BG. Gas prices over 14% up recently with more to come - global LNG expanding and further exploration rights --- about to break out.

http://www.moneyam.com/action/news/showArticle?id=989336

dikytree.

Ooops.

Half Yearly Report

Second Quarter Key Points

· Business Performance EPS up 22% to 35.5 cents; Total EPS up 64% to 40.1 cents

· Interim dividend increased 10% to 14.38 cents per share (8.47 pence per share)

· E&P production down 10% at 591 kboed; primarily declines in Egypt and the USA

· LNG segment operating profit up 44%; additional cargo deliveries and favourable realised prices

· Excellent flow rates in Brazil; FPSO 2 at plateau; gross production around 300 kboed in July

· QCLNG remains on track; commissioning of the gas turbine generators underway

· CATS infrastructure asset sale for up to $961 million completed in July

StockMarketWire.com
BG Group has received a $350 million payment from the Egyptian government following its commitment to repay outstanding debts to the energy industry. BG says reduces the company's domestic receivables balance in Egypt to around $1.2bn.

The payment is the result of the government of Egypt raising funds specifically to help repay debts to the oil and gas sector.

While the group has been impacted by the reduction of LNG exports from Egypt, the company continues to investigate options for increasing the supply of gas and is working with the government on resolving the outstanding receivable balance.

3rd Quarter Results

Third Quarter Highlights

· Appointment of Helge Lund as Chief Executive

· E&P production down 2% at 569 kboed; decline in Egypt, partially offset by higher production in Brazil; no change to 2014 production guidance

· Upstream total operating profit at $746 million, down 36%; increased proportion of higher margin oil, more than offset by lower realised prices and higher costs

· LNG total operating profit at $576 million, down 4%; no change to 2014 LNG guidance

· Business Performance EPS down 29% to 22.3 cents; Total EPS up 22% to 44.3 cents

· Excellent flow rates in Brazil; BG Group net production exceeded 100 kboed in October

· QCLNG remains on track for first LNG in December; commenced mechanical testing of compressors

· $350 million equivalent received from Egyptian government in October; receivables down to $1.2 billion

StockMarketWire.com
Deutsche Bank retains buy on BG Group, target cut from 1400p to 1300p.

StockMarketWire.com
BG Group has agreed to sell its wholly-owned subsidiary QCLNG Pipeline Pty Ltd to APA Group (ASX: APA), Australia's largest gas infrastructure business, for approximately US$5.0bn.

QCLNG Pipeline Pty Ltd owns a 543 kilometre, large-diameter underground pipeline network linking BG Group's natural gas fields in southern Queensland to a two-train liquefied natural gas (LNG) export facility at Gladstone on Australia's east coast.

BG says the sale of this non-core infrastructure is consistent with the group's strategy of actively managing its global asset portfolio. The pipeline was constructed between 2011 and 2014 and has a current book value of US$1.6 billion. Tariffs payable on the pipeline are set to provide a fixed rate of return on the asset base with the primary tariff components escalating annually with US inflation indices. For the year ended 31 December 2016, the pipeline tariff is expected to deliver to APA Group EBITDA of approximately US$390 million.

The sale is conditional on the start of commercial LNG deliveries (post commissioning) from the QCLNG export facility at Gladstone and on partner consent. BG Group and its partners have firm capacity rights in the pipeline for 20 years, with options to extend.

BG Group agrees sale and charter of LNG vessels
BG Group (LSE: BG.L), a world leader in exploration and LNG, has entered into an agreement with GasLog Ltd for them to acquire two modern tri-fuel diesel electric ("TFDE") LNG carriers for proceeds of $460 million. BG Group will charter back the two vessels, the Methane Becki Anne and Methane Julia Louise, for nine and eleven years with further options to extend the term for each vessel by either three or five years. The transactions provide BG Group with flexibility in managing its future fleet requirements and, as the ships are currently managed by GasLog, leave day to day operations broadly unchanged.

The LNG carriers are currently associated with a Pension Funding Partnership which is one element of the Group's funding arrangements for the BG Pension Scheme. Consequently the majority of the proceeds from this sale will be utilised to support the funding of that scheme.
The remaining net proceeds from the transaction of around $100m will be used to reduce the Group's net debt.

