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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Harbour Energy Plc | PMO | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
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|---|---|---|---|---|
| 0.00 | 0.00% | 22.40 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 22.40 |
| Top Posts |
|---|
Posted at 31/3/2021 16:47 by shug5ter You do realise that what was a company to invest in, which produced something to earn money is no longer the case tomorrow?. Harbour energy produce NO OIL, it will be nothing more than an investment vehicle, which funds oil production. Your new HBR shares will produce no earnings and thus no profit, as you are now proud investors in a company that invests in oil producers - PMO being one of them. Don't be surprised that Harbour Energy plc opens at 10p. |
Posted at 09/2/2021 07:57 by csmwssk12hu Listen to the professionals squeeze on oil price forcing it higher is coming and can’t be stoppedNote what the professionals are saying it’s all about the backwardation From Dow Jones News Wires by Joe Wallace A booming rally in oil markets has pushed crude prices to their highest levels since near the start of the coronavirus pandemic, powered by production curbs and recovering demand. Brent-crude futures, the benchmark in energy markets, have risen more than 50% since the end of October and are approaching $60 a barrel for the first time since Covid-19 began to erode oil demand in early 2020. Futures for West Texas Intermediate -- or WTI, the main grade of U.S. crude -- last week surpassed $55 a barrel for the first time in over a year. The speed of the recovery has surprised some investors and analysts, given that coronavirus continues to curtail demand. It has juiced shares of companies including Exxon Mobil Corp. and ConocoPhillips after a troubled 2020 for oil-and-gas producers, making energy stocks the best performers on the S&P 500 this year. "The market definitely has some momentum," said John Kilduff, partner at Again Capital LLC, a hedge fund that invests in energy derivatives. "WTI is going to be targeting $60, too." Oil is rising against a mixed economic backdrop, with data published Friday suggesting that the labor market faces a long road to recovery. But the stock market continues to power higher, in part because investors expect a new dose of fiscal stimulus and vaccines to goose growth. American drivers are already paying more thanks to the rally in crude. Nationally, gasoline prices have climbed to an average of $2.46 a gallon from $2.12 at the start of November, according to GasBuddy, which tracks retail fuel prices. Gasoline prices are likely to keep climbing. Crude's recent advance will take two to four weeks to translate into higher prices at the pump, said Patrick De Haan, GasBuddy's head of petroleum analysis, though he doesn't expect to see gasoline hit $3 a gallon on average any time soon. Behind oil's rally: Huge stockpiles that accumulated in the early stages of the pandemic have winnowed down faster than many people expected. Traders say that could pave the way for further price gains if demand, which has already recovered in China and India, picks up in developed economies. The fall in inventories is largely down to efforts by the Organization of the Petroleum Exporting Countries and its allies, led by Russia, to restrain production. Since agreeing to the cuts at the peak of the crisis in energy markets in April, producers have held back a cumulative 2.1 billion barrels of oil, OPEC said last week. U.S. companies have also helped to prevent production from swamping demand. Global appetite for oil remains below pre-pandemic levels despite a pickup in consumption of gasoline, naphtha and fuel oil, which is used to heat homes and power ships. American producers are pumping 17% less crude than they did on the eve of the pandemic, according to the Energy Information Administration. All this has pulled the amount of crude oil and petroleum products stored around the world down by about 5% since its peak in 2020, according to Morgan Stanley analyst Martijn Rats. There is no shortage of oil, but one sign the market is tightening stems from the relationship between current and future prices. Spot prices have climbed to a premium over prices for crude to be delivered down the line, showing that traders are willing to pay more for immediate access to oil. On Friday, WTI contracts for oil that will be delivered next month cost $5.16 more per barrel than contracts for crude that will change hands in March 2022. That is the biggest premium for front-month futures since the start of the pandemic and contrasts with a historically large discount last April, when a glut of oil pushed WTI prices below zero. "It is a bullish indicator," said Scott Shelton, an energy analyst and broker at United ICAP. "I don't think there's any question about that." Analysts say this dynamic -- known as backwardation -- has been exaggerated by a slowdown in purchases of long-dated energy contracts by airlines and other companies that buy them to hedge fuel prices. Still, some investors say the condition shows the rally has further to run. It gives traders an incentive to take oil out of storage, because they earn more from selling it straight away. That in turn would bolster prices by whittling down supplies. Lower forward prices also make it harder for producers to lock in profits for barrels they will sell in the future, encouraging them to keep oil in the ground. Backwardation could encourage more money managers to bet on crude, said Mark Hume, co-manager of BlackRock's BGF World Energy fund. When spot barrels of oil fetch a premium, funds earn a profit when futures approach expiration and they flip their position forward into cheaper later-dated contracts |
