SECTOR COMMENTARY Vitality shares are set to open decrease,
SECTOR COMMENTARY
Vitality shares are set to open decrease, reversing yesterday’s positive aspects as weaker commodity costs and U.S. inventory index futures weighed on the sector. Main fairness indices are pointing to a 1% decline as disappointing earnings from the mega-cap tech giants pushed futures decrease.
In sector information, earnings proceed to drive buying and selling with a number of firms throughout your complete trade reporting right this moment. Shares of Exxon Mobil are decrease in early buying and selling after the corporate posted its third straight quarterly loss and detailed deeper spending cuts because of the COVID-19 impression on power demand. In the meantime, shares of Chevron are flat after reporting an adjusted third-quarter revenue as oil costs recovered from spring lows and spending cuts benefited working outcomes.
Oil costs edged decrease and are on monitor for a second month-to-month decline on rising issues that the rise in COVID-19 circumstances in Europe and the U.S. might harm gasoline demand. Iraq’s Minister stated his nation just isn’t searching for exemptions from output degree necessities subsequent yr and reaffirms his help for the deal. Libya’s Sirte oil manufacturing, a subsidiary of the NOC, stated manufacturing has reached a 7-year excessive of 80Ok bpd.
Pure fuel futures are reasonably decrease, weighed down by weak spot within the crude oil markets. Bloomberg stated LNG feedgas flows yesterday hit a document 9.7 Bcf in line with BloombergNef. This afternoon the EIA-914 and EIA Pure Fuel month-to-month will present up to date manufacturing, consumption and commerce information for August.
U.S. INTEGRATEDS
Press Launch – Chevron reported a lack of $207 million ($(0.12) per share – diluted) for third quarter 2020, in contrast with earnings of $2.6 billion ($1.36 per share – diluted) in third quarter 2019. Included within the present quarter was a cost of $130 million attributable to a tax merchandise associated to a global upstream end-of-contract settlement and a non-cash provision of $90 million for remediation of a former mining asset. International foreign money results decreased earnings by $188 million. Adjusted earnings of $201 million ($0.11 per share – diluted) in third quarter 2020 compares to adjusted earnings of $2.9 billion ($1.55 per share – diluted) in third quarter 2019.
(Late Thursday) Reuters – Chevron stated on Thursday it started redeploying personnel and restoring manufacturing at its Gulf of Mexico platforms that had been shut on account of Hurricane Zeta.
Reuters – Exxon Mobil posted its third straight quarterly loss on Friday, because the oil main reels from a tough hit to power demand and costs as a result of COVID-19 pandemic. Internet loss attributable to Exxon was $680 million, or 15 cents per share within the third quarter, in contrast with a revenue of $3.17 billion or 75 cents per share, a yr earlier. The corporate expects to exceed capital and money bills discount targets for 2020 and forecast additional cuts in 2021.
INTERNATIONAL INTEGRATEDS
Reuters – BP stated it plans to cease producing gasoline in Australia, changing its Kwinana oil refinery, the most important of the nation’s 4, right into a gasoline import terminal.
Barclays upgraded Royal Dutch Shell to ‘Equal Weight’ from ‘Underweight’.
(Late Thursday) Reuters – Royal Dutch Shell stated it was ramping up manufacturing at it Mars Hall And Appomattox platforms within the Gulf of Mexico that had been shut on account of Hurricane Zeta.
Press Launch – Whole’s Board of Administrators met on October 29, 2020, and declared the distribution of the third 2020 interim dividend at €0.66/share, secure in comparison with the primary and second 2020 interim dividends.
Reuters – Whole trimmed its funding goal for 2020 because the coronavirus disaster bit, although the group returned to revenue within the third quarter and maintained its dividend. The corporate reported internet revenue of $202 million, down 93% from a yr earlier whereas adjusted internet revenue fell 72% to $848 million.
CANADIAN INTEGRATEDS
Press Launch – Imperial Oil declared a quarterly dividend of 22 cents per share on the excellent frequent shares of the corporate, payable on January 1, 2021, to shareholders of document on the shut of enterprise on December 3, 2020.
Press Launch – Imperial Oil posted a decrease revenue for the third quarter on Friday, harm by a coronavirus-driven droop in crude costs and gasoline demand. The Calgary, Alberta-based firm posted a internet revenue of C$Three million ($2.28 million) for the quarter ended Sept. 30, in contrast with a revenue of C$424 million a yr earlier.
U.S. E&PS
Press Launch – Antero Assets introduced that it has issued a discover to the holders of its 5.375% senior notes due 2021 that the Firm intends to redeem the entire 2021 Notes excellent on November 30, 2020 at par, plus accrued and unpaid curiosity to the redemption date. The Firm expects to make the most of a mix of proceeds from its asset gross sales program, money move from operations and out there borrowings underneath its revolving credit score facility to fund the Notice Redemption.
