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☆ Analysis: Sizzling rally in US energy stocks has room to run, bulls say
▼ + stars: | 2023-09-21 | by ( David Randall | ) www.reuters.com time to read: +5 min

Some believe a tight oil market and resilient U.S. growth will keep energy stocks rising for the rest of 2023. Bullish investors argue that energy stocks are still cheap by historical standards - and far less richly valued than other areas of the market. The energy sector currently trades at a forward price to earnings ratio of 12.2, well below its historical median forward P/E of 15.3, according to LSEG Datastream. Parts of the market appear skeptical energy stocks have much further to run. "That should result in a ... smoother ride for energy stocks than we’ve been accustomed to."

Persons: Bing Guan, LSEG, Charles Lemonides, Baker Hughes, Savita Subramanian, Brent, Bjarne Schieldrop, Rodney Clayton, we’ve, David Randall, Ira Iosebashvili, Marguerita Choy Organizations: Exxon, Mobil, REUTERS, Energy, West Texas, Federal, drillers, U.S . Energy, Administration, Global, Citi, Brent, SEB Research, Macquarie, Duff, Phelps Investment Management, Thomson Locations: Beaumont , Texas, U.S, Saudi Arabia, Russia, China

☆ 'Insanity upside potential': A hedge fund manager up 734% since the start of 2019 highlights the best investing opportunity he's ever seen — and explains why the remarkable oil rally will gain steam
▼ + stars: | 2023-09-19 | by ( James Faris | ) www.businessinsider.com time to read: +5 min

Renewed optimism about the economy calmed demand concerns while expectations of the largest oil production cuts since 2007 started to sap supply. Saudi Arabia and its OPEC allies refuse to boost oil production, much to the chagrin of the US. And so that's why I think it's just really, really interesting. Boosting uranium production takes years, he added, so it may take years to fix the shortage. Oil-adjacent stocks are the second-largest part of the Praetorian Capital Fund, Kupperman said.

Persons: Harris Kupperman, Kupperman, it's, I've Organizations: Energy, OPEC, Praetorian Capital Management, Capital Fund, Uranium Trust Fund, Praetorian Capital Fund, drillers, Offshore Locations: Saudi Arabia, Kazakhstan, Uzbekistan, Russia, Ukraine

☆ Vital Energy expands in Permian Basin with deals valued at $1.17 bln
▼ + stars: | 2023-09-13 | by ( ) www.reuters.com time to read: +1 min

A pumpjack is shown outside Midland-Odessa area in the Permian basin in Texas, U.S., July 17, 2018. REUTERS/Liz Hampton/File Photo Acquire Licensing RightsSept 13 (Reuters) - Vital Energy has signed agreements valued at about $1.17 billion to expand its acreage in the Permian Basin, where dealmaking is gathering pace as drillers tap the largest U.S. oil patch to quickly replenish their depleting reserves. The deal will increase the company's current production by about 35,000 barrels of oil equivalent per day (boepd), Vital said on Wednesday. Vital in May also acquired Permian assets of Forge Energy II Delaware, an EnCap portfolio company, in a $540 million all-cash deal. The deals announced on Wednesday, with the affiliates of Henry Energy and Henry Resources, Tall City Property Holdings III and Maple Energy Holdings, are expected to close in the fourth quarter, Vital said.

Persons: Liz Hampton, Vital, Henry Energy, Seher, Sriraj Kalluvila Organizations: REUTERS, Vital Energy, drillers, Vital, Forge, Henry, Henry Resources, City Property Holdings, Maple Energy Holdings, Thomson Locations: Midland, Odessa, Texas, U.S, New Mexico, Forge Energy II Delaware, Bengaluru

That is by far the most ever spent on clean energy in a year. Solar and Wind Power Have Taken Off Electricity generation per year, in terawatt hours China 600 TWh 500 Solar Wind U.S. China 400 E.U. It would shred regulations designed to curb greenhouse gases, dismantle nearly every federal clean energy program and boost the production of fossil fuels. 1 2 3 4 5 Even Tulsa, with its strong links to oil and gas, is embracing clean energy. “But we also understand that energy is energy, whether it is generated by wind, steam or whatever it might be.”Around the country, clean energy is taking root in unlikely locales.

