VAALCO Energy (NYSE:EGY) Stock

VAALCO Energy

VAALCO Energy Inc is an independent energy company operating in the United States. It is principally engaged in the acquisition, exploration, development, and production of crude oil and natural gas. The company operates through geographical segments namely Gabon, Egypt, Canada, Equatorial Guinea and Corporate and Other. The company generates maximum revenue from the Gabon segment.

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YPF Sociedad Anónima (NYSE: YPF), Argentina&#39;s state-owned energy company, has announced that it will be lowering fuel prices across the country, starting from Oct. 1, 2024. The company announced a 4% reduction in gasoline prices and a 5% reduction in diesel prices.

YPF Reduces Fuel Prices Amid Inflationary Pressures in Argentina

Earnings

Large Cap

BP plc (NYSE: BP), a leading UK-based energy company, has announced plans to sell its onshore wind business in the United States. This marks a strategic shift as the energy giant refocuses on its solar partnership and other renewable energy sources.

BP Plans to Sell U.S. Onshore Wind Division Amid Strategic Shift

BP plc (NYSE: BP), a leading UK-based energy company, has enlisted American Bureau of Shipping (&#34;ABS&#34;) for a range of services related to the floating production unit (FPU) for its Kaskida development in the U.S. Gulf of Mexico.

BP Taps ABS for Key Kaskida FPU Services in the Gulf of Mexico

VAALCO Energy Inc

ENERGY FINDERS INC by Energy Finders, Inc.

Energy Finders Inc

VAALCO Energy Marks Major Step In Côte d'Ivoire Offshore Project, FPSO Set For Dubai Refurbishment

Highlights and Key Items:
<ul>
<li>Recorded full year 2024 sales volumes of 24,100 to 24,600 working interest ("WI") barrels of oil equivalent per day ("BOEPD"), at the midpoint of its guidance range of 23,500 to 25,100 WI BOEPD;
<ul>
<li>Full year 2024 sales volumes were 19,400 to 19,800 net revenue interest ("NRI") BOEPD, at the midpoint of the Company's guidance range of 18,800 to 20,300 NRI BOEPD;</li>
</ul>
</li>
<li>Generated Q4 2024 sales volumes of about 23,600 to 24,000 WI BOEPD, or 19,100 to 19,500 NRI BOEPD, both within guidance;</li>
<li>Produced between 24,550 and 25,050 WI BOEPD for full year 2024, in line with the midpoint of its full year guidance range of 24,100 to 25,400 WI BOEPD;
<ul>
<li>Full year 2024 production volumes were 19,800 to 20,200 NRI BOEPD, above the midpoint of the Company's guidance range of 19,300 to 20,600 NRI BOEPD; and</li>
</ul>
</li>
<li>Delivered Q4 2024 production of about 25,100 to 25,600 WI BOEPD, or 20,600 to 21,000 NRI BOEPD, in line with guidance.</li>
</ul>

VAALCO Energy Reports Record 2024 Sales Volumes Of 24,100-24,600 BOEPD, Exceeding Guidance Midpoints

2024 Guidance:
The Company has provided third quarter 2024 guidance and updated its full year 2024 guidance. All of the quarterly and annual guidance is detailed in the tables below.
<figure class="table"> 
<table>
<tbody>
<tr>
<td>FY 2024</td>
<td>Gabon</td>
<td>Egypt</td>
<td>Canada</td>
<td>Côte d'Ivoire</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Production (BOEPD)</td>
<td>WI</td>
<td>24100 - 25400</td>
<td>8500 - 8900</td>
<td>10100 - 10600</td>
<td>2600 - 2800</td>
<td>2900 - 3100</td>
</tr>
<tr>
<td>Production (BOEPD)</td>
<td>NRI</td>
<td>19300 - 20600</td>
<td>7400 - 7800</td>
<td>6800 - 7300</td>
<td>2200 - 2400</td>
<td>2900 - 3100</td>
</tr>
<tr>
<td>Sales Volume (BOEPD)</td>
<td>WI</td>
<td>23500 - 25100</td>
<td>7700 - 8300</td>
<td>10100 - 10600</td>
<td>2600 - 2800</td>
<td>3100 - 3400</td>
</tr>
<tr>
<td>Sales Volume (BOEPD)</td>
<td>NRI</td>
<td>18800 - 20300</td>
<td>6700 - 7200</td>
<td>6800 - 7300</td>
<td>2200 - 2400</td>
<td>3100 - 3400</td>
</tr>
<tr>
<td>Production Expense (millions)</td>
<td>WI &amp; NRI</td>
<td>$162.5 - $176.5 MM</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Production Expense per BOE</td>
<td>WI</td>
<td>$18.00 - $20.00</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Production Expense per BOE</td>
<td>NRI</td>
<td>$22.50 - $25.50</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Offshore Workovers (millions)</td>
<td>WI &amp; NRI</td>
<td>$0 - $0 MM</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Cash G&amp;A (millions)</td>
<td>WI &amp; NRI</td>
<td>$21.0 - $25.0 MM</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>CAPEX excluding acquisitions (millions)</td>
<td>WI &amp; NRI</td>
<td>$110 - $130 MM</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>DD&amp;A ($/BOE)</td>
<td>NRI</td>
<td>$19.00 - $23.00</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
</tbody>
</table>
</figure>

Guidance

VAALCO Energy Expects Q4 2024 NRI Sales To Be Between 18,600 And 20,800 BOEPD

VAALCO Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EGY#NYSE">EGY</a>) reported quarterly earnings of $0.08 per share which missed the analyst consensus estimate of $0.14 by 42.86 percent. This is a 14.29 percent increase over earnings of $0.07 per share from the same period last year. The company reported quarterly sales of $140.334 million which beat the analyst consensus estimate of $135.317 million by 3.71 percent. This is a 20.70 percent increase over sales of $116.269 million the same period last year.

