Listen… can you see that? Look… can you hear it? No matter how confusing it gets, Friday always makes everyone feel safe… unless you’re on death row scheduled to be taken out by firing squad at sunrise on Saturday, then… not so much.
But the program here at “The Nightly” takes pride in being the ones you turn to to cap off your week, prime you for the weekend, and give you all the latest oil and gas news you need so you can feel confident when you throw water balloons at those who say “Friday just means it’s two days until Monday.”
I’ve never actually ever met anyone who would say something as depressing as that, but the night is young… and The Nightly is now. Here we go:
Premier Oil Lenders Agree To Refinancing Deal
UK-based independent E&P Premier Oil has reached a refinancing debt deal with its lenders that will give the troubled North Sea producer some necessary breathing room and at the same time providing lenders with “enhanced economics and certain governance controls.”
According to the Financial Times, the deal is the biggest of its kind among North Sea field operators. The deal involves a revision of the terms of Premier’s convertible bonds and new terms for its retail bonds, plus an extension of the bond maturities to 2021 at the soonest. By the end of February, the company will circulate a long-form term sheet among lenders – 40 banks account for 85 percent of Premier’s debt – for approval. The scheme needs a minimum of 75 percent of lenders to approve it. The finalization of the agreement should take place by the end of May.
Aside from all that “business” lingo– I like the use of the word “scheme”. Anything that involves 40 bank accounts, multiple bonds, and the North Sea gets a red flag in my book. All we need now is a guy named “Jersey Jake” overseeing the operation to make it 100% “legit”.But I wish Premier the best in this deal… and maybe slip a few mill my way for throwing my support behind the cause? #PalsWithPremier.
But I wish Premier the best in this deal… and maybe slip a few mill my way for throwing my support behind the cause? #PalsWithPremier
Vanguard Taps Paul Hastings In Latest Big Energy Bankruptcy
I guess the tough times aren’t over for the energy sector just yet. Houston-based oil and natural gas company Vanguard Natural Resources LLC is the latest casualty of falling commodity prices, as Vanguard filed for Chapter 11 protection in Houston yesterday. In its filing, Vanguard lists assets and liabilities each between $1 billion to $10 billion.
Um, again, I’m not the best at math, and still don’t know the best way to mix fractions and decimals and all that numbers stuff, but I do know the difference between $1 billion and $10 billion is more than a couple of Happy Meals at Burger King. “Aren’t Happy Meals at McDonalds!?” Exactly… it doesn’t make any sense.Let’s firm up the numbers Vanguard, no wonder you’re chapter 11. If you have The “Who Cares
Let’s firm up the numbers Vanguard, no wonder you’re in chapter 11. If you have The “Who Cares Corporation” doing your books, this is what happens.
Founded in 2006, Vanguard focused on the acquisition, production and development of oil and natural gas properties in the Gulf Coast, Rocky Mountains, West Texas and mid-continent regions of the U.S. In its filing, Vanguard attributed its negative earnings and liquidity to low commodity prices that have hit hard the North American oil and gas industry. I still say it’s attributed to the “Who Cares Corporation”.
While overall business bankruptcies are down from their historic peak a half-dozen years ago, since the beginning of 2015, more than 100 oil and natural gas producers in the U.S. have filed for bankruptcy and countless others have renegotiated their debts with creditors in order to stay afloat as depressed oil and gas prices threaten their operations, according to an analysis by Haynes and Boone.
Or maybe those 100 or so oil and natural gas producers used the “Who Cares Corporation” to do their books too. And maybe that’s one too many times for the “Who Cares Corp.” joke…
It’s Ambitious To Think That Oil Prices Could Reach $65: IEA
CNBC reports that according to analyst Neil Atkinson at the International Energy Agency – it is unrealistic to expect that oil will reach $65 a barrel in the near term, in spite of a recent OPEC agreement to cut oil production and boost prices.
Atkinson stands firm saying:
“I think $63, $65 (dollars a barrel for Brent) I think you might be a little bit ambitious there because the OPEC producers have got this basic issue, they don’t want the price to go too low clearly because their economies wouldn’t stand it. But if the price goes too high then that’s going to attract a lot of investments in other parts of the world, principally the U.S. shale producers.”
Great stuff Neil. Way to break new ground in all things OPEC… and by “break new ground” I mean… say “nothing new at all”.
OPEC countries reached an agreement last November to cut production by 1.2 million barrels per day to support oil prices and tackle three-consecutive years of falling investment. Experts are watching closely whether OPEC and non-OPEC members stick to their commitments. A large number of oil experts do not expect 100 percent compliance. According to Atkinson, so far, “They’re doing quite well,” he continued. “The signs are quite encouraging that production has been cut back quite significantly in January.”
One sec… let me get off the edge of my seat as I hang on Neil’s every word. I’m sorry, Neil, it’s not you… well, it is you… but it’s also that I’m from Boston originally and The Super Bowl is on Sunday… Big hugs, brother.
Well, that’s a wrap. That’s the latest. TK will crank it up Monday with a triple shot of espresso aka “The Morning Surge.”
There is a lot I could say about The Patriots vs. Falcons game Sunday… starting with take the over in the length of The National Anthem, and YES on the safety prop bet… but I’ll just say this: Pats 31 Atlanta 17 and welcome to the FOODCHAIN. Night Night.