Friday, March 9, 2018
Sector Commentary
Energy stocks are poised for a markedly higher opening as broader index futures continued yesterday's gains after the government reported better-than-expected job growth for the previous month.
Oil prices are reversing two days of heavy losses even as the greenback jumped following a much stronger than expected jobs report and on hopes of a breakthrough in the nuclear standoff with North Korea. North Korea's leader pledged to refrain from further nuclear or missile tests, lifting Asian stock markets and pulling crude oil futures along with them.
Natural gas slipped on Friday, extending yesterday's weakness, on forecasts for less cold weather and lower heating demand over the next two weeks than previously expected.
INTERNATIONAL INTEGRATEDS
(Late Thursday) Reuters - Petróleo Brasileiro said it would start the binding phase in the process to sell 100 percent of subsidiary Petrobras Oil & Gas B.V.,
(Late Thursday) Reuters - Royal Dutch Shell is selling out of the ageing Draugen field in Norway and is also offering small stakes in a number of other fields.
(Late Thursday) Reuters - Royal Dutch Shell reported process unit upset at Deer Park, Texas facility. The company operates a 325,700 barrel-per-day joint-venture refinery at deer park facility.
(Late Thursday) Press Release - Royal Dutch Shell is focused on increasing its U.S. shale operation's oil production while slowing investment in lower-margin natural gas. The company aims to boost its overall shale production by 200,000 barrels of oil equivalent per day to 500,000 boe/d between 2017 and 2020, mostly in the United States with some production in Argentina.
Press Release - Total through its subsidiary Total Austral SA, completed the acquisition of a 4.77% interest in Aguada Pichana Este Block located in Neuquen Province, Argentina, from Wintershall Holding GmbH.
U.S. E&PS
(Late Thursday) Press Release - Approach Resources reported net income for fourth quarter 2017 of $45.8 million, or $0.51 per diluted share, on revenues of $28.4 million. Net income for fourth quarter 2017 included an income tax benefit was $51.9 million related to the reduction in our deferred tax liabilities resulting from the Tax Cuts and Jobs Act and an increase in the fair value of our commodity derivatives of $1.4 million. Excluding these items, adjusted net loss (non-GAAP) for fourth quarter 2017 was $6.1 million, or $0.07 per diluted share.
Reuters - Shares of oil and gas producer Chesapeake Energy up 2.7 pct premarket on reports of asset sale talks with LNG producer Tellurian Co.
JPMorgan upgraded Williams Companies to 'Overweight' from 'Neutral'.
CANADIAN E&PS
GMP Securities upgraded Baytex Energy to 'Buy' from 'Hold'.
Press Release - Tecpetrol Libertador BV, a subsidiary of Tecpetrol International SA, and Sertecpet E&P SL, a subsidiary of Sertecpet SA, completed the acquisition of a 25% stake in Servicios Libertador SL, the holding company of Pardaliservices SA, from CanacolEnergy , for a purchase consideration of US$36.4 million.
Raymond James upgraded Petrus Resources to 'Outperform' from 'Market Perform'.
OIL SERVICES
Press Release - CGG board following the March 8 meeting, announced: The cooptation of Mrs Colette Lewiner to replace Mrs Hilde MYRBERG, resigning from her board position, for the remainder of her term, i.e. until the general meeting called to approve the financial statements for the fiscal year ending December 31, 2018; the cooptation of Mr. Mario Ruscev to replace M. Jean-Georges MALCOR, resigning from his board position, for the remainder of his term, i.e. until the general meeting called to approve the financial statements for the fiscal year ending December 31, 2018. This resignation has no impact on Jean-Georges Malcor CEO position; and the cooptation of Mr. Philippe Salle to replace M. Loren CARROLL, resigning from his board position, for the remainder of his term, i.e. until the general meeting called to approve the financial statements for the fiscal year ending December 31, 2020.
Press Release - CGG reported revenue at $401m, up by 22% year-on-year.
Press Release - NCS Multistage Holdings reported that revenues were $50.2 million for the quarter, an increase of $14.7 million or 42% as compared to the fourth quarter of 2016. Its loss per diluted share was $(0.08); adjusted earnings per diluted share of $0.01.
DRILLERS
Susquehanna Financial upgraded Helmerich and Payne to 'Positive' from 'Neutral'.
REFINERs
(Late Thursday) Reuters - Phillips 66 began a planned overhaul of a reformer and three hydrotreaters at its 247,000-barrel-per-day Alliance, Louisiana, refinery on Thursday.
MLPs & PipelinES
Press Release - Western Gas Partners completed the public offering of 5.3% senior unsecured notes, due March 1, 2048, for gross proceeds of US$700 million.
JPMorgan upgraded Williams Partners LP to 'Overweight' from 'Neutral'.
MARKET COMMENTARY
U.S. stock index futures and European shares were little changed as investors cautiously await the key U.S. non-farm payrolls report, scheduled on the economic tap. A potential breakthrough in nuclear tensions over the Korean peninsula nudged Asian stocks higher and the dollar strengthened versus the Japanese yen. Oil rose but gains were capped by soaring U.S. crude output. Gold prices dipped.
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 . 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
