Friday, December 14, 2018
Energy stocks are markedly weaker in the premarket due to steep declines in broader equity futures and weaker oil and natural gas prices. Sector news includes an announced $2 billion share repurchase by Pioneer Natural Resources, a slew of E&P ratings changes from Tudor Pickering Holt, a 2019 capital program and production outlook from Suncor Energy, and an Alerian MLP Index rebalancing at today’s close.
Oil prices are lower amid weak macroeconomic data out of China and as investors still weigh this week’s smaller than expected crude inventory draw down.
Natural gas futures fell below $4 for the first time since early November amid moderating weather and in-line inventory drawdowns for this week and expected next week.
(Late Thursday) Press Release - Petrobras informed that it received from its controlling shareholder a letter with the appointment of the economist Roberto da Cunha Castello Branco to serve as President of the company and member of Petrobras Board of Directors.
Suncor Energy released its 2019 corporate guidance today which includes a capital program of between $4.9 and $5.6 billion and average upstream production of 780,000 to 820,000 barrels of oil equivalent per day (boe/d). The midpoints of these ranges represent a flat capital spend compared to 2018 and a year over year production increase of approximately 10%, including estimated mandatory production curtailments, from approximately 730,000 boe/d in 2018.
(Late Thursday) Press Release - The board of directors of Apache has declared the regular cash dividend on the company's common shares. The dividend on common shares is payable Feb. 22, 2019, to stockholders of record on Jan. 22, 2019, at a rate of 25 cents per share on the corporation’s common stock.
Suntrust Robinson initiated Bonanza Creek Energy with a ‘Hold’ rating.
Press Release - Pioneer Natural Resources announced that its Board of Directors authorized a common stock repurchase program that will allow the Company to repurchase up to $2 billion of its common stock. Based upon Pioneer’s current share price, this represents approximately 8% of the Company’s market capitalization.
(Late Thursday) Press Release - Birchcliff Energy is pleased to announce that Ms. Stacey McDonald has been appointed as a director of Birchcliff effective December 14, 2018.
(Late Thursday) Press Release - CES Energy Solutions is pleased to announce today that it will pay a cash dividend of $0.005 per common share on January 15, 2019 to the shareholders of record at the close of business on December 31, 2018.
BMO upgraded TechnipFMC to ‘Outperform’ from ‘Market Perform’.
MLPS & PIPELINES
(Late Thursday) Press Release - Alerian announced that Enbridge Energy Partners is expected to be removed from the Alerian Midstream Energy Index (AMNA), Alerian US Midstream Energy Index (AMUS), Alerian MLP Index (AMZ), Alerian MLP Equal Weight Index (AMZE), and Alerian MLP Infrastructure Index (AMZI) in a special rebalancing.
U.S. stock futures fell, tracking global equities, as weak economic data from China and Europe left investors worried about the extent of impact of the unresolved Sino - U.S. trade dispute. Gold prices slipped as the dollar edged up on an expected interest rate hike by the Fed next week.
NASDAQ ENERGY TEAM THOUGHT LEADERSHIP
- Bloomberg TV Commodities Edge – Q2’18 Earnings Themes
- Bloomberg TV DayBreak Americas - (Discussion with Kevin Holt, CIO of Invesco, begins at 0:56:58 – 1:05:22)
- TD Ameritrade Network– Trade Tariff Effects on Market & Interest Rates
Nasdaq Advisory Services Energy Team Nasdaq's Advisory Services 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.