Posted at 09/2/2021 00:04 by csmwssk12hu Listen to the professionalsNote what the professionals are saying it’s all about the backwardation From Dow Jones News Wires by Joe Wallace A booming rally in oil markets has pushed crude prices to their highest levels since near the start of the coronavirus pandemic, powered by production curbs and recovering demand. Brent-crude futures, the benchmark in energy markets, have risen more than 50% since the end of October and are approaching $60 a barrel for the first time since Covid-19 began to erode oil demand in early 2020. Futures for West Texas Intermediate -- or WTI, the main grade of U.S. crude -- last week surpassed $55 a barrel for the first time in over a year. The speed of the recovery has surprised some investors and analysts, given that coronavirus continues to curtail demand. It has juiced shares of companies including Exxon Mobil Corp. and ConocoPhillips after a troubled 2020 for oil-and-gas producers, making energy stocks the best performers on the S&P 500 this year. "The market definitely has some momentum," said John Kilduff, partner at Again Capital LLC, a hedge fund that invests in energy derivatives. "WTI is going to be targeting $60, too." Oil is rising against a mixed economic backdrop, with data published Friday suggesting that the labor market faces a long road to recovery. But the stock market continues to power higher, in part because investors expect a new dose of fiscal stimulus and vaccines to goose growth. American drivers are already paying more thanks to the rally in crude. Nationally, gasoline prices have climbed to an average of $2.46 a gallon from $2.12 at the start of November, according to GasBuddy, which tracks retail fuel prices. Gasoline prices are likely to keep climbing. Crude's recent advance will take two to four weeks to translate into higher prices at the pump, said Patrick De Haan, GasBuddy's head of petroleum analysis, though he doesn't expect to see gasoline hit $3 a gallon on average any time soon. Behind oil's rally: Huge stockpiles that accumulated in the early stages of the pandemic have winnowed down faster than many people expected. Traders say that could pave the way for further price gains if demand, which has already recovered in China and India, picks up in developed economies. The fall in inventories is largely down to efforts by the Organization of the Petroleum Exporting Countries and its allies, led by Russia, to restrain production. Since agreeing to the cuts at the peak of the crisis in energy markets in April, producers have held back a cumulative 2.1 billion barrels of oil, OPEC said last week. U.S. companies have also helped to prevent production from swamping demand. Global appetite for oil remains below pre-pandemic levels despite a pickup in consumption of gasoline, naphtha and fuel oil, which is used to heat homes and power ships. American producers are pumping 17% less crude than they did on the eve of the pandemic, according to the Energy Information Administration. All this has pulled the amount of crude oil and petroleum products stored around the world down by about 5% since its peak in 2020, according to Morgan Stanley analyst Martijn Rats. There is no shortage of oil, but one sign the market is tightening stems from the relationship between current and future prices. Spot prices have climbed to a premium over prices for crude to be delivered down the line, showing that traders are willing to pay more for immediate access to oil. On Friday, WTI contracts for oil that will be delivered next month cost $5.16 more per barrel than contracts for crude that will change hands in March 2022. That is the biggest premium for front-month futures since the start of the pandemic and contrasts with a historically large discount last April, when a glut of oil pushed WTI prices below zero. "It is a bullish indicator," said Scott Shelton, an energy analyst and broker at United ICAP. "I don't think there's any question about that." Analysts say this dynamic -- known as backwardation -- has been exaggerated by a slowdown in purchases of long-dated energy contracts by airlines and other companies that buy them to hedge fuel prices. Still, some investors say the condition shows the rally has further to run. It gives traders an incentive to take oil out of storage, because they earn more from selling it straight away. That in turn would bolster prices by whittling down supplies. Lower forward prices also make it harder for producers to lock in profits for barrels they will sell in the future, encouraging them to keep oil in the ground. Backwardation could encourage more money managers to bet on crude, said Mark Hume, co-manager of BlackRock's BGF World Energy fund. When spot barrels of oil fetch a premium, funds earn a profit when futures approach expiration and they flip their position forward into cheaper later-dated contracts |
Posted at 08/2/2021 22:46 by csmwssk12hu For your eyes onlyNote what the professionals are saying From Dow Jones News Wires by Joe Wallace A booming rally in oil markets has pushed crude prices to their highest levels since near the start of the coronavirus pandemic, powered by production curbs and recovering demand. Brent-crude futures, the benchmark in energy markets, have risen more than 50% since the end of October and are approaching $60 a barrel for the first time since Covid-19 began to erode oil demand in early 2020. Futures for West Texas Intermediate -- or WTI, the main grade of U.S. crude -- last week surpassed $55 a barrel for the first time in over a year. The speed of the recovery has surprised some investors and analysts, given that coronavirus continues to curtail demand. It has juiced shares of companies including Exxon Mobil Corp. and ConocoPhillips after a troubled 2020 for oil-and-gas producers, making energy stocks the best performers on the S&P 500 this year. "The market definitely has some momentum," said John Kilduff, partner at Again Capital LLC, a hedge fund that invests in energy derivatives. "WTI is going to be targeting $60, too." Oil is rising against a mixed economic backdrop, with data published Friday suggesting that the labor market faces a long road to recovery. But the stock market continues to power higher, in part because investors expect a new dose of fiscal stimulus and vaccines to goose growth. American drivers are already paying more thanks to the rally in crude. Nationally, gasoline prices have climbed to an average of $2.46 a gallon from $2.12 at the start of November, according to GasBuddy, which tracks retail fuel prices. Gasoline prices are likely to keep climbing. Crude's recent advance will take two to four weeks to translate into higher prices at the pump, said Patrick De Haan, GasBuddy's head of petroleum analysis, though he doesn't expect to see gasoline hit $3 a gallon on average any time soon. Behind oil's rally: Huge stockpiles that accumulated in the early stages of the pandemic have winnowed down faster than many people expected. Traders say that could pave the way for further price gains if demand, which has already recovered in China and India, picks up in developed economies. The fall in inventories is largely down to efforts by the Organization of the Petroleum Exporting Countries and its allies, led by Russia, to restrain production. Since agreeing to the cuts at the peak of the crisis in energy markets in April, producers have held back a cumulative 2.1 billion barrels of oil, OPEC said last week. U.S. companies have also helped to prevent production from swamping demand. Global appetite for oil remains below pre-pandemic levels despite a pickup in consumption of gasoline, naphtha and fuel oil, which is used to heat homes and power ships. American producers are pumping 17% less crude than they did on the eve of