The crude is flat before the US inventory report

SECTOR COMMENTARY:

The energy sector is on the verge of a mixed start to a weaker start, supported by slight strength in the crude complex but under pressure from weakness in major equity futures which fell on fears of inflation which weighed on investor sentiment.

WTI and Brent crude oil futures are slightly higher early in the session, supported by last night’s API report and tighter supplies. Ahead of official EIA data later today, last night’s industry supply report showed U.S. crude inventories were down 2.5 million barrels for the week to as of Nov. 5, defying analysts’ estimates for a 2.1 million increase in crude inventories.

After collapsing more than 8% yesterday, natural gas futures continued their decline and hit a seven-week low this morning as the US market continues to track lower global gas prices. The drop also came as US production climbs towards a monthly record and on expectations of weaker heat demand next week than expected.

BY SECTOR:

UNITED STATES INTEGRATED

No significant news.

INTEGRATED INTERNATIONAL

On behalf of the Wisting license partners, Equinor signed a contract with Aker Solutions for the front-end engineering and design (FEED) of a floating production and storage vessel (FPSO) for the Wisting field. Valued at around NOK 350 million, the study includes an option for Engineering, Procurement, Construction and Installation (EPCI) calculated at NOK 8-12 billion.

Repsol implements a buyback program up to 2.29% of its share capital, Reutersreported.

According to Reuters, Royal Dutch Shell is currently engaged in hydrocarbon exploration in Africa and that fits the company’s goal, its director of exploration for deepwater Africa Benjamin Mee said on Wednesday at an industry event . More than 80% of Shell’s exploration will focus on key positions with a focus on deep water and the company plans to spend around $ 1.5 billion per year on upstream exploration, Mee added. .

Arabian Pipes Co. has secured orders worth SAR 305 million for the supply of steel pipes to Saudi Aramco, the company said in a stock exchange statement. The duration of the contract is 12 months and the financial impact should appear from Q2 2022 to Q2 2023.

TotalEnergies and Daimler Truck AG join forces to develop a hydrogen ecosystem for transport in Europe. The partners will collaborate on the development of ecosystems for heavy goods vehicles running on hydrogen, with the aim of demonstrating the attractiveness and efficiency of trucking powered by clean hydrogen and the ambition to play a leading role. in the launch of the deployment of hydrogen infrastructure for transport. .

CANADIAN INTEGRATED

No significant news.

American E&PS

Continental resources announced the price of its private placement of $ 800 million of 2.268% senior bonds due 2026 and $ 800 million of 2.875% senior bonds due 2032. The offering is expected to close close on November 22, 2021, subject to customary closing conditions.

CANADIAN E&PS

Storm Resources announced that it has entered into a definitive arrangement agreement with Canadian natural resources whereby the purchaser has agreed to acquire all of the issued and outstanding common shares of Storm for a cash consideration of $ 6.28 per share of Storm. The proposed transaction is to be completed through a plan of arrangement under the Business Corporations Act (Alberta) and is expected to close in December 2021.

Vermilion Energy released condensed operating and financial results for the quarter ended September 30, 2021. Operating cash flow was $ 263 million in the third quarter of 2021, an increase of 52% over the previous quarter. previous quarter. The increase is mainly due to higher commodity prices. E&D capital expenditures were $ 66 million in the quarter, resulting in free cash flow of $ 196 million and a payout ratio of 27%, including expenses reclamation and abandonment. The Board of Directors approved a $ 75 million increase in our 2021 capital program to $ 375 million.

OIL FIELDS SERVICES

Baker Hugues and Shell Global Solutions BV (Shell) has signed a broad strategic collaboration agreement to accelerate the global energy transition by helping each other meet their respective commitments in terms of net zero carbon emissions and by offering solutions to decarbonize the energy sectors and industrial.

Halliburton Company announced that it has signed an agreement with Teck Resources Limited to grant Teck access to Neftex® Predictions to support their global mineral exploration efforts. Teck is one of Canada’s leading mining companies and is committed to promoting responsible mining and mining development with major business units focused on copper, zinc and steel coal as well as investments in energy assets with operations in Canada, the United States, Chile and Peru. .

Shawcor Ltd. has published its operating and financial results for the quarter ended September 30, 2021. Consolidated revenue for the third quarter of 2021 was $ 291 million, 9% more than the $ 268 million reported in the third quarter of 2020. Non-oil and gas activities reached 40%. of total turnover. The net loss in the third quarter of 2021 was $ 8.3 million (or a loss per diluted share of $ 0.12) compared to a net loss of $ 18.3 million (or a loss of 0.26 $ per diluted share) in the third quarter of 2020.

Smart sand reported a quarterly adjusted loss of 17 cents per share for the quarter ended in September. Revenue increased 47.3% to $ 34.48 million from a year ago. The company reported a quarterly loss of $ 7.26 million.

DRILLERS

Noble society and The Drilling Company of 1972 A / S (“Maersk Drilling”) announced that they have entered into a definitive business combination agreement to combine into a predominantly all-equity transaction. Following the closing of the transaction, the shareholders of Maersk Drilling and the shareholders of Noble will each own approximately 50% of the outstanding shares of the combined company. The combined company will be named Noble Corporation and its shares will be listed on the New York Stock Exchange and the Nasdaq in Copenhagen.

REFINERS

No significant news.

MLPS & PIPELINES

Ardmore Expedition announced its results for the quarter ended September 30, 2021. The company reported a net loss of $ 12.8 million for the quarter ended September 30, 2021, representing a loss of $ 0.37 per basic and diluted share . This compares to a net loss of $ 6.6 million, or a loss of $ 0.20 per basic and diluted share, for the quarter ended September 30, 2020. Reported EBITDA of $ 1.3 million for the quarter ended September 30, 2021, compared to $ 7.2 million for the three months ended September 30, 2020.

Truist Securities revalued Intermediate DCP to buy pending.

MARKET COMMENTARY

Wall Street futures slipped, while European stocks were little changed as investors waited for US inflation data expected later today. In Asian stock markets, Chinese stocks closed lower on disappointing factory exit inflation figures, while the Japanese Nikkei ended in the red as rising commodity costs weighed on a series of corporate profits. Meanwhile, oil prices fell ahead of the US Energy Information Administration’s oil inventory report due later today. Gold prices fell as the dollar and Treasury yields strengthened.

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