2024-05-20 21:38

May 20 (Reuters) - Phillips 66 (PSX.N) New Tab, opens new tab on Monday agreed to acquire Pinnacle Midland, a midstream company owned by private equity firm Energy Spectrum Capital, for $550 million in cash, expanding the U.S. refiner's natural gas gathering and processing footprint in the Midland Basin. Oil and gas producers in the United States went on a nearly $250 billion buying spree in 2023, taking advantage of their high stock prices to secure lower-cost reserves, continuing the trend in 2024. In 2023, some 39 private companies were acquired by public companies. The Midland basin in Texas, in the Permian shale, is the nation's biggest oil and second biggest gas producing basin. "Pinnacle is a bolt-on asset that advances our wellhead-to-market strategy," said Mark Lashier, CEO of Phillips 66. "Further, this transaction aligns with our long-term objectives to build out our natural gas liquids value chain." Phillips 66 holds 11 natural gas liquids (NGL) fractionation plants, along with natgas and NGL storage facilities and NGL pipelines, and 22,000 miles of pipelines. Pinnacle's assets include the Dos Picos natgas complex with a processing capacity of 220 million cubic feet per day (mmcfd), and 80 miles of pipelines. The complex could be scalable toward a second 220 mmcfd gas plant and would integrate well into Phillip 66's existing downstream infrastructure, the company said in a statement. The transaction is expected to close mid-2024. Sign up here. https://www.reuters.com/markets/deals/phillips-66-buy-pe-owned-pinnacle-midland-550-mln-2024-05-20/

2024-05-20 21:26

RIO DE JANEIRO, May 20 (Reuters) - Brazilian President Luiz Inacio Lula da Silva may soon discover that swapping the CEO of Petrobras (PETR4.SA) New Tab, opens new tab is not enough to turn the state-run oil company into the engine for job creation and development it was during his first 2002-2010 terms. Lula last week tasked incoming CEO Magda Chambriard with speeding up investments in shipyards, fertilizer plants, refineries and natural gas lines to boost the Brazilian economy, according to sources familiar with their talks. In her first public statement since appointed as CEO, Chambriard said in a post on LinkedIn on Monday that she was committed to the "continuing growth of our industry." There are, however, factors far beyond her willpower that could slow things down, the sources said. After a major corruption scandal revealed in 2014 by a probe known as Operation Car Wash, reformers set up internal and external checks and balances on business decisions at Petrobras. Those new processes "somewhat lessen" the power of the government, the firm's controlling shareholder, to steer corporate policy as it likes, said Florival Carvalho, former director of Brazilian oil and gas regulatory agency ANP. New governance mechanisms make it harder to approve projects at Petrobras that are not clearly profitable, for instance, or to sell fuel at a loss to tamp down inflation – both common practices when Lula's Workers Party was last in charge. "The current laws and Petrobras bylaws in place would make it challenging for a new management to meaningfully change the capital allocation and fuel pricing policies," Goldman Sachs analysts told clients in a note after the CEO swap last week. "It will be important for investors to monitor if any aspect of governance will be changed," the analysts added. Increased public-sector oversight by independent organs may also weigh on Chambriard's efforts to speed up a $102 billion investment plan for the 2024-2028 period. For one thing, she could meet resistance from Brazil's federal audit court (TCU), which has the power to probe public-sector business including Petrobras contracts. The TCU intervened this year when Petrobras tried to keep two private-sector fertilizer plants operating in Brazil. Unions lobbied the government to help keep the lines running, but the court warned it could trigger losses for the company of up to 487 million reais ($95 million) in eight months. "In general, the TCU and Petrobras have been at odds, fighting, for a long time," said Jose Augusto Dias de Castro, a partner at TozziniFreire Advogados, a law firm in Brazil. "One of (Chambriard's) big challenges will be to handle diplomacy with the TCU," he added. "It could become a problem if the TCU decides to put all contracts under a microscope." The new CEO's ambitions could also face headwinds from Brazilian environmental agency Ibama, which has independent licensing authority. Petrobras has been slow to get licenses from Ibama for exploring its top offshore prospects along Brazil's northern coast, in a region called the Equatorial Margin. One promising basin, Foz de Amazonas, near the mouth of the Amazon River, has been especially tricky, with Ibama demanding studies on the impact of drilling on Indigenous communities before deciding whether to issue a license. Petrobras has refused to carry out the studies, but it may have little choice if it wants to proceed with licensing, said former Ibama chief Suely Araujo, now public policy coordinator at Brazilian advocacy group Climate Observatory. "The final word belongs to the president of Ibama, with no possibility of appeal to the environment minister – or any minister, not even to the president," said Araujo. If Lula tried to push Environment Minister Marina Silva to defang Ibama, it could hurt his standing abroad and risk a blowup with Silva, a respected environmentalist, said Delcio Rodrigues, CEO at non-profit Instituto Climainfo. "He is using Marina's international prestige ... as one of the foundations of his foreign policy," Rodrigues said. ($1 = 5.1055 reais) Sign up here. https://www.reuters.com/markets/commodities/lulas-ambitions-petrobras-hemmed-by-new-rules-2024-05-20/

