Oil pipelines against a sunset sky
Oil

Oil Adds on to Last Week’s Declines on Continued Concerns Over Demand Growth

SECTOR COMMENTARY:

The energy sector is set for a slightly higher start, supported by modest strength in the major equity futures. The broader markets are set to kick-off the week higher as investors wait for inflation data which is expected later this week. 

WTI and Brent crude oil futures are edging lower, adding on to last week’s declines on continued concerns over demand growth. Market participants are keeping an eye on the latest developments in the Middle East as last night, White House national security adviser Jake Sullivan told CNN that negotiators for the United States, Egypt, Qatar and Israel had agreed on the basic contours of a hostage deal during talks in Paris but are still in negotiations. Houthis over the weekend targeted a U.S. owned tanker, the Torm Thor. Goldman Sachs raised its summer 2024 Brent peak forecast to $87 from $85 as Red Sea disruptions spur modestly larger OECD commercial draws. They expect 2024 global demand growth of +1.5M bpd with a decline in China being offset by US/India increased and believe OPEC+ will extend voluntary cuts through 2Q24.

Natural gas futures are higher by 6.6% as forecasts point to the possibility of cold weather returning the second week of March. Hedge funds and other money managers sold the equivalent of 399 Bcf in the two major futures and options contracts linked to prices at Henry Hub in Louisiana over the seven days ending on Feb. 20. Fund managers have been net sellers in each of the most recent five weeks, selling 2,085 Bcf since Jan. 16, according to position reports filed with the U.S. Commodity Futures Trading Commission.

BY SECTOR:

US INTEGRATEDS

No significant news. 

INTERNATIONAL INTEGRATEDS 

An additional 15 trillion standard cubic feet of gas have been proven at Aramco'sJafurah field, Energy Minister Prince Abdulaziz bin Salman said. 

BP announced the commencement of a cash tender offer by its wholly-owned subsidiary BP Capital Markets p.l.c. to purchase for cash any validly tendered (and not validly withdrawn) and accepted Notes up to an aggregate principal amount of $1,000,000,000 of Notes issued by the Offeror. The Tender Offer is being made upon the terms and subject to the conditions set forth in the offer to purchase dated February 26, 2024.

According to ReutersPetrobras said in a filing that it has decided to exercise tag-along right to sell stake in Ueg Araucária for 67.3 million reais.

CANADIAN INTEGRATEDS

No significant news.

U.S. E&PS

CNX Resources announced the closing of its private placement of $400 million aggregate principal amount of its 7.250% senior notes due 2032. The Notes were offered under an indenture, dated February 23, 2024, among CNX, the subsidiary guarantors party thereto and UMB Bank, N.A., as trustee. The Notes are guaranteed by all of CNX's wholly-owned domestic restricted subsidiaries that guarantee its revolving credit facility.

Kosmos Energy announced its financial results for the fourth quarter of 2023. For the quarter, the Company generated a net income of $22 million, or $0.04 per diluted share. When adjusted for certain items that impact the comparability of results, the Company generated an adjusted net income of $149 million, or $0.31 per diluted share for the fourth quarter of 2023. 4Q revenues were $508 million, or $75.64 per boe (excluding the impact of derivative cash settlements).

Mizuho upgraded Southwestern Energy to Neutral from Underperform.

CANADIAN E&PS

No significant news.

OILFIELD SERVICES

As per SEC filing, IDEX filed for a debt shelf. The size was not disclosed.

KLX Energy Services Holdings announced preliminary financial results for the three months ended December 31, 2023: Estimated Revenue range of $193 million to $195 million; Estimated Net Loss range of $(10) million to $(8) million; Estimated Adjusted EBITDA range of $22 million to $25 million.

SECURE Energy Services reported its financial results for the three months ended December 31, 2023. The Company generated revenue (excluding oil purchase and resale) of $451 million, an increase of 12% from 2022; Achieved Adjusted EBITDA of $162 million or $0.56 per basic share, an increase of 17% on a per basic share basis from 2022; Recorded net income of $59 million or $0.20 per share, a 100% increase from $0.10 per basic share in 2022.

SECURE Energy Services announced that Rene Amirault will be retiring from his role as Chief Executive Officer as of May 1, 2024. Mr. Amirault intends to remain on SECURE's Board of Directors as Vice Chair. Allen Gransch, President, will succeed Mr. Amirault as President and Chief Executive Officer, and will be nominated for election to the Board of Directors at SECURE's Annual General Meeting of Shareholders on April 26, 2024. SECURE also announced that Brad Munro will not stand for re-election at the 2024 Annual General Meeting of Shareholders.

DRILLERS 

No significant news. 

REFINERS

No significant news. 

MLPS & PIPELINES 

Excelerate Energy announced that its Board of Directors declared a quarterly cash dividend, with respect to the quarter ended December 31, 2023, of $0.025 per share of Class A common stock. The dividend is payable on March 28, 2024, to Class A common stockholders of record as of the close of business on March 13, 2024. Excelerate Energy Limited Partnership, the Company’s operating subsidiary, will make a corresponding distribution of $0.025 per interest to holders of its Class B limited partnership interests on the same date of the dividend payment.

MARKET COMMENTARY

Wall Street futures were muted as investors awaited key economic data releases this week for clues on Federal Reserve's monetary policy path. Commodity-linked stocks dragged European markets into the red. Japan's Nikkei finished at a record high for the second consecutive session, helped by gains in pharmaceuticals. The dollar weakened against a basket of major currencies. Oil and gold prices slipped.


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  Rich Pontillo.


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Nasdaq Energy News

Nasdaq Advisory Services Energy Team is part of Nasdaq's Advisory Services. 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.

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