Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (ARCA: OILT)

最新ニュース Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (ARCA:OILT)

Oiltanking Partners, L.P.

NYSE

Energy

Other

Utilities

The Fund seeks to achieve its investment objective by investing at least 80% of its assets (exclusive of collateral held from securities lending) in securities included in its underlying index, in depositary receipts representing securities included in its underlying index and in underlying stocks in respect of depositary receipts included in its underlying index.

Occidental Petroleum Corp.

Diamondback Energy Inc.

Exxon Mobil Corp.

Conocophillips

Eog Resources

Apa Corp

Chevron Corp.

Vital Energy Inc.

Ovintiv Inc.

Devon Energy Co

Texas Capital Texas Oil Index ETF

Texas Capital Funds Trust Texas Capital Texas Oil Index ETF

Ovintiv Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OVV#NYSE">OVV</a>) shares are trading higher after the company inked a definitive purchase agreement to acquire certain&nbsp;Montney&nbsp;assets from Paramount Resources Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/PRMRF#OTC">PRMRF</a>), in an all-cash transaction valued at <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/n41966088/ovintiv-strengthens-portfolio-with-core-oil-rich-montney-asset-acquisition" rel="noreferrer noopener">around $2.377 billion&nbsp;(C$3.325 billion)</a>.
Post closure, the acquisition is expected to add about 70 MBOE/d of production (approximately 25 Mbbls/d of oil and condensate), 900 net 10,000 foot equivalent well locations, and approximately 109,000 net acres (approximately 80% undeveloped), in the core of the oil-rich Alberta Montney.
The assets are strategically located near the company&#8217;s current operations and have access to midstream infrastructure with available capacity.
Apart from this, Ovintiv agreed to sell nearly all of its Uinta Basin assets in Utah to FourPoint Resources, LLC, for around $2.0 billion in cash.
Both transactions are anticipated to close by the end of the first quarter of 2025, pending customary closing conditions and adjustments.
Together, these transactions are projected to boost Ovintiv&#8217;s 2025 non-GAAP free cash flow by about $300 million, raising 2025 free cash flow per share by approximately <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">20% over prior expectations</a>.
Following the transactions, Ovintiv will operate three rigs in Montney, five in Permian, and one to two in Anadarko, allocating 85%-90% of its 2025 capital to Permian and Montney.
Synergies: The combined transactions are projected to yield annual cost synergies of about $125 million through well cost savings, overhead reductions, and Canadian cash tax benefits.
Ovintiv expects per well cost savings of over $1.5 million on the acquired assets, aligning with its current Montney well costs of approximately $550 per foot due to operational efficiencies and scale advantages.
Buyback Paused: Ovintiv has temporarily paused its share buyback program to recover approximately $377 million borrowed for the Montney asset purchase, representing the net difference after the Uinta assets sale.
The company has allocated roughly $181 million from the buyback pause to debt reduction in the fourth quarter.
Ovintiv anticipates resuming buybacks in the second quarter of 2025 and has paused further acquisitions until then. The base dividend is expected to remain unchanged.
Outlook: The company projects 2025 oil and condensate production at 205 Mbbls/d and total production at 620 MBOE/d, with capital spending of $2.2 billion, $100 million below prior estimates.
As of&nbsp;October 31, the company&#8217;s non-GAAP net debt was&nbsp;$5.65 billion.
Investors can gain exposure to the stock via Invesco Energy Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXE#NYSE">PXE</a>) and Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>).
Price Action: OVV shares are up 3.55% at $43.71 at the last check Thursday.
Photo via Shutterstock
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<li><a href="https://www.benzinga.com//node/41971497" target="_blank" rel="noreferrer noopener">Tapestry And Capri Call Off $8.5B Deal Amid Legal Hurdles</a></li>
</ul>

Equities

Large Cap

News

Guidance

Dividends

Buybacks

Asset Sales

Movers

OILT

PRMRF

PowerShares ETF Trust Dynamic Energy Exploration & Production Port

Ovintiv Shakes Up Portfolio With $2.38 Billion Montney Acquisition And $2 Billion Uinta Basin Sale, Pauses Buyback

Analysts expressed views on ConocoPhillips&#8217; (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>) <a target="_blank" href="https://www.benzinga.com//node/41653155" rel="noreferrer noopener">mixed third-quarter results.</a>
On Thursday, ConocoPhillips reported an adjusted EPS of $1.78, beating estimates; revenue of $13.6 billion vs. $14 billion expected.
The company boosted its quarterly dividend by 34% to $0.78/share. The company raised the&nbsp;outlook&nbsp;for FY24 production to 1.94-1.95 <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">MMBOED (from 1.93 to 1.94 MMBOED)</a>.
Truist Securities analyst Neal Dingmann expects pro forma FCF to rise substantially due to strong organic performance and additional cash flow from Marathon Oil. The analyst reiterated the <a href="https://www.benzinga.com/quote/cop/analyst-ratings">Buy rating and $138 price target on COP.</a>
With stable prices, ConocoPhillips could potentially repurchase nearly all shares issued to MRO within 6-7 quarters, assuming the dividend remains steady and debt repayment is deprioritized, given the company&#8217;s strong balance sheet, adds the analyst.
The analyst says that ConocoPhillips&#8217; FCF is anticipated to be driven by a balanced portfolio, including Lower 48 activities, LNG projects, and Alaskan operations.
Dingmann revised EBITDAX estimates to $24.988 billion (from $24.719 billion) vs. consensus of $24.443 billion for 2024 and $33.208 billion (from $33.745 billion) vs. estimate of $27.939 billion for 2025.
Scotiabank analyst Paul Y.Cheng expects ConocoPhillips&#8217; (Sector Perform, $115 price target) third-quarter 2024 results to positively influence its near-term share price performance.
The analyst estimates adjusted EPS of $7.40 and EBITDA of $22.912 billion in 2024.
Investors can gain exposure to the COP stock via&nbsp;Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>)&nbsp;and&nbsp;IShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEO#BATS">IEO</a>).
Price Action: COP shares are down 1.66% at $107.71&nbsp;at the last check Thursday.
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</ul>

