Oil Sands Expo’s Post

BP seeks sale of US pipeline stake to reduce debt BP's 1,500-mile pipeline network transports 1.1 million barrels per day (mbbl/d) of fuel across the US. https://lnkd.in/e773xvDe

𝐀𝐯𝐚𝐧𝐜𝐞 𝐆𝐚𝐬 𝐒𝐞𝐥𝐥𝐬 𝐕𝐋𝐆𝐂 𝐅𝐥𝐞𝐞𝐭 𝐭𝐨 𝐁𝐖 𝐋𝐏𝐆 𝐟𝐨𝐫 $𝟏.𝟎𝟓 𝐁𝐢𝐥𝐥𝐢𝐨𝐧 Avance Gas Holding Ltd., a leading global operator in the transportation of liquefied petroleum gas (LPG), has agreed to sell its fleet of Very Large Gas Carriers (VLGC) to BW LPG Ltd for $1.05 billion. The Avance Gas VLGC fleet currently consists of eight eco VLGCs built in 2015 and four dual-fueled VLGCs built in 2022 and 2023. The transaction is regulated by 10 individual Memorandum of Agreements (MoA) for the 10 owned VLGCs, while the remaining two VLGCs on sale-leaseback agreements (SLB) will have their existing debt obligations novated. The delivery of the ships to BW LPG is scheduled between September 15 and December 31, 2024, allowing Avance Gas to trade the ships for a further period during the winter market. The VLGC fleet’s estimated book value at delivery is $730-$740 million, with an expected profit from the sale of $310-$320 million. Avance Gas sold four VLGCs in the first half of 2024, profiting $121 million, leading to a total expected profit of approximately $435 million for the full year 2024. The sale will be settled with $585 million in cash, $132 million in debt novation, and 19.282 million shares in BW LPG valued at $333 million, making Avance Gas the second-largest shareholder of BW LPG with a 12.77% shareholding and a 40-day lock-up on the shares. Net cash proceeds are expected to be approximately $217 million, contributing to a pro forma cash balance of $257 million. The company generated positive cash flow in the second quarter with an average TCE rate of $48,000 per day and will terminate $10 million in interest rate derivatives before ship delivery. After the transaction closes, Avance Gas will own four medium-sized gas carriers (MGC) capable of carrying full ammonia cargoes, a 12.77% shareholding in BW LPG, and a substantial cash holding. “The fleet of Avance Gas is currently somewhat sub-scale, and we have found it more beneficial for our shareholders to capitalize on the relatively high second-hand prices and sell the VLGC fleet to BW LPG,” said Øystein Kalleklev, Chief Executive Officer of Avance Gas. “The sale will generate approximately $315 million in profit while allowing us to potentially make a trading profit until delivery of these ships to the buyer.” Kalleklev assured that the profits from the sale will enable significant dividends for shareholders “We will provide more details in our second quarter results presentation on August 28, but shareholders can rest assured that the profits generated belong to them and will be distributed in a timely manner once the transaction concludes,” he said. The transaction is subject to the approval of novation of SLB for the leased VLGCs, the charterer’s approval of novation of Time Charter for the three VLGCs on Time Charter, and customary closing procedures under the MoAs.

bp released its 1Q24 Results today. One of their three highlights: "Growing shareholder distributions." Later in release, they expanded by stating: "A resilient dividend is bp's first priority within its disciplined financial frame" https://lnkd.in/e-xJ5uTp Like many other oil and gas producers, bp recognises the power of dividends. When will Karoon Energy come to the same conclusion? #shareholdervalue #goodgovernance #whodat

Steady sailing from FLEX LNG with Q2 numbers spot in guidance. Once again we are paying out a quarterly dividend of $0.75 per share which brings the total dividend the last three years to a whopping $528m 💰 Please join our live video webcast at 15:00 CEST / 09:00 am EST and enjoy this one minute highlights video in the meantime. #shipping #energy #maritime #lng #naturalgas #gas #investing #fianance

