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Oil & Gas Atlas
Strong start to 1Q11 results
Energy Market Indices WoW Changes
⇒ S&P/TSX Energy Index: +0.8%
⇒ S&P 500 E&P Index: +3.2%
⇒ Oil Service Sector Index: -0.9%
⇒ UK FTSE Oil & Gas Producers Index: +4.6%
⇒ Asia Pacific Oil & Gas Producers Index: -0.5%
Weekly Market Recap
Last week saw crude markets continue to march higher, despite the large inventory
build reported last Wednesday by the DOE of +6.2mmbbl (vs +1.7mmbbl expected).
Inventory builds appear to be supported in the refining space, where gross
throughput appears to be holding near the 14mmbbl/d range due to unplanned
outages. Gasoline has continued its month-long streak of price increases, which was
supported by a 2.5mmbbl draw (vs -1.0mmbbl expected). Distillates also fell by
1.8mmbbl (vs the +0.3mmbbl expected build). Natural gas prices rose to the highest
level in more than three months, as EIA reported an inventory build of +31bcf, lower
than Macquarie’s forecast +37bcf and +38bcf consensus. Additionally, hot weather
forecasts in the southern US are expected for the second week of May, which could
see increased demand for air conditioning. US natural gas rig count was 882 as of
last week according to Baker Hughes.
In North America, 1Q11 earnings releases for the large caps were in full force, with
Canadian Oil Sands, Cenovus, Husky, Imperial Oil, and Nexen reporting results. As
expected, Cenovus reported strong downstream earnings on the back of
strengthened refining margins, which were C$180m, far exceeding company
guidance of C$25–75m and our internal estimate of C$112m. Husky reported a
massive beat on cashflow, with all major business segments, except for upgrading,
beating estimates. Also notable was Canadian Oil Sands’ dividend increase by
C$0.10/sh to C$0.30/sh due to higher crude prices. COS’ dividend yield is now 3.5%.
In the US, ExxonMobil reported nearly US$11bn in proft, a 69% increase YoY.
ConocoPhillips reported profit of ~US$3bn.
Last week’s start of the 1Q11 European Integrated reporting offered few remarkable
distractions to the Royal Wedding! BP, Eni, Shell and Total all reported solid
operational results. The general trend has been for upstream earnings to marginally
surprise on the downside (maintenance, cost pressures, tax) while downstream
earnings (non-refining) surprised on the upside. Shell’s clean net income of $6.2bn
was a solid 5% beat versus consensus with a robust contribution from its
downstream marketing and trading businesses.
Elsewhere, Max Petroleum commenced drilling the ZMA-ET2 appraisal well and
announced it has entered into a contract with Saipem for a rig to drill two wells in its
pre-salt prospects. Salamander spudded its Dao Ruang-3 appraisal well onshore
Thailand.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Oil & Gas Atlas
Strong start to 1Q11 results
Energy Market Indices WoW Changes
⇒ S&P/TSX Energy Index: +0.8%
⇒ S&P 500 E&P Index: +3.2%
⇒ Oil Service Sector Index: -0.9%
⇒ UK FTSE Oil & Gas Producers Index: +4.6%
⇒ Asia Pacific Oil & Gas Producers Index: -0.5%
Weekly Market Recap
Last week saw crude markets continue to march higher, despite the large inventory
build reported last Wednesday by the DOE of +6.2mmbbl (vs +1.7mmbbl expected).
Inventory builds appear to be supported in the refining space, where gross
throughput appears to be holding near the 14mmbbl/d range due to unplanned
outages. Gasoline has continued its month-long streak of price increases, which was
supported by a 2.5mmbbl draw (vs -1.0mmbbl expected). Distillates also fell by
1.8mmbbl (vs the +0.3mmbbl expected build). Natural gas prices rose to the highest
level in more than three months, as EIA reported an inventory build of +31bcf, lower
than Macquarie’s forecast +37bcf and +38bcf consensus. Additionally, hot weather
forecasts in the southern US are expected for the second week of May, which could
see increased demand for air conditioning. US natural gas rig count was 882 as of
last week according to Baker Hughes.
In North America, 1Q11 earnings releases for the large caps were in full force, with
Canadian Oil Sands, Cenovus, Husky, Imperial Oil, and Nexen reporting results. As
expected, Cenovus reported strong downstream earnings on the back of
strengthened refining margins, which were C$180m, far exceeding company
guidance of C$25–75m and our internal estimate of C$112m. Husky reported a
massive beat on cashflow, with all major business segments, except for upgrading,
beating estimates. Also notable was Canadian Oil Sands’ dividend increase by
C$0.10/sh to C$0.30/sh due to higher crude prices. COS’ dividend yield is now 3.5%.
In the US, ExxonMobil reported nearly US$11bn in proft, a 69% increase YoY.
ConocoPhillips reported profit of ~US$3bn.
Last week’s start of the 1Q11 European Integrated reporting offered few remarkable
distractions to the Royal Wedding! BP, Eni, Shell and Total all reported solid
operational results. The general trend has been for upstream earnings to marginally
surprise on the downside (maintenance, cost pressures, tax) while downstream
earnings (non-refining) surprised on the upside. Shell’s clean net income of $6.2bn
was a solid 5% beat versus consensus with a robust contribution from its
downstream marketing and trading businesses.
Elsewhere, Max Petroleum commenced drilling the ZMA-ET2 appraisal well and
announced it has entered into a contract with Saipem for a rig to drill two wells in its
pre-salt prospects. Salamander spudded its Dao Ruang-3 appraisal well onshore
Thailand.
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