the pandemic, according to the Energy Information Administration. All this has pulled the amount of crude oil and petroleum products stored around the world down by about 5% since its peak in 2020, according to Morgan Stanley analyst Martijn Rats. There is no shortage of oil, but one sign the market is tightening stems from the relationship between current and future prices. Spot prices have climbed to a premium over prices for crude to be delivered down the line, showing that traders are willing to pay more for immediate access to oil. On Friday, WTI contracts for oil that will be delivered next month cost $5.16 more per barrel than contracts for crude that will change hands in March 2022. That is the biggest premium for front-month futures since the start of the pandemic and contrasts with a historically large discount last April, when a glut of oil pushed WTI prices below zero. "It is a bullish indicator," said Scott Shelton, an energy analyst and broker at United ICAP. "I don't think there's any question about that." Analysts say this dynamic -- known as backwardation -- has been exaggerated by a slowdown in purchases of long-dated energy contracts by airlines and other companies that buy them to hedge fuel prices. Still, some investors say the condition shows the rally has further to run. It gives traders an incentive to take oil out of storage, because they earn more from selling it straight away. That in turn would bolster prices by whittling down supplies. Lower forward prices also make it harder for producers to lock in profits for barrels they will sell in the future, encouraging them to keep oil in the ground. Backwardation could encourage more money managers to bet on crude, said Mark Hume, co-manager of BlackRock's BGF World Energy fund. When spot barrels of oil fetch a premium, funds earn a profit when futures approach expiration and they flip their position forward into cheaper later-dated contracts |
Posted at 08/2/2021 22:18 by csmwssk12hu Don’t listen to meListen to the professionals Note what the professionals are saying From Dow Jones News Wires by Joe Wallace A booming rally in oil markets has pushed crude prices to their highest levels since near the start of the coronavirus pandemic, powered by production curbs and recovering demand. Brent-crude futures, the benchmark in energy markets, have risen more than 50% since the end of October and are approaching $60 a barrel for the first time since Covid-19 began to erode oil demand in early 2020. Futures for West Texas Intermediate -- or WTI, the main grade of U.S. crude -- last week surpassed $55 a barrel for the first time in over a year. The speed of the recovery has surprised some investors and analysts, given that coronavirus continues to curtail demand. It has juiced shares of companies including Exxon Mobil Corp. and ConocoPhillips after a troubled 2020 for oil-and-gas producers, making energy stocks the best performers on the S&P 500 this year. "The market definitely has some momentum," said John Kilduff, partner at Again Capital LLC, a hedge fund that invests in energy derivatives. "WTI is going to be targeting $60, too." Oil is rising against a mixed economic backdrop, with data published Friday suggesting that the labor market faces a long road to recovery. But the stock market continues to power higher, in part because investors expect a new dose of fiscal stimulus and vaccines to goose growth. American drivers are already paying more thanks to the rally in crude. Nationally, gasoline prices have climbed to an average of $2.46 a gallon from $2.12 at the start of November, according to GasBuddy, which tracks retail fuel prices. Gasoline prices are likely to keep climbing. Crude's recent advance will take two to four weeks to translate into higher prices at the pump, said Patrick De Haan, GasBuddy's head of petroleum analysis, though he doesn't expect to see gasoline hit $3 a gallon on average any time soon. Behind oil's rally: Huge stockpiles that accumulated in the early stages of the pandemic have winnowed down faster than many people expected. Traders say that could pave the way for further price gains if demand, which has already recovered in China and India, picks up in developed economies. The fall in inventories is largely down to efforts by the Organization of the Petroleum Exporting Countries and its allies, led by Russia, to restrain production. Since agreeing to the cuts at the peak of the crisis in energy markets in April, producers have held back a cumulative 2.1 billion barrels of oil, OPEC said last week. U.S. companies have also helped to prevent production from swamping demand. Global appetite for oil remains below pre-pandemic levels despite a pickup in consumption of gasoline, naphtha and fuel oil, which is used to heat homes and power ships. American producers are pumping 17% less crude than they did on the eve of the pandemic, according to the Energy Information Administration. All this has pulled the amount of crude oil and petroleum products stored around the world down by about 5% since its peak in 2020, according to Morgan Stanley analyst Martijn Rats. There is no shortage of oil, but one sign the market is tightening stems from the relationship between current and future prices. Spot prices have climbed to a premium over prices for crude to be delivered down the line, showing that traders are willing to pay more for immediate access to oil. On Friday, WTI contracts for oil that will be delivered next month cost $5.16 more per barrel than contracts for crude that will change hands in March 2022. That is the biggest premium for front-month futures since the start of the pandemic and contrasts with a historically large discount last April, when a glut of oil pushed WTI prices below zero. "It is a bullish indicator," said Scott Shelton, an energy analyst and broker at United ICAP. "I don't think there's any question about that." Analysts say this dynamic -- known as backwardation -- has been exaggerated by a slowdown in purchases of long-dated energy contracts by airlines and other companies that buy them to hedge fuel prices. Still, some investors say the condition shows the rally has further to run. It gives traders an incentive to take oil out of storage, because they earn more from selling it straight away. That in turn would bolster prices by whittling down supplies. Lower forward prices also make it harder for producers to lock in profits for barrels they will sell in the future, encouraging them to keep oil in the ground. Backwardation could encourage more money managers to bet on crude, said Mark Hume, co-manager of BlackRock's BGF World Energy fund. When spot barrels of oil fetch a premium, funds earn a profit when futures approach expiration and they flip their position forward into cheaper later-dated contracts |
