Crude continues to climb on supply concerns


Energy stocks are expected to open higher, supported by higher oil and natural gas prices, strong broader index futures and continued expectations of improving fundamentals, cash flow generation and growth. operational efficiency across the industry. Sector-wide earnings continue to pour in, while a handful of analyst rating changes will guide some trading in integrated companies and E&Ps.

Oil prices rose on Thursday amid supply concerns as the European Union (EU) considers a possible ban on Russian oil imports days after dwindling supplies from Libya rocked the market. Analysts said market volatility is expected to resume soon, with the EU still weighing a ban on Russian oil for its invasion of Ukraine, which Moscow calls a “special military operation”. OPEC member Libya said on Wednesday the country was losing more than 550,000 barrels a day of oil production due to blockages at key export fields and terminals.

Natural gas futures are 5 cents higher, trading around $7.00. Weekly inventory data due out later this morning predicts construction of 31 bcf versus a 5 year average of +42 bcf.

BY SECTOR:

INTEGRATED IN THE UNITED STATES

RBC Capital Markets downgraded Chevron the performing sector to outperform.

RBC Capital Markets Upgrade ExxonMobil to outperform from Sector Perform.

INTERNATIONAL INTEGRATED

Petrobras and Equine successfully started production from the first two wells of the Enhanced Oil Recovery (IOR) project at Roncador.

Petrobras informed that it has concluded the sale to the company Ubuntu Engenharia e Serviços Ltda of its entire stake in blocks PAR-T-198 and PAR-T-218, located in the Paraná basin.

CANADIAN INTEGRATED

No significant news.

E&PS United States

Piper Sandler demoted CNX Resources to neutral overweight.

Improved Piper Sandler Range Resources and Southwest Energy to Overweight from Neutral.

CANADIAN E&PS

No significant news.

OIL SERVICES

Mineral Compass announced the completion of the sale of the company’s chemicals business in South America to a subsidiary of Cape Acquisitions LLC. The sale includes all of Compass Minerals’ remaining operations in Brazil, completing the company’s previously announced plan to exit the South American market.

Liberty Oilfield Services announced its first quarter 2022 financial results. For the first quarter of 2022, revenue increased 16% to $793 million from $684 million in the fourth quarter of 2021. Diluted loss per share was 0 $.03 for the first quarter of 2022, compared to a loss of $0.31 for the fourth quarter of 2021.

DRILLERS

No significant news.

REFINERS

Modernized Wells Fargo PBF Energy at a weight equal to underweight.

MLPS & PIPELINES

Kinder Morgan the Board of Directors approved a cash dividend of $0.2775 per share for the first quarter ($1.11 annualized), payable May 16, 2022, to shareholders of record at the close of business May 2, 2022. This dividend is a 3% increase in the first quarter of 2021 and marks the fifth consecutive annual increase. KMI Reports Net Profit Attributable to KMI of $667 Million in the First Quarter, vs. $1,409 Million in the First Quarter of 2021; and distributable cash flow (DCF) of $1,455 million, compared to $2,329 million in the first quarter of 2021. Adjusted profit was $732 million for the quarter, compared to $1,374 million in the first quarter 2021. “KMI’s financial performance during the quarter was strong as we generated earnings per share of $0.29 and DCF per share of $0.64. Although these both represent a decrease compared to the first quarter of 2021, these 2021 results were positively impacted by the non-recurring profits made during the Uri winter storm,” said KMI Chairman Kim Dang. . “Excluding Uri-related earnings from our 2021 results, earnings per share for the quarter increased 17% and DCF per share increased 16% from the first quarter of 2021. Compared to our budget, earnings net income attributable to KMI in the fiscal quarter decreased by $28 million, primarily due to unsettled commodity hedges, which we treat as certain items Adjusted earnings, which exclude certain items, exceeded our budget for the quarter by $40 million, and DCF exceeded our budget by $62 million, or 4%.Also during the quarter, we generated $822 million of excess DCF above our declared dividend. 2022, KMI expects to generate net income attributable to KMI of $2.5 billion and declare dividends of $1.11 per share, an increase of 3% over declared 2021 dividends. KMI also expected to generate a 2022 DCF of $4.7 billion and an adjusted EBITDA of $7.2 billion and end 2022 with a net debt to adjusted EBITDA ratio of 4.3 times. KMI now expects net profit, EBITDA and DCF to be favorable to the budget due to higher than expected raw material prices and favorable operating results from our Natural Gas and CO2 business segments. , partially offset by higher costs.

Kinder Morgan announced that he has joined a collaboration with Energy Cheniere, several other midstream operators, methane detection technology providers and leading academic institutions on a project focused on quantification, monitoring, reporting and verification (QMRV) of greenhouse gas (GHG) emissions ) associated with the operation of natural gas gathering, processing, transmission and storage systems. The work is aimed at improving the overall understanding of GHG emissions and fostering the deployment of advanced monitoring technologies and protocols.

Shell Midstream Partners, LP announced that the board of directors of its general partner has declared a cash distribution of $0.30 per common limited partner unit for the first quarter of 2022. The distribution will be paid on May 13, 2022 to unitholders of record as of May 3 2022.

MARKET COMMENTARY

Futures for major Wall Street indices were higher, with Tesla gaining among megacap growth and technology stocks on earnings optimism. European stocks mainly advanced on a series of positive earnings updates, while disappointing production updates from mining companies weighed on London’s FTSE 100. worried, as Japan’s Nikkei hit its highest closing level in more than two weeks, pulled by tech heavyweights. In currency markets, the euro appreciated as market expectations solidified for a first ECB interest rate hike as early as July, while the dollar depreciated against its major peers . Federal Reserve Chairman Jerome Powell is also due to speak on the global economy ahead of the International Monetary Fund’s virtual debate on the global economy.


The Nasdaq Advisory Services Energy Team is part of the Nasdaq Advisory Services, the most experienced team in the industry. The team provides unparalleled shareholder analysis, a comprehensive view of trading and investor activity, and insights on how best to manage investor relations outreach efforts. If you have any questions, please contact Tamar Essner.


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