International Capital | PLS
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January 20, 2017 • Volume 09, No. 01 INTERNATIONALCAPITAL Serving the marketplace with news, analysis and business opportunities Petrobras kicks off 2017 with $4B notes sale 5x oversubscribed E&P capex to hit $450B among Owes $122.7B, last in the bond market in May for $6.75B world’s biggest companies Petrobras priced $4.0 billion in US-denominated notes for sale globally on Sixty of the world’s leading E&P Jan. 9 with a Jan. 17 closing for both issues. Issued by its sub Petrobras Global companies will spend about $450 Finance B.V., the company offered $2.0 billion principal amount of 7.375% senior billion in capex this year, up 3% YOY unsubordinated unsecured global notes due 2027 at 100 and $2.0 billion and stopping the two-year spending principal amount of 6.125% senior unsubordinated unsecured global notes decline, projected Wood Mackenzie. due 2022. The company said book order size for the combined offerings hit These companies will also make final more than $20 billion, making them more investment decisions on more than 20 than 5x oversubscribed. S&P rates Petrobras’ debt issuance a new upstream projects this year, up from B+, below investment grade. Banco Bradesco BBI, Citigroup, nine last year, while 40 large upstream HSBC, Itau BBA USA and Morgan Stanley underwrote the issues. Neither the projects are in the queue for decision. notes nor their offer for sale were registered with Brazil’s Comissão de Valores Mobiliários, therefore they can’t be offered or sold in Petrobras’ home country except WoodMac sees 3% growth, Barclays 7% in their samples’ capex spending. in circumstances that do not constitute a public offering or distribution under Brazilian laws and regulations. Continues On Pg 16 Barclays surveyed more than 100 Sinopec considering up to $12B retail unit IPO—again E&P companies and concluded their capital spending will increase an average 3 Chinese & 3 American banks will advise on offering of 7% this year, and research group China Petroleum & Chemical Corp., better known as Sinopec, is once again Rystad Energy sees the production considering an initial public offering of its gas station and convenience store unit, of 15.0 Bboe being approved in 2017 which could fetch up to $12 billion, people familiar with the matter told The Wall compared with just 6.0 Bboe last year. Street Journal and Reuters. The company is talking to banks about bringing Sinopec Macquarie analyst Iain Reid told the Marketing Co. public this year possibly on the Hong Kong Exchange, Financial Times that companies are the sources said. finally seeing a “floor beneath oil prices The company mandated Hong Kong listing possible, IPO an option among others. and their breakeven points are coming six banks to advise it on a restructuring down towards the same level.” of its fuel distribution unit. It tapped China International Capital, China Merchants Continues On Pg 10 Securities, CITIC Securities, Citigroup, Goldman Sachs and Morgan Stanley for the financial advisory role. Sinopec had invited 14 banks to pitch for the assignment, DEALS FOR SALE which would transition Sinopec Marketing from a LLC with fewer than 50 shareholders into a corporation that could accommodate more shareholders. Continues On Pg 8 ONSHORE AUSTRALIA FARMOUTS 7-Permits. 12,000 sq km. Faroe Petroleum enters new lending facilities worth $366MM COOPER-EROMANGA BASIN Delek now Faroe’s largest outside shareholder with 13.2% stake SURAT-BOWEN BASIN DV Faroe Petroleum signed two banking facilities, one denominated in US dollars One Ready To Drill Prospect. Active Exploration Programme And --- and one in Norwegian kroner, to help the UK- and Norway-focused independent --Flexible Farm-In Terms. ONSHORE finance growth plans. The company entered into a seven-year $250 million reserve- SEEKING JV PARTNERS based lending facility with a $100 million accordion feature that refinances a previous Unrisked Comb. Prospective: 70-100MMBOE RBL facility with a 2018 maturity. The company said it had no funds drawn CONTACT AGENT FOR UPDATE DV 8330FO down on the 2018 facility. The company can also $250MM RBL maturing 2023 replaces 2018-ending RBL, which was undrawn. SOUTHEAST ASIA GAS RESERVES borrow up to NOK 1.0 billion ($116.1 8-Wells. million) under a Norway Exploration Financing Facility for exploration and appraisal HIGH IMPACT OPPORTUNITY costs incurred specifically for work on the Norwegian Continental Shelf. In addition to Some Land & Title Issue To Resolve. DS the