Cheniere's FERC Nod & APA's Partnership Lead Oil & Gas Stock Roundup
Werte in diesem Artikel
It was a week when oil prices dropped while natural gas futures continued the northward journey.The headlines revolved around gas exporter Cheniere Energy’s LNG receipt of regulatory approval for its Corpus Christi expansion project and upstream operator APA Corporation’s APA technological collaboration with software player Palantir Technologies. Developments associated with EQT Corporation EQT, ExxonMobil XOM and BP plc BP also grabbed attention.Overall, it was a mixed seven-day period for the sector. West Texas Intermediate (WTI) crude futures decreased around 4.5% to close at $68 per barrel, but natural gas prices moved up 2.3% to end at $3.363 per million British thermal units (MMBtu).The crude price decline resulted from easing concerns about a broader conflict in the Middle East. The drop was also fueled by growing speculation over OPEC's upcoming production decisions.Meanwhile, natural gas settled with a gain due to expectations of more people using the fuel to heat their homes on account of colder weather.Recap of the Week’s Most Important Stories1. Cheniere Energy, a Houston-based company specializing in oil and gas storage and transportation, recently secured a key regulatory approval to advance its Corpus Christi Stage 3 liquefaction expansion project. The Federal Energy Regulatory Commission (“FERC”) has given the green light for Cheniere to start introducing natural gas into the project’s fuel and hot oil systems. This approval marks an important step toward Cheniere's goal of beginning initial liquefied natural gas (“LNG”) production from Stage 3 by the end of 2024.The Corpus Christi Stage 3 project in Texas is a significant investment, involving the construction of seven new gas-processing units. When completed, this expansion will increase Cheniere’s LNG production capacity by about 10 million metric tons per year. This boost in production will allow Cheniere to better meet the rising global demand for LNG, especially as nations shift toward cleaner energy options.FERC’s approval also highlights the role of natural gas in today’s energy mix. As a cleaner alternative to other fossil fuels, natural gas is increasingly seen as a bridge to a future with more renewable energy sources. With this expansion, this energy infrastructure company should be vital in supporting the global transition to cleaner energy and helping to satisfy the world's growing energy requirements. (Cheniere Energy's Corpus Christi Expansion Gets FERC Approval)2. APA, a Houston, TX-based oil and gas exploration and production company, has expanded its partnership with Palantir Technologies. This move should deepen the Zacks Rank #3 (Hold) company’s collaboration to integrate AI-driven solutions across its extensive operations.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.This multi-year, multimillion-dollar agreement shapes a relationship that started in 2021, marking a significant leap forward in using advanced artificial intelligence (AI) for optimizing production, operational planning and supply-chain management in the energy industry. The new deal signifies a renewed commitment to leverage cutting-edge AI capabilities to transform how oil and gas companies manage and analyze their vast, complex data sets.APA's expanded agreement with PLTR is a testament to the transformative power of AI in the oil and gas sector. By integrating PLTR’s AIP software, APA aims to refine its global operations, bringing increased visibility and efficiency across every stage of the company’s production lifecycle. This move shows a strategic effort to unlock new levels of performance, reduce costs and drive sustainability in a market increasingly reliant on technological advancements. (APA & Palantir Collaborate to Optimize Oil and Gas Production With AI)3. Natural gas operator EQT has announced a $3.5 billion midstream joint venture with funds managed by Blackstone Credit & Insurance (“BXCI”). The partnership involves EQT’s ownership interests in several high-quality, contracted midstream assets, including Mountain Valley Pipeline, LLC (Series A), FERC-regulated transmission and storage assets and the Hammerhead Pipeline.Under the agreement, BXCI will acquire a non-controlling common equity stake in the joint venture (JV). EQT will retain rights to future growth projects, including the Mountain Valley Pipeline expansion and the MVP Southgate project, thereby maintaining its strategic growth trajectory. EQT plans to deploy the $3.5 billion cash proceeds to reduce its debt. The company aims to pay down its term loan and revolving credit facility as well as redeem senior notes. Coupled with the sale of its non-operated assets in Northeast Pennsylvania, EQT projects to exit 2024 with approximately $9 billion in net debt, strengthening its financial position significantly. (EQT Forms $3.5B Midstream JV With Blackstone to Strengthen Assets)4. Energy behemoth ExxonMobil is under scrutiny as the FBI investigates a consultant linked to the company for alleged involvement in a hack-and-leak operation targeting environmental activists, per a Reuters report. The alleged scheme, which began in 2015, involved mercenary hackers breaching email accounts of environmentalists, whose data were later leaked to disrupt lawsuits against ExxonMobil and other energy companies.According to the report, the hacking targets were compiled by the DCI Group, a lobbying firm working for ExxonMobil at that time. The firm allegedly provided the names to an Israeli private investigator, Amit Forlit, who outsourced the hacking to other operatives. Leaked materials were reportedly shared with ExxonMobil before being disseminated to the media.The hacking operation, code-named "Fox Hunt," reportedly interfered with environmentalists’ legal strategies, including lawsuits modeled after the tobacco industry's settlements in the 1990s. These suits accuse ExxonMobil of misleading the public about climate change risks. Leaked documents continue to influence litigation, with some being used as recently as April 2024 in a Supreme Court filing by an industry trade group. (ExxonMobil and Lobbyist Face Scrutiny Over Cyber Espionage)5. BP’s subsidiary — BP Trinidad and Tobago (“BPTT”) — is making significant strides toward achieving its goal of first gas from the Cypre subsea gas development project by 2025. Located off the southeast coast of Trinidad and Tobago, the project represents BPTT’s third subsea development in the region and is poised to enhance the country’s natural gas production capacity.After securing the final investment decision in 2022, the UK-based energy company collaborated with Subsea Integration Alliance and Aquaterra Energy to advance the Cypre project. Although drilling was delayed, the first of the seven wells was completed in February 2024. Currently, Subsea7's Seven Seas pipe-laying vessel is engaged in critical "transpooling" activities to connect the subsea infrastructure to BPTT's Juniper platform, leveraging pre-existing infrastructure to expedite operations. The Cypre project stands out for its operational efficiency and sustainability. Utilizing Juniper’s existing power infrastructure avoids additional power generation and reduces operating emissions. Upon completion, the development is expected to deliver 250-300 million standard cubic feet of gas per day, reinforcing BPTT’s role in addressing the country’s declining gas production. (BP Advances Cypre Gas Project in Trinidad, First Gas Set for 2025)Price PerformanceThe following table shows the price movement of some major oil and gas players over the past week and during the last six months.Company Last Week Last 6 MonthsXOM -3.2% +4.1%CVX -0.8% +4.5%COP -3.1% -5.5%OXY -2.6% -15.8%SLB -0.7% +1%RIG -1.6% -18.7%VLO -1.3% -10.8%MPC -1.5% -10.4%With oil moving down for the week, stocks were mostly southbound. The Energy Select Sector SPDR — a popular way to track energy companies — fell 1.8% last week. However, the sector tracker has increased 5.1% over the past six months.What’s Next in the Energy World?Market participants will also keep a close eye on regular data releases to gauge the direction of commodities. U.S. government statistics on oil and natural gas, one of the most reliable indicators, will be a key focus for energy traders. Fuel demand and stock drawdowns in the coming weeks will shape commodity price trends. Additionally, Baker Hughes' rig count data, a critical indicator of U.S. crude and natural gas production trends, is also closely monitored.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report APA Corporation (APA): Free Stock Analysis Report EQT Corporation (EQT): Free Stock Analysis Report Cheniere Energy, Inc. (LNG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
Quelle: Zacks