Posted at 08/2/2021 15:05 by csmwssk12hu Note what the professionals are sayingFrom Dow Jones News Wires by Joe Wallace A booming rally in oil markets has pushed crude prices to their highest levels since near the start of the coronavirus pandemic, powered by production curbs and recovering demand. Brent-crude futures, the benchmark in energy markets, have risen more than 50% since the end of October and are approaching $60 a barrel for the first time since Covid-19 began to erode oil demand in early 2020. Futures for West Texas Intermediate -- or WTI, the main grade of U.S. crude -- last week surpassed $55 a barrel for the first time in over a year. The speed of the recovery has surprised some investors and analysts, given that coronavirus continues to curtail demand. It has juiced shares of companies including Exxon Mobil Corp. and ConocoPhillips after a troubled 2020 for oil-and-gas producers, making energy stocks the best performers on the S&P 500 this year. "The market definitely has some momentum," said John Kilduff, partner at Again Capital LLC, a hedge fund that invests in energy derivatives. "WTI is going to be targeting $60, too." Oil is rising against a mixed economic backdrop, with data published Friday suggesting that the labor market faces a long road to recovery. But the stock market continues to power higher, in part because investors expect a new dose of fiscal stimulus and vaccines to goose growth. American drivers are already paying more thanks to the rally in crude. Nationally, gasoline prices have climbed to an average of $2.46 a gallon from $2.12 at the start of November, according to GasBuddy, which tracks retail fuel prices. Gasoline prices are likely to keep climbing. Crude's recent advance will take two to four weeks to translate into higher prices at the pump, said Patrick De Haan, GasBuddy's head of petroleum analysis, though he doesn't expect to see gasoline hit $3 a gallon on average any time soon. Behind oil's rally: Huge stockpiles that accumulated in the early stages of the pandemic have winnowed down faster than many people expected. Traders say that could pave the way for further price gains if demand, which has already recovered in China and India, picks up in developed economies. The fall in inventories is largely down to efforts by the Organization of the Petroleum Exporting Countries and its allies, led by Russia, to restrain production. Since agreeing to the cuts at the peak of the crisis in energy markets in April, producers have held back a cumulative 2.1 billion barrels of oil, OPEC said last week. U.S. companies have also helped to prevent production from swamping demand. Global appetite for oil remains below pre-pandemic levels despite a pickup in consumption of gasoline, naphtha and fuel oil, which is used to heat homes and power ships. American producers are pumping 17% less crude than they did on the eve of the pandemic, according to the Energy Information Administration. All this has pulled the amount of crude oil and petroleum products stored around the world down by about 5% since its peak in 2020, according to Morgan Stanley analyst Martijn Rats. There is no shortage of oil, but one sign the market is tightening stems from the relationship between current and future prices. Spot prices have climbed to a premium over prices for crude to be delivered down the line, showing that traders are willing to pay more for immediate access to oil. On Friday, WTI contracts for oil that will be delivered next month cost $5.16 more per barrel than contracts for crude that will change hands in March 2022. That is the biggest premium for front-month futures since the start of the pandemic and contrasts with a historically large discount last April, when a glut of oil pushed WTI prices below zero. "It is a bullish indicator," said Scott Shelton, an energy analyst and broker at United ICAP. "I don't think there's any question about that." Analysts say this dynamic -- known as backwardation -- has been exaggerated by a slowdown in purchases of long-dated energy contracts by airlines and other companies that buy them to hedge fuel prices. Still, some investors say the condition shows the rally has further to run. It gives traders an incentive to take oil out of storage, because they earn more from selling it straight away. That in turn would bolster prices by whittling down supplies. Lower forward prices also make it harder for producers to lock in profits for barrels they will sell in the future, encouraging them to keep oil in the ground. Backwardation could encourage more money managers to bet on crude, said Mark Hume, co-manager of BlackRock's BGF World Energy fund. When spot barrels of oil fetch a premium, funds earn a profit when futures approach expiration and they flip their position forward into cheaper later-dated contracts |
Posted at 08/2/2021 01:39 by csmwssk12hu From Dow Jones News Wires by Joe WallaceA booming rally in oil markets has pushed crude prices to their highest levels since near the start of the coronavirus pandemic, powered by production curbs and recovering demand. Brent-crude futures, the benchmark in energy markets, have risen more than 50% since the end of October and are approaching $60 a barrel for the first time since Covid-19 began to erode oil demand in early 2020. Futures for West Texas Intermediate -- or WTI, the main grade of U.S. crude -- last week surpassed $55 a barrel for the first time in over a year. The speed of the recovery has surprised some investors and analysts, given that coronavirus continues to curtail demand. It has juiced shares of companies including Exxon Mobil Corp. and ConocoPhillips after a troubled 2020 for oil-and-gas producers, making energy stocks the best performers on the S&P 500 this year. "The market definitely has some momentum," said John Kilduff, partner at Again Capital LLC, a hedge fund that invests in energy derivatives. "WTI is going to be targeting $60, too." Oil is rising against a mixed economic backdrop, with data published Friday suggesting that the labor market faces a long road to recovery. But the stock market continues to power higher, in part because investors expect a new dose of fiscal stimulus and vaccines to goose growth. American drivers are already paying more thanks to the rally in crude. Nationally, gasoline prices have climbed to an average of $2.46 a gallon from $2.12 at the start of November, according to GasBuddy, which tracks retail fuel prices. Gasoline prices are likely to keep climbing. Crude's recent advance will take two to four weeks to translate into higher prices at the pump, said Patrick De Haan, GasBuddy's head of petroleum analysis, though he doesn't expect to see gasoline hit $3 a gallon on average any time soon. Behind oil's rally: Huge stockpiles that accumulated in the