2025-08-22 21:39

NEW YORK, Aug 22 (Reuters) - Crescent Energy (CRGY.N) , opens new tab is in advanced talks to acquire smaller peer Vital Energy (VTLE.N) , opens new tab, people familiar with the matter said on Friday, in a deal that would give the energy producer an extensive position in the Permian Basin. Terms of the combination could not be learned, but a transaction could be announced as soon as next week, said the sources, who cautioned a deal could still fall apart at the last minute and spoke on condition of anonymity to discuss private deliberations. Sign up here. Crescent Energy has a market value of around $2.5 billion, while Vital Energy is worth around $600 million. Vital also carries around $2.3 billion of long-term debt. Vital did not immediately respond to a request for comment. Crescent declined to comment. Vital Energy's shares rose over 7% to $16.92 per share in extended trading after the Reuters report. Crescent Energy fell about 1% to $9.85 per share. Crescent Energy is focused on exploration and production from older wells, which do not have the growth potential of traditional new shale wells but which provide consistent levels of oil and gas output and steady returns. Its existing footprint primarily consists of the Eagle Ford basin in south Texas and the Uinta basin in Utah. In January, the company completed a near $1 billion acquisition of privately-held Ridgemar Energy's assets in the Eagle Ford. Vital Energy has around 267,000 net acres in the Permian Basin, with net production of 137,900 barrels of oil equivalent per day, according to its website. Mergers and acquisitions activity in the U.S. shale space tailed off in the second quarter of the year as volatility across energy and equity markets spooked sentiment. However, economies of scale still help to make the argument for consolidation. https://www.reuters.com/business/energy/crescent-energy-nears-deal-us-shale-peer-vital-energy-sources-say-2025-08-22/

2025-08-22 21:10

Gold Reserve's Dalinar Energy has offered $7.4 billion Elliott's Amber Energy August offer includes $5.86 billion to creditors, $2.86 billion to bondholders HOUSTON, Aug 22 (Reuters) - A U.S. court officer is preparing to recommend a winner in an auction for shares of Citgo Petroleum's parent company, with affiliates of hedge fund Elliott Investment Management and miner Gold Reserve (GRZ.V) , opens new tab leading the competition for the U.S. refiner. U.S. court officer Robert Pincus faces a Monday deadline to determine whether a $7.4 billion bid from Gold Reserve's subsidiary Dalinar Energy, which he previously recommended, remains the frontrunner or a rival offer is superior. Sign up here. Elliott's affiliate Amber Energy, a unit of commodities firm Vitol and a consortium led by private equity firm Black Lion Capital Advisors submitted offers in the final stages of the bidding. That prompted the court to extend the bidding deadline to Friday and delay a final sale hearing to September. Amber and Gold are now neck-to-neck in the competition, with other bidders falling behind, according to court filings and sources close to the offers' preparations. But their offers differ substantially. Among the main differences are the amount of cash offered versus non-cash considerations, and a key negotiation to pay holders of a Venezuelan defaulted bond collateralized with Citgo equity. Amber told the Delaware court this week it reached a pact with more than two-thirds of the holders. The Gold Reserve group, whose bid does not include a payment provision to the bondholders, is betting its offer will be deemed superior due to its coverage of 11 of the 15 claimants lining up to cash proceeds. Judge Leonard Stark earlier this year instructed Pincus and court advisors in the auction to prioritize price over "certainty of closure," a term defining a proposal's chances of becoming a real takeover. Amber, whose bid offers $5.86 billion to creditors and $2.86 billion to the bondholders, is required to show proof to the court of its agreements. The Gold Reserve group has the option of objecting to any competing bid due to procedural issues. It can also boost its own offer if it loses. Amber and Dalinar did not immediately reply to requests for comment. Under a new calendar approved by the court on Friday, Gold Reserve's Dalinar will only have three days to match any superior proposal. Gold Reserve said on Friday it engaged investment bank Cantor Fitzgerald & Co as financial advisor in connection with its bid. A potential strategy by Dalinar to raise its bid could involve adding more creditors to its proposal, something that is in negotiation, the sources said. Amber also has been in talks with at least two creditors in the auction willing to turn their claims into credit bids, according to one of the sources. Credit bids are accepted in some auctions to allow creditors lining up for the proceeds to acquire the assets or shares up for auction in exchange for the debt owed. In this case, credit bids must be combined with cash offers, the court has said. The auction aims to pay up to $19 billion to 15 creditors as compensation for debt defaults and expropriations in Venezuela. The court, which has been handling the case since 2017, found Citgo's parent PDV Holding liable for Venezuela's debts. https://www.reuters.com/legal/government/elliott-gold-reserve-affiliates-work-offers-citgo-parent-bidding-end-looms-2025-08-22/

