The Spin on Changing Marcellus Gas Estimates

- The Spin on Changing Marcellus Gas Estimates

Friday, August 26, 2011
The Philadelphia Inquirer
by Andrew Maykuth

So how much natural gas is in the Marcellus Shale?

The U.S. Geologic Survey on Tuesday estimated the formation contains 84 trillion cubic feet (Tcf) of natural gas, up from a mere 2 Tcf in 2002. Headlines exploded across the Internet: "Federal report boosts Marcellus Shale estimate."

But on Wednesday another federal agency, the U.S. Energy Information Administration, which just a month ago estimated the shale contained 410 Tcf, announced it was revising its number downward in response to the USGS estimate. New headlines: "U.S. Slashes Marcellus Shale Gas Estimate 80%."

Up? Down?

For adversaries in the increasingly politicized and polarized world of shale gas, the USGS's new assessment cuts both ways.

Anti-drilling activists said the EIA's downward revision supported their view that the industry has hyped the new discoveries to generate political and investor excitement.

"I remain concerned about the processes which lead to the original estimates, and I have additional questions about how this change will impact the outlook for shale gas," U.S. Rep. Maurice Hinchey (D., N.Y.) said in a statement.

But the Marcellus Shale Coalition, an industry trade group, touted the USGS's upward revision as further proof of the abundance of shale gas.

The issue is important because of the growing controversy about shale gas, which the EIA says accounts for about a quarter of the nation's natural gas production. The nation consumes about 25 Tcf a year, mostly for heating and power production.

The Securities and Exchange Commission and the New York State Attorney General's Office are investigating industry estimates of gas reserves, which are more optimistic than the federal projections.

Indeed, during recent sessions with investment analysts, four big Marcellus operators -- Chesapeake Energy Corp., Range Resources Corp., Ultra Resources Inc., and Cabot Oil & Gas Corp. -- estimated their combined 2.9 million acres contain 76 Tcf, nearly as much as the USGS estimates for the entire formation.

The EIA says it is waiting to set its estimate once the USGS provides more information about its assessment to understand where the agencies diverge. "We will not be able to be more precise until that work is completed," said Jonathan Cogan, an administration spokesman.

Even at 84 Tcf, the Marcellus still contains a lot of gas, more than any of other shale-gas plays, according to the USGS.

Just three years ago, Pennsylvania State University professor Terry Engelder and a colleague, Gary Lash, estimated the Marcellus Shale could contain as much as 50 trillion cubic feet of recoverable gas, a number so astonishing that it triggered a land rush.

Engelder later increased his estimate to 363 Tcf and then nearly 450 Tcf, based upon actual production data.

The Marcellus Shale Coalition argues that the USGS numbers are low because its methodology discounts undeveloped parts of the shale.

"Hence, during early development of a gas shale play when there is very little production data anyway, the USGS numbers will be commensurately low as is the case now," said Travis Windle, a coalition spokesman.

USGS says there are many reasons that assessments might disagree -- the use of different data, or proprietary information. Doug Duncan, associate program coordinator of the USGS's energy resources program, said the agency only makes its assessment after observing reliable production data over at least a 30-month period.

"We don't have a preconceived idea about what kind of answer we want to get," he said. "We try to get it right."

Without mentioning other estimates, the USGS asserted its primacy on the issue in its announcement Tuesday.

"USGS is the only provider of publicly available estimates of undiscovered technically recoverable oil and gas resources of onshore lands and offshore state waters," it said.

Copyright (c) 2011 The Philadelphia Inquirer

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Estimates for Greenhouse Emissions from Shale Production Overstated -Study

- Estimates for Greenhouse Emissions from Shale Production Overstated -Study

Wednesday, August 24, 2011
IHS CERA

Estimates used by the United States Environmental Protection Agency (EPA) and others for greenhouse gas emissions from upstream shale gas production are likely significantly overstated, according to a new report by IHS Cambridge Energy Research Associates (IHS CERA). The estimates are based on assumptions that do not reflect current industry practice and should be reevaluated, it says.

"Methane emissions have become a very important and controversial issue given their potency as a greenhouse gas," said Mary Barcella, IHS CERA director of North American natural gas. "Unfortunately, such emissions are not being measured. Estimates are being used that are not supported by data, do not reflect current industry practice and would be unreliable to use as a base for decision-making."

