed data, Mansaray said. Using Namibia and Guyana as examples of how exploration has boomed in those countries following years of inactivity, he said Sierra Leone could be on the verge of a breakthrough. "I firmly believe that Sierra Leone is on the cusp of something big and we are going to be one of the next big and successful stories."
Yahoo
19-06-2025
- Business
- Yahoo
The $54 Billion Asset Wall Street Ignores.
Introduction: A Legacy of Patient Capital Founded in 1920, Occidental Petroleum (NYSE:OXY) has steadily built a formidable position in the Permian Basin through patient, disciplined capital allocation, underscored by strategic acquisitions supported notably by Berkshire Hathaway. With Anadarko Petroleum acquired in 2019 and CrownRock more recently, Occidental now holds extensive acreage in the Delaware sub-basin, famous for its multiple, deeper, highly productive geological layers. Warning! GuruFocus has detected 6 Warning Sign with FANG. The company's position today is rooted in legacy assets that stretch back decades. The acquisition of Anadarko brought more than 6,000 wells, many drilled into only a subset of the available zones. Occidental now controls an estimated 20,000 producing wells and holds thousands of permitted or identified drilling locations, including underdeveloped zones left untouched by prior operators. As disclosed in its Q1 2025 investor presentation, Occidental estimates it has approximately 18,000 future drilling locationsrepresenting a decades-long inventory of high-quality wells. What Are We Buying? Investing in an exploration and production (E&P) company means buying two things: current productionrepresented by existing wellsand the potential for future production, which in Occidental's case includes a vast backlog of undeveloped drilling locations. Occidental dramatically reduces capital expenditure by drilling new wells on long-depreciated sites. Much of its acreage is held by production (HBP), and many leases were originally granted on legacy federal terms that include a 12.5% royalty ratewell below current Permian norms. Recent legislation has increased federal royalty minimums to 16.67%, while some New Mexico state leases in premium zones now demand up to 25%. This means Occidental avoids paying an additional 412.5% per barrel in royalties relative to new entrantsequating to a $3$9 per barrel advantage at $70 oil and materially enhancing the net present value of each new well. The recycling of infrastructureroads, water systems, and drilling padsminimizes the need for costly surface development and accelerates returns on new production. In 2024, Occidental drilled 550 new wells and allocated $2.8 billion to that activity, representing only the portion of total capex dedicated to well development. This results in a per-well cost of approximately $5.09 million.: Occidental further benefits from its strategy of increasing pad density by adding new wells to existing sites. This approach spreads fixed costsleases, compressors, oil-handling infrastructureacross more output and enhances late-life economics as operating costs replace capital expenditure as the dominant cost category. Furthermore, the fixed and substantial costs required to return each site to its original stateknown as plugging and abandonment liabilitiesare also spread across more wells. This means Occidental's wells are not only cheaper to drill and operate, but also cheaper to shut in, even though they tend to recover their investment more quickly thanks to higher early production. Occidental also benefits from its leadership in CO? injection for enhanced oil recovery. It is by far the largest operator in the U.S. in this field, injecting roughly 2.6 billion cubic feet per day. Because current legislationspecifically the Inflation Reduction Act of 2022awards tax credits for CO? sequestration, Occidental's dominance in this area results in lower effective tax rates, further strengthening its cash generation. These benefits are not yet fully visible in the earnings statement, as the credits only began scaling significantly in 2023 and continue to ramp up in 2024 and beyond. The inventory of 18,000 locations represents a $54 billion hidden asset when considering Occidental's $3 million per-well cost advantage across 18.000 wells. It is capital efficiencyearned through years of disciplined developmentthat now sets the company apart. In addition to being cheaper to drill, Occidental's wells are also more productive initially. The same Q1 2025 presentation shows that Occidental leads the industry in first-year production per well. Because its pay zones are deeper, reservoir pressure is greater, and wells yield more upfront. This means capital is returned more quicklya vital advantage in a volatile commodity market. What Are We Paying? Despite its structural advantages, Occidental trades at a lower valuation than many of its peers. Its price-to-free-cash-flow ratio and market cap per barrel of daily production are both below average: This means investors today are paying nothing for Occidental's hidden assetsits inventory of long-depreciated pads that can be revisited at low cost, or its leadership