Archive for January, 2012

Chevron 4Q Net Falls 3.2%

Posted in Gas Industry, Oil Drilling with tags , , , on January 27, 2012 by amandarandjtech
by  Dow Jones Newswires
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Melodie Warner

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Friday, January 27, 2012

 

Chevron Corp.’s fourth-quarter earnings fell 3.2% as the oil-and-gas producer posted a loss in its downstream segment.

The results were well below expectations.

Chevron warned earlier this month its fourth-quarter earnings would be significantly lower than the prior quarter, which was buoyed by higher margins and the sale of a U.K. refinery and other assets to Valero Energy Corp. U.S. oil prices rose steadily during the quarter while fuel demand has been flat, a combination that has eroded refining margins.

Rival ConocoPhillips said Wednesday its fourth-quarter earnings rose 66% as higher oil prices helped boost revenue 17% despite a drop in production and weak refining profits.

Chevron reported a profit of $5.12 billion, or $2.58 a share, down from $5.32 billion, or $2.64, a year earlier. Revenue jumped 11% to $60 billion.

Analysts polled by Thomson Reuters had most recently forecast earnings of $2.84 on revenue of $70.96 billion.

Exploration-and-production earnings rose 18% to $5.74 billion on higher prices for crude oil, while the downstream segment swing to a loss of $61 million. Chevron had projected breakeven earnings from its refining, marketing and chemical operations, known as the downstream segment, due to the lower margins and refinery input volumes.

Shares were off 1.5% at $105.03 premarket. The stock has fallen 2.2% over the past three months through Thursday’s close.

Copyright (c) 2011 Dow Jones & Company, Inc

 

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Parker Drilling Wraps up Alaska Drilling Rigs

Posted in Oil Drilling, R&J Technical Services with tags , , , , , , , , on January 19, 2012 by amandarandjtech
Parker Drilling Wraps Up Alaska Drilling Rigs
by  Parker Drilling
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Press Release

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Tuesday, January 17, 2012

Parker Drilling announced that completion of its two new-design Arctic Alaska Drilling Units (AADUs) has been delayed to allow the Company to modify the rigs to meet their design and functional requirements. The need for the modifications was determined as a result of comprehensive safety, technical and operational reviews during recent commissioning activities of these prototype drilling rigs. The modification work will extend the commissioning activities and increase the rigs’ total costs.

As a result of the extended construction and commissioning schedule and related increased costs, the two rigs’ cost at completion is currently estimated to be $385 million, which includes capitalized interest of approximately $49 million. This cost exceeds the estimated fair value of the rigs based on their projected cash flows. In order to adjust the rigs’ values to their estimated fair value, the Company expects to record a pre-tax, non-cash charge in the 2011 fourth quarter of approximately $171 million. This is expected to reduce 2011 fourth quarter after-tax earnings per share by approximately $0.95.

The AADUs represent a new class of drilling rig that incorporates some of the most advanced features available in the global land rig market, including a safety-engineered, state-of-the-art equipment package; a highly automated drilling system; zero-discharge capabilities; and a modular design allowing the entire rig to transport itself in three, fully-enclosed mobile units.

“Our intent is to deliver to our customer and to Alaska’s North Slope drilling market a more productive drilling rig than what is currently available. We expect the AADUs to establish a new standard of performance for arctic drilling programs,” said Parker Drilling President and Chief Executive Officer, David Mannon.

“The unique design for these new, technologically-advanced rigs posed engineering, construction and commissioning challenges that have resulted in unanticipated design modifications, delays and cost increases. The actions we are taking are important to meeting the operational and safety objectives we desire. We continue to work diligently toward completion of this project,” said Mannon.

A message to R & J employees from the President of the company

Posted in Oil Drilling, R&J Technical Services with tags , , , , , , , , on January 13, 2012 by amandarandjtech

            As we enter another year, I would like to say how much I appreciate everyone’s hard work.  We continually get a little better each year, and I appreciate the progress.  We are continually being challenged with different issues, but as a team, we are effectively addressing those issues.  We have very unique challenges due to the nature of the work, and the location we work in.  As we grow and change, I appreciate the people that stay with us and accept the challenges.  As a company, we make every endeavor to make it your jobs as rewarding as possible without jeopardizing our long-term goals.  We strive for everyone to be able to retire from R & J, not as just a temporary stopping point, and it takes commitment from top to bottom. 

~Ron Houskeeper

Check out our Blog

Posted in Uncategorized on January 11, 2012 by Kirstin Harris

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Hilcorp purchases Chevron’s Cook Inlet Assets

Posted in Electricians, Gas Industry, Oil Drilling, R&J Technical Services with tags , , , , , , , , , , , , , , on January 6, 2012 by amandarandjtech

Hilcorp buying Chevron’s Cook Inlet assets

Hilcorp Alaska LLC and Chevron announced that Chevron’s wholly owned indirect subsidiary, Union Oil Company of California, has agreed to sell its Cook Inlet, Alaska oil and gas assets to Hilcorp.

Financial terms were not disclosed.

The transaction closed at the end of 2011.

Assets in the sale include Union Oil contracts and interests in the Granite Point, Middle Ground Shoals, Trading Bay and MacArthur River fields; interests in 10 offshore platforms; interests in onshore gas fields including the Ninilchik unit and the Beluga River unit; and two gas storage facilities.

Current net production from the assets is some 3,900 barrels of oil and 85 million cubic feet of natural gasper day.

The sale also includes interests in the Cook Inlet Pipe Line Co. and Kenai Kachemak Pipeline LLC.

Chevron will retain its non-operated joint venture interests on the Alaska North Slope and its 1.36 percent interest in the Trans Alaska PipelineSystem.

Hilcorp, founded in 1989, is one of the largest privately held independent oil and natural gas exploration and production companies in the United States. Hilcorp is headquartered in Houston, has more than 700 employees and nine operating areas including the Gulf Coast region, the Gulf of Mexicoand the Rockies.

Operating across the United States, Hilcorp continues to grow by actively acquiring and exploiting conventional assets while expanding its footprint into a number of new resourceplays.

Hilcorp has been recognized for its progressive culture, values and ethics.