Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
When others can read the signs, can't they?
https://www.reuters.com/business/energy/norway-increases-number-new-oil-gas-drilling-permits-including-arctic-2024-01-16/
https://www.reuters.com/business/energy/market-be-short-oil-2025-onwards-occidental-ceo-davos-2024-01-16/
Https://www.barrons.com/articles/energy-stocks-could-rally-58201447?refsec=energy&mod=topics_energy
Energy Prices Are Falling, and the Stocks Are Out of Favor. That’s the Good News.
Energy stocks are out of favor. Fund managers had less exposure to energy stocks heading into 2024 than at any time since December 2020, according to the latest Bank of America Global Fund Managers Survey. With energy prices slipping, investors went from 4% more exposure to energy stocks than their benchmarks in November to 11% less exposure in December—the largest month-to-month decline since January 2016. They had 23% more exposure to tech than their benchmarks.
Then it got worse. This past Monday, Saudi Arabia cut its selling price for oil, sending Brent crude, the international benchmark, down 3.9%, to $75.73 a barrel. Natural gas prices fell, too, dropping 4.4%.
Still, it isn’t always bad for stocks when they’re out of favor. Investors who bought energy stocks in December 2020, the last time they were this out of favor, did very well. Roth MKM analyst Leo Mariani wrote that fund managers are “overly bearish” because they are convinced that oil demand is falling fast. Mariani expects demand to pick up, and for Brent crude to average $85 a barrel in 2024. “We would not advocate being underweight energy at this point in time,” he wrote.
PS I am 100% sure Stevo is NOT Itsaponzi, Therapist and Krak! Ponzi did not have 1% of Stevo's knowledge.
Https://archive.md/nK4CT
https://www.bloomberg.com/news/articles/2024-01-11/oil-tanker-embroiled-in-us-iran-tensions-is-boarded-off-oman?srnd=premium-europe
Extract from the letter from Gareth Davies to Ryan Crighton from Aberdeen & Grampian Chamber of Commerce : "In line with the intent and purpose of the Energy Security Investment Mechanism (ESIM)
discussion note, the Government is committed to ensuring the ESIM is designed in a way
that reflects the business environment the sector operates in, including the impact of
increased costs. The Government recognises that higher oil and gas prices may have had
an impact on the production costs of the oil and gas sector due to elevated global energy
demand in recent years. Accordingly, the Government has decided to adjust the ESIM
price thresholds in line with inflation in future tax years. Future adjustments to the
thresholds will be based on annual CPI, starting from April 2024 and using the preceding
December's CPI figure.
The Government will publish updated ESIM price thresholds before the start of each
financial year. Under current projections, the ESIM is not predicted to trigger before the
EPL's sunset date of March 2028.
Ministers appreciate the ongoing dialogue with industry. Thank you again for taking the
time to make me aware of these concerns.
Yours sincerely,
Gareth Davies MP
EXCHEQUER SECRETARY TO THE TREASURY
If anyone would still wonder why UK valuations and especially ours remains incredibly compressed : https://www.energyvoice.com/oilandgas/north-sea/545157/uk-government-concession-windfall-tax/
Try this link if you have a problem with opening the article : https://archive.md/wIymF
"The outlook does show, however, that the transition is likely to take longer than the most optimistic have anticipated, in large part because of a factor that’s often overlooked when analyzing the oil market: The world’s population is still growing. As Martijn Rats of Morgan Stanley puts it, “global consumption-per-capita has been remarkably stable at about 4.5 barrels-per-person-per-year since the late 1970s.” The relationship has survived high and low energy prices; economic booms and busts and technical advances. With the world set to add another billion people between now and 2037, reaching 9 billion, the slew of new consumers would damp the impact of innovations such as electric vehicles.
So while it’s early days, looking ahead to 2025 I see more of the same when it comes to oil demand — business as usual, rather than evidence of a transition away from fossil fuels."
https://www.bloomberg.com/opinion/articles/2024-01-10/energy-transition-a-very-early-look-at-the-oil-market-outlook-for-2025?srnd=premium-europe
In the UK, several companies are considered to be potential predators with strong balance sheets and cash flow to underpin asset or company acquisitions.
