Gas prices, anyone notice...

[TwoForFlinching]

Nope, fuel tankers are lined up 24-7 at the refinery. It supplies gasoline/diesel fuel for stations ranging out 100 miles in every direction. It is a regional hub.
I'm constantly amazed when people prefer one brand of gas over another. It's all coming out of the same refinery, same storage tanks, and then delivered in generally unmarked fuel tankers.
Grondike transportation has a lot here with dozens of fuel tankers that run around the clock.

That's how this refinery makes record profits year after year... The Cushing pipeline from Odessa, currently pumping WTI is all coming into Ponca... So the refinery gets to set it's own price, (word is about $56 a barrel right now) and it will stay that way. You think gas in PC is expensive now??? Wait until the Keystone from the gulf is completed to Cushing... It'll go back up to offset the loss of profit margin here in PC.

And for the record, not all gas is the same. It's the additives pumped in while filling the trucks that varies the petrol... Shell arguably has the best additive package, but the Cph/Ph66 is a really close second.

 

[peanut]

1/31/2013
HOUSTON – ConocoPhillips today reported fourth-quarter 2012 earnings of $1.4 billion, or $1.16 per share, compared with fourth-quarter 2011 earnings of $3.4 billion, or $2.56 per share. Fourth-quarter 2011 reported earnings included downstream results prior to the separation of Phillips 66 on April 30, 2012.
Excluding special items, fourth-quarter 2012 adjusted earnings were $1.8 billion, or $1.43 per share, compared with fourth-quarter 2011 adjusted earnings of $2.1 billion, or $1.55 per share. Special items for the current quarter included disposition-related impairments partially offset by tax impacts, net benefits related to legal claims and settlements, and discontinued operations.
Following recently announced agreements to dispose of the company’s interests in the Kashagan Field and the Algeria and Nigeria business units, the associated earnings and production impacts for these assets have been reported as discontinued operations. This decreased adjusted earnings for fourth-quarter 2012 by $27 million, or $0.02 per share.
Full-year 2012 earnings were $8.4 billion, or $6.72 per share, compared with full-year 2011 earnings of $12.4 billion, or $8.97 per share. Reported earnings for 2012 and 2011 included four months and 12 months of downstream results, respectively. Full-year 2012 adjusted earnings were $6.7 billion, or $5.37 per share, compared with full-year 2011 adjusted earnings of $8.0 billion, or $5.75 per share.
Reserves Update
Preliminary year-end 2012 proved reserves are 8.6 billion barrels of oil equivalent (BOE). Proved organic reserve additions for 2012 are expected to be 942 million BOE, representing an organic reserve replacement ratio of 156 percent of 2012 production, including fuel gas. Sales completed during 2012, net of purchases, reduced reserves by 83 million BOE, giving a total reserve replacement ratio of 142 percent.
Fourth-Quarter Review
Production from continuing operations for the fourth quarter of 2012 was 1,566 MBOED, compared with 1,538 MBOED for the fourth quarter of 2011. Adjusted for completed dispositions, production grew by 83 MBOED compared to fourth-quarter 2011. This increase was primarily due to new production from major projects and drilling programs as well as higher production in Libya and China. These increases more than offset normal field decline and downtime.
Adjusted earnings decreased compared with fourth-quarter 2011 primarily due to the impact of lower commodity prices. The company’s total realized price fell to $67.45 per BOE, compared to $69.99 per BOE in the fourth quarter of 2011. Realized crude oil prices decreased to $103.08 per barrel, compared with $105.92 per barrel for the fourth quarter of 2011. Realized natural gas liquids (NGL) prices decreased by 18 percent to $44.93 per barrel, compared with $55.06 per barrel for the fourth quarter of 2011. Realized natural gas prices decreased to $5.79 per thousand cubic feet (MCF), compared with $5.88 per MCF for the fourth quarter of 2011.
(See EARNINGS, Page 2)
For the quarter, cash provided by continuing operating activities was $3.87 billion. Excluding a working capital increase of $0.37 billion, ConocoPhillips generated $4.24 billion in cash from operations. The company funded a $3.6 billion capital program and paid dividends of $0.8 billion. During the quarter, debt increased $0.6 billion, reflecting the placement of $2.0 billion in low-interest debt, retirement of maturing debt and repayment of commercial paper.
Full-Year Review
Production from continuing operations for the year was 1,527 MBOED, compared with 1,561 MBOED for 2011. Adjusted for completed dispositions, production grew by 7 MBOED compared to 2011. New production from major projects and drilling programs, as well as higher production from the resumption of operations in Libya, offset normal field decline and downtime.
Adjusted earnings decreased compared with 2011 primarily due to the impact of lower commodity prices and volumes. The company’s full-year 2012 realized price fell to $67.68 per BOE, compared to $69.14 per BOE in 2011. Realized crude oil prices increased to $105.72 per barrel, compared with $105.52 per barrel for the full year of 2011. Realized NGL prices decreased by 17 percent to $46.36 per barrel, compared with $55.73 per barrel for the full year of 2011. Realized natural gas prices decreased by 6 percent to $5.48 per MCF, compared with $5.80 per MCF for the full year of 2011. Realized bitumen prices decreased by 14 percent to $53.91 per barrel, compared with $62.56 per barrel for the full year of 2011.
For the year, cash provided by continuing operating activities was $13.5 billion. Excluding a working capital increase of $1.2 billion, ConocoPhillips generated $14.7 billion in cash from operations. The company received $2.1 billion in proceeds from asset dispositions and $5.5 billion in net cash related to the separation of Phillips 66. ConocoPhillips funded a $15.7 billion capital program, including $0.8 billion related to discontinued operations. During the year, the company paid dividends of $3.3 billion and repurchased shares for $5.1 billion. Debt decreased by $0.9 billion.
As of Dec. 31, 2012, ConocoPhillips had debt of $21.7 billion and the debt-to-capital ratio was 31 percent. The company had $3.62 billion of cash and cash equivalents and $0.75 billion in restricted cash targeted for dividends.
Outlook
Total production for the first quarter of 2013 is expected to be 1,580 to 1,600 MBOED, including production from discontinued operations of approximately 40 MBOED. Full-year 2013 production from continuing operations is expected to be 1,475 to 1,525 MBOED.
In addition to $2.1 billion in proceeds from asset dispositions completed in 2012, the company has announced asset sales that are expected to close by mid-2013, generating additional proceeds of approximately $9.6 billion. The company continues to evaluate opportunities to further optimize the portfolio.
ConocoPhillips will hold its annual analyst meeting on Feb. 28 in New York. Representatives from company management will discuss the company’s strategic plans for growth and value creation.

