Archive for Energy – Page 2

Crude Stores Rise For 4th Consecutive Week

By Orbex

Crude Stores Rise Again

Crude prices remained buoyant this week despite the latest industry reporting showing a further build in US crude stores.

The Energy Information Administration’s latest report covering the week ending  4th October declared that US crude levels rose by 2.9 million barrels. This figure was well above analyst forecasts of a 1.4 million barrel increase. Crude stores at the Cushing delivery hub in Oklahoma rose by 914k barrels.

This latest increase in US crude stores means that the total inventory level is now sitting at 425.6 million barrels. This is the five-year average for this time of year. However, US crude production was up again last week, hitting fresh highs of 12.6 million barrels per day.

Looking further at the breakdown of the data, the report showed that refinery crude runs were down by 361k barrels per day across the week as refinery utilization rates dropped by 0.7%. The rise in inventory levels came despite a drop in net US crude imports which fell by 601k barrels per day over the week.

Gasoline Inventories Fall

However, the data was not all bearish. The report showed that US gasoline inventories were down by 1.2 million barrels.

This figure was far worse than the 257k barrel drop forecast by analysts. Distillate stockpiles, which include diesel and heating oil, were also down by 3.9 million barrels. This result, again, far outstripped expectations of a 257k barrel decrease.

The data also showed that the total number of products supplied over the last four-weeks averaged 20.9 million barrels per day, marking an increase of  3% from the same period last year.

EIA Projects Higher US Production

This latest data comes on the back of the EIA releasing its latest short term energy outlook on Tuesday.

In its latest release, the EIA now projects that US crude oil production will average 12.3 million barrels per day over 2019, marking an upward revision of 1.3 million barrels from the 2018 level.

The report also projects a further 0.9 million barrels per day increase over 2020. This would take production to an annual average of 13.2 million b/d

Disruptions Seen Fading

Despite the group’s new forecasts, the EIA reported that domestic production averaged 11.8 million barrels per day in July. This was down 0.3 million barrels per day in June. But, this was attributed to disruptions in the Gulf of Mexico due to Hurricane Barry.

However, with production in the region recovering and as new pipes in the Permian Basin come online, the EIA is forecasting increased production over the rest of the year.

Trade Talk Impact

Despite the report which is ultimately bearish for crude prices, oil is remaining bid.

Traders are looking positively at the next round of US-China trade talks due to start today.

Hopes of an interim deal are keeping downside offset for now. However, traders should be wary of the strong two-way risk here which could see crude crash lower again if talks break down.

Technical Perspective

Crude recently tested the 51.28 level support on the declines seen last week. This level is holding for now, keeping price within the range between 51.28 and resistance at the 60.09 level where price has mainly been contained over the last four months.

For now, the correction off the 51.28 level remains shallow and the preference is for a further break down lower. However, any positive headlines on the trade talks could fuel sudden upside.

By Orbex

 

Nordic American Benefiting from Exceptionally Strong Tanker Market

The Energy Report

Source: Streetwise Reports   10/08/2019

Shares of Nordic American Tankers are trading 16.5% higher today setting a 52-week intraday high stock price as the company reported great demand for its Suezmax oil tankers.

Hamilton, Bermuda-headquartered international tanker company Nordic American Tankers Ltd. (NAT:NYSE) announced in a letter to shareholders and investors that the anticipated upswing in the tanker market has come to fruition. The release referenced that just two weeks ago the company advised that there would be strong market improvement for the firm’s Suezmax tankers.

The company wrote in the release, “We have for a long time informed you of this anticipated upswing in the tanker market…Seeing is believing and if anyone had doubts, last week, the international shipbroking firm of Clarkson Platou Research reported the largest week-on-week increase in the history of their freight index. From Thursday to Friday last week, reported Suezmax rates jumped 60% on the day and 400% on the month!”

Nordic American states in the report that “its uniform fleet of 23 Suezmax tankers have 21 units trading in the open spot market, ready to benefit from strengthening freights.” The firm indicates that presently “the Suezmax spot market is reported to about $68,000/day, and rising and the NAT operating costs are about $8,000/day per ship.”

