The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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So far this year, the global upstream oil and gas market has seen more than $64 billion in mergers and acquisitions, and the year could still see more mega-deals, according to the latest report from Rystad Energy on Monday.
While recent deals have focused on the Permian Basin, Rystad says it is looking to other American shale patch venues for the next big deals amid an ongoing trend of consolidation.
The $64 billion in global M&A value booked so far this year is the best Q1 performance the industry has seen since 2019. The $64 billion also represents a 145% jump in M&A dealmaking in the industry compared to the same quarter of last year. North American upstream M&A accounted for almost $54 billion this year, representing around 83% or the total value of deals so far this year, Rystad said, as reported by Reuters.
According to Rystad, North American upstream deals for the first quarter of this year came in at $54 in value, and $80 billion in North American oil and gas assets remain up for sale. Rystad estimates that the American shale patch will account for the bulk of new M&A activity.
“The Permian has been the focal point for M&A activity in recent times, but that focus is waning as available assets in the basin become scarce. But with appetite still strong, deal-hungry players are looking outside the basin for acquisitions. A power shift could be on the cards, with non-Permian assets taking center stage in the future North American deals pipeline,” Rystad Energy’s Atul Raina, Vice President of Upstream Research, said in a report.
Attention will now shift to Bakken, Marcellus and Haynesville assets, with key companies still looking to divest non-core assets, including Chevron, which is seeking to divest up to $15 billion in assets by 2028
All eyes on results! Hopefully oil trading has had a banging quarter with the upward volatility in Q1 which will make up for refinery downtimes
I am here :))))))))))
Doesn’t look like anyone is coming out to play today.
Who would have thought an sp in the £5.20s would be boring.
Oil price still holding up well so far.
More Onwards and Upwards please
Https://www.insidermedia.com/news/north-east/bp-submits-plans-for-major-teesside-hydrogen-project
Saudi Arabia has warned the war between Israel and Hamas could have repercussions for the whole region and the world unless brought to a quicker end.
The kingdom called for regional stability on Sunday, at the start of talks organized by the World Economic Forum, taking place in Riyadh.
"I think cool-headed countries and leaders and people need to prevail, and you need to make sure that you actually de-escalate," Saudi Finance Minister Mohammed al-Jadaan said, as quoted by the New Arab.
A top concern within the context of the Israel-Hamas war is the security of oil supply, of course, with prices jumping every time there is news about a potential escalation of the conflict, and deflating once the danger passes.
Right now, bullish factors have the upper hand, with signs that both sides are ready to talk about a ceasefire this week. The news has weighed on oil prices, helped by the latest U.S. inflation report.
“The world is today walking a tightrope right now, trying to balance security and prosperity,” Saudi Arabia’s planning minister, Faisal al-Ibrahim told media at the event. “We meet at a moment when one misjudgment or one miscalculation or one miscommunication will further exacerbate our challenges.”
World Economic Forum president Borge Brende, however, sounded a positive note, saying that there was “some new momentum now in the talks around the hostages, and also for... a possible way out of the impasse we are faced with in Gaza”.
Reuters reported Sunday that a Hamas delegation will be traveling to Cairo today for ceasefire talks. The report came hours before the news broke that Israeli forces had attacked Rafah, killing at least 13 people. Before that, the media had reported Israel had agreed to address U.S. concerns about the humanitarian implications of such a strike
What’s good for markets is not necessarily good for all markets because the prospect of continued elevated interest rates is normally taken as bearish for oil because higher rates make the U.S. dollar more expensive and most global oil is traded in dollars. These close ties between U.S. monetary policy and oil prices have traders acting promptly, as evidenced by the fact that every time a delay in rate cuts is announced prices decline.
On the Middle Eastern front, Reuters reported on a statement by Hamas that they would be attending ceasefire talks in Cairo today, rekindling hopes for an end to the conflict. If that happens, oil will have further down to go as the risk of supply disruption would end with the fighting.
Bloomberg, for its part, quoted ING’s head of commodity strategy, Warren Patterson, as saying that “Geopolitical risks have eased considerably.” The Dutch bank still expects a substantial deficit in the oil market in the current quarter but “the outlook for the second half of the year is less clear with it largely depending on OPEC+ policy,” Patterson said.
Crude oil prices began the week with a loss, reversing the climb from last week after the latest U.S. inflation data suggested there will not be any rate cuts anytime soon.
Signals from Israel that a ceasefire with Hamas is still a possibility also helped bring oil down, with Brent crude slipping below $89 per barrel in midmorning Asian trading and West Texas Intermediate at a bit over $83.
On Friday, the Commerce Department reported an inflation rate of 2.7% for March in personal consumption expenditures, up from an annual rate of 2.5% in February.
"Markets should breathe a sigh of relief this morning," Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, told Reuters in comments on the figures. "Given the elevated levels of inflation, and this is the new normal for 2024, the market is going to need to get over hopes for Fed rate cuts."
What’s good for markets is not necessarily good for all markets because the prospect of continued elevated interest rates is normally taken as bearish for oil because higher rates make the U.S. dollar more expensive and most global oil is traded in dollars. These close ties between U.S. monetary policy and oil prices have
Hi Mark
Love your posts.Always very very informative
I am always positive especially when it comes to Bp
Looking forward to the coming weeks
Have a great weekend:)))))))
Hi Spights
I am glad you buried my poor attempt at weekend wit.
