Oil rig
Oil

Crude Rises on U.S.-China Trade Deal Progress

Oil rose above $62 a barrel on Thursday after China hinted at progress towards a trade deal with the United States, raising hopes for an end to a long dispute that has weighed on economic growth and fuel demand.

SECTOR COMMENTARY

Energy stocks are set to open higher by nearly 1%, boosted by higher index futures that are set to open near fresh record highs, alongside a greater than 1% gain in oil prices.  News that the U.S. and China would cancel existing trade tariffs in phases is helping to drive the broad premarket gains in risk assets.  Additionally, today marks one of the busiest days of the earnings season across the energy sector, which will boost trading levels. 

Oil rose above $62 a barrel on Thursday after China hinted at progress towards a trade deal with the United States, raising hopes for an end to a long dispute that has weighed on economic growth and fuel demand.  China and the United States have agreed in the past two weeks to cancel tariffs in different phases, the Chinese commerce ministry said on Thursday without giving a timeline. "Today we start with a different set of headlines that they came to some agreement on the framework," said Olivier Jakob, oil analyst at Petromatrix. "That is definitely what is supporting prices." 

Natural gas futures are lower by 1% ahead of weekly inventory data.  Analysts expect a build of 46 bcf.  Prices have given back gains over the last 1-2 sessions amid profit taking after reaching levels not seen since January on cold weather forecasts.

INTERNATIONAL INTEGRATEDS                            

Reuters - Petroleo Brasileiro SA Petrobras and CNODC, a unit of China National Petroleum, were awarded rights to explore and produce oil at the Aram block in the country's Santos basin by offering the minimum allowed profit oil of 29.96 percent.

CANADIAN INTEGRATEDS

(Late Wednesday) Press Release - Suncor announced the appointment of Lorraine Mitchelmore to the company’s board of directors.  Ms. Mitchelmore’s appointment is effective Nov. 6, 2019.                  

U.S. E&PS 

(Late Wednesday) Press Release - Bonanza Creek Energy announced its third quarter 2019 financial results and operating outlook. During the third quarter of 2019, the Company reported average daily sales of 24.3 MBoe/d. As expected, the Company's third quarter product mix was 57% oil, 17% NGLs, and 26% residue natural gas. The oil mix was down from 62% in the second quarter of 2019, primarily as a result of wells placed on production in the fourth quarter of 2018 and first quarter of 2019 maturing. Capital expenditures were $46.4 million for the third quarter of 2019 and $172.8 million year-to-date 2019. The Company has lowered its annual capital expenditure guidance range to $230 to $240 million. The Company's previously estimated 2019 activity levels consisting of 59 gross wells spud and 45 gross wells turned to sales are unchanged.

(Late Wednesday) Press Release - Paulson & Co. Inc., as manager of funds holding 21.6 million shares, or 9.5% of those outstanding, of Callon Petroleum, voted its Callon shares against the proposed acquisition of Carrizo Oil & Gas

Press Release - Comstock Resources reported financial and operating results for the third quarter of 2019.  On July 16, 2019, Comstock completed the acquisition of Covey Park Energy, LLC.  The Company's financial results include the results of operations of Covey Park in the third quarter of 2019 beginning on July 16, 2019. For the third quarter of 2019, Comstock reported a net loss available to common stockholders of $1.3 million or $0.01 per diluted share.  Net income available to common stockholders for the third quarter of 2019 was $34.3 million or $0.17 per diluted share as adjusted to exclude certain items not related to normal operating activities partly due to the closing of the Covey Park acquisition.  These items, net of income taxes, include $28.7 million of transaction costs related to the Covey Park acquisition including professional fees, severance costs and other change of control payments; $2.9 million in interest amortization resulting from adjusting debt assumed in the acquisition to fair value; $3.2 million of hedging settlements related to July production that were received prior to closing; and $0.8 million in unrealized hedging gains.  