early stages of the pandemic have winnowed down faster than many people expected. Traders say that could pave the way for further price gains if demand, which has already recovered in China and India, picks up in developed economies. The fall in inventories is largely down to efforts by the Organization of the Petroleum Exporting Countries and its allies, led by Russia, to restrain production. Since agreeing to the cuts at the peak of the crisis in energy markets in April, producers have held back a cumulative 2.1 billion barrels of oil, OPEC said last week. U.S. companies have also helped to prevent production from swamping demand. Global appetite for oil remains below pre-pandemic levels despite a pickup in consumption of gasoline, naphtha and fuel oil, which is used to heat homes and power ships. American producers are pumping 17% less crude than they did on the eve of the pandemic, according to the Energy Information Administration. All this has pulled the amount of crude oil and petroleum products stored around the world down by about 5% since its peak in 2020, according to Morgan Stanley analyst Martijn Rats. There is no shortage of oil, but one sign the market is tightening stems from the relationship between current and future prices. Spot prices have climbed to a premium over prices for crude to be delivered down the line, showing that traders are willing to pay more for immediate access to oil. On Friday, WTI contracts for oil that will be delivered next month cost $5.16 more per barrel than contracts for crude that will change hands in March 2022. That is the biggest premium for front-month futures since the start of the pandemic and contrasts with a historically large discount last April, when a glut of oil pushed WTI prices below zero. "It is a bullish indicator," said Scott Shelton, an energy analyst and broker at United ICAP. "I don't think there's any question about that." Analysts say this dynamic -- known as backwardation -- has been exaggerated by a slowdown in purchases of long-dated energy contracts by airlines and other companies that buy them to hedge fuel prices. Still, some investors say the condition shows the rally has further to run. It gives traders an incentive to take oil out of storage, because they earn more from selling it straight away. That in turn would bolster prices by whittling down supplies. Lower forward prices also make it harder for producers to lock in profits for barrels they will sell in the future, encouraging them to keep oil in the ground. Backwardation could encourage more money managers to bet on crude, said Mark Hume, co-manager of BlackRock's BGF World Energy fund. When spot barrels of oil fetch a premium, funds earn a profit when futures approach expiration and they flip their position forward into cheaper later-dated contracts. |
Posted at 22/1/2021 12:17 by surfit Thank you Andy,I had looked at PMO's website for the signifiant share holders and did not see Mel & WhiteB, so due to the timing of the increase in their short and GS (RNS) reduction, I thought the two might be correlated.but as creditors they may not show on the PMO website. Interestingly Interactive Investor are down as owning approx 8% and Hargreaves and Hargreaves Lansdown 13% would this indicate the extent of small investors into Premier Oil? What a mess, TD really blew it. Not too good a artical yesterday from Proactive Investor...not that I trust these articles writers Would have been happier if it was a Motely Fool..who's write ups are great novels. Reminds me of Oil Price news that have been pumping "Facedrive" for months...they have vested interests. Crazy world of Internet information personified. Understanding the realities is not easy, but worth the effort. The hard part for me in share trading is knowing when to take a hair cut...but not having it rise just after (-: Makes you wonder about these new algo platforms...back in the day the new thing was tracker funds out doing managed funds. Which in fairness a good percentage did! All the best Sft |
Posted at 16/12/2020 08:03 by whackford Update on proposed merger with Chrysaor and change of name16 Dec 2020 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION. THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND IS NOT AN OFFER OF SECURITIES IN ANY JURISDICTION. THIS IS AN ANNOUNCEMENT AND NOT A CIRCULAR OR PROSPECTUS OR EQUIVALENT DOCUMENT AND INVESTORS AND PROSPECTIVE INVESTORS SHOULD NOT MAKE ANY INVESTMENT DECISION ON THE BASIS OF ITS CONTENTS. A CIRCULAR AND PROSPECTUS IN RELATION TO THE TRANSACTION DESCRIBED IN THIS ANNOUNCEMENT WILL EACH BE PUBLISHED IN DUE COURSE. Premier today provides an update on the proposed all share merger between Premier and Chrysaor Holdings Limited (“ChrysaorR A live webcast and conference call for analysts and investors will be held on Thursday 17 December 2020 at 11am (GMT), the details of which can be found on Premier’s website (www.premier-oil.com Publication of a shareholder circular and prospectus Premier is pleased to announce that a shareholder circular (the “Circular̶ The publication of the Circular and Prospectus marks an important milestone for the Transaction which is expected to complete by the end of the first quarter of 2021, as previously guided. On completion of the Transaction, Premier will be renamed Harbour Energy plc (“Harbour Energy”). Board and management As previously announced, it is anticipated that the Board of Harbour Energy will comprise 11 directors: six independent non-executive directors, two non-executive directors appointed by funds managed by EIG Global Energy Partners (“EIG”) and three executive directors. Blair Thomas, currently CEO of EIG, will be the Chairman of the Combined Group from completion. Blair has over 30 years’ experience in the investment management business, with a focus on energy and energy-related infrastructure and extensive management and board experience. As previously announced, Linda Cook will be CEO of Harbour Energy and Phil Kirk will be President and CEO Europe from completion. It is expected that a new Chief Financial Officer will be identified prior to completion of the merger. Harbour Energy’s Board will also include, from completion: Simon Henry (Senior Independent Non-Executive Director) Anne L Stevens (Independent Non-Executive Director) Anne Marie Cannon (Independent Non-Executive Director) G. Steven Farris (Non-Executive Director) It is expected that the three additional independent non-executive directors will be announced prior to completion. It is expected that each of the current non-executive directors of the Board of Premier Oil, other than Anne Marie Cannon, will step down from the Board with effect from the completion of the Transaction. Further to the information disclosed in this announcement and the Prospectus that is