The energy sector continued to shuffle assets around with several major deals announced involving oil and gas properties in both the onshore United States and the Gulf of Mexico. The industry also reported continued success in global exploration to supply future energy demand.

Discount Brokers Comparison: Your one-stop shop for finding the perfect broker for your investments.

Shifting Sands
The cliché of beauty is in the eye of the beholder applies to the energy patch, with various companies divesting assets and finding other operators eager to gobble up these properties. Denbury Resources (NYSE:DNR) announced the sale of Bakken properties in North Dakota and Montana to Exxon Mobil (NYSE:XOM) for $1.6 billion and interests in two Exxon Mobil fields in Texas and Wyoming. Denbury Resources has decided to focus on its core carbon dioxide flood operations and believes that the two acquired fields are suitable for these activities.

Newfield Exploration Company (NYSE:NFX) announced the sale of its remaining oil and gas properties in the Gulf of Mexico to W&T Offshore (NYSE:WTI). The agreement covers interests in 12 oil and gas fields and brings proceeds from the company's total divestitures in the Gulf of Mexico to $300 million over the last year. Newfield Exploration Company plans to focus on core properties in the onshore U.S. and Southeast Asia.

Brazil Oil and Gas
Offshore Brazil is ground zero in the search for future energy supply and tens of billions will be spent here during the current decade to find oil and gas resources. General Electric (NYSE:GE) plans to take advantage of this growth and just announced a contract to supply offshore equipment to Petrobras (NYSE:PBR). The deal is worth $1.1 billion and includes sub-sea wellhead systems and other tools used for offshore exploration and development.

SEE: A Guide To Investing In Oil Markets

The industry continued to rack up oil and gas discoveries across the globe. Eni (NYSE:E) reported finding oil in an exploration well on the Cape Three Points block located offshore Ghana. The Sankofa East-1X well found 240 feet of net oil pay in Cretaceous era sandstone formations at a depth of approximately 12,000 feet. This was the first crude oil discovery on the block for Eni and the company plans further tests to confirm the commercial viability of the find. Eni is the operator of the Cape Three Points block and owns a 47.2% share.

Chevron Corporation (NYSE:CVX) reported another successful exploration well in the Carnarvon Basin in offshore Australia. The Satyr-2 well found 128 net feet of natural gas pay and was the company's fifteenth oil and gas discovery in Australia since 2009. The company plans to develop these resources to supply natural gas to the Gorgon Project, a liquefied natural gas (LNG) facility being built in Australia.

Chevron Corporation is the operator of the Gorgon Project and owns 47.3%. Exxon Mobil and Royal Dutch Shell (NYSE:RDS-A, RDS-B) are also involved with this project and own 25% each.

SEE: Oil And Gas Industry Primer

Anadarko Petroleum (NYSE:APC) also sees potential in the South Pacific and estimates that its exploration properties in New Zealand may hold up to 150 million barrels of crude oil along with trillions of cubic feet of natural gas potential. The company has three offshore blocks and plans drilling in 2013 or 2014.

The Bottom Line
The energy sector saw a number of major deals announced last week and also reported exploration success in West Africa and Australia as the hunt for oil and gas continued in earnest.

At the time of writing, Eric Fox did not own shares in any of the companies mentioned in this article.

Related Articles
  1. Stock Analysis

    Allstate: How Being Boring Earns it Billions (ALL)

    A summary of what Allstate Insurance sells and whom it sells it to including recent mergers and acquisitions that have helped boost its bottom line.
  2. Options & Futures

    Cyclical Versus Non-Cyclical Stocks

    Investing during an economic downturn simply means changing your focus. Discover the benefits of defensive stocks.
  3. Investing Basics

    How to Deduct Your Stock Losses

    Held onto a stock for too long? Selling at a loss is never ideal, but it is possible to minimize the damage. Here's how.
  4. Economics

    Is Wall Street Living in Denial?

    Will remaining calm and staying long present significant risks to your investment health?
  5. Stock Analysis

    When Will Dick's Sporting Goods Bounce Back? (DKS)

    Is DKS a bargain here?
  6. Investing News

    How AT&T Evolved into a Mobile Phone Giant

    A third of Americans use an AT&T mobile phone. How did it evolve from a state-sponsored monopoly, though antitrust and a technological revolution?
  7. Stock Analysis

    Home Depot: Can its Shares Continue Climbing?

    Home Depot has outperformed the market by a wide margin in the last 12 months. Is this sustainable?
  8. Stock Analysis

    Yelp: Can it Regain its Losses in 2016? (YELP)

    Yelp investors have had reason to be happy recently. Will the good spirits last?
  9. Stock Analysis

    Is Walmart's Rally Sustainable? (WMT)

    Walmart is enjoying a short-term rally. Is it sustainable? Is Amazon still a better bet?
  10. Stock Analysis

    GoPro's Stock: Can it Fall Much Further? (GPRO)

    As a company that primarily sells discretionary products, GoPro and its potential falls right in line with consumer trends. Is that good or bad?
  1. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  2. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  3. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  4. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
  5. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  6. What is the difference between issued share capital and subscribed share capital?

    The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >>

You May Also Like

Trading Center