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The energy sector is set for a lower start, pressured by weakness in the underlying commodities and the major market futures. U.S. stocks are expected to open in negative territory amid better-than-expected retail data and gloomy comments from Target, which is down nearly 14% in the pre-market.
WTI and Brent crude oil pulled-back from earlier highs, as focus shifted back to rising COVID-19 cases in China. Oil futures initially rose amid reports of an attack on an oil tanker off the coast of Oman and as API data showed a bigger-than-expected drop in crude inventories. However, China’s COVID-19 policy continued to dim the demand outlook. In international news, Iraq’s oil ministry is looking to increase oil production rates and raise baseline exports in line with global market demand and OPEC’s decisions.
Natural gas futures are down as disruptions at the Freeport LNG export plant offset gains from colder weather forecasts. Federal pipeline safety regulators released on Tuesday a heavily redacted report that blamed inadequate operating and testing procedures, human error, and fatigue for the June 8 explosion at the Freeport LNG plant.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
BP is paying more tax as it is making more profit, its UK head Louise Kingham told the Reuters Energy Transition Europe 2022 event.
According to Reuters, Eni signed a deal with unions to increase 2022 non managerial staff bonuses by 30%, to be paid in November.
Europe has failed in its energy transition, the chief executive of Spain’s biggest oil and gas firm Repsol told the Reuters Energy Transition Europe 2022 conference, citing especially the repercussions of the war in Ukraine.
Malaysian state oil and gas company Petronas has expressed interest to participate in Indonesia’s takeover of Shell’s stake in the Abadi LNG project, Indonesia’s upstream oil and gas regulator told a parliamentary hearing.
BASF TotalEnergies Petrochemicals facility – a 60/40 joint venture between BASF and TotalEnergies, based in Port Arthur, Texas – has obtained the International Sustainability and Carbon Certification (ISCC PLUS).
CANADIAN INTEGRATEDS
Suncor Energy’s Board of Directors has approved a quarterly dividend of $0.52 per common share representing an 11% increase over the prior quarter dividend.
U.S. E&PS
Comstock Resources announced that the Company has entered into a new senior secured revolving credit facility, which extends the maturity of Comstock’s existing bank credit facility to November 15, 2027. The new credit facility has an initial borrowing base of $2.0 billion with an elected commitment of $1.5 billion. The five-year reserve based revolving credit facility was arranged by Wells Fargo Securities, LLC with a syndicate of 17 participating banks.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
Civeo Corp announced that it was awarded a five-year contract with a resources player to provide integrated services at six villages in Western Australia. It is anticipated the initial five-year commitment will generate approximately A$600M in revenues over 2022-2027.
The board of directors of Compass Minerals has declared a quarterly cash dividend of $0.15 per share. This dividend is payable Dec. 20, 2022, to shareholders of record as of the close of business on Dec. 9, 2022.
Granite announced that the American River Constructors (ARC) joint venture team comprised of Granite and California Engineering Contractors has been awarded another contract by the California Department of Transportation (Caltrans) for the American River Bridge Rehabilitation Construction Manager/General Contractor (CM/GC) project in Sacramento, California. A CM/GC Preconstruction Service contract has been underway since January 2021 and will be complete by the end of 2022. In addition, two child contracts totalling $20 million have been executed for access, clearing, and steel piling and girder procurement. The newest contract is a $50 million child project to construct the substructure for the bridge widening, and started construction in June.
SLB is collaborating with Oman’s Ministry of Energy and Minerals and the Oman Investment Authority in building a national strategy to develop the potential of Oman’s geothermal resources.
According to Reuters, SLB said pricing tailwinds for oilfield services and equipment are materializing. It anticipates EBITDA growth in excess of 20% CAGR through 2025.
DRILLERS
Nabors Industries announced the launch of its Canrig Red Zone Robotics (RZR) Rig Floor Module, a modular rig upgrade that automates routine drilling activities.
Reference is made to the stock exchange announcement published by Seadrill on 27 April 2022 regarding the approval and publication of a prospectus prepared in connection with the listing of the Company’s shares on Euronext Expand and the contemplated subsequent transfer to, and listing on, the Oslo Stock Exchange. The Financial Supervisory Authority of Norway has approved a prospectus supplement dated 16 November 2022 to the Prospectus. The Prospectus Supplement has been prepared, inter alia, as a result of the approval by the board of directors of the Oslo Stock Exchange of the Company’s application for admission to trading on the main list of the Oslo Stock Exchange, as announced by the Oslo Stock Exchange on 10 November 2022.
REFINERS
No significant news.
MLPS & PIPELINES
Golar LNG Limited reported Net income of $141.1 million and Adjusted EBITDA of $85.2 million for Q3 2022.
TC Energy said its 622,000 barrel-per-day Keystone oil pipeline will curtail volumes due to a series of recent severe weather-related impacts to system facilities.
Williams announced that it has entered into a non-binding heads of agreement (HOA) with Sempra Infrastructure, a subsidiary of Sempra, that establishes the elements of an integrated platform to further connect the prolific Haynesville basin to growing LNG export demand along the Gulf Coast and around the world. The HOA contemplates long-term gas sales of approximately 0.5 billion cubic feet per day (Bcf/d) delivered near Gillis, Louisiana, and two LNG offtake agreements for approximately 3 million tons per annum (mtpa) in the aggregate from Sempra Infrastructure’s proposed Cameron LNG Phase 2 and Port Arthur LNG projects. These proposed transactions complement Williams’ recently sanctioned low-carbon Louisiana Energy Gateway (LEG) gathering project and are expected to include connections to pipelines serving Sempra Infrastructure’s LNG export facilities.
MARKET COMMENTARY
U.S. stock index futures struggled for direction ahead of retail sales figures, while traders assessed the latest developments following reports of a missile landing in Polish territory near Ukraine. The dollar weakened, while gold firmed. European shares fell, with Mercedes Benz shares leading losses, after a report said the company slashed its China electric vehicle prices. Japan’s Nikkei ended higher as fears of escalation in Ukraine crisis faded. Brent crude prices rose after reports of a tanker being hit by a projectile off the coast of Oman.
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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