Thursday, December 27, 2018
Sector Commentary
Energy stocks are set to drop at the open and give back some of yesterday’s record-breaking gains as lower oil futures and weaker equity indices are weighing. The Dow gained more than 1K points for the first time in history yesterday as volatility and momentum-based trading reversed Monday’s record losses for a Christmas Eve session.
Oil prices fell over 1% for both WTI and Brent crude grades as worries over a glut in crude supply and concerns over a faltering global economy pressured prices even as a stock market rally offered support. Oil prices reached multi-year highs in early October but are now approaching their lowest levels for 18 months. Both crude oil benchmarks have lost more than a third of their value since the beginning of October and are heading for losses of more than 20 percent in 2018. "Fear of a bear market remains in place," said Johannes Gross at Vienna-based consultancy JBC Energy.
Natural gas futures are higher by 4 cents amid slightly below normal temperature forecasts.
U.S. E&PS
Press Release - Hess announced that the Company’s 8.00% Series A Mandatory Convertible Preferred Stock and related depositary shares, each representing 1/20th interest in a share of Preferred Stock, are expected to automatically convert into shares of the Company’s common stock on January 31, 2019.
Press Release - Ring Energy announced that it has closed its transaction with Tessara Petroleum Resources, a wholly owned subsidiary of The Carlyle Group L.P., for assets located in Andrews County, Texas. Ring issued 2,623,948 million shares of its common stock valued at $5.80 per share. The transaction has an effective date of November 1, 2018.
(Late Wednesday) Press Release - Ultra Petroleum closed on the previously announced debt exchange agreement to reduce long-term debt by approximately $235 million on December 21, 2018. Pro forma for the exchange, as of September 30, 2018, the Company’s Consolidated Net Leverage Ratio is reduced to 3.5x from 3.9x. In addition to the reduction in debt, the New Notes will extend the maturity of the exchanged 2022 Notes to July 2024.
OILFIELD SERVICES
(Late Wednesday) Reuters - The U.S. Defense Department said it had awarded contracts for submarine maintenance and modernization to General Dynamics Corp for $1.1 billion, to Huntington Ingalls Industries for $874 million and to Oceaneering International for $828 million.
(Late Wednesday) Press Release - TETRA Technologies .announced that its board of directors has appointed TETRA President and Chief Operating Officer, Brady M. Murphy, as a member of the board of directors, effective December 19, 2018.
MARKET COMMENTARY
U.S. stock futures slumped by more than 1% on Thursday, a day after a breathtaking rally drove gains of more than 1,000 points on the Dow Industrials for the first time ever and helped other main indexes notch their largest daily percentage gains in nearly a decade.
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 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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