Energy stocks are poised for sharp declines at the open, pressured by significant weakness in the underlying commodities and U.S. stock index futures which tumbled in overnight trading amid political tensions, rising COVID-19 cases in Europe and fears of another lockdown, and renewed uncertainty of a second stimulus bill being passed.
Oil prices are off this morning, trading in line with U.S. stock futures while reports that Libya is set to raise production added to the declines. The WSJ reports some Libya production has commenced and could reach 400K bpd by Thursday. Meanwhile, tropical storm Beta with sustained winds of 50 mph is expected to move along the coast of Texas and Louisiana over the next couple of days, approaching the coast former today. It is not expected to intensify into a hurricane but has shut-in of some Gulf of Mexico production and port activity.
Natural gas futures are also lower, weighed down by weaker oil prices and as LNG feedgas flows yesterday were estimated to have declined by over (1.5) Bcf from around 8 Bcf on Saturday as tropical storm Beta approached the Gulf Coast.
Press Release - ExxonMobil and Global Thermostat have expanded their joint development agreement following 12 months of technical evaluation to determine the feasibility and potential scalability of Global Thermostat’s technology that captures carbon dioxide (CO2) directly from the air.
(Late Friday) Reuters - Total SA plans to restart the gasoline-producing fluidic catalytic cracker (FCC) at its 225,500 barrel-per-day (bpd) Port Arthur, Texas, refinery late next week.
Press Release - Northern Oil and Gas announced the completion of its reverse stock split and other business updates. Northern completed the previously announced 1-for-10 reverse split of its common stock. This process has been designed to reduce costs for ownership, improve Northern’s ability to participate in broad market indices, and to better represent its financial health to prospective and existing investors. The reverse split became effective at 11:59pm on September 18, 2020 and Northern’s common stock will start trading on a split-adjusted basis today. With capital becoming increasingly scarce across the E&P industry, operators and non-operators alike are turning to external parties to solve their non-operated working interest budget needs. Given this environment, Northern has a superior opportunity set to deploy capital in high return prospective projects. The pipeline of visible investment opportunities currently stands in the hundreds of millions of dollars, both in the Williston Basin as well as the Permian Basin, where Northern announced its initial acquisition on September 10th. In addition, Northern continues to expect to end 2020 with approximately 30 net wells in process.
(Late Friday) Press Release - Canacol Energy is pleased to announce the details of its quarterly dividend as well as to provide a brief corporate update. The Corporation has declared a dividend of CAD$.052 per share, payable on October 15, 2020, to shareholders of record at the close of business on September 30, 2020. The ex-dividend date for all shareholders is September 29, 2020.
Press Release - Obsidian Energy announced that we have formally commenced our offer to purchase all of the issued and outstanding common shares of Bonterra Energy Corp. for consideration consisting of two common shares of Obsidian Energy for each Bonterra Share tendered.
(Late Friday) Press Release - Black Hills announced the appointment of Barry M. Granger and Scott M. Prochazka to its board of directors, effective Oct. 1, 2020. In anticipation of future retirements, the board also temporarily increased the size of the board from 10 to 12 directors.
SEC Filing - On September 17, 2020, Fluor entered into Amendment No. 4 with the lenders under its (i) $1,800,000,000 Amended and Restated Revolving Loan and Letter of Credit Facility Agreement dated as of February 25, 2016 and (ii) $1,700,000,000 Amended and Restated Revolving Loan and Letter of Credit Facility Agreement dated as of February 25, 2016.
(Late Friday) Press Release - Smart Sand announced that is has completed the acquisition of the Oil and Gas Proppants Segment of Eagle Materials Inc. The Segment’s primary assets include frac sand mines and related processing facilities in Utica, Illinois and New Auburn, Wisconsin, with approximately 3.5 million tons of annual processing capacity, of which approximately 1.6 million tons has access to the BNSF rail line.
MLPS & PIPELINES
Scotiabank downgraded ONEOK to ‘Sector Perform’ from ‘Sector Outperform’.
Press Release - TC Energy announced Russ Girling’s retirement as President and Chief Executive Officer and from its Board of Directors effective December 31, 2020. François Poirier, currently Chief Operating Officer, President, Power & Storage and Mexico, will succeed Mr. Girling as President and Chief Executive Officer and will join the Board January 1, 2021. Mr. Girling will assist Mr. Poirier with the transition through February 28.
U.S. stock index futures fell along with global equities as rising COVID-19 infection rates stoked worries about the economic recovery. In currency markets, the dollar fell against the Japanese yen on safe-haven bets. The greenback in the meanwhile traded higher against a basket of peer currencies. Gold prices slipped and oil prices fell, weakened by a possible return of Libyan production.
NASDAQ ENERGY TEAM THOUGHT LEADERSHIP
- 1/8/20 – CNBC’s Squawk Alley: Oil market reaction to US-Iran tensions
- 1/8/20 – Bloomberg Day Break – Steady escalation of US-Iran tensions
- 12/5/19 – Bloomberg Balance of Power – OPEC's Limited Efficacy
- 9/17/19 - Oil's New Risk Premium Discussion on CNBC TV
- 9/16/19 - Discussion on Bloomberg TV about Impact of Abqaiq Attack
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.
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