Earnings Beats

Earnings Misses

VAALCO Energy Q3 2024 Adj. EPS $0.08 Misses $0.14 Estimate, Sales $140.334M Beat $135.317M Estimate

<h3>Companies Reporting Before The Bell</h3>
• Global Ship Lease (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) is projected to report quarterly earnings at $2.41 per share on revenue of $174.31 million. 
• Monday.Com (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNDY#NASDAQ">MNDY</a>) is projected to report quarterly earnings at $0.63 per share on revenue of $246.09 million. 
• Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>) is likely to report quarterly earnings at $0.53 per share on revenue of $4.46 billion. 
• ICL Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICL#NYSE">ICL</a>) is expected to report quarterly earnings at $0.09 per share on revenue of $2.03 billion. 
• Lincoln Educational Servs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LINC#NASDAQ">LINC</a>) is projected to report quarterly earnings at $0.09 per share on revenue of $110.77 million. 
• Strawberry Fields REIT (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/STRW#AMEX">STRW</a>) is estimated to report earnings for its third quarter. 
• Sapiens Intl Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPNS#NASDAQ">SPNS</a>) is projected to report quarterly earnings at $0.38 per share on revenue of $140.07 million. 
• Nuwellis (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NUWE#NASDAQ">NUWE</a>) is projected to report quarterly loss at $1.28 per share on revenue of $2.36 million. 
• GEO Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEO#NYSE">GEO</a>) is estimated to report earnings for its third quarter. 
<h3>Companies Reporting After The Bell</h3>
• Grab Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GRAB#NASDAQ">GRAB</a>) is expected to report quarterly loss at $0.01 per share on revenue of $691.80 million. 
• Ispire Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ISPR#NASDAQ">ISPR</a>) is estimated to report quarterly loss at $0.05 per share on revenue of $52.81 million. 
• Talos Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TALO#NYSE">TALO</a>) is estimated to report quarterly loss at $0.05 per share on revenue of $500.03 million. 
• Team (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TISI#NYSE">TISI</a>) is estimated to report earnings for its third quarter. 
• Mineralys Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MLYS#NASDAQ">MLYS</a>) is expected to report earnings for its third quarter. 
• Live Nation Entertainment (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LYV#NYSE">LYV</a>) is likely to report quarterly earnings at $1.71 per share on revenue of $8.09 billion. 
• Gatos Silver (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GATO#NYSE">GATO</a>) is projected to report earnings for its third quarter. 
• Yalla Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YALA#NYSE">YALA</a>) is likely to report earnings for its third quarter. 
• Archrock (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AROC#NYSE">AROC</a>) is estimated to report quarterly earnings at $0.27 per share on revenue of $283.55 million. 
• Ampco-Pittsburgh (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AP#NYSE">AP</a>) is likely to report earnings for its third quarter. 
• FGI Industries (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FGI#NASDAQ">FGI</a>) is estimated to report quarterly earnings at $0.03 per share on revenue of $30.69 million. 
• Bioceres Crop Solutions (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIOX#NASDAQ">BIOX</a>) is expected to report quarterly earnings at $0.09 per share on revenue of $120.80 million. 
• RMR Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RMR#NASDAQ">RMR</a>) is estimated to report quarterly earnings at $0.38 per share on revenue of $220.35 million. 
• Assertio Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASRT#NASDAQ">ASRT</a>) is estimated to report quarterly loss at $0.04 per share on revenue of $28.87 million. 
• Beyond Air (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/XAIR#NASDAQ">XAIR</a>) is projected to report quarterly loss at $0.28 per share on revenue of $1.04 million. 
• Bridger Aerospace Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAER#NASDAQ">BAER</a>) is estimated to report quarterly earnings at $0.46 per share on revenue of $57.50 million. 
• Aterian (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ATER#NASDAQ">ATER</a>) is expected to report quarterly loss at $0.55 per share on revenue of $26.01 million. 
• QuickLogic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QUIK#NASDAQ">QUIK</a>) is likely to report quarterly loss at $0.05 per share on revenue of $4.20 million. 
• VAALCO Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EGY#NYSE">EGY</a>) is estimated to report quarterly earnings at $0.17 per share on revenue of $145.89 million. 
• Assured Guaranty (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGO#NYSE">AGO</a>) is projected to report quarterly earnings at $1.36 per share on revenue of $201.37 million. 
• Stereotaxis (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/STXS#AMEX">STXS</a>) is likely to report quarterly loss at $0.05 per share on revenue of $7.10 million. 
• NET Power (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NPWR#NYSE">NPWR</a>) is estimated to report quarterly loss at $0.09 per share on revenue of $3.00 million. 
• Luminar Technologies (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LAZR#NASDAQ">LAZR</a>) is expected to report quarterly loss at $0.17 per share on revenue of $18.68 million. 
• James River Gr Hldgs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JRVR#NASDAQ">JRVR</a>) is estimated to report quarterly earnings at $0.15 per share on revenue of $146.56 million. 
• Crescent Capital BDC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CCAP#NASDAQ">CCAP</a>) is estimated to report quarterly earnings at $0.57 per share on revenue of $48.69 million. 
• IAC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IAC#NASDAQ">IAC</a>) is estimated to report quarterly loss at $0.28 per share on revenue of $923.69 million. 
• Angi (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ANGI#NASDAQ">ANGI</a>) is expected to report quarterly earnings at $0.00 per share on revenue of $298.54 million. 
• Intevac (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IVAC#NASDAQ">IVAC</a>) is expected to report quarterly loss at $0.15 per share on revenue of $11.50 million. 
• Nevro (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVRO#NYSE">NVRO</a>) is likely to report quarterly loss at $0.81 per share on revenue of $93.07 million. 
• Zeta Global Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZETA#NYSE">ZETA</a>) is likely to report quarterly earnings at $0.17 per share on revenue of $248.65 million. 
• DoubleDown Interactive (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DDI#NASDAQ">DDI</a>) is estimated to report quarterly earnings at $0.55 per share on revenue of $85.43 million. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

ANGI

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ASRT

ATER

BAER

BIOX

CCAP

GATO

GRAB

ISPR

IVAC

JRVR

LAZR

LINC

MLYS

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NUWE

NVRO

QUIK

SPNS

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Earnings Scheduled For November 11, 2024

VAALCO Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EGY#NYSE">EGY</a>) will release its quarterly earnings report on Monday, 2024-11-11. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate VAALCO Energy to report an earnings per share (EPS) of $0.17.
The announcement from VAALCO Energy is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
<h3>Earnings History Snapshot</h3>
The company's EPS beat by $0.09 in the last quarter, leading to a 8.38% increase in the share price on the following day.
Here's a look at VAALCO Energy's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
<th>Q3 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.13</td>
<td>0.20</td>
<td>0.12</td>
<td>0.20</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.22</td>
<td>0.06</td>
<td>0.37</td>
<td>0.07</td>
</tr>
<tr>
<td>Price Change %</td>
<td>8.0%</td>
<td>-4.0%</td>
<td>20.0%</td>
<td>-7.000000000000001%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1731078098_0.png" alt="eps graph" />
<h3>Market Performance of VAALCO Energy's Stock</h3>
Shares of VAALCO Energy were trading at $5.6 as of November 07. Over the last 52-week period, shares are up 35.52%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. 
<a href="https://www.benzinga.com/quote/EGY/earnings">To track all earnings releases for VAALCO Energy visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