Persons: ”, Fatih Birol, Al Gore, Crews, Francis Energy, Dewey, Bartlett Jr, “, J.W, Peters, Mr, Lazard, Gregory Nemet, —, Biden, Tesla, Giovanni Bertolino, Jon Creyts, Steve Uerling’s, Uerling, Cathy Zoi, It’s, Mary Barra, ’, Barra Organizations: Buses, Port, International Energy Agency, India India, Energy, The New York Times, Heritage Foundation, Republican, Ford, University of Tulsa’s School of Petroleum Engineering, “ Oil, Drillers, Navistar, Public Service Company of Oklahoma, Francis, Solar Power, U.S . Steel, Gas, University of Wisconsin -, Panasonic, United, European Union, United States ’, General Motors, RMI, Ford Fusion, Tesla, Postal Service, Amazon, Peterbilt, Companies, Francis Energy, BMW Group, Honda, Hyundai, Kia, Benz Group Locations: Pittsburgh, Milwaukee, Port of Los Angeles, Houston, Europe, United States, America, China, Britain, terawatt, India, U.S, States, Beijing, London, Tokyo, Washington, Oslo, Dubai, Tulsa, Okla, Italian, Oklahoma, Oklahoma City, Texas, Galveston, In Arkansas, Republican, University of Wisconsin - Madison, Georgia, Korean, Nevada, tailpipes, California, New York, San Francisco, Canada, South Korea, Russia, Ukraine, Steve Uerling’s Tulsa, E.U, G.M

☆ Under Biden, US oil production is poised to break Trump-era records
▼ + stars: | 2023-08-09 | by ( Matt Egan | ) edition.cnn.com time to read: +6 min

And yet, on his watch, US oil production is poised to shatter all-time records set during the Trump administration. If anything, the outlook for US oil production has brightened recently – in large part because oil prices have rebounded from recession fears and drillers have become more efficient. Climate vs. inflationWhen and if the oil production record falls, don’t expect any fireworks from the White House. Last week, Saudi Arabia vowed to extend its oil production cut for at least another month. It’s also true that domestic oil production -— unlike prices -— has been slow to recover from the Covid-19 crash.

Persons: Joe Biden, Trump, It’s, Biden, ”, Hunter Kornfeind, it’s, Mike Pence, Joe Biden’s, Pence, Barack Obama, “, Matt Smith, ” Biden, That’s, Kornfeind Organizations: New York CNN Business, Rapidan Energy, drillers, US Energy Information Administration, Strategic Petroleum Reserve, EIA, Exxon, Rapidan Energy Group, American Petroleum Institute, Biden, CNN, “ Locations: Saudi Arabia, Texas, Americas, Russia

☆ BP Reports Sharply Lower Earnings as Oil Prices Slide
▼ + stars: | 2023-08-01 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +2 min

Behind the NumbersThe sharp drop was largely because of lower prices for the oil and natural gas that the company produces and sells. Energy prices soared last spring after Russia’s invasion of Ukraine, generating huge profits for oil companies. Since then, all major energy companies have been hit by lower prices, but BP’s earnings fell more proportionally than those of other large oil companies like Chevron and Shell. In a reminder of how important dividend payments from large energy companies are to investors, BP said it would increase its distribution by 10 percent, to about 7.3 cents a share, despite the earnings drop. Mr. Looney suggested the price was lower than it might seem because it will be gradually paid over nearly 20 years.

