SECTOR COMMENTARY:
Energy stocks are poised for a higher start, backed by strength in the underlying commodities while the broader index futures ticked lower as investors continued to monitor higher yields, inflation worries and looming corporate earnings reporting.
Oil futures are higher to start the week as energy prices continue to surge globally. Both WTI and Brent were starting off higher as crude has gained more than 60% this year as demand has increased following Covid-19 recovery along with supply chain disruptions. The climbing trend of oil prices is likely to continue in the short-term, say analysts. To meet the demand in the market, OPEC+ last week decided to maintain a steady and gradual increase in output.
Natural gas futures were off -3.3% to $5.38 after last week’s bearish government storage report and forecasts calling for milder temperatures into the end of the month. The U.S Energy Departments weekly inventory release on Thursday shower a higher-than expected increase in natural gas supplies.
BY SECTOR:
US INTEGRATEDS
Chevron issued an updated climate change resilience report that further details the company’s ambition to advance our lower carbon future. Chevron adopted a 2050 net zero aspiration for equity upstream Scope 1 and 2 emissions. The TCFD-aligned report describes how Chevron is incorporating Scope 3 emissions into its greenhouse gas emission targets by establishing a Portfolio Carbon Intensity target inclusive of Scope 1 and 2 as well as Scope 3 emissions* from the use of its products.
Chevron announced the pricing terms of its previously announced 23 separate offers to purchase for cash up to $2.0 billion aggregate principal amount of outstanding notes. The Offers are made upon the terms and subject to the conditions set forth in the Offer to Purchase dated October 4, 2021 relating to the Notes and the accompanying notice of guaranteed delivery and, as applicable, the letter of transmittal. Capitalized terms used but not defined in this announcement have the meanings given to them in the Offer to Purchase.
ExxonMobil plans to build its first, large-scale plastic waste advanced recycling facility in Baytown, Texas, and is expected to start operations by year-end 2022.
INTERNATIONAL INTEGRATEDS
Petrobras said it has agreed to pay 1.4 billion reais ($254 million) to settle three civil suits relating to the leak of an oil pipeline in southern Brazil in 2000. Petroleo Brasileiro, as the company is formally known, said it would pay the amount in four quarterly payments.
Saudi Aramco asked banks to arrange a loan expected to be in the $12 billion-14 billion range that it plans to offer to buyers of its gas pipeline network, sources said, as the oil giant advances plans to raise funds from asset sales.
Seeing Machines announced that is has signed a Global Framework Agreement with Shell Global Solutions International for the provision of its Driver Distraction and Fatigue Technology, Guardian, to enhance safety across its worldwide operations.
Royal Dutch Shell plans to begin restarting its storm-idled 230,611 barrel-per-day Norco, Louisiana, refinery by bringing a diesel hydrotreater and two sulfur units on-line, said sources familiar with plant operations.
As part of its effort for continuous progress and sustainable development, TotalEnergies announced deployment of an innovative technology developed by Qnergy, to significantly reduce methane emissions related to its operations on the Barnett gas field in the United States.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
APA announced its subsidiary, Apache Corporation, has ended routine flaring in its U.S. onshore operations, achieving one of its 2021 ESG goals three months ahead of schedule.
Chesapeake Energy announced that its Board of Directors has unanimously voted to appoint Domenic “Nick” Dell’Osso as President and Chief Executive Officer and a member of the company’s Board of Directors, effective immediately. Mike Wichterich, who served as Interim Chief Executive Officer, will assume the role of Executive Chairman of the Board of Directors. Additionally, the company provided highlights of the comprehensive changes made to its Executive Compensation program.
Goldman Sachs downgraded ConocoPhillips to Neutral from Buy.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
Halliburton and VoltaGrid announced they entered into a multi-year contract with Aethon Energy to deploy an advanced, all-electric fracturing solution in the Haynesville Shale.
ATB Capital Markets downgraded Liberty Oilfield Services to Sector Perform from Outperform.
KBR announced that its leading ammonia technology has been selected by ACME Group for its breakthrough green ammonia project to be built in Oman. Under the terms of the contract, KBR will provide technology license, engineering, proprietary equipment, catalyst, and commissioning services for a plant to produce 300 metric tons per day of ammonia. The plant will be an integrated facility using solar and wind energy to produce green ammonia.
The Board of Directors of Vulcan Materials Company declared a quarterly cash dividend of thirty-seven cents per share on its common stock. The dividend will be payable on December 2, 2021, to shareholders of record at the close of business on November 16, 2021.
DRILLERS
Seadrill announced the voting results for its plan of reorganisation. All voting classes of stakeholders accepted the Plan, including all 12 credit facilities and general unsecured creditors and shareholders. Over 96% of secured lenders voted, and over 88% of secured lenders accepted the Plan.
Seadrill and the Issuer announced that at the end of September 2021, certain subsidiaries of SeaMex (in provisional liquidation), a 50/50 joint venture entered into by one of the Issuer’s subsidiaries, Seadrill JU Newco Bermuda, received payments amounting to approximately US$31.4m from Pemex, the key customer of the SeaMex Ltd. group, in respect of historic unpaid invoices.
REFINERS
No significant news.
MLPS & PIPELINES
China’s ENN Group said it has signed a 13-year long-term deal to buy liquefied natural gas from Cheniere Energy from the United States. The deal, which starts in July, 2022, is for 900,000 tonnes of LNG a year and was purchased on a free-on-board basis, the company said. The company said this is its first LNG contract priced over the U.S. Henry Hub futures index.
MARKET COMMENTARY
Wall Street futures were lower and European stocks were mostly in the red as concerns around inflation and the upcoming earnings season weighed on sentiment. Asian equities ended on a mixed note, with Japan’s Nikkei closing higher on optimism over economic reopening. The dollar rose to its highest in nearly three years versus the yen, while gold prices fell. Oil jumped as an energy crisis continued to grip major economies.
NASDAQ ENERGY TEAM THOUGHT LEADERSHIP
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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