2025-08-22 21:01

Results for AI bellwether Nvidia set for Wednesday Stocks rebound broadly on Fri after dovish comments from Fed's Powell S&P 500 up 10% on the year, near record highs NEW YORK, Aug 22 (Reuters) - A wobble in U.S. technology shares has raised the stakes for Nvidia Corp's (NVDA.O) , opens new tab quarterly results on Wednesday, with earnings from the semiconductor giant posing a crucial test for the scorching AI trade. The heavyweight tech sector(.SPLRCT) , opens new tab slumped 1.6% on the week after a huge run for the group, dragging on key indexes. The sector's weekly decline moderated on Friday as stocks broadly rallied after comments from Federal Reserve Chair Jerome Powell appeared to pave the way for imminent interest rate cuts. Sign up here. Fueled by its dominant artificial intelligence (AI) products, Nvidia's massive share price gains have buoyed both the tech sector and the overall market in recent years. Last month, Nvidia became the first company to top $4 trillion in market value. Investors are now more "on edge" heading into Nvidia's results, said Matthew Maley, chief market strategist at Miller Tabak. "When the group goes down and the most important stock in the group reports earnings, that is going to have a bigger impact than usual," Maley said. Nvidia's stock has climbed more than 30% so far in 2025, pushing its gain to over 1,400% since October 2022. The California-based company has epitomized the broader AI excitement that has driven up shares of a raft of tech companies and others involved in AI infrastructure such as power generation and cooling systems. "Nvidia is almost looked at as a proxy to what is happening in artificial intelligence," said Matt Orton, chief market strategist at Raymond James Investment Management. "There's definitely a read-through that happens to the broader AI trade, which has really been the main driver of the S&P 500's return this year." Analysts said possible reasons for recent tech stock weakness include cautionary AI industry developments, including comments from OpenAI CEO Sam Altman that investors may be getting overexcited about AI. Also, a study from researchers at the Massachusetts Institute of Technology cast doubt on returns from AI investments. Nvidia's results will close out a second-quarter U.S. corporate earnings season that has largely surpassed expectations and helped support equities. S&P 500 company earnings are on track to have climbed 12.9% from the year-earlier period, up from an expected 5.8% rise on July 1, according to LSEG IBES. Goldman Sachs strategists pointed to particular earnings strength so far for the "Magnificent Seven" -- the group of megacap companies that includes Nvidia as well as Apple (AAPL.O) , opens new tab and Microsoft (MSFT.O) , opens new tab. Including estimates for Nvidia, the Magnificent 7 are on track to have increased earnings by 26% compared with 7% for the remaining 493 stocks in the index, the Goldman strategists said in a note. Nvidia is expected to post a 48% rise in earnings per share on revenue of $45.9 billion for its second fiscal quarter, according to LSEG data. Megacap tech companies focusing on AI have recently increased their estimates for capital spending, which should be favorable for Nvidia, said Paul Roach, portfolio manager at Allspring Global Investments. Nvidia's "commentary on the demand side... should be more bullish just because their largest customers have all kind of upped their capex guidance over the last few quarters," Roach said, adding that demand for Nvidia's products is also broadening beyond the largest tech companies ECONOMIC DATA Investors will also focus on U.S. economic data in the coming week, including on consumer sentiment and inflation. Despite the latest tech declines, the S&P 500 eked out a gain on the week and is up about 10% this year, around record-high levels. The Dow Jones Industrial Average (.DJI) , opens new tab notched a record high close on Friday. As tech shares fell this week, some investors rotated into other areas of the market that have not been as strong in recent weeks, such as healthcare (.SPXHC) , opens new tab and consumer staples (.SPLRCS) , opens new tab. But major equity indexes will be hard-pressed to keep moving higher if tech falters, given its heavy presence in those indexes, Maley said. Tech is by far the largest of the S&P 500's 11 sectors, with a 33% weight. Nvidia alone has a nearly 8% weight in the index. "If these tech stocks continue to fall, that means the indexes will continue to fall," Maley said. "No way around it." https://www.reuters.com/business/wall-st-week-ahead-investors-zero-nvidia-results-us-tech-stocks-waver-2025-08-22/