What's Next: VAALCO Energy's Earnings Preview

YPF Sociedad An&oacute;nima (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ypf#NYSE">YPF</a>), Argentina&#39;s state-owned energy company, has announced that it will be lowering fuel prices across the country, starting from Oct. 1, 2024. The company announced a 4% reduction in gasoline prices and a 5% reduction in diesel prices. However, the pump prices will reflect a 1% reduction in gasoline prices and 2% in diesel prices. The devaluation of the Argentine peso and an increase in taxes led to a 3% rise in fuel prices, which partially reduced the full benefit of the price cut.
<h2>YPF&#39;s Fair Pricing Strategy</h2>
YPF considers several factors before setting the prices, including local and international market dynamics as well as fuel production costs as it intends to stick to a fair pricing strategy for fuels. Per the company&#39;s statement, the reduction in fuel prices is a reflection of the declining trend in the global Brent crude oil prices. The state-owned energy firm has reportedly lowered fuel prices for the first time since 2019.
Argentina has witnessed a cumulative 51% rise in gasoline prices so far. According to source, the year-over-year increase in gas prices stood at a staggering 340% in September. YPF has successfully struck a balance between local fuel prices and international prices over the past eight months, which should enable it to make future price adjustments based on international Brent crude prices alongside other local factors associated with costs.
<h2>Economic Challenges in Argentina</h2>
Argentina has been grappling with a high rate of inflation and instability in the value of its currency. As such, the reduction in fuel prices may have a significant impact on the economy. Easing up fuel prices by YPF should reduce the burden on Argentina&#39;s consumers and its businesses by lowering transportation expenses. As Argentina&#39;s largest oil company, YPF&#39;s decision carries substantial weight and may influence other companies in the industry to do the same, benefitting consumers all over Argentina.&nbsp;
<h2>YPF&#39;s Zacks Rank and Key Picks</h2>
Currently, YPF carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy&nbsp;sector are&nbsp;PEDEVCO Corp. (AMEX:PED),&nbsp;Archrock Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aroc#NYSE">AROC</a>) and VAALCO Energy (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/egy#NYSE">EGY</a>). PEDEVCO and Archrock presently sport a Zacks Rank #1 (Strong Buy) each, whereas VAALCO Energy carries a Zacks Rank #2 (Buy).
PEDEVCO is engaged in the acquisition and development of energy assets in the United States and Pacific Rim countries. PED stands to benefit from its holdings in the Permian Basin, one of the most prolific oil-producing regions in the United States, as well as in the D-J Basin in Colorado, which includes more than 150 high-quality drilling locations. Combined with bullish oil prices, this is expected to boost the company&#39;s production and overall profitability.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
VAALCO Energy is an independent energy company, involved in upstream business operations with a diversified presence in Africa and Canada and have a large inventory of drilling locations in the premium Acreage.
<a href="https://www.zacks.com/stock/news/2345294/ypf-reduces-fuel-prices-amid-inflationary-pressures-in-argentina?cid=CS-BENZ-FT-analyst_blog|company_news_energy_sector-2345294">To read this article on Zacks.com click here.</a>

BP plc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bp#NYSE">BP</a>), a leading UK-based energy company, has announced plans to sell its onshore wind business in the United States. This marks a strategic shift as the energy giant refocuses on its solar partnership and other renewable energy sources. The move, which came amid challenges in the wind sector, signals BP&#39;s shift from certain renewables despite previous efforts to diversify its energy portfolio.
<h2>BP to Exit Onshore Wind</h2>
The company revealed its intention to sell BP Wind Energy, which holds interests in 10 onshore wind projects across seven U.S. states, with a combined generating capacity of 1.3 gigawatts (GW). BP cited the misalignment of the business with its future growth strategies as the primary reason behind the sale. William Lin, BP&#39;s executive vice president for gas and low-carbon energy, stated that the wind business &quot;is likely to be of greater value for another owner.&quot;
The onshore wind sector has encountered significant challenges of late, including high material costs, rising interest rates and supply-chain issues. Several companies in the sector have been compelled to cancel or renegotiate contracts, laying pressure on BP&#39;s wind assets.
<h2>Focus Shifts to Lightsource BP Solar Partnership</h2>
In contrast to its wind energy divestment, BP is increasing its solar efforts. The company recently announced plans to take full ownership of Lightsource BP, Europe&#39;s largest solar developer. This move aligns with BP&#39;s broader strategy to concentrate on its solar partnership, which it considers to be on par with its current growth objectives.
The wind business sale marks a pivotal moment for BP as it realigns its energy transition strategy, pivoting away from wind energy to enhance its core oil and gas operations and focus on certain renewable sectors.
<h2>BP&#39;s Zacks Rank &amp; Key Picks</h2>
BP currently carries a Zack Rank #5 (Strong Sell).
Investors interested in the&nbsp;energy&nbsp;sector may look at some better-ranked stocks like TechnipFMC plc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fti#NYSE">FTI</a>), Core Laboratories Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/clb#NYSE">CLB</a>) and VAALCO Energy, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/egy#NYSE">EGY</a>), each carrying a Zacks Rank #2 (Buy) at present.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry, with a focus on the subsea segment in offshore basins worldwide. FTI&#39;s growing backlog ensures strong revenue visibility and supports margin improvements.
The Zacks Consensus Estimate for FTI&#39;s 2024 EPS is pegged at $1.34. The company has a Zacks Style Score of B for Value and A for Growth. It has witnessed upward earnings estimate revisions for 2025 in the past 30 days.
Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB&#39;s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.
The Zacks Consensus Estimate for CLB&#39;s 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
VAALCO Energy is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company&#39;s production outlook seems bright.
The Zacks Consensus Estimate for EGY&#39;s 2024 EPS is pegged at $0.65. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
<a href="https://www.zacks.com/stock/news/2337002/bp-plans-to-sell-u-s-onshore-wind-division-amid-strategic-shift?cid=CS-BENZ-FT-analyst_blog|company_news_energy_sector-2337002">To read this article on Zacks.com click here.</a>