Persons: Bernard Looney, There’s, Mr, Looney, ”, ‘ Organizations: Energy, Chevron, Shell, BP, Oil, Brent Locations: Ukraine, London, Germany, China, United States

Bolstered by supply cuts from the OPEC+ alliance announced earlier this month, both oil benchmarks gained nearly 5% for the week - a fifth straight week of gains. The benchmarks are on track to gain over 13% for the month. In an interview on Friday, Exxon Mobil (XOM.N) chief Darren Woods said he expected record oil demand this year and next. On the supply side, U.S. oil rigs fell by one to 529 this week, their lowest since March 2022, energy services firm Baker Hughes (BKR.O) said on Friday. Saudi Arabia is expected to extend the voluntary oil output cut for another month to include September, five analysts said, to provide additional support for the oil market.

Persons: Brent, Phil Flynn, Jerome Powell's, Tamas Varga, Darren Woods, Baker Hughes, Stephanie Kelly, Natalie Grover, Laura Sanicola, Andrew Hayley, Deepa Babington, Kirsten Donovan Organizations: drillers, U.S . Federal Reserve, European Central Bank, U.S, West Texas, Price Futures, Federal, Exxon Mobil, Thomson Locations: France, Spain, China, OPEC, United States, U.S, Saudi, Saudi Arabia, New York, London, Washington, Beijing

July 21 (Reuters) - U.S. energy firms this week reduced the number of oil and natural gas rigs operating for a second week in a row, including the deepest oil rig cut since early June, energy services firm Baker Hughes (BKR.O) said in its closely followed report on Friday. U.S. oil rigs fell by seven to 530 this week, their lowest since March 2022, while gas rigs dropped by two to 131. Baker Hughes said drillers cut four rigs in the Permian in West Texas and eastern New Mexico, the nation's biggest shale oil formation, bringing the total down to 333 rigs. They also cut two rigs in the Eagle Ford bringing the total in that South Texas shale basin down to 57 rigs. U.S. shale oil and gas production will fall in August for the first time since December, the U.S. Energy Information Administration (EIA) said in its monthly Drilling Productivity Report this week.

Persons: Baker Hughes, Scott DiSavino, Marguerita Choy Organizations: drillers, Eagle Ford, Halliburton, U.S . Energy Information Administration, Thomson Locations: West Texas, New Mexico, South Texas, U.S

☆ Analysis: Contrarians bet U.S. energy shares will shake doldrums in 2023's second half
▼ + stars: | 2023-06-28 | by ( David Randall | ) www.reuters.com time to read: +4 min

That has hurt shares of energy companies: after soaring in 2022, the S&P 500 energy sector (.SPNY) has lost nearly 10% this year, making it the index’s worst performing sector. Most investors believe central bank interest rate hikes to fight inflation should keep a lid on global growth for the time being. Yet some are positioning for a rebound in energy shares, drawn by attractive valuations and signs the U.S. will continue to stave off an economic downturn. Stan Majcher, a portfolio manager at Hotchkis & Wiley, is among those counting on oil prices rebounding due to tight supply. “If you don’t get it, the path of least resistance is for oil prices to move much higher," he said.

Persons: Brent, David Lefkowitz, Baker Hughes, Stan Majcher, Refinitiv, Charles Lemonides, Sam Peters, David Randall, Lewis Krauskopf, Ira Iosebashvili, David Gregorio Our Organizations: YORK, UBS Wealth Management, UBS, Federal Reserve, TD Securities, . West Texas, Brent, U.S, drillers, Hotchkis, Wiley, Kosmos Energy Ltd, Bank of America Survey, Hess Corp, Occidental Petroleum Corp, ClearBridge Investments, Thomson Locations: U.S, China, Saudi Arabia

☆ Oil Drillers Are Saving the Planet and Their Investors
▼ + stars: | 2023-06-22 | by ( Jinjoo Lee | ) www.wsj.com time to read: 1 min

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Persons: Dow Jones, 39f74d94 Organizations: drillers