The report cites as one example the EPA's 2010 revised estimates of methane emissions during well completion—the period after the well has been drilled but before it is placed into production. The current EPA methodology for estimating methane emitted during this phase was based on a small sample of wells and primarily measured methane that was captured rather than released into the atmosphere, the report says.

The EPA estimates were based on two workshop presentations describing methane captured during "green completions"—operations designed to capture as much methane as possible. The EPA assumed that (1) similar levels of methane were produced at every other well in the United States and (2) that those emissions went completely uncaptured. Such assumptions do not conform to current industry practices, the report says.

"The assumption that all methane recovered from these sample wells would otherwise have been flared or vented is questionable at best, given that common industry practice is to capture gas for sale as soon as it is technically feasible," said Surya Rajan, IHS CERA director. "Gas that cannot be sold is generally flared rather than vented for safety reasons. If the methane emissions at wells were as high as some methodologies assume, you would have extremely hazardous conditions at the well site that neither regulators nor industry would permit."

Another key mis-characterization found in the EPA estimates and other recent reports, such as a study led by Cornell University professor Robert W. Howarth, is the assumption that wells in flowback contain methane in quantities equal to their post-completion daily production, the report says. This assumption results in a significant overestimation of methane emissions. (The flowback phase is the phase of production when fluids injected into the well flow back out ahead of the tapped gas.)

The IHS CERA report notes that data on unconventional gas well GHG emissions is currently lacking due to the fact that they are not adequately measured. More reliable data is needed in order to produce estimates with any degree of certainty.

The report says that the most productive result of additional regulations proposed by the EPA in July could be better documentation of actual GHG emissions which would provide the accurate measurement that is needed. Some of the other proposed regulations, such as requiring green completions and flaring of any produced gas that is not suitable for sale, are already common practice in the industry, it says.

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USGS Boosts Marcellus Estimates

- USGS Boosts Marcellus Estimates

Tuesday, August 23, 2011
U.S. Geological Survey

The Marcellus Shale contains about 84 trillion cubic feet of undiscovered, technically recoverable natural gas and 3.4 billion barrels of undiscovered, technically recoverable natural gas liquids according to a new assessment by the U. S. Geological Survey (USGS).

These gas estimates are significantly more than the last USGS assessment of the Marcellus Shale in the Appalachian Basin in 2002, which estimated a mean of about 2 trillion cubic feet of gas (TCF) and 0.01 billion barrels of natural gas liquids.

The increase in undiscovered, technically recoverable resource is due to new geologic information and engineering data, as technological developments in producing unconventional resources have been significant in the last decade. This Marcellus Shale estimate is of unconventional (or continuous-type) gas resources.

Since the 1930's, almost every well drilled through the Marcellus found noticeable quantities of natural gas. However, in late 2004, the Marcellus was recognized as a potential reservoir rock, instead of just a regional source rock, meaning that the gas could be produced from it instead of just being a source for the gas. Technological improvements resulted in commercially viable gas production and the rapid development of a major, new continuous natural gas and natural gas liquids play in the Appalachian Basin, the oldest producing petroleum province in the United States.

This USGS assessment is an estimate of continuous gas and natural gas liquid accumulations in the Middle Devonian Marcellus Shale of the Appalachian Basin. The estimate of undiscovered natural gas ranges from 43.0 to 144.1 TCF (95 percent to 5 percent probability, respectively), and the estimate of natural gas liquids ranges from 1.6 to 6.2 billion barrels (95 percent to 5 percent probability, respectively). There are no conventional petroleum resources assessed in the Marcellus Shale of the Appalachian Basin.

These new estimates are for technically recoverable oil and gas resources, which are those quantities of oil and gas producible using currently available technology and industry practices, regardless of economic or accessibility considerations. As such, these estimates include resources beneath both onshore and offshore areas (such as Lake Erie) and beneath areas where accessibility may be limited by policy and regulations imposed by land managers and regulatory agencies.

The Marcellus Shale assessment covered areas in Kentucky, Maryland, New York, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia.