Press Release - Denbury Resources announced net income of $73 million, or $0.14 per diluted share, for the third quarter of 2019.  Adjusted net income (a non-GAAP measure) was $41 million, or $0.08 per diluted share, with the difference from GAAP net income primarily due to a $35 million gain from noncash fair value adjustments ($26 million after tax) on the Company’s commodity derivative positions. The company generated cash flow from operations of $131 million and free cash flow (a non-GAAP measure) of $44 million after considering development capital expenditures, capitalized interest and interest treated as debt reduction, with 2019 year-to-date free cash flow of $109 million. During the third quarter, Denbury repurchased $11 million in aggregate principal amount of its then outstanding 5½% Senior Subordinated Notes due 2022 (“5½% Senior Subordinated Notes”) in open market transactions for a total purchase price of $5 million, excluding accrued interest.  In connection with these transactions, the Company recognized a $6 million gain on debt extinguishment, net of unamortized debt issuance costs written off, during the three and nine months ended September 30, 2019.

Oppenheimer & Co downgraded Diamondback Energy to ‘Perform’ from ‘Outperform.’ 

(Late Wednesday) Press Release - Earthstone Energy announced financial and operating results for the quarter and nine months ended September 30, 2019. The company reported average daily production of 12,181 Boepd, adjusted EBITDAX of $29.8 million, adjusted EBITDAX per Boe of $26.58, Operating Margin of $26.84 per Boe ($30.15 including realized hedge settlements), capital expenditures of $78.6 million representing 38% of guidance with expected 2019 total capital expenditures of $205 million, net income of $26.1 million, or $0.41 per Adjusted Diluted Share, and adjusted net income of $11.6 million, or $0.18 per Adjusted Diluted Share. 

(Late Wednesday) Press Release - EOG Resources reported third quarter 2019 net income of $615 million, or $1.06 per share, compared with third quarter 2018 net income of $1.2 billion, or $2.05 per share. Net cash provided by operating activities for the third quarter 2019 was $2.1 billion. Adjusted non-GAAP net income for the third quarter 2019 was $654 million, or $1.13 per share, compared with adjusted non-GAAP net income of $1.0 billion, or $1.75 per share, for the same prior year period.

Press Release - Kosmos Energy announced that Ms. Lisa Davis has joined its Board of Directors, effective yesterday, November 6, 2019. Ms. Davis is a senior executive with more than 30 years of extensive experience in oil, gas, power generation, renewable energy, and manufacturing.

(Late Wednesday) Press Release - Marathon Oil reported third quarter 2019 net income of $165 million, or $0.21 per diluted share, which includes the impact of certain items not typically represented in analysts' earnings estimates and that would otherwise affect comparability of results. Adjusted net income was $111 million, or $0.14 per diluted share. Net operating cash flow was $737 million, or $757 million before changes in working capital. The Company has executed $300 million of year-to-date share repurchases, returning additional capital to shareholders beyond the $122 million of year-to-date dividend payments. Since the beginning of 2018, Marathon Oil has repurchased $1 billion of its own shares, representing approximately 7% of its outstanding share count, funded entirely by post-dividend organic free cash flow generation of over $1 billion over the same period.

Press Release - Noble Energy announced third quarter 2019 financial and operating results. The Company reported third quarter net income attributable to Noble Energy of $17 million, or $0.04 per diluted share. Net income including noncontrolling interest was $36 million. Excluding items impacting comparability, the Company generated an adjusted net loss and adjusted net loss per share attributable to Noble Energy for the quarter of $47 million and $0.10 per diluted share. Adjusted EBITDAX was $641 million, and cash provided by operating activities was $437 million. Prior to working capital changes, operating cash flow was $550 million for the third quarter.

(Late Wednesday) Press Release - Noble Energy announced that the Company and its partners have closed on the acquisition of a 39 percent equity interest in the Eastern Mediterranean Gas Company S.A.E., which owns the EMG Pipeline.  The pipeline will be used to transport natural gas volumes into Egypt under the Company’s gas supply agreements with Dolphinus Holdings.  Noble Energy’s net acquisition investment in the EMG Pipeline totaled $185 million, and the Company’s effective interest in the pipeline is 10 percent. 