Analyst Color

Price Target

Reiteration

Analyst Ratings

Trading Ideas

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

ConocoPhillips-Marathon Synergy Will Boost Free Cash Flow And Stock Buyback: Analyst

ConocoPhillips&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>) shares are trading higher after the company released&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/b41648660/conocophillips-announces-third-quarter-2024-results-increases-quarterly-ordinary-dividend-and-exis" rel="noreferrer noopener">third-quarter results</a>.
Here's a breakdown of the&nbsp;report.
<ul>
<li>Revenue of $13.604 billion missed the consensus of $14.018 billion</li>
<li>Adjusted EPS of $1.78<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">, beating the consensus of $1.64</a>. </li>
<li>Operating cash flow stood at $5.8 billion.</li>
<li>$2.9 billion of capital expenditures and investments funded.</li>
<li>$0.9 billion in ordinary dividends and VROC paid.</li>
<li>Repurchased $1.2 billion of shares.</li>
<li>Quarter ended with $7.1 billion in cash and short-term investments and $1.0 billion in long-term investments.</li>
</ul>
Dividend boost: ConocoPhillips raised the quarterly dividend per share by&nbsp;34%&nbsp;to&nbsp;$0.78,&nbsp;payable on December 2, 2024, to stockholders of record as of November 11, 2024.
The Board approved an increase to the company&#8217;s existing share repurchase authorization by up to&nbsp;$20 billion.
Production: The company produced 1,917 thousand barrels of oil equivalent per day (MBOED). That's an increase of 111 MBOED from the same period a year ago.
Lower 48 production averaged 1,147 MBOED, which includes 781 MBOED from the Permian, 246 MBOED from the Eagle Ford, and 107 MBOED from the Bakken assets.
The average realized price fell 10% Y/Y to&nbsp;$54.18 per barrel of oil equivalent (BOE).
<a target="_blank" href="https://static.conocophillips.com/files/resources/3q24-earnings-release-deck.pdf" rel="noreferrer noopener">Outlook</a>: ConocoPhillips projects&nbsp;third-quarter&nbsp;production of 1.99-2.03 million barrels of <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">oil equivalent per day (MMBOED)</a>.
The company raised the&nbsp;outlook&nbsp;for FY24 production to 1.94-1.95 MMBOED (from 1.93 to 1.94 MMBOED).
ConocoPhillips reiterated capital expenditures<a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40099637/mixed-bag-for-conocophillips-q3-production-gains-amidst-earnings-pressure" rel="noreferrer noopener"> guidance&nbsp;at about&nbsp;$11.5 billion</a>.
Ryan Lance, chairman and chief executive&nbsp;officer, said, &#8220;We still anticipate closing the planned acquisition of Marathon Oil this quarter and expect to significantly exceed our initial $500 million synergy guidance.&#8221;
Investors can gain exposure to the COP stock via&nbsp;Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>)&nbsp;and&nbsp;IShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEO#BATS">IEO</a>).
Price Action: COP shares are up 2.95% at $106.02 premarket at the last check Thursday.
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</ul>

Earnings

ConocoPhillips Q3 Earnings: EPS Beat, Dividend Boost, Buyback Expansion & More

TotalEnergies SE (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTE#NYSE">TTE</a>) shares are trading higher premarket on Wednesday. The company inked a mid-term LNG supply contract with Santos to supply <a target="_blank" href="https://www.santos.com/wp-content/uploads/2024/10/Santos-signs-mid-term-LNG-supply-contract.pdf" rel="noreferrer noopener">20 LNG</a> cargoes, or up to 0.5 million tonnes annually, over three years plus one quarter.
Starting in the fourth quarter of 2025, the LNG will be sourced from Santos&#8217; global portfolio and delivered ex-ship.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said, &#8221;This oil indexed contract, along with the recently executed long-term LNG Sales and Purchase Agreement with Hokkaido Gas in Japan, and the mid-term contract with Glencore, demonstrates Santos' strong LNG portfolio position and customer relationships in the region.&#8221;
&#8220;Our portfolio is nicely balanced over the short to medium term with around eighty percent of volumes indexed to oil price and around twenty percent exposed to spot pricing.&#8221;
&#8221;There continues to be extremely strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG as countries focus on reducing their carbon emissions. Santos is committed to supporting the energy security of our valued customers across Asia, where gas will play an essential role in decarbonisation efforts across the region.&#8221;
Yesterday, TotalEnergies, along with APA Corporation and Staatsolie Maatschappij Suriname, disclosed a Final Investment Decision (FID) for the first oil development in&nbsp;<a target="_blank" href="https://benzinga.com/markets/equities/24/10/41125582/why-is-apa-corp-stock-seeing-blue-skies-on-tuesday" rel="noreferrer noopener">Block 58, located offshore Suriname</a>.
The total investment is estimated at $10.5 billion, with the first oil expected in 2028.
Investors can gain exposure to the stock via&nbsp;Advisor Managed Portfolios Miller Value Partners Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MVPA#NYSE">MVPA</a>) and&nbsp;Octane All-Cap Value Energy ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OCTA#NASDAQ">OCTA</a>).
Price Action: TTE shares are up 2.60% at $67.39 premarket at the last check Wednesday.
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</ul>

