Markets

Investors Looking To EIA Report For Today's Catalyst

Wednesday, May 16, 2018

Sector Commentary

The energy sector is posed for a mixed to lower start, weighed down by easing oil futures while major U.S. equity indices were flat as investors digested a surge in bond yields and growing doubts about the U.S.-North Korea summit. Sector news is light today and investors will be looking ahead to the EIA report for the only major catalyst on tap for today.

WTI and Brent crude oil futures were marginally lower in early trading but steadied around 3½-year highs, pressured by last night API report showing a larger build in crude stocks versus expectations of a slight decline and strength in the dollar over Italian debt concerns. Traders will be looking to the official government inventory data later this morning which is expect to show declines in crude, gasoline and distillate stocks.

Natural gas futures were flat to lower in early trading, weighed down by a fresh round of profit-taking as futures hold at three-month highs and a retreat in crude and equity futures.

INTERNATIONAL INTEGRATEDS

Press Release - BP completed the public offering of 3.643% notes, due May 14, 2023, for gross proceeds of US$500 million.

Reuters - Gazprom agreed to management's proposal for a 2017 dividend of 8.04 roubles ($0.1285) per share.

Press Release - Equinor ASA (OSE: EQNR, NYSE: STO), the new name of Statoil ASA, was approved by the annual general meeting, and the new name has now been registered in the Norwegian register of business enterprises. The company's shares will from 16 May 2018 be quoted on Oslo Børs with the new name and the new ticker EQNR.

(Late Tuesday) Press Release - On 15 May 2018, the annual general meeting of shareholders in Statoil approved the annual report and accounts for Statoil ASA for 2017, as proposed by the board of directors. The annual accounts and the annual report for Statoil ASA and the Statoil group for 2017 were approved, and a dividend of USD 0.23 per share will be distributed for the fourth quarter of 2017.

UBS Equities downgraded Total to ‘Neutral’ from ‘Buy’.

U.S. E&PS

(Late Tuesday) Press Release - The board of directors of Anadarko Petroleum declared a quarterly cash dividend on the company's common stock of 25 cents per share, payable June 27, 2018, to stockholders of record at the close of business on June 13, 2018.

Press Release - Apache Midstream, a subsidiary of Apache Corp intends to acquire a 50% stake in SCM Alpine LLC, a company that develops 445,000-bd natural gas liquids header system located in west Texas, the US, from Salt Creek Midstream LLC.

Press Release - California Resources filed the prospectus for public offering of up to 2.85 million shares.

Press Release - Ophir Energy entered into a farm-out agreement to sell 40% interest in EG-24 exploration license located in Equatorial Guinea, to Kosmos Energy.

Press Release - Matador Resources filed the prospectus for the public offering of 7 million common shares.

CANADIAN E&PS

(Late Tuesday) Press Release - Canacol Energy recorded a net income of $8.3 million for the three months ended March 31, 2018 compared to a net loss of $7.9 million for the same period in 2017.

OIL SERVICES

Press Release - Baker Hughes intends to acquire a minority stake in ADNOC Drilling from Abu Dhabi National Oil Company.

(Late Tuesday) Press Release - SEACOR Holdings announced that it closed the previously announced exchange of $117.8 million in aggregate principal amount of the Company’s outstanding 3.00% convertible senior notes due 2028 for a like principal amount of its 3.25% convertible senior notes due 2030.

REFINERS

(Late Tuesday) Press Release - Calumet Specialty Products Partners’ $4.8 million net loss and $75.0 million of adjusted EBITDA for first quarter 2018 included, but were not limited to, the following: a $3.1 million favorable lower of cost or market inventory adjustment; $3.7 million of expense related to enterprise resource planning system costs; $2.1 million of realized hedging losses; and $4.0 million in acquisition costs. Excluding these impacts, Adjusted EBITDA for the first quarter 2018 would have been $81.7 million.

MLPS & PIPELINES

(Late Tuesday) Press Release - Matrix Service Company announced that Keyera Energy Inc., a subsidiary of Keyera Corp. awarded Matrix Service, the engineering, procurement, fabrication and construction of its Wildhorse Terminal. The terminal will include 12 aboveground storage tanks and provide 4.5 million barrels of storage capacity, and will initially be pipeline connected to two existing storage terminals in Cushing, providing Keyera’s customers with access to the majority of crude oil streams flowing in and out of Cushing on several major pipeline networks. An affiliate of Lama Energy Group will own 10% of the project.

MARKET COMMENTARY

Futures for major Wall Street indexes were little changed, as investors focused on the rising bond yields which touched near seven-year highs. The dollar meanwhile rallied as euro lost ground on Italy debt concerns, and gold prices were flat. European shares rose after some solid earnings reports, but political worries weighed. The Asian markets dipped after Pyongyang abruptly called off talks with Seoul.


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.

Latest Markets Videos