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(Reuters) - Natural gas suppliers, pipeline companies and banks that trade commodities have emerged as the biggest market winners from February s U.S. winter blast that roiled gas and power markets, according to more than two dozen interviews and quarterly earnings reports.
The deep freeze caught Texas s utilities off-guard, killed more than 100 people and left 4.5 million without power. Demand for heat pushed wholesale power costs to 400 times the usual amount and propelled natural gas prices to record highs, forcing utilities and consumers to pay exorbitant bills.
After the storm, few companies wanted to talk about their financial gains, unwilling to be seen as profiting off others hardships. But a clearer picture is emerging from quarterly earnings and as utility companies smarting from big bills sue to recoup their losses.
Author Bio
Rekha Khandelwal, CFA, is a long-term investor with a special focus on energy stocks. Rekha holds a master s in finance and has worked as a financial consultant. When she isn t writing, she can be found traveling to a new city or country.
Oil stocks have rallied significantly this year on the back of strong oil prices. The West Texas Intermediate crude oil price is up roughly 28% while the
S&P 500
ExxonMobil s stock is up 44% while
BP and
Chevron stocks are each up around 26% year to date.
While the rally in oil stocks is welcome news for energy investors, it s important to remember that many oil stocks have already rallied from their lows last year. Moreover, as always, these stocks could be volatile and may fall again if oil prices fall. So it would be a better idea to invest in stocks that can do well irrespective of oil prices. Though
It may be too early to call the oil and gas businesses of Enterprise Products Partners (EPD) legacy businesses, but that day could be coming. The prospects for midstream investors are potentially unnerving, and we think the better management teams are laying the groundwork for future growth that fully incorporates the rise of renewables and the ongoing energy transition. While Enterprise remains on the offense with its oil and gas efforts, we think its petrochemical business offers some of the best near- to medium-term growth prospects as the partnership plans to expand the gross operating margin for the business to $1.3 billion in 2024 from an estimated $764 million in 2020. We think this growth opportunity is unique in our U.S. midstream coverage, as no other company has petrochemical investments. This growth doesn’t come without risks, as there are ample environmental, social, and governance considerations that Enterprise must manage better, in our view, but we think the upside
Friday, May 7th, 2021
Brent tested $70 per barrel on Wednesday but fell back on Thursday. Oil “had a great run, but it got a little bit ahead of itself,” Phil Streible, chief market strategist at Blue Line Futures LLC in Chicago, told Bloomberg. “We’ve hit resistance and prices pulled back,” but it’s hard to see a summer demand boost “being derailed,” he said. Oil is still set to close out the week with another gain.
Sempra to delay Port Arthur LNG.
Sempra Energy (NYSE: SRE)said on Wednesday that it would delay its proposed Port Arthur LNG project until 2022 instead of this year, citing global energy markets and a focus on greenhouse gas reductions.
Gas and power sellers rack up billions in profit from Texas freeze Thursday, 06 May 2021 10:10 AM
[ Last Update: Thursday, 06 May 2021 10:10 AM ] Overhead power lines are seen during record-breaking temperatures in Houston, Texas, US, February 17, 2021. (Reuters photo)
Natural gas suppliers, pipeline companies and banks that trade commodities have emerged as the biggest market winners from February’s US winter blast that roiled gas and power markets, according to more than two dozen interviews and quarterly earnings reports.
The deep freeze caught Texas s utilities off-guard, killed more than 100 people and left 4.5 million without power. Demand for heat pushed wholesale power costs to 400 times the usual amount and propelled natural gas prices to record highs, forcing utilities and consumers to pay exorbitant bills.