BP plc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bp#NYSE">BP</a>), a leading UK-based energy company, has enlisted American Bureau of Shipping (&quot;ABS&quot;) for a range of services related to the floating production unit (FPU) for its Kaskida development in the U.S. Gulf of Mexico. This marks BP&#39;s sixth-operated deepwater project in the region, located in a high-margin basin. ABS will provide classification and engineering verification services for the new semi-submersible FPU, a key component in BP&#39;s growing Gulf of Mexico portfolio.
<h2>ABS&#39; Role in BP&#39;s Kaskida Development</h2>
ABS, known for its expertise in offshore exploration, will support the project with its engineering review, verification and inspection services. It will act as the certified verification agent for the U.S. Bureau of Safety and Environmental Enforcement. ABS will also serve as the independent third-party verifier for high-pressure, high-temperature subsea equipment. Miguel Hernandez, ABS&#39; senior vice president, highlighted its decades of experience in working with complex semisubmersible production platforms, particularly in the Gulf of Mexico.
In addition, it will collaborate with the United States Coast Guard to oversee the design, construction, installation and equipment for BP&#39;s Kaskida FPU.
<h2>Engineering for BP&#39;s Kaskida FPU Underway</h2>
BP has already engaged multiple firms for the engineering and design work on the FPU. Audubon Engineering is handling the topside design, while Exmar Offshore is responsible for the hull, with both contracts awarded in August 2024. The Kaskida project is expected to begin production by 2029, with the FPU capable of producing 80,000 barrels of crude oil per day from six wells in the first phase.
The Kaskida project, located approximately 250 miles southwest of New Orleans in the Keathley Canyon area, is set to unlock 275 million barrels of oil equivalent in recoverable resources. The project is part of BP&#39;s larger plan to develop 10 billion barrels of discovered resources in the Kaskida and Tiber catchment areas.
<h2>BP&#39;s Kaskida Project to Feature High-Pressure Technology</h2>
BP&#39;s Kaskida development will be the first in the Gulf of Mexico to utilize well equipment with a pressure rating of up to 20,000 pounds per square inch. This cutting-edge technology is essential for tapping deepwater reservoirs at 34,000 feet below sea level.
The involvement of ABS in this ambitious project highlights its critical role in ensuring the successful delivery of BP&#39;s largest energy development in the United States to date.
<h2>BP&#39;s Zacks Rank &amp; Key Picks</h2>
BP currently carries a Zack Rank #5 (Strong Sell).
Investors interested in the&nbsp;energy&nbsp;sector may look at some better-ranked stocks like MPLX LP, Core Laboratories Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/clb#NYSE">CLB</a>) and VAALCO Energy, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/egy#NYSE">EGY</a>). While MPLX currently sports a Zacks Rank #1 (Strong Buy), Core Laboratories and VAALCO Energy carry a Zacks Rank #2 (Buy) each.
MPLX derives stable fee-based revenues from long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership&#39;s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX&#39;s 2024 EPS is pegged at $4.29. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB&#39;s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.
The Zacks Consensus Estimate for CLB&#39;s 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
VAALCO Energy is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company&#39;s production outlook seems bright.
The Zacks Consensus Estimate for EGY&#39;s 2024 EPS is pegged at $0.65. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
<a href="https://www.zacks.com/stock/news/2336319/bp-taps-abs-for-key-kaskida-fpu-services-in-the-gulf-of-mexico?cid=CS-BENZ-FT-analyst_blog|company_news_energy_sector-2336319">To read this article on Zacks.com click here.</a>