(Late Wednesday) Press Release - PDC Energy reported its 2019 third quarter financial and operating results. Net income for the third quarter of 2019 was $16 million, or $0.25 per diluted share, compared to net loss of $3 million, or $0.05 per diluted share, for the comparable 2018 period. The primary difference between periods is a result of an approximate $150 million difference in gain (loss) on commodity derivatives. Adjusted net loss for the third quarter, a non-GAAP financial measure defined below, was $24.5 million, or $0.39 per diluted share in 2019 compared to adjusted net income of $32 million, or $0.48 per diluted share in 2018. The year-over-year difference was primarily attributable to a $44 million loss on sale of properties realized in the third quarter of 2019. Year-to-date, the Company has returned approximately $155 million of capital to shareholders through the repurchase of approximately 4.7 million shares of common stock outstanding via its previously announced $200 million stock repurchase program. Approximately $40 million was used to repurchase 1.2 million shares of common stock outstanding in the third quarter of 2019 with an additional $9 million used to repurchase approximately 340,000 shares in October 2019. The remaining repurchases under the Program are currently expected to be conducted in open markets, at the Company’s discretion and in compliance with safe harbor provisions. Contingent upon the closing of the SRC acquisition, which the Company anticipates to occur in early 2020, the Board of Directors approved an increase and extension to the Program to $525 million with a target completion date of December 31, 2021. The Company projects to generate a sufficient level of free cash flow from the fourth quarter of 2019 through year-end 2021 to fund the Program.

(Late Wednesday) Press Release - Ring Energy announced that for the three-month period ended September 30, 2019, the Company reported oil and gas revenues of $50,339,105 compared to revenues of $32,687,179 for the quarter ended September 30, 2018. For the nine months ended September 30, 2019, the Company reported oil and gas revenues of $143,471,645, compared to $92,503,453 for the nine months ended September 30, 2018. For the three months ended September 30, 2019, Ring reported net income of $9,888,356, or $0.15 per diluted share, compared to net income of $5,693,628, or $0.09 per fully diluted share for the three months ended September 30, 2018. For the nine months ended September 30, 2019, the Company reported net income of $33,353,053, or $0.50 per diluted share, compared to net income of $16,079,068, or $0.27 per fully diluted share for the nine-month period ended September 30, 2018.

(Late Wednesday) Press Release - Talos Energy announced its financial and operational results for the third quarter of 2019 and provided an operations update. The company reported revenue of $228.9 million and average realized prices of $59.54/Bbl of oil and $2.12/Mcf of natural gas, net of deductions. 93% of operating revenues were derived from oil production and reflect a significant realized price premium, which is net of transport and quality deductions, of $3.09/Bbl above the average WTI benchmark price of $56.45/Bbl during the same period; Net Income of $73.3 million ($1.35 earnings per share – diluted); and Adjusted Net Income of $44.3 million ($0.81 adjusted earnings per share – diluted).

Press Release - Ultra Petroleum announced financial and operating results for the quarter ended September 30, 2019. During the third quarter of 2019, total revenues, exclusive of derivative settlements, were $144.2 million as compared to $203.8 million during the third quarter of 2018.  Derivative settlements during these periods were a gain of $18.5 million and a loss of $10.8 million, respectively. The Company’s production of natural gas and oil was 60.2 Bcfe, a 4% decrease from the second quarter 2019 of 62.5 Bcfe. The decrease in production is the result of the Company reducing capital expenditures over the course of the year driven by lower future commodity prices. During the third quarter of 2019, Ultra’s average realized natural gas price was $2.35 per thousand cubic feet (Mcf), which includes realized gains on commodity hedges. Excluding the realized gains from commodity derivatives, the Company’s average price for natural gas was $2.04 per Mcf, compared to $2.46 per Mcf for the third quarter of 2018. The Company’s average realized oil and condensate price, including realized hedges, was $60.20 per barrel (Bbl) for the quarter ended September 30, 2019 as compared to $58.02 per Bbl for the same period in 2018. Ultra’s reported net income was $11.5 million, or $0.06 per diluted share. Ultra reported adjusted net income of $15.2 million, or $0.08 per diluted share for the quarter ended September 30, 2019 

CANADIAN E&PS 

Press Release - Canadian Natural Resources Limited announced 2019 Third Quarter Results. Net earnings of C$1,027 million were realized in Q3/19, while adjusted net earnings of C$1,229 million were achieved in Q3/19, a C$187 million increase from Q2/19 levels. Cash flows from operating activities were C$2,518 million in Q3/19, a decrease of C$343 million compared to Q2/19 levels. Canadian Natural is committed to returns to shareholders, returning a total of C$616 million to shareholders in Q3/19, C$447 million by way of dividends and C$169 million by way of share purchases. In the first nine months of 2019, the Company has returned a total of C$2,100 million to shareholders, C$1,299 million by way of dividends and C$801 million by way of share purchases.

