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The energy sector is set for a higher start, supported by strength in the underlying commodities and the major market averages. U.S stocks are expected to open higher ahead of a crucial inflation reading this week that could provide more insight on interest rate hikes.
WTI and Brent crude oil are up in early trading as the talks with Iran hit obstacles and further sanctions on Russia become a possibility, amid existing tight supply. European leaders said they had “serious doubts” about Iran’s intentions to bring more barrels into the market, comments that were rejected by Tehran. Iran earlier this month sent its latest response to the European Union’s proposed text to restore the 2015 agreement under which Tehran had restrained its nuclear program in exchange for relief from U.S., EU and U.N. economic sanctions, which western diplomats said was a “step backward”. Additionally, the G7 is looking to impose a price cap on Russia which would be set at a fair market value minus any risk premium resulting from its invasion of Ukraine.
Natural gas futures fell this morning amid growing inventories, despite forecasts for warmer weather than previously expected.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
Reuters reported Azeri Energy Ministry said BP produced 13.8 mln tonnes of oil in Jan – Aug.
Abu Dhabi National Oil Company (ADNOC) and Eni explore further opportunities to positively contribute to increasing worldwide gas supply security. Sultan Al Jaber and Eni CEO Descalzi discussed the acceleration of the multi-billion-dollar Ghasha Project which is expected to produce more than 1.5 billion cubic feet of gas per day (bcfd), more than 120,000 barrels of high-value oil and condensates per day.
Yara International is close to acquiring the fertilizer unit put on sale by state-controlled oil company Petroleo Brasileiro, two sources with knowledge of the matter said on Friday.
Driivz, a leading global software supplier to EV charging operators and service providers, announced that Shell has selected the Driivz EV charging and smart energy management platform to help accelerate the build out of new charging locations in more than 10 European countries, supporting Shell’s ambition to operate over 500,000 charge points globally by 2025 and 2,500,000 by 2030.
CANADIAN INTEGRATEDS
Cenovus Energy announced the early tender results for its tender offers to purchase for cash certain of its outstanding series of Notes. Cenovus also announced it has increased the previously announced Pool 1 Maximum Amount from $1,000,000,000 to a total cash amount sufficient to accept for purchase all 4.250% Notes due 2027, 4.400% Notes due 2029, 4.450% Notes due 2042, 5.200% Notes due 2043 and 5.375% Notes due 2025 validly tendered and not validly withdrawn prior to or at the Early Tender Date. The Pool 2 Maximum Amount remains unchanged at $500,000,000 and as a result, Cenovus expects to accept for purchase the 6.750% Notes due 2039 validly tendered and not validly withdrawn prior to or at the Early Tender Date on a prorated basis.
U.S. E&PS
CNX Resources announced that it has commenced a cash tender offer to purchase up to $350,000,000 aggregate principal amount of the $700,000,000 amount outstanding of its 7.250% Senior Notes due 2027.
CNX Resources announced that it intends, subject to market and other conditions, to offer and sell to eligible purchasers $500 million of senior notes due 2031. The Notes will be guaranteed by all of CNX’s wholly owned restricted subsidiaries that guarantee its revolving credit facility. CNX intends to use the net proceeds of the sale of the Notes (i) to purchase up to $350 million aggregate principal amount of its outstanding 7.250% senior notes due 2027 pursuant to the tender offer that commenced concurrently with the offering of the Notes and (ii) to repay borrowings under our revolving credit facility, with any remaining proceeds used for general corporate purposes.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
RBC Capital Markets resumed coverage of Enerflex with a Sector Perform rating.
KBR announced it has been awarded a $38 million contract by Defense Logistics Agency (DLA) to provide maintenance support and sustainment of Automated Fuel Handling Equipment (AFHE) sites worldwide.
Shawcor announced that it will seek to change its name to Mattr. The Name Change is expected to occur during the first half of 2023, conditional on regulatory and shareholder approvals, and it is anticipated that trading of the Company’s common shares will commence under a new ticker symbol. Further details regarding the Name Change, including the effective date of the Name Change and the new ticker symbol of the Company, will be announced over the coming months. Concurrently, the Company has commenced a review of strategic alternatives for its Pipeline Performance Group, Shaw Pipeline Services and Oilfield Asset Management operating units. A range of options are under consideration, including the potential sale of all three operating units. Shawcor’s PPG and SPS operating units currently form the entirety of the Company’s Pipeline & Pipe Services reporting segment, while the OAM operating unit is a component of the Composites Systems reporting segment.
DRILLERS
No significant news.
REFINERS
No significant news.
MLPS & PIPELINES
Raymond James upgraded Enbridge to Outperform from Market Perform.
MARKET COMMENTARY
Wall Street futures were higher, after last week’s solid finish as investors await key U.S. inflation data due this week. Japan’s Nikkei ended at a more than two-week high with heavyweights and travel-related stocks leading the gains. European shares gained after Ukrainian forces made rapid advances against Russia in the north-east. The euro jumped against the dollar as ECB officials argued for further aggressive tightening of monetary policy, while gold prices firmed. Oil prices rose on uncertainty over supply issues. Oracle’s first-quarter earnings are scheduled for release after market closes.
Nasdaq Advisory Services Energy Team is part of Nasdaq’s Advisory Services – the most experienced team in the industry. The team delivers unmatched shareholder analysis, a comprehensive view of trading and investor activity, and insights into how best to manage investor relations outreach efforts. For questions, please contact Tamar Essner.
This communication and the content found by following any link herein are being provided to you by Corporate Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, “Nasdaq”), for informational purposes only. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Sources include Reuters, TR IBES, WSJ, The Financial Times and proprietary Nasdaq research.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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