In today’s briefing:
- Rio Tinto/Arcadium: More Brine To Compliment Rocks
- Fletcher Building: Plugging the Leaks
- Better Days For Indian Farmers As Chips Fall Into Place
- Better Days For Indian Farmers As Chips Fall Into Place
- [ETP 2024/41] WTI Rises Amid Supply Disruption Fears; Nat-Gas Demand Wanes Due to Hurricane Milton
- Boise Cascade Company: Will The Expansion of Engineered Wood Products Capacity & Investment in Distribution Facilities Be Enough? – Major Drivers
- Zephyr Energy Plc (AIM: ZPHR): Paradox well to be lengthened. Potential funding by industry partner provides external validation
- GeoPark Limited (NYSE: GPRK): Donwtime and Blockades Continue to Impact Production
Rio Tinto/Arcadium: More Brine To Compliment Rocks
- Rio Tinto Ltd (RIO AU) has reached an agreement to buy Arcadium Lithium (LTM AU)/(ALTM US) for US$5.85/share (~A$8.70/share), a ~90% premium to the October 4th closing price of $US3.08/share.
- Terms remain below where Arcadium was trading back in January of this year. But it is perhaps disingenuous to call the Offer Price opportunistic. More a counter-cyclical move.
- The Scheme Offer is subject to a 75% shareholder vote and minimal regulatory approvals. The transaction is expected to close in mid-2025. The long stop is the 9th October 2025.
Fletcher Building: Plugging the Leaks
- Embattled Kiwi building materials giant announced emergency fundraise in September
- Accounting quality has deteriorated significantly in recent years, AI tool shows
- Share price is a quarter of its 2007 peak, company leadership is in flux
Better Days For Indian Farmers As Chips Fall Into Place
- Rubber Board new and replanting subsidy program starts rolling
- RRII, IOCL sign MoU to boost research in process oils
- Rubber Board stalls Kerala Govt move to shut Central Nursery
Better Days For Indian Farmers As Chips Fall Into Place
- Rubber Board new and replanting subsidy program starts rolling
- RRII, IOCL sign MoU to boost research in process oils
- Rubber Board stalls Kerala Govt move to shut Central Nursery
[ETP 2024/41] WTI Rises Amid Supply Disruption Fears; Nat-Gas Demand Wanes Due to Hurricane Milton
- For the week ending 04/Oct, US crude inventories rose by 5.8m barrels, exceeding expectations of a 2m barrel build. However, gasoline and distillate stockpiles fell more than expected.
- US natural gas inventories rose by 82 Bcf for the week ending 04/Oct, higher than analyst expectations of a 73 Bcf buildup. Inventories are 5.1% above the 5-year seasonal average.
- Chevron and Shell experienced target price upgrades, while Schlumberger and Occidental’s target prices were cut. Notably, BNP Paribas downgraded Exxon to Underperform from Neutral.
Boise Cascade Company: Will The Expansion of Engineered Wood Products Capacity & Investment in Distribution Facilities Be Enough? – Major Drivers
- Boise Cascade’s second quarter 2024 earnings reflected a complex but strategically navigated economic landscape, manifesting both strengths and areas of concerns.
- The company reported a year-on-year decrease in net income from $146.3 million in Q2 2023 to $112.3 million in Q2 2024, alongside a slight decline in consolidated sales reaching $1.8 billion, down by 1% from the previous year.
- Despite a softer market environment characterized by elevated mortgage rates and broader economic uncertainties, the firm has pushed forward with essential growth projects and sustained its shareholder capital return strategy.
Zephyr Energy Plc (AIM: ZPHR): Paradox well to be lengthened. Potential funding by industry partner provides external validation
- • Zephyr has decided to extend the State 36-2R well in the Paradox basin by drilling a 5,500 ft lateral on the well.
- • We are not surprised by this decision given that the acid job performed on the existing 130 ft interval was very successful with peak test production of >2,100 boe/d.
- • Zephyr believes that the ultimate recovery of the extended well could reach 2 mmboe, which is well above what would have been recovered from the 130 ft interval.
GeoPark Limited (NYSE: GPRK): Donwtime and Blockades Continue to Impact Production
- 3Q24 production was 33,215 boe/d with production in Colombia still impacted by downtime and blockades (we expected 34.6 mboe/d).
- Production at Llanos-34 continues to decline. Production in Brazil remains shut-in. GeoPark had highlighted these downside risks in August.
- This was partially offset by (1) high production of 1,581 boe/d from Llanos Exploration (Llanos 87 and 123), mainly driven by the Toritos 2 and the Toritos Norte wells and (2) increasing production in Ecuador (1,786 boe/d).
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