Energy stocks are set to open lower, following a roughly 1.2% drop in S&P 500 index futures (as of 8:50 a.m. ET) as inflation and rising rates continue to weigh on investor sentiment. Additionally, a FedEx earnings and recession warning is contributing to growing calls from the business community for an impending downturn. Trading volumes will be high today as quarterly indices, stock options and futures expire today, also known as “quadruple witching”.

Oil prices were broadly flat on Friday, but on track for a weekly decline on fears of sharp interest rate hikes that are expected to dampen global economic growth and fuel demand. Both benchmarks are heading for third consecutive weekly losses, partly hurt by a strong US dollar, which makes oil more expensive for buyers using other currencies. The dollar index held near last week’s high above 110. Investors are vigilant for a drop in demand, which follows the IEA’s outlook of near zero growth oil demand in the fourth quarter due to a weaker demand outlook in China. “The IMF and the World Bank have both warned that the global economy could tip into recession next year. This is bad news for the demand side of the oil coin and comes a day after forecasts by the ‘IEA (on) oil demand,’ said PVM analyst Stephen. Brennock. “Recession fears coupled with higher interest rate expectations in the United States have created a powerful bearish cocktail.”

Natural gas futures are 10 cents lower, trading around $8.20, after yesterday’s declines. Weighing factors include forecasts of a warmer than normal shoulder season and weekly storage construction above expectations reported by the EIA yesterday.

BY SECTOR:

INTEGRATED IN THE UNITED STATES

No significant news.

INTERNATIONAL INTEGRATED

AP reported that BP reached a $2.75 million settlement for air pollution from its largest refinery after environmentalists complained of repeated emissions violations at the Whiting plant in Indiana.

Enjoy, Eni’s car-sharing service, goes electric in Bologna, with the introduction in its fleet of city cars XEV YOYO equipped with a battery exchange system.

The service of the Commission for the protection of competition has received notification of a concentration operation concerning the proposed acquisition of the share capital of VGP Holdings LLC (international company of products division of Valvoline) by Saudi oil companythrough Aramco Overseas Company B.V.

Shell said he was “unaffected” by the German government trusting the 233,000 barrel-per-day PCK Schwedt oil refinery, effectively taking control of its Russian majority owner Rosneft.

TotalEnergies reported unauthorized emissions from Tank 941 were emitted due to a leak at the Port Arthur, Texas refinery.

CANADIAN INTEGRATED

No significant news.

E&PS United States

Devon Energy announced that the company’s board of directors plans to appoint Barbara Baumann as chair of the board, succeeding Dave Hager, who has notified the board of his intention to retire from the board in January 2023.

CANADIAN E&PS

Scotiabank downgraded Vermilion Energy sector performance from sector outperformance.

OIL SERVICES

CES Energy Solutions announced that it will pay a cash dividend of $0.016 per common share on October 14, 2022 to shareholders of record at the close of business on September 30, 2022.

Granite construction announced that its board of directors has declared a quarterly cash dividend of $0.13 per common share. The dividend is payable on October 14, 2022 to all shareholders of record at the close of business on September 30, 2022.

The Securities and Exchange Commission has instructed Granite construction and its former senior vice president, Dale Swanberg, of fraud for inflating the financial performance of the main Swanberg-run subdivision. In 2021, Granite restated its 2017 to 2019 financial statements to correct revenue and profit margin errors allegedly caused by Swanberg’s misconduct. The company agreed to pay $12 million to settle the SEC charges.

Shawcor announced that it has filed a notice of intention with the Toronto Stock Exchange to initiate a normal course issuer bid for the Company’s shares, the implementation of which remains subject to the approval of the TSX. Pursuant to the Offer, Shawcor intends to purchase for cancellation up to 10% of Shawcor’s public float, subject to a maximum of C$25 million in aggregate repurchases of common shares in based on the actual price paid for such Common Shares purchased pursuant to the Offer.

DRILLERS

No significant news.

REFINERS

No significant news.

MLPS & PIPELINES

The Ontario Energy Board has accepted voluntary compliance assurance from Enbridge Gas, the price-regulated gas distributor that serves the majority of natural gas customers in the province. This AVC follows an OEB review of Enbridge’s performance against certain customer service quality requirements set out in the OEB’s Gas Distribution Access Rule. Under this AVC, Enbridge will pay an administrative monetary penalty of $250,000.

HF Sinclair announced the appointment of Atanas H. Atanasov as Executive Vice President and Chief Financial Officer of HF Sinclair effective September 30, 2022, and Holly Energy Partners, LP announced the appointment of Michael C. Jennings as President of Holly Logistic Services, LLC HLS is the ultimate general partner of HEP. Richard L. Voliva III, who served as executive vice president and chief financial officer of HF Sinclair and president of HLS, agreed to a mutual separation with HF Sinclair and HLS.

MARKET COMMENTARY

Wall Street futures fell after logistics industry leader FedEx withdrew its financial forecasts and recession warnings from the World Bank and International Monetary Fund. European stocks were also trading in the red. The Japanese Nikkei closed lower. Gold prices fell as expectations of a huge rate hike from the Fed next week boosted dollar and Treasury yields. Oil prices stabilized but were on track for a weekly decline. Later today, the University of Michigan is expected to release its preliminary Consumer Sentiment Index for September.

The Nasdaq Advisory Services Energy Team is part of the Nasdaq Advisory Services, the most experienced team in the industry. The team provides unparalleled shareholder analysis, a comprehensive view of trading and investor activity, and insights on how best to manage investor relations outreach efforts. If you have any questions, please contact Tamar Essner.

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