The company noted that “a seasonal upturn was already in the making. However, the additional combination of increased demand from refineries around the world ramping up their production to supply low sulphur fuels for 2020 and reduced supply of new vessels are important structural factors.” Nordic American also advised that the temporary uncertainty around the Saudi Arabian oil production has created additional demand pressure. The company believes that the market bottomed out during 2018 and the industry will see further improvement going forward.

The company indicated that Q3/19 earnings for the period ending September 30, 2019, will be released on November 25, 2019, prior to the market open on that day. The company advised that Q3/19 results will not be much different from Q2/19 results.

The company remains excited about the prospects for the rest of fiscal year 2019 and further down the road. The company believes that it will remain in a very strong position with 21 of its 23 Suezmaxes in the spot market. This positioning will allow NAT to continue to directly benefit from the exceptional run up in Suezmax freight rates.

Nordic American Tankers is an international tanker company, which was incorporated in Hamilton, Bermuda in 1995. The company has an active trading fleet of 23 vessels, of which 21 are presently deployed in the spot market. The vessels in the company’s fleet are homogenous and interchangeable and the Suezmax tankers each can carry over 1 million barrels of oil.

Nordic American Tankers began the day with a market capitalization of about $439.2 million and approximately 142.6 million shares outstanding . The stock trades in a 52-week price range of $1.66-3.60/share. This morning, NAT shares opened at $3.18 (+$0.10, +3.25%) over yesterday’s $3.08 closing price. The stock has traded today between $3.07 and $3.60/share, setting a 52-week high intraday price and at present is trading at $3.59 (+0.51, 16.56%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: NAT:NYSE,
)

Is Bill Gates Right On Energy Investing?

By OilPrice.com

Not long ago, Bill Gates offered some investment advice. That, in itself, constitutes news, but the content and the reactions make up a more interesting story.

Gates told the Financial Times, in essence, that investors who want to do something about climate change should stop making up lists of companies they do not want in their portfolios based on involvement in fossil fuel production or use. They should, instead, invest in disruptive technologies that will provide actual solutions to climate change.

Environmental-social-governance (ESG) investors have pushed back on this position partly on moral grounds. But there are economic reasons as well. Their withdrawal of capital, and demand that banks not finance fossil fuel projects limits the pool of capital available to fossil fuel companies, which raises their cost of capital. And their insistence that fossil fuel companies more explicitly lay out risks to shareholders sets on notice fiduciary investors, who do not want to have to explain, afterwards why they made an investment in disregard of warnings. But the actions of ESG investors are essentially negative, and possibly of limited effectiveness, given the huge cash flows that oil companies generate. The oil companies can continue to do what they always did. And the capital market boycotts do not create solutions.

Okay, easy advice for Bill Gates to give, because he and his fellow billionaires have the money and contacts to acquire interests in those disruptive technology companies before they go public. The rest of us don’t. We will, as consumers, pay for the new technologies that will make the original investors richer.

Some energy experts have said, don’t worry, the big energy firms will make those investments, and they have the money to do it. In truth, some giant energy firms have looked into doing so. Royal Dutch Shell, for instance, set up a team of executives to figure out how. They immediately ran into the problem. Shell is the biggest dividend payer in the world. It wants to maintain that dividend of $16 billion per year. The bulk of cash flow comes from the oil and gas business. It has invested in natural gas (lower carbon content than oil or coal) in windmills, in hydrogen energy, but all this green investing, no matter the prospects, cannot generate enough cash to pay that dividend. Shell will not make the Schumpeterian move, to dump the old business before it is too late, and go whole hog into the new. Shell cannot afford to be disruptive. Somebody else will have to do it. In that respect, Bill Gates is right.

Presumably the market will (eventually) furnish the capital needed to decarbonize the economy, but, so far, venture capitalists seem more interested in disrupting the taxi, restaurant, scooters and office space industry. They pour billions into those ventures. Meanwhile, the climate continues to warm.

We would suggest an alternative to waiting for the Silicon Valley crowd to come to our salvation. One that takes into account the need to secure public backing for the required social and economic changes. We believe that the nation needs one or several publicly sponsored energy and climate funds, similar in ways to Comsat, a government sponsored but privately financed and managed corporation that first launched our communications satellites. Anyone could buy a share in the new telecommunications technology. Why not something similar for climate change? Maybe allow payroll deductions for small investors or state-sponsored funds for local projects. Climate change mitigation efforts will succeed only if the public buys into the concept. And giving the public a chance to buy in, literally, might hasten the process.