2024-05-20 21:25

May 20 (Reuters) - Bitcoin rose to $70,206 at 20:03 GMT on Monday, adding $3,931 to its previous close. The world's biggest and best-known cryptocurrency is up 82.3% from the year's low of $38,505 on Jan. 23. Ether, the coin linked to the ethereum blockchain network, rose 13.3% on Monday to $3500. The approval and launch of spot bitcoin exchange-traded funds in the U.S. this year has opened the asset class to new investors and reignited the excitement that evaporated when prices collapsed in the "crypto winter" of 2022. Sign up here. https://www.reuters.com/technology/bitcoin-rises-70206-2024-05-20/

2024-05-20 21:23

HOUSTON, May 20 (Reuters) - Crude oil tanker Dubai Angel on Monday moored at the Westridge Marine Terminal in Vancouver, preparing to load the first cargo of crude oil from the recently expanded Trans Mountain pipeline (TMX), ship tracking data showed. Chartered by Canadian oil producer Suncor Energy (SU.TO) New Tab, opens new tab, the Marshall Islands-flagged vessel was expected to load about 550,000 barrels of Access Western Blend (AWB) for delivery to China, ship tracking data on Kpler showed. Trans Mountain said it expects to load the first vessel with oil from the expanded pipeline later this month. TMX, which will ship an additional 590,000 barrels per day (bpd) to Canada's Pacific coast from Alberta, began commercial operations this month after years of regulatory delays and construction setbacks. Flows on the pipeline and loadings from the Westridge Marine Terminal are being closely monitored by traders and shippers as the expansion gives Canadian producers more access to U.S. West Coast and Asian markets. Tightening supply of heavy crude has made Canadian oil more attractive to buyers around the world. However, logistical constraints at the Port of Vancouver could limit the number of shipments, traders and shipping sources have said. The Port of Vancouver and Suncor did not immediately reply to a requests for comments. Suncor said this month that it was leasing Aframax vessels in the Pacific and selling direct to customers, seeking to maximize profits on oil being shipped on TMX. Sign up here. https://www.reuters.com/business/energy/first-canadian-oil-export-cargo-expanded-trans-mountain-pipeline-set-load-2024-05-20/

2024-05-20 21:20

WASHINGTON, May 20 (Reuters) - Ford Motor Co (F.N) New Tab, opens new tab said on Monday it backs the Biden administration's moves to dramatically cut vehicle emissions through 2032, rejecting Republican arguments the new climate rules are bad for business. The second largest U.S. automaker (F.N) New Tab, opens new tab said it supports the Environmental Protection Agency's regulations announced in March to cut passenger vehicle fleetwide tailpipe emissions by nearly 50% by 2032 over 2027 levels. "Complying with emissions regulations requires lengthy advance planning, and Ford has taken steps to transform its business to ensure compliance with stricter emissions standards," the Dearborn-based automaker said. It said it welcomed the regulatory stability that the Multi-Pollutant Rule will provide, preventing the "possibility of flip-flopping or changing standards." Former President Donald Trump, who is seeking a return to the White House, has vowed to reverse the Biden rules that would boost electric vehicles. Earlier, a trade group representing General Motors (GM.N) New Tab, opens new tab, Toyota Motor (7203.T) New Tab, opens new tab, Volkswagen (VOWG_p.DE) New Tab, opens new tab, Ford and nearly all other major automakers on Monday said it supported two key aspects of the rule. The Alliance for Automotive Innovation filed in support of the EPA in including electric vehicles in fleetwide averaging of emissions and excluding upstream emissions from compliance calculations, but did not weigh in on the entire rule or the legality of the standards. Last month, 25 Republican-led states sued the EPA arguing the new regulations saying they are unlawful and unworkable. The auto alliance, which also includes Stellantis (STLAM.MI) New Tab, opens new tab, Honda Motor (7267.T) New Tab, opens new tab and Hyundai Motor (005380.KS) New Tab, opens new tab, said the two key provisions it is backing "are essential if vehicle manufacturers are to have any possibility of demonstrating compliance with the GHG reduction targets." Republican state officials argue the administration wants to transform the American passenger vehicle market through strict rules and force automakers to shift production to EVs. A group of 22 states led by California back the EPA's tailpipe emissions, saying they could be harmed if the EPA did not require future reductions in harmful vehicle emissions. The regulations are among the most significant environmental rules implemented under President Joe Biden, who has made tackling climate change a pillar of his presidency. The EPA has forecast that between 35% and 56% of new vehicles sold between 2030 and 2032 would be electric. The EPA said the final rules announced in March will cut emissions by 49% by 2032 over 2026 levels compared with 56% under its previous plan. EPA chief Michael Regan said the rule imposed no mandate on manufacturers to adopt electric vehicles. Sign up here. https://www.reuters.com/business/environment/automakers-back-key-parts-new-us-epa-vehicle-emissions-rules-2024-05-20/