USGS is the only provider of publicly available estimates of undiscovered technically recoverable oil and gas resources of onshore lands and offshore state waters. The USGS worked with the Pennsylvania Geological Survey, the West Virginia Geological and Economic Survey, the Ohio Geological Survey, and representatives from the oil and gas industry and academia to develop an improved geologic understanding of the Marcellus Shale. The USGS Marcellus Shale assessment was undertaken as part of a nationwide project assessing domestic petroleum basins using standardized methodology and protocol.

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Exxon Mobil Estimates Oil spill in Yellowstone River will Cost Over $42 Million

- Exxon Mobil Estimates Oil spill in Yellowstone River will Cost Over $42 Million



Aug 22, 2011

Exxon Mobil (NYSE:XOM) Pipeline told federal regulators that its oil pipeline spill into Montana's Yellowstone River will cost an estimated $42.6 million.

The July 1 pipeline break near Laurel spilled about 42,000 gallons, or 1,000 barrels, of crude oil into the scenic waterway.

Exxon Mobil's cost estimate includes $40 million for emergency response work and $2.5 million for damage to public and private property. The company valued the lost oil at $100,000.

The company announced last week that the clean up might continue for several more months.

Exxon Mobil (NYSE:XOM) has a potential upside of 30.6% based on a current price of $70.78 and an average consensus analyst price target of $92.46.

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Yingli Green Energy Topped Q2 Estimates, Top Line Up 27%

- Yingli Green Energy Topped Q2 Estimates, Top Line Up 27%



Aug 19, 2011

Yingli Green Energy (NYSE:YGE) reported Q2 EPS of $0.34, ahead of consensus estimates of $0.27 per share. Revenues for the quarter rose 27.4% year-over-year to $680.6 million, topping consensus estimates of $613.8 million.

Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy commented, "I'm pleased to announce that we had our best quarter ever in terms of PV module shipments, which increased by 36.6% over the previous quarter. With the significantly increased shipments, we managed not only to expand our global market share, but also to extend our sales geographies."

Yingli Green Energy has a potential upside of 60.4% based on a current price of $5.63 and an average consensus analyst price target of $9.03.

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Statoil Boosts Estimates at N. Sea Find

- Statoil Boosts Estimates at N. Sea Find

Tuesday, August 16, 2011
Statoil

Communication between the Aldous and Avaldsnes oil discoveries in the North Sea has now been confirmed. In combination these discoveries may represent an oil structure of between 500 million and 1.2 billion barrels of recoverable oil equivalent.

If the upper part of the interval strikes pay dirt, the discovery will be one of the ten largest oil finds ever on the Norwegian continental shelf (NCS). Statoil has a 40% stake both in license PL 265, where Aldous was discovered, and in PL 501, where the Avaldsnes discovery was made.

"Aldous/Avaldsnes is a giant oil discovery, and according to our estimates the combined discovery may make the top 10 list of NCS oil discoveries. Norway has not seen a similar oil discovery since the mid-eighties," said Tim Dodson, Statoil's executive vice president for Exploration.

This is the third "high-impact discovery" for Statoil as an operator in 2011. In April of this year the 250 million barrel Skrugard oil discovery was made in the Barents Sea, and the 150-300 million barrel Peregrino South oil field was discovered offshore Brazil.

"The discoveries are a result of Statoil's exploration strategy of prioritizing high-impact opportunities, while focusing on our established core areas," said Dodson.

As the company announced on August 8, a minimum 65-meter oil column has been confirmed in Aldous Major South well 16/2-8 in the North Sea. The discovery was made in Jurassic sandstone in a very good quality reservoir consisting of coarse-grained, unconsolidated sand.

The well has also established common oil/water contact between the Aldous and Avaldsnes structures, and according to preliminary estimates the combined discovery in the two licenses (PL 265 and PL 501) totals between 500 million and 1.2 billion barrels of recoverable oil equivalent. Between 200 and 400 million barrels of these resources have been discovered in well 16/2-8, with strong indications from well data of another 200 to 400 million barrels of recoverable oil equivalent in the same structure, whereas a resource base of 100 to 400 barrels previously has been estimated in the Avaldsnes structure (PL 501).

The well was drilled by the Transocean Leader drilling rig, which soon will spud Aldous Major North well 16/2-9 (PL265) to clarify the further potential and any communication with Aldous/Avaldsnes. In addition the partners plan further appraisal drilling in license PL 265 next year to clarify the full volume potential for a future development solution.

