Free Annual Reports
Nexen's Investments Pay Off
Nexen (NYSE:NXY) hopes to grow oil and gas production by 7% in 2011, as the company benefits from its investments in the oil sands in Canada and various unconventional and conventional resource basins.
IN PICTURES: Consumer "Fads" That Haven't Faded
Production
Nexen recently released guidance on production growth for 2011 and estimates that the company will produce between 230,000 and 270,000 barrels of oil equivalent (BOE) per day. This is 7% growth over 2010, assuming the midpoint of the guidance, and adjusting for divestures made during the year.
Capital Plan
Nexen plans to spend between $2.4 billion and $2.7 billion CAD in capital in 2011 to explore and develop oil and gas resources on its properties. This capital will be allocated amongst the company's various properties including the Long Lake Oil Sands project, the Horn River Basin, the North Sea and various other conventional resource basins including the Gulf of Mexico and West Africa.
Exploration
Nexen has an ambitious exploration and appraisal program planned for 2011, and the company will spend between $600 million and $650 million on 22 prospects. These wells are spread among Nexen's portfolio of assets including the North Sea, the Gulf of Mexico, Canada and Colombia.
More Growth
The 7% production growth in 2011 is only the first part of 70,000 BOE per day of new production expected over the next two years. This production will come from a wide variety of areas in the company's portfolio.
In West Africa, Nexen expects the Usan development located offshore Nigeria to start producing oil in 2012. A floating production, storage and offloading (FPSO) unit is being set up here with a capacity of 180,000 BOE per day. Nexen's share will be 36,000 BOE per day. Nexen's partners at the Usan field include Total SA (NYSE:TOT), Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM). (L4)
Nexen is also ramping up development of its shale gas play, where the company has 301,000 net acres under lease in the Horn River basin and two other areas in British Columbia. Nexen expects first production from here in late 2011.
In the North Sea, Nexen is completing tiebacks that will increase production from 10,000 to 20,000 BOE per day by the end of 2012.
Contingent Resources
Nexen also recently released estimates for contingent resources on the company's Horn River Basin and Long Lake properties. The company estimates that the Long Lake and other oil sands properties in its portfolio have contingent resources ranging from three to six billion barrels of bitumen. The Horn River Basin and Cordova properties have contingent resources estimated in a range between 4 and 15 trillion cubic feet of natural gas.
Nexen will deliver 7% production growth to investors in 2011, as the company's focus on a wide variety of global oil and gas opportunities starts to pay off for the company. (Find out how to invest and protect your investments in this slippery sector. Check out Peak Oil: What To Do When The Wells Run Dry.)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
IN PICTURES: Consumer "Fads" That Haven't Faded
Production
Nexen recently released guidance on production growth for 2011 and estimates that the company will produce between 230,000 and 270,000 barrels of oil equivalent (BOE) per day. This is 7% growth over 2010, assuming the midpoint of the guidance, and adjusting for divestures made during the year.
Capital Plan
Nexen plans to spend between $2.4 billion and $2.7 billion CAD in capital in 2011 to explore and develop oil and gas resources on its properties. This capital will be allocated amongst the company's various properties including the Long Lake Oil Sands project, the Horn River Basin, the North Sea and various other conventional resource basins including the Gulf of Mexico and West Africa.
Exploration
Nexen has an ambitious exploration and appraisal program planned for 2011, and the company will spend between $600 million and $650 million on 22 prospects. These wells are spread among Nexen's portfolio of assets including the North Sea, the Gulf of Mexico, Canada and Colombia.
More Growth
The 7% production growth in 2011 is only the first part of 70,000 BOE per day of new production expected over the next two years. This production will come from a wide variety of areas in the company's portfolio.
Nexen is also ramping up development of its shale gas play, where the company has 301,000 net acres under lease in the Horn River basin and two other areas in British Columbia. Nexen expects first production from here in late 2011.
In the North Sea, Nexen is completing tiebacks that will increase production from 10,000 to 20,000 BOE per day by the end of 2012.
Contingent Resources
Nexen also recently released estimates for contingent resources on the company's Horn River Basin and Long Lake properties. The company estimates that the Long Lake and other oil sands properties in its portfolio have contingent resources ranging from three to six billion barrels of bitumen. The Horn River Basin and Cordova properties have contingent resources estimated in a range between 4 and 15 trillion cubic feet of natural gas.
Nexen will deliver 7% production growth to investors in 2011, as the company's focus on a wide variety of global oil and gas opportunities starts to pay off for the company. (Find out how to invest and protect your investments in this slippery sector. Check out Peak Oil: What To Do When The Wells Run Dry.)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
by
Eric Fox
Eric J. Fox, CFA, is a freelance financial writer and has previous experience working in the asset management industry as an equity analyst and portfolio manager on the buy side. His favorite area to write on is the energy sector and he keeps current on the industry by reading Haynesville Shale, Permian Oil and Gas and various other blogs.
Free Annual Reports
