Oil Near Flatline Amid Concerns Over U.S. Debt Ceiling
SECTOR COMMENTARY:
The energy sector is set for a mixed start, supported by light gains in the major market futures, but pressured by modest losses in the crude complex. U.S stock futures are higher as traders monitor the negotiations over the U.S. debt ceiling with government officials scrambling to avoid a default. In deal news, Chevron Corporation announced today that it has entered into a definitive agreement with PDC Energy, Inc. to acquire all of the outstanding shares of PDC in an all-stock transaction valued at $6.3 billion, or $72 per share. Based on Chevron’s closing price on May 19, 2023 and under the terms of the agreement, PDC shareholders will receive 0.4638 shares of Chevron for each PDC share. The total enterprise value, including debt, of the transaction is $7.6 billion.
WTI and Brent crude oil are near the flatline as concerns over U.S debt ceiling talks outweigh supply woes and optimism over demand ahead of the driving season. U.S debt ceiling negotiations are expected to continue today, with the prospect of a default in the horizon as the June 1st deadline approaches. Oil is being supported by hopes demand will rise and supply will remain tight as mentioned in the IEA’s warning about a looming shortage. Over the weekend, the Group of Seven nations pledged at its annual leaders’ meeting to enhance efforts to counter Russia’s evasion of the price caps on its oil and fuel exports.
Natural gas futures are down as preliminary estimates for the EIA storage report show a build of +100 to +110 Bcf vs 5-yr avg of +96 Bcf.
BY SECTOR:
Chevron announced that it has entered into a definitive agreement with PDC Energyto acquire all of the outstanding shares of PDC in an all-stock transaction valued at $6.3 billion, or $72 per share. Based on Chevron’s closing price on May 19, 2023 and under the terms of the agreement, PDC shareholders will receive 0.4638 shares of Chevron for each PDC share. The total enterprise value, including debt, of the transaction is $7.6 billion.
Equinor announced on 8 February 2023 an ordinary dividend per share of USD 0.30 and an extraordinary dividend per share of USD 0.60 for fourth quarter 2022. The NOK dividend per share is based on average USDNOK fixing rate from Norges Bank in the period plus/minus three business days from record date 12 May 2023, in total seven business days.
TotalEnergies has received environmental permits from Spanish authorities for solar projects with a production capacity of 3 gigawatts (GW) capacity, the French energy company said on Monday.
No significant news.
No significant news.
No significant news.
Compass Minerals announced the signing of a binding, multiyear supply agreement to provide Ford Motor.
No significant news.
No significant news.
Nordic American Tankers announced the net profit for 1Q 2023 landed at $46.9 million or an earnings per share (EPS) of $0.22. The previous quarter saw a net profit of $36 million and an EPS of $0.17. Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) for 1Q 2023 came in with a positive $67.7 million, compared to an adjusted EBITDA of $51.1 million in 4Q 2022. The board has decided that the dividend after the first quarter of 2023 will be 15 cents ($0.15) per share. The Dividend will be payable on July 6, 2023 to shareholders on record as of June 15, 2023.
U.S. stock index futures were nearly flat, as debt ceiling talks are set to resume after a brief pause late last week, while shares of Micron fell following China's ban on its chips. European stocks were broadly flat, while Japan's Nikkei ended higher as investors continued to scoop up discounted domestic stocks. Oil prices were steady despite support from lower supplies from Canada and OPEC+ producers. Gold prices inched higher on a softer dollar, while some traders remained on the sidelines.
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