Contracts

MVPA

OCTA

TotalEnergies Inks LNG Supply Contract With Santos: Details

APA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>) shares are trading higher after the company announced a Final Investment Decision (FID) for the first oil development in<a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/g41116965/apa-announces-final-investment-decision-for-first-oil-development-offshore-suriname" rel="noreferrer noopener"> Block 58, located offshore Suriname</a>.
In June 2024, APA, along with TotalEnergies SE (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTE#NYSE">TTE</a>) and Staatsolie Maatschappij Suriname disclosed key advancements towards the <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39187808/suriname-oil-boom-on-the-horizon-totalenergies-apa-near-fid-for-block-58" rel="noreferrer noopener">FID for developing offshore&nbsp;Block 58</a>.
TotalEnergies and APA operate Block 58, with each holding a 50% stake. Staatsolie, Suriname&#8217;s national oil company, has the option to join the development project with up to a 20% interest once the FID is made.
Related: <a target="_blank" href="https://www.benzinga.com/markets/equities/23/09/34579825/totalenergies-eyes-9b-oil-venture-in-block-58-offshore-suriname-production-to-begin-in-2028" rel="noreferrer noopener">TotalEnergies Eyes $9B Oil Venture In Block 58 Offshore Suriname, Production To Begin In 2028</a>
The total investment is estimated at $10.5 billion, with first oil expected in 2028.
The project, named GranMorgu, includes production from the Krabdagu and Sapakara oil discoveries and has confirmed gross estimated recoverable resources exceeding 750 million barrels of oil through appraisal drilling.
GranMorgu will utilize technology to minimize greenhouse gas emissions, featuring an all-electric FPSO configuration with zero routine flaring and complete reinjection of associated gas into reservoirs.
Alongside securing approval for the Phase-1 Central Area Field Development, the partnership has maintained the option for additional exploration in Block 58.
This will enable the companies to thoroughly investigate the substantial untapped potential of the block within the established trend, as well as explore untested areas.
Investors can gain exposure to APA via&nbsp;Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>) and Octane All-Cap Value Energy ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OCTA#NASDAQ">OCTA</a>).
Price Action: APA shares are up 4.80% at $25.64 at the last check Tuesday.
Photo via Shutterstock
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</ul>

Why Is APA Corp Stock Seeing Blue Skies On Tuesday?

ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>) extended the partnership with Uniper, securing up to 10 billion cubic meters of natural gas for Northwest Europe over the <a target="_blank" href="https://www.uniper.energy/news/uniper-and-conocophillips-extend-long-term-gas-supply-partnership-in-northwest-europe" rel="noreferrer noopener">next </a>ten years.
Uniper provides municipal utilities and industrial clients with a diverse gas portfolio, including pipeline gas, LNG, and storage. It is enhancing energy security in Europe while transitioning to greener options like hydrogen and biomethane for decarbonization.
Khoa Dao, CCO ConocoPhillips, stated, &#8220;This agreement will further advance our growing LNG portfolio marketing efforts and help to ensure placement of vital gas supply into Europe.&#8221;
Carsten Poppinga, CCO Uniper, said, &#8220;We are excited to announce this significant deal, which is not only a great success for Uniper but also of central importance to energy security. This deal aims to enable us to sustainably strengthen the supply of gas in Germany and Europe on a long-term basis.&#8221;
Last month, ConocoPhillips reported second-quarter FY24 adjusted EPS of $1.98, beating the consensus of $1.96 and revenue of $14.136 billion, <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40099637/mixed-bag-for-conocophillips-q3-production-gains-amidst-earnings-pressure" rel="noreferrer noopener">which missed expectations of $14.919 billion</a>.
The company expects FY24 production of 1.93 to 1.94 MMBOED and capital <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">expenditures guidance of about $11.5 billion</a>.
Investors can gain exposure to the COP stock via&nbsp;Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>) and&nbsp;IShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEO#BATS">IEO</a>).
Price Action: COP shares are up 0.11% at $110.67 premarket at the last check Friday.
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</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

ConocoPhillips, Uniper Ink 10-Year Gas Supply Deal

Occidental Petroleum Corporation&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>) subsidiary, 1PointFive, disclosed that the U.S. Department of Energy&#8217;s Office of Clean Energy Demonstrations (OCED) will provide up to $500 million to support the development of the South <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/g40842544/1pointfives-south-texas-direct-air-capture-hub-awarded-u-s-department-of-energy-funding" rel="noreferrer noopener">Texas Direct Air Capture (DAC) Hub</a>.
1PointFive&#8217;s South Texas DAC Hub, located on the King Ranch in Texas, will start with a capacity to remove 500,000 metric tons of CO2 annually, with plans to scale to over 1 million metric tons.
The site could expand to remove 30 million metric tons per year and securely store up to 3 billion metric tons in saline formations.
The funding will be provided in multiple phases, starting with an initial award of $50 million to advance 1PointFive&#8217;s work at the South Texas DAC Hub.
This will support engineering, permitting, procurement of long-lead equipment, and continued community engagement to enhance the community benefits plan.
The total award for the South Texas DAC Hub is expected to reach up to $500 million for the initial DAC facility, with potential to increase to $650 million for expanding a regional carbon network in South Texas.
President and CEO Vicki Hollub, Occidental, said, &#8220;This award demonstrates how the U.S. Department of Energy is committed to realizing the full potential of DAC and its confidence in the South Texas DAC Hub to deliver CO2&nbsp;removal at a climate-relevant scale.&#8221;
In August, the company disclosed a $3 billion reduction in principal debt in the third quarter of 2024, driven by strong organic&nbsp;cash flow and <a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40444032/occidental-petroleum-speeds-up-debt-repayment-with-3b-reduction-details" rel="noreferrer noopener">proceeds from divestitures</a>.
Following the anticipated closing of the $818 million Barilla Draw divestment, Occidental plans to use the proceeds for debt repayments.
Investors can gain exposure to the OXY stock via&nbsp;Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>)&nbsp;and&nbsp;First Trust Nasdaq Oil &amp; Gas ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXN#NASDAQ">FTXN</a>).
Price Action: OXY shares are up 0.80% at $51.40 premarket at the last check Friday.
Photo via Shutterstock
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</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

