... Investments Company Name Relationship Type Primary Industry Last Investment Date LTM Total Rev. ($mm) LFQ Total Assets ($mm) LFQ Total Debt ($mm) Period End Date Cuadrilla Resources Holding Limited Pending Acquisition/Investment Oil and Gas Exploration and Production Feb-16-2010 - - - - Website: There is no website for this company Business Description: Cuadrilla Resources Holding Limited operates as an oil and gas exploration and production company. The company was founded in 2007 and is based in the United Kingdom. Investment Coverage: - Relationship with Investor/Parent: Total Investment ($mm): - Expected Exit Date: - Percent Owned (%): - Return on Investment (%): - Controlling Interest: - Investor Notes: - Transactions: Date: Feb-16-2010 Type: Private Placement Size ($mm): 58.00 Status: Announced Eagle Energy, LLC Pending Acquisition/Investment Electric Utilities Dec-21-2009 - - - - Website: www.eagleenergyllc.com Business Description: Eagle Energy, LLC provides alternative energy supply, and electricity and natural gas consulting and aggregation services to commercial, industrial, and governmental entities. The company also offers energy aggregation for communities. It has operations in Connecticut, Delaware, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, Virginia, and Washington DC. Eagle Energy, LLC has a strategic...
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...Economic Profile on the Oil and Gas Industry The oil and gas industry is one of the most talked about industries today, at least in my town it is. Everywhere I go I hear people talking about the rise or fall in gas prices or how the cost of a barrel of crude oil has just gone up or down .10 cents. I also hear about how the current hurricane season could pose a threat to the oil industry, as it did last year with hurricane Katrina, putting oil refineries under water or causing extreme damage to them. In this essay I am going to discuss the shifts and price elasticity of supply and demand in the oil and gas industry. I am also going to discuss the oil and gas industry’s positive and negative externalities, wage inequality, and monetary and fiscal policies. Lastly, I will discuss the economic affects and influence on the oil and gas industry. Shifts and Price Elasticity of Supply and Demand The price elasticity is the affect of the price for a good on the demand of that good. If consumers are not affected by the change in price then this good would be referred to as inelastic. If consumers are affected by the change in price then this good would be referred to as elastic. The oil and gas industry is inelastic when the prices rise because, although consumers slightly reduce their consumption of oil and gas, consumers still purchase oil and gas. With gasoline prices in the U.S. approaching an average $3 a gallon, Americans are moaning about the rising cost, but so far they are...
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...PIONEER NATURAL RESOURCES versus LAREDO PETROLEUM INC. Financial Statement Analysis and Decision Making Activity Background: PIONEER NATURAL RESOURCES Pioneer Natural Resources (PXD) is a large independent company that focuses primarily on drilling oil and gas exploration, with executive offices located in Irving, Texas. The company was formed in Delaware in 1997, with executive offices located in Irving, Texas. One of the company’s main focuses is to be competitive and to be profitable, so as to develop and produce oil and gas reserves. One way they gain competitive advantage is by employing well-trained and experienced personnel who enable efficient decision-making. The company has a sound development and production strategy. The company focuses efforts towards maximizing its average oil production, NGL’S (Natural, gas, and liquids), gas production through development drilling, production enhancement activities, and acquisition of producing properties. The Company is always looking for ways to improve on oil and gas reserves, and its production through development drilling and conducting other production activities. (Well Recompletions) Pioneer Natural also engages in other activities such as: Exploratory, Integrated, and Acquisition activities. The way the company penetrates its integrated services is to control drilling, operating costs, and to support the execution of its drilling program and operating services. One of the last...
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...Position Paper: Economic Impact of Declining Oil Prices Since the summer of 2014, an excess of supply in the global oil market has led to an unprecedented decline in oil prices. While this will undoubtedly affect nearly every financial market going forward into 2015, it is important to understand the ramifications, both positive and negative, of this particular glut. To find what caused this steep drop-off, it is necessary to look at the drivers of this movement. From a basic economics perspective, oil prices had been inflated prior to this past summer due to high levels of demand due to rapid growth in developing countries (i.e. China), as well as the inability of E&P companies across the world to satisfy this demand. Through the course of 2014, however, both of these drivers began shifting in the opposite direction; high-growth economies began to show signs of maturity, leading to an easing of demand for oil while producers in the U.S. and Canada simultaneously began successfully exploiting shale reserves and alternate sources of extraction, such as fracking, as a source of crude oil. Combined with the lack of cooperation from OPEC to reduce production from the Middle East, oil supply continued to outpace demand. Although alternative means of oil production have been relatively common for some time now, oil prices were being artificially inflated by oil sanctions placed by the United States due to geopolitical conflicts. As these conflicts began to dissipate, the true...
