The Press and Journal (Inverness, Highlands, and Islands)
Energy Indicators
INDUSTRY NEWS
The Brent oil price rose this month to $45.87 per barrel on September 1, representing a monthly increase of 3.9%. The WTI price also rose, to $43.14, a monthly increase of 5.2%. Oil prices have risen as market concerns surrounding damage to the refining hub on the US Gulf Coast from large storms came to the fore. Additionally, oil consumption is remaining at a higher level than prior months as countries look to come out of lockdown, increasing demand for hydrocarbon fuels.
Equinor moved to appoint Anders Opedal as chief executive when Eldar Saetre retires in November. Currently head of technology, projects and drilling, Anders has been appointed to drive Equinor to becoming an increasingly ecologically- friendly firm. Chairman Jon Erik Reinhardsen said “Equinor is entering a phase of significant change as the world needs to take more forceful action to combat climate change”.
Occidental Petroleum has announced a deal to sell land assets in Wyoming, Colorado and Utah to Orion Mine Finance for around $1.3 billion. This comes as part of the company’s divestiture program whereby it is looking to deliver $2bn of divestitures in 2020. Vicki Hollub, Occidental’s chief executive, said of the deal: “We will retain our core oil and gas assets in the Rockies, including the prolific DJ Basin in Colorado and the highly prospective Powder River Basin in Wyoming.”
BP has halved its dividend as the firm operated at a loss in the first half of 2020, a result of pressures imposed by lockdown on demand for oil. This came after it was announced it would cut 10,000 jobs and expects to incur restructuring costs of $1.5bn in 2020.
Ithaca Energy announced the appointment of new chief executive Bill Dunnett, replacing Les Thomas.
Dunnett said of the company “I like the business model here and the asset base. There is a really good foundation that can move this up and put a long-term growing presence in the North Sea.”
COMPANY NEWS
The debt capital markets team at Simmons Energy, a division of Piper Sandler, successfully raised a $ 50 million ABL revolving credit facility for Lufkin Industries, a new portfolio company of KPS Capital Partners, LP, which can be upsized to $75m.
Lufkin, headquartered in Missouri City, Texas, is a leading provider of rod lift products, technologies, and services, including automated control and optimisation equipment and software for rod-lift equipment.
Simmons also served as exclusive financial advisor to ValTek Industries as it was acquired by Serva Group. ValTek is a leading, privately- held manufacturer of hydraulic fracturing pumps.