2024-05-20 20:49

Nvidia up as brokerages raise PT ahead of results on Wed Deutsche Bank lifts 2024 year-end S&P 500 target to 5,500 Norwegian Cruise jumps after upping profit forecast Indexes: Dow down 0.49%, S&P up 0.09%, Nasdaq up 0.65% NEW YORK, May 20 (Reuters) - The Nasdaq closed at a record high on Monday while the S&P 500 gained slightly as technology stocks advanced ahead of Nvidia's highly anticipated earnings and investors gauged the timing of an interest rate cut by the Federal Reserve. The S&P 500 technology index (.SPLRCT) New Tab, opens new tab led gains among the 11 major S&P sectors, rising 1.32%, helped by chipmakers such as Nvidia, which advanced 2.49% ahead of its quarterly results on Wednesday. Investors will look for evidence in Nvidia's earnings that the AI chip leader can maintain its explosive growth and stay ahead of rivals. At least three brokerages lifted their Nvidia price targets, while peer Micron Technology (MU.O) New Tab, opens new tab climbed 2.96% after Morgan Stanley upgraded the memory chipmaker to "equal-weight" from "underweight." The PHLX semiconductor index (.SOX) New Tab, opens new tab rose 2.15%. "If they surprise to the upside Nvidia could spark a mini fury, although everything's kind of expensive, so it's hard to see a big move up about it," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco. "If the Fed starts to lower rates, that would really spark a rally but it doesn't seem like the data supports that yet." The Dow Jones Industrial Average (.DJI) New Tab, opens new tab fell 196.82 points, or 0.49%, to 39,806.77. The S&P 500 (.SPX) New Tab, opens new tab gained 4.86 points, or 0.09%, at 5,308.13 and the Nasdaq Composite (.IXIC) New Tab, opens new tab rose 108.91 points, or 0.65%, to 16,794.87. The Dow was weighed down by a 4.5% drop in JPMorgan (JPM.N) New Tab, opens new tab shares after CEO Jamie Dimon said he was "cautiously pessimistic" and said the company would not buy back its stock at current prices. A solid earnings season and signs inflation may be starting to cool again have reignited hopes for Fed rate cuts this year, pushing major averages to record levels. The blue-chip Dow (.DJI) New Tab, opens new tab closed above 40,000 points for the first time last week. Comments from Fed officials on Monday did little to alter expectations for cuts by the central bank, as they were reluctant to say inflation pressures were easing and several stressed the need for caution. Minutes of the Fed's latest monetary policy meeting are scheduled to be released on Wednesday. Markets are pricing in a 63.3% chance for a cut of at least 25 basis points (bps) at the September meeting, the CME's FedWatch Tool New Tab, opens new tabshowed. The recent rally has started to raise concerns about stock valuations, with the S&P 500 trading at a forward price-to-earning ratio of 20.8, well above its historic average of 15.9, according to LSEG data. Deutsche Bank raised its 2024 year-end S&P 500 target to 5,500 from 5,100 points, the highest among major brokerages, while Morgan Stanley forecast it would hit 5,400 by June 2025. Norwegian Cruise Line (NCLH.N) New Tab, opens new tab surged 7.56% after lifting its annual profit forecast. Advancing issues outnumbered decliners by a 1.14-to-1 ratio on the NYSE. On the Nasdaq, declining issues outnumbered advancers by a 1.01-to-1 ratio. The S&P 500 posted 58 new 52-week highs and four new lows while the Nasdaq recorded 222 new highs and 101 new lows. Volume on U.S. exchanges was 12.31 billion shares, compared with the 11.82 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-inch-up-with-fed-minutes-nvidia-results-tap-week-2024-05-20/