Do you have a summary? You know, ADD and all!

 

[Eddie729]

I remember: It's George Bush.

I just can't figure out how he is sill doing it.

Now thats funny...To this day he is still blamed for things.WHEN when is the king in the White House ever going to take responsibility for his failuers which continue to climb every day. Back to gas prices. How soon we forget what they were 2 weeks or so ago. Walmart i paid 2.79 using their card. Which this State needs to change this stoooopid law where people cant sell things at or below cost. Let the gas wars begin

 

[Eddie729]

Do you have a summary? You know, ADD and all!

I love my Exxon/Mobil stock now adays...LOL

 

[ZombieHunter]

Don't forget that oil and gas companies have to pay for Obamacare for their employees too. Obamacare, the gift that keeps on giving.

Most People aside from Field hands and DIRECT geologist support are 1099 Contracted in the Petroleum industry, so NO they do not have obamacare to pay for, any employees not already covered by health insurance are responsible for their OWN insurance, Source: I am a 1099 contractor who is wondering what I am going to do still. I need a $20k raise just to afford the LOWEST tier of health insurance, or I need a $5k raise to cover the cost of the TAX/FINE, but I do not think they are going to pass that on to us, it will most likely be the end of my Field Landman Career as I cannot make $15k or less as take home after insurance and taxes, taxes alone even with my LLC. and write-offs are close to %28, in other words I am hurtin' and squirtin'

 

[carlstretch]

I was joking a bit earlier but really, costs have gone way up for things like pipe, cement, and overall cost to drill and complete a well. Just 4 years ago my cost to drill and complete my wells was around $375,000. Today that cost is $725,000,... and that is for a simple vertical well 5000ft deep. A 10,000ft horizontal well is more than $5million/well. That is before one barrel of oil is recovered. It's similar to the construction industry. Copper, cement, pipe, etc has skyrocketed in price over the last 10 years.

So,.... are the oil/gas companies making profits,.. yes, that is why they are taking the risk,... because big profits are possible.

Most People aside from Field hands and DIRECT geologist support are 1099 Contracted in the Petroleum industry, so NO they do not have obamacare to pay for, any employees not already covered by health insurance are responsible for their OWN insurance, Source: I am a 1099 contractor who is wondering what I am going to do still. I need a $20k raise just to afford the LOWEST tier of health insurance, or I need a $5k raise to cover the cost of the TAX/FINE, but I do not think they are going to pass that on to us, it will most likely be the end of my Field Landman Career as I cannot make $15k or less as take home after insurance and taxes, taxes alone even with my LLC. and write-offs are close to %28, in other words I am hurtin' and squirtin'

This is the exact reason I have worked as a geologist for oil and gas companies rather than have my own consulting business.

