2024-05-29 12:39

May 29 (Reuters) - ConocoPhillips (COP.N) New Tab, opens new tab on Wednesday agreed to buy Marathon Oil (MRO.N) New Tab, opens new tab in a $22.5 billion deal, the latest in a series of mega-mergers in the oil and gas industry as companies look to bolster reserves. The U.S. oil and gas industry has been riding a consolidation wave over the last two years. Last year was one of the most active, where M&A deals worth $250 billion were struck. The momentum has carried over into this year as the stock market continues to boom and as U.S. oil production scales new records. Conoco's all-stock offer equates to $30.33 per Marathon share, representing a premium of nearly 15% as of the stock's Tuesday close, according to Reuters calculations. The transaction, which includes $5.4 billion of Marathon's debt, is expected to close in the fourth quarter of 2024. It expects cost savings of $500 million within the first full year after the closing of the transaction. The acquisition adds over 2 billion barrels of reserves to ConocoPhillips' portfolio. Marathon Oil has operations in the Bakken basin in North Dakota, Permian basin in North Delaware and South Texas' Eagle Ford basin - regions that are prime targets for producers looking to increase their inventory. Marathon Oil shares were up 5.5% at $27.22, while Conoco shares were down about 3% in premarket trading. "This acquisition of Marathon Oil further deepens our portfolio and fits within our financial framework, adding high-quality, low cost of supply inventory adjacent to our leading U.S. unconventional position," ConocoPhillips CEO Ryan Lance said. The deal follows U.S. majors Exxon Mobil's (XOM.N) New Tab, opens new tab acquisition of Pioneer Natural Resources that was announced in October, and Chevron's (CVX.N) New Tab, opens new tab proposed $53 billion merger with Hess that was approved by the latter's shareholders on Tuesday. The consolidation activity in the industry has, however, attracted increased antitrust scrutiny, with the FTC reviewing multi-billion dollar deals, including those involving Chevron, Diamondback Energy (FANG.O) New Tab, opens new tab, Occidental Petroleum (OXY.N) New Tab, opens new tab and Chesapeake Energy (CHK.O) New Tab, opens new tab. RBC analysts termed the Marathon deal as a "surprise transaction," but see the asset mix fitting well and strengthening ConocoPhillips' onshore assets while building on its global LNG presence. ConocoPhillips also added that it would dispose of nearly $2 billion worth of assets. The company plans to increase its base dividend by 34% from the fourth quarter of 2024 onwards. After the transaction closes, it aims to buy back more than $7 billion in shares in the first full year. Sign up here. https://www.reuters.com/markets/deals/conocophillips-advanced-talks-buy-marathon-oil-ft-reports-2024-05-29/

2024-05-29 11:45

BEIJING, May 29 (Reuters) - China aims to reduce the carbon dioxide emissions of key industries by an amount equivalent to about 1% of the 2023 national total through efficiency gains in everything from steel production to transportation, according to a government plan released on Wednesday. China, the world's top energy consumer and largest greenhouse gas emitter, also set a target for making economic growth more energy efficient, a step in line with President Xi Jinping's push for "new productive forces." The government action plan said China's economy would require 2.5% less energy for every unit of GDP growth in 2024. It proposed to hit that goal by pushing for specific changes in industries, including building materials and petrochemicals. China missed its energy intensity goal last year, and its desire to cut emissions and energy consumption is often at odds with the need to boost economic growth and living standards. Lauri Myllyvirta, senior fellow at Asia Society Policy Institute, said it was possible China's CO2 emissions could have peaked in 2023, reflecting stalled growth in oil demand and expanding wind and solar and wind generation. China's official target remains for CO2 emissions to peak before 2030. The plan repeated a target for non-fossil energy sources to make up about 20% of China's total energy use in 2025, up from this year's target of around 18.9%. The plan said China would "strictly" control coal consumption, "reasonably" control petroleum consumption and promote use of biofuel and sustainable aviation fuel. For natural gas - which Beijing sees as a bridge to reach its carbon-neutral goal by 2060 - the plan calls for the expedited development of resources such as shale gas and coal bed methane to boost domestic supply. It said the government would also prioritise gas use for winter heating of households. The plan calls for building large-scale renewable power complexes and the development of offshore wind power so that non-fossil energy sources would account for some 39% of total power generation by 2025, up from 33.9% in 2020. It also said China would increase a limit on the curtailment of renewable energy from 5% to 10%, and envisages the accelerated construction of ultra-high voltage transmission lines and grid system upgrades to address curtailment. Curtailment refers to curbing excess renewable electricity to maintain a balance between supply and demand. Some areas have faced rising curtailment rates as increases in renewable power capacity have exceeded the capacity of the distribution system and batteries to either use or store that power. Albert Miao, head of Asia energy transition research at Macquarie, said the relaxed curtailment rule could lead to an additional 30GW of new solar capacity. The plan also set a target for China to have at least 40GW of new-type energy storage - which is largely made up of battery storage - by the end of 2025, up 33% from the previous goal. China had 35.3GW of installed new energy storage capacity as of the first quarter of 2024. The plan said China would gradually abolish restrictions on purchases of new energy vehicles in all parts of the country, and would implement policies that support such vehicles. Moreover, according to the plan, the government would control production of metals, including copper and aluminium, while allowing the development of silicon, lithium and magnesium production, elements used in semiconductors and batteries. It said state agencies would "vigorously develop" metal recycling. Sign up here. https://www.reuters.com/sustainability/climate-energy/china-plans-cut-co2-emission-by-about-130-mln-metric-tons-key-areas-2024-2025-2024-05-29/

