2024-05-16 21:00
FORT MCMURRAY, Alberta, May 16 (Reuters) - Overnight rain helped firefighters stall a large wildfire near the Canadian oil sands city of Fort McMurray, Alberta, and wet weather on Thursday was expected to further aid containment efforts, local officials said. The region received rain for a few hours through the night and the forecast for the next few days is for more precipitation, officials for the Regional Municipality of Wood Buffalo, which includes Fort McMurray, said at a briefing. "This type of weather provides a good window for firefighters to make progress," wildfire information officer Josee St-Onge said. The fire stayed about 5.5 km (3.4 miles) from the landfill on the city's southern outskirts where crews are building a containment line. It is the only one out of 44 wildfires burning in Alberta deemed out of control, and St-Onge warned against complacency due to the rain, saying more work was needed to contain the blaze. Fort McMurray is the hub for most of Canada's oil output. A huge wildfire in 2016 forced the evacuation of 90,000 residents, burned down 2,400 buildings and idled more than 1 million barrels per day (bpd) of production. A smaller, separate wildfire that had ignited to the city's north was also being held and not creeping closer, officials said. There have been no reports of fire-related disruption to Alberta oil and gas production, though research firm Rystad Energy estimated that more than 2.1 million bpd of marketable oil sands output - or 2.6% of total crude oil and lease condensate supply - could be at risk if conditions materially worsen. The region has rain forecast every day until Monday, according to Environment Canada, though there is also a risk of thunderstorms and lightning that can ignite new fires. Some 6,600 people in four suburbs closest to the blaze were told to evacuate on Tuesday. Residents who have left will not be able to return until May 21 at the earliest. (This story has been refiled to say 'residents will not be able to return until at least May 21', in paragraph 10) Sign up here. https://www.reuters.com/world/americas/wildfire-near-canadian-oil-city-expected-be-subdued-thursday-says-local-2024-05-16/
2024-05-16 20:58
May 16 (Reuters) - Walmart (WMT.N) New Tab, opens new tab raised its full-year forecast and reported better-than-expected quarterly results on Thursday, betting that easing inflation will drive stronger sales of groceries and non-essential merchandise like clothing and electronics, sending its shares to a record high in their biggest one-day gain in four years. Some U.S. retailers in recent weeks have fanned concerns that consumer spending is waning, but behemoth Walmart is not one of them. The largest U.S. retailer sounded uniformly positive in its outlook Thursday - sending shares up 7% to an all-time high of $64.22. The rally was the sharpest single-day gain for Walmart's stock since March 2020, and it helped lift the Dow industrials (.DJI) New Tab, opens new tab past 40,000 for the first time. U.S. consumer prices rose less than expected in April, but domestic demand has shown signs of cooling as Americans struggle with higher rents, gas prices and car insurance premiums. In the 12 months through April, the consumer price index was up 3.4%, according to Bureau of Labor Statistics data released on Wednesday, though far below the 9.1% pace hit in June 2022. "These are not inflation-driven results," Walmart CEO Doug McMillon said on a post-earnings call. Results were driven by more visits to stores and the website by wealthier shoppers and the price gaps it is maintaining against rivals, McMillon said. In Thursday's report, Walmart said total U.S. comparable sales rose 3.9%, excluding fuel, in its first quarter ended April 30. The average bill at the cash register was flat but the number of transactions rose. Analysts expected those sales to rise 3.15%, according to LSEG. Online sales in the United States surged 22%, surpassing the 17% growth Walmart posted during the typically robust holiday season. Growth was driven by Walmart's pickup & delivery services and increased sales of items like men's, women's and children's apparel through its third-party marketplace, which now offers more than 420 million items of mostly discretionary products. Walmart attributed much of the online gains to households earning more than $100,000 per year. While Americans have generally managed to navigate through higher prices, prolonged inflation has sparked worries that lower-income consumers might be more pressured and potentially slow down an anticipated recovery in spending. Walmart executives said that lower-income consumers maintained their spending habits in the quarter but tended to prioritize less-expensive items. They also noted that the price gap between eating at home and dining outside had increased, boosting its grocery business, which accounts for about 60% of total revenues. A 45% increase in the number of food and consumables items it offered on discounts, which it calls rollbacks, in April resonated strongly with shoppers. "As we continue to work closely with our suppliers to lower cost, we're managing our ... competitive price gaps and customers are responding favorably, resulting in sustained sales growth and higher gross margins," Walmart's finance chief John David Rainey said. Gross margins rose about 0.4%, helped by newer business such as advertising and Walmart+ membership, Rainey said. Telsey Advisory analyst Joseph Feldman said Walmart's strong results could bode poorly for the rest of retail as its performance indicates it is taking market share. Target (TGT.N) New Tab, opens new tab reports results on May 22. The retailer reported first-quarter adjusted earnings of 60 cents per share, easily beating the 52-cent average forecast. Total revenue of $161.51 billion also topped estimates. For its fiscal year ending January 2025, Walmart expects sales to rise at the high end or slightly above its prior forecast of 3% to 4% growth, and adjusted profit per share to be at the high end or slightly above its prior estimate of $2.23 to $2.37. Sign up here. https://www.reuters.com/business/retail-consumer/walmart-lifts-full-year-sales-profit-forecast-2024-05-16/
2024-05-16 20:52
TORONTO, May 16 (Reuters) - Short seller Muddy Waters Capital said on Thursday that none of its newly proposed directors for Canadian miner Mayfair Gold's (MFG.V) New Tab, opens new tab board will receive any remuneration, in contrast to what it called the "inappropriate compensation" earned by the company's existing directors. Muddy Waters is seeking to replace Mayfair Gold's current board and replace its members with Muddy Water executives, saying the board was delaying the advancement of its key Fenn-Gib gold project and calling out the company's compensation structure. "No Muddy Waters director will be compensated, in contrast to the present situation where insiders appear to have treated both equity and cash as Monopoly money," Carson Block, founder and chief investment officer of Muddy Waters, told Reuters in an emailed statement. Block is preparing for a public showdown with the junior gold miner, as shareholders vote on June 5 proposal to remove the current board. Last month, Muddy Waters said its clients and principals had significant investments in Mayfair Gold and that the company needs a team that is focused on all stakeholders and operating under high standards of governance. In March, it said that in the future the firm could increase or decrease its control or direction over securities of the company through open market transactions, private agreements or otherwise. Mayfair Gold declined to comment. Mayfair Gold's board in January raised its CEO's annual compensation from C$357,000 to C$400,000 ($262,210 to $293,794) effective immediately. At the same time, the annual retainer fee for board members was increased to between C$30,000 and C$50,000 and the board chair's fee to between C$50,000 and C$75,000. The company said the compensation was benchmarked to its peer group. In a letter sent on May 9, Mayfair Gold's board made a last attempt to persuade shareholders to vote against the proposal, saying the list of individuals proposed by Muddy Waters lack experience that could set back the project and lead to the company's delisting. In 2021 the short seller launched a similar campaign against GT Gold. It took a majority position in the company and later sold it to Newmont Corporation (NEM.N) New Tab, opens new tab. ($1 = 1.3615 Canadian dollars) Sign up here. https://www.reuters.com/markets/commodities/muddy-waters-will-not-compensate-its-nominees-canadian-miner-mayfair-shareholder-2024-05-16/
2024-05-16 20:46
May 16 (Reuters) - The New York State Public Service Commission (NYPSC) on Thursday said that the average electricity prices for full-service residential customers are expected to be lower than last year contingent on location, demand, and market prices. Customers can expect a statewide average supply cost of $207.88 this summer, down nearly 3% from $231.95 previous year, NYPSC added. NYPSC said peak summer demand for electricity continues to decline due to energy efficiency initiatives. Commission said the peak forecasts in the upcoming years remain stable due to energy efficiency and system improvements. By 2034, the peak demand is expected to decrease by 6,436 MW. The commission said this summer, peak demand is forecast to be at 31,541 megawatt(MW), slightly higher than the prior year's actual peak of 30,206 MW. "The installed generating capacity for 2024 totals 36,990 MW, combining the installed generation capacity with other resources provides New York with a total of 40,733 MW worth of capacity resources for 2024, well above the expected need" "We will continue making investments in energy efficiency and the clean-energy grid that will help us all combat climate change and further stabilize energy prices long term," said Commission Chair Rory M. Christian. Extreme heat and rising electricity demand are expected to drive up power prices in Texas this summer, while the rest of the U.S. power markets are broadly pricing lower, according to analysts and data last week. Sign up here. https://www.reuters.com/business/energy/new-yorks-summer-average-electrical-prices-expected-drop-3-2024-05-16/
