The energy sector is poised for a higher start, supported by strength in the underlying commodities and in the major equity indices. U.S. stock index futures rose after Wall Street rallied sharply higher in the previous session, spurred by hopes that cooling inflation will push the Federal Reserve to take a less aggressive stance in its interest rate hikes.
WTI and Brent crude oil futures are up in early trading after health authorities in China, the top global crude importer, eased some of the country’s heavy COVID curbs. The easing curbs include shortening quarantine times for close contacts of cases and inbound travelers by two days, as well as eliminating a penalty on airlines for bringing in infected passengers. Prices also picked up on Friday after milder-than-expected U.S. inflation data reinforced hopes that the Federal Reserve would slow down rate increases, boosting chances of a soft landing for the world’s biggest economy.
Natural gas futures are trading higher following yesterday’s rise on a smaller than expected weekly storage build.
BY SECTOR:
US INTEGRATEDS
Pertamina Power Indonesia, Keppel Infrastructure, through Keppel New Energy Pte. Ltd., and Chevron, through Chevron New Energies International Pte. Ltd., have signed a Joint Study Agreement to explore the development of selected green hydrogen and green ammonia projects using renewable energy located primarily in Sumatera, Indonesia.
INTERNATIONAL INTEGRATEDS
An appeals court in Milan rejected Nigeria’s $1.092 billion compensation request against Italian energy group Eni and Shell in civil proceedings relating to a $1.3 billion oilfield deal.
Equinor Ventures announced a convertible note investment in Sol Clarity, a Boston-based startup that offers water-free automated non-contact solar cleaning, thereby increasing the energy yield and development feasibility of solar plants while decreasing their operating costs. Equinor Ventures participated in their $920k Seed I round.
From 11 November 2022, the shares in Equinor will be traded ex dividend USD 0.70 (ordinary dividend of USD 0.20 and extraordinary dividend of USD 0.50).
Saudi Aramco chief Amin Nasser said he was concerned there was not enough investment in the oil and gas sector to meet global demand in the long term.
The world was hoping to “crucify” Saudi Arabia as the top exporter of liquids, its energy minister Prince Abdulaziz bin Salman said at an event held on the sidelines of the COP 27 summit in Egypt. Saudi Arabian state oil producer Aramco has the lowest methane emissions by any measure, he added.
Saudi Aramco signed a joint development agreement with SLB and Linde to establish a carbon capture and storage hub which will potentially be able to safely store up to 9 million tonnes of carbon dioxide a year by 2027, the company’s CEO, Amin Nasser, said.
Shell Indonesia has expanded its Marunda Lubricants Oil Blending Plant (LOBP) in Bekasi, to meet the growing demand for premium lubricant products in Indonesia.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Index provider MSCI said that 83 securities will be added to and 78 deleted from its widely followed ACWI index as part of its index review. The three largest additions to the MSCI world index by market capitalization will be Continental Resources, Ferguson and Aspen Technology, MSCI said.
Piper Sandler downgraded Occidental Petroleum to Neutral from Overweight.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
CES Energy Solutions announced the Company’s results for the three months ended September 30, 2022, along with a 25% increase to its quarterly dividend from $0.016 per share to $0.020 per share, which will take effect and be paid on the Company’s next scheduled dividend payment of January 13, 2023 to the shareholders of record at the close of business on December 30, 2022. In the third quarter CES generated revenue of $524.7 million, representing a sequential increase of $91.1 million or 21% compared to Q2 2022, as the Company experienced revenue growth throughout the business and also benefited from the expected seasonal uptick in activity typically seen from Q2 to Q3 in Canada. Net income for the three months ended September 30, 2022 was $24.5 million compared to $13.4 million in Q3 2021.
ChampionX announced its Board of Directors has declared a regular quarterly dividend of $0.075 per share on the company’s common stock, par value $0.01 per share, to be paid on January 27, 2023 to shareholders of record on January 6, 2023.
DRILLERS
No significant news.
REFINERS
In a CNBC interview, Carl Icahn said his favorite stock is CVR Energy.
MLPS & PIPELINES
Wells Fargo downgraded DCP Midstream, L.P. to Equal Weight from Overweight.
Scorpio Tankers announced that it has elected to redeem all of its outstanding 3.00% Convertible Senior Notes Due 2025 pursuant to Section 16.01 of the Note Indenture dated March 25, 2021 effective December 1, 2022.
MARKET COMMENTARY
Wall Street futures rose and a relief rally in global shares entered a second day, while the dollar dipped, spurred by hopes that cooling U.S. inflation will push the Federal Reserve to take a less aggressive stance in its interest rate hikes. Gold extended gains and was headed for its best week in more than two years. Oil prices jumped, after health authorities in China, the top global crude importer, eased some of the country’s heavy COVID curbs.
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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