So back to Bill Gates’ advice. Great idea. And, as the old saying goes, “What is sauce for the goose is sauce for the gander.” So why can’t the rest of us invest along with Bill?

Link to article: https://oilprice.com/Energy/Energy-General/Is-Bill-Gates-Right-On-Energy-Investing.html

By Leonard Hyman and William Tilles

 

 

Analyst: Valero Energy’s Q3/19 Numbers Trimmed, Q4/19 Outlook Improved

The Energy Report

Source: Streetwise Reports   10/03/2019

In a research report, Raymond James revisits and revises its Q3/19 projections on this company.

In an Oct. 1 note, Raymond James analyst Justin Jenkins reported that Valero Energy Corp.’s (VLO:NYSE) adherence to a disciplined strategy continues to drive strong performance in this challenging oil and gas environment.

Specifically, the manufacturer and marketer of transportation fuels and petrochemical products has been “improving returns in refining while growing in the higher value midstream and renewable segments that also support refining ops,” Jenkins pointed out. It also continues to maintain a strong balance sheet and return cash to shareholders.

However, Valero is facing various market headwinds, and as such, Raymond James slightly lowered its Q3/19 expectations for the company, Jenkins indicated.

For one, it reduced its Q3/19 earnings per share estimate to $1.30 from $1.50.

Two, for Valero’s Refining segment, Raymond James lowered its Q3/19 gross margin forecast to $9.69 per barrel from $9.79 in light of modest capture difficulty in the Midcontinental and North Atlantic regions.

Three, due to the expectation that higher feedstock costs will negatively impact margins, Raymond James now predicts a Q3/19 operating loss in the Ethanol segment of $28 million, the biggest change to its Valero model. This new figure compares to an $8 million revenue win in Q2/19.

On a positive note, Jenkins concluded that “H2/19 has thus far shaped up better than many had feared, and we continue to expect IMO 2020 to prove to be a solid tailwind for the group, with Valero a particular winner.”

Accordingly, Raymond James has left its Q4/19 and 2020 projections on Valero the same. Further, the financial services firm maintained its Outperform rating and $95 per share target price on the energy firm, whose stock is trading now at around $82.66 per share.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Raymond James, Valero Energy Corp., October 1, 2019

ANALYST INFORMATION

Analyst Holdings and Compensation: Equity analysts and their staffs at Raymond James are compensated based on a salary and bonus system. Several factors enter into the bonus determination including quality and performance of research product, the analyst’s success in rating stocks versus an industry index, and support effectiveness to trading and the retail and institutional sales forces. Other factors may include but are not limited to: overall ratings from internal (other than investment banking) or external parties and the general productivity and revenue generated in covered stocks.

The analyst Justin Jenkins, primarily responsible for the preparation of this research report, attest to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers and that no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views in this research report. In addition, said analyst(s) has not received compensation from any subject company in the last 12 months.

RAYMOND JAMES RELATIONSHIP DISCLOSURES
Certain affiliates of the RJ Group expect to receive or intend to seek compensation for investment banking services from all companies under research coverage within the next three months.

Raymond James & Associates, Inc. makes a market in the shares of Valero Energy Corporation.

Raymond James & Associates received non-investment banking securities-related compensation from Valero Energy Corporation within the past 12 months.

 

Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available here.

( Companies Mentioned: VLO:NYSE,
)

Contango to Acquire White Star’s Producing Oil & Gas Properties

The Energy Report

Source: Streetwise Reports   10/03/2019

The deal and the assets are described in a ROTH Capital Partners report.

ROTH Capital Partners analyst John White reported that Contango Oil & Gas Co. (MCF:NYSE.MKT) agreed to acquire the assets of White Star Petroleum for $132.5 million.

The assets include production of 15,000 barrels of oil equivalent per day (15,000 boe/d) and 20 million barrels of oil equivalent of Proven Developed Producing reserves and 315,000 net acres in the STACK play, the general Anadarko Basin and the Cherokee Basin, in Oklahoma. The amount of total reserves was not disclosed.

White highlighted that this is a “very large acquisition” by Contango. Adding production from the White Star assets to Contango’s existing production (5,482 boe/d) would result in estimated total production of about 21,800 boe/d.

