2025-02-24 21:38
Feb 24 (Reuters) - U.S. shale producer Diamondback Energy (FANG.O) , opens new tab surpassed Wall Street expectations for fourth-quarter profit on Monday, as higher production helped offset lower prices. Shares were up 3% at $159.95 in extended trading. Data from the U.S. Energy Information Administration showed the country's total oil production rose to a record high of 13.6 million barrels per day (bpd) in December, as improved efficiencies helped producers pump more oil. Diamondback's fourth-quarter production almost doubled to an average of 883,424 barrels of oil equivalent per day (boepd), which helped offset a 9% drop in oil prices. Last week, Diamondback said its CEO Travis Stice intends to step down from his role after 13 years at the helm during the company's 2025 annual stockholders meeting and will be succeeded by finance head Kaes Van't Hof. Earlier this month, Diamondback said it will acquire some units of EnCap Investments-backed producer Double Eagle for $4.08 billion in a cash-and-stock deal, expanding its presence in the Permian Basin, the top U.S. oil-producing shale. The Texas-based company completed its $26 billion acquisition of Endeavor Energy in September, making it the third-largest oil and gas producer in the Permian, putting it just behind industry giants Exxon Mobil (XOM.N) , opens new tab and Chevron (CVX.N) , opens new tab. Diamondback now expects current year net production to be between 883,000 boepd and 909,000 boepd. It forecast capital expenditure to be between $3.8 billion and $4.2 billion, the mid-point of which was below Wall Street estimates of $4.15 billion. The company posted an adjusted profit of $3.64 per share for the three months ended December 31, compared with analysts' estimates of $3.35 per share according to data compiled by LSEG. Sign up here. https://www.reuters.com/business/energy/diamondback-energy-beats-fourth-quarter-profit-estimates-2025-02-24/
2025-02-24 21:32
Feb 24 (Reuters) - Air Products (APD.N) , opens new tab said on Monday it would exit three projects in the U.S. and expects to record a pre-tax charge of nearly $3.1 billion in its second quarter to write down assets and terminate contractual commitments. This comes after the company lost the proxy fight against activist investor Mantle Ridge, which had been pushing the company to replace its 80-year-old chief, by electing three new directors and unseating the CEO from the board. "The decision to exit these three projects will streamline our backlog and focus company resources on projects that drive value for Air Products' shareholders," said Eduardo Menezes, the newly elected chief executive officer of Air Products. As part of a review initiated by Air Products' newly-elected board of directors, the company has decided to terminate the agreement with World Energy for the Sustainable Aviation Fuel expansion project in Paramount, California. It also looks to cancel its plans to construct a 35-metric-ton per day facility to produce green liquid hydrogen in Massena, New York, largely due to recent regulatory developments rendering existing hydroelectric power supply ineligible for the Clean Hydrogen Production Tax Credit (45V). Lastly, it plans to terminate its carbon monoxide project in Texas. Air Products said that it does not currently expect any material cancellations going forward, but continues to evaluate its existing backlog. Sign up here. https://www.reuters.com/markets/commodities/air-products-exit-three-us-projects-2025-02-24/
2025-02-24 21:27
Feb 24 (Reuters) - Chevron (CVX.N) , opens new tab said on Monday it would reorganize some of its business structures and reshuffle the leadership team, the latest move by the U.S. energy major to simplify its operations. The company has said it would lay off up to 20% of its global workforce by the end of 2026, as it navigates cost overruns and a business that it says has become overcomplicated. Its $53 billion acquisition of Hess (HES.N) , opens new tab has been stalled due to an arbitration battle with larger rival Exxon Mobil (XOM.N) , opens new tab. "Our new organizational structure and leadership appointments are designed to improve our operational efficiency and position Chevron for sustained growth," CEO Mike Wirth said in a statement. The company's oil, products and gas organization will consist of two separate segments -- upstream being the first and downstream, midstream and chemicals (DM&C) as the second. Clay Neff, who is currently Chevron's president of international exploration and production, will oversee upstream effective July 1. The company said Andy Walz will continue to lead the DM&C organization. Chevron Vice