|Bid||17.05 x 0|
|Ask||17.21 x 0|
|Day's range||16.55 - 19.51|
|52-week range||10.02 - 120.70|
|Beta (5Y monthly)||2.36|
|PE ratio (TTM)||0.95|
|Earnings date||05 Mar 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||16 Apr 2014|
|1y target est||1.84|
Most North Sea oil and gas fields can make money at $30 a barrel, but stakeholders in the fields that have to be shut in the current price rout are set to face a huge bill for removing facilities like platforms and subsea infrastructure, Wood Mackenzie said. The North Sea between Britain and Norway, home of the Brent crude stream that underpins global oil prices, is one of the world's oldest and most expensive oil basins. Crude oil prices have posted four straight weeks of losses and dropped more than 60% since the start of the year.
Premier Oil plc (LON:PMO) shareholders are doubtless heartened to see the share price bounce 31% in just one week. But...
Britain's oil and gas sector needs financial help to survive, industry body OGUK said, as the oil price crash triggered by the coronavirus and a Saudi-Russian price war means they may be unable to keep producing hydrocarbons in the North Sea. Benchmark oil prices on Wednesday fell to around $25 a barrel, their lowest level in 17 years, as measures to tackle the virus outbreak have had a drastic impact on demand.
The Premier Oil (PMO) share price is rising fast. Roland Head explains what's happening.The post The Premier Oil share price is up 60% today! Here's what I'd do now appeared first on The Motley Fool UK.
Can the Premier Oil share price survive stock market volatility and will the price of oil fall below $20? The post Is the Premier Oil (PMO) share price surge a dead-cat bounce after crashing 88%? appeared first on The Motley Fool UK.
Oil prices were set for their worst weekly drop since the 2008 financial crisis, with major oil producing countries planning to add more crude to an oversupplied market. Premier joins oil major Chevron Corp and Occidental Petroleum Corp in exploring ways to cut spending amidst the crash in prices.
(Bloomberg) -- Premier Oil Plc needs to review its debt obligations as it could lose more than $1 million in cash per day with oil prices below $40 per barrel, according to its largest creditor.The U.K. explorer is seeking court approval for the acquisition of oil and natural gas fields in the North Sea and the extension of more than $2 billion debt maturities to 2023.The plans, however, seem far-fetched following crude’s biggest collapse in a generation this week. At current levels, the company could burn through $1.2 million in cash per day, Asian Research & Capital Management said on Thursday. Premier held $151 million of cash reserves at the end of 2019 and an additional $314 million in undrawn facilities.“Premier Oil should be focusing on its cash flow position and protecting the balance sheet as a matter of priority,” ARCM said Thursday in a statement. “We encourage the company to engage with its creditors to find a long-term solution which would significantly reduce leverage and provide a stable balance sheet.”The hedge fund owns more than 15% of Premier’s debt and also holds a short position on 17% of the explorer’s shares. ARCM has campaigned against Premier’s proposal to invest in North Sea assets and is seeking in court to block the firm’s plans, which are supported by the majority of remaining creditors. A hearing on the case is scheduled in Edinburgh on March 17.Premier Oil declined to comment.The London-based producer has a cash breakeven price of $47 a barrel, of which $18 is allocated to capital expenditure. When oil prices fall, companies typically tighten their belts by reigning in costs.Read more: Premier Oil Wins Lender Backing in Its Quest to Extend DebtPremier Oil negotiated the acquisitions in the autumn of 2019 using high forward prices, ARCM said in the statement. “We believed these estimates were unrealistic at the time and are even more unrealistic today.”The purchase is based on oil-price assumptions of around $60 to $70 a barrel for the next five years, and gas price estimates of 40 pence to 57 pence (41 cents to 73 cents) per therm in the same time frame. Brent crude prices were trading at $33.42 at 12:03 p.m. London time.Premier Chief Executive Officer Tony Durrant said on March 3 that the company would not change its oil price forecast of $65 a barrel for this year and 2021. That was before talks between the Organization of Petroleum Exporting Countries and Russia collapsed last week and no new production curbs deal was agreed.If the court approves Premier Oil’s plan, management will ask for shareholder backing for the acquisition and a $500 million capital increase, which is currently three times its market capitalization.(Adds Premier comment, details of undrawn facilities, cash breakevens, oil price from third paragraph.)To contact the reporters on this story: Luca Casiraghi in London at firstname.lastname@example.org;Laura Hurst in London at email@example.comTo contact the editors responsible for this story: Vivianne Rodrigues at firstname.lastname@example.org, Helen Robertson, Christopher SellFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Short positions on Tullow Oil shares hit a more than 15-month high on Monday, data from industry tracker FIS' Astec Analytics showed, in a sign of investors growing pessimism over the company's prospects ahead of its 2019 results on Thursday. Shares in Tullow have nosedived around 92% in the past six months on the back of weak output in Ghana, delays in East Africa, lower-than-hoped-for oil quality in Guyana and a dry well in Peru. Tullow is cutting around a third of its workforce, seeking to sell stakes in some of its assets and hunting for a new chief executive.
