Oil & Gas Stock Roundup: LNG's Project Milestone, VRN's Merger in Focus

It was a week when oil prices logged their first gain after seven straight declines while natural gas futures hit a speedbump.The headlines revolved around natural gas exporter Cheniere Energy’s LNG substantial progress at its Corpus Christi expansion project and Canadian oil producer Veren’s VRN C$15 billion agreement to combine with Whitecap Resources. Developments associated with ExxonMobil XOM, Archrock AROC and APA Corporation APA also grabbed attention.Overall, it was a mixed seven-day period for the sector. West Texas Intermediate (WTI) crude futures edged up around 0.2% to close at $67.18 per barrel, but natural gas prices fell some 6.7% to end at $4.104 per million British thermal units (MMBtu).Crude price recovered some lost ground on rising gasoline demand and a weaker U.S. dollar. Meanwhile, the dramatic rise in natural gas prices came to a halt on expectations that fewer people would use the fuel to heat their homes due to increasing temperatures.Recap of the Week’s Most Important Stories1. Cheniere Energy, a leader in liquefied natural gas (“LNG”) production and export, announced a significant achievement in the energy sector with the substantial completion of Train 1 at the Corpus Christi Stage 3 (CCL Stage 3) Liquefaction Project. On March 16, 2025, Cheniere confirmed the successful commissioning of the first liquefaction train, marking a key moment in its ongoing efforts to meet the growing global demand for LNG.This breakthrough sets the stage for Houston, TX-based oil and gas storage and transportation company to begin recording financial results from LNG sales generated by Train 1, further consolidating its position as a major player in the industry.The completion of the first liquefaction train at CCL Stage 3 is a major landmark for the Corpus Christi LNG export facility in Texas. This is especially impressive, as it was completed ahead of schedule and within budget, showcasing the energy infrastructure company’s strong track record of managing projects efficiently. With Train 1 now operational, the company is one step closer to increasing its export capacity and helping improve global energy security. (Cheniere Reaches Substantial Completion of Train 1 at CCL Stage 3)2. Veren and Whitecap Resources have announced a transformative C$15 billion merger, creating Canada’s leading light oil and condensate producer with significant assets in Alberta’s Montney and Duvernay formations. The combined entity will hold the largest land position in Alberta Montney and Duvernay and rank as the seventh-largest producer in the Western Canadian Sedimentary Basin.The deal will require the necessary approval of the shareholders of both companies and will also need court and regulatory approvals before closing. The transaction, expected to close by May 30, 2025, promises enhanced shareholder value, operational synergies and a strengthened balance sheet.The agreement states that the transaction is inclusive of net debt and for each Veren common share held, Veren shareholders will receive 1.05 common shares of Whitecap. At the close of the transaction, Whitecap shareholders will own about 48% and Veren shareholders will own about 52% of the combined common shares outstanding. (Veren and Whitecap Merger to Create a C$15B Energy Powerhouse)3. ExxonMobil has secured a long-term liquefied natural gas (LNG) supply deal with Canadian natural gas producer ARC Resources, marking its first major LNG offtake position on Canada’s Pacific Coast. The agreement, made through ExxonMobil LNG Asia Pacific (EMLAP), will see the U.S. oil major purchasing all of ARC’s LNG supply from the Cedar LNG project in Kitimat, British Columbia, once it begins commercial operations in late 2028.Under the agreement, ExxonMobil will offtake around 1.5 million tons per annum (mtpa) of LNG from Cedar LNG, a floating LNG (FLNG) project co-developed by the Haisla Nation and Pembina Pipeline Corporation. This deal is a key step in ARC’s strategy to diversify its sales and capture global LNG pricing, with CEO Terry Anderson highlighting that it will link 25% of ARC’s future gas production to international markets.ExxonMobil’s vice president of Global LNG Marketing, Andrew Barry, emphasized the strategic advantage of this agreement, stating that it provides ExxonMobil with direct access to Asian LNG buyers via Canada’s Pacific Coast, an increasingly competitive supply route. (ExxonMobil Taps Canada's Cedar LNG to Boost Asian Exports)4. Archrock has announced a definitive agreement to acquire Natural Gas Compression Systems (NGCS) in a $357 million cash and stock transaction. This acquisition strengthens the Zacks Rank #1 (Strong Buy) company's position as a leading provider of natural gas compression services in the United States.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Archrock believes that adding NGCS’ large-horsepower and electric compression assets will expand their customer relationship amid strong demand for natural gas and compression. The acquisition will not only strengthen its footprint in the Permian Basin but will also provide it with an opportunity to align its resources with some profitable and high-demand market segments. The operations and capabilities of NGCS and Archrock are highly complementary and their customers and employees are expected to benefit from the combined scale, experience and financial strength.The transaction, unanimously approved by Archrock’s board of directors, is set to be closed in the second quarter of 2025, subject to regulatory approvals. Archrock will finance the $298 million cash portion with the available capacity under its ABL credit facility and issue up to 2.312 million new Archrock shares to the sellers to complete the deal. (Archrock Expands its Compression Capacity With $357M NGCS Acquisition)5.  APA Corporation, a U.S.-based independent exploration and production firm, along with its partners, Lagniappe Alaska, LLC and Oil Search (Alaska), LLC (a subsidiary of Santos Limited), recently announced the preliminary results of the Sockeye-2 exploratory well.Sockeye-2 is the second successful exploratory well drilled by the joint venture on 325,411-acre state land. It demonstrates the potential of the region and provides the partnership with an exciting opportunity in an active area of the North Slope with significant existing infrastructure.Drilled to a depth of 10,500 feet, the project’s second exploratory well encountered a high-quality reservoir with approximately 25 feet of net oil pay in a Paleocene-aged sand formation. The porosity of the field averaged 20%, which is believed to be better than expected compared to regional field analogs in the Brookian play. The permeability of the region is yet to be confirmed via a planned flow test. (APA's North Slope Prospects Strengthened by Sockeye-2 Discovery)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             +2.7%             -0.5%CVX              +0.5%             +13.1%COP              +9.2%            -8.4%OXY              -1.5%             -7.7%SLB               -0.6%             -3.9%RIG                +0.1%            -30.8%VLO               +1.8%            -3.5%MPC              +2.6%            -10.1%With oil moving up for the week, stocks were mostly northbound. The Energy Select Sector SPDR — a popular way to track energy companies — rose 2.7% last week. But over the past six months, the sector tracker has gone up 4.2%.What’s Next in the Energy World?Market participants will 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 Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want 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 Exxon Mobil Corporation (XOM): Free Stock Analysis Report APA Corporation (APA): Free Stock Analysis Report Cheniere Energy, Inc. (LNG): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis Report Veren Inc. (VRN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks