SECTOR COMMENTARY:
Energy stocks are set to open higher, as weaker oil and natural gas prices are being offset by sharply rising broader index futures. S&P 500 futures were recently indicating gains at the open of nearly 1%. News flow in the energy sector is light as the earnings season is quickly approaching.
Oil prices fell on Thursday, extending losses from the previous session, as the U.S. said it was considering selling oil from its strategic reserves and as Russia said it was ready to stabilize the natural gas market. Both contracts fell about 2% on Wednesday. “The crude market might be less tight should the United States tap the strategic crude reserves and if Russia manages to send more natural gas to Europe, this might result in less substitution from natural gas to crude,” said UBS analyst Giovanni Staunovo. Goldman Sachs said a likely SPR release, which could be up to 60 million barrels, only posed a $3 downside risk to its $90/bbl year-end Brent price forecast.
U.S. natural gas futures dropped almost 3% on Thursday to their lowest in almost two weeks as global prices slid from record highs and on expectations a federal report will show last week’s U.S. storage build was bigger than usual for a fourth week.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
BP added to its growing presence in the electricity sector with the acquisition of Blueprint Power, a US distributed technology start-up that aims to turn commercial buildings into ‘virtual power plants’ able to trade green energy and now plans major expansion under the supermajor’s wing.
Equinor has awarded COSL Offshore Management AS a contract to drill four wells on Statfjord Øst with the COSLPromoter rig from the spring of 2023.
Petrobras has chosen a consortium of PetroRio SA and Cobra, a subsidiary of France’s Vinci SA, as the top bidder for its Albacora offshore oilfield, four people with knowledge of the matter said.
Shell released its third quarter 2021 update note. Hurricane Ida in the US Gulf of Mexico had an impact on the company’s operations and is expected to have an aggregate adverse impact of around $400 million on Adjusted Earnings and CFFO in the third quarter 2021.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Comstock Resources announced that it has entered into an asset purchase agreement with Northern Oil & Gas, Inc. to sell its assets in the Bakken shale for $154 million in cash, subject to adjustment and customary closing conditions. The properties being sold include non-operated interests in over 400 producing wells (65.9 net) with recent production of greater than 4,500 net barrels of oil equivalent per day (approximately 65% oil). The sale is expected to close in the fourth quarter and will have an effective date of October 1, 2021. Comstock expects to recognize a pre-tax loss of $130-$140 million on the divestiture. EnergyNet is acting as exclusive advisor to Comstock on the sale.
Ovintiv announced the achievement of several sustainability milestones related to emissions reductions, social responsibility and corporate governance. In addition, the Company has launched a new dynamic sustainability website, highlighting Ovintiv’s data-driven approach to environmental, social and governance (ESG) performance matters.
PDC Energy announced that the Colorado Oil and Gas Conservation Commission (COGCC) approved the Company’s Spinney Oil & Gas Development Plan (OGDP) permit application. The Spinney, an eight-well pad in rural Weld County, Colorado, marks PDC’s first approved permit under the new rules, which were enacted in January 2021. As of September 30, and inclusive of the Spinney OGDP, PDC’s estimated combined approved permits and drilled but uncompleted wells (DUCs), reflect all projected turn-in-line activity through 2023.
Stifel resumed coverage of Whiting Petroleum with a Hold rating.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
NexTier Oilfield Solutions announced the addition of Michael Sabella as Vice President, Investor Relations & Business Development at NexTier.
JPMorgan upgraded Schlumberger to Overweight from Neutral.
U.S. Silica Holdings announced that it is commencing a review of strategic alternatives for its Industrial & Specialty Products segment. A range of options are under consideration, including a potential sale or separation of the ISP segment.
DRILLERS
Nabors Industries announced its PACE-R801 – the world’s first fully automated land drilling rig – has reached total depth on its first well, a horizontal well for ExxonMobil in the Permian Basin.
REFINERS
No significant news.
MLPS & PIPELINES
Brooge Energy announced that its wholly owned subsidiary, Brooge Petroleum and Gas Investment Company FZE, inaugurated its Phase II storage facility on September 21, 2021. Reflecting the importance of this facility, present at the ribbon cutting ceremony were HH Sheikh Hamad bin Mohammed Al Sharqi, Ruler of Fujairah and Member of the UAE’s Supreme Council, and OPEC Secretary General Mohammad Sanusi Barkindo, along with the Executive team of Brooge Energy.
Golar LNG has successfully placed USD 300 million in senior unsecured bonds in the Nordic bond market. The bonds will mature in October 2025 and bear interest at 7.00% per annum. Net proceeds from the bond issue will be applied towards the refinancing of the Company’s outstanding convertible bonds maturing in February 2022 and general corporate purposes. An application will be made for the bonds to be listed on the Oslo Stock Exchange.
Nikola Corporation, and TC Energy have agreed to collaborate on co-developing, constructing, operating and owning large-scale hydrogen production facilities (hubs) in the United States and Canada. Nikola’s Energy business unit and TC Energy are actively collaborating to identify and develop projects to establish the infrastructure required to deliver low-cost and low-carbon hydrogen at scale in line with each company’s core objectives. Furthermore, Nikola and TC Energy desire to accelerate the adoption of heavy-duty zero-emission fuel cell electric vehicles (FCEVs) and hydrogen across industrial sectors by establishing hubs in key geographic locations.
MARKET COMMENTARY
U.S. stock index futures bounced, tracking European and Asian shares, after a temporary truce in the debt-ceiling standoff in Congress relieved concerns of a possible government debt default, while a dip in oil prices eased worries of higher inflation. Gold prices edged lower and the dollar held steady.
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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