HOUSTON (Reuters) – Warren Buffett’s $32.3 billion deal for Precision Castparts Corp (PCP.N: Quote, Profile, Research, Stock Buzz) shows his willingness to overlook repeated operational stumbles at the company to place a long-term bet on the growth of global air travel.
Buffett usually seeks out companies with strong leadership and earnings metrics. But Precision, a maker of aerospace and other parts, has posted lackluster results for the past year, most recently in late July when it reported an 18 percent decline in net income for its fiscal first quarter. The company blamed higher-than-expected costs to ramp up to meet demand from aircraft makers.
Aug 6 (Reuters) – EOG Resources Inc reported a
better-than-expected adjusted quarterly profit on Thursday as
the oil producer successfully slashed well and transportation
costs to offset plunging crude prices.
The price drop has hamstrung nearly all of the energy
industry this past year, forcing many companies to lay off staff
and curb spending.
, Aug 6 (Reuters) – Continental Resources Inc
said on Thursday it ships more than two-thirds of its
North Dakota oil via pipeline, a major change that threatens the
oil transportation business of BNSF and other
railroads which had boomed in recent years.
The second-largest North Dakota oil producer pumped nearly
160,000 barrels of crude per day in the second quarter through
pipelines owned by Kinder Morgan and others. In 2014 it
sent nearly all of its oil by train.
, Aug 6 (Reuters) – The population of a U.S.
oil boomtown that became a symbol of the fracking revolution is
dropping fast because of the collapse in crude oil prices
, according to an unusual metric: the amount of sewage
Williston, North Dakota, has seen its population drop about
6 percent since last summer, according to wastewater data relied
upon heavily by city planning officials.
Aug 5 (Reuters) – Continental Resources Inc, the
second-largest oil producer in North Dakota’s Bakken shale
formation, posted a better-than-expected quarterly profit on
Wednesday as the company slashed costs to offset plunging crude
In a bold bet on oil prices and the ability to keep costs
low, Chief Executive Harold Hamm boosted Continental’s 2015
July 31 (Reuters) – Weak oil prices shriveled
quarterly profit at Exxon Mobil Corp and Chevron Corp
, compelling both companies to rethink operations and
plan for what many expect to be a sustained period of cheap
Earnings at Exxon and Chevron, two of the world’s largest
oil producers, also missed analysts’ expectations, adding to
concerns that perhaps executives had not acted quickly enough to
mitigate the impact of an over-50-percent drop in oil prices
since last summer.
Chief Executive John Watson bluntly said the results were “weak” and that he was working to slash costs by renegotiating supply contracts. Earlier this week, he laid off 2 percent of the company’s staff.
(Reuters) – Whiting Petroleum Corp cut its 2015 budget on Wednesday less than two weeks after raising it, a turnaround that underscores the uncertainty engulfing the energy industry while crude prices sit roughly 50 percent below last year’s levels.
The company, North Dakota’s largest oil producer, tends to be seen as a key barometer of the health of the U.S. shale industry. Its spending trepidation is sure to have ripple effects on drilling contractors and other oilfield service providers.
WILLISTON, N.D. (Reuters) – U.S. oil companies, under renewed pressure from falling crude prices, are increasingly tweaking and mixing fracking technologies as they scramble to squeeze more out of wells and eke out profits after rounds of cost-cutting.
Shale oil firms need the experiments to payoff now more so than before given that oil prices have resumed their slide to trade around $49 per barrel this week from $60 a few months ago.
, July 24 (Reuters) – With oil prices
falling, you wouldn’t think Williston, North Dakota, was “the
last great place for opportunity,” but that is the slogan the
state’s oil hub has come up with to try to shake off its
Those lured by that promise will find apartment rents have
begun to plunge in Williston after a 50 percent fall in the
price of oil caused hundreds of layoffs and put off job
seekers in search of the town’s legendary six-figure pay