In our top story, investors in the world’s largest oil and gas companies are eyeing a windfall from rising crude prices as the sector heads toward its strongest financial performance in a decade. But they’re keeping a tight rein on spending. European companies Total and BP have already launched share buyback programs, and Royal Dutch Shell is preparing to follow suit. Meanwhile, U.S. majors Exxon Mobil and Chevron, are also benefiting from this year’s faster-than-expected upturn in oil prices. Barclays analyst Lydia Rainforth told the Financial Times the oil market is tightening and it’s now appropriate to factor in at least some of the windfall profitability that higher prices are generating.
Cheniere Energy has approved the construction of a third liquefaction unit at its Corpus Christi export terminal. It’s the first new LNG project to go ahead in the U.S. since 2015. The positive investment decision comes as Washington and Beijing have stepped back from the brink of a trade war and agreed to hold further talks to boost U.S. exports to China. Cheniere signed long-term deals with China National Petroleum Corporation in February to export LNG to the state-owned oil and gas firm.
Australia major Santos ended talks with Harbour Energy and rejected the U.S.-based firm's $10.8 billion takeover offer.
And oilfield service company Weatherford may have to sell one of its larger businesses next year to pay down its sizeable debt, said CEO Mark McCollum at the UBS Global Oil and Gas Conference in Austin, Texas. He didn’t identify which businesses the company was considering selling.
That’s it for Hart Energy headlines this week. Be sure to check out our DUG Permian coverage at oilandgasinvestor.com and epmag.com.
Recommended Reading
TotalEnergies Buys UK Power Plant from EIG for $575MM
2024-06-06 - TotalEnergies signed an agreement with EIG, an institutional investor in the global energy sector, for the acquisition of all the shares of West Burton Energy for an enterprise value of £450 million (US$575 million).
CrownRock Offloads Oxy Shares Two Weeks After Closing $12B Deal
2024-08-15 - Underwriters of the offering agreed to purchase CrownRock’s Occidental stock at $58.15 per share, which will result in approximately $1.719 billion in proceeds before expenses.
ISS, Glass Lewis Push Crescent, SilverBow Shareholders to Vote for Merger
2024-07-19 - Proxy Advisory firms Institutional Shareholder Services and Glass Lewis also recommend that Crescent Energy shareholders vote for the approval of the issuance of shares on Crescent Class A common stock.
Archrock Offers $500 Million in Secure Notes for TOPS Deal
2024-08-12 - Archrock is raising debt and selling equity to pay for its $983 million acquisition of Total Operations and Productions Services.
Talos Ups Buybacks, Pays Down Debt Post $1.29B QuarterNorth Deal
2024-07-22 - Talos Energy said it repaid $325 million in debt since closing its $1.29 billion cash-and-stock acquisition of E&P QuarterNorth in March.