Strengthening Oil Prices Amid Rumored Additional OPEC+ Cuts
SECTOR COMMENTARY:
Energy stocks are set to rise in today’s session, with tailwinds including higher broader index futures and strengthening oil prices. OPEC+ is rumored to be considering an additional ~1 mbd of cuts, which would lend supply side support.
News flow is active in the sector with commodities and corporates amid some consolidation speculation and investor activism in the downstream space.
Natural gas futures are higher by 1% ahead of weekly inventory data, with analysts expecting a draw of 4 bcf.
BY SECTOR:
US INTEGRATEDS
Occidental Petroleum is one of the finalists in the auction for CrownRock, an energy producer in the west Texas area of the Permian basin, with a bid of more than $10 billion, a person familiar with the matter told Reuters.
INTERNATIONAL INTEGRATEDS
BP will buy the remaining 50% stake in its solar power joint venture Lighsource BP for a base equity value of 254 million pounds ($321.64 million) as part of its drive to build up its renewable energy capacity, the British giant said.
BP's search for a new chief executive is set to extend into the first quarter of 2024, three sources told Reuters, while the board's probe into whether previous CEO Bernard Looney breached the code of conduct in his undisclosed personal relationships with staff drags on. The oil company has been in turmoil since Looney's resignation in September, company sources told Reuters, and the share price has underperformed rival Shell since then amid investor uncertainty over BP's future strategy.
CANADIAN INTEGRATEDS
Imperial Oil reported a partial power outage on Wednesday afternoon resulted in flaring at its Sarnia, Canada plant, according to a community alert. "Personnel are working to return the site to normal operations," the company said.
U.S. E&PS
According to WSJ, Occidental Petroleum 0.45% increase; green up pointing triangle is in talks to buy CrownRock, a major energy producer in the west Texas area of the Permian basin, continuing a frenzy of deal making in the oil patch. A deal for the closely held company, which could be valued well above $10 billion including debt, could come together soon assuming the talks don’t fall apart or another suitor doesn’t prevail, according to people familiar with the matter.
Gerdes Energy Research upgraded CNX Resources to Buy from Neutral.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
No significant news.
DRILLERS
No significant news.
REFINERS
Phillips 66 issued the following statement regarding a letter from Elliott Investment Management L.P. (Elliott): The Phillips 66 Board and management team welcome the perspectives of our shareholders and value their input. Over the last several weeks, the company has held discussions with Elliott and plans to continue a constructive dialogue. We agree with Elliott that successful execution of our strategic priorities will drive substantial stock price performance and believe that we have the right management team and Board in place to deliver long-term, sustainable value.
MLPS & PIPELINES
Enbridge announced that its Board of Directors has appointed Manjit Minhas as a director of Enbridge. Ms. Minhas is the co-founder and CEO of Minhas Breweries, Distilleries and Wineries. She is an experienced director and has extensive business and entrepreneurial experience. Ms. Minhas is currently a director of ATB Financial.
MARKET COMMENTARY
Wall Street futures edged higher as PCE data continued to show slowing inflation. European shares hit a more than two-month high, boosted by energy and financials stocks. In the Asian equity markets, Japan's Nikkei share average closed higher to book its best month in three years, whereas the Chinese stocks ended nearly flat on downbeat manufacturing data.
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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