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...Outline Paper C April 7, 2014 Fracking involves the extraction of natural gas from underground layers of shale. Through high-pressure injections wells dug deep into the ground, water mixed with toxic chemicals is used to create fissures in the shale through which the oil is then retrieved. This practice has made America the largest producer of energy in the world, yet the industry has its share of critics (np). In the article off, THE WASHINGTON FREE BEACON “ Fact-Checking “. They talk about the movie Gasland Part II and the things they discovered while filming the documentary. The areas impacted by this are Texas, Ohio, New York, Pennsylvania, West Virginia and many more. Majority of the complaints are chemicals getting into the water of residents home and lands (np). Fracking is a growing industry that poses a number of troubling issues at the same time that it has increased American’s energy production considerably. 1. Topic Sentence: The Industry Defense talks about companies involved and what the future hold in the Industry. a. America's Natural Gas Alliance, Ardent is a privately held, independent oil and gas company headquartered in Pittsburgh, Pennsylvania and Marcellus Shale). b. America's Natural Gas Alliance exists to promote the economic, environmental and national security benefits of greater use of clean, abundant, domestic natural gas. c. The benefits of oil and gas development extend throughout the state in increased business opportunities...
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...Student Name Class Date Insturctor Current Events in Business Research The following discusses water quality in the Texas oilfields and what can be done to get more efficient methods for its use and reuse. West Texas is a prime example of a Texas area that is definitely affected by poor water quality. New technologies will soon help to solve this issue for a better future for its residents. Research Problem or Purpose The research problem presented is that the quality of water is substandard in the West Texas or Permian Basin as some would call it. The water used for residential propose has a constant smell of chlorine to it and tastes awful to drink requiring most residents to either install a reverse osmosis system or use bottled water for drinking. The biggest problem present is that it is more expensive to recycle water vs. using so called “fresh water” that is of lower quality. “Recycling is expensive because the water that comes out of the oilfields needs a good cleaning before it is reused” (Galbraith, 2013). Certain jobs in the oilfield, fracking in particular can require millions of gallons of water with have numerous dangerous chemicals added to it causing a shortage in the city’s water supply. This can be a major issue due to the already over population stemmed from the oil boom itself. Methods Used in the Research A study published by the Texas Water Development board found that recycling was very minimum is regions where drilling and servicing occur. “According...
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...fracking. Today, it’s one of the most incendiary environmental topics going. Natural gas is found underground, and is produced when trapped gas is released above ground. Hydraulic fracturing is a process that extracts natural gas from the ground. In order to try to break our country’s dependence on foreign oil supplies, we have begun to dip into our own natural gas supply. As harmless as the billion dollar producing oil companies would want us to believe, environmental groups, scientists, and average citizens have raised concerns about the negative impact of hydraulic fracking on the environment and surrounding communities. From an ethical perspective we might look at the harms and benefits of fracking. Is U.S. energy independence more important than the potential for harm to those affected by fracking procedures? Hydraulic fracturing poses the greatest current threat for communities because its potential for environmental and human damage is vast and its management is fairly unregulated. Modern day hydraulic fracturing results from the marriage of two technologies: hydraulic fracturing and horizontal drilling. Although these technologies are not new, it was not until 2002 or 2003 that they were first combined. In a typical fracking operation, pressurized water, sand and chemicals are injected into shale rock formations to release trapped natural gas (Edwards and Oliver). Since natural gas is trapped and then subsequently released from shale rock, thus the name has been given...