(Late Thursday) Press Launch – Cabot Oil & Fuel reported monetary and working outcomes for the third quarter of 2020. Third quarter 2020 internet loss was $15.Zero million, or $0.04 per share, in comparison with internet revenue of $90.Four million, or $0.22 per share, within the prior-year interval. Third quarter 2020 adjusted internet revenue (non-GAAP) was $37.Three million, or $0.09 per share, in comparison with $119.7 million, or $0.29 per share, within the prior-year interval. Third quarter 2020 EBITDAX (non-GAAP) was $163.7 million, in comparison with $283.6 million within the prior-year interval.
MKM Companions upgraded CNX Assets to ‘Purchase’ from ‘Impartial’.
(Late Thursday) Reuters – Devon Vitality posted a 3rd straight quarterly loss on Thursday as oil costs remained weak. Internet loss attributable to Devon Vitality was $92 million, or$0.25 per share, within the third quarter ended Sept. 30, in contrast with a revenue of $109 million, or 27 cents per share, a yr earlier.
Press Launch – EQT introduced it has commenced a young supply to buy for money as much as $150.Zero million mixed combination principal quantity of its excellent 4.875% Senior Notes due 2021 and three.000% Senior Notes due 2022.
(Late Thursday) Press Launch – Rogers Company introduced monetary outcomes for the third quarter of 2020. Internet gross sales had been $201.9 million elevated 5.6% versus the prior quarter. EMS and PES section gross sales elevated sequentially and had been partially offset by decrease ACS gross sales. GAAP earnings per share had been $0.37, in comparison with earnings per share of $0.78 within the second quarter of 2020.
(Late Thursday) Press Launch – SM Vitality introduced working and monetary outcomes for the third quarter 2020 and supplied updates to its 2020 steering. Third quarter 2020 internet loss was ($98.3) million, or ($0.86) per diluted frequent share, which in contrast with internet revenue of $42.2 million, or $0.37 per diluted frequent share, in the identical interval in 2019. The present interval included a $63.9 million internet spinoff loss, whereas the prior yr interval included a $100.9 million internet spinoff achieve. For the primary 9 months of 2020, internet loss was ($599.4) million, or ($5.28) per diluted frequent share, which compares with a lack of ($0.76) per diluted frequent share in the identical interval in 2019.
(PRNewswire) – SM Vitality Firm right this moment confirms that Chief Govt Officer Javan (Jay) D. Ottoson will retire on the shut of enterprise on November 2, 2020 and, as beforehand introduced, President and Chief Working Officer Herbert S. Vogel, will transition to the function of President and Chief Govt Officer.
(Late Thursday) Press Launch – For the quarter ended September 30, 2020,Southwestern Vitality recorded a internet lack of $593 million, or ($1.04) per diluted share, together with $361 million of non-cash impairments and a $289 million non-cash loss on unsettled mark-to-market derivatives on account of rising costs in future intervals. This compares to internet revenue of $49 million, or $0.09 per diluted share within the third quarter of 2019. Adjusted internet revenue (non-GAAP), which excludes the non-cash objects famous above, was $47 million, or $0.08 per diluted share within the third quarter of 2020, in comparison with adjusted internet revenue of $44 million, or $0.08 per diluted share for the prior yr interval, as decreased revenues on account of decrease costs had been offset by decreased depreciation, depletion and amortization expense. Adjusted EBITDA (non-GAAP) was $154 million, internet money supplied by working actions was $153 million and internet money move (non-GAAP) was $135 million.
(Late Thursday) Press Launch – Vary Assets introduced its third quarter 2020 monetary outcomes. Non-GAAP revenues for third quarter 2020 totaled $510 million, and money move from operations earlier than adjustments in working capital, a non-GAAP measure, was $91 million. Adjusted earnings similar to analysts’ estimates, a non-GAAP measure, was a lack of $11 million ($0.05 per diluted share) in third quarter 2020.
Press Launch – Ring Vitality introduced the appointments of Mr. John A. Crum and Mr. Richard E. Harris to the Firm’s Board of Administrators. Mr. Crum and Mr. Harris can be becoming a member of as impartial Administrators.
CANADIAN E&PS
(Late Thursday) Press Launch – Benefit Oil & Fuel is happy to report strong third quarter 2020 monetary and working outcomes and announce its 2021 capital program. Internet loss was $21.6 million in the course of the third quarter of 2020 on account of decrease realized positive aspects on derivatives and $22.9 million unrealized losses on derivatives, partially offset by elevated gross sales. Adjusted funds move of $23.6 million ($0.13 per share), with internet capital expenditures of $21.Three million ($2.Three million or 10% free money move).
(Late Thursday) Press Launch – Obsidian Vitality introduced the extension of syndicated credit score facility to January 29, 2021. The syndicated credit score facility has an underlying borrowing base of $550 million and quantity out there to be drawn of $450 million which stays unchanged.
