Energy Biz Replay: BioFuel Goes Into ORBIT, Hess Explains ASSET Sales
BioFuel Energy Corporation (NASDAQ:BIOF) shares increase more than 40 percent on news that the company reached a collaboration agreement with Gevo, Inc. (NASDAQ:GEVO) through which large-scale production of isobutanol will be explored. BioFuel shares had been trading at a 52-week low this week, falling some 60 percent since hitting a peak of $24.80 in Nov. 2011.
Chief executive John Hess of Hess Corporation (NYSE:HES) reports that his company has as much as $2 billion in potential asset sales “well under way”, as it attempts to maintain its spending on Bakken and Eagle Ford wells, adding that “We’re at the peak of our capex.” Hess is increasing its 2012 capital expenditure estimate by 25 percent to $8.5 billion; the CEO remarked that, “As we move forward, we expect significantly lower capital costs.”
The new Chief Executive Steve Williams of Suncor Energy, Inc. (NYSE:SU) indicates that the firm might postpone billions of dollars in projects while methods to enhance their profitability are studied. Suncor has the ability under joint venture agreements to completely withdraw from its Alberta-based projects which are estimated to cost in excess of $20 billion, he remarked, adding that, “Indications are that some of these projects are moving backwards, not forward.”
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