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...Lufkin Industries Managerial Economics ECP 5705-1 Lufkin Industries is operating in an oligopoly market including some of its direct competitors according to yahoo finance such as CE Franklin Ltd. (CFK), Weatherford International Ltd. (WFT), PVT1 (MAN SE), and Oil & Gas Equipment & Services (Industry). These few large companies operating in an oligopolistic market affects each other when they decide to change their price and output. In the Oil Field Division of Lufkin Industries, producing their output like the Air Balanced Pumping units are very expensive that any change in price or output should be well planned and researched to avoid increase cost especially labor cost. November 1, 2010, Lufkin Industries announced that it has acquired the operating assets of Petro Hydraulic Lift Systems, LLC (PHL). (PRNewswire, 2010). A company that specializes in the design, manufacture and leasing of hydraulic rod pumping units for oil and gas wells. According to the president and chief executive officer John F. “Jay” Click, their acquisition of PHL is a solid strategic fit to their industry. With this big decision acquiring PHL, it is an expansion in the part of Lufkin and this might scare potential entrant to this kind of industry. It will also give a Lufkin an opportunity of having the first-mover advantage in every decisions made in the market that will increase the payoff or profits. They also paid $0.125 per share on its common stock last December 10, 2010....
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...Property Owners The first group of stakeholders that needs to be represented in this debate is property owners, specifically property owners who also have natural gas under their property or experience environmental and property damage from fracking. Matt Willie addresses the conflict of private property and gas companies. He summarizes that the main issues involved with hydraulic fracturing and property rights are trespassing, pooling, ownership, and damages (Willie, 1752). For trespassing, the issue that has arisen is whether horizontally drilling under someone else’s property is trespassing (1752). The author then concludes that based on the Texas Supreme Court case Coastal Oil and Gas Corp. v. Garza Energy Trust, extracting gas or oil...
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...world’s ninth largest economy, surpassing many developed nations with an annual GDP exceeding two trillion Dollars, according to a report by CNN last year.1 California’s crude oil and natural gas deposits are located in six geological basins in the Central Valley and along the coast. California has more than a dozen of the United States' largest oil fields, including the Midway-Sunset Oil Field, the second largest oil field in the contiguous United States. California is sitting on a massive amount of shale oil and could become the next oil boom state. But only if the industry can get the stuff out of the ground without upsetting the state's powerful environmental lobby. Running from Los Angeles to San Francisco, California's Monterey Shale is thought to contain more oil than North Dakota's Bakken and Texas's Eagle Ford, both scenes of an oil boom that's created thousands of jobs and boosted U.S. oil production to the highest rate in over a decade. In 2010, California produced 12% of the natural gas, 71% of the electricity, and 38.11% of the crude oil it consumes. The remaining electricity and natural gas was purchased from Canada, the Pacific Northwest, the Rocky Mountain States and the Southwest. Remaining crude oil was imported from Alaska and abroad.2 California is therefore a net importer of oil and petroleum based fuels account for up to 96% of the state’s transportation needs. Transportation is the single largest emitter of greenhouse gasses and although the state is...
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...Hydraulic fracturing, known as fracking, is a means of natural gas extraction employed in deep natural gas well drilling. The fracturing is done from a wellbore drilled into reservoir rock formations. The rock layers are fractured when chemical-laced water and sand are blasted underground to break apart rock and release natural gas. The chemical based water is known as fracking fluid. The fracking fluid injected into the rock is typically a slurry of water, proppants, and chemical additives. Additionally, gels, foams, and compressed gases, including nitrogen, carbon dioxide and air can be injected. Various types of proppant include silica sand, resin-coated sand, and man-made ceramics. These vary depending on the type of permeability or grain strength needed. Sand containing naturally radioactive minerals is sometimes used so that the fracture trace along the wellbore can be measured. Chemical additives are applied to tailor the injected material to the specific geological situation, protect the well, and improve its operation, though the injected fluid is approximately 98-99.5% percent water. (Modern Shale Gas Development in the United States: A Primer, 2009) For each frack, 1-8 million gallons of water and 80 – 300 tons of chemicals may be used to frack a well. A well may be fracked up to 18 times. (Fox, 2010) Figure 1: Hydraulic Fracturing (Albertan, 2011) History Hydraulic fracking of oil and gas wells was first used in the United States in 1947. It was first...
