The energy sector is poised for a rebounded this morning following yesterday’s steep declines, supported by gains in the crude complex and broader equity futures which rose on cautions optimism after President Trump predicted a swift end to the ongoing tariff war with China. Sector news is light and volume levels are expected to be thin heading into the extended holiday weekend.
Oil prices on both sides of the Atlantic are higher in morning trading following two-straight sessions of losses, but remain on track for the biggest weekly drop this year due to rising inventories and concerns about an economic slowdown. "Clearly, bargain hunters are back in town," Naeem Aslam, chief market analyst at TF Global Markets, said of the bounce. "However, it is still set to record the worst week of the year and this is due to the increase in trade war tensions between the U.S. and China."
Natural gas futures are off half a percent after yesterday’s 1.4% gain following the EIA weekly storage data.
Reuters - Vantage Drilling International district court confirmed arbitration award of about $734 million related to dispute with Petroleo Brasileiro.
Reuters - Petroleo Brasileiro is scheduled to deliver a VLCC crude cargo to bonded storage facilities it has leased at Qingdao port in China's eastern Shandong province by end-June, according to a port source with knowledge of the vessel and ship tracking data.
Reuters - Total is seeking to sell part of its stake in Kazakhstan's giant Kashagan oilfield to raise up to $4 billion.
(Late Thursday) Press Release - Cimarex Energy announced that its Board of Directors approved a cash dividend of $20.3125 per share on its 8⅛ percent Series A Cumulative Perpetual Convertible Preferred Stock. The dividend is payable on July 15, 2019, to holders of record at the close of business on July 1, 2019, and is for the period beginning on April 16, 2019 and ending on July 15, 2019.
(Late Thursday) Press Release - EP Energy confirmed that the New York Stock Exchange has suspended trading in the Company's common stock, effective immediately, and has initiated proceeding to delist the common stock from the NYSE. The determination was based on "abnormally low" price levels of the Company's common stock pursuant to Section 802.01D of the NYSE Listed Company Manual.
Press Release - Ultra Petroleum announced that, with respect to the previously announced private offer to exchange outstanding 7.125% Senior Notes due 2025 of its wholly owned subsidiary, Ultra Resources, Inc., for up to $90.0 million aggregate principal amount of new 9.00% Cash / 2.50% PIK Senior Secured Third Lien Notes due 2024 of Ultra Resources, it has extended the Early Participation Date and the Withdrawal Deadline to 5:00 p.m., New York City time, on Friday, May 31, 2019.
(Late Thursday) Press Release - Gran Tierra Energy announced that it has completed its previously announced offering of $300 million aggregate principal amount of 7.750% Senior Notes due 2027 in a private placement to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended, to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act and pursuant to certain prospectus exemptions in Canada.
(Late Thursday) Press Release - McDermott International reaffirmed its previously disclosed schedule for the Freeport LNG project in Freeport, Texas. As disclosed on April 29, 2019, McDermott expects initial LNG production from the third and final train to occur in the first quarter of 2020.
Futures for Wall Street’s major stock indexes were higher after President Donald Trump said U.S. complaints against Huawei might be resolved within the framework of a U.S.-China trade deal. European shares pared losses, while Asian shares ended little changed. Worries over weak U.S. manufacturing activity data hurt the dollar. Oil prices rose after two sessions of losses and gold inched down.
NASDAQ ENERGY TEAM THOUGHT LEADERSHIP
- 5/2/19 - CNBC Worldwide Exchange – Energy sector M&A
- 4/23/19 - Bloomberg Daybreak Asia – Iran sanctions implications
- 3/26/19 - CNBC World Wide Exchange – Energy sector performance
- 3/18/19 - Bloomberg Daybreak Asia – OPEC meeting, Iran sanctions
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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