It’s unknown whether the oil and gas properties Contango is acquiring are nonconventional or conventional or a combination thereof, White noted but added that ROTH suspects all are conventional and mature. “Compared to predominately shale play metrics, the properties are being acquired on a very inexpensive valuation,” he added. “Our coverage of predominately shale play companies recently traded at a median flowing boe/d of $36,084.”

ROTH has a $1.45 per share target price on Contango, whose current share price is around $2.61. “Although the shares are at a level which fits ROTH’s Sell rating definition, we rate the shares Neutral while we await more details on the recently announced acquisition,” White explained.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from ROTH Capital Partners, Contango Oil & Gas Company, Flash Note, September 27, 2019

Regulation Analyst Certification (“Reg AC”): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

ROTH makes a market in shares of Contango Oil & Gas Company and as such, buys and sells from customers on a principal basis.

Shares of Contango Oil & Gas Company may be subject to the Securities and Exchange Commission’s Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.

( Companies Mentioned: MCF:NYSE.MKT,
)

WTI Crude Oil Speculators strongly pared their bullish bets, down for 3rd week

October 5th – By CountingPips.comReceive our weekly COT Reports by Email

WTI Crude Oil Non-Commercial Speculator Positions:

Large energy speculators sharply pulled back on their bullish net positions in the WTI Crude Oil futures markets this week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.

The non-commercial futures contracts of WTI Crude Oil futures, traded by large speculators and hedge funds, totaled a net position of 389,319 contracts in the data reported through Tuesday October 1st. This was a weekly decline of -34,843 net contracts (by over 8.2 percent) from the previous week which had a total of 424,162 net contracts.

The week’s net position was the result of the gross bullish position (longs) dropping by -13,664 contracts (to a weekly total of 514,829 contracts) while the gross bearish position (shorts) increased by 21,179 contracts for the week (to a total of 125,510 contracts).

WTI crude speculators decreased their bullish bets for a third straight week and by the largest one-week amount since June 11th (when bets fell by -48,513 contracts). The decline this week brought the overall bullish level back under the +400,000 net contract level for the first time in the past four weeks. Despite the recent slide, the net position has been remarkably steady as bets have fluctuated between approximately +375,000 and +430,000 net contracts over the past fifteen weeks.

WTI Crude Oil Commercial Positions:

The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -401,977 contracts on the week. This was a weekly uptick of 38,277 contracts from the total net of -440,254 contracts reported the previous week.

WTI Crude Oil Futures:

Over the same weekly reporting time-frame, from Tuesday to Tuesday, the WTI Crude Oil Futures (Front Month) closed at approximately $53.62 which was a fall of $-3.67 from the previous close of $57.29, according to unofficial market data.

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) as well as the commercial traders (hedgers & traders for business purposes) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators).

Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).

Article By CountingPips.comReceive our weekly COT Reports by Email

 

Oil Crashes On Inventories Gain

By Orbex

Inventories Rise Again

Crude prices were heavily lower on Wednesday as the latest report from the Energy Information Administration showed a further rise in US crude stores. The reaction to the news was particularly heavy. This is because the American Petroleum Institute reported a 6 million barrel drawdown only the day before.

Despite the API reading, the EIA report showed that in the week ending  September 27th, US crude stores were higher by 3.1 million barrels. This level was almost twice the forecasted 1.6 million barrel increase the market was looking for.

Refinery Runs Drop

The main driver behind the large increase in US crude inventory levels was a much lower level of refinery runs which fell by 496k barrels per day. This decrease saw refinery utilization rates dropping by 3.4% on the week.

Gasoline Stores Down

However, the report was not all bullish. The EIA showed that US gasoline inventory levels fell by 288k barrels over the week. This was in stark contrast to the forecasted 449k barrel gain the market was looking for. Similarly, distillate inventories, which include heating and diesel oil, were lower by 2.4 million barrels. This outstripped market expectations for a 1.8 million barrel drop.

Elsewhere, the report showed that net US crude imports were higher by 29k barrels per day. Crude stores at the Cushing delivery hub in Oklahoma were lower by 216k barrels.

US Economic Concerns Adding Pressure

Crude oil prices have also been under pressure this week. This has come from renewed concerns over the health of the global economy. Following a set of miserable Eurozone manufacturing PMIs last week, US manufacturing data released this week showed the factory sector hitting a 10 year low of September. The ongoing impact of the US/China trade war is being seen across the globe. Yesterday, the UK reported that its manufacturing sector is also sitting in contractionary territory.