Chairman Mark Nelson will continue to oversee the overall oil, products and gas organization. The oil and gas producer's technical center will also be reorganized and insider Ryder Booth will take the helm as the new unit's vice president on July 1. Chevron, which moved its headquarters from San Ramon, California, to Houston and replaced several long-standing managers, is targeting up to $3 billion in cost cuts through 2026 from leveraging technology, asset sales and changing how and where work is performed. Last August, it announced a new hub in India which would become its largest tech center outside the U.S. Sign up here. https://www.reuters.com/business/energy/chevron-reorganize-business-structure-2025-02-24/
2025-02-24 21:08
Putin extends joint exploration offer to U.S. companies Russia has more rare earth resources than Ukraine, Putin says Russia has world's fifth-largest rare earth metals reserves Russian president proposes joint hydropower, aluminum production MOSCOW, Feb 24 (Reuters) - Russian President Vladimir Putin offered the U.S. the opportunity for joint exploration of the country's rare earth metals deposits, as well as the supply of aluminum to the U.S. domestic market, under a future economic deal. U.S. President Donald Trump earlier said that "major economic development transactions with Russia" would take place. Within two hours of Trump's statement, Putin chaired a meeting with his ministers and economic advisers on rare earth metals. "We, by the way, would be ready to offer (joint projects with) our American partners, and when I say 'partners,' I mean not only administrative and governmental structures but also companies, if they showed interest in joint work," Putin said on state TV after the meeting. "We undoubtedly have, I want to emphasize, significantly more resources of this kind than Ukraine," Putin added. He mentioned that a potential U.S.-Ukraine deal , opens new tab involving rare earth metals was not a concern for Russia. Russia has the world's fifth-largest reserves of rare earth metals, according to the U.S. Geological Survey data, after China, Brazil, India and Australia. Russia reserves are estimated at 3.8 million metric tons. The rare earth metals are used to make magnets that turn power into motion for electric vehicles, cell phones, missile systems, and other electronics. Russia mines only 2,500 tons of concentrate a year and lacks capacity for processing. Putin said that potential rare earth metals exploration deals could also be extended to deposits in territory in eastern Ukraine that Russia controls after three years of military action. Putin noted that Russian companies could also supply up to 2 million tons of aluminum to the U.S. market annually if the U.S. market reopens. Russia used to provide up to 15% of U.S. aluminum imports before prohibitive duties were introduced in 2023. "This (Russian aluminium supplies) will not significantly affect price formation. However, in my opinion, it would still have a restraining influence on prices," Putin said. Putin suggested that Russia and the U.S. could work jointly on hydropower generation and aluminum production in Russia's Krasnoyarsk region in Siberia, which is the home base for Russia's largest aluminum maker, Rusal. "What is most important, in my opinion, is that we could consider working together with American companies in this area," Putin said. He estimated potential investment in this project at $15 billion. Putin said that joint projects could be extended to the energy sector as well, and that some Russian and U.S. companies were already in touch. He did not give details. In a transcript posted by the Kremlin, Putin said rare earths were a priority sector for Russia's economic development and competitiveness. The government sought to "boost the potential of the domestic industry" extending from extraction to "manufacture of ready-made high-technology goods," he said. "Based on the results of the national project, the volume of output of such goods should increase several times over," he said. Sign up here. https://www.reuters.com/world/europe/russias-putin-outlines-aluminium-rare-earth-deals-with-us-2025-02-24/
2025-02-24 20:57
