Natural Gas

A $35 bln gas reunion tracks a topsy-turvy market

11 Mar 2024

Gas producer EQT spun off its midstream unit in 2018 to sate activists. The argument was that pipelines return cash while gas firms spend it. But that’s no longer true and the operational logic was thin. Striking amid low gas prices invites scrutiny, but recombining makes sense.

Shale twins’ $26 bln deal can afford to be pricey

12 Feb 2024

Permian producer Diamondback is buying a smaller version of itself in Endeavor, from overlapping acreage to neighboring offices. That implies the price is maybe $1 bln over the odds. Given unique savings the duo can reap in the heart of the US oil boom, the buyer can afford it.

Chesapeake $7.4 bln deal finds safety in numbers

11 Jan 2024

The gas company’s bid for Southwestern looks investor-friendly, with a low premium, cost savings and the prospect of cash payouts. Amid a wider energy M&A rush, boss Nick Dell’Osso can also take comfort from being neither the first nor surely the last to take an acquisitive leap.

US oil deals create big fish in vast ocean

30 Oct 2023

Exxon’s $60 bln deal for Pioneer and Chevron’s $53 bln Hess offer will make the giants even bigger. But they will only have 12% of US petroleum production and 5% of global share. Success depends on higher commodity prices. Big Oil may not control as much as it wants.

Chevron’s $53 billion deal is risky Exxon copycat

23 Oct 2023

The all-stock offer for Hess is more speculative than rival Exxon’s massive plunge in Texas shale. It also makes Chevron look more like its US rival: Exxon already owns a piece of prolific Guyana fields with Hess. The long-term bet could work, but for CEO Mike Wirth, it’s dicey.

Exxon $60 bln deal would mark shale’s middle age

6 Oct 2023

Buying Pioneer, a huge producer of oil in the US Permian, would be a mega-acquisition even for Exxon, but a rational one. It could offer a reasonable return, and the ability to exploit future oil-price spikes. For a maturing Pioneer, now isn’t a bad time to settle down.

Time to target fossil fuel demand, not supply

11 Sep 2023

Climate activists want countries and companies to stop producing oil, gas and coal. It would be more effective to focus on cutting demand for fossil fuels – by campaigning for carbon taxes, green subsidies and faster licences for renewable energy, says Hugo Dixon.

Double defensive gas deal offers relative cleaning

6 Sep 2023

Canadian pipeline firm Enbridge wants to reduce dependence on transporting oil. Dominion Energy wants to concentrate on clean electricity. Selling retail gas distribution businesses for $9.4 bln to Enbridge doesn’t directly reduce emissions. But it does make both look cleaner.

Aussie gas strike risk has market fighting old war

24 Aug 2023

Possible industrial action on key rigs added 41% to the fossil fuel’s European price. Yet with storage nearly full, it trades at a fraction of last year’s peak. Real fear of a new supply crunch would lift it far more. No wonder Woodside and Chevron are taking talks to the wire.

European gas security rests on a fragile balance

14 Jul 2023

Mindful of last summer’s mad price rally, EU states have lots of the fossil fuel in storage. This, plus higher Chinese purchases, may keep European contracts below Asian ones. But that may prompt US cargoes of liquefied gas to head East, lifting European gas prices again.

Eni’s bet on gas comes at an acceptable price

23 Jun 2023

The Italian group and Var Energi, in which it holds a 63% stake, are buying Neptune Energy for $4.9 bln. The seller’s private equity owners once hoped for an IPO at twice that level. Bulking up in fossil fuels carries risks, but Eni’s price at least creates some sort of buffer.

Oil AGMs presage awkward investor decoupling

28 Apr 2023

BP sailed through its annual shareholder meeting without much blowback on how it had backtracked on climate goals. That will embolden competitors to dismiss pro-green investors’ concerns, and give more to the opposite camp. It is becoming harder to please both sides.

Capital Calls: Syngenta IPO delay

28 Mar 2023

Concise views on global finance: The Shanghai Stock Exchange has canceled a hearing to review the agrichemicals group's listing plans, leaving investors fearing the worst in China.

Capital Calls: Ritchie Bros founder regret

13 Mar 2023

Concise views on global finance: The industrial equipment auction company’s $7 bln deal for scrap-yard operator IAA has drawn one last opponent: the company’s own co-founder.

Capital Calls: Adobe’s lose-lose Figma bind

24 Feb 2023

Concise views on global finance: Shareholders in the $160 bln design technology firm seem to have decided that the only thing worse than doing its blockbuster deal for rival Figma is losing it.

UAE gas IPO’s $50 bln valuation looks like a floor

22 Feb 2023

The Emirates’ energy giant ADNOC is selling at least 4% of its gas processing arm via an Abu Dhabi listing. As with Saudi Aramco, buyers will have to put up with minimal say on strategy. Unlike Aramco’s IPO, the mooted $50 bln valuation may be an underestimate.

UK bailout has energy bosses walking on eggshells

13 Feb 2023

Power suppliers like Centrica took billions of pounds of government cash to help customers pay high bills. That leaves them open to charges they pocketed gains and handed losses to taxpayers. For an industry intertwined with the state, pay restraint is vital to self-preservation.

Snam rethink reflects Europe’s new energy reality

19 Jan 2023

The $18 bln network operator is hiking spending to boost gas flows into Italy and the EU. Stable revenues from such investments can help new CEO Stefano Venier lift EBITDA. But a lighter push into hydrogen and green projects suggests a slower European shift from fossil fuels.

Global energy prices face a turbulent 2023

12 Jan 2023

The cost of natural gas has halved from a peak last year thanks to warmer weather and bulky European stores. In this Viewsroom podcast, Breakingviews columnists discuss why it’s too early for companies and households to rule out further supply shocks and price volatility.

Cheaper gas is temporary salve for Europe Inc

9 Jan 2023

Warm winter days and enough reserves to offset Russian imports have halved the fuel’s cost. Yet Europe’s energy security also hinges on abundant liquefied natural gas purchases. As China’s fuel-guzzling economy reopens post-Covid, industrial giants like BASF may still suffer.