Pump-jack mining crude oil with the sunset
Oil

Oil Prices Slide Despite Strong Demand Heading Into Summer Travel Season

Oil prices slid from earlier highs and are trading in slight negative territory, despite strong demand heading into the Summer travel season. Traders today are taking into account the results of Iran's presidential election and possible implications for nuclear deal talks. 

SECTOR COMMENTARY:

Energy stocks are poised for a mixed to higher start, weighed down by moderate weakness in the underlying commodities while the broader index futures jumped as markets look to rebound from last week’s steep declines. 

Oil prices slid from earlier highs and are trading in slight negative territory, despite strong demand heading into the Summer travel season. Traders today are taking into account the results of Iran's presidential election and possible implications for nuclear deal talks. 

Natural gas futures are down 1.2% to $3.20, extending upon last week's 2.5% decline. Weather forecasts were roughly unchanged over the weekend. Both 6-10 and 8-14 day forecasts projects above-seasonal temperatures west of the plains and northeast with seasonal-below seasonal temps in the Midwest and southeast.

US INTEGRATEDS

According to ReutersChevron said it was returning offshore workers to its Gulf of Mexico production platforms who had been evacuated ahead of Tropical Storm Claudette.

According to ReutersExxon Mobil and the United Steelworkers union hope to break an increasingly bitter dispute over a Texas refinery contract next week by taking a different approach of sending one negotiator each to contract talks instead of a whole team, company and union officials said on Friday.

INTERNATIONAL INTEGRATEDS

Eni through Vår Energi, jointly owned by Eni (69,85%) and by HitecVision (30,15%), announced a new significant oil and gas discovery in production license PL027 in the Southern North Sea, with the dual branch exploration wildcat Prince 25/8-20 S, King 25/8-20 B and the appraisal side-track25/8-20 C in the King Paleogene prospect. Vår Energi (operator) holds a 90% stake of the license and Mime Petroleum is partner with 10%.

CANADIAN INTEGRATEDS

No significant news.

U.S. E&PS

Bernstein upgraded APA Corp, Devon Energy, Kosmos Energy, and Pioneer Natural Resources to ‘Outperform’ from Market Perform. 

Callon Petroleum announced that, subject to market and other conditions, it intends to offer $650 million aggregate principal amount of senior unsecured notes due 2028 in a private offering that is exempt from registration under the Securities Act of 1933, as amended.

Devon Energy announced it is establishing new environmental performance targets focused on reducing the carbon intensity of its operations, minimizing freshwater use, and engaging constructively with its value chain.

CANADIAN E&PS

Canacol Energy providde the following update concerning its Aguas Vivas 1 exploration well and the near term appraisal drilling program. The Corporation also provides information on its dividend program. The CDO sandstone reservoir was perforated across an interval of 145 ft TVD and drill stem tested. The well flowed at a final rate of 35.5 million standard cubic feet per day with a flowing wellhead pressure of 1013 psi and no water after a 22 hour test period. The average flow rate achieved during the recorded test period was 17.2 MMscfpd. The well has been tied into the Jobo gas treatment facility and is on permanent production. The Aguas Vivas 2 appraisal well was spud on June 12, 2021 and is targeting a planned total depth of approximately 8,419 ft MD within the CDO sandstone reservoir, the primary target of the well. The Corporation announced that it has declared a dividend of CAD$.052 per share, payable on July 15, 2021, to shareholders of record at the close of business on June 30, 2021

OILFIELD SERVICES

KBR was awarded a contract from the NATO Support and Procurement Agency to provide analytical, engineering, technical, programmatic and logistics services for the PATRIOT missile system. The PATRIOT is an advanced surface-to-air guided air and missile defense system used by several NATO countries around the globe. 

SECURE Energy Services and Tervita announced that the final order from the Court of Queen's Bench of Alberta in respect of the proposed acquisition by SECURE of all the issued and outstanding common shares of Tervita by way of a plan of arrangement under the Business Corporations Act (Alberta) as previously announced on March 9, 2021, has been obtained. 

SECURE Energy Services announced that it has entered into an underwriting agreement to sell, pursuant to a private placement $200 million aggregate principal amount of 7.25% senior unsecured notes due December 30, 2026.

DRILLERS

No significant news.

REFINERS

No significant news.

MLPS & PIPELINES

Magellan Midstream PartnersEnterprise Products Partners and Intercontinental Exchange announced the establishment of a new futures contract for the physical delivery of crude oil in the Houston area. The Midland WTI American Gulf Coast contract is being launched in response to market interest for a Houston-based index with greater scale, flow assurance and price transparency. It will utilize the capabilities and global reach of ICE’s industry-recognized, state-of-the-art trading platform and is due to be launched by ICE by early 2022, subject to regulatory approval.

Summit Midstream Partners announced an increase to its full year 2021 financial guidance, including a new adjusted EBITDA range of $225 million to $240 million which, at the midpoint, represents an increase of 5.7% from the original guidance range of $210 million to $230 million.  Management now expects total indebtedness as of June 30, 2021, net of unrestricted cash on hand, to be reduced by approximately $82 million, which is nearly 6% lower than the outstanding net debt balance as of December 31, 2020.

MARKET COMMENTARY

Wall Street futures rose after hawkish comments from the Federal Reserve last week led the blue-chip Dow and the benchmark S&P 500 to their biggest weekly fall in months. European stocks were little changed after a slide in bank and mining shares. Japan’s Nikkei posted its biggest drop in four months, tracking Wall Street's sell-off last week. Gold prices rose, while the dollar slipped. Oil edged higher, underpinned by strong demand during the summer driving season and a pause in talks to revive the Iran nuclear deal that could lead to a resumption of crude supplies from the OPEC producer. 

NASDAQ ENERGY TEAM THOUGHT LEADERSHIP 


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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