June 9 (Reuters) - U.S. energy firms this week cut the number of oil and natural gas rigs operating for a sixth week in a row for the first time since July 2020, energy services firm Baker Hughes Co (BKR.O) said in its closely followed report on Friday. The oil and gas rig count, an early indicator of future output, fell by one to 695 in the week to June 9, the lowest since April 2022. , ,U.S. oil rigs rose one to 556 this week, while gas rigs fell two to 135, their lowest since March 2022. Data provider Enverus, which publishes its own rig count data, said drillers cut nine rigs in the week to June 7, dropping the overall count to 750. That compares with a record 12.3 million bpd in 2019. U.S. gas production, meanwhile, was on track to rise from a record 98.13 billion cubic feet per day (bcfd) in 2022 to 102.74 bcfd in 2023 and 103.04 bcfd in 2024, according to EIA's projection.

Persons: Baker Hughes, Beth McDonald, McDonald, Goldman Sachs, Scott DiSavino, Marguerita Choy Organizations: drillers, Natural Resources, Organization of Petroleum, U.S . Energy Information Administration, Thomson Locations: U.S, Saudi Arabia, Russia

☆ Oil prices jump 2% after U.S. debt deal and jobs data as focus turns to OPEC
▼ + stars: | 2023-06-02 | by ( ) www.cnbc.com time to read: +2 min

Drillers work at a shale oil well site in Jiangyan district of Taizhou, East China's Jiangsu Province, April 7, 2023. Oil prices rose more than 2% on Friday after the U.S. Congress passed a debt ceiling deal that averted a government default in the world's biggest oil consumer and jobs data fed hopes for a possible pause in interest rate hikes ahead of a meeting of OPEC and its allies this weekend. U.S. employment increased more than expected in May, but a moderation in wages could allow the U.S. Federal Reserve to skip an interest rate hike this month for the first time in more than a year. Oil traders have turned their attention to the June 4 meeting of OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia. On the demand side, manufacturing data out of China, the world's second biggest oil consumer, painted a mixed picture.

Persons: Brent, Craig Erlam, Erlam Organizations: Drillers, U.S, Congress, . West Texas, Senate, U.S . Federal Reserve, Organization of, Petroleum Locations: Jiangyan district, Taizhou, East China's Jiangsu Province, Russia, OPEC, Saudi, Saudi Arabia, China, Shanghai, Shenzhen

☆ Philip Morris International CEO aims to make its stock an ESG investment, FT reports
▼ + stars: | 2023-05-31 | by ( Allison Morrow | ) edition.cnn.com time to read: +3 min

The majority of those sales come from PMI’s “heated tobacco” products, which use electricity to warm, rather than burn, tobacco. “This requires system-level change.”Philip Morris International, headquartered in Switzerland, is the multinational firm that sells Marlboro brand cigarettes in non-US markets. It was spun off in 2008 from Altria Group, which controls Philip Morris USA. That’s especially true in Europe, where ESG accounted for 65% of all flows into ETFs in 2022, according to Morningstar data. Olczak touted PMI’s ESG bona fides on transparency, though he also acknowledged that the use of child labor in tobacco supply chains harmed his company’s ESG rating.

Persons: Philip Morris, Jacek Olczak, ” Olczak, “ I’m, Philip Morris …, ”, ” Philip Morris, ESG, Olczak, “ Organizations: New, New York CNN, Tobacco, Philip Morris International, Financial Times, CNN, ” Philip Morris International, Marlboro, Altria Group, Philip Morris USA, drillers, Morningstar Locations: New York, Switzerland, Europe

☆ Wildfires burn millions of acres in Canada, send oil prices higher
▼ + stars: | 2023-05-17 | by ( Emma Newburger | ) www.cnbc.com time to read: +1 min

Wildfires burning across western Canada have forced thousands of people to evacuate their homes and have prompted some oil and gas companies to curb production as blazes approach pipelines. There were nearly 90 fires burning in the western province of Alberta, a quarter of which are expected to grow larger, according to the Canadian Wildland Fire Information System. The fires have had a notable impact on the region's oil industry, as some drillers were forced to halt a small percentage of production as a precautionary measure due to shifting fire conditions. This week, Benchmark Canadian heavy crude prices tightened to multi-month highs over concerns about the blazes. Nearly 2.7 million barrels of daily oil sands production in Alberta is in "very high" or "extreme" wildfire danger zones, according to Rystad Energy, an energy consulting firm.

