Energy stocks are set to open the final trading session of the week mixed to higher, despite weakness in the underlying commodities while U.S. stock index futures reversed yesterday’s losses and look to close out the week on a positive note as investors shrug off another surge in COVID-19 cases, mixed economic data, and weak corporate earnings.
Oil prices are off about half a percent in early trading, weighed down by uncertainty over fuel demand and easing supply curbs. “The problem with the market right now is prices have got to a level where we’re concerned U.S. supply is going to come back,” said Vivek Dhar, commodities analyst at Commonwealth Bank of Australia. Traders will be looking ahead to the weekly rig count data released later this afternoon.
Natural gas futures are lower by ~1%, pressured by weakness in the crude oil markets and forecasts for less hot weather over the next two weeks than previously expected. That decline comes even though pipeline exports to Mexico are on track to hit a record monthly high.
Press Release - Scientists from ExxonMobil, the Georgia Institute of Technology and Imperial College of London have published joint research on potential breakthroughs in a new membrane technology that could reduce emissions and energy intensity associated with refining crude oil. Laboratory tests indicate the patent-pending membrane could be used to replace some heat-intensive distillation at refineries in the years ahead.
Press Release - Northern Oil and Gas announced that it is terminating the previously announced consent solicitation related to the Company’s 8.50% Senior Secured Second Lien Notes due 2023 described in the Consent Solicitation Statement, dated as of July 2, 2020.
(Late Thursday) Reuters - Midstream marketing firm MidCon Gathering LLC is suing Occidental Petroleum, alleging the shale giant did not pay for crude deliveries, the latest dispute to arise from production shut-ins prompted by a crash in oil prices this year.
(Late Thursday) Press Release - CES Energy Solutions is pleased to announce that the Toronto Stock Exchange has accepted CES's notice of its intention to implement a normal course issuer bid. The NCIB effectively renews the existing NCIB which is scheduled to terminate on July 16, 2020.
Press Release - The Board of Directors of Valero Energy has declared a regular quarterly cash dividend on common stock of $0.98 per share. The dividend is payable on September 2, 2020, to holders of record at the close of business on August 4, 2020.
MLPS & PIPELINES
(Late Thursday) Press Release - Martin Midstream Partners announced that it and its subsidiary, Martin Midstream Finance, have extended (1) the early participation date with respect to its previously announced exchange offer and cash tender offer to exchange or purchase, as applicable, the Issuers’ outstanding 7.25% senior unsecured notes due 2021 from 5:00 p.m., New York City time, on July 22, 2020, to 5:00 p.m., New York City time, on July 23, 2020, (2) the rights offering funding date with respect to the previously announced rights offering for certain holders of Existing Notes that participate in the Exchange Offer to acquire the Issuers’ 10.00% senior secured 1.5 lien notes due 2024 from 5:00 p.m., New York City time, on July 28, 2020, to 5:00 p.m., New York City time, on July 29, 2020, (3) the expiration time with respect to the Exchange Offer and Cash Tender Offer, as applicable, from 5:00 p.m., New York City time, on August 6, 2020, to 5:00 p.m., New York City time, on August 7, 2020 and (4) the expected settlement date with respect to the Exchange Offer and Cash Tender Offer, as applicable, from August 11, 2020, to August 12, 2020, in each case, unless extended or earlier terminated by the Issuers.
(Late Thursday) Press Release - Targa Resources announced its quarterly dividend on common shares and its quarterly dividend on Series A preferred shares with respect to the second quarter of 2020. Targa announced that its board of directors has declared a quarterly cash dividend of $0.10 per common share, or $0.40 per common share on an annualized basis, for the second quarter of 2020. This cash dividend will be paid August 17, 2020 on all outstanding common shares to holders of record as of the close of business on July 31, 2020. Targa announced that its board of directors has declared a quarterly cash dividend of $23.75 per Series A preferred share for the second quarter of 2020. This cash dividend will be paid August 14, 2020 on all outstanding Series A preferred shares to holders of record as of the close of business on July 31, 2020.
U.S. stock index futures rose as investors pinned hopes on more official stimulus by government as coronavirus cases continued to surge. European shares were little changed, with stocks trading in a narrow range as focus turned to Brussels where European Union leaders met to try to hammer through a 750-billion-euro post-pandemic recovery fund. Japan's Nikkei slid on concerns about rising virus infections. The dollar fell, while gold prices gained to hold steady above the $1,800 level. Oil slipped amid growing uncertainty about the global recovery in fuel demand as coronavirus cases surged in several countries, while major producers were set to ease output curbs. U.S. housing starts and building permits numbers for June are scheduled for release along with the University of Michigan's consumer sentiment index report.
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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