Oil Prices Set for Weekly Gain Due to Optimism Over Global Economic Recovery
SECTOR COMMENTARY:
Energy stocks are poised for a lower start, weighed down by weakness in the crude complex while the major index futures swiftly moved lower following a big miss on the April jobs report, but tech stocks jumped higher as Treasury yields dropped sharply. In sector news, earnings season remains in focus which should dictate individual stock performance.
Oil prices eased about 1% but were set for a weekly gain against the backdrop of optimism over a global economic recovery, though the COVID-19 crisis in India weighed.
New daily cases in India set another record, hitting 414,188. In China, data showed export growth accelerated unexpectedly in April while a private survey pointed to strong expansion in service sector activity. Separately, TSA screened 1.64M people at airports yesterday, new highs not seen since the pandemic began.
Natural gas futures are up 0.5% and 0.4% on the week. Preliminary estimates for storage data weekending today has a build of +70 to +80 Bcf. The 6-14 day forecasts indicates some potential heating demand in the Northeast, but limit cooling demand in the Southeast to just Florida.
No significant news.
No significant news.
Cenovus Energy delivered solid operating and financial performance in the company’s inaugural quarter of operations following the acquisition of Husky Energy Inc. on January 1. Cenovus produced nearly 770,000 barrels of oil equivalent per day (BOE/d) in the quarter, and generated adjusted funds flow of more than $1.1 billion, cash from operating activities of $228 million, free funds flow of $594 million and net earnings of $220 million.
Raymond James upgraded ConocoPhillips to Strong Buy from Outperform.
EOG Resources reported first quarter 2021 results. The company earned an adjusted $1.62 per share, second-highest quarterly EPS in EOG history and generated $1.1 billion of free cash flow, a quarterly record. It also declared special dividend of $1.00 per share and regular quarterly dividend of $0.4125 per share, an indicated annual total cash return to shareholders of $1.5 billion.
Tudor Pickering Holt upgraded EQT to Buy from Hold.
Northern Oil and Gas announced the company’s first quarter results. Oil and natural gas sales for the first quarter were $157.3 million. First quarter GAAP net loss, inclusive of a $128.6 million non-cash net mark-to-market loss on derivatives, was $90.4 million or $1.66 per diluted share. First quarter Adjusted Net Income was $40.2 million or $0.62 per diluted share, up from $21.7 million or $0.44 per diluted share in the prior year. Adjusted EBITDA in the first quarter was $98.8 million. The Board of Directors has also declared Northern’s first ever quarterly common stock dividend of $0.03 per share payable July 30, 2021 to stockholders of record on June 30, 2021
Occidental said that its Board of Directors has declared a regular quarterly dividend of $0.01 per share on common stock payable on July 15, 2021, to stockholders of record as of June 10, 2021.
Westport Fuel Systems reported financial results for the first quarter ended March 31, 2021 and provided an update on operations. Revenues were $76.4 million, up 14% compared to the same period in 2020 due to increased sales volumes in WFS' light-duty and heavy-duty Original Equipment Manufacturing businesses. Net loss was $3.1 million and net loss per share of $0.02 were impacted by supply chain-related production issues at WFS' initial High Pressure Direct Injection launch partner, one-time severance costs and an unrealized foreign exchange loss.
Enerplus announced financial and operating results for the first quarter of 2021 and an increase to its dividend. The Company reported first quarter 2021 cash flow from operating activities and adjusted funds flow of $37.2 million and $128.0 million, respectively, compared to $122.7 million and $113.2 million, respectively, in the first quarter of 2020. Enerplus' Board of Directors approved a 10% increase to the Company's dividend to $0.033 per share paid quarterly, from $0.01 per share paid monthly previously.
Fluor announced financial results for its first quarter ended March 31, 2021. Revenue for the quarter was $2.9 billion and the net loss from continuing operations was $61 million, or $0.43 per diluted share. Earnings attributable to Fluor were negatively impacted by $68 million as a result of NuScale expenses and other adjustments (outlined in the table at the end of this release). Excluding these items, adjusted earnings per diluted share were $0.07. Consolidated segment profit for the quarter, which includes NuScale expenses, was $60 million compared to $55 million in the first quarter of 2020.
Fluor announced that Peter J. Fluor, great-grandson of company founder John Simon Fluor, is retiring May 6 from the Fluor Corporation Board of Directors.
Fluor announced that NuScale Power, in which Fluor is the majority investor, has retained Guggenheim Securities, LLC, a leading financial advisory and capital markets firm, to explore financing options to accelerate the commercialization of NuScale’s groundbreaking small modular reactor (SMR) technology. Fluor has been actively engaged with potential strategic investors in NuScale since 2013, and recent milestones have been achieved which have rapidly increased the number of interested parties. It is expected that any potential proceeds raised through this process would be used by NuScale to accelerate and expand its SMR development program including those elements currently supported by a U.S. Department of Energy (DOE) cost-share award.
