Cenovus Energy Inc (USA) (CVE), Seadrill Ltd (SDRL): Why You Should Invest in These 3 Oil Companies

Page 1 of 2

Per an Energy Information Administration report, it is expected that oil production in the current year will be around 89.89 million barrels per day (bbl/d), while the global consumption of oil will reach 90.03 million bbl/d. Furthermore, production will surge to 91.22 million bbl/d, to match the consumption of 91.40 million bbl/d in 2014.

Cenovus Energy Inc (USA) (NYSE:CVE)

Looking at the dynamics of production and the estimated consumption of oil, the companies producing oil and gas should benefit.  Lets take a look at three oil and gas companies that could really outperform the market.

New contracts

Seadrill Ltd (NYSE:SDRL) recently won new contracts for drilling and oil exploration. The company received a 3 year contract from Bluewater in April 2013 for ultra-deep water drilling at West Neptune in South Korea.  The site is under construction and is expected to be ready by the second quarter of 2014. With a per day rate of drilling at $570,000, the company will earn revenue of around $662 million, and the contract can be extended for 1 year.

Seadrill Ltd (NYSE:SDRL) also extended its contract with Vietsovpetro for two jack-up rigs in West-Ariel and West Prospero in Vietnam for eight months at a day rate of $162,000.  That’s a sizable sum and should go a long way to ensuring its profitability.

In the first quarter of 2013, Seadrill Ltd (NYSE:SDRL)’s net operating income was $552 million and revenue was $1.3 billion.  In fact, it was the finest quarter ever for the company in terms of net operating income. It showed year over year growth of around 21% in net operating income and 18% in revenue.

The company optimally maximized its floater utilization to 92%, from 86% in the same period last year. Moreover, its jack-ups also performed well, with increased utilization of 99%, a 7% sequential increase.

Oil-rich resource

Cenovus Energy Inc (USA) (NYSE:CVE) recently sold its oil assets in Shaunavon for $236 million to Surge Energy. These assets were producing 3,600 bbl/d for Cenovus Energy Inc (USA) (NYSE:CVE). The company is eyeing its future growth in Alberta oil sands. Oil production from Alberta and nearby regions is expected to be around 125,000 bbl/d by 2016, from 70,000 currently. Moreover, the company has another 4 oil producing projects in Christina Lake, Foster Lake, Weyburn, and Pelican Lake.

The company increased its oil production outlook from 235,000 bbl/d to around 280,000 bbl/d for the current fiscal year, due to increased oil production capacity at Foster Creek. Each phase of Foster Creek, namely, F, G, and H is expected to produce around 35,000 bbl/d, individually, which is an increase of 5,000 bbl/d from its earlier estimation. The company has also reduced its oil production time line for this region.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!