BHP uses commodity rally to fortify position 22 Aug 2017 The Anglo-Australian miner swung to an annual net profit of $5.9 bln. Plans to exit a troubled shale business and hold off on investing in potash chime with demands from Elliott, an activist hedge fund. The compromise, plus more focus on financial strength, looks sensible.
Total gives Maersk a crude $7.5 bln exit from oil 21 Aug 2017 The Danish conglomerate will get a 3.8 pct stake in French energy major Total in return for its oil assets. While the price looks good, Total’s stock has underperformed Maersk’s. At least Maersk investors may retain exposure to the rich synergies Total is predicting.
Viewsroom: Corporate America dumps CEO president 17 Aug 2017 Donald Trump’s inflammatory comments about white supremacists have lost him the support and advice of business leaders, leaving him increasingly isolated and ineffectual. Qatar’s stake in the LSE may prompt Saudi Aramco to shun the exchange for its IPO. Plus: M&A for the MAGA era.
Slim’s Movil win could dial up Mexico oil reform 17 Aug 2017 A court sided with the billionaire against government efforts to end his telecom dominance. That may persuade President Peña Nieto and his PRI party, already lagging in the polls for 2018 elections, to offer more sweeteners to keep his other landmark reform, on energy, pumping.
Cox: Qatar kerfuffle could tip Aramco to New York 15 Aug 2017 As the Saudi oil leviathan considers where to IPO, its skirmish alongside regional allies with its Gulf neighbor may play a role. Abu Dhabi punished banks in which Qatar is a big investor. For the LSE, Qatari capital may now be a source of anxiety rather than stability.
Petrobras takes the drama out of its crisis 11 Aug 2017 The state-controlled oil company has often resembled a character in one of Brazil's more lurid telenovelas: blessed with great potential, but profligate and easily corrupted. Second-quarter results, though, tell a dull but encouraging tale of rehab under CEO Pedro Parente.
EQT drills too deeply to sell its Rice deal 4 Aug 2017 The U.S. natural gas producer has projected implausible new possible synergies for its $6.7 bln deal. EQT also is brushing aside an admitted conglomerate discount. It's dubious logic considering how insiders could reap healthy payouts simply for making the company bigger.
Permian tech-like valuations come down to Earth 3 Aug 2017 Parsley Energy is the latest Texas driller to report sharply higher oil output yet see its stock fall. Companies’ growing efficiency drives global oil prices and has won multiples far higher than Google’s and Facebook’s. But in a commodity business, investors want profits too.
BP’s leverage is punt on oil price resilience 1 Aug 2017 The British energy giant’s net income fell to $684 mln in the second quarter but was better than expected as production soared. However, debt has crept up to 29 percent of equity. A weaker oil price would call the strategy into question.
U.S. sanctions on Venezuela a double-edged sword 31 Jul 2017 Washington is weighing fresh trade retaliation after Venezuela’s constitutional vote. New measures may embolden opposition to President Nicolas Maduro, including from the military. There’s hope for Venezuelans, but U.S. companies like Phillips 66 and Chevron will share the costs.
Exxon looks longingly at Chevron’s primed pump 28 Jul 2017 Both oil majors reported vastly improved second-quarter results. But Chevron is boosting production as investments start to pay off, while Exxon’s output is still shrinking. CEO Darren Woods’ short-term fixes, especially in the resource-rich Permian, have yet to strike it lucky.
Shell gets everything right except producing oil 27 Jul 2017 The Anglo-Dutch oil and gas giant beat forecasts in the second quarter. Earnings more than tripled to $3.6 bln from a year ago helped by its downstream refining business and recovering prices. With its debt falling also the big worry on the horizon is its stagnant production.
Permian producers tighten squeeze on U.S. rivals 26 Jul 2017 Hess is joining Anadarko in trimming capital spending as oil prices stay stuck under $50 a barrel. Meanwhile smaller Permian producers show little sign of throttling back. With lean balance sheets and growing efficiency, they look set to continue to inflict pain on competitors.
Saudi oil cut would be a hit-and-hope strategy 24 Jul 2017 The kingdom’s pact with OPEC to damp output is crumbling and has failed to drain inventories, or boost prices, fast enough. One suggestion is to reduce its own exports by as much as a seventh to shock markets into submission. If that fails, though, Saudi would look impotent.
Permian drillers almost impervious to falling oil 12 Jul 2017 U.S. producer Halcon is selling assets in the Bakken to focus on the Texas region. Growing efficiency and producers’ ability to turn off the spigot quickly if needed keeps investment gushing into the Permian. It will take a bigger bear than falling oil to shake the confidence.
Amec probe pollutes tricky oil merger 12 Jul 2017 John Wood Group shares fell more than 6 percent after the company it is taking over, Amec Foster Wheeler, said it was under investigation for possible bribery. The probe was a known risk, but the bad timing, combined with a low oil price, makes the 2.2 bln pound deal look rash.
Dubai is weakest link in anti-Qatar stand-off 11 Jul 2017 Keeping its doors open while neighbours kept theirs closed has been a winning strategy for the Middle Eastern trading enclave. The blockade of Qatar will leave a mark on Dubai’s vital real estate sector and trade flows – and could leave its investor-friendly reputation dented.
Jana’s EQT breakup pitch is short of fuel 6 Jul 2017 The activist fund reckons cutting the natural gas company in two rather than buying Rice Energy would boost its value by up to 50 pct. It’s coy with the details, though, and rivals’ multiples imply a far smaller gain. Without more information, Jana’s idea may sputter to a halt.
Qatar’s squabbles turn its gas sour for investors 4 Jul 2017 The world’s largest exporter of liquefied natural gas has revealed plans to increase output by almost a third. World demand for the fuel is growing but so are supplies. Doha’s dispute with its Gulf neighbours makes its new expansion projects less appealing for risk-shy capitalists.
Iberian energy deal needs mutual spark 4 Jul 2017 Spanish utility Gas Natural has approached Portuguese rival EDP about a 35 billion euro tie-up, Reuters reported. Shareholders likely will be receptive to a fusion that offers strategic logic. But the maths will only work if the pair can reduce combined debt of over 30 bln euros.