FTXN

Occidental's 1PointFive Secures $500M Boost To Capture CO2: Details

Occidental Petroleum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>) shares are trading higher today. The company disclosed a $3 billion reduction in principal debt in the third quarter of 2024, driven by strong organic<a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/g40437811/occidental-announces-continued-progress-on-debt-reduction-and-divestiture-initiatives" rel="noreferrer noopener"> cash flow and proceeds from divestitures</a>.
Following the anticipated closing of the $818 million Barilla Draw divestment, Occidental plans to use the proceeds for debt repayments. This will bring its year-to-date debt reductions to over $3.8 billion, meeting about 85% of its $4.5 billion near-term debt reduction target.
Occidental Petroleum raised $700 million last week through the <a target="_blank" href="https://www.benzinga.com//node/40325107" rel="noreferrer noopener">sale of 19.5 million common units</a> in Western Midstream Partners, LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WES#NYSE">WES</a>). The company has now reached approximately $1.7 billion in completed or announced divestments for 2024.
The proceeds from its divestiture program will be used for debt reduction, while the company will also advance deleveraging through free cash flow.
Vicki Hollub, President and CEO, said, &#8220;We are pleased with the rapid and significant progress of our deleveraging program along with enhancements made to our already premier portfolio. By the end of the third quarter, we expect to achieve nearly 85% of our near-term $4.5 billion debt reduction commitment.&#8221;
Earlier this month, Occidental completed a $12 billion acquisition of CrownRock, enhancing the Permian portfolio <a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40131532/whats-going-on-with-occidental-petroleum-shares-friday" rel="noreferrer noopener">with 170 Mboed high-margin production</a>.
Investors can gain exposure to the OXY stock via&nbsp;Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>)&nbsp;and&nbsp;First Trust Nasdaq Oil &amp; Gas ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXN#NASDAQ">FTXN</a>).
Price Action: OXY shares are up 0.51% at $57.91 at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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</ul>

Occidental Petroleum Speeds Up Debt Repayment with $3B Reduction: Details

Editor&#8217;s note: This story has been updated to correct the time of Occidental&#8217;s earnings call.
Occidental Petroleum Corp.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>) second-quarter earnings <a href="https://www.benzinga.com/news/earnings/24/08/40234994/occidental-petroleum-q2-earnings-highlights-warren-buffett-favorite-beats-revenue-eps-estimates">exceeded analyst expectations</a> after Wednesday&#8217;s close, but analysts still gave the oil and gas company a neutral outlook.
Occidental reported second-quarter revenue of $6.82 billion, which beat a Street consensus estimate of $6.80 billion, according to data&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent080724&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">from Benzinga Pro.</a>
Quarterly earnings per share of $1.03 beat analysts&#8217; estimates of 77 cents per share.
&#8220;We rate Occidental Petroleum (OXY) Neutral due to its more levered balance sheet, the slowing of its chemicals business, its lower long-term production growth rate vs. peers, and its strategy of selling assets in a weaker environment,&#8221; Roth Capital Partners analyst Leo Mariani wrote in a note.
But he also noted Occidental&#8217;s Chemicals sector posted $296 million in pre-tax income, which was in line with its prior guidance of $300 million as the company beat analyst expectations.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/07/40041734/occidental-sells-certain-delaware-basin-assets-boosts-debt-reduction-efforts">Occidental Sells Certain Delaware Basin Assets, Boosts Debt Reduction Efforts</a>
He also pointed out its MidStream segment registered $49 million in pre-tax earnings, after excluding $67 million in one-time items and non-cash losses, which was $184 million higher than the midpoint of its previous guidance of $85 million to $185 million in pre-tax losses.
&#8220;Overall, we expect OXY to have a positive reaction vs. peers.&#8221;
Scotiabank analyst Paul Cheng also acknowledged the earnings beat and assigned a Sector Outperform rating to the stock while noting the performance of the OxyChem and Upstream divisions was in line with Wall Street expectations.
&#8220;We think OXY's 2Q24 results will have a neutral impact on near-term share price performance,&#8221; he wrote in a note.
&#8220;The bulk of the positive variance was driven by the significant Midstream beat.&#8221;
Occidental is scheduled to have an earnings call with analysts at 1 p.m. E.T. Thursday.
Price Action: Occidental gained 4.05% to $58.38 by Thursday&#8217;s mid-day trading, while exchange-traded funds that track the stock also trended upward.
<ul>
<li>Texas Capital Texas Oil Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>) ticked up 0.72%</li>
<li>First Trust Nasdaq Oil &amp; Gas ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXN#NASDAQ">FTXN</a>) gained 2.01%</li>
<li>Invesco S&amp;P 500 Equal Weight Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPG#NYSE">RSPG</a>) edged up 1.83%</li>
<li>First Trust Natural Gas ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCG#NYSE">FCG</a>) went up 2.57%</li>
<li>TCW Transform Systems ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NETZ#NYSE">NETZ</a>) improved 1.46%</li>
</ul>
Read Now:
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<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/08/40227137/stock-of-the-day-has-the-stage-been-set-for-occidental-petroleum-to-move-higher">Stock Of The Day: Has The Stage Been Set For Occidental Petroleum To Move Higher?</a></li>
</ul>
Photo: Shutterstock

Earnings Beats

Commodities

ETFs

First Trust ISE-Revere Natural Gas Index Fund

Engine No. 1 ETF Trust Engine No. 1 Transform Climate ETF

NETZ

RSPG

Stuck In Neutral: Occidental Petroleum Beat EPS Consensus But Faces Slowing Business, Analyst Says (CORRECTED)