expected to be published later today, there is no further information to be disclosed pursuant to Listing Rule 9.6.13R. Creating a strong UK independent oil and gas company of scale with a global footprint Harbour Energy will be the largest London-listed independent oil and gas company by production and reserves. It will be a resilient business with competitive operating costs. The Combined Group will have a lower carbon intensity than the average UK oil and gas producer, with targets in place for further improvements, and a commitment to achieving ‘Net Zero’ greenhouse gas emissions by 2035. The Combined Group will have a cash generative, diversified UK business of scale with a significant operated position. It will have a broad set of international growth opportunities with the financial flexibility and capacity to realise value from a top-tier development and exploration portfolio in addition to disciplined M&A. Harbour Energy will have a strong balance sheet. In addition, the Combined Group is expected to generate sufficient free cash flow to support shareholder returns including via a sustainable dividend which, subject to market conditions and Board approval, is expected to be introduced with respect to the financial year ending December 2021. ERCE Equipoise Ltd (“ERCE”) Competent Person’s Report (“CPR”) ERCE has prepared an independent CPR on the Chrysaor assets, which will be included in full in the Prospectus that is expected to be published later today. At 30 June 2020, ERCE has certified that Chrysaor had 491 mmboe of 2P reserves and 388 mmboe of 2C resources. These numbers do not include Premier’s 2P reserves or 2C resources. Conditions to closing and timetable The Transaction is subject, amongst other things, to Premier shareholder and creditor consents and regulatory approvals. The General Meeting for Premier’s shareholders to approve the Transaction has been scheduled for 12 January 2021. As previously announced, Premier has received the requisite level of creditor support for the Transaction and, immediately after the Prospectus is published, expects to launch the restructuring plan processes through the issuance of a practice statement letter. To date, European Commission merger control clearance has been received and regulatory approval from the Norwegian MPE has been, conditionally, received. The expected timetable of principal events to completion can be found in the Appendix. Premier Update Premier provides the following update in relation to its trading and operational activities for the first 11 months of the year and guidance for 2021: Production averaged 61.2 kboepd for the 11 month period and Premier is on track to meet its full year guidance of 61‐64 kboepd. Premier expects 2021 production to be in the range of 61-66 kboepd. This reflects new production from Premier’s operated Tolmount gas field (due on-stream in Q2 2021) offset by natural decline and maintenance shutdowns deferred from 2020. Production at Premier’s operated Catcher Area has been restored to rates in excess of 60 kbopd (gross) following a seven day unplanned outage in mid-November. The Solan P3 well was brought on-stream in September and subsequently produced at rates of over 10 kbopd in mid-November with the ESP online. In early December, production from the Solan field was shut in following the failure of the emergency generator and Premier is actively progressing its repair. The Tolmount platform was installed during October and batch drilling of the four wells is underway. First gas is forecast for Q2 2021 with Tolmount expected to add 20‐25 kboepd (net) once on plateau with all four wells completed, anticipated during Q4 2021. Premier has retained significant growth optionality within its portfolio Zama (Mexico) unitisation and development plan negotiations progressing with Pemex Tuna (Indonesia) farm‐out agreement signed with Zarubezhneft in September. Fully‐carried two well appraisal programme planned for 2021 Premier continues to assess the potential of the resources associated with the Sea Lion project (Falkland Islands) which represents a material opportunity for the Group Highly encouraging results from new 3D seismic data sets in Mexico and Indonesia Forecast 2020 opex (ex‐lease costs) unchanged at $12/boe and full year capex (including abex) guidance now $315 million, reflecting full year savings and deferrals of over $250 million. Premier forecasts 2021 operating costs (ex-lease costs) of $15/boe. This includes the tariff to be paid for the Tolmount infrastructure. 2021 total capital expenditure (including abex) is expected to be c. $275 million. 2021 guidance is provided on a standalone basis and does not account for any optimisation that may occur post completion of the Transaction. Net debt at the end of November was $2.06 billion. Premier also notes that Tony Durrant stepped down from the Board of Directors on 16 December 2020. As previously announced, Richard Rose will be the Interim Chief Executive until completion of the Transaction, in addition to his current role as Finance Director. Stuart Wheaton, currently Chief Operating Officer, will assume the role of Interim Deputy Chief Executive. Chrysaor Update Chrysaor has provided Premier with the following update on its trading and operational activities for the first 11 months of the year and guidance for 2021: Production averaged 174 kboepd for the 11 month period and Chrysaor forecasts full year production of 174 kboepd, in line with its full year guidance of 170-180 kboepd. Chrysaor expects 2021 production to average in the range of 140-155 kboepd. This reflects an expected 2020 second-half production forecast of c. 160 kboepd and an unusually high level of asset shutdowns during 2021, driven by COVID-19-related 2020 maintenance deferrals. The COVID-19 related suspension of some drilling activities in 2020 has also impacted the 2021 production forecast. Operated portfolio: J-Area averaged 31 kboepd (net), with the impact of water breakthrough in the Palaeocene wells ameliorated by an active drilling and workover programme which is expected to continue into 2021. The joint venture partners are considering adding a second drilling unit in late 2021 to appraise the Talbot discovery and to drill the Dunnottar exploration prospect. Greater Britannia Area averaged 40 kboepd (net), benefitting from excellent uptime and better than expected well performance from the Brodgar satellite field. Chrysaor expects first production from the Callanish F5 well in Q1 2021. In the AELE (Armada, Everest, Lomond and Erskine) area, production averaged 31 kboepd (net). In December, Chrysaor sanctioned the LAD infill development well at Everest East with drilling scheduled for Q3 2021. Non-operated portfolio: The Total-operated Elgin Franklin area averaged 19 kboepd (net), ahead