The stockmarket crash has sent shares in Premier Oil (LON: PMO) and Tullow Oil (LON: TLW) plummeting. Are they screaming buys now?The post The Premier Oil and Tullow Oil share prices have crashed. Here's what I'd do now appeared first on The Motley Fool UK.
NEW YORK/LONDON, March 9 (Reuters) - Global stock markets plunged on Monday and crude oil prices tumbled by as much as a third after Saudi Arabia launched a price war with Russia, sending investors already spooked by the coronavirus outbreak fleeing for the safety of bonds and the Japanese yen. European stocks suffered hefty losses and a 7% slide in the S&P 500 at the open on Wall Street triggered a circuit-breaker put in place after the financial crisis a decade ago, halting U.S. stock trading for 15 minutes.
(Bloomberg) -- Fears that collapsing energy prices will push Europe’s most indebted oil firms to the brink triggered a massive sell off in their bonds and shares on Monday, adding to broader stress from the coronavirus.The selloff comes after the International Energy Agency warned global oil demand will fall this year for the first time since the financial crisis. Oil prices crashed more than 30% on Monday as a price war loomed between energy-exporting nations.With the outlook darkening for the sector, oil and gas companies are likely to have a tougher time persuading bankers to keep extending credit. Lenders evaluate the value of oil reserves used as collateral for loans twice a year and many companies are still weakened from the last oil-price rout in 2014.What Bloomberg’s Analysts SayWith high oil weightings in production mixes, relatively levered balance sheets still recovering from the 2014 downturn, higher operating costs, and some with unhedged exposure, Europe’s independent explorers and producers hold elevated exposure to downside oil price risk.\-- Will Hares, Bloomberg IntelligenceOil firms are also unable to turn to the bond market for new capital since primary issuance has been at a standstill over the coronavirus since last week. With few options for raising much-needed cash to service debt and cover day-to-day running, the sector faces a potential spike in corporate defaults, starting with the weakest, most levered names.Shares in Norwegian offshore driller Seadrill Ltd. fell as much as 44% on Monday. The company is already in talks with its banks over reviewing its $6 billion bank debt which was left over after a 2018 restructuring.Shares and bonds issued by U.K. oil producers Tullow Oil Plc, Premier Oil Plc and Enquest Plc dropped to multi-year lows while French oil-pipe maker Vallourec SA emerged as the worst performing company on the Bloomberg Barclays High Yield Index.Multi-Year LowsTullow Oil’s bonds due 2025 fell 9 cents on the dollar and its shares are at a quarter-century low. Premier Oil, one of the sector’s most indebted European companies that’s seeking court approval to extend maturities on its $2 billion debt, suffered an 84% share-price rout.Read More: Oil Demand to Drop This Year for First Time Since 2009, IEA SaysVallourec’s 2023 notes are quoted at 76 cents on the euro, down 15 cents since Friday, according to data compiled by Bloomberg while its stock fell as much as a third to the lowest on record. The company had been enjoying a bond-price rally after announcing plans to bolster its balance sheet with a capital hike.“The current market conditions will make it difficult for Vallourec to carry out the planned 800 million-euro capital increase,” according to Jan Patteyn, a credit analyst at Octo Finances in Paris.\--With assistance from Antonio Vanuzzo, Mikael Holter and Irene García Pérez.To contact the reporter on this story: Luca Casiraghi in London at email@example.comTo contact the editors responsible for this story: Vivianne Rodrigues at firstname.lastname@example.org, Chris VellacottFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
British North Sea-focused oil and gas producer Premier Oil has committed to carbon neutral operations at its fields by 2030, reporting a record free cash flow of $327 million last year, up around 30% and boosted by its flagship Catcher field. It said on Thursday it would develop its operated projects on a carbon neutral basis in respect of Scope 1 and Scope 2 emissions, referring to emissions from its direct operations and from the power supply it uses. Chief Executive Tony Durrant said greenhouse gas emissions that Premier could not eliminate from its operations through engineering would be covered by offset programmes such as planting trees near the oil and gas fields.
