Monday, March 05, 2018
Sector Commentary
Energy stocks are expected to open modestly lower as both crude oil and equity futures are showing mild weakness to start the week. Markets have been on edge of late due to President Trump's intention to apply tariffs on steel and aluminum imports.
WTI crude oil futures are slightly lower in early trading on predictions of a major spike in U.S. oil output in the next five years. The International Energy Agency on Monday revised U.S. oil output growth up sharply, saying the country would be producing a total of nearly 17 million barrels per day in 2023, up from 13.2 million last year, eating into OPEC's market share and moving closer to self-sufficiency. "Oil production growth from the United States, Brazil, Canada and Norway can keep the world well supplied, more than meeting global oil demand growth through 2020," the IEA said in its mid-term market report.
Natural gas futures were showing some strength in early trading as colder temperatures returned to key regions.
U.S. INTEGRATEDS
Reuters - ExxonMobil said it would take about eight weeks to restore production at the Papua New Guinea liquified natural gas project (LNG), following a powerful earthquake that hit the country's energy-rich interior a week ago.
INTERNATIONAL INTEGRATEDS
Press Release - McDermott International to build on its strong collaborative relationship with BP on the Cassia C Compression Platform in Trinidad and Tobago.
(Saturday) Reuters - Gazprom started a procedure to terminate contracts with Ukrainian energy firm Naftogaz in an arbitration tribunal in Stockholm.
(Late Friday) Press Release - Petróleo Brasileiro, further to the Material Fact published on 09/22/2017, announced the beginning of the non-binding phase related to the full sale of its exploration, development and production rights in five sets of onshore fields (Fazenda Belém, Macau, Sergipe Terra 1, Sergipe Terra 2 and Sergipe Terra 3), located in Ceará, Rio Grande do Norte and Sergipe states.
(Sunday) Press Release - Repsol posted net income of 2.121 billion euros in 2017, 22% more than the 1.736 billion it earned in 2016. In a low price scenario for raw materials, the company, supported by the strength of its business and its efficiency plans, achieved the highest net income in six years.
(Saturday) Press Release - Royal Dutch Shell completed acquisition of First Utility Limited, an independent energy and broadband provider. First Utility will operate as a stand alone entity and wholly owned subsidiary of Shell within its New energies division.
Press Release - Shell and Eni and former and current executives of the two oil giants will stand trial Monday in Milan, Italy, in connection with a $1.1 billion bribery scandal linked to bids for one of Nigeria's most lucrative oil blocks.
CAnadian INTEGRATEDS
No significant news.
U.S. E&PS
Press Release - Anadarko Petroleum announced it received official approval from the Government of Mozambique for the Golfinho/Atum Field Development Plan. The Development Plan outlines the integrated onshore project from the reservoir to the LNG market and is a culmination of the substantial progress made to date on the technical and commercial aspects of the Anadarko-operated Mozambique LNG development.
Press Release - Callon Petroleum announced that it has declared a cash dividend of $1.25 per share, on its 10.0% Series A Cumulative Preferred Stock. The dividend will be paid on March 30, 2018 to stockholders of record as of March 15, 2018.
(Saturday) Press Release - Penn Virginia completed the acquisition of additional working interest in oil and gas assets located in Texas, the US, from Hunt Oil Co, an oil and gas company, for a cash consideration of US$86 million.
CANADIAN E&PS
Press Release - Canacol Energy is pleased to report its conventional natural gas reserves and light, medium and heavy crude oil and deemed volumes for the fiscal year end December 31, 2017. The Corporation’s conventional natural gas reserves are located in the Lower Magdalena Valley basin, Colombia. Canacol’s light, medium and heavy crude oil reserves are located in the Llanos, Middle Magdalena Valley, and Caguan - Putumayo basins of Colombia.
OIL SERVICES
Press Release - Ensign Energy Services reported revenue for the year ended December 31, 2017 of $1,000.7 million, an increase of 16 percent from 2016 revenue of $859.7 million. Revenue, net of third party, for the year ended December 31, 2017 was $873.9 million, an increase of 16 percent from Revenue, net of third party, for the year ended December 31, 2016 of $755.9 million. Adjusted EBITDA for 2017, totaled $201.8 million, 9 percent higher than Adjusted EBITDA of $185.2 million for year 2016. The Company declared a first quarter cash dividend on common shares of $0.12 per common share payable April 5, 2018. The Company declared total dividends of $0.48 per common share in 2017.
Press Release - McDermott International to build on its strong collaborative relationship with BP on the Cassia C Compression Platform in Trinidad and Tobago.
Press Release - Oceaneering International announced that one of its wholly owned subsidiaries has acquired Ecosse Subsea Limited, for approximately 50 million pounds sterling.
Press Release - Patterson-UTI Energy reported that for the month of February 2018, the Company had an average of 170 drilling rigs operating.
MARKET COMMENTARY
Wall Street was set for a weak open amidst fears of a global trade war and the prospect of political instability in Europe after inconclusive elections in Italy. Gains in energy and materials stocks supported the broader European market as oil prices rose. Asian shares closed lower. The dollar index was inched up while gold prices rose on its safe-haven appeal. ISM’s non-manufacturing PMI and Markit’s services PMI are on the economic tap.
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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