Imperial Oil Limited (AMEX:IMO) has experienced 16% growth in its share price year to date (YTD), significantly outperforming the broader oil and energy&nbsp;sector, which has seen a 0.3% decline. This stark disparity raises a key question for investors: Should they invest in the stock now or wait for a more favorable opportunity?
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/bb/77850.jpg?v=686295297" />
Image Source: Zacks Investment Research
Based in Calgary, Imperial is more than just a Canadian oil company; it&#39;s a major player with a multi-layered portfolio that includes oil and gas production, refining, marketing and chemical manufacturing. As Canada&#39;s largest jet fuel supplier and a leading asphalt producer, the integrated oil and gas company holds a significant position in the market. The company also benefits from the expertise and resources of ExxonMobil (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>), which owns a substantial 69.6% stake.
In simple terms, IMO makes money by finding and extracting oil and gas, refining those into products like gasoline and diesel, and selling them to its customers.
So, what&#39;s fueling Imperial&#39;s rise? Let&#39;s delve into the key drivers behind its impressive YTD performance and explore whether this momentum is likely to continue or not.
<h2>Promising Factors</h2>
Strong Financial Performance and Cash Flow: IMO has consistently reported strong financial performance, with second-quarter 2024 net income of C$1.1 billion, a significant year-over-year increase from C$675 million. The company also generated C$1.6 billion in cash flow from operations during the quarter, indicating IMO&#39;s ability to generate substantial cash from its core business.
This strong cash generation allows the company to comfortably fund its shareholder returns through dividends and share buybacks while maintaining a solid cash position for growth and operational flexibility. Currently, the company carries a Momentum Score of A.
Production Growth and Operational Efficiency:&nbsp;IMO&#39;s upstream production hit a 30-year high in second-quarter 2024, averaging 404,000 barrels per day (bpd). This was driven by record output at key assets like Kearl, which achieved 255,000 bpd and Cold Lake, which saw production rise to 147,000 bpd.&nbsp;
<img alt="Imperial Oil Limited" src="https://staticx-tuner.zacks.com/images/articles/charts/dc/77877.jpg?v=703470104" />
Image Source: Imperial Oil Limited
The company has been successfully executing turnaround activities ahead of schedule and below cost expectations, reducing downtime and improving operational efficiency. This focus on cost reduction is exemplified by Kearl&#39;s significant reduction in operating costs per barrel, which is a positive long-term driver for profitability. Additionally, the Trans Mountain Pipeline Extension will boost Imperial by adding 590,000 bpd of capacity for oil sands, improving market access and pricing, and supporting growth.
Renewable Energy Investment: In response to global climate concerns and a transition to greener energy, IMO is developing Canada&#39;s largest renewable diesel facility at its Strathcona refinery. After completion, it will produce more than one billion liters of renewable diesel yearly, helping to reduce carbon emissions and positioning the company for growth in the low-carbon energy market.
This strategic investment shows that IMO is not only committed to its traditional fossil fuel business but is also expanding into more sustainable energy solutions. This may improve the company&#39;s long-term resilience and attractiveness to environmentally conscious investors.
Favorable Market Dynamics: The narrowing spread between West Texas Intermediate (&quot;WTI&quot;) and Western Canadian Select (&quot;WCS&quot;) has improved IMO&#39;s price realizations. The WTI/WCS differential has been tightening due to increased pipeline capacity, which benefits Canada&#39;s producers like IMO by improving the profitability of heavy oil exports. This reduced-price volatility and stronger price realizations in the upstream segment have led to a significant improvement in Imperial&#39;s cash flows, positioning the company well for further growth.
Shareholder-Friendly Policies: IMO has a strong track record of returning cash to its shareholders through dividends and share buybacks. In second-quarter 2024, the company declared a dividend of 60 Canadian cents per share and plans to repurchase up to 5% of its outstanding shares by the end of the year. This not only rewards investors but also signals management&#39;s confidence in the company&#39;s future performance.
<h2>IMO Stock: Cautionary Notes</h2>
Exposure to Oil Price Volatility: Like most oil and gas companies, IMO&#39;s earnings are highly sensitive to fluctuations in oil prices. While current oil prices are favorable, any downturn in the market could significantly impact the company&#39;s revenues and profitability. For example, if geopolitical tensions ease or there is a global economic slowdown, oil demand could decrease, putting pressure on prices and affecting Imperial&#39;s bottom line. Imperial&#39;s reliance on the oil sector makes it vulnerable to cyclical downturns and commodity price risks, which can lead to lower margins and weaker financial performance in challenging market conditions.
Environmental and Regulatory Risks: IMO operates primarily in Canada, where environmental regulations are stringent. The company is exposed to environmental risks, including wildfires in Western Canada, which have already posed threats to its production sites like Kearl and Cold Lake. Additionally, future carbon pricing or stricter environmental regulations could increase operating costs, affect project viability, or lead to fines and penalties if IMO fails to meet regulatory standards. The company&#39;s large-scale oil sands operations make it a target for environmental concerns, which could also affect investor sentiment.
Weaker Refining Margins: Despite strong upstream performance, IMO&#39;s downstream segment, particularly refining, faced challenges in second-quarter 2024. Refining margins were down due to weaker market conditions and softer crack spreads, particularly in gasoline and diesel. Lower refining margins reduce the company&#39;s overall profitability, particularly in periods of high oil prices when refining costs may not be fully passed on to consumers. The company&#39;s heavy reliance on refined product sales could hurt earnings if these margin pressures persist.
High CapEx Spending Commitments: IMO has significant capital expenditure (&quot;CapEx&quot;) commitments, particularly related to maintaining the company&#39;s upstream assets and advancing its renewable energy projects. While these are long-term investments that could benefit the company, the upfront costs are high, with second-quarter 2024 CapEx reaching C$462 million. &nbsp;
Furthermore, IMO&#39;s management has outlined a capital spending budget of C$1.7 billion for 2024. Any delays or cost overruns in these projects could negatively impact the company&#39;s financials in the short term. Moreover, if oil prices decline, the company could face pressure to scale back or delay its CapEx programs, which may hinder IMO&#39;s growth prospects.
Geopolitical and Market Dependence: While IMO has strong domestic operations, it is heavily concentrated in Canada and highly dependent on local market conditions. Any adverse changes in Canada&#39;s energy policies, such as increased taxes or stricter regulations on oil sands, could negatively impact the company&#39;s operations.
Additionally, Imperial&#39;s exposure to global market dynamics, such as supply chain disruptions, fluctuating demand for oil, or competition from international oil producers, could impact the company&#39;s ability to maintain its competitive position.
<h2>IMO Stock:&nbsp;Final Thoughts&nbsp;</h2>
Imperial&#39;s impressive stock performance and strategic initiatives paint a promising picture, with the company currently trading 15% away from its 52-week high. The company&#39;s strong financials, operational efficiencies and green energy investments suggest a bright future. However, factors like oil price volatility, regulatory risks and high CapEx warrant careful consideration.
Of the 15 brokers covering IMO stock, four have given Strong Buy recommendations, while 11 have rated it as Hold and there are no Sell recommendations. With a Zacks Rank #3 (Hold), waiting for a more favorable entry point may be prudent before adding the stock to your portfolio.
<h2>Key Picks</h2>
Investors interested in the energy sector might look at some better-ranked stocks like MPLX LP (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mplx#NYSE">MPLX</a>), sporting a Zacks Rank #1 (Strong Buy), and Vaalco Energy, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/egy#NYSE">EGY</a>), carrying a Zacks Rank #2 (Buy) at present.
Findlay, OH-based MPLX LP is valued at $44.68 billion. In the past year, its shares have risen 25.7%. MPLX owns and operates midstream energy infrastructure and logistics assets in the United States. It operates under two segments, namely Logistics and Storage, and Gathering and Processing.
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Houston, TX-based Vaalco Energy is valued at $579.92 million. The oil and gas exploration and production company currently pays a dividend of 25 cents per share, or 4.47%, on an annual basis. EGY is an independent energy company principally engaged in the acquisition, exploration, development and production of crude oil and natural gas.
<a href="https://www.zacks.com/stock/news/2336551/imperial-s-shares-gain-16-ytd-should-you-buy-or-wait-for-now?cid=CS-BENZ-FT-analyst_blog|rank_focused-2336551">To read this article on Zacks.com click here.</a>
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Imperial's Shares Gain 16% YTD: Should You Buy or Wait for Now?

SLB (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/slb#NYSE">SLB</a>), an American oilfield services company, has announced a breakthrough in sustainable lithium production at its demonstration plant in Clayton Valley, NV. The company&#39;s proprietary technology, which uses direct lithium extraction (DLE), concentration and conversion, accelerates lithium production while minimizing environmental impact.
SLB&#39;s solution is 500 times faster than any conventional method, with a significantly smaller footprint in terms of land and water usage. It produces lithium with a recovery rate of 96%.
<h2>SLB&#39;s DLE Technology Offers Unprecedented Efficiency</h2>
The company&#39;s innovative approach delivers a complete, end-to-end process that extracts lithium from brine, treats impurities and produces high-purity lithium carbonate or hydroxide. The process uses just 10% of the land required by traditional evaporation methods and returns spent brine to its source, reducing ecological impact. This efficiency translates into faster production, reducing the time from extraction to conversion to mere hours compared to up to 18 months using traditional methods.
<h2>Environmental Advantage of SLB&#39;s Lithium Extraction Process</h2>
Conventional lithium extraction through evaporation leads to significant water loss and environmental disruption, leaving behind salts and minerals. On the contrary, SLB&#39;s sustainable solution significantly reduces water usage and minimizes environmental damage. The process enhances sustainability by recycling brine and limiting the use of chemical reagents, making it an eco-friendly alternative to conventional extraction techniques.
<h2>SLB Poised for Commercial-Scale Lithium Production</h2>
The Clayton Valley demonstration plant validates SLB&#39;s technology and positions the company for commercial scalability. With the successful verification of its recovery rates, SLB has achieved the technical milestones required under its agreement with Pure Energy Minerals Ltd. This paves the way for SLB to potentially take full ownership of the Clayton Valley Project, positioning the company as a leader in responsible lithium production.
Lithium is a critical component in producing smartphones, electric vehicles (EVs) and other electrification technologies. SLB&#39;s solution is flexible enough to produce lithium chloride, carbonate, or hydroxide, adapting to market needs for different lithium-based products. With this innovation, SLB is set to play a pivotal role in the electrification economy, ensuring faster, more sustainable lithium production to meet the growing demand.
<h2>SLB&#39;s Zacks Rank &amp; Key Picks</h2>
Currently, SLB carries a Zack Rank #3 (Hold).
Investors interested in the&nbsp;energy&nbsp;sector may look at some better-ranked stocks like MPLX LP&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mplx#NYSE">MPLX</a>), Core Laboratories Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/clb#NYSE">CLB</a>) and VAALCO Energy, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/egy#NYSE">EGY</a>). While MPLX currently sports a Zacks Rank #1 (Strong Buy), Core Laboratories and VAALCO Energy carry a Zacks Rank #2 (Buy) each.
MPLX derives stable fee-based revenues from long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership&#39;s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX&#39;s 2024 EPS is pegged at $4.29. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB&#39;s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.
The Zacks Consensus Estimate for CLB&#39;s 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
VAALCO Energy is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company&#39;s production outlook seems bright.
The Zacks Consensus Estimate for EGY&#39;s 2024 EPS is pegged at $0.65. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
<a href="https://www.zacks.com/stock/news/2334516/slb-achieves-breakthrough-in-lithium-production-in-nevada?cid=CS-BENZ-FT-analyst_blog|company_news_energy_sector-2334516">To read this article on Zacks.com click here.</a>