ARAMCO Restores Oil Output Capacity

Further bearish pressure this week came from the announcement by ARAMCO that its Saudi Arabia oil production was now back to full capacity. This is following the drone strike on the largest global processing site two weeks ago. The attack, which was attributed to Iran, wiped around 5% of global oil supply offline and caused a 20% spike higher in crude. This was its largest ever one day gain.

Technical Perspective

WTI

The technical picture in crude is looking precarious. Following the failure at the 60.39 level (which was briefly pierced on the drone-strike spike), crude prices have since reversed lower. They are trading back under the bearish trend line from year to date highs. Price is now quickly approaching key structural support at the 50.71. If we break below here, this could see a push as deep as the 42.54 level. Alternatively, if we hold above the 50.71 level, we can expect further consolidation. However, risks remain tilted to the downside in the near term.

By Orbex

 

Teekay Offshore Shares Spike 30% Higher on Brookfield Merger Agreement

The Energy Report

Source: Streetwise Reports   10/01/2019

Teekay Offshore Partners shares are trading more than 30% higher today on news that Brookfield Business Partners will be purchasing all un-owned common units of the firm for $1.55 per share.

This morning Hamilton, Bermuda based Teekay Offshore Partners L.P. (TOO:NYSE)
announced that it has entered into an agreement and plan of merger with Brookfield Business Partners L.P. (BBU:NYSE) and certain of its affiliates and institutional partners (the “Consortium”). According to the merger agreement, the Brookfield Consortium will acquire by merger all of the outstanding publicly held common units representing limited partner interests of the Partnership not already held by the Brookfield Consortium in exchange for $1.55 in cash per common unit. The cash consideration represents an increase of $0.39 (33.6%) to the $1.16 closing price per common unit on September 30, 2019. As an alternative to receiving the cash consideration, each unaffiliated unitholder will have the option to elect to receive one newly designated unlisted Class A Common Unit of the Partnership per common unit, but those units will have limited voting rights and limited transferability.

The merger is expected to close in Q4/19 subject to satisfaction of certain customary conditions. Upon the closing of the merger, the common units will cease to be publicly traded. The Partnership will continue to file certain reports with the Securities and Exchange Commission following the closing of the merger.

Teekay Offshore explains that it will deliver election materials to the unaffiliated unitholders that will include a description of the terms of the Class A Common Units and instructions for electing to receive the equity consideration. Unitholders who do not elect to receive the equity consideration prior to the election date set forth in the election materials will receive the cash consideration. Pursuant to the terms of the Merger Agreement, the Partnership’s outstanding preferred units will be unchanged and remain outstanding by virtue of the merger.

The conflicts committee, composed of non-executive, independent directors of the board of directors of the Partnership’s general partner unanimously approved the Merger Agreement and determined that the transaction contemplated thereby was advisable and in the best interests of the Partnership and the unaffiliated unitholders. The members of the Board have unanimously approved the Merger Agreement on the recommendation of the Conflicts Committee. Neither the Conflicts Committee nor the Board are “making any recommendation whether an unaffiliated unitholder should elect the unit option nor did they evaluate the terms of the equity consideration in determining whether to approve the Merger Consideration,” the company noted.

Teekay Offshore advises that it is a “leading international midstream services provider to the offshore oil production industry, primarily focused on the ownership and operation of critical infrastructure assets in offshore oil regions of the North Sea, Brazil and the East Coast of Canada. Teekay has consolidated assets of approximately $5.2 billion, comprised of 58 offshore assets, including floating production, storage and offloading units, shuttle tankers, floating storage and offtake units, long-distance towing and offshore installation vessels, and a unit for maintenance and safety.”

Brookfield Business Partners lists that it is a business services and industrials company focused on owning and operating high-quality businesses that benefit from barriers to entry and/or low production costs. The firm provides business services including construction management and contracting services; residential real estate, logistics and financial services; energy operations including oil and gas production; and industrial operations which include select manufacturing and mining operations. The firm states that it is the flagship listed business services and industrials company of Brookfield Asset Management Inc. (BAM:NYSE; BAM.A:TSX), which it indicates is a leading global alternative asset manager with more than $385 billion of assets under management.

