SECTOR COMMENTARY:
The vitality sector is poised for a combined to decrease begin, pressured by marginal weak point within the crude complicated however supported energy within the main fairness futures which rose on heavyweight earnings numbers and information exhibiting preliminary jobless claims declined for the third consecutive week.
WTI and Brent crude oil futures each inched off yesterday’s good points, weighed down by new forecasts from the IEA which stated the unfold of the Delta variant of the coronavirus would gradual the restoration of world oil demand. The declines nonetheless had been stunted after OPEC+ issued a contradictory assertion, sticking to their prediction of a powerful restoration in world oil demand in 2021 and additional development subsequent yr. The group additionally raised its forecast of provide from rivals, together with U.S. shale producers, subsequent yr, a possible headwind for the efforts of the group and allies to steadiness the market. In its month-to-month report, the IEA stated that rising demand for oil reversed course in July and was set to proceed extra slowly for the remainder of the yr after the most recent wave of COVID-19 infections prompted nations to usher in restrictions once more.
U.S. pure gasoline futures eased to a one-week low this morning on forecasts for barely much less scorching climate and decrease air con demand this week than beforehand anticipated. The declines additionally got here forward of a report anticipated to point out an even bigger than traditional storage construct as a consequence of gentle climate and decrease exports final week.
BY SECTOR:
US INTEGRATEDS
In line with Reuters, Exxon Mobil together with Chevron is looking for to bulk up within the burgeoning renewable fuels area by discovering methods to make such merchandise at present services, sources acquainted with the efforts stated. The 2 largest U.S. oil corporations wish to produce sustainable fuels with out ponying up billions of {dollars} that some refineries are spending to reconfigure operations to make such merchandise.
INTERNATIONAL INTEGRATEDS
No vital information.
CANADIAN INTEGRATEDS
No vital information.
U.S. E&PS
No vital information.
CANADIAN E&PS
Birchcliff Power introduced its monetary and operational outcomes for the three months ended June 30, 2021. The corporate generated $90.2 million of adjusted funds move, or $0.34 per fundamental frequent share, a 315% enhance and a 325% enhance, respectively, from Q2 2020. Delivered $81.Zero million of money move from working actions, a 513% enhance from Q2 2020. It additionally recorded web revenue to frequent shareholders of $43.9 million, or $0.16 per fundamental frequent share, as in comparison with a web loss to frequent shareholders of $39.5 million and $0.15 per fundamental frequent share in Q2 2020.
Enerplus introduced acceptance by the Toronto Inventory Alternate of its discover to begin a standard course issuer bid. Pursuant to the Bid, Enerplus proposes to buy via the services of the TSX, the New York Inventory Alternate and/or different Canadian buying and selling techniques, every so often over the following 12 months, if thought of advisable, as much as 25,565,811 frequent shares, being 10% of the general public float of Enerplus (throughout the that means beneath the TSX guidelines) as of August 5, 2021.
Peyto Exploration & Growth offered its working and monetary outcomes for the second quarter of the 2021 fiscal yr. The corporate generated $82 million in Funds from Operations in Q2 2021 ($0.50/share), up from $33 million in Q2 2020 ($0.20/share) as a consequence of increased commodity value realizations mixed with increased manufacturing, regardless of a $22 million realized hedging loss within the quarter. FFO within the quarter exceeded capital expenditures by $25 million. This represents a free money move ratio of over 30% of FFO whereas dividends of $1.7 million within the quarter symbolize a payout ratio of two%. Earnings of $12.eight million or $0.08/share had been generated within the quarter whereas dividends of $1.7 million had been paid to shareholders.
OILFIELD SERVICES
ION Geophysical reported revenues of $19.7 million within the second quarter 2021, a 40% enhance in comparison with $14.0 million within the first quarter 2021 and a 13% lower in comparison with $22.7 million one yr in the past. Internet loss attributable to ION within the second quarter 2021 was $23.6 million, or a lack of $0.90 per share, in comparison with $5.2 million, or a lack of $0.37 per share within the second quarter 2020. Excluding particular objects in each intervals, the Firm reported an Adjusted web loss attributable to ION within the second quarter 2021 of $11.1 million, or a lack of $0.43 per share, in comparison with an Adjusted web loss attributable o ION of $12.1 million, or a lack of $0.85 per share within the second quarter 2020.
In line with SEC submitting, on August 5, 2021, Man M. Malden, Thoughts Expertise’s Co-CEO and Government Vice President of Marine Operations, knowledgeable the Firm of his intention to retire efficient December 31, 2021. In reference to Mr. Malden’s retirement, the Firm’s Board of Administrators appointed Robert P. Capps as sole Chief Government Officer and President of the Firm efficient instantly. As well as, on August 5, 2021, the Board appointed Mark A. Cox as Chief Monetary Officer of the Firm efficient instantly.
Pure Gasoline Providers Group introduced monetary outcomes for the three months ended June 30, 2021. Rental income was $15.6 million, a rise of two% when in comparison with the primary quarter of 2021 and three% when in comparison with the second quarter of 2020. Internet loss was $1.9 million ($0.14 loss per fundamental and diluted share) a discount of $1.5 million when in comparison with the primary quarter of 2021 and $2.1 million when in comparison with the second quarter of 2020.
Zephirin Group upgraded Oceaneering Worldwide and Oil States Worldwide to Purchase from Maintain.
BMO upgraded Pason Methods to Outperform from Market Carry out.
TechnipFMC is becoming a member of forces with Loke Marine Minerals (Loke) to develop enabling applied sciences for the extraction of seabed minerals, driving the vitality transition and a sustainable future.
DRILLERS
Zephirin Group upgraded Helmerich and Payne to Purchase from Maintain.
REFINERS
Cowen upgraded HollyFrontier to Market Carry out from Underperform.
Wells Fargo upgraded HollyFrontier to Equal Weight from Underweight. The agency additionally downgraded PBF Power to Underweight from Equal Weight.
MLPS & PIPELINES
No vital information.
MARKET COMMENTARY
Wall Avenue futures rose as information indicated U.S. inflation development could have peaked, whereas buyers awaited producer costs and jobless claims figures, scheduled for launch later within the day. European shares gained as robust earnings from insurers and M&A exercise within the UK helped offset a fall in mining shares. In Asian markets, Japan’s Nikkei and Chinese language shares closed decrease as chip-related shares had been hit by considerations that provides are coming again. The greenback inched up, whereas gold costs had been little modified. Oil costs dipped.
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