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ConocoPhillips (COP) to Pay $914,000 Fine Over Alaska Gas Leak
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ConocoPhillips (COP - Free Report) has been imposed a $914,000 penalty over a well’s shallow underground blowout, which released natural gas at its Alpine field on Alaska’s North Slope, per a report by AP News.
The gas leak was first detected on Mar 4, 2022. ConocoPhillips has 15 days to challenge the penalty, which is a standard part of the commission process.
The Alaska Oil and Gas Conservation Commission accused ConocoPhillips of violating several state law regulations which led to the blunder that caused the leak. The commission manages oil and gas drilling in Alaska.
The incident released about 7.2 million cubic feet of natural gas into the atmosphere over several days. The leaked gas emerged at multiple areas of the drill pad. ConocoPhillips deviated a significant portion of the escaping gas to a gas processing facility.
During the leak, about 300 workers were temporarily removed from the site. The incident also raised concerns among residents in the nearby village of Nuiqsut. The leak stopped oil production from the drill site.
About $760,000 of the proposed fine is due to a failure to install cement around a portion of the waste disposal well where the eruption took place. Cement could have prevented the widespread gas release by confining it to a shallow underground zone to the wellbore.
Regarding ConocoPhillips’ other activities on Alaska’s North Slope, the company is seeking to develop the Willow oil drilling project. Earlier this year, the project was approved by the Biden administration but faces legal challenges from opponents.
The $8 billion Willow project is anticipated to produce more than 600 million barrels of petroleum over a 30-year period. Burning all that oil would lead to a possibility of 280 million metric tons of carbon emissions. That would result in 9.2 million metric tons of carbon emissions annually, which is the same as adding nearly two million new automobiles to the road.
ConocoPhillips is currently reviewing the commission’s notice and the findings from the investigation.
Price Performance
Shares of COP have outperformed the industry in the past three months. The stock has gained 3.8% compared with the industry’s 1.8% growth.
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL reported first-quarter 2023 earnings of 83 cents per share, beating the Zacks Consensus Estimate of earnings of 55 cents per share.
Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for SDRL’s 2023 and 2024 earnings is pegged at $2.93 per share and $4.01 per share, respectively.
Evolution Petroleum is an independent energy company. EPM reported first-quarter 2023 earnings of 42 cents per share, beating the consensus estimate of earnings of 17 cents per share.
Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings is pegged at $1.11 per share and $1.05 per share, respectively.
PHX Minerals is an oil and natural gas mineral company. The company posted first-quarter 2023 earnings of 11 cents per share, beating the Zacks Consensus Estimate of earnings of 7 cents per share.
PHX has witnessed upward earnings estimate revisions for 2024 in the past 60 days. The consensus estimate for the company’s 2023 and 2024 earnings per share is pegged at 28 cents and 45 cents, respectively.
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ConocoPhillips (COP) to Pay $914,000 Fine Over Alaska Gas Leak
ConocoPhillips (COP - Free Report) has been imposed a $914,000 penalty over a well’s shallow underground blowout, which released natural gas at its Alpine field on Alaska’s North Slope, per a report by AP News.
The gas leak was first detected on Mar 4, 2022. ConocoPhillips has 15 days to challenge the penalty, which is a standard part of the commission process.
The Alaska Oil and Gas Conservation Commission accused ConocoPhillips of violating several state law regulations which led to the blunder that caused the leak. The commission manages oil and gas drilling in Alaska.
The incident released about 7.2 million cubic feet of natural gas into the atmosphere over several days. The leaked gas emerged at multiple areas of the drill pad. ConocoPhillips deviated a significant portion of the escaping gas to a gas processing facility.
During the leak, about 300 workers were temporarily removed from the site. The incident also raised concerns among residents in the nearby village of Nuiqsut. The leak stopped oil production from the drill site.
About $760,000 of the proposed fine is due to a failure to install cement around a portion of the waste disposal well where the eruption took place. Cement could have prevented the widespread gas release by confining it to a shallow underground zone to the wellbore.
Regarding ConocoPhillips’ other activities on Alaska’s North Slope, the company is seeking to develop the Willow oil drilling project. Earlier this year, the project was approved by the Biden administration but faces legal challenges from opponents.
The $8 billion Willow project is anticipated to produce more than 600 million barrels of petroleum over a 30-year period. Burning all that oil would lead to a possibility of 280 million metric tons of carbon emissions. That would result in 9.2 million metric tons of carbon emissions annually, which is the same as adding nearly two million new automobiles to the road.
ConocoPhillips is currently reviewing the commission’s notice and the findings from the investigation.
Price Performance
Shares of COP have outperformed the industry in the past three months. The stock has gained 3.8% compared with the industry’s 1.8% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
COP currently carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy space are Seadrill Limited (SDRL - Free Report) , Evolution Petroleum Corporation (EPM - Free Report) and PHX Minerals Inc. (PHX - Free Report) . SDRL and EPM currently sport a Zacks Rank #1 (Strong Buy), and PHX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL reported first-quarter 2023 earnings of 83 cents per share, beating the Zacks Consensus Estimate of earnings of 55 cents per share.
Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for SDRL’s 2023 and 2024 earnings is pegged at $2.93 per share and $4.01 per share, respectively.
Evolution Petroleum is an independent energy company. EPM reported first-quarter 2023 earnings of 42 cents per share, beating the consensus estimate of earnings of 17 cents per share.
Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings is pegged at $1.11 per share and $1.05 per share, respectively.
PHX Minerals is an oil and natural gas mineral company. The company posted first-quarter 2023 earnings of 11 cents per share, beating the Zacks Consensus Estimate of earnings of 7 cents per share.
PHX has witnessed upward earnings estimate revisions for 2024 in the past 60 days. The consensus estimate for the company’s 2023 and 2024 earnings per share is pegged at 28 cents and 45 cents, respectively.