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...for Clean Energy 1 Name University WGU Student ID# Deep Impact: Fracturing Planet Earth for Clean Energy 2 Shale gas has been acclaimed as the solution for a clean energy alternative. It burns cleaner than both coal and oil. There are vast quantities located in several shale formations domestically, in the United States (U.S.). Natural gas is an odorless, colorless hydrocarbon composed mostly of methane found deep in the earth in formations known as shale. In mid-1997, George Mitchell, an independent prospector made a discovery that would change the natural gas exploration industry for the twenty-first century. (Hinton, 2012). The modification of the well completion technology known as hydraulic fracturing (fracking) and horizontal drilling allowed the oil and gas industry the ability to tap into natural gas reserves trapped in shale deposits miles beneath the earths’ surface. (Hinton, 2012). Mitchell found that forcing fracking fluid at extremely high pressure into the shale formations created fissures in surrounding rock releasing the hydrocarbons and capturing them in the well head. The fracking fluid, also referred to as slick water, is made up of water, chemicals, and sand. Heywood (2012) reports that members of the energy and commerce committee of the U.S. House of Representatives said that between 2005 and 2009 the oil and gas service companies were using over 2,500 fracking products with 750 different chemicals. Some of these chemicals are harmless including...
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...the United States. Several thousand feet below the earth’s surface lies tightly packed rock formations, known as shale. The shale formation is very dense and traps the natural resources that lie within it very tightly making it previously difficult and costly to recover. The shale that lies below Pennsylvania is known as the Marcellus Shale. The Marcellus Shale is an organic-rich black shale that was deposited in an oxygen-deficient marine environment during the Middle Devonian Time (approximately 390 million years ago). The Marcellus is not just any shale formation either; it is the largest producing gas basin in the United States and accounts for almost forty percent of all United States shale gas production. Natural gas production in the Marcellus Region has exceeded fifteen billion cubic feet per day (Bcf/d). It has the potential to be the second largest natural gas field in the world, behind only the South Pars/Asalouyeh field shared between the nations of Iran and Qatar. Converted to British Thermal Units...
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...information, industry characteristics, calculations, and analysis. Abstract This report covers the acquisition of XTO Energy by ExxonMobil including background information, industry characteristics, calculations, and analysis. Case Study 1 ExxonMobil Corp. Acquisition of XTO Energy, Inc. Case Study 1 ExxonMobil Corp. Acquisition of XTO Energy, Inc. EXECUTIVE SUMMARY The purpose of this document is to outline elements of the acquisition process in the energy industry by detailing ExxonMobil Corp.’s (referred to as ExxonMobil) acquisition of XTO Energy, Inc (referred to as XTO). This transaction was announced in December 2009 and finalized in June 2010. The subsequent information will contain an introduction that focuses on the economic atmosphere of the energy industry at this time and details surrounding the agreement including motivations for the deal and terms of the deal. Next, calculations used in the valuation process will be introduced with results presented. Finally, a discussion of findings will conclude, supplying answers to the following questions: (1) What should the acquisition price for XTO shares have been? (2) Which comparable firm is the best comparison firm for XTO Energy? (3) Why did ExxonMobil want to acquire XTO? (4) Based on the analysis, did ExxonMobil overpay for XTO or get a Bargain? (5) What additional information could help with this analysis? INTRODUCTION Economic Considerations and Pertinent Features of the Energy Industry The...
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...July, 2012 Oil and Gas Throughout the history of America, many controversial subjects are discussed. The oil and gas industry has become an important part of every person’s day. Whether it’s lighting, driving, or cooking, oil and gas has become a conglomerate in big business. Known as one of the most profitable industries in the market today, stocks fluctuate on a daily basis. The history, current leaders, and financial statistics of the industry all play factors in how the business operates. The history of oil and gas plays a factor in today’s society. Petroleum has always had great demand around the country. By the twentieth century, petroleum lead the world in the product for trade market. Countries such as America, Canada, and Russia began to establish oil fields in the early 1900’s and by mid century, these countries produced up to 3,500 tons of petroleum. The first modernized oil refinery was built in Poland. This oil refinery exported petroleum to counties in Europe and in northern Africa. Competition in eastern Europe for oil was getting competitive. The U.S. took over Europe as world leaders of producing oil in the 1920’s. Factories and refineries began popping up all over the country. The hotspots in the U.S. for oil and gas are Charles 2 Texas, Oklahoma, California, and Alaska. These states to this day lead the country with the most oil and gas produced and their economies are based around the booming economy of oil and gas. Offshore oil welling...
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