British North Sea oil and gas producer Premier Oil's 2019 profit after tax rose by just under a quarter to $164 million, it said on Thursday, its highest since at least 2014. Premier also committed to reducing its greenhouse gas emissions, saying it would be more than 65% carbon neutral by 2025 and 100% by 2030.
Mexican national oil company Pemex has begun signing contracts with oilfield service firms specifically invited to submit bids for a new batch of priority exploration and production projects, the state-owned company's chief executive said. CEO Octavio Romero said on the sidelines of an energy event in Ciudad del Carmen, home to numerous Pemex installations in the southern Gulf Coast state of Campeche, that the closed bidding process offers Pemex cost savings. Romero, a close confidant of President Andres Manuel Lopez Obrador, has previously said Pemex aims to discover and develop 20 new oil and gas fields each year, targets viewed as extremely optimistic by industry analysts.
The dispute over who will run operations for a major offshore oil discovery in Mexico could eventually come down to the technical opinion of the country's independent oil regulator, according to one of the body's commissioners. Closed-door talks between national oil company Pemex and a private consortium led by U.S.-based Talos Energy over who will control operations of the so-called Zama project in the southern Gulf of Mexico have recently slowed, according to the Talos chief executive. If they deadlock, the National Hydrocarbons Commission or CNH would be called upon to provide the country's energy ministry with a legally binding technical assessment that would determine the project's operator, Commissioner Sergio Pimentel said in an interview.
The vote supporting Premier's management is a blow to hedge fund ARCM, which holds 15% of Premier's debt and has had a growing short position in its shares since 2017, currently around 17% of its stock, some four times higher than the average for London-listed firms. ARCM has fought a heavily publicised battle against Premier's plans, saying they were based on too-high commodity price assumptions, too-low decommissioning liability estimates and would make Premier too dependent on a weak gas market. Shares in Premier Oil spiked higher following the announcement, and by 1317 GMT they were up 3.1% at session highs.
Creditors of Premier Oil gave the indebted oil and gas producer their approval for $800 million of North Sea acquisitions under a scheme that would allow it to delay debt repayments and issue new shares. The vote supporting Premier's management is a blow to hedge fund ARCM, which holds 15% of Premier's debt and has had a growing short position in its shares since 2017, currently around 17% of its stock, some four times higher than the average for London-listed firms. ARCM has fought a heavily publicised battle against Premier's plans, saying they were based on too-high commodity price assumptions, too-low decommissioning liability estimates and would make Premier too dependent on a weak gas market.
The company is set to buy North Sea assets from BP and increase its stake in the Tolmount gas project, funded by a $500 million (380.40 million pounds) rights issue, but faces opposition from hedge fund Asia Research and Capital Management (ARCM), which has vowed to fight the plans. The indebted company won permission from a court last week to have its creditors vote on the planned acquisitions of North Sea assets for around $800 million. Premier Oil plans to hold a creditor meeting to vote on the scheme on Feb. 12, with a hearing to sanction the action decided by the vote expected to take place in March.
Indebted Premier Oil won permission from a court on Thursday to have its creditors vote on planned acquisitions of North Sea assets for around $800 million under a scheme that would allow it to delay debt repayments and issue new shares. Premier Oil said in a statement that it will hold a creditor meeting to vote on the scheme on Feb. 12, with a hearing to sanction the action decided on in the vote expected to take place in March. Hedge fund ARCM, which holds around 15% of Premier's debt and has had a growing short position in its shares since 2017 - currently around 17% of its stock, some four times higher than the average for London-listed firms - rejected the plans.