Forum Energy Technologies announced first quarter 2021 revenue of $115 million, an increase of $2 million from the fourth quarter 2020. Net loss for the quarter was $30 million, or $5.28 per diluted share, compared to a net loss of $33 million, or $5.85 per diluted share, for the fourth quarter 2020. Excluding $8 million, or $1.33 per share of special items, adjusted net loss was $3.95 per diluted share in the first quarter 2021, compared to an adjusted net loss of $4.80 per diluted share in the fourth quarter 2020. Adjusted EBITDA was $2 million in the first quarter 2021, an improvement of approximately $5 million from the fourth quarter 2020.
Tidewater announced revenue for the three months ending March 31, 2021 of $83.5 million compared with $116.4 million for the three months ending March 31, 2020. Tidewater's net losses for the three months ending March 31, 2021, were $35.3 million ($0.87 per common share) compared with $18.4 million ($0.46 per common share) for the three months ending March 31, 2020. Included in the net losses for the three months ending March 31, 2021 were severance expenses totaling $0.1 million; excluding these costs, we would have reported a net loss for the three months ending March 31, 2021 of $35.2 million ($0.86 per common share). Included in the net losses for the three months ending March 31, 2020 were $10.3 million in long-lived asset impairments and one-time severance expenses; excluding these costs, net losses for the three months ending March 31, 2020 were $8.1 million (or $0.20 per common share).
No significant news.
Calumet Specialty Products Partners reported results for the first quarter ended March 31, 2021. Net loss was $146.1 million, or $(1.82) per unit for the first quarter 2021.
Enbridge reported first quarter 2021 financial results. First quarter GAAP earnings was $1.9 billion or $0.94 per common share, compared with GAAP loss of $1.4 billion or $0.71 per common share in 2020. Adjusted earnings was $1.6 billion or $0.81 per common share, compared with $1.7 billion or $0.83 per common share in 2020. The company reaffirmed 2021 full year guidance range of EBITDA of $13.9 billion to $14.3 billion and DCF per share of $4.70 to $5.00.
Energy Transfer LP reported record financial results for the quarter ended March 31, 2021. ET reported net income attributable to partners for the three months ended March 31, 2021 of $3.29 billion, an increase of $4.14 billion compared to the same period the previous year. For the three months ended March 31, 2021, net income per limited partner unit (diluted) was $1.21 per unit.
Inter Pipeline announced its financial and operating results for the three-month period ended March 31, 2021. During the first quarter of 2021, Inter Pipeline generated adjusted EBITDA of $277.5 million, a five percent increase from the $263.9 million in the same quarter of 2020. FFO also trended higher during the period, increasing 15 percent to $239.3 million compared to $207.5 million during the same period in 2020.Net income for the quarter was $128 million, a 43 percent increase over the first quarter of 2020. The company also declared cash dividends of $52 million or $0.12 per share.
Pembina Pipeline announced its financial and operating results for the first quarter of 2021. First quarter earnings was $320 million and adjusted EBITDA was $835 million, both being consistent with the same period in the prior year, yet reflecting an improving business environment relative to most of 2020.
Pembina Pipeline announced that its Board of Directors declared a common share cash dividend for May 2021 of $0.21 per share to be paid, subject to applicable law, on June 15, 2021 to shareholders of record on May 25, 2021.
CIBC downgraded Pembina Pipeline to Neutral from Outperformer.
Summit Midstream Partners announced its financial and operating results for the three months ended March 31, 2021, including net income of $9.0 million, adjusted EBITDA of $60.4 million and DCF of $46.2 million. Operated natural gas volume throughput averaged 1,346 million cubic feet per day and liquids volume throughput averaged 65 thousand barrels per day. Operated natural gas volumes decreased 6.3% relative to the fourth quarter of 2020, largely due to natural production declines and impacts from severe winter weather in some segments, partially offset by volumes from six new well connections during the quarter in the Utica Shale and Permian segments.
TC Energy announced a net loss attributable to common shares for first quarter 2021 of $1.1 billion or $1.11 per share compared to net income of $1.1 billion or $1.22 per share for the same period in 2020. Excluding an asset impairment charge related to the formal suspension of Keystone XL and certain other specific items, comparable earnings for first quarter 2021 were $1.1 billion or $1.16 per common share compared to $1.1 billion or $1.18 per common share in 2020. TC Energy's Board of Directors also declared a quarterly dividend of $0.87 per common share for the quarter ending June 30, 2021, equivalent to $3.48 per common share on an annualized basis.
Dow Jones Industrial Average futures fell into negative territory on Friday following a big miss on the April jobs report, but tech stocks jumped higher as Treasury yields dropped sharply. The dollar fell, while gold strengthened. European shares rose on strong German exports data and upbeat corporate earnings. Japanese shares ended higher, as investors scooped up cheap technology stocks. Oil prices were slightly higher, while surging coronavirus cases in India fueled demand concerns.
NASDAQ ENERGY TEAM THOUGHT LEADERSHIP
- 1/8/20 – CNBC’s Squawk Alley: Oil market reaction to US-Iran tensions
- 1/8/20 – Bloomberg Day Break – Steady escalation of US-Iran tensions
- 12/5/19 – Bloomberg Balance of Power – OPEC's Limited Efficacy
- 9/17/19 – Oil's New Risk Premium Discussion on CNBC TV
- 9/16/19 – Discussion on Bloomberg TV about Impact of Abqaiq Attack
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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