Occidental Petroleum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>) shares are trading lower on the heels of a buyout of oil and<a href="https://www.benzinga.com/pressreleases/24/08/g40114531/occidental-completes-acquisition-of-crownrock" target="_blank" rel="noreferrer noopener"> gas producer</a><a href="https://www.benzinga.com/pressreleases/24/08/g40114531/occidental-completes-acquisition-of-crownrock" target="_blank" rel="noreferrer noopener"> CrownRock, L.P</a>.
The company opened Friday at $58.55 a share, down 1.40%. 
In December, the company inked a deal to acquire CrownRock for cash and stock in a transaction valued at about $12 billion, <a href="https://www.benzinga.com/markets/equities/23/12/36174996/occidental-gears-up-for-growth-acquires-crownrock-for-12b-expanding-permian-basin-presence" target="_blank" rel="noreferrer noopener">including assumption of debt</a>.
&#8220;By completing this transaction, Occidental adds assets that we believe make the best portfolio in our company&#8217;s history even stronger and more differentiated,&#8221; CEO Vicki Hollub said. 
&#8220;We also welcome new team members who will combine with ours to form a high-performing employee base that is focused on safely and efficiently developing low-emission, low-cost energy,&#8221;
The acquisition is expected to enhance the company&#8217;s Permian portfolio by adding about 170 thousand barrels of oil equivalent per day (Mboed) of high-margin, lower-decline unconventional production in 2024.
The deal is expected to deliver increased free cash flow on a diluted share basis, including $1 billion in the first year based on $70 per barrel WTI.
The company also said it will increase the quarterly common stock dividend per share by 4 cents to 22 cents, beginning with the February 2024 declaration.
Also, Occidental disclosed that Colombia&#8217;s Ecopetrol (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EC#NYSE">EC</a>) will not purchase a stake in shale oil producer CrownRock, despite prior discussions about a potential deal, reported Reuters.
Last month, the company disclosed the sale of certain&nbsp;Delaware Basin assets in Texas and New Mexico to&nbsp;Permian Resources&nbsp;Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PR#NYSE">PR</a>) <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/40041734/occidental-sells-certain-delaware-basin-assets-boosts-debt-reduction-efforts" rel="noreferrer noopener">for about $818 million</a>.
ETF Watch: Investors can gain exposure to the OXY stock via Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>) and First Trust Nasdaq Oil &amp; Gas ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXN#NASDAQ">FTXN</a>).
Now Read: 
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/08/40129796/job-creation-tumbles-in-july-higher-unemployment-strengthens-case-for-interest-ra">Job Creation Tumbles in July, Higher Unemployment Strengthens Case For Interest Rate Cuts: Is The Fed Slow On The Draw?</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

What's Going On With Occidental Petroleum Shares Friday?

Occidental Petroleum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>) disclosed the sale of certain Delaware Basin assets in Texas and New Mexico to Permian Resources Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PR#NYSE">PR</a>) <a href="https://www.benzinga.com/pressreleases/24/07/g40006593/occidental-announces-progress-on-divestiture-and-debt-reduction-program" target="_blank" rel="noreferrer noopener">for about $818 million</a>.
Occidental is selling Permian Resources around 27,500 net acres in the Barilla Draw Field of Texas and 2,000 net acres in the New Mexico Delaware Basin, with combined net production for the&nbsp;fourth quarter&nbsp;of 2024 estimated at approximately 15,000 barrels of oil equivalent per day.
The transaction is expected to close in the&nbsp;third quarter&nbsp;of 2024,<a target="_blank" href="https://www.benzinga.com/news/24/06/39384911/why-occidental-petroleum-corporation-shares-are-moving-higher-tuesday" rel="noreferrer noopener"> pending customary conditions.</a>
In addition, Occidental completed other disposals totaling around $152 million in 2024, with proceeds from these sales to be used to reduce debt.
Occidental announced a divestiture program of $4.5 billion-$6 billion, which is projected to be completed within 18 months following the expected August acquisition of CrownRock.
As of March 31, Permian Resources&#8217; cash and cash <a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/b38681347/permian-resources-announces-strong-first-quarter-2024-results-and-increases-full-year-guidance" rel="noreferrer noopener">equivalents stood at $13.3 million</a>.
&#8220;This acquisition is a natural fit for us given its high-return inventory and proximity to our current operated position,&#8221; said Will Hickey, Co-CEO of Permian Resources.
Permian Resources expects the acquisition to be accretive to all key per share metrics, including cash flow, free cash flow and <a href="https://www.benzinga.com//node/40006597">net asset value per share.</a>
In June, Occidental&#8217;s TerraLithium teams up with BHE Renewables for sustainable lithium <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39166510/occidental-take-lithium-leap-with-berkshire-hathaways-subsidiary" rel="noreferrer noopener">extraction from geothermal brine</a>.
Investors can gain exposure to the OXY stock via&nbsp;Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>)&nbsp;and&nbsp;First Trust Nasdaq Oil &amp; Gas ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXN#NASDAQ">FTXN</a>).
Price Action: OXY shares are down 0.42% to $59.93 at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Occidental Sells Certain Delaware Basin Assets, Boosts Debt Reduction Efforts

SM Energy Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SM#NYSE">SM</a>) shares are diving today after the company disclosed an agreement to purchase the Uinta Basin oil and gas assets from entities affiliated with XCL Resources, LLC. for an unadjusted <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/n39520678/sm-energy-announces-highly-accretive-2-0-billion-uinta-basin-acquisition-11-increase-to-fixed-divi" rel="noreferrer noopener">purchase price of&nbsp;$2.55 billion</a>.
Simultaneously, Northern Oil and Gas, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOG#NYSE">NOG</a>) stated that it would purchase a 20% share of XCL&#8217;s oil and gas assets for $510 million, leaving SM Energy with an 80% stake at a net cost of $2.04 billion.
SM Energy will assume operational control of the assets currently managed by XCL and plans to fund the buyout through a mix of debt and existing cash reserves.
The Board has approved the XCL transaction, effective May 1, 2024, with closing expected in September 2024, subject to customary adjustments and conditions.
Synergy &amp; Outlook: The company anticipates the acquisition will immediately benefit key financial metrics. For 2025, Adjusted EBITDAX is expected to rise by approximately 35%, Adjusted free cash flow by about 45%, and cash production <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">margin by around 11%</a>.
SM Energy projects that pro forma 2025 net production will rise to around 195 MBoed, with oil production making up 52% of the commodity mix.
SM Energy&#8217;s 2025 cash production margin is projected to rise by about 11%, driven by the Uinta Basin&#8217;s higher oil content and lower operating costs than the Midland Basin.
Dividend Boost: The Board of Directors approved an 11% increase in the quarterly dividend to $0.20 per share, starting in Q4 2024.
Share Buyback: Additionally, the company authorized a new $500 million share repurchase program through 2027, replacing the existing program.
As of March-end, the company&#8217;s long-term debt was&nbsp;$1.59&nbsp;billion, and cash and cash <a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/n38597858/sm-energy-reports-first-quarter-2024-results-excellent-operational-execution-boosts-bottom-line-re" rel="noreferrer noopener">equivalents were&nbsp;$506.3&nbsp;million</a>.&nbsp;
SM Energy has received firm commitments for an aggregate&nbsp;$1.2 billion,&nbsp;364-day unsecured bridge facility.
Investors can gain exposure to the stock via Invesco S&amp;P SmallCap Energy ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCE#NASDAQ">PSCE</a>) and Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>).
Price Action: SM shares are down 10.2% at $43.47 at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock/ create jobs 51

