2023-12-29 22:49
Dec 29 (Reuters) - Egg producer Cal-Maine Foods (CALM.O) said on Friday it had agreed to acquire a recently shut chicken broiler processing plant, hatchery and feed mill in Dexter, Missouri from Tyson Foods (TSN.N). Tyson, the largest U.S. meat producer by sales, said in August it would be shutting down four of its chicken plants in states including Missouri, as it looks to cut costs amid slowing demand for its products. About 683 people worked at Tyson's facility in Dexter, which has a population of around 8,000. Cal-Maine said it expects to convert the broiler processing factory into an egg-grading facility initially and anticipates making additional investments and creating new jobs. The company, which expects to close the transaction in its third fiscal quarter, did not disclose a value for the deal. Cal-Maine also said it expects to enter into agreements with some of Tyson’s former contract farmers and convert their operations to support its egg production. https://www.reuters.com/markets/deals/egg-producer-cal-maine-buy-tysons-chicken-plant-missouri-2023-12-29/
2023-12-29 20:36
Dec 29 (Reuters) - XCF Global Capital has agreed to go public via a merger with special purpose acquisition company (SPAC) Focus Impact BH3 Acquisition, in a deal that values the sustainable fuels producer at $1.75 billion, the SPAC said on Friday. New York-based XCF Global, which owns multiple facilities in North America, produces renewable diesel and has planned a strategic expansion into sustainable aviation fuel and other biofuels. SPACs have largely fallen out of favor following a frenzy of deals in 2020 that invited intense scrutiny from the U.S. securities regulator. But smaller private companies still prefer mergers with SPACs, since this lets them sidestep a lengthy initial public offering (IPO) process. Last week, Powermers Smart Industries, a commercial transportation and industrial equipment maker focused on reducing greenhouse gas emissions, also agreed to go public in a SPAC deal valued at around $2 billion. Also called blank-check firms, SPACs use proceeds from their IPOs to merge with private firms. https://www.reuters.com/markets/deals/fuel-maker-xcf-global-capital-go-public-175-bln-spac-deal-2023-12-29/
2023-12-29 20:24
MEXICO CITY, Dec 29 (Reuters) - Mexico's government on Friday ordered state energy company Pemex to immediately take temporary control of a privately-operated hydrogen plant located inside one of its largest refineries. President Andres Manuel Lopez Obrador, who signed a decree declaring hydrogen supply from the plant operated by France's Air Liquide "a matter of public interest," has tightened state control over the energy market since he came to power in December 2018. Citing the Mexican Constitution, the decree stated that the hydrogen plant should be occupied "immediately" by TRI, the refining arm of Pemex. Mexico depends on third parties for hydrogen supply, which the government said was "putting at risk the production of gasoline and diesel", adding that the deal with Air Liquide was also not economically viable for Pemex. It neither specified how long the occupation would last nor how the French company would be compensated. Air Liquide and Pemex did not immediately respond to a requests for comment. Julia Gonzalez, an energy lawyer, said declaring an asset "a matter of public interest" was just one step away from expropriation but that it could not result in expropriation. "It's not the first case like this," she added. "Let's remember what happened with the railways." Earlier this year, the Mexican government spooked investors when it took over part of Grupo Mexico's railway. Under former President Enrique Pena Nieto, TRI had signed a deal with Air Liquide in 2017 to supply hydrogen needed to operate refineries for 20 years in what was meant to reduce the costs for the state company. Air Liquide was meant operate the existing plant inside the refinery, one of Mexico's largest, and invest in a second plant to supply the total hydrogen required for expansion projects. In the past, Lopez Obrador, a resource nationalist, has frequently clashed with big business, especially those operating in the energy sector. Lopez Obrador has accused political opponents of rigging the energy market in favor of corporate elites and his policy decisions have even led to trade disputes with the United States and Canada. https://www.reuters.com/business/energy/mexico-orders-pemex-occupy-privately-operated-hydrogen-plant-2023-12-29/
2023-12-29 19:37