SLB Achieves Breakthrough in Lithium Production in Nevada

Pembina Pipeline Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pba#NYSE">PBA</a>), a Canada-based oil and gas storage and transportation company, has announced a major acquisition through its joint venture Pembina Gas Infrastructure Inc. (&quot;PGI&quot;). This agreement with Veren Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vrn#NYSE">VRN</a>) involves acquiring its Gold Creek and Karr area oil batteries, coupled with a significant investment in future infrastructure development.
The strategic acquisition represents a key milestone in Pembina&#39;s growth, expanding the company&#39;s infrastructure footprint and strengthening its partnership with VRN, a prominent player in the Montney and Duvernay regions.
<h2>Details of the Agreement Between PBA &amp; VRN</h2>
The acquisition involves four batteries in the Gold Creek and Karr areas, contributing significantly to PGI&#39;s existing infrastructure. These batteries boast a natural gas handling capacity of 320 million cubic feet per day and liquids handling capacity of 53,000 barrels per day. The natural gas processed from these batteries is directed to PGI&#39;s Patterson Creek Gas Plant, with the batteries and the plant integrated into Pembina&#39;s Peace Pipeline system.
Calgary-based VRN will play a major operational role with the newly acquired assets. According to the agreement, this Canadian oil and gas exploration and production company will manage the newly acquired batteries and the existing PGI-owned batteries in the region. Under this arrangement, VRN will handle all operating costs and maintenance capital, establishing itself as the primary operator for these facilities.
PGI will invest up to C$300 million and approximately one-third of this funding has already been committed, which reflects the seriousness of the collaboration. VRN, as part of this agreement, will oversee the construction and operation of the batteries, while PGI focuses on the high-pressure gathering pipelines that support this infrastructure.
<h2>Key Financial Aspects of PBA&#39;s Acquisition</h2>
The net purchase price is C$400 million (C$240 million net to Pembina), a considerable investment that highlights the company&#39;s commitment to expanding its gas processing and handling capacity. This acquisition is expected to generate an initial annual adjusted EBITDA of approximately C$50 million (C$30 million net to Pembina), with further capital deployment anticipated to yield additional contracted EBITDA through enhanced plant utilization and corresponding fees.
<h2>PBA&#39;s Long-Term Take-or-Pay Agreement</h2>
A critical component of this transaction is the 15-year take-or-pay agreement signed between the two companies. This long-term contract provides security for PGI, with VRN committing to processing capacity at the newly acquired batteries. Additionally, the agreement includes a dedicated area, which is situated in the Gold Creek and Karr regions, where VRN is obligated to use PGI&#39;s gathering and processing services for all volumes produced.
This acquisition is not only a financial transaction but a strategic move that strengthens Pembina&#39;s existing relationships and infrastructure capabilities. VRN is a leading producer in Montney and Duvernay, two prolific gas-producing formations in Western Canada, with more than 20 years of premium drilling inventory. This transaction ensures that PGI continues to collaborate with a top-tier counterpart in the energy sector.
The transaction also involves extending the existing legacy agreements between Pembina and VRN. Under the new structure, all the purchased batteries, existing assets and future infrastructure developments will be amalgamated into a single, simplified contract structure. This streamlined approach eliminates redundant administrative processes and provides clearer, long-term commitments between the parties.
Moreover, PGI has taken steps to eliminate future non-revenue-generating capital obligations tied to previous agreements, further optimizing its financial exposure. This move reduces operating expenses and ensures that all capital deployed has a direct impact on revenue generation.
This transaction enables VRN to manage the upstream gathering and battery infrastructure, while PGI will maintain operations at the Patterson Creek Plant. This arrangement supports the ramp-up of drilling activities and the associated increase in volumes outlined in VRN&#39;s development plan, leveraging the existing unused capacity at PGI&#39;s Patterson Creek Gas Plant.
<h2>Integration and Future Plans for PBA Stock</h2>
The transaction is part of Pembina&#39;s broader strategy to enhance its infrastructure and logistics chain. Liquids from the new batteries and Patterson Creek Gas Plant will continue to be transported via the Peace Pipeline system and natural gas liquids will be processed at Pembina&#39;s Redwater Facility, ensuring smooth integration with existing operations.
To finance this acquisition, PGI will use its existing credit facility, which highlights the company&#39;s strong financial position. This deal is expected to close in the fourth quarter of 2024, subject to customary closing conditions and regulatory approvals. This acquisition aligns with Pembina&#39;s long-term goals for growth and solidifies its role as a leading midstream service provider in Western Canada.
VRN&#39;s Gold Creek and Karr area oil batteries&#39; acquisition by PBA is a strategic transaction that extends its reach into critical gas-processing regions. This collaboration with VRN ensures stable and long-term growth trajectory. The transaction brings together expanded operational capacity, enhanced infrastructure alignment and integration into Pembina&#39;s existing value chain, creating an opportunity for both companies to benefit from increased efficiencies and growth in the energy landscape of Western Canada.
<h2>Zacks Rank and Key Picks</h2>
Currently, PBA and VRN each have a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like VAALCO Energy, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/egy#NYSE">EGY</a>) and Core Laboratories Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/clb#NYSE">CLB</a>), each carrying a Zacks Rank #2 (Buy) at present.
Houston, TX-based Vaalco Energy is valued at $568.51 million. The oil and gas exploration and production company currently pays a dividend of 25 cents per share, or 4.56%, on an annual basis. EGY is an independent energy company principally engaged in the acquisition, exploration, development and production of crude oil and natural gas.
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Core Laboratories is valued at $829.89 million. The company currently pays a dividend of 4 cents per share, or 0.23%, on an annual basis. Netherlands-based CLB is an oilfield services company, operating in more than 50 countries. The firm deals with providing reservoir management and production enhancement services to oil and gas companies.
<a href="https://www.zacks.com/stock/news/2333876/pembina-pipeline-to-acquire-veren-s-midstream-assets-in-c-400m-deal?cid=CS-BENZ-FT-analyst_blog|company_news_energy_sector-2333876">To read this article on Zacks.com click here.</a>
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Pembina Pipeline to Acquire Veren's Midstream Assets in C$400M Deal