You should call SandRidge. Seriously,.. they need Landmen.

 

[dennishoddy]

That's how this refinery makes record profits year after year... The Cushing pipeline from Odessa, currently pumping WTI is all coming into Ponca... So the refinery gets to set it's own price, (word is about $56 a barrel right now) and it will stay that way. You think gas in PC is expensive now??? Wait until the Keystone from the gulf is completed to Cushing... It'll go back up to offset the loss of profit margin here in PC.

And for the record, not all gas is the same. It's the additives pumped in while filling the trucks that varies the petrol... Shell arguably has the best additive package, but the Cph/Ph66 is a really close second.

I didn't mention additives, just gasoline. Before he retired, a friend was a blender there. I can't remember how many ounces of Keotane he added to a tanker load. Not much, but enough that Texaco could claim it was actually in there if someone were to test it.

To this day, I don't understand why they gave up their share of the keystone pipeline.
I guess they know their business better than I do.

 

[jdagreek]

I am always amazed that people will complain about gas prices while they drink 12 ounces of water out of a plastic bottle that they paid $1.25. Or even worse drink a diet coke they paid $1.59

When you are driving from work in that 5:00 traffic creeping along at 5 - 10 mph and looking at that three lanes of traffic up in front of you, do you ever wonder how in the hell we can pump all of that oil out of the ground and transport it the gas stations and keep this system up and running?

To me, this is a miracle. Do you ever contemplate how many people and how much money is involved in the research, discovery, drilling [dry holes as well] transporting, refining and more transporting it takes to keep all the cars/trucks running in OKC alone?

I paid $35 dollars for a fairly nice cotton shirt the other day. The shirt had to have at least a pound of cotton in it. That pound of cotton most likely cost less than 5% of the total cost of the shirt. We know the labor was minimal as it was made in China. US Farmers produced the cotton, it was sold via a broker to a middle man who sent it to China where it was turned into my shirt then sent back to the US where another middle man sold it to the store where I bought it. I am positive I left out a few steps and a few more middle men, but you get the drift. You want to ***** about something, ***** about the cost of the shirts you buy or the jeans you buy that are now made in China and sell for $59.95+ a pair.

 

[TwoForFlinching]

I didn't mention additives, just gasoline. Before he retired, a friend was a blender there. I can't remember how many ounces of Keotane he added to a tanker load. Not much, but enough that Texaco could claim it was actually in there if someone were to test it.

To this day, I don't understand why they gave up their share of the keystone pipeline.
I guess they know their business better than I do.

Yeah, the blend is ounces per thousand gallons lol... It's amazing how so little makes such a difference

 

[ZombieHunter]

I was joking a bit earlier but really, costs have gone way up for things like pipe, cement, and overall cost to drill and complete a well. Just 4 years ago my cost to drill and complete my wells was around $375,000. Today that cost is $725,000,... and that is for a simple vertical well 5000ft deep. A 10,000ft horizontal well is more than $5million/well. That is before one barrel of oil is recovered. It's similar to the construction industry. Copper, cement, pipe, etc has skyrocketed in price over the last 10 years.

So,.... are the oil/gas companies making profits,.. yes, that is why they are taking the risk,... because big profits are possible.



This is the exact reason I have worked as a geologist for oil and gas companies rather than have my own consulting business.

You should call SandRidge. Seriously,.. they need Landmen.

Sandridge wants to pay me $40k a year salary, I make $75k independently in 4 months of working, IF they feel like upping their salary range for me and guaranteeing I wont work more than 6 months a year sure, but I have gotten turned away as soon as I tell a Manager what I make now let alone the actual time worked, they say they cant match it! Which is BS because half the contractors these Oil and Gas companies hire cant produce decent work and they just turnover anyways.

I do strict Due Diligence work, Prefer to Work from Home, and if they want me to travel my per-diem is higher than usual as well. When you have the land and property law skills that I do they will take advantage of me if they are not paying through the teeth for it.

Yes the cost of wells are pricey, I know this because I have a 3/16th royalty in a well in Kansas, That royalty INCLUDES working interest, but the amount of money SPECULATED on the minerals and spent BEFORE drilling is where the problem comes in. I know independent landman with MILLIONS of $ that go out and lease faster and smarter than the big dogs, and they then turn around and flip the minerals in lease packages for 10,000% interest. The rampant speculation and lack of regulation as far as who and what can lease and sell minerals has led to an artificial increase in its value.