Gulfport Energy increases acreage
Gulfport Energy reported in July that it has increased its acreage position in Ohio’s Utica Shale play by adding 8,000 acres, bringing its leasehold to 145,000 gross acres.
It will fund the acquisition with cash on hand. The company also reported that it has started flowing product produced in the Utica to sales pipelines.
Range Resources increases production
FORT WORTH, TEXAS
Range Resources reported a second-quarter production increase of 27 percent in July.
Production volumes reached a record high of 910 million cubic feet per day. Production was 79 percent natural gas, 15 percent natural-gas liquids and 6 percent crude oil and condensate.
Compared with the prior-year quarter, oil and condensate production increased by 39 percent, NGL production rose 35 percent and natural-gas production increased 24 percent.
The company’s second-quarter success was largely driven by its drilling program in Pennsylvania’s Marcellus Shale play.
Halliburton profit drops 8 percent
Halliburton’s second-quarter profit dropped 8 percent, hurt by a decline in North American revenue, but it edged out Wall Street expectations.
Halliburton helps other companies produce oil and natural gas both offshore and on land. In the past several quarters, domestic oil drilling has hit levels not seen in more than two decades, but a glut of natural gas has hurt that side of the energy business. Its stock has risen sharply this year on growth in international revenue and expectations of more drilling and better pricing and profit margins in North America.
For the quarter ended June 30, Halliburton’s net income totaled $679 million, or 73 cents per share. A year ago, earnings were $737 million, or 79 cents per share.
Consol drills well in Devonian shale
Consol Energy has drilled its first successful natural-gas well in the upper Devonian shale formation in Cannonsburg, Pa.
The company drilled in the Burkett formation, the deepest of various Devonian shales, which are above both the Utica and the Marcellus.
The well was drilled to a depth of 12,490 feet. Little is known about how the Devonian will produce, but more operators are beginning to target it.
BP earnings miss expectations
UK oil company BP reported a worse-than-expected second-quarter net profit of $2 billion as lower oil prices, higher taxes and a drop in income from its operations in Russia took their toll on the company.
The net profit, although up from a loss of $1.5 billion in the same period of last year, missed analyst expectations of $2.56 billion, according to Factset.
BP PLC also made more provisions for the 2010 oil spill in the Gulf of Mexico, increasing the total by about $200 million to $42.4 billion. Of those total provisions set aside, $9.6 billion were earmarked to settle damage claims, an increase of $1.4 billion.
Hess selling its energy marketing business
Hess corp. announced an agreement with Direct Energy to sell its energy marketing business for more than $1 billion.
The energy marketing business supplies natural gas and electricity to 23,000 commercial, industrial and small- business customers in the eastern half of the United States.
The transaction is part of the previously announced plan for Hess to exit the entirety of its downstream business as it transforms into a pure play exploration and production company with a portfolio of focused, high growth and lower risk assets. The sale of energy marketing, along with the sales of four producing assets earlier this year, brings total year-to-date divestitures to $4.5 billion.
Hess has used the proceeds from its previously completed asset sales to repay $2.4 billion of debt.