The Williams Companies, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wmb#NYSE">WMB</a>) is on an ambitious path to expand its natural gas infrastructure with the addition of 12 projects representing approximately 4.2 billion cubic feet per day (bcfd) of capacity from 2024 to 2027. This announcement was made by CEO Alan Armstrong at the Barclays CEO Energy-Power Conference on Wednesday, according to Reuters.
This latest expansion follows the Tulsa, OK-based leading oil and gas storage and transportation company&#39;s successful completion of 17 projects, which collectively contributed about 5 bcfd, between 2018 and 2023. These projects are aimed at boosting natural gas supply, especially as demand for energy increases across various sectors.
<h2>WMB&#39;s Upcoming Projects: 2024-2027</h2>
The company&#39;s growth plan for the next few years focuses heavily on critical projects such as the Louisiana Energy Gateway and Southeast Supply Enhancement pipelines. These two high-capacity projects are expected to bring substantial additional supply into the U.S. natural gas market.
One of the flagship projects in this expansion is the Louisiana Energy Gateway, a pipeline designed to deliver 1.8 bcfd of natural gas. This project is currently under construction and expected to begin service in the second half of 2025. The project will play a crucial role in increasing gas supply from regions with abundant natural resources to areas where demand is surging.
This gateway not only addresses current energy needs but also lays the groundwork for future demand in domestic and international markets, with a particular focus on liquefied natural gas (&quot;LNG&quot;) exports.
Another key project is the Southeast Supply Enhancement pipeline, designed to deliver 1.6 bcfd of natural gas. This pipeline is currently under development and expected to be operational by the fourth quarter of 2027. The $1.45 billion investment will help to meet the rising energy needs in the Mid-Atlantic and Southeastern U.S. regions, with the increasing demand for electricity generation from data centers and artificial intelligence applications.
WMB anticipates this project to play a critical role in replacing retiring coal-fired power plants with natural gas as the go-to fuel for electricity generation. With the focus on decarbonization and the transition to cleaner energy sources, the demand for natural gas is set to remain robust in the next decade.
<h2>WMB&#39;s Historical Project Success: 2018-2023 Expansion</h2>
Between 2018 and 2023, Williams brought 17 projects online, adding a total of 5 bcfd of capacity. This growth reflects the company&#39;s commitment to meeting U.S. energy demands, driven by the shift from coal to natural gas for electricity and increasing LNG export needs. Natural gas is supporting the U.S. power grid&#39;s decarbonization efforts as less efficient coal plants are phased out.
<h2>Pipeline Projects of Williams</h2>
Williams plans to introduce approximately 11.5 bcfd of capacity between 2026 and 2032, with a $10.2 billion capital expenditure. These projects will support industrial and power generation needs and enhance LNG export capabilities. Strategic project locations will ensure a steady gas supply for domestic and international markets.
<h2>WMB&#39;s M&amp;A Strategy and Focus</h2>
On the mergers and acquisitions (M&amp;A) front, WMB has taken a cautious approach in recent years. According to Armstrong, the company&#39;s recent M&amp;A activity has been focused on acquiring gas storage assets, which align with WMB&#39;s long-term strategic goals. Beyond gas storage, Armstrong expressed skepticism about other potential acquisitions, noting that the company has yet to find any attractive opportunities for bolt-on acquisitions that offer significant synergies.
This cautious approach highlights Williams&#39; focus on making strategic investments that enhance its existing asset base. However, WMB denied reports that it had made a buyout offer to Targa Resources Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/trgp#NYSE">TRGP</a>), a Houston-based oil and gas storage and transportation company.
In conclusion, WMB is positioned as a key player in the U.S. energy transition, leveraging natural gas to support a cleaner energy future. With an extensive pipeline of projects and a focus on gas storage, the company is prepared to meet rising energy demands and contribute to a lower-carbon future.
<h2>Zacks Rank and Key Picks</h2>
Currently, WMB and TRGP each have a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like MPLX LP (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mplx#NYSE">MPLX</a>), sporting a Zacks Rank #1 (Strong Buy) and VAALCO Energy, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/egy#NYSE">EGY</a>), carrying a Zacks Rank #2 (Buy), at present.
Findlay, OH-based MPLX LP is valued at $43.3 billion. In the past year, its shares have risen 21.3%. MPLX owns and operates midstream energy infrastructure and logistics assets in the United States. It operates under two segments, namely Logistics and Storage, and Gathering and Processing.
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Houston, TX-based Vaalco Energy is valued at $595.49 million. The oil and gas exploration and production company currently pays a dividend of 25 cents per share, or 4.36%, on an annual basis. EGY is an independent energy company principally engaged in the acquisition, exploration, development and production of crude oil and natural gas.
<a href="https://www.zacks.com/stock/news/2332591/williams-to-boost-natural-gas-capacity-with-12-new-projects?cid=CS-BENZ-FT-analyst_blog|company_news_energy_sector-2332591">To read this article on Zacks.com click here.</a>
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TRGP

Williams to Boost Natural Gas Capacity With 12 New Projects

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Shares of oil and gas companies are trading lower following reports suggesting an impending deal will restart Libyan oil production and exports.

Oceaneering International Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/oii#NYSE">OII</a>) has secured multiple awards in the U.K. North Sea region. The company&#39;s UK-based subsidiary Oceaneering International Servicesannounced several contracts with multiple operators in the region. These contracts involve decommissioning, inspection, subsea infrastructure preparation and installation support services.
The work duration for these contracts is expected to be 65 days. The contracts also include options that may be exercised to extend their duration. The management and execution of the contracts will be carried out by Oceaneering&#39;s UK North Sea hub located in Aberdeen, Scotland. &nbsp;
OII stated that the operations associated with the contracts are slated to begin in August 2024, and will be conducted with the help of the company&#39;s Island Offshore multiservice vessel (MSV) Island Frontier. The company has prolonged the charter for the MSV Island Frontier until December 2025. Oceaneering had previously used the vessel for operations in West Africa and the Black Sea.
The company stated that the recent contracts highlight its expansion into a key market and underscore its strong relationship with major clients in the UK North Sea region. They also demonstrate OII&#39;s expertise and execution capabilities in the sector.
<h2>OII&#39;s Zacks Rank and Key Picks</h2>
Currently, OII carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy&nbsp;sector are&nbsp;VAALCO Energy (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/egy#NYSE">EGY</a>), MPLX LP (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mplx#NYSE">MPLX</a>) and TechnipFMC plc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fti#NYSE">FTI</a>), each carrying a Zacks Rank #2 (Buy) at present.
VAALCO Energy is an independent energy company involved in upstream business operationswith a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company&#39;s production outlook seems bright.
MPLX LP owns and operates a wide range of midstream assets. The partnership&#39;s midstream assets include oil and natural gas gathering systems and transportation pipelines for crude, natural gas and refined petroleum products. MPLX is least exposed to commodity price fluctuations as it generates stable fee-based revenues. Furthermore, it surpasses its industry peers in terms of distribution yield, reflecting its commitment to returning capital to its unitholders.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company&#39;s&nbsp;total backlog witnessed a record high of $13.9 million in the second quarter of 2024, indicating a year-over-year increase of 4.51%. This growing backlog ensures strong revenue growth for FTI in the future.
<a href="https://www.zacks.com/stock/news/2329682/oceaneering-secures-multiple-contracts-in-the-uk-north-sea?cid=CS-BENZ-FT-analyst_blog|company_news_energy_sector-2329682">To read this article on Zacks.com click here.</a>