Research has shown though that people who use dark humour from time to time are often seen as more intelligent and more trustworthy and much more worthy of forgiveness.
Refering to Mrs Disabled and Mr Carer. I am certainly not referring at all to anyone suffering the tragedy of any actual disability but the usual suspects gaming the system for their non means tested monthly tax free giveaway. The 100,000s of 16 to 19 year old that are entitled to full personal independence payments for depression because there is not enough youth clubs or everyone else in having a great life on TikTok is a bit depressing. !!!
Have a great weekend Spights.
Mark
Yet more, such as the Royal Mail parent International Distributions Services and the music royalties company Hipgnosis Songs Fund, are in receipt of serious takeover approaches.
While frenetic periods of mergers and acquisitions are far from uncommon, bankers and investors point to a dearth of attractive new opportunities to deploy capital because the flow of initial public offerings has been so slow.
Many of the companies that London would have hoped to attract, including the private equity firm CVC Capital Partners and the chip designer ARM Holdings, opted to list in Amsterdam and New York respectively.
The perception of London's decline is being heightened by the decisions of boards to move their existing UK listings to other international exchanges, with TUI Travel and Flutter Entertainment, the gambling group behind Paddy Power, among those to relegate their London market presence.
Bosses of companies as large as Shell, the oil behemoth, have also begun to acknowledge publicly their frustration at what they perceive to be a gulf between their intrinsic valuation and that which the public markets are attaching to them.
Jeremy Hunt is convening a summit aimed at enticing more companies to London's stock market amid an accelerating exodus of businesses being picked off by overseas and financial predators.
Sky News has learnt that the Treasury has invited the bosses of some of Britain's most prominent private companies to attend a meeting next month at Dorneywood, the chancellor's weekend country residence.
Sources said the day-long event on 16 May would target entrepreneurs behind potential flotation candidates from the fintech and biotech sectors.
Bim Afolami, the City minister, and Lord Petitgas, the prime minister's chief business adviser, will also be present, alongside key government officials and executives from the London Stock Exchange, the sources added.
In the invitation, a copy of which has been seen by Sky News, the Treasury said attendees and the chancellor would "discuss the UK's capital markets and how they can support innovative, high-growth companies such as yours to achieve your growth ambitions".
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"The UK's capital markets play a key role in our economy: driving growth, creating jobs and facilitating investment.
"The government is committed to ensuring that the UK remains the best place for companies to grow, and is already taking forward an ambitious programme of reforms to improve the competitiveness of the UK."
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Dozens of companies, including the likes of digital banks Monzo and Starling Bank, are understood to have been on the invitation list.
The Dorneywood summit has been planned for several months, according to officials, who denied that it was being staged in response to a glut of companies which have announced in recent weeks that they are in receipt of takeover bids or that they would unilaterally delist from the London market.
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Chancellor Jeremy Hunt. Pic: PA
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Chancellor Jeremy Hunt. Pic: PA
Approaches this week for Anglo American, the £30bn mining giant, and Darktrace, the cybersecurity company, have exacerbated the impression of a growing 'de-equitisation' of the UK stock market.
Although neither of those deals have yet to be formally agreed, a string of others have, including International Paper's bid for DS Smith, the FTSE-100 paper and packaging group, which was revealed by Sky News last month.
Other companies which have agreed deals with suitors include Virgin Money, which is set to be bought by Nationwide in a £3bn deal.
Yet more, such as the Royal Mail parent International Distributions Services and the music royalties c
Hi all
Natgas prices have collapsed as the ramp up of production exceeded expectations, supply and demand. Production has now been cut back and demand and price will rise as a result be it at a zig zagging snails pace.
I expect It won't be too long before the 8 million non contributing umpenproletariat, the Chronically unemployed and unwashed and their ilk demand that the government drowns them again in 'free' wonga handouts and once again the farce of a pair of twenty five stone, Mr Disabled and MRS Carer are back on BBC News complaining about the decision to eat or heat while in the background Sky Glass and devoured Nandos and Greggs packaging can be clearly seen.
Earnings for Big Oil backpedal as natgas prices tumble | Reuters
https://www.reuters.com/markets/commodities/earnings-big-oil-backpaddle-natgas-prices-tumble-2024-04-26/
Charting can be very useful if talking high market cap which means FTSE is very limited unlike US market which is where the large trading occurs. So I find US markets, being so big, provide indicators useful in some degree understanding moves in the FTSE. BP. SHELL and GSK, for example, can be useful in UK charting.
The million dollar question.
Are they running flat out and only just managing to maintain the production numbers,in which case at some time possibly soon it comes off its plateau and starts to sink.
Or are they getting better and better at doing it with less rigs, and being very disciplined.
I’m going with the first option but that’s just my opinion ( or guess).
If it’s true OPEC will be very happy
Https://oilprice.com/Energy/Energy-General/US-Drilling-Activity-Slips.html
Interesting times
Buffa thanks for the comment.
Hope that means you are a Chartist.
Could do with making some sense of these sp swings.
From a charting/trading point of view interesting to see BP hitting resistance level at around 525p that originates from 2014/5. In theory should retrace next week but will watch closely.