Credit: Shutterstock photoFriday, January 25, 2019
Sector Commentary
The energy sector is poised for a higher start, supported by strength in the crude complex and U.S. stock index futures. Upbea t earnings lifted market optimism this morning, which had recently been hit by worries about global economic growth, U.S. government shutdown, and uncertainty around U.S.-China trade talks.
Oil futures on both sides of the Atlantic have pared earlier losses and are now trading slightly higher. Oil futures fell earlier on concerns about U.S.-China trade talks and yesterday's EIA data tha t report ed surging U.S. fuel stocks. Meanwhile, the bearish sentiment appeared to outweigh the possibility that turmoil in Venezuela may lead to tighter global supply if the U.S. imposes sanctions on Venezuela exports.
Natural gas futures are moderately lower this morning following reports for warmer weather than previously expected.
US INTEGRATEDS
Reuters - Uniper said ExxonMobil had signed a preliminary deal to take a substantial share of the regasification capacity at a liquefied natural gas floating terminal planned for Wilhelmshaven.
U.S. E&PS
(Late Thursday) Press Release - Apache provided supplemental information regarding fourth-quarter realized commodity prices, derivative gains, dry hole costs and Egypt tax barrels. Dry hole costs in the fourth quarter include approximately $54 million for historical exploration investments in the U.K. North Sea that Apache no longer plans to develop.
Press Release - Chesapeake Energy and WildHorse Resource Development jointly announced that, in connection with Chesapeake's pending acquisition of WildHorse, the election deadline for record holders of shares of WildHorse's common stock to elect the form of merger consideration they wish to receive in connection with the transaction is 5:00 p.m. Eastern time on January 30, 2019, which is based on an anticipated transaction completion date of February 1, 2019.
CANADIAN E&PS
Press Release - Enerplus announced fourth quarter 2018 production at the high-end of its guidance range, its 2019 exploration and development capital budget of $565 to $635 million and a three-year outlook through 2021. It repurchased 5.4 million shares in the fourth quarter for $70.5 million, bringing total repurchases in 2018 to $79.0 million (5.9 million shares), further enhancing per share growth and return of capital to shareholders
OILFIELD SERVICES
(Late Thursday) Press Release - CARBO Ceramics announced the Company's Board of Directors has elected Carla S. Mashinski as an additional member of the Board. The company's board temporarily increased its size from six to seven directors.
(Late Thursday) Press Release - Hi-Crush Partners announced that it resumed operations at its Northern White frac sand production facility in Whitehall, Wisconsin. Concurrently, the Partnership announced that it has idled operations at its Northern White frac sand production facility in Augusta, Wisconsin. The dedicated and experienced workforce at the Augusta facility is in the process of transitioning to the operation of the Whitehall facility.
REFINERS
(Late Thursday) Press Release - The Board of Directors of Valero Energy has approved an increase in the company's regular quarterly cash dividend on common stock from $0.80 per share to $0.90 per share, effective with the quarterly dividend the Board has declared to be payable on March 5, 2019, to holders of record at the close of business on February 13, 2019. The increase in the dividend raises the annualized cash dividend rate on Valero's common stock to $3.60 per share.
MLPS & PIPELINES
Press Release - Andeavor Logistics announced the declaration of its quarterly cash distribution for the fourth quarter 2018 of $1.03 per limited partnership unit, or $4.12 on an annualized basis. The distribution is unchanged from the prior quarter and will be paid on February 14, 2019, to common unitholders of record as of February 5, 2019.
(Late Thursday) Press Release - Delek Logistics Partners declared its quarterly cash distribution for the fourth quarter 2018 of $0.81 per common limited partner unit, or $3.24 per common limited partner unit on an annualized basis. This distribution represents a 2.5 percent increase from the distribution for the third quarter 2018 of $0.79 per common limited partner unit ($3.16 per common limited partner unit annualized) and a 11.7 percent increase over Delek Logistics' distribution for the fourth quarter 2017 of $0.725 per common limited partner unit ($2.90 per common limited partner unit annualized). The fourth quarter 2018 cash distribution is payable on February 12, 2019 to unitholders of record on February 4, 2019.
Press Release - Gibson Energy has been deleted from the S&P/TSX Canadian Dividend Aristocrats Index, effective before the open on Feb. 1, 2019.
Press Release - The Board of Directors of Holly Energy Partners has declared a cash distribution of $0.6675 per unit for the fourth quarter of 2018, compared to the $0.6500 per unit distribution declared for the fourth quarter of 2017. Holly Energy has increased its distribution to unitholders every quarter since becoming a publicly-traded partnership in July 2004, with today's distribution marking the 57th consecutive quarterly distribution increase. The distribution will be paid on February 14, 2019 to unitholders of record on February 4, 2019.
Press Release - The board of directors of the general partner of MPLX has declared a quarterly cash distribution of $0.6475 per common unit for the fourth quarter 2018, or $2.59 on an annualized basis. This represents an increase of $0.01 per unit, or 1.6 percent, over the third quarter 2018 distribution, and an increase of $0.04 per unit, or 6.6 percent, over the fourth quarter 2017 distribution. This is the 24(th) consecutive quarterly distribution increase and will be paid on February 14, 2019, to common unitholders of record as of February 5, 2019.
(Late Thursday) Press Release - Summit Midstream Partners announced that the board of directors of its general partner, Summit Midstream GP, LLC, has declared a quarterly cash distribution of $0.575 per unit on all of its outstanding common units, or $2.30 per unit on an annualized basis, for the quarter ended December 31, 2018. This quarterly distribution remains unchanged from the previous quarter and from the quarter ended December 31, 2017. This distribution will be paid on February 14, 2019, to unitholders of record as of the close of business on February 7, 2019.
MARKET COMMENTARY
Wall Street's major indexes were trading in the green, in line with the European market and most Asian shares as strong U.S. earnings underpinned concerns of a slowing global economy and U.S.-China trade dispute. The euro recovered lost ground against the dollar, following Thursday's European Central Bank meeting. Gold prices were trading higher. Oil dipped, reversing earlier price gains made on U.S. sanctions threat on Venezuela.
NASDAQ ENERGY TEAM THOUGHT LEADERSHIP
- Bloomberg TV Commodities Edge - Q2'18 Earnings Themes
- Bloomberg TV DayBreak Americas - (Discussion with Kevin Holt, CIO of Invesco, begins at 0:56:58 - 1:05:22)
- TD Ameritrade Network - Trade Tariff Effects on Market & Interest Rates
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 . This communication and the content found by following any link herein are being provided to you by Corporate Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, "Nasdaq"), for informational purposes only. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Sources include Reuters, TR IBES, WSJ, The Financial Times and proprietary Nasdaq research.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