committed NOK 1.0 billion, the facility has an NOK 500 million accordion feature. NONOPERATED WI POSITION BANKRUPTCY DS 1013PP The facility matures in December 2019. BNP Paribas, BMO Capital Markets, Commonwealth Bank of Australia, Danske Bank, DNB Bank, ING, Royal Bank of Scotland, SEB, SR-Bank and PLS tracks thousands of deals for Wells Fargo are the committed lenders to the facilities. Rothschild and Pinsent sale at www.plsx.com/listings Masons advised Faroe. Continues On Pg 4 All Standard Disclaimers & Seller Rights Apply. INTERNATIONALCAPITAL 2 January 20, 2017 Xxxxx Europe International Upstream Market Movers—Last 30 Days Statoil will take $500-550MM $/Share $/Share % % Change Company Exchange 1/17/17 12/16/16 Change YOY loss on divestment After nearly 10 years, Statoil pulled YPF BASE:YPFD $21.10 $15.36 37% 51% out of Canada’s oil sands entirely, Ithaca Energy TSX:IAE $1.29 $1.07 21% 435% selling its two 100% operated Kai Kos QGEP BOVESPA:QGEP3 $1.87 $1.59 18% 67% Dehseh (KKD) lease areas to Athabasca Oil Corp. for Kosmos Energy NYSE:KOS $6.56 $5.73 14% 73% C$832MM ($626MM). Statoil Origin Energy ASX:ORG $5.40 $4.72 14% 94% will take a loss of $500-550MM on the sale, for which it received $435 million Top 10 Top Petrobras BOVESPA:PETR4 $4.93 $4.35 13% 288% Tatneft MISX:TATN $7.12 $6.47 10% 95% in cash, 100 million common shares of Athabasca valued at $147 million and up Oil Search ASX:OSH $5.51 $5.02 10% 27% to $250 million in a tranche of contingent Aker BP OB:AKERBP $18.66 $17.16 9% 268% payments triggered when and if WTI Cairn Energy LSE:CNE $3.01 $2.77 9% 60% tops $65/bbl. Statoil now owns nearly 20% of the equity in Athabasca, and Japex TSE:1662 $22.25 $23.58 -6% -8% it will manage that stake as a financial Pakistan investment rather than a strategic one. Petroleum KASE:PPL $1.72 $1.81 -5% 74% Inpex TSE:1605 $9.95 $10.45 -5% 16% Statoil gains nearly 20% stake in Athabasca, $435MM in cash from sale. Delek Drilling TASE:DEDR.L $3.63 $3.80 -4% 37% Novatek LSE:NVTK $125.20 $129.80 -4% 77% The company said Dec. 14 that its rationale for accepting Athabasca’s InterOil NYSE:IOC $48.21 $49.66 -3% 100% Bottom 10 offer was to “optimize” its portfolio by Tullow Oil LSE:TLW $3.85 $3.96 -3% 107% focusing on new core assets in places like Noble Energy NYSE:NBL $40.05 $41.16 -3% 45% US, Brazil and Norway. It also identified CNOOC SEHK:883 $1.27 $1.30 -2% 40% offshore Newfoundland as one of its core global areas. Chevron NYSE:CVX $116.28 $118.08 -2% 39% Note: data includes public, international companies operating in the oil & gas space, limited Core assets for Statoil are in US, Brazil to companies >$100MM market cap & >$1.00/share Source: CapIQ & home in Norway. Statoil entered the oil sands in 2007 Major Global Indices—% Change Past 30 Days when it bought North American Oil 3.0% Sands for $2.2 billion. It sold 40% of 2.5% it to Thailand’s PTTEP, which spun- off its assets into a separate business 2.0% in 2014. Statoil indefinitely postponed 1.5% development after that, citing profitability concerns amid low oil prices. 1.0% “The energy market has changed 0.5% since 2007 quite considerably, and the oil price has been a lot lower for longer, we 0.0% are focused on spending capital on core -0.5% assets, and our own portfolio has changed in that time,” said Paul Fulton, president -1.0% of Statoil’s Canadian affiliate. -1.5% S&P500 Dax Nikkei 225 FTSE 100 -2.0% Save time 1/2/17 1/4/17 1/6/17 1/8/17 sourcing 1/10/17 1/12/17 1/14/17 1/16/17 plus 12/15/16 12/17/16 12/19/16 12/21/16 12/23/16 12/25/16 12/27/16 12/29/16 12/31/16 critical data Source: Google Finance www.plsx.com/docFinder Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 01 3 ENERGYFINANCE 2017 capital raising off to Premier Oil & lenders agree to refinance $2.8 billion in debt placid but solid start Three fiscal quarters of discussion between Premier Oil and its 40-bank lending Crude oil prices have settled lower syndicate have finally resulted in consensus on the commercial terms of a very recently as the market wonders whether complicated financial restructuring of the company’s £2.28 billion ($2.8 billion) debt pledges to cut production made by load. The company expects to receive the long-form term sheet next month. various producers will actually stick. In a news release, Premier said the lenders will be offered warrants to NYMEX had WTI at purchase equity as a sweetener, Premier teases on restructuring plan IN THIS $52.37/bbl, and ICE had but it is not part and parcel of the ISSUE but says it will disclose all in Feb.