Press Release - Canadian Natural Resources Limited announced its Board of Directors has declared a quarterly cash dividend on its common shares of C$0.375 (thirty-seven and one half cents) per common share. The dividend will be payable January 1, 2020 to shareholders of record at the close of business on December 11, 2019.

Press Release - Paramount Resources reported Third Quarter 2019 Results. Paramount's sales volumes averaged 81,046 Boe/d in the third quarter of 2019, relatively unchanged from the second quarter. Third quarter liquids sales volumes, however, increased 1,441 Bbl/d to 31,612 Bbl/d (39 percent of total sales) compared to 30,171 Bbl/d (37 percent of total sales) in the second quarter. Cash from operating activities was $48.6 million in the third quarter of 2019 compared to $48.1 million in the second quarter. Third quarter adjusted funds flow was $50.9 million ($0.39 per share) compared to $54.2 million ($0.41 per share) in the second quarter of 2019. Adjusted funds flow was impacted by lower realized prices and incremental third-party processing fees following the sale of the Karr 6-18 Facility.

(Late Wednesday) Press Release - Parex Resources announced its unaudited financial and operating results for the three months ended September 30, 2019. Highlights include: Funds flow provided by operations of $142.7 million ($0.99 (or CAD $1.31) per share basic); Capital expenditures were $48.6 million in the period and $149.9 million year to date. Capital expenditures were funded from FFO. Parex expects to invest approximately $220-230 million in capital projects in 2019; Utilized a portion of free cash flow of $94.1 million to purchase 3,150,000 of the Company's common shares for a total cost of $50.2 million (average price of CAD$21.11/share) pursuant to the Company's normal course issuer bid program; Quarterly production was 53,045 barrels of oil equivalent per day (98% crude oil), representing a production per share increase of 5% over the previous quarter ended June 30, 2019 and an increase of 27% on a per basic share basis over the prior year comparative period; Earned net income of $57.3 million ($0.40 per share basic) compared to net income of $101.5 million ($0.69 per share basic) in Q2 2019; Generated an operating netback of $36.21 per boe and FFO netback of $29.61 per boe from an average Brent price of $62.03 per barrel; Working capital was $279.9 million (CAD $2.58 per share basic) at September 30, 2019 compared to $240.1 million at June 30, 2019 and $143.2 million at September 30, 2018. The Company has an undrawn syndicated bank credit facility of $200.0 million; and Participated in drilling 9 gross (5.30 net) wells in Colombia resulting in 8 oil wells and 1 well under test, for a success rate of 100%.

(Late Wednesday) Press Release - Pengrowth Energy reported its results for the three and nine months ended September 30, 2019. Pengrowth reported third quarter 2019 adjusted funds flow of C$10.7 million decreased 31% year-over-year and included C$8.9 million in restructuring costs related to legal and advisory fees for the strategic review and lender negotiations. Lindbergh SAGD bitumen production increased 7% year-over-year to 17,603 barrels per day compared with 16,408 bbl/d. Compared with the second quarter of 2019, production decreased due to multiple lightning strikes at the end of July that temporarily disabled Lindbergh's electrical grid resulting in reduced production. Cash G&A expenses per barrel of oil equivalent decreased 19% to C$3.24/boe compared with C$3.99/boe in the prior year. Adjusted operating expenses per boe increased 2% to C$10.89/boe compared with C$10.72/boe in the prior year as a result of pump replacements related to the disruption of the electrical grid at the end of July. Debt increased C$3.0 million to C$705.2 million at September 30, 2019 compared with C$702.2 million at June 30, 2019 due to the impact of a weaker Canadian dollar at the end of the period which increased the Canadian dollar equivalent value of foreign denominated debt, partially offset by lower Credit Facility drawings. Pengrowth recorded a C$100.0 million non-cash impairment in the quarter which included C$39.0 million related to the change in future development plans for the Groundbirch natural gas property, and C$61 million related to certain non-core assets.

