Energy Business Review: Exxon Halts Mid-East Deal, Halliburton Shifts Away from Nat Gas
In an all-cash, $270 million transaction that should close mid-year, Cameron International (NYSE:CAM) agrees to purchase the drilling equipment division of TTS Energy Division, which is owned by Norway’s TTS Group ASA. The buyer produces pressure control equipment for the energy sector.
Iraq continues to say that Exxon (NYSE:XOM) is not going ahead with work in Kurdistan. For its part, Exxon pledges not to break ground in the area until it gets approval to do so from Baghdad (which is not expected). Meanwhile, Kurdistan reported earlier in the month that the company has reaffirmed its commitment to their deal, though it has not said so publicly.
In a move that should provide more exposure in one of North Dakota’s most active shale resource sites, Magnum Hunter (NYSE:MHR) purchases certain Williston Basin oil and gas properties from Baytex Energy (NYSE:BTE) for a price tag of approximately $311 million. The buyer expects to expand its capital expenditures budget by between $75 million and $225 million, for the most part to cover the extra spending for the purchased properties.
In an earnings conference call, Halliburton (NYSE:HAL) CEO Dave Lesar detailed the one percent drop in the company’s rig count. Lesar said that the decline actually understates the ten percent shift towards oil, away from natural gas, which plays are down 19 percent due to plummeting prices. He remarked that “While these moves are beneficial to us in the long run, they do not come without a short-term impact on our margins.”.
Has Juan Peron returned? Argentina proceeds with the nationalization of a gas concern owned by Spain’s Repsol (REPYY.PK), according to a Senator of that country. The full Argentinian Senate votes on the takeover of YPF on April 25.