Crude Steadies After Hitting 11-Month Highs
SECTOR COMMENTARY
Energy stocks are set to open higher alongside strong broader index premarket indications a day after rioters overtook the U.S. Capitol. News flow in the sector is thin, as quiet periods emerge ahead of earnings season.
Oil prices were steady on Thursday after hitting fresh 11-month highs on a fall in U.S. stockpiles and in the wake of a pledge by Saudi Arabia to cut output by more than expected. Wednesday's storming of the U.S. Capitol by supporters of President Donald Trump appeared to have little impact, while a slight rise in global equities suggested investors believed President-elect Joe Biden would be empowered to spend more freely. Oil prices have been supported this week by a pledge by Saudi Arabia, the world's biggest oil exporter, to cut output by an additional 1 million bpd in February and March. "Saudi Arabia ...intimately knows the relationship between the oil price and the global inventory levels. Lower inventories equal higher prices," SEB chief commodity analyst Bjarne Schieldrop said.
U.S. natural gas futures were little changed on Thursday as the market waited to see if there would be more drama in Washington after the storming of the U.S. Capitol a day earlier and ahead of the release of a federal report expected to show a bigger-than-usual weekly storage draw. On Wednesday, supporters of President Donald Trump stormed the U.S. Capitol ahead of a vote in Congress certifying Joe Biden's victory in the presidential election.
U.S. E&PS
Antero Resources announced the pricing of a registered direct offering of 31.4 million shares of its common stock at a price of $6.35 per share to certain holders of its 4.25% Convertible Senior Notes due 2026. Antero Resources plans to use the proceeds from the share offering and approximately $63 million of borrowings under its revolving credit facility to repurchase from such holders $150 million aggregate principal amount of its Convertible Notes in privately negotiated transactions.
Stifel discontinued coverage on Husky Energy.
Raymond James initiated coverage on Northern Oil and Gas with a Strong Buy rating.
CANADIAN E&PS
Advantage Oil & Gas is pleased to provide an operational update, including a step change in well productivity combined with reduced capital costs. All development in the second half of 2020 was focused on the foundational Glacier asset, using existing infrastructure and owned plant capacity, with a focus on highest internal rate of return wells. Drilled 13 wells with exceptional execution. Average penetration rates for the program increased by 27% compared to the previous two Glacier programs, and average total drill costs (including fixed costs) were reduced by 10%. For the last seven wells, spud to rig-release time was only 9 days.
Canaccord Genuity upgraded Surge Energy to Speculative Buy from Hold.
Canaccord Genuity upgraded Seven Generations Energy to Buy from Hold.
OILFIELD SERVICES
Canaccord Genuity upgraded CES Energy Solutions to Buy from Hold.
TETRA Technologies announced that Paul D. Coombs has informed the Board of Directors of his intent to retire from TETRA's board following completion of the 2021 Annual Meeting of TETRA Stockholders.
MLPS & PIPELINES
Crestwood Midstream Partners LP, a wholly-owned subsidiary of Crestwood Equity Partners LP announced that it has priced $700 million in aggregate principal amount of 6.00% unsecured Senior Notes due 2029 in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended. The Notes will be guaranteed on a senior unsecured basis by all of CMLP’s subsidiaries that guarantee its existing notes and the indebtedness under its revolving credit facility. CMLP expects to close the offering on January 21, 2021, subject to customary closing conditions, and the Notes will be issued at par.
Pembina Pipeline announced that its Board of Directors has declared a common share cash dividend for January 2021 of $0.21 per share to be paid, subject to applicable law, on February 12, 2021 to shareholders of record on January 25, 2021. The common share dividends are designated "eligible dividends" for Canadian income tax purposes. For non-resident shareholders, Pembina's common share dividends should be considered "qualified dividends" and may be subject to Canadian withholding tax.
On January 4, 2020, Targa Resources announced that the Board of Directors of the Company increased the size of the Board from twelve members to thirteen members and appointed Mr. Paul W. Chung, age 60, to the Board to fill the newly created position, effective January 1, 2021. Mr. Chung will serve as a Class I Director, with a term expiring at the Company’s 2023annual meeting of stockholders.
MARKET COMMENTARY
Futures for Wall Street’s major indexes rose following a Democrat sweep in two Senate runoffs in Georgia and as Congress formally certified Joe Biden’s election victory. Prospects of a larger U.S. stimulus pushed major Asian and European equities higher. The dollar strengthened and Treasury yields soared, weighing on gold prices. Weekly claims totaled 787,000 for the week ended Jan. 2, the Labor Department reported Thursday. That was less than the Dow Jones estimate of 815,000 and a slight decrease from the upwardly revised total of 790,000 for the previous week.
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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