(Late Wednesday) Press Release - Peyto Exploration & Development announced its operating and financial results for the third quarter of the 2019 fiscal year. A 64% Operating Margin and a 6% Profit Margin in the quarter, delivered a 4% return on capital employed (ROCE) and a 9% return on equity (ROE), on a trailing twelve month basis. Earnings of $6 million were generated in the quarter, while dividends of $10 million were paid to shareholders.

Press Release - Seven Generations reported that cash provided by operating activities totaled $320 million in the third quarter of 2019. Adjusted funds flow was $341 million, and after considering $285 million of capital investments, free cash flow was $56 million in the quarter. The company remains committed to its full-year capital investment plan of $1.25 billion and expects to generate meaningful free cash flow in the fourth quarter of 2019 at strip pricing. 7G completed its previously announced normal course issuer bid (NCIB), repurchasing and cancelling 30.4 million class A common shares, representing approximately eight percent of its common shares outstanding as at October 30, 2018, under that program. The company has received approval from the Toronto Stock Exchange (TSX) for a new NCIB under which the company may purchase up to 23.8 million common shares, or 10 percent of its public float, before November 11, 2020.

(Late Wednesday) Press Release - TORC Oil & Gas announced its financial and operating results for the three and nine months ended September 30, 2019. The company achieved record quarterly production of 28,337 boepd, up from 28,326 boepd in the second quarter of 2019 and 27,160 boepd in the third quarter of 2018; Generated cash flow of $73.8 million relative to $81.1 million in the second quarter of 2019 and $95.1 million in the third quarter of 2018; Generated cash flow per share of $0.34 compared to $0.37 in the second quarter of 2019 and $0.45 in the third quarter of 2018; Drilled 25 (19.0 net) successful wells; During the quarter, TORC declared dividends of $16.5 million of which $5.1 million was satisfied under the share dividend program; During the first nine months of 2019, the Company generated cash flow of $231.0 million, incurred $146.0 million of capital expenditures, and declared cash dividends of $32.1 million for a payout ratio of 77%; and Exited the quarter with net debt of $369.6 million, down from $405.3 at year-end, with $295.4 million drawn on the Company's credit facility. Subsequent to the end of the third quarter, TORC's credit facility was reconfirmed at $500 million as part of the regular semi-annual review process.

(Late Wednesday) Press Release - Tourmaline Oil announced financial and operating results for the third quarter of 2019. Third quarter 2019 earnings were $15.8 million or $0.06/diluted share (YTD Q3 earnings were $258.4 million or $0.95/diluted share) underscoring the inherent profitability of the ongoing EP business, even in an extremely low natural gas and NGL price environment. Third quarter 2019 cash flow was $224.0 million ($0.82/diluted share) with a Q3 2019 AECO natural gas price of $0.92/mcf.  Continued weaker-than-forecast NGL pricing also reduced Q3 2019 cash flow.  Nine-month 2019 cash flow was $869.7 million compared to nine-month EP capital spending of $766.4 million. The quarterly dividend for Q4 2019 will remain at $0.12/common share. 

OILFIELD SERVICES

Press Release - Baker Hughes announced that the Baker Hughes international rig count for October 2019 was 1,130, down 1 from the 1,131 counted in September 2019, and up 113 from the 1,017 counted in October 2018. The international offshore rig count for October 2019 was 242, unchanged from September 2019, and up 35 from the 207 counted in October 2018. The average U.S. rig count for October 2019 was 848, down 30 from the 878 counted in October 2019, and down 214 from the 1,062 counted in October 2018. The average Canadian rig count for October 2019 was 145, up 13 from the 132 counted in September 2019, and down 47 from the 192 counted in October 2018. The worldwide rig count for October 2019 was 2,123, down 18 from the 2,141 counted in September 2019, and down 148 from the 2,271 counted in October 2018.

Barclays downgraded CGG to ‘Equal Weight’ from ‘Overweight.’

Portzamparc downgraded CGG to ‘Accumulate’ from ‘Buy.’

