Energy firms stuff MLP minority owners in pipe 17 May 2018 Williams is only offering a 6 pct premium for the quarter of its subsidiary it doesn’t own. Enbridge and Cheniere put even less on the table. The recent loss of some tax breaks makes MLPs less attractive and prompted the moves. But independent shareholders are getting a raw deal.
Maduro election win will soon be his loss 17 May 2018 Securing another term as Venezuela’s president in Sunday’s poll is almost a foregone conclusion. But the country’s collapsing oil output may finally mean Nicolas Maduro’s days in power are numbered. Successors will face the mammoth task of rebuilding the economy he has trashed.
OPEC high point is an Indian summer 16 May 2018 The cartel’s biggest member, Saudi Arabia, wants oil to reach $100 per barrel. West Texas bottlenecks offer hope prices could get close. But cyclical forces are at work. Fresh pipeline capacity will unleash a tidal wave of supply. With prices high, demand will fall, too.
Santos suitor clears one of three major hurdles 15 May 2018 China's ENN and Hony Capital, top owners of the $10 bln Australian oil and gas producer, have aligned themselves with bidder Harbour Energy. That's vital support for the private-equity-backed group. A rising oil price is a remaining complication, and government approval another.
Saudi risks squandering looming oil boon 14 May 2018 The scope to plug gaps left by sanctioned Iranian oil will help Riyadh’s budget. The surplus would be best spent on education and measures to grow the private sector. The danger is that the money will be used for flashy Vision 2030 state projects that look good but change little.
California helps Paris send solar message 11 May 2018 The most populous U.S. state is making panels mandatory on most homes built after 2020. It will cut emissions only a little. But the clean-energy focus will push other states along. Fossil-fuel producers will have fewer excuses to ignore the renewable writing on the wall, too.
Saudi gets new license to be selfish over oil 9 May 2018 Since 2016 the kingdom has championed output cuts that have drained a supply glut and helped spur prices. Now that the U.S. President has amped up sanctions on Iran, Saudi can fill any gap left by lower Iranian exports. What it loses on price, it gains in volume and U.S. gratitude.
The Exchange: The fate of Venezuela 8 May 2018 The OPEC member’s mismanaged economy is in freefall and its oil output collapsing. Siobhan Morden, head of Latin America fixed-income strategy at Nomura Securities, tells Martin Langfield how President Nicolas Maduro may lose power even if he wins a controversial May 20 election.
Qatar’s Rosneft stake is pricey insurance policy 5 May 2018 The Gulf state will take back 14 pct of the Russian state oil group after a $9 bln sale to China’s CEFC collapsed. That helps Qatar-backed Glencore keep a supply agreement with Rosneft. Firmer links with Moscow also give Saudi Arabia another reason to ease up on Doha.
Latam oil opening demands hedged bets 2 May 2018 The region's growing receptiveness to foreign investment in its energy assets could be a dream come true for oil majors. Political winds can change, though, and there is no perfect blend of hydrocarbon potential and legal certainty. Brazil and Mexico will do better than the rest.
BP’s marathon repair job gets sprint finish 1 May 2018 The UK oil major’s first-quarter results beat expectations. Costs from the Gulf of Mexico spill mean it needs higher oil prices than peers to generate free cash flow. But a mix of cost discipline on new projects and higher crude values mean BP should be able to keep gushing cash.
Marathon faces hard slog to justify $23 bln outlay 30 Apr 2018 The Midwestern oil group is paying a 24 pct premium for rival Andeavor. Becoming the largest U.S. refiner has merits. But its target’s stock was already up more than 50 pct in a year. Adding value means nailing cost cuts despite only limited geographical overlap.
Enel and Iberdrola’s Brazil war lacks restraint 30 Apr 2018 The two companies’ rival bids for Eletropaulo have nearly doubled the market value of Brazil’s top utility in a month, to $1.6 billion. The Europeans want to boost their presence in Latin America’s biggest nation. But the deal is too pricey to create much value for the winner.
Glencore can dig its way out of Kinshasa quagmire 30 Apr 2018 A former partner is threatening to freeze two of the $71 bln commodity giant's operations in Congo, demanding $3 bln. It's the latest in a list of woes in the African country, including a tough new mining code. But the 6 pct drop in the stock over the past week is overblown.
Nigeria’s FX reserve fetish is bad for growth 30 Apr 2018 President Muhammadu Buhari is vaunting a rapid rise in foreign exchange reserves. A decent war chest is worth having in case the naira needs defending. But accumulating a vast pile of dollars will deprive the economy of the hard currency it needs to keep growing and create jobs.
Exxon’s strategy has yet to deliver returns 27 Apr 2018 Higher prices aren’t solving the woes of the world’s largest listed oil company. It missed earnings expectations in the first quarter as production declined. Exxon’s focus on long-term projects may yet pay off. But investors seem less confident and competitors are passing it by.
ConocoPhillips shows way on cash discipline 26 Apr 2018 Higher oil prices are fortifying Big Oil’s finances, as the U.S. producer’s earnings confirm. CEOs have to balance buying new assets, beefing up balance sheets, and paying cash out to shareholders. Wasteful opportunities abound, and Conoco’s measured approach is worth mimicking.
BP’s chairman pick is odd balm for old pay scars 26 Apr 2018 The UK oil major has picked ex-Statoil CEO Helge Lund to replace Carl-Henric Svanberg. Lund is a respected figure, but drew investor heat for his high remuneration when at BG Group. Given BP Boss Bob Dudley himself had a pay spat in 2016, it will raise investor eyebrows.
Vivo Energy offers pricey road to African growth 24 Apr 2018 The operator of 1,800 fuel stations across the continent is planning a stock market listing that values it at up to $3.3 billion. Earnings growth is healthy, and the company has scale. But a comparison with smaller regional rivals suggests the premium price tag is a stretch.
Subsea 7 can still save McDermott from itself 23 Apr 2018 The Oslo-listed oil services group has lobbed in a $2 bln offer for its U.S. counterpart. Subsea 7’s bid looks low, and hinges on McDermott ditching an agreed deal with CB&I. But CB&I’s sale of Stone & Webster to Toshiba is a bad precedent, and Subsea 7 can afford to pay more.