in CO? injection, which materially lowers its tax rate. These advantages enhance both return on capital and capital efficiency but the market gives Occidental no credit for them. Margin of Safety: Getting More for Less Occidental is not simply a low-cost operatorit is a low-cost operator with a long runway of growth, significant tax advantages, and industry-leading productivity. Yet it trades at a lower price-to-free-cash-flow multiple and market cap per BOE than many peers. That gapbetween what you're buying and what you're payingis what value investing is all about. A Long View: Who Is Buying? Some of the most patient and respected value investors in the world have built stakes in Occidental. Berkshire Hathaway continues to add to its position. Other shareholders include Francis Chou (Trades, Portfolio), Bruce Berkowitz (Trades, Portfolio), and Prem Watsa (Trades, Portfolio)figures known for their focus on long-duration compounders. These investors are not reacting to next week's rig count. They're not looking for a quarterly popthey're buying long-term optionality backed by physical resources and long-cycle infrastructure. They are allocating capital based on decades-long advantages in geology, tax structure, infrastructure, and cost discipline. Their involvement provides a final vote of confidence in Occidental's long-term value proposition. Risks and Resilience One long-term risk to oil producers is a structural decline in demandso-called "peak oil." Occidental is better positioned than most for such a scenario, thanks to its small market share. Even if global oil demand falls 50% by 2040, Occidental can still grow by displacing higher-cost barrels, particularly in industrial, chemical, and fertilizer markets that remain oil- and gas-dependent. Geopolitical risks are also relatively muted. Occidental's operations are concentrated in the United Statesmainly Texas and Oklahoma. These regions offer robust physical security and minimal risk of activism or expropriation. These regions are socially and politically aligned with energy development, making them inhospitable terrain for activists to disrupt. Finally, while Occidental carries significant debt, it has successfully pushed most maturities out beyond the near term. This reduces refinancing risk and gives management the flexibility to prioritize long-term capital allocation over short-term market volatility. Sources and Methodology Occidental Petroleum 2024 10-K Diamondback Energy 2024 10-K EOG Resources 2024 10-K Pioneer Natural Resources 2023 10-K Occidental Q1 2025 Investor Presentation Estimated CO? tax credit benefit ($1.20 per barrel) based on current legislation (~$60 per metric ton CO?). Typical well NPV ($12 million) sourced from TGS Weekly Spotlight This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-06-2025
- Business
- Yahoo
The $54 Billion Asset Wall Street Ignores.
Introduction: A Legacy of Patient Capital Founded in 1920, Occidental Petroleum (NYSE:OXY) has steadily built a formidable position in the Permian Basin through patient, disciplined capital allocation, underscored by strategic acquisitions supported notably by Berkshire Hathaway. With Anadarko Petroleum acquired in 2019 and CrownRock more recently, Occidental now holds extensive acreage in the Delaware sub-basin, famous for its multiple, deeper, highly productive geological layers. Warning! GuruFocus has detected 6 Warning Sign with FANG. The company's position today is rooted in legacy assets that stretch back decades. The acquisition of Anadarko brought more than 6,000 wells, many drilled into only a subset of the available zones. Occidental now controls an estimated 20,000 producing wells and holds thousands of permitted or identified drilling locations, including underdeveloped zones left untouched by prior operators. As disclosed in its Q1 2025 investor presentation, Occidental estimates it has approximately 18,000 future drilling locationsrepresenting a decades-long inventory of high-quality wells. What Are We Buying? Investing in an exploration and production (E&P) company means buying two things: current productionrepresented by existing wellsand the potential for future production, which in Occidental's case includes a vast backlog of undeveloped drilling locations. Occidental dramatically reduces capital expenditure by drilling new wells on long-depreciated sites. Much of its acreage is held by production (HBP), and many leases were originally granted on legacy federal terms that include a 12.5% royalty ratewell below current Permian norms. Recent legislation has increased federal royalty minimums to 16.67%, while some New Mexico state leases in premium zones now demand up to 25%. This means Occidental avoids paying an additional 412.5% per barrel in royalties relative to new entrantsequating to a $3$9 per barrel advantage at $70 oil and materially enhancing the net present value of each new well. The recycling of infrastructureroads, water systems, and drilling padsminimizes the need for costly surface development and accelerates returns on new production. In 2024, Occidental drilled 550 new wells and allocated $2.8 billion to that activity, representing