OILFIELD SERVICES
Press Launch – Baker Hughes introduced that the Baker Hughes Board of Administrators declared a money dividend of $.18 per share of Class A typical inventory payable on November 20, 2020 to holders of document on November 9, 2020.
Press Launch – Fluor introduced that the U.S. Normal Providers Administration (GSA) awarded the corporate a five-year place on the indefinite-delivery/indefinite-quantity One Acquisition Resolution for Built-in Providers Contract (OASIS).
Press Launch – Discussion board Vitality Applied sciences introduced that its Board of Administrators has accredited a 1-for-20 reverse inventory break up of the Firm’s issued and excellent shares of frequent inventory, par worth $0.01 per share, accompanied by a corresponding lower within the Firm’s approved shares of frequent inventory, such that, following the consummation of the Reverse Inventory Cut up, the variety of approved shares of frequent inventory can be decreased from 296,000,000 to 14,800,000.
(Late Thursday) Press Launch – Oil States Worldwide reported a internet lack of $20.0 million, or $0.33 per share, for the third quarter of 2020, on revenues of $134.8 million. Consolidated EBITDA was $0.1 million. Third quarter 2020 highlights and company actions embrace generated $87.0 million in money move from operations.
(Late Thursday) Press Launch – SEACOR Holdings introduced its outcomes for the third quarter ended September 30, 2020: Internet revenue attributable to stockholders for the quarter ended September 30, 2020 was $3.2 million ($0.16 per diluted share) in contrast with $6.Four million ($0.32 per diluted share) for the quarter ended September 30, 2019.
DRILLERS
(Late Thursday) Press Launch – Dril-Quip reported operational and monetary outcomes for the third quarter of 2020. The corporate introduced third quarter internet revenue of $14.Three million, or $0.41 per share, an enchancment of $28.5 million, or $0.81 per share, from the second quarter of 2020 primarily pushed by federal revenue tax advantages.
(Late Thursday) Press Launch – Nabors Industries, Inc., a wholly-owned subsidiary of Nabors Industries Ltd., introduced that it has commenced presents to all Eligible Holders to change sure combination principal quantities of the excellent notes for as much as $300 million combination principal quantity of newly issued 9.00% senior precedence assured notes due 2025, in every case upon the phrases and topic to the circumstances set forth within the Firm’s confidential change providing memorandum, dated October 29, 2020.
REFINERS
Press Launch – Phillips 66 introduced a third-quarter 2020 lack of $799 million, in contrast with a lack of $141 million within the second quarter of 2020. Excluding particular objects of $798 million within the third quarter, primarily an impairment associated to the deliberate conversion of the San Francisco Refinery to a renewable fuels plant, the corporate had an adjusted lack of $1 million, in contrast with a second-quarter adjusted lack of $324 million.
MLPS & PIPELINES
Press Launch – Magellan Midstream Companions reported internet revenue of $211.6 million for third quarter 2020 in comparison with $273.Zero million for third quarter 2019. Diluted internet revenue per frequent unit was 94 cents in third quarter 2020 and $1.19 in third quarter 2019. Distributable money move (DCF), a non-GAAP monetary measure that represents the amount of money generated in the course of the interval that’s out there to pay distributions, was $258.Eight million for third quarter 2020 in comparison with $306.Eight million for third quarter 2019.
Press Launch – Phillips 66 Companions LP introduced third-quarter 2020 earnings of $206 million, or $0.85 per diluted frequent unit. Money from operations was $296 million, and distributable money move was $243 million. Adjusted EBITDA was $313 million within the third quarter, in contrast with $269 million within the prior quarter. On Oct. 20, 2020, the final companion’s board of administrators declared a third-quarter 2020 money distribution of $0.875 per frequent unit, a 1% enhance over third quarter 2019.
Press Launch – Shell Midstream Companions reported internet revenue attributable to the Partnership of $135 million for the third quarter of 2020, which equated to $0.30 per diluted frequent restricted companion unit. Shell Midstream Companions additionally generated adjusted earnings earlier than curiosity, revenue taxes, depreciation and amortization attributable to the Partnership of $191 million.
Press Launch – Summit Midstream Companions introduced that the Board of Administrators of its normal companion has accredited a 1-for-15 reverse unit break up on its frequent models representing restricted companion pursuits within the Partnership, efficient after the market closes on November 9, 2020. The frequent models will start buying and selling on a split-adjusted foundation on November 10, 2020.
MARKET COMMENTARY
U.S. inventory index futures fell after disappointing updates from main know-how firms together with Apple added to investor issues over the surge in coronavirus circumstances. European shares had been combined, whereas Asian equities ended within the detrimental territory. The greenback index was little modified forward of the U.S. election subsequent week. Gold gained due its protected haven enchantment. Oil costs edged up in unstable buying and selling. The U.S. shopper spending and private revenue information for September is scheduled to launch later within the day.
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