BP, Royal Dutch Shell, Exxon Mobil, ConocoPhillips and Cenovus Energy

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Chicago, IL – December 15, 2021 – Zacks.com announces the list of stocks featured on the Analyst Blog. Every day, Zacks Equity Research analysts discuss the latest news and events affecting stocks and financial markets. Stocks recently featured on the blog include: BP plc BP, Royal Dutch Shell plc (RDS.A), Exxon Mobil Corporation XOM, ConocoPhillips COP and Cenovus Energy Inc. CVE.

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Here are the highlights from Tuesday’s analyst blog:

Oil & Gas Stock Roundup: BP, Shell & More

It was a week in which oil prices rose again above $ 70, but natural gas futures registered a further decline.

London-based oil major BP agreed to contract US electric vehicle charging provider Amply Power, why continental rival Royal Dutch Shell announced the discovery of hydrocarbons in the deep waters of the Gulf of Mexico. News related to ExxonMobil, ConocoPhillips Y Cenovus energy it also got to the best stories.

Overall, it was a mixed seven-day period for the industry. West Texas Intermediate (WTI) crude futures rose 8.2% to close at $ 71.67 per barrel, but natural gas prices lost about 5% to end at $ 3.925 per million British thermal units (MMBtu ). In particular, the oil market reversed its decline of the previous six weeks.

Going back to the week ending December 10, oil prices rebounded as fears of a slowdown in the recovery in demand for the Omicron variant subsided and the strain is likely less deadly than expected as vaccines are available. they could be effective in neutralizing it.

Meanwhile, natural gas posted another weekly loss, hurt by weather forecasts indicating above-normal temperatures for most of the country in the coming days.

Summary of the most important stories of the week

one. BP announced that it acquired Amply Power for an undisclosed amount as part of plans to help the world achieve net zero emissions by 2050. The transaction represents the British energy giant’s first major foray into the electric vehicle (“EV” charging space). ) in the U.S. States, one of the largest automotive markets in the world.

Amply Power is a provider of electric vehicle charging and power infrastructure for fleets, operating trucks, school and transit buses, vans and light vehicles. Under the terms of the agreement, Amply Power will continue to operate independently as part of BP’s business portfolio.

BP plans to accelerate electrification in the fleet segment, which is crucial to reducing emissions from the transportation sector. In 2019, emissions from the transportation sector accounted for nearly 29% of total US greenhouse gas emissions, making it the largest contributor to greenhouse gas emissions in the United States. .

2. A subsidiary of Royal Dutch Shell it recently made a major oil discovery at the Blacktip North prospect in block 336 of the Alaminos Canyon in the deep waters of the US Gulf of Mexico (GoM). In multiple stages, Blacktip North Well found more than 300 feet (91 meters) of net oil production and an assessment is underway to determine further development options.

Blacktip North is run by Shell, with an 89.49% stake. It is located about 30 miles northeast of the Whale discovery, 4.5 miles northeast of the recently revised Blacktip discovery, and 42 miles of the Perdido host. The discovery well was drilled to a water depth of 8,443 meters by Transocean’s Deepwater Poseidon ultra-deepwater drillship.

Shell’s Deepwater Executive Vice President Paul Goodfellow believes that Blacktip North’s potential is the latest example of fresh re discovery in Shell’s lucrative corridors. The Lost Corridor, for example, is at the center of value creation in the Gulf of Mexico and represents an opportunity to use the existing infrastructure of Europe’s largest oil company to unlock the full value potential of its finds. (Shell hits oil at the Blacktip North prospect in the Gulf of Mexico)

3 ExxonMobil announced plans to achieve zero net emissions from assets operated in the Permian Basin by 2030.

Energy companies have been under immense pressure due to the growing urgency from investors and environmentalists to curb climate change. ExxonMobil’s latest initiative is part of a company-wide effort to reduce the intensity of upstream greenhouse gas emissions by 40-50% by 2030 from 2016 levels. The measure will expand plans for XOM emissions reduction for unconventional operations in New Mexico and Texas.