2025-08-22 20:51

Radioactive, fissile plutonium from Cold War a headache for US US wants to halt disposal of it, use 20 metric tons for fuel Trump administration sees it as potential fuel for new reactors Critic points out similar program failed due to costs WASHINGTON, Aug 22 (Reuters) - The Trump administration plans to make available about 20 metric tons of Cold War-era plutonium from dismantled nuclear warheads to U.S. power companies as a potential fuel for reactors, according to a source familiar with the matter and a draft memo outlining the plan. Plutonium has previously only been converted to fuel for commercial U.S. reactors in short-lived tests. The plan would follow through on an executive order signed by President Donald Trump in May ordering the government to halt much of its existing program to dilute and dispose of surplus plutonium, and instead provide it as a fuel for advanced nuclear technologies. Sign up here. The Department of Energy, or DOE, plans to announce in coming days it will seek proposals from industry, said the source who spoke on the condition of anonymity. The source cautioned that because the plan is still a draft, its final details could change pending further discussions. The plutonium would be offered to industry at little to no cost -- with a catch. Industry will be responsible for costs of transportation, designing, building, and decommissioning DOE-authorized facilities to recycle, process and manufacture the fuel, the memo said. The details on the volume of the plutonium, industry's responsibilities in the plan and the potential timing of a U.S. announcement, have not been previously reported. The 20 metric tons would be drawn from a larger, 34-metric-ton stockpile of weapons-grade plutonium that the United States had previously committed to dispose of under a non-proliferation agreement with Russia in 2000. The Department of Energy did not confirm or deny the Reuters reporting, saying only that the department is "evaluating a variety of strategies to build and strengthen domestic supply chains for nuclear fuel, including plutonium," as directed by Trump's orders. Boosting the U.S. power industry is a policy priority for the Trump administration as U.S. electricity demand rises for the first time in two decades on the boom in data centers needed for artificial intelligence. The idea of using surplus plutonium for fuel has raised concerns among nuclear safety experts who argue a previous similar effort failed. Under the 2000 agreement, the plutonium was initially planned to be converted to mixed oxide fuel, or MOX, to run in nuclear power plants. But in 2018, the first Trump administration killed the contract for a MOX project that it said would have cost more than $50 billion. The U.S. Energy Department holds surplus plutonium at heavily guarded weapons facilities including Savannah River in South Carolina, Pantex in Texas, and Los Alamos in New Mexico. Plutonium has a half-life of 24,000 years and must be handled with protective gear. Until Trump's May order, the U.S. program to dispose of the plutonium has involved blending it with an inert material and storing it in an experimental underground storage site called the Waste Isolation Pilot Plant (WIPP) in New Mexico. The Energy Department has estimated that burying the plutonium would cost $20 billion. "Trying to convert this material into reactor fuel is insanity. It would entail trying to repeat the disastrous MOX fuel program and hoping for a different result," said Edwin Lyman, a nuclear physicist at the Union of Concerned Scientists. "The excess plutonium is a dangerous waste product and DOE should stick to the safer, more secure and far cheaper plan to dilute and directly dispose of it in WIPP." https://www.reuters.com/business/energy/trump-plans-make-cold-war-era-plutonium-available-nuclear-power-2025-08-22/

2025-08-22 20:47

BRASILIA, Aug 22 (Reuters) - Brazil's state development bank BNDES announced on Friday a fresh credit line of 10 billion reais ($1.85 billion) for companies affected by steep U.S. tariffs. The BNDES credit is divided in a line for general operating expenses and another for searching new markets, and complements a 30 billion reais credit line unveiled by the Brazilian government earlier this month. Sign up here. Brazilian companies of all sizes with products subject to any percentage of U.S. levies may access the BNDES credit line, BNDES said. ($1 = 5.4194 reais) https://www.reuters.com/world/americas/brazil-unveils-new-19-billion-credit-line-companies-hit-by-us-tariffs-2025-08-22/

2025-08-22 20:44

Aug 22 (Reuters) - Fitch affirmed the U.S. credit rating at "AA+" on Friday, highlighting concerns over rising debt levels while also citing the country's large, high-income economy, and its financing flexibility due to the dollar's role as global reserve currency. High fiscal deficits and increasing government debt levels constrain the U.S. rating, even if a surge in revenue from President Donald Trump's sweeping tariffs is expected to reduce the deficit this year, Fitch said in a statement. Sign up here. "The U.S. has not taken meaningful action to address its large fiscal deficits, rising debt burden, or the looming increase in spending tied to an aging population," it said. In 2023, Fitch downgraded the U.S. sovereign rating by one notch from its previous top, triple-A rating, pointing to expected fiscal deterioration and repeated down-to-the-wire debt ceiling negotiations. This year, credit ratings agency Moody's also downgraded the U.S. sovereign credit by one notch, citing rising debt levels and stripping the country of its last triple-A rating. Despite rising debt, the dollar's 58% share in global reserves underpins the U.S. government's financing capacity, Fitch said, adding that it expects the greenback's dominance in trade and finance to persist even amid policy uncertainty. Fitch said it expects the general government deficit to narrow to 6.9% of GDP in 2025 from 7.7% in 2024, driven by resilient economic growth, solid stock market performance, and a surge in tariff revenues. The agency forecasts tariff revenues to jump to $250 billion this year, from $77 billion in 2024. Longer term, it expects deficits to increase, with debt-to-GDP rising to 127% by 2027 from 114.5% at the end of last year. "Fitch's debt dynamics model indicates that the medium-term debt trajectory remains upward, increasing the U.S.'s vulnerability to future economic shocks," it said. Still, Fitch said the country's rating outlook remained stable. The ratings affirmation follows S&P Global, which earlier this week maintained its "AA+" rating on the U.S., citing tariff revenues as a potentially important offset to the fiscal strain from Trump's tax cuts and spending bill. https://www.reuters.com/business/fitch-affirms-us-credit-aa-rising-debt-ratings-constraint-2025-08-22/