Dec 29 (Reuters) - U.S. crude oil output fell slightly in October to 13.248 million barrels per day, the first monthly decline since April, the U.S. Energy Information Administration (EIA) said on Friday. Analysts have been expecting a slowdown in U.S. oil output after it set monthly records in August and September. Falling U.S. output could help ease some oversupply concerns that have weighed on crude prices in recent months. However, the small magnitude of that decline - just 4,000 barrels per day (bpd) - likely shows that U.S. production might still have room to grow. "Those who have been preaching for months that US shale production has peaked are in for another surprise: Crude production increased in all tight plays except in North Dakota," Anas Alhajji, an energy market expert based in Dallas, wrote on Friday. North Dakota, the third-largest oil-producing U.S. state, saw its crude output fall 2.4% to 1.27 million bpd in October, the first monthly decline since March. Output from the Federal Offshore Gulf of Mexico region fell 2% in October, EIA data showed. However, most other major production hubs saw output improve. Top oil-producing state Texas saw output rise by 0.4% to a record high of 5.61 million bpd in October, EIA said. Output in neighboring New Mexico rose 0.8% in October to 1.84 million bpd. The EIA on Tuesday revised its estimates of total U.S. oil output in September to 13.252 million bpd from 13.236 million bpd reported last month. Gross natural gas production in the U.S. Lower 48 states was virtually unchanged at 116.63 billion cubic feet per day (bcfd) in October, compared to the record high 116.71 bcfd in September, according to EIA's monthly 914 production report. In top gas-producing states, output hit a new record for the fourth straight month in Texas in October, climbing 0.1% to 34.67 bcfd. In Pennsylvania, production rose 0.6% to 20.68 bcfd. https://www.reuters.com/markets/commodities/us-oil-output-fell-october-first-time-since-april-eia-2023-12-29/
2023-12-29 19:36
LAGOS, Dec 29 (Reuters) - Nigerian oil producers will be required to supply 483,000 barrels per day (bpd) to local refineries in the first six months of 2024, new regulations showed on Friday, as Africa's largest oil exporter seeks to guarantee supplies for local refining. The Dangote oil refinery and at least three government-run refineries are among local refineries that are expected to begin operations in 2024. The 650,000-barrel-per-day Dangote refinery will receive the biggest volume of 325,000 bpd, according to newly published Domestic Crude Supply Obligation guidelines from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). NUPRC data showed that six refineries were expected to be operational from 2024, with total refining capacity of 864,500 bpd, meaning that oil producers would be required to supply just over half of the crude requirements. A Petroleum Industry Act passed in 2021 introduced a requirement for oil producers in Nigeria to supply part of their crude to domestic refineries so they are not starved of crude supplies, but this has yet to be enforced. NUPRC said the refineries would pay global market prices for the crude. A total of 48 oil producers, including majors TotalEnergies (TTEF.PA), Chevron (CVX.N), Shell and ExxonMobil (XOM.N) will participate in the programme, and production is to come mostly from their joint venture operations with Nigerian state oil firm, the NNPCL participates. Gbenga Komolafe, chief executive of NUPRC, told Reuters that the regulator was now enforcing the regulations as Nigeria seeks to start refining its oil. Nigeria has said it plans to produce 1.8 million bpd of oil next year, above its OPEC quota of 1.5 million bpd. https://www.reuters.com/markets/commodities/nigerian-oil-firms-be-required-supply-483000-bpd-local-refineries-2023-12-29/
2023-12-29 19:21
NEW YORK, Dec 29 (Reuters) - The Federal Reserve Bank of New York said on Friday it accepted $1.018 trillion at its overnight reverse repo facility, as inflows to the central bank liquidity facility surged on the final trading day of the year. Friday's inflows were expected to jump and were well above the $829.6 billion seen on Thursday. Friday's inflows were the first time above $1 trillion since Nov. 13. The Fed's reverse repo facility exists to put a floor underneath short-term interest rates and is a key tool in the Fed's efforts to influence the economy to achieve its employment and inflation mandates. The facility has seen big inflows over recent years amid strong Fed stimulus work and peaked at a record $2.6 trillion on Dec. 30, 2022. The facility has been shrinking markedly in recent weeks as the Fed continues to draw down liquidity and other money market securities prove more attractive to investors relative to the 5.30% rate offered on reverse repos. Money markets are often unsettled in the final days of any year and it's become a normal pattern for the firms eligible to use the reverse repo facility to do so more aggressively. Some analysts expected ahead of Friday for any surge into reverse repo to quickly dissipate: Forecasters at Wrightson ICAP are eyeing about a $400 billion decline in reserve repo inflows over the next week or so. The New York Fed also reported Friday that there were zero inflows into its Standing Repo Facility, which suggests any dislocations or liquidity needs in money markets were not substantial. https://www.reuters.com/markets/rates-bonds/new-york-fed-inflows-reverse-repo-facility-surge-hitting-1018-trillion-2023-12-29/