Mid Cap

PSCE

SM Energy Dives Despite Bullish Uinta Basin Acquisition: Details

Occidental Petroleum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>) shares are trading lower today. The company&#8217;s subsidiary, TerraLithium, inked a joint venture deal with BHE Renewables to develop technology for extracting <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/g39156549/occidental-and-bhe-renewables-form-joint-venture-to-commercialize-terralithium-extraction-technolo" rel="noreferrer noopener">high-purity lithium from geothermal brine</a>.
The companies plan to demonstrate and deploy TerraLithium&#8217;s Direct Lithium Extraction (DLE) and associated technologies to extract and commercially produce high-purity lithium compounds.
Notably, BHE Renewables is a wholly owned subsidiary of Berkshire Hathaway Inc.&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) energy unit.
BHE Renewables operates ten geothermal power plants in California&#8217;s Imperial Valley, which process 50,000 gallons of lithium-rich brine per minute to produce 345 megawatts of clean energy.
The joint venture started a project at BHE Renewables&#8217; Imperial Valley geothermal facility to show the feasibility of using the TerraLithium DLE technology to produce lithium environmentally safely.
Richard Jackson, President, U.S. Onshore Resources and Carbon Management, Operations at Occidental, said, &#8220;By leveraging Occidental&#8217;s expertise in managing and processing brine in our oil and gas and chemicals businesses, combined with BHE Renewables&#8217; deep knowledge in geothermal operations, we are uniquely positioned to advance a more sustainable form of lithium production.&#8221;&nbsp;
As per the International Renewable Energy Agency, demand for lithium, particularly in batteries, is expected to skyrocket tenfold by 2030, which aligns with the projected growth in battery demand.
Jeff Alvarez, President and General Manager of TerraLithium, stated, &#8220;The partnership with BHE Renewables will enable the joint venture to accelerate the development of our Direct Lithium Extraction and associated technologies and advance them toward commercial lithium production.&#8221;
Investors can gain exposure to the stock via&nbsp;Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>)&nbsp;and&nbsp;First Trust Nasdaq Oil &amp; Gas ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXN#NASDAQ">FTXN</a>).
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38878465/occidental-petroleum-could-offer-minimal-shareholder-return-analyst" rel="noreferrer noopener">Occidental Petroleum Could Offer &#8216;Minimal Shareholder Return&#8217;: Analyst</a>
Price Action: OXY shares are down 1.81% at $59.47 at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Occidental Take Lithium Leap With Berkshire Hathaway's Subsidiary

Diamondback Energy, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) shares are trading higher after it penned a deal with&nbsp;Energy Transfer&nbsp;LP&nbsp;(NYSE:&nbsp;ET) to sell&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/g39036921/diamondback-energy-inc-announces-sale-of-wtg-midstream" rel="noreferrer noopener">WTG Midstream Holdings LLC</a>.
Energy Transfer&nbsp;LP&nbsp;is acquiring WTG Midstream from affiliates of Stonepeak, the Davis Estate&nbsp;and&nbsp;Diamondback Energy in a transaction&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/b39036623/energy-transfer-to-acquire-wtg-midstream-in-a-3-25-billion-transaction" rel="noreferrer noopener">valued at approximately $3.25 billion</a>.
The transaction&#8217;s consideration comprises $2.45 billion in cash and approximately 50.8 million newly issued Energy Transfer&nbsp;common&nbsp;units.
The buyout&nbsp;is expected&nbsp;to boost Energy Transfer&#8217;s natural gas pipeline and processing network in the Permian Basin.
The acquisition comprises eight gas processing plants (~1.3 Bcf/d), two more under construction (~0.4 Bcf/d) assets&nbsp;and&nbsp;a 20% stake in BANGL Pipeline.&nbsp;
Energy Transfer is expected to benefit from&nbsp;well positioned&nbsp;assets in the Permian,&nbsp;which is&nbsp;the most active region in the&nbsp;U.S.
The deal&nbsp;is projected&nbsp;to close in the third quarter of 2024, subject to regulatory approval and customary closing conditions.
Synergy: The deal is anticipated to add incremental revenue from downstream NGL transportation and fractionation fees. Energy Transfer expects the WTG assets to add around $0.04 of Distributable Cash Flow (DCF) per common unit in 2025, which is expected to grow to about <a href="https://www.benzinga.com/calendars/guidance" target="_blank" rel="noreferrer noopener">$0.07 per common unit in 2027</a>. 
Diamondback Energy expects a total pre-tax consideration net of approximately&nbsp;$375 million, subject to customary closing conditions and adjustments. Proceeds from the transaction will&nbsp;be used&nbsp;to reduce debt associated with the&nbsp;<a target="_blank" href="https://www.benzinga.com//node/38469997" rel="noreferrer noopener">pending Endeavor Energy Resources,&nbsp;L.P.&nbsp;merger.</a>
As of March-end, Energy Transfer&#8217;s&nbsp;adjusted&nbsp;Distributable Cash Flow attributable to partners&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/b38712725/energy-transfer-reports-strong-first-quarter-2024-results" rel="noreferrer noopener">stood&nbsp;at $2.36 billion</a>.
Investors can gain exposure to FANG stock via&nbsp;Texas Capital&nbsp;Funds Trust Texas Capital Texas Oil Index ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>) and&nbsp;Invesco Energy&nbsp;Exploration &amp; Production ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXE#NYSE">PXE</a>).
Price Action: FANG shares are up 1.89% at $197.11 at the last check Tuesday.
Photo via Shutterstock

