Climate Forces Oil Cos to Improve Efficiency

May 3, 2019 -- InvestorsHub NewsWire -- Microcap Speculators -- Oil has climbed more than 40% this year, underpinned mainly by production cuts from the OPEC-led group of exporters, and drop in supply from Venezuela and Iran. The so-called OPEC+ deal (an alliance of OPEC, Russia and other non-member countries) is withholding output by around 1.2 million barrels per day until the end of June. U.S. sanctions against Venezuela and Iran also continue to tighten the commodity’s fundamentals.

Meanwhile, natural gas prices rebounded slightly from their three-year lows despite a government report showing higher-than-expected increase in supplies. The gain could be attributed to weather-associated tailwinds that might lead to robust heating demand. While the fundamentals of natural gas consumption continue to be favorable, record high production in the United States and expectations for explosive growth through 2020 means that supply will keep pace with demand.

One oil & gas exploration deal that has done a great job improving its efficiency over the past 12 months and is set to complete a major deal is Camber Energy (AMEX: CEI).  CEI has worked very hard recently to improve their standing with the NYSE American, and spent a lot of 2018 cleaning up its balance sheet and improving its efficiency.  Their hard work is starting to receive recognition as CEI received a letter from the NYSE American about regaining several of their continued listing standards.

WHY NOW?  The company is set to close on an acquisition within the next couple weeks.  It has already received preliminary non-binding approval from the staff of the NYSE American of the planned terms of its contemplated acquisition of Lineal Star Holdings www.LinealStar.com in an all-stock transaction.  Lineal's primary operating subsidiary has been in the pipeline integrity, construction and services industry for 64 years. It has Master Service Agreements in Pennsylvania, Ohio and West Virginia, with planned growth in Texas, the Gulf South and the Mid-Continent.  Today, it announced that it has entered into a revised letter of intent with Lineal Star Holdings.

Today we’re highlighting: Camber Energy, Inc. (AMEX: CEI), Obsidian Energy Ltd. (OBE), Diamond Offshore Drilling, Inc. (NYSE: DO), BP Prudhoe Bay Royalty Trust (NYSE: BPT), and Pacific Ethanol, Inc. (NASDAQ: PEIX).

Camber Energy, Inc. (AMEX: CEI) (Market Cap: $6.23M; Share Price: $0.3117) turned a nearly $30 million shareholder deficit into $2.3 million of positive shareholders’ equity, increasing liquidity, extinguishing debt and fast tracking the company for regaining NYSE American compliance.  Investors are starting to show support to management’s progress and as more investors learn the story, the trend could continue.  Oil & Gas investors seeking competent fiscal management and efficient operations should research CEI.

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Obsidian Energy Ltd. (OBE) (Market Cap: $141.265M; Share Price $0.2800) announced an operational update on its Cardium drilling program on April 16.  “We are examining every facet of the business to ensure we are always making improvements, including a continual review of our capital allocation, cost structure, and portfolio composition." commented Michael Faust, Interim President and CEO.

Obsidian Energy Ltd. explores for, develops, and produces oil and natural gas in western Canada.  It holds interests in the Alberta Viking, Cardium, Deep Basin, and Peace River areas. The company was formerly known as Penn West Petroleum Ltd. and changed its name to Obsidian Energy Ltd. in June 2017.  Obsidian Energy Ltd. was founded in 1979 and is headquartered in Calgary, Canada.   

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Diamond Offshore Drilling, Inc. (NYSE: DO) (Market Cap: $1.239B; Share Price: $9.00) recently reported results for the first quarter of 2019. “We had a solid start to the year with fleet-wide operational efficiency of 97% and zero recordable incidents for the first quarter," said Marc Edwards, President and Chief Executive Officer. As of April 1, 2019, the company's total contracted backlog was $1.8 billion, which excludes over $450 million of backlog secured in April 2019 associated with the Ocean BlackRhino, Ocean BlackHawk and Ocean GreatWhite contracts discussed above and a $135 million margin commitment from one of the Company's customers.

Diamond Offshore Drilling, Inc. provides contract drilling services to the energy industry worldwide.  The company operates a fleet of 17 offshore drilling rigs, including 4 drill ships and 13 semisubmersible rigs.  It serves independent oil and gas companies, and government-owned oil companies.  The company was founded in 1953 and is headquartered in Houston, Texas. Diamond Offshore Drilling, Inc. operates as a subsidiary of Loews Corporation.   

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BP Prudhoe Bay Royalty Trust (NYSE: BPT) (Market Cap: $409.81M; Share Price: $19.15) announced in April the dividend information for the First Quarter of 2019 as follows:

*Actual average daily production for the quarter was 77,371 BBLS.

Any questions, please feel free to contact The Bank of New York Mellon Trust Company, N.A. at 713-483-6020.

BP Prudhoe Bay Royalty Trust operates as a grantor trust in the United States.  The company holds overriding royalty interest comprising a non-operational interest in minerals in the Prudhoe Bay oil field located on the North Slope of Alaska.  The Prudhoe Bay field extends approximately 12 miles by 27 miles and contains approximately 150,000 gross productive acres.

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Pacific Ethanol, Inc. (NASDAQ: PEIX) (Market Cap: $50.847M; Share Price: $1.04) announced in March that Pacific Ethanol Pekin, LLC and Kinergy Marketing LLC, each a direct or indirect wholly-owned subsidiary of Pacific Ethanol, Inc., entered into amendments to their credit agreements and related agreements with their respective lenders which returns Pekin to full compliance with its credit facility and provides additional liquidity under the Kinergy credit agreement to help facilitate the company’s strategic initiatives.

Pacific Ethanol, Inc. produces and markets low-carbon renewable fuels and alcohol products in the United States.  The company operates in two segments, Production and Marketing.  It produces and markets ethanol and co-products, such as wet and dry distillers’ grains, wet and dry corn gluten feed, condensed distillers soluble, corn gluten meal, corn germ, corn oil, distillers- yeast, and CO2, as well as markets ethanol produced by third parties.

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Signed by

Priyanka Goel, CFA

Legal Disclaimer:

This article was written by Regal Consulting, LLC (“Regal Consulting”).  Regal Consulting has agreed to a six-month term consulting agreement with CEI dated 11/15/18.  The agreement calls for $28,000 in cash, and 200,000 restricted 144 shares of CEI per month.   Regal Consulting and CEI have agreed to amend the current agreement and extend it until October 2019, the amendment calls for $50,000 in cash, and 50,000 restricted 144 shares of CEI.  All payments were made directly by Camber Energy, Inc. to Regal Consulting, LLC. to provide investor relations services, of which this article is a part of.  Regal Consulting also paid one thousand dollars cash to microcapspeculators.com to distribute this article.  Regal Consulting may have a position in the securities mentioned in this article at the time of publication, and may increase or decrease its position without notice.  This article is based on public information and the opinions of Regal Consulting.  CEI was given an opportunity to edit this article.  This article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any results predicted herein.  Regal Consulting is not registered with any financial or securities regulatory authority, and does not provide or claim to provide investment advice.

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