Closing of the transaction is subject to the satisfaction of certain conditions, including the completion of definitive documentation. The transaction is expected to close in the first quarter of 2015, with the charter agreement expected to commence at the same time.

StockMarketWire.com
BG Group has been loading the first cargo of LNG from its Queensland Curtis LNG (QCLNG) facility since 28 December.

The vessel being loaded is the 'Methane Rita Andrea'. The second cargo of LNG from the facility will be loaded on to the 'Methane Mickie Harper' which is expected in Gladstone in the first week of January.

QCLNG is the world's first LNG project to be supplied by coal seam gas. The start of production from the plant's first LNG train is the result of more than four years of development and construction on Curtis Island.

Interim executive chairman Andrew Gould said: "This is an immense achievement which demonstrates the company's ability to deliver a highly complex LNG project. The start-up of QCLNG is testament to the hard work, skill and dedication of all our employees, partners and customers including the thousands of individuals who have been involved in physically building the plant. The ongoing support from both the State Government of Queensland and the local councils of our upstream region and in Gladstone has also been pivotal in this development. We thank them all."

The project will expand further with the start-up of the second train in the third quarter of 2015. At plateau production, expected during 2016, QCLNG will have an output of around 8 million tonnes of LNG a year.

StockMarketWire.com
BG Group has received a further payment equivalent to US$350m from the Egyptian government following its commitment to repay outstanding debts to the energy industry.

This reduces the company's domestic receivables balance in Egypt to around US$920m.

While the Group has been affected by the reduction of LNG exports from Egypt, the company continues to investigate options for increasing the supply of gas and is working with the government on resolving the outstanding receivable balance.

FOURTH QUARTER & FULL YEAR RESULTS

Full year key points

· E&P production within guidance at 606 kboed; LNG total operating profit ahead of guidance at $2 544 million; both 4% lower than 2013

· First LNG from QCLNG Train 1; five FPSOs onstream in Brazil, net production above 125 kboed in January

· Signed agreements for non-core asset disposals totalling $6.6 billion ($1.1 billion completed in 2014)

· Business Performance earnings $4 035 million, down 8%

· Total earnings down to $(1 051) million, reflecting non-cash post-tax impairments of $5 928 million

· Business Performance EPS down 8% to 118.4 cents; Total EPS down to (30.8) cents

· Full year dividend held flat at 28.75 cents per share (17.99 pence per share)

· 2015 E&P production 650 - 690 kboed; 2015 LNG S&M segment total operating profit $0.7 - 1.0 billion

· 2015 capital investment on a cash basis $6 - 7 billion

StockMarketWire.com
BG Group has confirmed that the Petrojarl Knarr floating production, storage and offloading vessel has started production from the Knarr oil field in the North Sea, offshore Norway.

he FPSO has been leased from Teekay Corporation (NYSE: TK) and is moored approximately 120 kilometres off the Norwegian coast. It has a production capacity of 63 000 barrels of oil equivalent per day and a storage capacity of 800 000 barrels.

The Knarr field, discovered in 2008, has estimated gross recoverable reserves of around 80 million barrels of oil equivalent with a production life of at least ten years. In 2011 the Knarr field was merged with the Knarr West field into an integrated development. New exploration drilling in the licence area is ongoing, in order to help extend the production life further.

BG Group is the operator of the field with a 45% working interest. Partners include Idemitsu Petroleum Norge (25%), Wintershall Norge (20%) and DEA Norge AS (10%).

Shell 'in advanced discussions' to buy BG Group

BG Group has confirmed that it is "in advanced discussions" with energy giant Shell over a possible merger, in what could be one of the biggest deals of 2015.
The mega-merger could produce a company with a combined market capitalisation of more than £200bn ($296bn; €274bn).

BG Group confirmed the news, first reported in the Wall Street Journal, but a Shell spokesman told the BBC: "We're not making any comment."
Shell has until 5 May to make an offer.

But BG added: "There can be no certainty that any offer will ultimately be made for BG."

RECOMMENDED CASH AND SHARE OFFER FOR BG GRROUP PLC

Summary

The Boards of Shell and BG are pleased to announce that they have reached agreement on the terms of a recommended cash and share offer to be made by Shell for the entire issued and to be issued share capital of BG.