Top producers have built a war chest to fund acquisitions after reaping windfall profit in 2022 from skyrocketing oil prices following Russia's invasion of Ukraine. At least three analysts have identified Diamondback Energy Inc (FANG.O), Matador Resources Inc (MTDR.N) and Permian Resources Corp (PR.N) as possible takeout targets. The shale patch, which lies between Texas and New Mexico, has the necessary infrastructure and is known for high productivity and large undeveloped reserves. But a surge in oil prices last year helped turn the tide. Last week, ConocoPhillips (COP.N) CEO Ryan Lance said he was expecting more shale deals, adding that "consolidation needs to happen" among Permian Basin energy producers.

☆ Analysis: OPEC+ in driver's seat as oil supply growth lags demand
▼ + stars: | 2023-04-04 | by ( Alex Lawler | ) www.reuters.com time to read: +4 min

U.S. shale oil drillers over the last two decades helped to turn the United States into the world's largest producer. OPEC has this year been lowering its U.S. shale oil output forecast, having also done so in 2022. OPEC trims shale forecastsAn OPEC+ source, asked if OPEC+ is in the driver's seat when it comes to the oil market now, said: "We are not in the passenger seat". LACK OF INVESTMENTOPEC sources have cited a lack of sufficient investment to increase supply as likely to support prices this year. Demand growth is expected to exceed non-OPEC supply growthThe International Energy Agency, which represents 31 countries including top consumer the United States, also expects demand growth to exceed supply growth, although to a smaller extent than OPEC.

Oil prices jumped over 6% on Monday, with U.S. crude futures topping $80 per barrel. The U.S. pumped nearly 12.5 million bpd in January, according to the latest government data. U.S. cash crude prices strengthened on Monday, with Mars Sour gaining 50 cents to trade at a $1.40 discount to U.S. crude futures . U.S. seaborne crude exports last month hit 4.74 million bpd, the highest monthly total since at least January 2020, Vortexa data showed. "This development should bode well for already strong U.S. crude exports with increased medium- and heavy-sour Canadian crude exports from the U.S. in order to supply a global market which is already short on sour crude," said Rohit Rathod, senior oil market analyst at Vortexa.

Big gas producers including Chesapeake Energy Corp (CHK.O) and Comstock Resources Inc (CRK.N) are reducing their drilling. "About a third of U.S. gas production is associated gas - produced from oil wells," said Jacques Rousseau, a managing director at research firm ClearView Energy Partners LLC. Gas from the Permian also has climbed to record highs every month this year. PRODUCTION REMAINS STICKYU.S. gas production remains on track to hit 100.67 billion cubic feet per day (bcfd) this year, up from last year's record 98.09 bcfd, according to the U.S. government. Despite low gas prices, U.S. drillers have 160 rigs seeking gas up 16% from a year ago, according to data from Baker Hughes Co (BKR.O).

☆ Oil dips on profit taking, markets debate supply tightness
▼ + stars: | 2023-03-29 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

Brent crude closed 37 cents, or 0.5%, lower at $78.28 a barrel, while West Texas Intermediate crude fell 23 cents, or 0.3%, to $72.97. On the supply side, worries of tightness after an unexpected draw in U.S. oil stockpiles and a halt to some Iraqi Kurdistan oil exports were partially offset by a smaller-than-expected output cut in Russia. U.S. crude oil stockpiles fell unexpectedly last week, the Energy Information Administration said, as refineries ramped up operations after maintenance season and U.S. imports fell to a two-year low. Supply concern were, however, eased by reports that Russian oil production fell by around 300,000 bpd in the first three weeks of March, less than the targeted cuts of 500,000 bpd. A stronger greenback hurts oil demand as crude becomes more expensive for buyers who hold foreign currencies.