Press Release - McDermott International announced that it has been awarded a sizeable technology contract by Formosa Chemicals Industries Ningbo Limited for the technology license and basic engineering services for a grassroots alpha-methylstyrene (AMS) recovery unit in Ningbo, China. This 10,000 MTA unit will utilize AMS technology jointly licensed by Versalis and McDermott's Lummus Technology to recover specialty chemicals for niche market sale. 

Press Release - Natural Gas Services Group announced financial results for the three and nine months ended September 30, 2019. The Company reported a net loss for the third quarter of 2019 of $12.2 million compared to net income of $236,000 in the same quarter in 2018 and net income of $573,000 in the prior quarter. NGS reported a loss per diluted share for the third quarter of 2019 of $0.93, compared to diluted earnings per share of $0.02 for the third quarter of 2018 and $0.04 for the second quarter of 2019.  Excluding Impairment and Other Non-Cash Charges, adjusted diluted earnings per share for the third quarter of 2019 was $0.10, an increase of $0.08 and $0.06 over the third quarter of 2018 and the second quarter of 2019, respectively.

(Late Wednesday) Press Release - Natural Gas Services Group announced that G. Larry Lawrence, the Company’s Vice President, Chief Financial Officer and Corporate Secretary will retire from the Company effective November 15, 2019. He will also relinquish his position as Principal Accounting Officer. Coincident with the retirement of Larry Lawrence, the NGS Board of Directors has appointed James R. Lawrence as Vice President, Chief Financial Officer and Corporate Secretary of the Company, effective November 16, 2019. Mr. Lawrence will also assume the role as Principal Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 

(Late Wednesday) Press Release - Pason Systems announced its 2019 third quarter results. The Company generated consolidated revenue of $72.2 million in the third quarter of 2019, a decrease of 12% from the same period in 2018. The decrease is attributable to a drop in North American drilling activity, offset by a slight increase in activity in the International business unit, increased market share in the US business unit, and continued increases in product penetration in all major business units, leading to increases in Revenue per EDR day. At September 30, 2019, its working capital position stood at $230 million, including cash and short-term investments of $181 million.

(Late Wednesday) Press Release - Pason Systems announced that the Board of Directors (with Mr. Jim Hill, the significant shareholder through J.D Hill Investments Ltd., abstaining from voting) declared a quarterly dividend of nineteen cents(C$0.19) per share on the company's common shares. The dividend will be paid on December 30, 2019 to shareholders of record at the close of business on December 16, 2019.

Press Release - TETRA Technologies announced consolidated third quarter net loss before discontinued operations of $9.1 million, compared to a net loss before discontinued operations of $8.2 million in the second quarter of 2019 and $12.9 million in the same quarter of last year.  Net loss per share before discontinued operations attributable to TETRA shareholders during the third quarter was $0.06, unchanged from the second quarter of 2019 and from the third quarter of 2018.  Adjusted per share loss before discontinued operations and excluding special items, was $0.02 in the third quarter, unchanged from the second quarter of this year and the third quarter of 2018.

Press Release - Trican Well Service announced that it has entered into a definitive agreement with an investor group led by Green Energy Services Inc and in partnership with Uujo Developments LP. (a Doig River First Nation Company), for the sale of all material assets and business of Fraction Energy Services Ltd., a wholly owned subsidiary of Trican. The agreed purchase price for the Transaction is $17.6 million in cash consideration subject to customary adjustments. Closing of the Transaction is expected to occur on or about Q1-2020 and is subject to certain conditions precedent, including purchaser's bank financing as well as the delivery of customary closing documentation.

MLPS & PIPELINES

(Late Wednesday) Press Release - Cheniere Energy announced that its wholly owned subsidiary, Cheniere Corpus Christi Holdings, LLC, has upsized and priced its previously announced offering of Senior Secured Notes due 2029. The principal amount of the offering has been increased from the initially announced $1.0 billion to $1.5 billion. The CCH 2029 Notes will bear interest at a rate of 3.700% per annum and will be issued at a price equal to 99.925% of par to yield 3.709%. The CCH 2029 Notes will mature on November 15, 2029. The closing of the offering of the CCH 2029 Notes is expected to occur on November 13, 2019. 

