Energy Business Recap: ConocoPhillips LOVES Chinese Shale, Transocean LOSES IN Brazil
Chesapeake Energy Corporation (NYSE:CHK) will receive an additional $6.9 billion, when proceeds of its current divestiture of the majority of its Permian assets, along with other properties, come through. One part of the proceeds will be used in repayment of $4 billion in term loans during the fourth quarter. Chief Executive Aubrey McClendon says that this sale brings the year-to-date sales to $11.6 billion, and he expects that his firm will reach its full-year goal of between $13 billion and $14 billion.
Don’t Miss: Brazil to Transocean: Pay Up or Shut Up.
Shares of Teekay Offshore Partners L.P. (NYSE:TOO) tumble on the news that the company is offering some 7 million of its common units, representing limited partner interests. The net proceeds will be used to partially fund the Voyageur Spirit FPSO that Teekay agreed to purchase from Teekay Corp.
The most recent overseas oil company to show some interest in Chinese shale is ConocoPhillips (NYSE:COP), which indicates that not only are Chinese oil companies jumping into North American shale gas, but the reverse is more and more true. Just this week, China is offering 20 blocks in a shale gas tender, which marks the first time that foreign firms will be permitted to participate in joint venture bids as minority partners.
Chief Executive Steven Norman of Transocean Ltd. (NYSE:RIG) reported that a Brazilian court has upheld a decision that would prevent it from operating in that country, in which it generates 11 percent of its revenue. Newman had maintained confidence the ban would be overturned, and now calls it “kind of a worst-case scenario,” and said that his company’s rigs likely would have to stop generating revenue as it fights the court decision.
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