"As we said at the Capital Market Day event in New York in June, the NCS is a world-class petroleum province. The Aldous/Avaldsnes discoveries are evidence that the NCS is still attractive. Making a discovery of this size in a mature area shows that exploration is all about perseverance, creativity and obtaining new knowledge," said Dodson.

Aldous Major South is located in license 265. Statoil is the operator and has a 40% interest. The other partners are Petoro (30%), Det norske oljeselskap (20%) and Lundin (10%).

Avaldsnes is located in license 501. Lundin is the operator and has a 40% interest, whereas partners Statoil and Mærsk have 40% and 20% interests, respectively.

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Rockhopper Boosts Estimates at Sea Lion Play

- Rockhopper Boosts Estimates at Sea Lion Play

Monday, August 15, 2011
Rockhopper Exploration plc

Rockhopper provided the following update on the interpretation of the fast track seismic data over acreage on licenses PL032 and PL033:

• Initial interpretation of fast track new seismic data in PL032 and PL033 completed
• Seismic shows Sea Lion Main Complex ("SLMC") to extend to the south and new high case area to extend over 90km2
• Two new fan prospects identified within new seismic, Casper and Kermit
• Management interpretation for SLMC potential size: 
  • Low Case: 608 MMbbls STOIIP
  • Mid Case: 1,086 MMbbls STOIIP
  • High Case: 1,279 MMbbls STOIIP

Volumes listed above are within Rockhopper's 100% owned acreage. Not included in the high case listed above, based upon the current interpretation, the Company believes that up to approximately 10% additional volume could be contained within license PL004, in which Rockhopper has a non-operated 7.5% working interest.

During 2011 the Company acquired a total of over 4000km2 of 3D seismic data in conjunction with other operators in the area. Data over the southern portion of licenses PL032 and PL033 has been fast track processed and an initial interpretation has now been completed. This initial interpretation, combined with well data from 14/10-2, 14/10-3, 14/10-4, 14/10-5 and 14/10-6, indicates that the SLMC comprises two fan lobes sourced from the same main feeder channel just to the east of the 14/10-5 and 14/10-2 wells.

The two lobes, represented as sand packages within the wells, are identified as the SL20 and SL10 units, and, from the formation pressure data acquired in the wells, are shown to be in pressure communication. The two packages together comprise the SLMC and are interpreted to comprise of mass flow turbidite sand sequences prograding from the sand input point to the east and extending beyond the southern boundary of license PL032 into license PL004, where Rockhopper has a non-operated 7.5% working interest.

The Company believes that recovery rates of 30% to 40% could be achievable using industry standard production techniques including water injection, artificial lift, deviated or horizontal wells and /or other enhanced oil recovery techniques.

Should a recovery factor of 30% be achieved, based upon the Company's mid case area, the SLMC would contain approximately 325mmbbls recoverable oil. Should a recovery factor of 40% be achieved, the mid case number would increase to 434mmbbls recoverable oil.

The fast track seismic interpretation has enabled the identification of two new feeders into the basin and the mapping of two new prospects, Casper and Kermit. Both of these comprise similar fan systems fed from eastern basin margin feeder channels and exhibit similar seismic character to the SLMC. Casper is stratigraphically shallower than the SLMC while Kermit is stratigraphically deeper than the SLMC.

Following well 14/10-6 the Company believes that the B15 sand, which forms part of the lower fan complex, has the potential to contain up to 161 mmbbls STOIIP on a high case basis. Formation pressure testing indicates that B15 is also in communication with the SLMC.

Fan prospects currently mapped on the Company's acreage are now SLMC, Lower Fan (B sands), Chatham, Casper and Kermit.

In addition to the SLMC, management interpretation of potential in place resources across the other fan prospects within the licence is set out below (All mmbbls STOIIP):

	Low	Mid	High
Lower Fan (B15)	100	130	161
Casper	135	163	194
Kermit	39	47	55
Chatham	28	93	318

The balance of the newly acquired 3D seismic data is still being processed and the Company expects it will be available for interpretation before the end of 2011.

Future Drilling Plans

Following completion of drilling operations on well 14/10-6, the Company is currently committed to drill three further wells using the Ocean Guardian drilling unit. The Company is discussing the possibility of drilling additional wells under an assignment agreement.