(Late Wednesday) Press Release - DCP Midstream reported its financial results for the three and nine months ended September 30, 2019 and announced the signing with its general partner and closing of a transaction to eliminate all incentive distribution rights (IDRs) and general partner economic interests in DCP. Highlights include: Signed and closed a $1.53 billion IDR elimination transaction, creating alignment among all stakeholders and reducing future cost of capital; Net (loss) income attributable to partners of $(178) million and $16 million for the three and nine months ended September 30, 2019, respectively. Distributable cash flow (DCF) of $190 million and $587 million for the three and nine months ended September 30, 2019, resulting in a distribution coverage ratio of 1.23 times and 1.27 times, respectively. Adjusted EBITDA of $300 million and $904 million for the three and nine months ended September 30, 2019, respectively. Increased Logistics and Marketing Adjusted EBITDA by 20% compared to the third quarter of 2018, driven by new volumes from the recently in-service Gulf Coast Express (GCX), Guadalupe, NGL marketing efforts, and Sand Hills volumes. Gathering and Processing results driven by record DJ Basin volumes and continued strong Permian and Eagle Ford performance. Placed the 200 MMcf/d DJ Basin O'Connor 2 plant in service in August. Gulf Coast Express pipeline placed in service in September, adding approximately 2 Bcf/d of gas takeaway from the Delaware basin. Exercised an increased ownership option of 50% in the Cheyenne Connector in October, following FERC approval.

(Late Wednesday) Press Release - Energy Transfer reported financial results for the quarter ended September 30, 2019. ET reported net income attributable to partners for the three months ended September 30, 2019 of $832 million, an increase of $461 million compared to the three months ended September 30, 2018. For the prior period, net income attributable to partners continues to reflect only the amount of net income attributable to the legacy Energy Transfer LP partners prior to the simplification merger transaction of ET and Energy Transfer Operating, L.P. on October 19, 2018. In October 2019, ET announced a quarterly distribution of $0.305 per unit ($1.220 annualized) on ET common units for the quarter ended September 30, 2019. The distribution coverage ratio for the third quarter of 2019 is 1.88x. 

(Late Wednesday) Press Release - Kinder Morgan Tejas Pipeline, LLC (Tejas), a subsidiary of Kinder Morgan closed on its acquisition of certain natural gas pipeline assets owned by Southcross Energy. The total purchase price was approximately $76 million and includes the Corpus Christi Pipeline Network and Bay City Lateral.

Press Release- Noble Midstream Partners LP reported third quarter 2019 financial and operational results. The Partnership’s consolidated results include noncontrolling interests which represent equity ownership interests that are not attributable to the Partnership; however, certain results are shown as “attributable to the Partnership,” which exclude the aforementioned noncontrolling interests. Noble Midstream believes the results “attributable to the Partnership” provide the best representation of the ongoing operations from which the Partnership’s unitholders will benefit. Net Income was $66 million ($41 million to the Partnership) and Adjusted EBITDA¹ came in at $94 million, a 35% and 31% increase over the third quarter of 2018, driven by record gathering and produced water volumes of 319 MBoe/d and 180 MBw/d, respectively. Adjusted EBITDA attributable to the Partnership was $60 million. Distributable cash flow (DCF)¹ increased sequentially to $50 million, above the top end of the guidance range.

Press Release - Targa Resources reported third quarter 2019 net loss attributable to Targa Resources Corp. of $47.3 million compared to a net loss of $23.7 million for the third quarter of 2018. The Company reported distributable cash flow for the third quarter of 2019 of $229.9 million compared to total common dividends to be paid of $211.8 million and total Series A Preferred Stock dividends to be paid of $22.9 million, resulting in dividend coverage of approximately 1.0 times.

MARKET COMMENTARY

Wall street futures rose, tracking similar gains in global stocks, on positive news from the Sino-U.S. trade front. The dollar gained against the Japanese yen, while gold prices eased on investors' appetite for riskier assets. Oil was in the green, buoyed by hopes of rising fuel demand. Earnings reports from Walt Disney, News Corp and Activision Blizzard are scheduled after the closing bell.  

NASDAQ ENERGY TEAM THOUGHT LEADERSHIP


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