2024-05-29 11:30

Visit to Ukraine's neighbour comes as Russia intensifies Ukraine attacks Expected to announce support for Moldova's energy independence Use of Western weapons to hit Russia may be discussed at NATO gathering CHISINAU, May 29 (Reuters) - U.S. Secretary of State Antony Blinken landed in the Moldovan capital Chisinau on Wednesday, the first stop on a brief Europe tour aimed at solidifying Western support for Ukraine across NATO allies and neighbouring countries. The top U.S. diplomat's trip comes as Ukraine is trying to fend off intensifying Russian attacks in the east and President Vladimir Putin warns that allowing Kyiv New Tab, opens new tab to use Western weapons to strike inside Russia could trigger a global conflict. In Chisinau, Blinken will meet pro-European President Maia Sandu and other senior officials at a time when U.S. officials say the ex-Soviet republic of 2.5 million, which has a long border with Ukraine, faces Russian "influence operations". Jim O'Brien, the top U.S. diplomat for Europe at the State Department, told reporters on Friday that the United States would likely announce a "robust package" of support for Moldova's energy independence, without elaborating. Under Sandu, Moldova has staunchly condemned Russia's invasion of Ukraine and set its sights on joining the European Union. It has sharply reduced its dependence on Russian natural gas and is diversifying its sources of electricity supply. O'Brien added that Washington has not seen a direct military threat from Russia toward Moldova's breakaway region of Transdniestria where Moscow has had a force of peacekeepers and soldiers on the ground since a war in the early 1990s. Moldova, which holds a referendum in October to cement its bid to join the EU into its constitution, is a vocal supporter of Ukraine and sees its security as closely tied to Kyiv's ability to hold back Russian forces. "Support for Ukraine equals support for Moldova, but it also works the other way round. Supporting Moldova strengthens Ukraine because Ukraine needs a strong, democratic Moldova and a supportive neighbour because we share a 1,200-km border," said Olga Rosca, the Moldovan president's foreign policy adviser. She told Reuters Blinken's visit was a "very strong sign of support but also for the choices the Moldovans have been making in terms of the democratic path and their EU aspirations". NATO GATHERING Later in the week, Blinken will travel to Prague New Tab, opens new tab to attend an informal gathering of NATO foreign ministers, which will focus on advancing preparations ahead of a July summit of the alliance in Washington. "We do not anticipate that there'll be an invitation for Ukraine to join NATO, but we think there will be a substantial show of support for Ukraine as it works to win its war," O'Brien said. "This will include ongoing NATO support in building Ukraine's future force and efforts to help Ukraine as it makes the reforms needed so that it's able to join the EU and run across the bridge to NATO as quickly as it's able." The United States has been working with European allies to help Ukraine build its long-term force, efforts that would bring Kyiv closer to NATO. Individual members including the United States are working to reach bilateral agreements with Ukraine. More than two years into the deadliest war in Europe since World War Two, Western allies are debating how to stop Russian military advances and Putin is increasingly evoking the risk of a global war. One critical issue has been whether the allies would allow Ukraine use the weapons they provide to strike inside Russia, a topic that might be discussed at the Prague meeting. In comments to The Economist, NATO Secretary General Jens Stoltenberg urged alliance members to allow Ukraine to use their weapons inside Russia, a view supported by some European members of the transatlantic alliance but not the United States. Sign up here. https://www.reuters.com/world/europe/blinken-travels-eastern-europe-tensions-with-russia-build-2024-05-29/