These include Harbour, Ithaca Energy, Serica Energy, EnQuest and Energean.
“EnQuest is interesting from the point of view of its tax losses, which could help facilitate deals,” said Zeus Capital analyst Daniel Slater.
“Serica is likely to make further acquisitions given the strength of its balance sheet, even accounting for investment in Buchan, which itself will help offset Energy Profits Levy liabilities,” added Slater, referring to UK industry taxes imposed after profits shot up in 2022.
Market sources tell Upstream that EnQuest is a firm acquisition target. It has four UK offshore production hubs and one in Malaysia, plus the sizeable Bressay and Bentley development prospects in the UK.
Potential buyers with financial wherewithal include Ithaca and Energean, according to market observers.
For the UK companies seeking to acquire production assets, opportunities will materialise as larger companies offload non-core assets, including Harbour and Eni, which is in the process of completing the acquisition of Neptune Energy.
Commentators say there is a speedbump in the UK, however, in the form of political instability, with the ruling Conservative Party projected to go down in flames in a national election later this year.
"I fear that the UK election uncertainty — in terms of what Labour pledges to do with the oil and gas fiscal regime and licensing — may put a brake on deals," said Panmure analyst Ashley Kelty.
Norway, by contrast, is seen as a beacon of stability, even if the tax take is high.
A take-over, even if that would happen at a nice premium -big premium very unlikely when you look at all share deals we 've witnessed in the last year- would nothing be short of a loss for LTH's. Our incredibly weak share price action doesn't give us any bargaining power. I hope that share price action doesn't pave the way to our CEO's surrender to undecent proposals.
I have posted this article before, but as there is a debate going on i don't mind posting it again. The style is American, but the nail is hit on the head nevertheless... https://pracap.com/just-smash-the-buybacks/?utm_medium=email&_hsmi=284220610&_hsenc=p2ANqtz-8mGwUi1UDbBkfydH3DJYt4jDyDxpEdGhXTckOeYu_C2htxWkiLzKTtWarJZmoZxputRAHt2OpXM7m667S3JIASMqr0D82Aj9crk1XhVln9K8OLirQ&utm_content=284220610&utm_source=hs_email
@oct23 : Thank you, perhaps the most correct/best and shortest introduction to the article is this : "wind power and net zero are built on a pyramid of deceit". https://www.zerohedge.com/energy/britains-net-zero-disaster-and-wind-power-scam
@Lochnagary : For the very first time, i think Stevo is indeed 100% wrong....https://www.offshore-technology.com/projects/solan-oil-field-north-sea-uk/
Someone who claims that he’s a leader but who has no followers is typically regarded as a fool. It’s different with climate. Politicians parade their green virtue – Skidmore is to quit the House of Commons, and he teaches net zero studies at Harvard’s Kennedy School – while voters get mugged with higher energy bills. Analysis of Britain’s Big Six energy companies’ regulatory filings reveals that fuel-input costs for gas and coal-fired power stations were flat from 2009 to 2020. Still, the average price per kilowatt hour (kWh) of electricity paid by households rose 67%, driven by high environmental levies to subsidize renewable-energy investors. Yet supposedly the cost of renewable energy has plummeted.
https://www.zerohedge.com/energy/britains-net-zero-disaster-and-wind-power-scam
We are not the only ones who need higher oil prices in order to prosper: https://www.bloomberg.com/news/articles/2024-01-05/permian-s-private-explorers-expect-modest-growth-jefferies-says
"Year-end EIA weekly oil storage reports are about as useful as asking a fruit for life advice. Refineries typically game the storage system for tax purposes, so at the end of every year, product storage typically builds, while crude storage declines. EIA's reported crude draw of ~5.5 million bbls was lower than what we had expected, but we attribute part of this to normal year-end seasonality." https://seekingalpha.com/article/4661197-dont-be-distracted-by-year-end-oil-data-look-ahead