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Devon shifts to success-based accounting
Devon Energy Corp. has changed its method of accounting for oil and gas exploration and development activities from full-cost methodology to one focused on successful efforts, the Oklahoma Citybased company said.
Fourth-quarter and full-year 2017 results, which are scheduled to be released Feb. 20, will reflect the change, along with detailed information related to the conversion and a reconciliation of financial results.
“The conversion to successful-efforts accounting is one of many shareholder-friendly initiatives underway at Devon,” Chief Financial Officer Jeff Ritenour said. “We believe the conversion to successful efforts will provide greater transparency into our financial performance, allowing us to better showcase the top-tier returns we’re achieving with our disciplined capital program.”
Jericho Oil expands presence in STACK
TULSA — Jericho Oil Corp. will participate in the drilling of between two and five horizontal wells in Major County as part of a farm-in agreement through its Oklahoma STACK Joint Venture, the company said.
The effort will allow Jericho to grow its STACK acreage position by about 30 percent at a discount to recent STACK transactions, participate in the drilling of multiple horizontal wells targeting the Osage formation, collect well data and effectively grow production, the company said.
“This transaction puts the company in a good position to cost-effectively boost its strategic acreage position in the prolific STACK play, said Ryan Breen, Jericho’s director of corporate development.
Cushing-to-Patoka pipelines announced
MPLX LP subsidiaries MPLX Ozark Pipe Line LLC and Marathon Pipe Line LLC have begun an open season on the combined Ozark 22-inch and Woodpat 22-inch pipelines from Cushing to Patoka, Illinois. The open season will run through Feb. 16.
The Ozark is a 433-mile line that transports up to 230,000 barrels of oil daily from Cushing to Wood River, Illinois. The Woodpat is a 55-mile line that carries up to 215,000 barrels per day from Wood River to Patoka, Illinois. An expansion project is expected to increase the capacity of both lines to 345,000 barrels per day.
“We are pleased to announce the Cushing-to-Patoka Expansion Project as Midwest markets desire further access to West Texas Intermediate crude. This expansion will provide additional capacity for shippers while positioning the partnership to grow its distributable cash flow,” MPLX President Michael J. Hennigan said.
Oil attorney to speak at conference
Mark D. Christiansen, an energy litigator with McAfee & Taft’s Oklahoma City office, will speak at the Oil & Gas Law Conference in Houston on Feb. 15 and 16, the firm announced.
Christiansen will join a panel of other attorneys from Houston and Fort Worth to discuss the latest trends in oil and gas class-action royalty lawsuits.
In November, Christiansen spoke at the Energy Litigation Conference in Houston and provided a national energy litigation update for 2017.
SynGas Association event is April 16-18
TULSA — The SynGas Association will host its annual 2018 event in Tulsa, April 16-18, it has announced.
Its “Success Through Synergy” event will be held at the Tulsa Marriott Southern Hills Hotel and will be keynoted by Mark Eaton, who went from being a 7-foot, 4-inch tall mechanic who couldn’t play basketball to having a 12 year career as an NBA All-Star with the Utah Jazz.
Eaton will talk about team building and how what he learned helped him become a two-time Defensive Player of the Year, to break the NBA record for most blocked shots in a single season and to play in the 1989 All-Star Game.
SynGas 2018 attendees will be able to network and chase leads using new conference mobile technology as they attend educational breakout sessions and a trade show that highlights new products, the association said.
Companies announce Q4 distributions
Three Oklahoma-based midstream companies have announced their fourth-quarter cash distributions.
Magellan Midstream Partners said it will increase its quarterly cash distribution to 92 cents per unit, representing its 63rd distribution increase since its initial public offering in 2001. The new distribution, which equates to $3.68 per unit on an annualized basis, will be paid Feb. 14 to unit holders of record at the close of business on Feb. 6.
NGL Energy Partners announced its quarterly distribution will be 39 cents per unit, or $1.56 on an annualized basis. The distribution is payable Feb. 14 to unit holders of record at the close of business on Feb. 6. It also will pay a distribution Feb. 14 to preferred unit holders.
Blueknight Energy Partners announced its quarterly distribution will be 14.5 cents per unit and about 17.8 cents per preferred unit. The distributions are payable Feb. 14 to unit holders of record at the close of business on Feb. 2.