Factbox: Winners and losers in energy sector from Texas cold snap

Factbox: Winners and losers in energy sector from Texas cold snap

News: Factbox: Winners and losers in energy sector from Texas cold snap.

(Reuters) – A winter storm that hit parts of the southern United States last week caused several energy companies to report stronger-than-expected results after being asked to provide more power at higher prices while facing others with millions of dollars were in losses.

Here’s a look at the winners and losers in the energy sector from the storm:

WINNER:

Gas producers:

Comstock Resources said last week was “like hitting the jackpot,” adding that it was possible to sell a tangible amount of production at “super premium prices” ranging from $ 15 per million cubic feet of gas (mcf) and as much as is roughly $ 179 per mcf.

EQT Corp said last week that it has also benefited from high prices in regions hit by the cold snap. The company primarily produces gas from the Marcellus and Utica shale regions in Pennsylvania and Ohio.

The Australian Macquarie Group, the second largest gas marketer in North America after oil major BP, raised its profit forecast on Monday due to the effects of the extreme winter weather. Earnings are expected to increase 10% in 2021 after previously anticipating a decline in earnings.

Other natural gas weighted manufacturing companies including Cabot Oil & Gas, Southwestern Energy Co., Range Resources Corp. and Antero Resources could benefit from the freeze, Morgan Stanley analysts said in a note.

Refineries With Limited Exposure To Texas Markets:

Stocks in refineries like HollyFrontier Corp and Valero Energy Corp rose after freezing temperatures threw much of the Gulf Coast refinery offline, said Bob Yawger, director of energy futures at Mizuho. Refiners in the euro area, including Shell and Total, could benefit from speeding up their gasoline shipments to New York Harbor, he said.

LOSER

Utilities:

Just Energy on Monday cast doubts about its ability to continue as a company after forecasting a loss of $ 250 million to the Texas winter storms.

Innergex Renewable Energy Inc projected a financial impact of up to $ 60 million on its Texas wind farms.

Algonquin Power & Utilities Corp announced on Friday that the potential impact on core adjusted earnings for this year will be between $ 45 million and $ 55 million after curtailing production at Renewable Energy Group’s wind turbines in Texas during inclement weather.

Atmos Energy announced Friday it had purchased natural gas for an additional $ 2.5-3.5 billion due to higher fuel costs and was reviewing financing options to pay for the additional acquisition cost.

Oilfield Services:

Solaris said last Monday that weather would have an impact on its first quarter financials, but did not quantify its success.

Shale Oil Producers:

Shale oil producers in the southern United States could take at least two weeks to resume the more than 2 million barrels of daily crude oil production that has been shut down. Some analysts may never return, analysts said.

Diamondback Energy anticipates the weather will wipe up to five production days in the current quarter.

Cimarex Energy Inc expects production volume to decrease by up to 7% for the quarter.

Occidental Petroleum projected Perm production of 450,000 barrels of oil equivalent per day to 460,000 Boepd for the first quarter, including a 25,000 Boepd hit due to downtime related to the winter storm.

Laredo Petroleum said the Permian Basin operations had been affected for the past 12 days and estimated the combined impact of production shutdowns and delays in completion to bring total first quarter production by about 8,000 boepd and oil production by about 3,000 bpd to reduce.

Golf refiner:

Refineries with oil processing operations along the Gulf Coast, the most important refining center in the United States, such as Phillips 66 and Exxon Mobil, had to cease operations. As of Thursday last week, historic sub-zero temperatures in Texas and Louisiana closed at least 3.5 million barrels a day, or about 19% of US refining capacity.

Compiled by Arundhati Sarkar and Arathy S Nair in Bengaluru, Laila Kearney and Devika Krishnakumar in New York, and Rod Nickel in Calgary; Adaptation by Sonya Hepinstall and Arun Koyyur

Original Source © Reuters

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