Daily Brief Energy/Materials: Medco Energi, Williams Cos, Crude Oil, Marathon Petroleum, Intl Flavors & Fragrances, MPLX LP, Oneok Inc, Permian Resources , Vulcan Materials Co, Westlake Chemical and more

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Medco Energi’s ESG as “Adequate”, in line with its scores for the Environmental, Social and Governance pillars. Controversies are “Immaterial” and Disclosure is “Adequate”.

• The Williams Companies presented a strong narrative of growth and resilience in their latest earnings call for the second quarter of 2024.
• Highlighted by the expansion of their Transmission and Storage business, the company reported record results despite the headwinds from low natural gas prices that impacted their Gathering and Processing business.
• Prominent themes throughout the report included consistent execution of strategic projects, optimization efforts in their portfolio, and sustainability practices.

• EIA maintained its 2024 oil demand forecast but cut its 2025 estimate by 160k bpd. OPEC reduced its 2024 and 2025 forecasts by 135k and 65k bpd, respectively.
• Total production of OPEC members obliged to implement supply cuts averaged 21.45m bpd in July, exceeding the target by 1%.
• EIA lowered its 2024 and 2025 oil price forecasts due to slower demand growth. However, it still expects prices to rise in H22024 led by a decline in inventories.

• Marathon Petroleum Corporation has reported its results for the second quarter of 2024, underlining resilience in its operational and financial performance despite varying market conditions.
• This period marked a continuation of strategic initiatives aimed at enhancing long-term shareholder value and adapting to global market demands.
• Positively, Marathon Petroleum demonstrated constructive operational execution with refinery utilization rates reaching 97%, a notable achievement that underscores its capacity to operate efficiently and effectively.

• International Flavors & Fragrances Inc. (IFF) has communicated noteworthy strides in its strategic and operational framework during its second quarter 2024 earnings call, underscoring a period of transition and adaptive strategies within its operational model.
• Highlighting the positives, IFF reported significant volume growth marked by progress in areas like Scent, Health & Biosciences, and Nourish.
• The company achieved double-digit growth across these business lines, demonstrating robust demand for its product offerings and successful execution of strategic initiatives.

• MPLX’s second quarter 2024 earnings reveal a company navigating its expansions and capital allocations with a steadfast focus on growth, particularly in robust regions such as the Marcellus, Utica, and Permian basins.
• MPLX reported a year-over-year increase in adjusted EBITDA by 8% and a 7% rise in distributable cash flow.
• These results underline the company’s robust operational efficiency and strategic asset utilizations, particularly in zones with rich liquid-natural gas intersections.

• ONEOK’s Second Quarter 2024 Earnings illustrates strong financial and operational performance, underpinned by key strategic moves, acquisitions, and organic growth initiatives.
• The integration and synergy realization post acquisition has been a significant positive driver.
• The financial highlights from the quarter include a net income of $780 million or $1.33 per share, a substantial increase of 28% year over year, complemented with a 22% quarter over quarter rise.

• Permian Resources Corporation demonstrated solid performance in the second quarter of 2024, continuing to enhance operational efficiencies and strategically expand through acquisitions.
• Operational successes have allowed the company to revise its production forecasts upward for the second consecutive quarter.
• The inclusion of the newly acquired Barilla Draw assets poses an opportunity to further enhance Permian Resources Corporation’s asset base and cash flow profiles.

• Vulcan Materials Company, specializing in aggregates, demonstrated resilience in its second quarter earnings despite facing operational challenges, including unfavorable weather conditions.
• The company reported significant advancements in unit profitability and margins despite a year-over-year decline in aggregate shipments due to numerous rain-impact days across its key markets.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Westlake Corporation delivered a commendable performance in the second quarter of 2024, particularly in its Housing and Infrastructure Products (HIP) segment, which achieved record quarterly results.
• The company reported increased net sales of $3.2 billion, an EBITDA of $744 million, and a net income of $313 million or $2.40 per share.
• These figures represent improvements over the results of the second quarter of 2023.