Teekay Offshore Partners began the day with a market capitalization of about $476.4 million. The company has 410.7 million common shares (units) outstanding. The stock has a 52-week price range of $1.03-2.45/share. This morning, TOO shares opened at $1.54 (+$0.38, +32.76%) over yesterday’s $1.16 closing price. The stock has traded today between $1.53 and $1.54/share on very high volume and presently is trading at $1.53 ((+0.38, 33.04%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: TOO:NYSE,
)

Natural Gas Speculators added to their bearish bets for 1st time in 6 weeks

By CountingPips.comReceive our weekly COT Reports by Email

Natural Gas Non-Commercial Speculator Positions:

Large energy speculators slightly increased their bearish net positions in the Natural Gas futures markets last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.

The non-commercial futures contracts of Natural Gas futures, traded by large speculators and hedge funds, totaled a net position of -124,981 contracts in the data reported through Tuesday September 24th. This was a weekly change of -1,806 net contracts from the previous week which had a total of -123,175 net contracts.

The week’s net position was the result of the gross bullish position (longs) falling by -9,269 contracts (to a weekly total of 193,523 contracts) while the gross bearish position (shorts) fell by  a lesser amount of -7,463 contracts for the week (to a total of 318,504 contracts).

Natural gas speculators slightly added to their bearish bets last week following five straight weeks of declining bearish positions. Speculators have recently been shedding their bearish bets after reaching a yearly high of -212,554 contracts on August 13th.

Natural gas speculative positions have now been in bearish territory for a total of thirty-three consecutive weeks dating back to February 12th.

Natural Gas Commercial Positions:

The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of 86,054 contracts on the week. This was a weekly shortfall of -2,667 contracts from the total net of 88,721 contracts reported the previous week.

Natural Gas Futures:

Over the same weekly reporting time-frame, from Tuesday to Tuesday, the Natural Gas Futures (Front Month) closed at approximately $2.52 which was a decrease of $-0.14 from the previous close of $2.66, according to unofficial market data.

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) as well as the commercial traders (hedgers & traders for business purposes) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators).

Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).

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Canadian Energy Company Makes ‘New Oil Discovery in Thailand’

The Energy Report

Source: Streetwise Reports   09/27/2019

The drill results and next steps are reviewed in a Mackie Research Capital Corp. report.

In a Sept. 17 research note, Mackie Research Capital Corp. analyst Bill Newman reported that Pan Orient Energy Corp. (POE:TSX.V) drilled a new oil discovery in Thailand, and testing is expected to begin soon. Drilling also is to commence shortly, in 30–40 days, at Pan Orient’s Anggun-1X well in Indonesia now that the requisite construction is done.

Newman reviewed the results from the exploration well in Thailand that hit oil, L53-DD5ST1. It encountered about 15 meters (15m) of net oil pay within two separate sands, CC where it had net oil pay of 12m, and the deeper EE, where it had 3m. The new discovery is about 737m to the southwest of Pan Orient’s L53-DD oilfield.

Drilling at L53-DD5 will start once drilling, currently underway, at L53-DD6 finishes, which should be in about 14 days. “If testing proves that the DD5 discovery is commercial, it should provide an immediate production boost and set up low risk development opportunities for 2020,” commented Newman.

He added that Pan Orient has additional exploration wells to be drilled in Thailand before year-end, which also could help build momentum into next year.

As for the upcoming drilling of the Anggun-1X well, that process is expected to take about 31 days. “In the event the well is successful, Pan Orient plans to drill a follow-up appraisal well in 2020,” Newman noted.

The analyst reiterated the Buy recommendation and $3.25 per share target price that Mackie has on Pan Orient, which are due to its “strong financial position, growing production base in Thailand and high-impact exploration potential of the Anggun-1X exploration well in Indonesia.”

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Disclosures from Mackie Research, Pan Orient Energy Corp., Update, September 17, 2018

RELEVANT DISCLOSURES APPLICABLE TO COMPANIES UNDER COVERAGE
Relevant disclosures required under Rule 3400 applicable to companies under coverage discussed in this research report are available on our web site at www.mackieresearch.com.

ANALYST CERTIFICATION
Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

Mackie Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein.

( Companies Mentioned: POE:TSX.V,
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