The Company intends to drill the next well 3.3km north west of the 14/10-2 discovery well. The second well in the sequence is currently planned to be located approximately 4.1 km to the south south east of the 14/10-2 discovery well. The third well in the sequence is currently planned to be located approximately 5.5km south west of the 14/10-2 discovery well. The second and third locations are subject to change depending upon drilling results and technical work and are subject to gaining the relevant regulatory consents. The Company currently intends to wait for the result of well 14/10-7 before deciding whether to take any additional drilling slots. Estimates of in place and prospective resource information are based upon wells drilled to date and could alter with future well results. Once the Company completes its current drilling campaign, all estimated potential in place resource estimates will be further refined.

Operations continue at the 14/10-6 location and a further announcement will be made once 14/10-7 has been spudded.

Sam Moody, Chief Executive, commented, "We are highly encouraged by the interpretation of new seismic data which identifies both significant reservoir extension and the existence of two additional fan prospects above and beneath the Sea Lion Main Complex. We look forward to continuing our drilling program as we seek to further refine our understanding of Sea Lion and the other prospects on our licenses."

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Abraxas Petroleum Announces Production And 2011 Estimates

- Abraxas Petroleum Announces Production And 2011 Estimates



Aug 9, 2011

During the month of July, Abraxas (NASDAQ:AXAS) produced 4,160 barrels of oil equivalent per day up from an average of 3,845 barrels of oil equivalent per day for the Q2.

Abraxas expects production for 2011 to average 4,000 to 4,200 barrels of oil equivalent per day, including its equity interest share of Blue Eagle's production that would generate an exit rate for 2011 between 4,700 and 4,900 barrels of oil equivalent per day.

Abraxas Petroleum (NASDAQ:AXAS) has a potential upside of 97.6% based on a current price of $3.09 and an average consensus analyst price target of $6.11.

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Broadwind Energy Missed Q2 Estimates

- Broadwind Energy Missed Q2 Estimates



Aug 5, 2011

Broadwind Energy (NASDAQ:BWEN) reported a Q2 loss of $0.04 per share, wider than consensus estimates for a loss of $0.01 per share. Revenues for the quarter rose 17% year-over-year to $39.3 million, missing consensus estimates of $46.7 million.

Peter C. Duprey, president and chief executive officer, said, "We are continuing to make progress with the business transformation. With three sequential EBITDA positive quarters behind us, we feel good about the operational momentum we have gained. Our Tower business had a 48% increase in revenue in a difficult market, and in our Gears business, sales to industrial customers exceeded wind customers. Our Gearing and Services businesses had new orders well in excess of sales; our enhanced focus on sales and diversification efforts are starting to have an impact. While we continue to face a challenging wind energy market, we remain focused on the diversification of our customer base and the expansion of our services business where we have strong core competencies."

Broadwind Energy has a potential upside of 150% based on a current price of $1.2 and an average consensus analyst price target of $3.

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First Solar Misses Q2 Estimates

- First Solar Misses Q2 Estimates



Aug 4, 2011

First Solar (NASDAQ:FSLR) reported adjusted Q2 EPS of $0.70, missing analyst estimates of $0.92. Revenues for the quarter fell 9.4% to $533 million, less than consensus estimates of $583.42 million.

Rob Gillette, CEO of First Solar said, "First Solar continued to execute in the quarter despite a challenging European market, and our 2011 outlook remains solid due to our differentiated and resilient business model. We expect stronger performance in the second half of 2011 as we build projects from our systems pipeline, develop promising new markets, execute our cost reduction roadmaps and continue to improve module efficiencies."

First Solar (NASDAQ:FSLR) has a potential upside of 42.2% based on a current price of $107.94 and an average consensus analyst price target of $153.5.

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El Paso Topped Q2 EPS Estimates By $0.10 Per Share

- El Paso Topped Q2 EPS Estimates By $0.10 Per Share



Aug 4, 2011

El Paso (NYSE:EP) reported Q2 EPS of $0.34, ahead of consensus estimates of $0.24 per share.

Doug Foshee, chairman, president, and chief executive officer of El Paso Corporation said, "We are very pleased with our financial and operational performance. With the completion of our Ruby Pipeline, we have placed three major projects into service this year and will complete two more by year end. And with natural gas likely to be the cornerstone for growth in electric power development, we continue to see exciting growth opportunities on the horizon. Execution in our E&P business is outstanding, with oil programs ramping up with results that are equal to or better than expectations. We are very encouraged by the completion of our first 7,000 foot plus lateral in the Wolfcamp Shale, and we see this program delivering many years of very profitable development across our large acreage position. On the financial front, we continue to make excellent progress, improving our balance sheet primarily through drop downs to El Paso Pipeline Partners. This progress has put us in position to separate into two outstanding companies by year end. We believe this is a great time to be a shareholder of El Paso."

El Paso has a potential upside of 27.7% based on a current price of $19.49 and an average consensus analyst price target of $24.89.

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GM Topped Estimates For Q2, Rose 18.7% YoY

- GM Topped Estimates For Q2, Rose 18.7% YoY



Aug 4, 2011

General Motors (NYSE:GM) reported adjusted Q2 EPS of $1.54, better than analyst estimates of a $1.20 per share. Revenues for the quarter rose 18.7% year-over-year to $39.40 billion, topping consensus estimates of $36.71 billion.

GM Chairman and CEO Dan Akerson said in a statement, "GM's investments in fuel economy, design and quality are paying off around the world."

General Motors (NYSE:GM) has a potential upside of 59.9% based on a current price of $27.17 and an average consensus analyst price target of $43.45.

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Pioneer Drilling Topped Q2 Estimates, Top Line Surged 46.4% YoY

- Pioneer Drilling Topped Q2 Estimates, Top Line Surged 46.4% YoY



Aug 4, 2011

Pioneer Drilling (AMEX:PDC) reported Q2 EPS of $0.07, ahead of consensus estimates of $0.04 per share. Revenues for the quarter rose 46.4% year-over-year to $171.3 million, topping consensus estimates of $166.0 million.

William Locke, President and CEO of Pioneer Drilling said, "We continue to see strong demand for our drilling rigs in the West Texas drilling division, which has grown from zero to 12 rigs since the beginning of 2011, and we have contracted four more rigs that will begin operating in West Texas by year-end, although day rates are lower in West Texas when compared to certain other regions, putting rigs back to work results in higher utilization rates and increased Adjusted EBITDA."

Pioneer Drilling has a potential upside of 14.3% based on a current price of $15.58 and an average consensus analyst price target of $17.81.

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Walter Energy Earnings Miss Q2 Estimates

- Walter Energy Earnings Miss



Aug 3, 2011

Walter Energy (NYSE:WLT) reported adjusted Q2 EPS of $2.36, missing analyst estimates of $4.07. Revenues for the quarter rose 88.3% to $773.00 million, missing consensus estimates of $927.16 million.

Joe Leonard, interim chief executive officer said, "Walter Energy continues to execute on its long-term strategic plan to grow its met coal production base, highlighted by the acquisition of Western in April and our execution of lease agreements on 68 million metric tons of Blue Creek coal reserves in May."

Walter Energy is currently below its 50-day moving average (MA) of $117.23 and below its 200-day MA of $118.62. In the last five trading sessions, the 50-day MA has remained constant while the 200-day MA has risen 0.4%.

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Energy Transfer Equity Misses Estimates For Q2

- Energy Transfer Equity Misses Estimates For Q2



Aug 3, 2011

Energy Transfer Equity (NYSE:ETE) reported adjusted Q2 EPS of $0.30, missing analyst estimates of $0.37 per share. Revenues for the quarter rose 45% year-over-year to 1.62 billion, below consensus estimates of $1.81 billion

Mike Bradley, president and chief executive officer of Regency said, "Regency delivered strong results in the second quarter of 2011, fueled by our acquisition activity over the last year and volume growth in south and west Texas in our Gathering and Processing segment."

Energy Transfer Equity (NYSE:ETE) has a potential upside of 21.4% based on a current price of $40.7 and an average consensus analyst price target of $49.4.

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Forest Oil Topped Q2 Estimates, Top Line Up 14%

- Forest Oil Topped Q2 Estimates, Top Line Up 14%



Aug 2, 2011

Forest Oil (NYSE:FST) reported Q2 EPS of $0.36, ahead of consensus estimates of $0.30 per share. Revenues rose 14.4% year-over-year to $238.1 million, topping consensus estimates of $224.8 million.