2024-05-29 11:30

May 29 (Reuters) - BlackRock's (BLK.N) New Tab, opens new tab iShares Bitcoin Trust (IBIT.O) New Tab, opens new tab has become the world's largest fund for the world's largest cryptocurrency, racking up nearly $20 billion in total assets since listing in the U.S. in January, Bloomberg News reported on Wednesday. The exchange-traded fund held $19.68 billion of token on Tuesday, overtaking Grayscale Bitcoin Trust's $19.65 billion, report said, citing data compiled by Bloomberg. Reuters could not independently verify those numbers. Grayscale's product website cites its assets under management as being $19.75 billion. A spokesperson could not be reached for comment. When the nine new ETFs launched in January, Grayscale's fund had about $29 billion in assets. Market analysts have been keeping a keen eye on the relative flows into BlackRock's ETF and out of the Grayscale Bitcoin Trust (GBTC.P) New Tab, opens new tab since U.S. regulators approved the launch of nine new ETFs and the conversion of Grayscale's publicly-traded trust into an exchange-traded product on January 10. The Securities and Exchange Commission, which is led by crypto skeptic Gary Gensler, had rejected spot bitcoin ETFs for more than a decade over market manipulation worries, but approved them in January after Grayscale Investments won a court challenge last year. This has proved a short-lived victory for Grayscale, which has been hit by steady outflows since its newly converted ETF began trading January 11. BlackRock's growing dominance of the ultra-competitive new spot bitcoin landscape "is a reminder that being the first mover doesn't necessarily mean that someone ends up as the biggest winner," said Aniket Ullal, head of ETF data and analytics at CFRA. Early incumbents can have legacy disadvantages, he noted. From the outset, Grayscale battled headwinds ranging from selling pressure and a fee of 1.5%, notably higher than the average of about 0.25% charged by its new rivals, which also include firms like Fidelity Investments and ARK Investments. Meanwhile, CFRA's Ullal noted that BlackRock has benefitted from its strong distribution network among independent financial advisors and wealth managers. “We’re seeing significant assets moving into the ETF from the wealth community” as well as from individual advisors, Jay Jacobs, U.S. head of thematic and active ETFs, told Reuters Tuesday ahead of the Bloomberg report. "A lot of early movers went from direct ownership of digital assets to IBIT," Jacobs added. "Some of those accounts had millions of dollars” invested in the cryptocurrency. Although some hedge funds reported large positions in the new ETFs as of the end of the first quarter, other institutional investors have been slower to embrace the new bitcoin ETFs. "We know that this is going to be the longest process," said Jacobs of those institutional buyers. "In some cases, it could take years.” Sign up here. https://www.reuters.com/technology/blackrocks-etf-becomes-largest-bitcoin-fund-world-bloomberg-news-reports-2024-05-29/

2024-05-29 11:21

May 29 (Reuters) - Aethon Energy said on Wednesday it would buy Tellurian's (TELL.A) New Tab, opens new tab upstream assets for $260 million and signed a deal that could allow the investment firm to purchase two million tons per annum of liquefied natural gas from Tellurian's Driftwood LNG plant. Shares of the U.S. LNG developer rose 13.2% in premarket trading. Reuters had reported earlier this month that Tellurian sent home more than a dozen workers from its upstream gas production business amid sale talks. The LNG developer had ousted its chairman and co-founder Charif Souki late last year after auditors raised doubts about the company's ability to cover future expenses. The company said in March 2024 it was looking at all options, including a potential sale, and that Octavio Simoes had stepped down as CEO amid its efforts to keep the Driftwood export project alive. Tellurian has been trying to develop the 27.6-million-metric-tons-per-annum LNG plant in Lake Charles, Louisiana, which suffered multiple delays. The company has changed its Driftwood strategy several times over the years, never attracting enough potential clients for the first, $14.5 billion phase of the facility. Tellurian has also lost potential customers for Driftwood over the years, including trader Gunvor Singapore Pte Ltd. Aethon Energy said the deal would add about 100 millions of cubic feet per day of gathering and treating systems capacity to its portfolio, bringing total capacity to more than 3 billions of cubic feet per day across its assets. Tellurian said it would use the proceeds from the transaction, which is expected to close during the second quarter, to reduce borrowings and for general corporate purposes. Sign up here. https://www.reuters.com/business/energy/aethon-energy-buy-tellurian-upstream-assets-260-million-2024-05-29/

2024-05-29 11:16

BUDAPEST, May 29 (Reuters) - Hungary's government signed an accord with Belarus to help build Hungary's second nuclear plant, Hungarian Foreign Minister Peter Szijjarto said in a statement in Minsk on Wednesday. Hungary's PAK 2 reactor has been under construction by Russia's Rosatom since 2014. The Russian company is building two reactors with a capacity of 1.2 gigawatts each at PAKS 2 in central Hungary. "Of great importance is the agreement signed here today on nuclear energy cooperation, which allows us to use the experiences Belarus gained here while constructing reactors with a similar technology," Szijjarto said, without giving further details on the accord. The 12.5 billion euro ($13.57 billion) project has experienced long delays, even though nuclear power is not covered by European Union sanctions against Russia, imposed over the war in Ukraine. Hungary, which gets most of its power from Russia, has opposed expanding sanctions to include the sector. Szijjarto also criticised a proposal from some of Hungary's European and NATO counterparts to send their soldiers to Ukraine to train forces inside the country. "I am abhorred by the statements that say that EU, NATO countries are sending soldiers to Ukraine," he said. European Union defence ministers on Tuesday debated the idea of training Ukrainian forces inside the country but did not reach a common position on the sensitive issue. The 27-nation bloc already has such a mission for Ukrainian troops, but the training takes place in EU countries. Hungary's government has strained relations with Kyiv and has maintained better ties with Moscow than other EU states since Russia's invasion two years ago. ($1 = 0.9215 euros) Sign up here. https://www.reuters.com/business/energy/hungarys-government-signs-deal-with-belarus-help-build-nuclear-reactor-2024-05-29/