2024-05-16 20:34
May 16 (Reuters) - Norwegian energy company Equinor (EQNR.OL) New Tab, opens new tab has received approval from the New York State Public Service Commission to start building its Empire Wind 1 offshore wind farm, Governor Kathy Hochul said on Thursday. Electricity generated from offshore wind farms is important to U.S. and state goals of cutting greenhouse gas emissions. But the industry has been hit this year by inflation, higher interest rates and supply chain delays. In January, Equinor and BP (BP.L) New Tab, opens new tab terminated their agreement to sell power to New York state from their proposed Empire Wind 2 offshore wind farm. The 810-megawatt (MW) Empire Wind 1 project will contribute to the state's goal of developing 9,000 MW of offshore wind power by 2035, Hochul said in a statement. Empire Wind 1 will connect into the transmission system for New York City. The approval is the last one Equinor required for construction to begin. In March, Equinor said it had received approval from the Federal Energy Regulatory Commission. The wind farm is scheduled to start producing power in 2026. Sign up here. https://www.reuters.com/business/energy/equinors-empire-wind-1-offshore-project-gets-new-york-construction-approval-2024-05-16/
2024-05-16 20:21
May 16 (Reuters) - Oil and gas producer Crescent Energy (CRGY.N) New Tab, opens new tab has agreed to buy rival SilverBow Resources (SBOW.N) New Tab, opens new tab for $2.1 billion, a deal which would create the second-largest operator in the Eagle Ford basin in south Texas. The agreement comes as SilverBow has faced a challenge from its largest shareholder, Kimmeridge Energy Management, which had sought to buy the company and was aiming to unseat three current directors and install its own nominees at SilverBow's upcoming annual shareholder meeting. For Crescent, the deal would expand its position in the Eagle Ford, which is close to export facilities along the Gulf Coast. The tie-up follows an industry-wide consolidation trend to build economies of scale and hydrocarbon reserves, including Chevron (CVX.N) New Tab, opens new tab offering to buy Hess (HES.N) New Tab, opens new tab and Exxon (XOM.N) New Tab, opens new tab acquiring Pioneer Natural Resources. "We feel really good about the position in the Eagle Ford, and we would love to continue to get better and bigger," a Crescent executive said on a call with analysts. Under the terms of the deal, SilverBow shareholders would get 3.125 shares of Crescent Class A common stock for each share held, along with an option to get all or part of the proceeds in cash at a value of $38 per share. The maximum value of the deal's cash component was $400 million, the companies said. Shares in SilverBow closed 13.2% higher, giving it a market capitalization around $935 million. Crescent's stock fell 5%. SilverBow was set to learn whether shareholders would back Kimmeridge's board challenge at its annual meeting on May 21. The meeting will now take place May 29. Earlier this year, SilverBow had rejected a buyout offer from Kimmeridge that valued it at $34 per share. The deal would have merged SilverBow with Kimmeridge's own south Texas operations to create a natural-gas focused producer, at an approximate 7% share price premium. Sources close to SilverBow said Crescent's offer, which emerged over recent months, promised a higher per-share premium than Kimmeridge and also created a combined company with more oil-weighted production. Kimmeridge said in a statement it was studying the Crescent offer and looked forward to learning more from management. The deal premium of 17% is a bit higher than recent upstream transactions, said Andrew Dittmar, principal analyst at Enverus Intelligence, adding it would be challenging for Kimmeridge to make a more attractive counterproposal. The Crescent offer would result in Crescent shareholders owning between 69% and 79% of the combined company, depending on the ultimate cash component. Both sets of shareholders must vote to approve the transaction, which aims to close by the end of the third quarter. Sign up here. https://www.reuters.com/markets/deals/crescent-energy-nears-21-billion-deal-silverbow-bloomberg-news-reports-2024-05-16/