FANG

Energy Transfer Expands Permian Presence With $3.25B Acquisition: Details

Occidental Petroleum Corporation&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>)&nbsp;now&nbsp;expects to&nbsp;<a target="_blank" href="https://www.oxy.com/siteassets/documents/investors/quarterly-earnings/oxy1q24conferencecallslides.pdf" rel="noreferrer noopener">close&nbsp;</a>the acquisition of shale oil producer&nbsp;CrownRock LP&nbsp;by the third quarter of&nbsp;FY24.
In December 2023, the company inked a purchase deal for cash and stock in a transaction valued&nbsp;at about $12.0 billion. At that time, Occidental expected the deal to&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/23/12/36174996/occidental-gears-up-for-growth-acquires-crownrock-for-12b-expanding-permian-basin-presence" rel="noreferrer noopener">close in the first quarter of 2024</a>.
In the first-quarter FY24 conference call, CEO Vicki Hollub said, &#8220;The company is answering a&nbsp;second request&nbsp;for information on the acquisition by U.S. regulators and does not anticipate any impediments,&#8221; reported Reuters.
In the call, onshore operations executive Richard Jackson stated that, excluding the acquisition, the company plans to increase oil production in the Permian Basin from current operations by 18,000 barrels per day in the second half of 2024 while reducing rigs.
Yesterday, Occidental reported Q1 adjusted EPS of&nbsp;$0.63, beating the consensus of&nbsp;$0.60, while sales&nbsp;of $6.01 billion were&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/05/38685143/warren-buffetts-favorite-stock-occidental-petroleum-reports-mixed-q1-results" rel="noreferrer noopener">missing the estimate of&nbsp;$6.70 billion</a>.
Investors can gain exposure to the stock via&nbsp;Texas Capital Funds Trust Texas Capital Texas Oil Index ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>) and&nbsp;First Trust Nasdaq Oil &amp; Gas ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXN#NASDAQ">FTXN</a>).
Price Action: OXY shares are up 0.38% at $63.92 premarket at the last check Thursday.
Photo via Shutterstock

Media

Occidental's CrownRock Deal Delayed But Sees Permian Basin Production Boost

Diamondback Energy, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) reported first-quarter FY24 revenue of $2.227 billion, beating&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/g38532980/diamondback-energy-inc-announces-first-quarter-2024-financial-and-operating-results" rel="noreferrer noopener">the consensus of&nbsp;$2.088 billion</a>.
Average daily oil volume production stood at 273.3 MBO/d,&nbsp;which was&nbsp;at the high end of the quarterly<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/g38533020/letter-to-stockholders-issued-by-diamondback-energy-inc" rel="noreferrer noopener">&nbsp;guidance range of 270 &#8211; 274 MBO/d</a>.
Daily combined volumes came in at 461.1 MBOE/d in the quarter. The company&#8217;s average unhedged realized prices stood at $75.06 per barrel of oil, $0.99 per Mcf of natural gas, and $21.26 per barrel of natural gas liquids (NGLs), resulting in a total unhedged realized price of $50.07 per BOE.
Cash operating costs were $11.52 per BOE vs. $11.61 per BOE the year-ago quarter. Oil realizations remained relatively flat Q/Q at 98% of West Texas Intermediate (WTI) pricing in the quarter.&nbsp;
In the quarter, Diamondback drilled 69 gross wells in the Midland Basin and&nbsp;10&nbsp;gross wells in the Delaware Basin. The company turned 101 operated wells to production, all in the Midland Basin, with an average lateral length of 11,463 feet.&nbsp;
Adjusted EBITDA was $1.6&nbsp;billion compared to $1.4 billion in the prior quarter. Adjusted EPS&nbsp;of $4.50&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">surpassed the estimate of&nbsp;$4.42</a>.
Operating cash flow stood at $1.3 billion, and cash capital expenditures of $609 million in the quarter.
As of March-end, the company had cash of $876 million, with approximately $1.6 billion available for future borrowings under its revolving credit facility and approximately $2.5 billion of total liquidity.&nbsp;
Dividend: Diamondback declared a&nbsp;first quarter&nbsp;base cash dividend of $0.90 per share and a variable cash dividend of $1.07 per share,&nbsp;both&nbsp;payable on May&nbsp;22 to stockholders of record as of May&nbsp;15.
Repurchase: In the quarter, Diamondback repurchased 279,266 common shares for around $42 million, excluding excise tax.&nbsp;
To date,&nbsp;the company has repurchased 19.3 million shares for about $2.4 billion and has roughly $1.6 billion remaining on its current share buyback authorization.
Outlook:&nbsp;Diamondback Energy reiterated FY24 oil production of between 270 and 275 MBO/D and cash capital expenditures of<a target="_blank" href="https://www.benzinga.com/news/earnings/24/02/37225074/diamondback-energy-shares-climb-on-better-than-expected-q4-earnings" rel="noreferrer noopener">&nbsp;$2.30 billion-$2.55 billion</a>.
For&nbsp;second-quarter,&nbsp;the company expects oil production of 271 &#8211; 275 MBO/D and&nbsp;cash capital expenditures&nbsp;of&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">$580 million &#8211; $620 million</a>.
The&nbsp;company expects to realize at least 95% of WTI when WTI is at least $65 per barrel, with most quarters (like the first quarter) above that number.
Investors can gain exposure to the stock via&nbsp;Texas Capital Funds Trust Texas Capital Texas Oil Index ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>) and&nbsp;TCW Transform Systems ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/NETZ#BATS">NETZ</a>).
Price Action: FANG shares are down 1.06% at $199.00 premarket at&nbsp;the last check Wednesday.

What's Going On With Diamondback Energy Shares Premarket Wednesday?