only the portion of total capex dedicated to well development. This results in a per-well cost of approximately $5.09 million.: Occidental further benefits from its strategy of increasing pad density by adding new wells to existing sites. This approach spreads fixed costsleases, compressors, oil-handling infrastructureacross more output and enhances late-life economics as operating costs replace capital expenditure as the dominant cost category. Furthermore, the fixed and substantial costs required to return each site to its original stateknown as plugging and abandonment liabilitiesare also spread across more wells. This means Occidental's wells are not only cheaper to drill and operate, but also cheaper to shut in, even though they tend to recover their investment more quickly thanks to higher early production. Occidental also benefits from its leadership in CO? injection for enhanced oil recovery. It is by far the largest operator in the U.S. in this field, injecting roughly 2.6 billion cubic feet per day. Because current legislationspecifically the Inflation Reduction Act of 2022awards tax credits for CO? sequestration, Occidental's dominance in this area results in lower effective tax rates, further strengthening its cash generation. These benefits are not yet fully visible in the earnings statement, as the credits only began scaling significantly in 2023 and continue to ramp up in 2024 and beyond. The inventory of 18,000 locations represents a $54 billion hidden asset when considering Occidental's $3 million per-well cost advantage across 18.000 wells. It is capital efficiencyearned through years of disciplined developmentthat now sets the company apart. In addition to being cheaper to drill, Occidental's wells are also more productive initially. The same Q1 2025 presentation shows that Occidental leads the industry in first-year production per well. Because its pay zones are deeper, reservoir pressure is greater, and wells yield more upfront. This means capital is returned more quicklya vital advantage in a volatile commodity market. What Are We Paying? Despite its structural advantages, Occidental trades at a lower valuation than many of its peers. Its price-to-free-cash-flow ratio and market cap per barrel of daily production are both below average: This means investors today are paying nothing for Occidental's hidden assetsits inventory of long-depreciated pads that can be revisited at low cost, or its leadership in CO? injection, which materially lowers its tax rate. These advantages enhance both return on capital and capital efficiency but the market gives Occidental no credit for them. Margin of Safety: Getting More for Less Occidental is not simply a low-cost operatorit is a low-cost operator with a long runway of growth, significant tax advantages, and industry-leading productivity. Yet it trades at a lower price-to-free-cash-flow multiple and market cap per BOE than many peers. That gapbetween what you're buying and what you're payingis what value investing is all about. A Long View: Who Is Buying? Some of the most patient and respected value investors in the world have built stakes in Occidental. Berkshire Hathaway continues to add to its position. Other shareholders include Francis Chou (Trades, Portfolio), Bruce Berkowitz (Trades, Portfolio), and Prem Watsa (Trades, Portfolio)figures known for their focus on long-duration compounders. These investors are not reacting to next week's rig count. They're not looking for a quarterly popthey're buying long-term optionality backed by physical resources and long-cycle infrastructure. They are allocating capital based on decades-long advantages in geology, tax structure, infrastructure, and cost discipline. Their involvement provides a final vote of confidence in Occidental's long-term value proposition. Risks and Resilience One long-term risk to oil producers is a structural decline in demandso-called "peak oil." Occidental is better positioned than most for such a scenario, thanks to its small market share. Even if global oil demand falls 50% by 2040, Occidental can still grow by displacing higher-cost barrels, particularly in industrial, chemical, and fertilizer markets that remain oil- and gas-dependent. Geopolitical risks are also relatively muted. Occidental's operations are concentrated in the United Statesmainly Texas and Oklahoma. These regions offer robust physical security and minimal risk of activism or expropriation. These regions are socially and politically aligned with energy development, making them inhospitable terrain for activists to disrupt. Finally, while Occidental carries significant debt, it has successfully pushed most maturities out beyond the near term. This reduces refinancing risk and gives management the flexibility to prioritize long-term capital allocation over short-term market volatility. Sources and Methodology Occidental Petroleum 2024 10-K Diamondback Energy 2024 10-K EOG Resources 2024 10-K Pioneer Natural Resources 2023 10-K Occidental Q1 2025 Investor Presentation Estimated CO? tax credit benefit ($1.20 per barrel) based on current legislation (~$60 per metric ton CO?). Typical well NPV ($12 million) sourced from TGS Weekly Spotlight This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mirror