Forest Oil has a potential upside of 22.5% based on a current price of $26.4 and an average consensus analyst price target of $32.33.

Forest Oil is currently below its 50-day moving average (MA) of $26.72 and below its 200-day MA of $33.15.

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Chevron Beats Estimates For Q2 Earnings

- Chevron Beats Estimates For Q2 Earnings



Jul 29, 2011

Chevron (NYSE:CVX) reported Q2 EPS of $3.85, beating analyst estimates of $3.56 per share. Revenues for the quarter were $71.58 billion, topping analyst estimates with $66.70 billion.

Chairman and CEO John Watson said, "Our second quarter financial performance was very strong. Earnings gains versus last year's quarter were primarily in our oil and gas exploration and production business, resulting from higher crude oil prices on world markets. We continued to advance our major capital projects, resumed important exploration and development drilling activity in the deepwater Gulf of Mexico and acquired new upstream resource opportunities in the second quarter."

Chevron (NYSE:CVX) has a potential upside of 16.9% based on a current price of $105.03 and an average consensus analyst price target of $122.79.

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Delta Airlines Q2 Misses Earnings Estimates Due To Costly Fuel Prices

- Delta Airlines Q2 Misses Earnings Estimates Due To Costly Fuel Prices



Jul 27, 2011

Delta Airlines (NYSE:DAL) reported a Q2 loss of $0.43, narrower than analyst estimates for a loss of $0.46 per share. Revenues for the quarter rose 12.1% year-over-year to $9.15 billion, missing consensus estimates of $9.16 billion.

Richard Anderson, Delta's chief executive officer said, "High fuel prices are putting significant pressure on the industry, but the benefits of Delta's strategic actions and the dedication of Delta employees are evident in the solid profit we produced despite more than $1 billion in higher fuel expense. Our revenue momentum, coupled with the capacity reductions we are making in September and actions to get our non-fuel costs to 2010 levels, will generate the margins we need to hit our return targets."

Delta Air Lines (NYSE:DAL) has a potential upside of 80.1% based on a current price of $8.02 and an average consensus analyst price target of $14.44.

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Skrugard Estimates Reaffirms Norwegian Continental Shelf Potential

- Skrugard Estimates Reaffirms Norwegian Continental Shelf Potential

Monday, June 20, 2011
Rigzone Staff
by Karen Boman

Statoil reported that its Skrugard discovery provides renewed optimism for the whole Barents Sea region and reaffirms its long-term prospective of the Norwegian Continental Shelf.

Statoil now estimates that the Skrugard discovery in the Barents Sea to contain approximately 250 million boe recoverable resources, with a significant upside potential in the license. The Skrugard well has significantly improved Statoil's understanding of other prospects in the area.

Finding new discoveries and enhancing production from existing fields will be critical for Norway's future. In 2010, the nation recorded the largest decline worldwide in oil production in 2010, according to the BP Statistical Review of World Energy June 2011.

BP reports that Norway had 3.3 million b/d of oil production in 2000; at the end of 2010, the country had 2.1 million b/d. Norway had estimated proved oil reserves of 11.4 thousand million barrels at the end of 2000; at the end of 2010, the country had 6.7 thousand million barrels.

Oil production in non-OPEC countries in 2010 grew by 860,000 b/d, or 1.8 percent, the largest increase since 2002, according to the review. Growth was led by China, which recorded its largest production increase ever, the U.S., and Russia, while continued declines in Norway and the UK partly offset growth elsewhere.

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Toyota Motor Estimates 31% Drop Full Year Net Profit

- Toyota Motor Estimates 31% Drop Full Year Net Profit



Jun 10, 2011

Toyota Motor (NYSE:TM) said today it expects its net profit to fall by almost a third this year, as production continues to be disrupted 3 months after the massive earthquake and tsunami that struck Japan on March 11th.

The company predicted its profit for the full year ending in March 2012 would decline 31% to $3.5 billion.

Analysts had been expecting a profit of $5.28 billion, and the company reported $5.1 billion in profit for the year ending March 2011.

The company expects full year sales to decline 2%, and said global production wouldn't recover completely until November.

Toyota Motor has a potential upside of 14.3% based on a current price of $80.84 and an average consensus analyst price target of $92.4.

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