Stock Futures Today – Oil Futures Settle Higher Despite Near-Term Demand Concerns
Energy and broader U.S. stock futures dropped in a sudden move after the U.S. Food and Drug Administration said it’s recommending a pause in the Johnson & Johnson Covid vaccine after reported cases of blood clotting.
Oil futures are higher though remain range-bound near $60 a barrel, a level around which they have gyrated for almost four weeks. The oil market is trying to shake off near-term demand concerns regarding the resurgence of the virus as well as the easing in the global reflation trade. Clouding the outlook is the prospect for more supply from the U.S. next month, which will coincide with an uptick in OPEC+ output. “As conviction in the reflation trade has faltered a bit, it seems some of that uncertainty has carried over into oil,” said Paul Horsnell, head of commodities research at Standard Chartered. There “doesn’t seem to be much conviction among traders, volumes are low and all a bit lethargic.”
Natural gas is down ahead of Thursday’s storage report which is expected to provide a bearish read with an estimated build of +65 to +70 Bcf which compares to the 5 year average of +26 Bcf. S&P Global Platts notes over the past 30 days, domestic output has averaged 91.8 Bcf/d, peaking at a single-day estimate of 92.5 Bcf/d. A rebound back to pre-pandemic could come sooner than previously anticipated thanks to recent, unexpected volume growth from associated gas basins due to less flaring and higher GORs.
Chevron and Honeywell announced the commissioning and start-up of the world’s first commercial-scale ISOALKY process unit that utilizes ionic liquids to produce alkylate. The ISOALKY technology represents a major innovation in alkylation technology.
According to Reuters, Exxon Mobil restarted a crude distillation unit (CDU) and a coker on Friday at its 502,500 barrel-per-day (bpd) Baton Rouge, Louisiana, refinery, said two sources familiar with plant operations said on Monday. The 90,000-bpd PSLA-7 CDU was shut on March for the cleaning of carbon deposits in its heater, the sources said.
JPMorgan upgraded Repsol to Neutral from Underweight.
Total and Siemens Energy signed a Technical Collaboration Agreement to study sustainable solutions for CO2 emissions reduction. The collaboration will focus on natural gas liquefaction facilities and associated power generation.
JPMorgan upgraded Total to Overweight from Neutral.
Suncor Energy will begin a turnaround at its 98,000 barrel-per-day Commerce City refinery in the Denver suburbs in mid-April that will last until the first week of June, a company executive said on Monday in an interview. As part of the turnaround, Suncor will be upgrading a gasoline-making fluid catalytic cracking unit (FCCU) at Plant 1 of the facility. Suncor in 2020 completed a similar update of an automatic shutdown system for the FCCU in Plant 2.
APA Corporation announced Tracey K. Henderson has been appointed Senior Vice President, Exploration.
Continental Resources provided an update on its first quarter 2021 production results. February 2021 weather adversely impacted first quarter 2021 total production by approximately 6 MBoepd (60% oil). First quarter 2021 oil production is expected to average approximately 152 MBopd and first quarter 2021 natural gas production is expected to average approximately 935 MMcfpd. Additionally, the Company is providing preliminary production guidance for second quarter 2021 of 160 to 165 MBopd and 920 to 940 MMcfpd. The Company is on track to meet or exceed its annual production guidance for the year of 160 to 165 MBopd and 880 to 920 MMcfpd. As of March 31, 2021, the Company has reduced its total debt to $4.97 billion, with a cash balance of $96 million, equating to net debt of $4.88 billion (non-GAAP), reflecting a significant reduction from year-end 2020. The Company’s recent debt reduction demonstrates the continued commitment to shareholder capital returns. The Company expects to reduce total debt to approximately $4 billion or below by year-end 2021.