Oceaneering Secures Multiple Contracts in the UK North Sea

MPLX LP&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mplx#NYSE">MPLX</a>) reported second-quarter 2024 earnings of $1.15 per unit, which topped the Zacks Consensus Estimate of 98 cents. The bottom line also increased from the year-ago quarter&#39;s figure of 91 cents.
Total quarterly revenues of $3.05 billion beat the Zacks Consensus Estimate of $2.92 billion. The top line also increased from the prior-year quarter&#39;s level of $2.69 billion.
Strong quarterly results were primarily driven by higher gathered and processed throughput volumes. An increase in total pipeline throughputs also contributed to the same.
<div class="chart_embed">
<h3>MPLX LP Price, Consensus and EPS Surprise</h3>
<img alt="MPLX LP Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/4c/1723036553.png" style="height:265px; width:577px" title="" />
MPLX LP price-consensus-eps-surprise-chart | MPLX LP Quote
</div>
<h3>Segmental Highlights</h3>
MPLX&#39;s adjusted EBITDA from the&nbsp;Logistics and Storage&nbsp;segment increased to $1.13 billion from $1.02 billion a year ago. The strong performance was driven by increased rates, including growth from equity affiliates. Further, total pipeline throughputs in the second quarter were 6 million barrels per day, up 1% from the year-ago quarter&#39;s level.
Adjusted EBITDA from the&nbsp;Gathering and Processing&nbsp;segment totaled $524 million, up from $509 million in the prior-year quarter. The segment was aided by an increase in volumes, including contributions from the recently acquired assets. However, higher operating expenses offset the positives to some extent.
Gathering throughput volumes averaged 6.6 billion cubic feet per day (Bcf/d), implying a 7% increase from the year-ago period&#39;s level. Natural gas processed volumes came in at 9.6 Bcf/d, indicating a 7% increase from the prior-year quarter&#39;s level.
<h3>Costs and Expenses</h3>
MPLX&#39;s total costs and expenses were $1.63 billion, up from the year-ago quarter&#39;s reported figure of $1.52 billion. The increase can be attributed to higher operating expenses (including purchased product costs) and increased general and administrative expenses.
<h3>Cash Flow</h3>
Distributable cash flow in the quarter totaled $1.4 billion, providing 1.6X distribution coverage. The figure increased from $1.32 billion in the year-ago quarter.
Adjusted free cash flow increased to $1.45 billion from $1.16 billion in the corresponding period of 2023.
<h3>Balance Sheet</h3>
As of Jun 30, 2024, the partnership&#39;s cash and cash equivalents were $2.5 billion, and its total debt amounted to $22.1 billion.
<h3>Outlook</h3>
MPLX has reiterated its projection for 2024 capital spending to $1.1 billion.
<h3>Zacks Rank and Key Picks</h3>
Currently, MPLX carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy&nbsp;sector are&nbsp;SM Energy (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sm#NYSE">SM</a>), VAALCO Energy (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/egy#NYSE">EGY</a>) and&nbsp;Energy Transfer LP (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/et#NYSE">ET</a>). SM Energy presently sports a Zacks Rank #1 (Strong Buy), while VAALCO and Energy Transfer carry a Zacks Rank #2 (Buy) each.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
VAALCO Energyis an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company&#39;s production outlook seems bright.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company&#39;s outlook seems positive.
<a href="https://www.zacks.com/stock/news/2318206/mplx-q2-earnings-top-on-higher-throughput-volumes?cid=CS-BENZ-FT-analyst_blog|earnings_article-2318206">To read this article on Zacks.com click here.</a>

MPLX Q2 Earnings Top on Higher Throughput Volumes

VAALCO Energy shares are trading higher after the company reported better-than-expected Q2 financial results.

The Company expects&nbsp;third quarter&nbsp;2024&nbsp;NRI sales to be between&nbsp;21,700&nbsp;and 24,000&nbsp;BOEPD, reflecting the addition of the C&ocirc;te d&#39;Ivoire volume for an entire quarter.

VAALCO Energy Expects Q3 NRI Sales To Be Between 21,700 And 24,000 BOEPD

VAALCO Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EGY#NYSE">EGY</a>) reported quarterly earnings of $0.22 per share which beat the analyst consensus estimate of $0.14 by 57.14 percent. The company reported quarterly sales of $116.778 million which beat the analyst consensus estimate of $99.770 million by 17.05 percent. This is a 6.90 percent increase over sales of $109.240 million the same period last year.

VAALCO Energy Q2 2024 Adj. EPS $0.22 Beats $0.14 Estimate, Sales $116.778M Beat $99.770M Estimate

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Shares of oil and gas stocks are trading lower despite Middle East tensions. Weak US economic data may be weighing on demand outlook.

Commodities

Press Releases

EnerCom's 29th Annual Energy Investment Conference is Set to be Held August 18-21, 2024 in Denver, Colorado

VAALCO Energy, Inc. Announces Participation in EnerCom Denver Conference

VAALCO Announces Timing of Third Quarter 2024 Earnings Release and Conference Call

VAALCO Energy, Inc. Declares Fourth Quarter 2024 Dividend

VAALCO Energy, Inc. Announces Third Quarter 2024 Results

VAALCO Energy, Inc. Announces Participation in Water Tower Research Fireside Chat on November 19, 2024

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VAALCO Energy, Inc. Secures Rig for 2025/2026 Drilling Campaign

VAALCO Energy, Inc. Announces Record Production and Sales Volumes for 2024

VAALCO Energy, Inc. Announces Significant Milestone in Its Côte D'Ivoire FPSO Dry Dock Refurbishment Project

VAALCO Energy, Inc. Declares First Quarter 2025 Dividend

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