🚢 FLEX LNG Q2-2024 Financial Results 🚢 We are presenting our second quarter results today August 14, and we are delivering in line with our guidance: 📊 Revenues: $84.7m, matching our guidance of “close to $85m” 🚢 TCE rate: $72,400 vs. our guidance of $70-75'/day 💰 Adj. EBITDA: $63.2m compared to our guidance of “close to $65m” 🎯 During the quarter we have fixed out Flex Constellation for firm 10-months until Q1-2025 with a charterer’s option until Q1-2026, and we have received credit approved term sheets for $430m in refinancings at very competitive terms with approx. $96m in net cash proceeds. 💰 With $370m cash on balance sheet as per end Q2-2024, this would grow our PF cash to $467m. The mentioned refinancings will also extend some of our 2028 debt maturities, further improving our maturity profile 🔥 With a very strong cash position, 47 years of firm contract backlog which can increase to 66 years with charterer’s extension options, and no debt maturities prior 2028, the Board has decided to declare another ordinary quarterly dividend of $0.75 per share, a total of $40m in total quarterly cash distributions. Our running 12-month dividends now amount to $3.125 per share, yielding an attractive 12% on our current share price of ~$26/share. Since Q3-2023, Flex LNG has declared and distributed $528m in dividends💰 ⚡ We have summarized the key highlights of the second quarter in the link below. We will host a live video webcast at 15:00 CEST / 09:00 am EST. During the webcast, our CEO, Oystein Kalleklev, and CFO, Knut Traaholt, will present the numbers, delve deeper into the LNG markets, and round off with a Q&A session. The best question in the Q&A session will win exclusive FLEX LNG merchandise, including: "Just Flex It" T-shirt, Flex on the Beach flip-flops, and the exclusive FLEX LNG cap.

"The transition of U.S. E&Ps to capital discipline has led to historic shareholder returns and won back legions of investors who had virtually abandoned the industry until a few years ago. But while it might be tempting to conclude producers must finally have their financial houses in good order, a lot of us have witnessed a few boom-and-bust cycles in our time and remain hypervigilant for any signs of financial instability, especially considering that commodity prices could weaken at any time. In today’s RBN blog, we analyze the impact of lower price realizations and capital allocation decisions on the balance sheets of the major U.S. independent oil and gas producers. " https://lnkd.in/eRhNG8G6 #explorationandproduction #debt #financialposition #oilandgas #oilandgasindustry #

Petrofac – shares suspended as financial pressure mounts   Petrofac’s results have been delayed. Whilst financing discussions are ongoing, the Company expects to miss a forthcoming bond payment. 🔽 Find more info in comments below 🔽 #Petrofac #SharesSuspended #FinancialPressure #ResultsDelayed #FinancingDiscussions #CleanEnergy #OilandGasNews ⤵️ Click Follow on our page to keep up to date with energy news ⤵️

The volume of debt held by large U.S. oil and gas companies increased by $25 billion over the past year as they sought to maintain growth and return cash to shareholders. Capex, M&A, dividends, and share buybacks meant spending averaged $55-60 billion per quarter in 2023 for 43 U.S.-based operators that produce over 5,000 boe/d domestically. 👉 Read here: https://lnkd.in/gh_jh85x 📈 To learn more about access to a global portfolio of detailed financial performance, ESG, hedging, M&A, operational and asset level insights click here: https://lnkd.in/gsFixGn #oilandgas #energy #markets #data #analysis

🌐 CFOs in the oil and gas industry know the stakes. Delayed payments can strain cash flow, disrupt operations, and threaten profitability. When clients default, unpaid debts create financial uncertainty. At The Baker Group, we understand these challenges. Our contingency-based commercial debt collection ensures no collection, no fee—giving you risk-free recovery. 💼 We recover your funds professionally, preserving your valuable client relationships. Because your partnerships matter. This holiday season, let us handle the collections, so you can focus on what truly matters. The Baker Group — Recovering Debts, Restoring Trust. #OilAndGas #CFO #DebtCollection #CashFlowSolutions #NoCollectionNoFee #FinancialRecovery #BakerGroup #BusinessGrowth #PreservePartnerships #ContingencyCollection #HolidayFocus #RecoverWhatYoureOwed #RiskFreeRecovery

Successful Refinancing at Attractive Terms TGS has successfully refinanced the legacy PGS debt through a new $550 million senior secured bond issue targeted at US and European investors. This new facility, with an 8.5% interest rate and maturing in 2030, replaces the legacy PGS bond with a 13.5% rate. The 5 percentage points reduction in interest rates, in combination with new credit facilities, generates an annual savings of nearly $30 million for TGS. This strategic move strengthens our financial position allowing us to improve our ability of delivering unparalleled energy data and solutions. Closing of the transaction is expected to be 3 December 2024. Read the full release: https://hubs.ly/Q02Z1y_20 #TGS #FinancialGrowth #EnergyData