Diamondback Energy provided an operational update for the first quarter of 2021 and announced revised full year 2021 guidance. Q1 2021 average production of 184.2 MBO/d (307.4 MBOE/d). Q1 2021 average unhedged realized prices of $56.94 per barrel of oil, $22.94 per barrel of natural gas liquids and $3.05 per Mcf of natural gas, resulting in a total equivalent price of $42.36 per BOE. Q1 2021 average hedged realized prices of $46.81 per barrel of oil, $22.76 per barrel of natural gas liquids and $2.64 per Mcf of natural gas, resulting in a total equivalent price of $35.75 per BOE.Full year 2021 oil production guidance of 218 – 222 MBO/d (360 – 370 MBOE/d), including approximately 12 MBO/d (~19 MBOE/d) of contribution from Diamondback’s Williston Basin assets. Full year 2021 cash CAPEX guidance of $1.60 – $1.75 billion. The Company expects to drill between 200 and 215 gross (178 – 192 net) wells and complete between 275 and 285 gross (250 – 259 net) wells with an average lateral length of approximately 10,300 feet in 2021.
Kosmos Energy announced that Tim Nicholson has been promoted to Senior Vice President and Head of Exploration, and John Shinol has been promoted to SVP and Chief Geoscientist.
Scotiabank upgraded Gran Tierra Energy to Sector Perform from Sector Underperform.
A consortium led by CGG has been selected by the European Space Agency’s Space Solutions initiative to undertake a study aimed at developing new environmental monitoring technology and services to help combat the global marine litter crisis. CGG will collaborate with Mott MacDonald and Brunel University London to develop innovative new environmental monitoring solutions based on CGG’s analysis and processing of Earth observation data and leveraging its artificial intelligence models.
KBR announced that it has signed a license agreement with JS Energy Limited for its proprietary K-PRO Propane Dehydrogenation technology to convert propane into propylene for JS Energy’s planned PDH project in Pakistan, which is expected to be commissioned in 2024.
MIND Technology announced financial results for its fiscal 2021 fourth quarter and year ended January 31, 2021. Revenues from Marine Technology Products sales for the fourth quarter of fiscal 2021 were $6.4 million compared to $6.5 million in the third quarter of fiscal 2021 and $8.9 million in the fourth quarter of fiscal 2020. Total revenues from continuing operations for fiscal 2021 were $21.2 million compared to $29.9 million in fiscal 2020. The Company reported a net loss from continuing operations for the fourth quarter of fiscal 2021 of $3.3 million compared to a net loss of $2.4 million in the third quarter of fiscal 2021 and a net loss of $1.5 million in the fourth quarter of fiscal 2020. Fourth quarter of fiscal 2021 net loss from continuing operations attributable to common stockholders was a $(0.29) per share, compared to a net loss per share from continuing operations of $(0.24) in the third quarter of fiscal 2021 and a net loss per share of $(0.17) in the fourth quarter of fiscal 2020. On an annual basis, the Company reported a net loss of $22.5 million attributable to common stockholders in fiscal 2021, or $(1.30) per share, compared to a net loss of $13.3 million attributable to common stockholders in fiscal 2020, or $(0.71) per share.
Petrofac announced the early award of a one-year extension to its Integrated Services contract with NEO Energy. The extension, awarded eight months ahead of the renewal date, takes Petrofac’s contract for operations, maintenance, engineering and construction support for NEO Energy’s UK activities, through to December 2022.
MLPS & PIPELINES
According to SEC filing, on April 6, 2021, Phillips 66 Partners LP and Phillips 66 Partners Holdings LLC, a wholly owned subsidiary of the Partnership, as guarantor, various financial institutions as lenders, and The Bank of Nova Scotia, Houston Branch, as administrative agent, The Bank of Nova Scotia, (BofA) Securities, Inc. and Sumitomo Mitsui Banking Corporation as joint lead arrangers and joint book runners, entered into a Credit Agreement. The Credit Agreement provides for a $450 million senior unsecured term loan that matures on April 5, 2022. The Partnership intends to use proceeds from the Credit Agreement for general partnership purposes, including repayments of borrowings under its $750 million senior unsecured revolving credit facility.
The S&P 500 and the Dow futures ticked higher, in line with European stocks, as investors awaited U.S. inflation data, scheduled for release later in the day. Japan’s Nikkei closed up, following impressive earnings of glass product companies and department store operators. The dollar rose, while gold prices slipped. Oil rose on robust China data while shrugging off Middle East tensions.
NASDAQ ENERGY TEAM THOUGHT LEADERSHIP
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, Fintech Zoom, 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.
Stock Futures Today – Oil Futures Settle Higher Despite Near-Term Demand Concerns