of expectations with the fields benefitting from very high production efficiency and an ongoing infill drilling and well intervention programme. The operator is currently planning facilities and integrity work towards a potential extension of field life. Production from the Buzzard field averaged 19 kboepd (net). Phase 1 infill drilling has delivered on or above target while Buzzard Phase 2 drilling results have been towards the lower end of expectations. Drilling has now been paused and further wells and side-track activity will wait until after the Phase 2 wells have been brought onto production, now expected in December 2021. Beryl Area fields averaged 17 kboepd (net), supported by an ongoing well intervention programme and continued infill drilling. Exploration activity in the Beryl area Tertiary play has been positive so far with two successful wells drilled on the Solar and Corona prospects. Chrysaor’s operating costs (including net tariff costs) for the 11 months to the end of November averaged $11.4/boe. Chrysaor expects unit operating costs to be higher in 2021 than the 2020 outturn, but below its long-term target of $15/boe (including net tariff costs). This is as a result of lower forecast production and increased maintenance expense in 2021. Chrysaor’s total capital expenditure (including exploration and decommissioning) to the end of November 2020 was $651 million. Chrysaor expects total capital expenditure for the full year 2020 to be around $718 million. This is approximately $575 million lower than forecast at the outset of the year, reflecting the pause in non-essential platform activity and the suspension of operated drilling activities for nearly six months. Chrysaor expects total 2021 capital expenditure to be in the range of $750-850 million, principally relating to drilling and development activities at J-Area, AELE, Beryl and Buzzard field, and including c. $170 million for decommissioning (pre-tax relief). Chrysaor benefits from a significant hedging programme with approximately 67 per cent of its 2021 1H oil volumes hedged at an average price of $60/bbl, and 73 per cent of its 2021 1H gas volumes hedged at an average price of 42 pence/therm. Enquiries Premier Oil plc Richard Rose, Finance Director Elizabeth Brooks, Head of Investor Relations 020 7824 1116 RBC Capital Markets(Financial Adviser, Sponsor and Joint Corporate Broker) Matthew Coakes Martin Copeland Paul Betts Rupert Walford Elliot Thomas 020 7653 4000 Jefferies (Joint Corporate Broker) Tony White Will Soutar 020 7029 8000 Camarco (Advisers to Premier, UK & International Media) Billy Clegg Georgia Edmonds 020 3757 4983 Chrysaor enquiries Brunswick Group(Advisers to Chrysaor, UK & International Media) Patrick Handley Will Medvei 020 7404 5959 Sard Verbinnen & Co.(Advisers to EIG, US Media) Kelly Kimberly Brandon Messina +1 212 687 8080 Investors . |
Posted at 28/8/2019 09:57 by master rsi Not easy but managed to get the report without registering ...........PMO - Premier Oil Is Cheap, But Upside Is Doubtful Aug. 27, 2019 6:10 PM - Vasily Zyryanov In 1H19, Premier Oil improved both the P&L and cash flow statements; FCF soared on the back of higher production and lower costs of operations. The company initiated a sales process of its stake in the Zama field offshore Mexico to repay debt. Due to the uncertainty over the global recession and weak revenue growth in the 2020s, I rate the stock as "Hold." Premier Oil (OTCPK:PMOIF, OTCPK:PMOIY), the London Stock Exchange-listed exploration & production company, currently trades at only ~0.7x P/B and ~3x EV/EBITDA. This level may seem attractive for value investors who seek underappreciated companies with a decent strategy, reasonable governance, and a possible turnaround in the short term. One of the culprits of low trading multiples is April-August 2019 sell-off. For broader context, since August 2018, the FTSE 250 constituent's market capitalization plummeted from ~$1 billion to ~$621 million. The primary downside catalyst was Brent price volatility, which arose from the global demand concerns stemming from a trade war. The oil price was also the essential catalyst of Premier's recuperation in the first half of 2019 when its share price had soared ~57.5% from January until late-April. In a few cases, cheap valuation stems from deep, cardinal issues that are not noticeable upon cursory inspection. In the article, I intend to examine the available financial information and conclude if bargain-level ratios are fully justified or imperfect valuation arises from temporary inefficiency and emotional bearishness of the market and will be eliminated soon, thus creating a lucrative investment opportunity. Now let's take a more thorough look at the company. The top line Incorporated in Scotland, Premier Oil generates the bulk of revenue (and EBIT) in the United Kingdom (the Catcher Area, Huntington, the Solan field, etc.) Blocks offshore Vietnam (the Chim Sáo and Dua fields) and Indonesia (e.g., Natuna Sea Block A) also contribute to the top line, but to a lesser extent. The total production in 1H19 added up to record 84.1 kboepd (10% higher than in 1H18); 41% came from its flagship asset, the Catcher Area offshore Great Britain. The Catcher performs prodigiously; the company even anticipates to increase its reserves in end-2019 due to strong subsurface performance (see p. 2 of the release). The most recent half-year results presented on August 22 contained a few improvements worth meriting. All the essential metrics like revenue, EBITDAX (a 39% increase compared to 1H18), EPS (a 23.4% increase), and FCF (defined by the company, see glossary on p. 48) were far better than in 1H18; net operating cash flow more than doubled. These results were achieved on the back of higher production and high operational discipline. Speaking about growth prospects, I should mention that Premier currently develops the Tolmount gas field in the Greater Tolmount Area, on schedule and below budget. First gas from the field will support 4Q20 and FY21 revenue and operating cash flow. Also, first gas from Bison, Iguana, and Gajah-Puteri (BIG-P) fields offshore Indonesia will bolster the top line in 1Q20. Deleveraging is vital One of Premier's key drawbacks is that it is saddled with a total debt of $2,386 million, which translates into a Debt/Equity ratio of 2.15x. At the same time, Net debt/EBITDA (I used LTM EBITDA figure provided by Seeking Alpha Essential) stands at 2.16x, which is not ideal but also not terrifying. Apart from that, due to the increasing amount of borrowings, interest expense (on an accrued basis) soared in 2016 compared to 2015 and, since then, has been continuously growing, hammering the bottom line. As my esteemed readers likely know, it is not just tough and challenging, but nearly impossible to create