Crude Oil Futures Climb Backed by Ongoing Tensions Between Israel and Iran
SECTOR COMMENTARY:
The energy sector is poised for a higher start, building on yesterday’s outperformance on the backs of further strength in the crude complex while major equity indices were flat ahead of July’s job report.
WTI and Brent crude oil futures extended their move higher this morning, backed by ongoing tensions in the Middle East between Israel and Iran but gains continued to be stunted by lingering concerns that the new travel restrictions to curb the spread of the Delta variant will have on fuel demand.
Natural gas futures continued to slip lower, pressured by forecasts for milder hot weather and less demand over the next two weeks than previously expected.
BY SECTOR:
No significant news.
Morgan Stanley upgraded BP to Equal-weight from Underweight.
No significant news.
California Resources reported second quarter 2021 operational and financial results. The company reported a net loss attributable to common stock of $111 million, or $1.34 per diluted share. Adjusted net income was $78 million, or $0.94 per diluted share. In August 2021, CRC's Board of Directors increased the Share Repurchase Program by $100 million to $250 million through March 31, 2022.
Gulfport Energy Corporation (NASDAQ: GPOR) (“Gulfport” or the “Company”) today reported financial and operating results for the three months and six months ended June 30, 2021 and provided its 2021 development plan and financial guidance.Emerged from restructuring process on May 17, 2021. Right-sized firm transportation commitments and negotiated new, cost-competitive midstream agreements to better align with operating plan. Reduced total debt by more than $1.2 billion and reduced annual cash interest expense by over $90 million. Reported $87.3 million of Net Cash Provided by Operating Activities. Delivered $74.4 million of Free Cash Flow (non-GAAP measure)
Scotiabank upgraded Marathon Oil to Sector Outperform from Sector Perform.
Westport Fuel Systems financial results for the second quarter ended June 30, 2021. The company recorded revenue of $84.7 million, up 135% compared to the same period in 2020 and a sequential increase of 11% compared to Q1 2021. Net income was $17.2 million and net income per share was $0.11 mainly due to the gain from the acquisition of Stako, increased gross margin, higher income from Cummins Westport Inc. joint venture, a $2.3 million foreign exchange gain and an $8.9 million tax recovery recognized for a COVID-19 tax relief ruling from the government of Italy during the quarter.
Canacol Energy reported its financial and operating results for the three months ended June 30, 2021. The Corporation realized a net income of $2.4 million for the three months ended June 30, 2021, compared to a net income of $17.7 million for the same period in 2020, resulting in a 86% decrease year over year. Adjusted funds from operations increased 8% to $33.6 million for the three months ended June 30, 2021, compared to $31.2 million for the same period in 2020. Adjusted funds from operations per basic share increased 12% to $0.19 per basic share for the three months ended June 30, 2021, compared to $0.17 per basic share for the same period in 2020.
Enerplus reported its second quarter 2021 operating and financial results and an increase to its dividend. Enerplus reported a second quarter 2021 net loss of $59.7 million, or $0.23 per share, compared to a net loss of $609.3 million, or $2.74 per share, in the same period in 2020 which included non-cash impairments. Adjusted net income for the second quarter of 2021 was $67.9 million, or $0.26 per share, compared to an adjusted net loss of $41.2 million, or $0.19 per share, during the same period in 2020. The Board of Directors has approved a 15% increase to the Company's quarterly dividend to $0.038 per share payable on September 15, 2021. The company is also reinitiating share repurchase program.
Fluor announced financial results for its second quarter ended June 30, 2021. Revenue for the quarter was $3.2 billion, with a net loss from continuing operations of $14 million, or $0.08 per common share. Results were also negatively impacted by $49 million of foreign currency effects and certain other adjustments outlined in the table at the end of this release. Excluding the $49 million of other adjustments, and using the higher diluted weighted average share count for this level of earnings, adjusted earnings per diluted share were $0.32
Forum Energy Technologies announced second quarter 2021 revenue of $137 million, an increase of $23 million from the first quarter 2021. Net loss for the quarter was $22 million, or $3.87 per diluted share, compared to a net loss of $30 million, or $5.28 per diluted share, for the first quarter 2021. Excluding $7 million, or $1.21 per share of special items, adjusted net loss was $2.66 per diluted share in the second quarter 2021, compared to an adjusted net loss of $3.95 per diluted share in the first quarter 2021. Adjusted EBITDA was $7 million in the second quarter 2021, an improvement of approximately $5 million from the first quarter 2021.
No significant news.
No significant news.
JPMorgan downgraded BP Midstream Partners to Underweight from Neutral.
Inter Pipeline announced its financial and operating results for the three-month periods ended June 30, 2021. Funds from operations (FFO) totalled $206 million, a 12% increase from $184 million in the second quarter of 2020. Net income was $146 million, approximately 130% higher than the $63 million generated in the second quarter of 2020. Adjusted EBITDA was $235 million, up from $230 million in the same period of 2020. In the second quarter of 2021, dividend payments to shareholders were $51.5 million or $0.12 per share, resulting in a conservative quarterly payout ratio of 25 percent. Inter Pipeline's current monthly dividend rate is $0.04 per share or $0.48 per share on an annualized basis.
Pembina Pipeline announced its financial and operating results for the second quarter of 2021. Pembina reported earnings of $254 million for the second quarter, two percent lower than the same period in the prior year. Pembina reported adjusted EBITDA of $778 million for the second quarter, one percent lower than the same period in the prior year. Earnings per share was $0.39.
Pembina Pipeline announced that its Board of Directors declared a common share cash dividend for August 2021 of $0.21 per share to be paid, subject to applicable law, on September 15, 2021 to shareholders of record on August 25, 2021.
Summit Midstream Partners announced its financial and operating results for the three months ended June 30, 2021, including a net loss of $19.7 million, adjusted EBITDA of $62.1 million and DCF of $46.5 million. Net loss for the quarter included $31.5 million of non-cash charges including a $19.3 million loss contingency accrual related to a previously disclosed incident dating back to a 2015 release of produced water from a pipeline owned by Meadowlark Midstream and an $12.2 million accrual related to Energy Capital Partners' full exercise of equity warrants in exchange for 414,477 SMLP common units.
Summit Midstream Partners announced that it has entered into criminal and civil agreements to resolve previously disclosed government investigations into the discovery, in January 2015 of a discharge of produced water into Blacktail Creek, near Marmon, North Dakota and failure to report the spill on a timely basis.
U.S. stock index futures traded in a tight range ahead of a closely watched employment report for the month of July. Meanwhile, European shares pared losses. In Asian equity markets, Japan's Nikkei closed higher to mark its best week in over two months on upbeat earnings, while China shares ended lower on worries over a continuing surge of new cases of COVID-19 and tightening government regulations, although they recorded their biggest weekly gain in six. Gold was pinned below the $1,800 mark as the dollar firmed. Oil prices rose, but gains were capped by worries over demand.
NASDAQ ENERGY TEAM THOUGHT LEADERSHIP
- 5/19/21 –VIDEO: Energy Sector Catalysts
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- 2/18/21 – VIDEO: Why the Texas energy crisis may send gasoline prices higher
- 2/17/21 – VIDEO: Texas Freeze Hits Oil Supply
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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