Euro pares early gains in wake of German election results Dollar briefly falls to lowest in two months on U.S. growth concerns U.S. inflation data, host of Fed speakers, expected this week NEW YORK, Feb 24 (Reuters) - The euro eased off highs from a brief rally on Monday as the focus shifted from the election victory of Germany's conservatives to how quickly a coalition government can be formed. Friedrich Merz was set to become Germany's next chancellor after his party emerged victorious in Sunday's election, as expected, but coalition talks may be difficult and he could face an obstructive parliament after both far-right and far-left parties surged. Merz said he was in talks with other parties to loosen a constitutionally enshrined 'debt brake' rule that limits the budget deficit to just 0.35% of national output, even before the new parliament is officially sworn in. "The policy implications are twofold - one is the debt break in Germany," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. "That's important because it sets up the basis for the next thing, too, and that is Europe realizes that they have to step up their defense spending and it seems like the best way to do that is through a collective bond offering." U.S. President Donald Trump said the United States is close to a minerals deal with Ukraine as he and French President Emmanuel Macron held talks that covered prospects for ending the Ukraine war despite stark differences on how to proceed. The dollar index , which measures the greenback against a basket of currencies, slipped 0.07% to 106.57, after dipping to 106.12, its lowest since December 10. It is down more than 3% from a more than two-year high hit in January. "The down move is over, just about over, and that's partly what the euro is telling us today, not just the euro but the other currencies," Chandler said. "Many of them made new highs for the move and now are selling off and going through Friday's lows. This is technically a negative price action." The euro was up 0.19% at $1.0478 after reaching a one-month high of $1.0528. Data on Monday showed business morale in Germany unexpectedly stagnated in February, as the Ifo institute said its business climate index remained flat at 85.2 in February after revising the January reading up slightly to the same figure. Concerns have started to emerge about U.S. economic growth, and worries are growing as tariff deadlines by Trump on Canada and Mexico are set for next week. Investors also fear the labor market impact from actions taken by billionaire Elon Musk's Department of Government Efficiency. Investors will get a reading on U.S. inflation on Friday, while a slew of Federal Reserve officials are expected to speak this week, beginning on Tuesday. Against the Japanese yen , the dollar gained 0.31% at 149.76. Sterling edged up 0.04% to $1.2634, losing ground after hitting a two-month high of $1.269. British Prime Minister Keir Starmer is to visit Trump later in the week as he and Macron try to persuade Trump to not reach a hasty ceasefire deal with Russian President Vladimir Putin at any cost, but keep Europe involved and discuss military guarantees to Ukraine. Sign up here. https://www.reuters.com/markets/currencies/euro-backs-off-highs-german-coalition-talks-eyed-dollar-edges-up-2025-02-24/
2025-02-24 20:37
KINSHASA, Feb 24 (Reuters) - The Democratic Republic of Congo, the world's top producer of cobalt, said on Monday it has temporarily halted the metal's exports to limit its flow on the market because it says it is over-supplied. The ban will be in place for at least four months, the Authority for the Regulation and Control of Strategic Mineral Substances' Markets, or ARECOMS, said in a statement. "This measure is intended to regulate supply on the international market, which is faced with a production glut," ARECOMS President Patrick Luabeya said in the statement. To enforce and ensure that mining companies comply with the ban, ARECOMS issued a decree, seen by Reuters. The decree was signed by ARECOMS' Luabeya and co-signed by Mines Minister Kizito Pakabomba. The export ban of cobalt -- a key component in batteries for electric vehicles and mobile phones -- is effective February 22 and could either be adjusted or terminated after three months, he said. News of the temporary metal exports ban was earlier reported by Bloomberg News. China's CMOC Group (603993.SS) , opens new tab, the world's biggest cobalt miner, last year more than doubled its output of the metal to about 114,000 metric tons from about 56,000 tons, as it boosts copper production at its two mines in Congo. CMOC did not immediately respond to emailed questions. Eurasian Resources Group, another big Congo cobalt producer, also did not immediately respond to emailed questions while Glencore declined to comment. The agency said the ban is for all cobalt produced in the country, including by small scale or artisanal miners. As well as mining cobalt, Congo is also the world's second-biggest copper producer. Sign up here. https://www.reuters.com/markets/commodities/congo-suspends-cobalt-exports-four-months-counter-oversupply-bloomberg-news-2025-02-24/
