Welcome to the MarketReader Energy Minute.

Below are AI-generated insights on moves in the energy sector, powered by MarketReader technology.

Wednesday, August 28

XLE [-0.7%]
Exxon Mobil Corporation is reportedly planning to divest conventional oil assets in the Permian Basin, potentially valued at $1 billion, as it shifts its focus to expanding shale production following its $60 billion acquisition of Pioneer Natural Resources. The assets include older wells in the Central Basin that yield consistent oil volumes. Exxon anticipates crude demand will remain above 100 million barrels per day through 2050, with concerns that oil supply could fall below 30 million barrels per day by 2030 without new investments. The company aims to produce 4.3 million barrels of oil and gas daily this year. Meanwhile, the Energy Select Sector SPDR Fund has seen contributions from its top holdings drop, with XOM down slightly in premarket trading. Oil prices rose during Asian trade due to a significant drawdown in U.S. crude oil inventories and geopolitical tensions related to recent events involving Israel and Hamas.

USO [-1.8%]
Crude oil prices have declined today, with Brent crude and West Texas Intermediate both dropping by 0.5%. This follows a previous session marked by a significant drop after three days of gains, influenced by ongoing supply concerns from the Middle East conflict and disruptions in Libyan oil production. The American Petroleum Institute reported a larger-than-expected draw of 3.4 million barrels in U.S. oil inventories for the week ending August 23. Additionally, there are concerns regarding weak demand from China, the largest oil consumer, alongside expectations that OPEC+ may increase production. Libya's Sarir oilfield has halted nearly all production due to a political standoff, although this disruption has not yet significantly impacted global supply or prices.

BOIL [-1.9%]
ProShares Ultra Bloomberg Natural Gas (BOIL) has seen a decrease since Tuesday. The U.S. Department of Energy has recently developed a highly selective catalyst for converting methane to methanol, which could significantly reduce emissions from the oil and gas sector and potentially alter natural gas demand dynamics. Concurrently, rising geopolitical tensions in the Middle East may influence energy prices, as markets respond to supply concerns amid ongoing conflicts. These developments have contributed to a slight increase in XNG/USD by 0.1%.

RYDAF | $36.00 | +2.9% | +6.6B

XOM | $116.87 | -0.7% | -3.7B

SLB | $43.76 | -2.8% | -1.8B

NFE | -4.6% | -117.3M
New Fortress Energy Inc has experienced a notable decline in its stock price, dropping significantly since Tuesday. The company is engaged in the transition to clean energy through its liquefied natural gas terminals and power generation facilities, primarily in the Americas. Despite facing substantial debt and operational challenges, there are expectations for refinancing efforts to enhance growth potential. Key risks include management's history of overpromising, delays in project timelines, and uncertainties surrounding contracts in Puerto Rico. Additionally, an upcoming power auction in Brazil could present an opportunity for increased revenue, potentially boosting EBITDA by a substantial amount. Currently, New Fortress Energy is underperforming relative to its sector peers.

TTE | -1.1% | -1.8B
TotalEnergies has been fined 48 million by the U.S. Commodity Futures Trading Commission (CFTC) for market manipulation. The regulatory body has accused the company of improper trading practices. This substantial penalty may have implications for TotalEnergies' reputation and operational integrity. The stock price has moved down by 1.1% since Tuesday, coinciding with this development.

XOM | -1.0% | -5.3B
Exxon Mobil Corporation is reportedly planning to divest conventional oil assets in the Permian Basin, valued at approximately 1 billion, to concentrate on expanding shale production following its 60 billion acquisition of Pioneer Natural Resources in May. The assets for sale consist of older wells in the Central Basin, which produce modest but consistent oil volumes. Exxon has indicated it is assessing market interest for select conventional assets in West Texas and Southeast New Mexico as part of its ongoing portfolio evaluation. Additionally, the company anticipates that crude demand will remain above 100 million barrels per day through 2050, amid concerns about potential supply shortages by 2030 without new investments.

TPL | +1.3% | +261.3M
Texas Pacific Land Corp has completed two notable acquisitions in the Permian Basin, amounting to 169 million in cash. These transactions involve approximately 4,106 net royalty acres located in Culberson County and 4,120 surface acres in Martin County, Texas. The acquisitions are anticipated to enhance the company’s asset portfolio with high-quality properties expected to yield attractive returns. The stock price has moved up by 0.7% since Tuesday, coinciding with this significant development.

EOG | -0.8% | -621.2M
Citigroup has revised its price target for EOG Resources Inc to 133 from 130 while maintaining a neutral rating. Analysts from Capital IQ report an average rating of outperform for EOG Resources, with price targets spanning from 124 to 169. EOG is scheduled to present at the Barclays CEO Energy-Power Conference on September 3, 2024, with Executive Vice President and COO Jeffrey R. Leitzell representing the company. The event will be available via live webcast, with replays accessible for up to one year post-presentation. EOG is recognized as one of the largest crude oil and natural gas exploration and production firms in the U.S., holding significant proved reserves both domestically and in Trinidad.

PBR | +0.8% | +661.1M
Helix Energy Solutions Group has secured new three-year vessel charter and service contracts with Petrobras, valued at approximately 786 million. These contracts involve the riser-based well intervention vessels Siem Helix 1 and Siem Helix 2, which are currently operating offshore Brazil. The agreements include options for an additional three years and were obtained through a competitive tender process. Since 2017, Siem Helix 2 has performed over 100 well interventions in the Santos and Campos Basins, while Siem Helix 1 completed 74 interventions between April 2017 and July 2021.

Open MarketReader to see more.

Thank you for spending a minute with us. 

If you have 2 more minutes, watch this demo of the MarketReader Platform: