Oil Prices Up 2%, Snapping Two Day Losing Streak
SECTOR COMMENTARY:
Energy stocks are set to rise alongside higher broader equity futures and strengthening oil prices. September CPI rose 0.4%, slightly above the +0.3% forecast, while year-over-year CPI increased by 3.7%. Ex-food and energy, inflation rose 0.3% and 4.1%, respectively, for the month and 12-months. News flow is light across the sector amid the current pre-earnings quiet period.
Oil prices are up nearly 2%, snapping a two-day losing streak as traders continue to weigh a stronger dollar and a possible economic slowdown against tight supplies and a demand growth forecast increase from the IEA regarding its 2023 estimates. Weekly DOE inventory data is due out today, a one day delay due to the Columbus Day holiday on Monday.
Natural gas futures are down 1.7%. Weekly inventory data is expected to show a build of 88 bcf versus the 5-year average of +93 bcf.
BY SECTOR:
US INTEGRATEDS
Chevron-led Tengizchevroil, has reduced output since Oct. 10 due to a compressor outage caused by power supply issues, and is working on restoring production, it said. Kazakhstan earlier reported a 20,000-ton drop in daily crude output on Oct. 11 compared with Oct. 10.
Chevron and unions at its liquefied natural gas (LNG) facilities in Australia made progress in a second day of talks on pay and conditions but fell short of a deal to end months of labour disputes at the major export sites. They held the talks before Australia's industrial arbitrator, the Fair Work Commission, and plan further talks on Friday, a union representative said.
Truist Securities upgraded Exxonmobil to Buy from Hold.
INTERNATIONAL INTEGRATEDS
Angola's Azule Energy, a 50/50 partnership between Eni and BP, plans to increase production to 250,000 barrels per day (bpd) by 2026 from the 220,000 bpd it currently produces, Chief Executive Officer Adriano Mongini told Reuters.
The CEO of Eni Claudio Descalzi met the Minister of Energy and Mines of Algeria, Mohamed Arkab, and the newly appointed CEO of SONATRACH, Rachid Hachichi, in Algiers, to discuss gas production and export, investments in the country and energy transition initiatives.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Vital Energy provided select preliminary results for third-quarter 2023, including average daily total and oil production and incurred capital investments. Production. The Company’s third-quarter 2023 total production averaged approximately 101.3 thousand barrels of oil equivalent per day ("MBOE/d"), above guidance of 94.0 - 98.0 MBOE/d. Oil production for the quarter averaged approximately 48.7 thousand barrels of oil per day ("MBO/d"), above guidance of 45.5 - 48.5 MBO/d. Production results were primarily driven by outperformance of recently turned-in-line wells on the Driftwood and Forge acquisitions and in Howard County. Capital Investments. Total incurred capital expenditures during third-quarter 2023 were approximately $162 million, excluding non-budgeted acquisitions and leasehold expenditures, below the low end of guidance of $165 - $180 million. For the three months ended September 30, 2023, diluted weighted-average shares outstanding was approximately 18.6 million. Total shares of common stock outstanding on September 30, 2023 was 21.8 million.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
On October 1, 2021, Expro Group Holdings and certain of its subsidiaries, including Exploration and Production Services (Holdings) Limited and Expro Holdings US Inc., as borrowers, entered into a senior secured revolving credit facility by and among, inter alios, DNB Bank ASA, London Branch, as agent, and other financial institutions as lenders (as amended and/or restated from time to time, the “Facility Agreement”). On October 6, 2023, the Company and certain of its subsidiaries, including Exploration and Production Services (Holdings) Limited and Expro Holdings US Inc., as borrowers, amended and restated the Facility Agreement (the “Amended and Restated Facility Agreement”) pursuant to an amendment and restatement agreement by and among, inter alios, DNB Bank ASA, London Branch, as agent, and other financial institutions aslenders, in order to, among other things, (i) extend the maturity of the Facility Agreement for a further 36 months, (ii) increase the Total Commitments under the Facility Agreement to $250,000,000, (iii) amend the pricing of the facility and (iv) make a number of updates to the terms and conditions of the facility, reflective of the Company’s increased scale and improved financial profile.
DRILLERS
No significant news.
REFINERS
No significant news.
MLPS & PIPELINES
TC Energy announced that distinguished industry leader Hal Kvisle has agreed to be appointed as Chair of the new Liquids Pipelines Company’s Board of Directors. The announcement follows the July 27, 2023 disclosure that TC Energy plans to separate into two independent, investment-grade, publicly listed companies through the spinoff of its Liquids Pipelines business (the Transaction or the spinoff).
MARKET COMMENTARY
Wall Street futures rose as Treasury yields eased. European stocks also traded in the green. Japan's Nikkei ended higher as investors scooped up beaten-down stocks following heavy sell-offs, with chip stocks leading the charge. Gold prices jumped to a two-week high, as the dollar ticked down.
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 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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