☆ Activity stalls in top U.S. oilfields, outlook sours -Fed survey
▼ + stars: | 2023-03-29 | by ( Liz Hampton | ) www.reuters.com time to read: +2 min

Overall, a company outlook index turned negative, falling 27 points to -14.1. The survey was conducted among 147 oil and gas firms between March 15 and 23, a period in which oil prices were faltering on concerns about the global banking industry. While the oil production index remained positive, it fell sharply during the quarter to 10.5 from 25.8 in the fourth quarter. The dramatic pullback in natural gas prices has also led to a decrease in appetite to target gas prospects and has also led to some optional gas-rate curtailments," said one. Supplier delivery times turned negative, indicating a continuation of the supply chain snags that have plagued the industry over the past year.

☆ James Davolos' stock fund has been one of the world's best for two decades. He told us how he has consistently beaten the market, and why he's comfortable betting half his money on a single company.
▼ + stars: | 2023-03-24 | by ( Marley Jay | ) www.businessinsider.com time to read: +6 min

Co-manager James Davolos told Insider about the fund's approach to identifying market mistakes. Half the fund's money is in one stock, and Davolos explained why he's not hurrying to change that. Davolos and his team then investigate those areas and try to identify any mistakes the market has made about the quality of an investment. "Nobody at the firm follows a sector per se, or a geography, or a capitalization," Davolos told Insider in a recent interview. Texas Pacific doesn't have to pay for equipment or fund that work; it simply makes money from the drillers.

☆ Big Oil’s old profligacy lives on Down Under
▼ + stars: | 2023-03-15 | by ( Antony Currie | ) www.reuters.com time to read: +4 min

Throw in dividends and Santos shareholders have received a measly 6% total return during that period. Santos’ 15% return on capital employed last year puts it at the bottom of the class; BP delivered almost 25%. It looks slated to stay in the basement, with analysts projecting a sub-8% return for 2025, per Refinitiv data. The bonus is mostly tied to successful “growth projects”, which arguably encourages him to overinvest. If that happens again at next month’s annual meeting, it would, under Australian rules, allow investors to boot the entire board.

☆ Atlas Energy valued at $1.75 billion after shares fall in U.S. debut
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +1 min

March 9 (Reuters) - Shares of Atlas Energy Solutions Inc (AESI.N) fell nearly 3% in their U.S. market debut on Thursday, valuing the oilfield services firm at $1.75 billion. The Austin, Texas-based company's shares opened at $17.5, below its initial public offering price of $18 a share. Atlas raised $324 million in its IPO on Wednesday after it sold 18 million shares at $18 apiece, below a range of $20 to $23 set earlier. Reuters was the first to report last year that Atlas was preparing for an IPO which could value the company at $2 billion to $3 billion. Calgary-based energy company Greenfire Resources and clean energy producer NET Power plan to merge with blank-check companies to go public in the United States.

☆ The Willow Oil Test for Biden
▼ + stars: | 2023-03-02 | by ( The Editorial Board | ) www.wsj.com time to read: 1 min

President Biden says the only barrier to more U.S. oil production is recalcitrant drillers. Ok, Mr. President, then are you going to approve Alaska’s Willow project? ConocoPhillips acquired its first Willow leases in 1999 in Alaska’s National Petroleum Reserve (NPR-A), an area the size of Indiana that Congress specifically set aside for oil development. It’s the largest pending oil and gas project in the U.S., with expected production of 180,000 barrels of oil a day, and 600 million over 30 years.

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