Chesapeake Energy Corporation&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>) disclosed that its merger with&nbsp;Southwestern Energy Company&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWN#NYSE">SWN</a>) is expected be delayed as the FTC requested additional information and documentary materials from both&nbsp;<a target="_blank" href="https://app.quotemedia.com/data/downloadFiling?webmasterId=101533&amp;ref=318219359&amp;type=PDF&amp;symbol=CHK&amp;cdn=7522e3bd074a83a74031b4ac5e509362&amp;companyName=Chesapeake+Energy+Corporation&amp;formType=8-K&amp;dateFiled=2024-04-05" rel="noreferrer noopener">companies</a>.
Consequently, Chesapeake and Southwestern now expects the merger to be completed in the second half of 2024. Earlier, the companies expected the deal to close in the second quarter of 2024.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/24/04/38097984/drilling-deep-analyst-outlines-chesapeake-merger-synergies-delays-due-to-regulatory-risks" rel="noreferrer noopener">Drilling Deep: Analyst Outlines Chesapeake Merger Synergies, Delays Due To Regulatory Risks</a>
The issuance of the second request extends the waiting period imposed by the HSR Act until 30 days after the companies have substantially complied with the Second Request, unless that period is extended voluntarily by the parties or terminated sooner by the FTC.&nbsp;
In January 2024, both companies inked a merger deal through an all-stock transaction valued at $7.4 billion, or $6.69 per share, based on Chesapeake&#8217;s closing price&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36591781/why-southwestern-energy-shares-are-down-today" rel="noreferrer noopener">on January 10, 2024</a>.
At this exchange ratio and the respective share prices on January 10, 2024, the combined company would have an enterprise value<a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36521132/southwestern-energy-and-chesapeake-energy-near-17b-merger-report" rel="noreferrer noopener">&nbsp;of around $24 billion</a>.&nbsp;
Related:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36617282/chesapeake-energys-strategic-merger-with-southwestern-energy-wins-analyst-endorseme" rel="noreferrer noopener">Chesapeake Energy&#8217;s Strategic Merger with Southwestern Energy Wins Analyst Endorsement: Upgraded Ratings and Anticipated Market Dominance</a>
Investors can gain exposure to the stock via&nbsp;Invesco Energy Exploration &amp; Production ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXE#NYSE">PXE</a>) and&nbsp;Texas Capital Funds Trust Texas Capital Texas Oil Index ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>).&nbsp;
Price Action: CHK shares are down 0.10% at $89.23 on the last check Friday.
Photo via Shutterstock

Government

Regulations

Hitch in the Haymaker: FTC Request Delays Chesapeake-Southwestern Merger

Keybanc Capital Market&nbsp;analyst&nbsp;Tim Rezvan&nbsp;initiated coverage on&nbsp;Chesapeake Energy Corporation&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>)&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/CHK/analyst-ratings" rel="noreferrer noopener">at Sector Weight rating</a>.
The rating reflects the near/medium-term outlook for natural gas. The analyst says management is acting prudently by curtailing production amid weak prices.&nbsp;
The analyst writes that significant synergies can be extracted from the Southwestern merger and believes management is proving to&nbsp;be a first-mover with its push to gain exposure to international natural gas benchmarks for 15%-20% of its marketed gas.&nbsp;
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37244616/natural-gas-price-rallies-after-chesapeake-energy-lowers-output" target="_blank" rel="noreferrer noopener">Natural Gas Price Rallies After Chesapeake Energy Lowers Output</a>
However, the analyst sees legitimate regulatory risks related to the&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36591781/why-southwestern-energy-shares-are-down-today" rel="noreferrer noopener">Southwestern merger</a>.&nbsp;
Also, Rezvan is concerned about degradation trends in the Marcellus and the Haynesville assets.
The analyst says the continuing delays on LNG export projects, L48 volume growth, and higher gas volumes from mature&nbsp;oil shale basins create less certainty that prices are expected to reset higher as LNG exports double to 25+ Bcf/d, possibly by 2028.
Overall, the analyst estimates EBITDA of $3.180 billion (26% above cons.) for 2024 and $5.182 billion ( 6% above street view) for 2025.
Investors can gain exposure to the stock via&nbsp;Invesco Energy Exploration &amp; Production ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXE#NYSE">PXE</a>) and&nbsp;Texas Capital Funds Trust Texas Capital Texas Oil Index ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>).
Price Action: CHK shares are down 0.34% at $89.99 on the last check Thursday.
Related: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36617282/chesapeake-energys-strategic-merger-with-southwestern-energy-wins-analyst-endorseme" target="_blank" rel="noreferrer noopener">Chesapeake Energy&#8217;s Strategic Merger with Southwestern Energy Wins Analyst Endorsement: Upgraded Ratings and Anticipated Market Dominance</a>
Image: Shutterstock

Drilling Deep: Analyst Outlines Chesapeake Merger Synergies, Delays Due To Regulatory Risks

Oiltanking Partners Increases Quarterly Distribution From $0.2725 To $0.285/share

Alerian announced today that Oiltanking Partners (NYSE: <a class="ticker" href="/stock/oilt#NYSE">OILT</a>) is expected to be added to the Alerian MLP Index (NYSE: <a class="ticker" href="/stock/amz#NYSE">AMZ</a>) and the Alerian MLP Equal Weight Index (CME: AMZE), replacing QR Energy (NYSE: <a class="ticker" href="/stock/qre#NYSE">QRE</a>) in a special rebalancing.
Special rebalancings are triggered by corporate actions that result in the termination of trading of an index constituent on a major US exchange. Such corporate actions include, but are not limited to, mergers, delistings, and bankruptcies. Pending unitholder approval, QRE will cease to trade on the NYSE due to its merger with BreitBurn Energy Partners (NYSE: <a class="ticker" href="/stock/bbep#NYSE">BBEP</a>). If approved, the rebalancing will take place one full trading session after the issuance of a press release indicating all needed merger votes have passed.
Oiltanking Partners owns and operates crude oil, refined petroleum products, and liquefied petroleum gas storage and transportation assets. 
The 50 constituents of the index will be rebalanced on a float-adjusted, capitalization-weighted basis in accordance with the existing index methodology. Constituent additions to and deletions from the index do not reflect an opinion by Alerian on the investment merits of the respective securities.

Press Releases

BBEP

Oiltanking Partners To Join The Alerian MLP Index And Alerian MLP Equal Weight Index

Looking For Exposure To Oil & Gas Producers? Try Texas

In this episode of First Look ETF, I analyze recently-launched ETFs from John Hancock Investment Management, Sofi, and Texas Capital Bank.

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