01-06-2025
- Daily Mirror
Five disturbing details missing from Netflix's Chris Watts murder documentary
Netflix documentary American Murder: The Family Next Door tells the real-life story of how one man brutally murdered his wife and children, before dumping their bodies in the most callous way. However, some key details were omitted Netflix is known for its regularly updated stream of gripping and shocking true crime content, but one documentary remains one of the most horrifying. Viewers were left so deeply disturbed by Netflix documentary American Murder: The Family Next Door, they were 'sick to their stomach' when it was first added to the streaming platform. The show told the story of a father who brutally murdered his pregnant wife and children. On August 13, 2018, Chris Watts, 35, strangled his pregnant wife, Shanann Watts, 34, to death and then killed his two daughters, Bella, four, and Celeste, three, in Colorado, where the family lived. Shanann's body was found on property owned by Anadarko Petroleum, one of the US's largest oil and gas drillers in Colorado, where Watts worked as an operator. Investigators found the bodies of Bella and Celeste nearby in an oil tank. Watts pleaded guilty to nine charges, including murder and the unlawful termination of a pregnancy. He is currently serving a life sentence without parole in Wisconsin. The Netflix documentary, which was aired in 2020, followed the tragic turn of events. From showing how Chris and Shannan met and began their romance to the aftermath of her and their daughters' murder, the documentary also used real-life footage to bring Watts' crimes to life. As seen on the doc, he eventually confessed to the triple murder, but some details from the story were omitted. Here, the Mirror looks at the five chilling details that were missing from the documentary, as reported by US news site 1. 'Evil' mother-in-law Shannan isn't thought to have had a good relationship with Chris Watts' parents and branded her mother-in-law, Cindy Watts, "evil". She believed Cindy endangered their youngest daughter, Celeste, by serving her ice cream with peanut chips, despite her severe nut allergy, Daily Mail reported. 'You should call your dad and tell him you did not appreciate your mom putting your daughter at risk today,' she told her husband in a furious message. 'She's evil and willing to risk your daughter's life just to get under my skin.' Tensions escalated to the point where Watts' parents reportedly blocked Shanann on Facebook and skipped Celeste's birthday party entirely. They hadn't even attended their son's wedding. As the doc showed, devastated Cindy vowed in court to continue to support her son despite his despicable crimes, which included the deaths of his young daughters. 2. Marriage obsession American Murder: The Family Next Door depicted Watts as having an affair with coworker Nichol Kessinger, but it didn't reveal that the illicit romance was a full-blown relationship and Kessinger had hopes of marrying Watts, reports Daily Mail. Just nine days before the murders, on August 4, 2018, Kessinger searched Google for over two hours, looking at wedding dresses. She also browsed topics related to 'marrying your mistress,' according to Business Insider. After discovering Watts had lied to her, Kessinger is said to have later filed to change her name in Jefferson County, Colorado. 3. Alleged affairs Amanda McMahon claimed she had a one-night stand with Watts in March 2018 after meeting him on Tinder. 'It got really fast and aggressive,' she said of the encounter. She told the police that she had to physically fight Watts off her after he turned violent, putting his hands around her throat and trying to initiate anal sex despite her reluctance. He also reportedly revealed details of his "rape fantasy" to her in extreme detail. And a few months after the murders, The Mirror spoke to the gay escort Trent Bolte, who claimed he had a 10-month affair with Watts in 2018. However, Watts denied any involvement. 'I've never been with a guy,' he told police. 4. Female prison visitor According to an 'Inmate Visitation History' document dated January 6, 2020, a woman named Anna Nowak was approved to see Watts and made 31 visits between March and December 2019. The document shows that she was once turned away after exceeding the maximum visits for a single day. 5. Plans for romantic getaway The documentary hinted at marriage troubles - using Shanann's own text messages, but she also made serious efforts to save the relationship - because she loved her husband and she didn't want a broken home for her two daughters who doted on their father, The Daily Mail reported that the unsuspecting spouse was looking for travel deals on Groupon and had also arranged childcare for Bella and Celeste so she and her future killer could holiday together. To the outside world, the Watts looked like any family next door - a loving couple and two adorable children living a happy, normal life together. But behind closed doors, it was a very different and horrifying story.