· Under the terms of the Combination, BG Shareholders will be entitled to receive:

For each BG Share: 383 pence in cash; and

0.4454 Shell B Shares[1]

· Based on the 90 trading day volume weighted average price of 2,170.3 pence per Shell B Share on 7 April 2015 (being the last Business Day before the date of this Announcement), the terms of the Combination represent:

- a value of approximately 1,350 pence per BG Share; and

- a premium of approximately 52% to the 90 trading day volume weighted average price of 890.4 pence per BG Share on 7 April 2015.

· Based on the Closing Price of 2,208.5 pence per Shell B Share on 7 April 2015 (being the last Business Day before the date of this Announcement), the terms of the Combination represent:

- a value of approximately 1,367 pence per BG Share;

- a premium of approximately 50% to the Closing Price of 910.4 pence per BG Share on 7 April 2015; and

- a value of approximately £47.0 billion for BG's entire issued and to be issued share capital.

· The Combination will result in BG Shareholders owning approximately 19% of the Combined Group.

· Shell expects the Combination to accelerate its growth strategy in global LNG and deep water.

· The Combination will add some 25% to Shell's proved oil and gas reserves[2] and 20% to production, each on a 2014 basis, and provide Shell with enhanced positions in competitive new oil and gas projects, particularly in Australia LNG and Brazil deep water.

· The Combination has the potential to unlock further value for both sets of shareholders from the combined portfolio. An enhanced set of upstream positions will be a springboard to high-grade the Combined Group's longer term portfolio, increase asset sales and reduce capital investment, thereby enhancing the Combined Group's capacity to pay dividends and undertake share buybacks.

· Shell expects the Combination to generate pre‑tax synergies of approximately $2.5 billion per annum (which have been reported on) and has also identified further significant opportunities.

· In the near term, BG Shareholders will benefit from the dividends enjoyed by Shell Shareholders.[3] Shell today confirms its intention to pay dividends of $1.88 per ordinary share in 2015 and at least that amount in 2016.

· In the medium term, all shareholders will benefit from the potential for enhanced cash flow and a continued drive to grow returns and enhance capital efficiency from the combined portfolio.

· Shell expects to commence a share buyback programme in 2017 of at least $25 billion for the period 2017 to 2020.[4] Shell expects this programme to offset the shares issued under the Shell scrip dividend programme and to significantly reduce the equity issued in connection with the Combination.

more....

phew! at least my holding here has turned from red to black

but leaving that aside, the 1 year chart below shows just what an awful time the oilies have been having - eg BG dropping about 1/3

of course, the kneejerk knock-on effect across the whole of this sector will be massive and it won't do ftse any harm either
the skill will be to determine which small/medium oilies are indeed genuine targets - eg have real assets - and are even worth holding on fundies ..... of course i'll plump for PMO and TLW and mentor will prob add OPHR to that

Cynic: Glad it turned out positive in the end for you, perhaps this might be the start of a rerating for some other oil/gas majors.

it's not the majors that will be interesting, but the second tier companies

A bit unfortunate in their timing!

Liberum Capital Hold 1,255.25 910.40 886.00 886.00 Reiterates

Skinny; Well at least they didn't say sell at 886P

This is true!

StockMarketWire.com
Canaccord Genuity has downgraded its recommendation on BG Group (LON:BG.) to 'hold' from 'buy' after Royal Dutch Shell (LON:RDSB) confirmed that has reached agreement on the terms of a recommended cash and share offer to acquire the entire issued share capital of BG.

The broker has upped its target price to 1,300 pence a share (from 1,016 pence), which it pointed out only leaves around 3 per cent potential upside.

"If we run the RDS assumptions then our de-risked value would rise to 1499p/sh," analysts added.

"So, RDS does not look like it is overpaying if you assume US$90/bbl long term. Strategically, RDS sees LNG and deepwater projects as its key growth areas. BG is LNG and Brazil deepwater.

"We calculate the combined entity will be EPS accretive from 2017 and CFPS accretive from 2016."

the price has now slipped to about 1180 so shall watch and then buy a few more, for there looks to be an easy 10% to be made in a pretty short time and it's almost underwritten

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bought perhaps marginally prematurely at 1173.50