shareholder value and prop up Market Value Added when the balance sheet is burdened by immense debt. Yet, Mr. Market does not always reprimand stocks that have humongous debt. Here I should remind that Swedish E&P company Lundin Petroleum (OTCPK:LUPEY) even has negative net worth due to cyclopean amount of borrowings on the balance sheet; yet, investors, mesmerized by revenue growth prospects secured by the Johan Sverdrup oilfield and calmed by safe Net debt/EBITDA ratio (interest expense is minuscule, by the way), are ready to even pay a premium for the share. Premier Oil picked a method that energy companies across the globe actively used to ameliorate their capital structures and enhance returns during the oil market meltdown. It decided to divest the stake in the prolific Zama field (810 mmboe in gross resources) offshore Mexico and fully exit the project while retaining a stake in the adjacent Block 30. As the firm trims its exposure to the project, it becomes apparent that growth is not its priority at the moment. It has both pros and cons. Let me briefly clarify this. If an oil company scales down exploration activities or divests stakes in prolific oil fields that are currently under development, it can receive substantial cash proceeds and reduce the value of long-term assets on the balance sheet, thus boosting returns and reducing future capital investments. At the same time, if because of divestments future production will be too tepid, lower revenue will put pressure on margins jeopardizing EPS, FCFPS, FROIC, and Market Value Added. So, I hope Premier has carefully pondered all the pros and cons. If debt reduction pans out, the market appreciation might follow. Lower interest expense, in turn, will ease pressure on the bottom line. But to regain investor credit, the firm should also proactively manage opex to be able to consistently increase EPS despite soft revenue caused by weaker Brent. Free cash flow According to IAS 7 Statement of Cash Flows, interest paid may be classified as operating, investing, or financing cash flows. In this regard, I recommend taking a more in-depth look at the IFRS EU cash flow statements when computing levered FCF (FCF to Equity) because if we simply deduct capex (e.g., additions to PP&E or oil & gas properties) from net CFFO, we overlook an essential point, especially in the cases of overleveraged companies: interest that was not accrued but actually paid during the period. GAAP requires to classify interest paid only as a component of operating activities; thus, investors who are focused on the US stock market should bear in mind that non-US companies quite often report interest in the financing section of the CFS. So, Premier Oil reported 1H19 FCF of $182 million. This non-IFRS measure was defined by the company as Positive cash flow generation from operating, investing and financing activities excluding drawdowns from and repayments of borrowing facilities. I estimate half-year after-interest FCF to equal $313.8 million (net CFFO minus capital expenditure and interest paid; see the condensed CFS on p. 27 to find these items). Adjusted for decommissioning and lease liability payments, FCF equaled to $186.2 million. This is far better than in 1H18 when FCF (net CFFO after capex and interest paid) was negative $65.2 million. So, Premier did a great job not only boosting accounting profit but also improving cash flows. Dividend The dividend was eliminated in 2015 when Premier had to grapple with oil market headwinds. DPS cut or elimination is always a bitter pill to swallow, but sometimes shareholder rewards not supported by FCF (especially when Debt/Equity ratio approaches unhealthy level) could easily push a company on the brink of insolvency. As Premier's debt burden is still significant, I see that dividend introduction is unlikely in the short term. A quick valuation I suppose it is worth applying EV/EBITDA and EV/Production ratios to compare Premier with its closest peers: Cairn Energy (OTCPK:CRNCY) and EnQuest (OTCPK:ENQUF). Cairn and EnQuest have not presented their 1H19 results yet, so, I used 2018 data. Cairn Energy trades at EV/EBITDA of 7.4x and EV/Production of 67.6x (considering 1.2266 exchange rate to convert GBP to USD). At the same time, EnQuest trades at 2.7x EV/EBITDA and 39x EV/Production. Premier's debt and equity investors are ready to pay $3 per dollar of EBITDA and $35.6 per barrel of oil equivalent. In sum, Cairn looks overvalued as its operating results were distorted by impairment; however, production figures were also not stellar. Both Premier and EnQuest are undervalued, and the main culprit is leverage. Bargain-level valuation is surely not fully justified, as the company's performance is improving. Yet, I reckon in the short term Brent price will not be supportive of the expansion of multiples, as the trade war escalation takes a toll on traders' sentiment. Final thoughts Canny investors who are constantly seeking value stocks with decent prospects may consider Premier Oil as a top pick. However, I suppose they should take into account the anticipated revenue decline in 2020-2022 and tepid EPS growth despite the Tolmount gas field on stream in 2020. At the same time, it is worth noting that Premier could increase 2019 revenue ~13.3% compared to FY18. However, the company pays no dividend and operates in a cyclical industry; hence, it is not apt for a recession-proof portfolio. According to Seeking Alpha Essential, the sell-side analysts are currently pronouncedly bullish. Their sentiment is likely inspired by Premier's merits as high operating efficiency in the Catcher Area and possible reserves increase, more resilient FCF and improved ESG score (e.g., due to minimized emissions at the Tolmount and Solan). Nevertheless, speaking about the market sentiment, I should remind that the Fear & Greed Index provided by CNN Money as one of the key indicators of the current sentiment in the US shows Extreme Fear. Investors are concerned with the repercussions of the trade war, while it is entirely uncertain if new rate cuts will be enough to stave off a global recession. All in all, Premier Oil is a "Hold." However, I do acknowledge that if a trade war is temporarily settled (before likely reignited again, as we have already seen this year) and news headlines serve as catalysts of greed on the stock market, oil stocks will rally. Among the key short-term catalysts may also be the results of the Tolmount East appraisal well and new investor interest to the Sea Lion project offshore the Falkland Islands. Deleveraging also remains vital. Note: Because of unsatisfying liquidity, ADRs do not fully reflect the ordinary share price movement on the LSE. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. |
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