The US energy company intends to achieve its net zero goals by electrifying operations, allocating more investments in methane detection and mitigation technology, eliminating routine gas flaring, and upgrading equipment. XOM also plans to use emissions offset technology, including nature-based solutions. (ExxonMobil targets zero net emissions for the Permian operation)

Four. ConocoPhillips announced a preliminary capital budget for 2022 following the recent acquisition of the Permian Basin assets. Next year, the Zacks Rank # 1 (Strong Buy) upstream biggie expects company-wide capex of $ 7.2 billion, which includes $ 700 million associated with the acquisition of Permian assets. The capital budget increased from $ 5.3 billion expected for 2021.

You can see Today’s full list of Zacks # 1 rank stocks here.

Approximately 60% of the total budget will go to the 48 Netherlands for short-cycle projects on the high-quality unconventional asset base of ConocoPhillips. The remainder will go to medium and long-cycle projects in the various COP Alaska and international regions. The planned capital involves $ 200 million for emission reduction projects at the company’s global operations and investments in multiple low-carbon technologies to address end-use emissions.

In 2022, ConocoPhillips expects to produce an average of 1.8 million barrels of oil equivalent per day (boe / d) compared to the 1.5 million boe / d forecast for this year. Estimated production includes around 200,000 boe / d expected from the Permian transaction. (2022 ConocoPhillips States Preliminary Capital Budget)

5. Cenovus energy has provided a glimpse of its capital budget for 2022. For next year, Cenovus Energy has established a guideline for capital spending in the range of $ 2.6 billion to $ 3 billion. This suggests an improvement over this year’s capex guidance of $ 2.3 billion to $ 2.7 billion, as reported by CVE.

Of the total capital budget for 2022, Cenovus Energy has allocated between $ 1.7 billion and $ 2 billion for upstream operations. Upstream, CVE will likely invest between $ 1.35 billion and $ 1.6 billion in oil sand operations.

With higher capex, Cenovus Energy expects its production to improve year-over-year in 2022. From upstream operations, the company expects an average production in the range of 780 thousand barrels of oil equivalent (Mboe) to 820 Mboe, which suggests a 4% improvement. from this year’s production guide from 750 Mboe to 790 Mboe. (Cenovus Guidelines for Production and Capital Expenditure in 2022)

Price performance

Energy Select’s sector SPDR, a popular way to track energy companies, rose 3.8% last week. In the last six months, the sector tracker has increased by 3.4%.

What’s next in the world of energy?

As the outlook for global oil consumption strengthens amid tighter fundamentals, market participants will closely follow the periodicals for signs that can further validate the bullish momentum. In this context, the US government’s oil and natural gas statistics, one of the few robust indicators that appear regularly, will be on the radar of energy traders.

Data on rig count from oilfield services company Baker Hughes, which is an indicator of trends in US crude production, is closely watched. News related to vaccine approval / implementation / distribution against the coronavirus will be of utmost importance. Last but not least, investors will be on the lookout for the potential impact of demand for the Omicron variant.

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Past performance is not a guarantee of future results. Inherent in any investment is the potential for loss. This material is provided for informational purposes only and nothing contained herein constitutes legal, tax, accounting, or investment advice, or a recommendation to buy, sell, or hold a security. No recommendation or advice is given as to whether any investment is suitable for a particular investor. It should not be assumed that investments in identified and described securities, companies, sectors or markets were or will be profitable. All information is current as of the date of this document and is subject to change without prior notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making, or asset management activities of any value. These returns come from hypothetical portfolios consisting of Zacks = 1 rank stocks that were rebalanced monthly with no transaction costs. These are not the returns from actual portfolios of stocks. The S&P 500 is an unmanaged index. Please visit https://www.zacks.com/performance for information on the performance figures shown in this press release.

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