In today’s briefing:
- Oji Paper (3861 JP) – Big New Buyback After Crossholding Sales And An Activist Peeking From Register
- Marathon Petroleum Corporation: Refining Utilization & Operational Excellence To Redefine the Industry! – Major Drivers
- International Flavors & Fragrances (IFF).: Global Expansion
- The Williams Companies: An Insight Into Its Efficient Capital Allocation in Pipeline Projects & Other Major Drivers
- First Quantum Minerals (FM CN): Call Option on Cobre Panama?
- Devon Energy: Expansion & Resource Optimization in the Williston Basin Driving Our Optimism! – Major Drivers
- Chevron Corporation Unveils Aggressive $3 Billion Cost-Cutting Plan – Here’s What It Means for Investors! – Major Drivers
- Serica Energy Plc (AIM: SQZ): Compressor at Triton down for 2-4 weeks
- Wheaton Precious Metals: Cobalt Production Ramp-up & Strategic Partnerships Driving Our ‘Outperform’ Rating! – Major Drivers
- DRX: Solid Q3 Financials; Margins Remain Strong
Oji Paper (3861 JP) – Big New Buyback After Crossholding Sales And An Activist Peeking From Register
- Paper manufacturer Oji Holdings (3861 JP) has spent 25 years not going anywhere. Their current MTMP isn’t exciting. And it looks like they will fail worse than last time.
- But an activist put their head above the parapet recently, and now the company has announced larger new cross-holding selldown targets, and a big 9% buyback, with a ToSTNeT-3 tomorrow.
- The stock is at 0.47x book. They have nearly ¥400bn of financial assets which are non-core. They have land and property holdings. And they have lots of cross-holdings to repurchase.
Marathon Petroleum Corporation: Refining Utilization & Operational Excellence To Redefine the Industry! – Major Drivers
- Marathon Petroleum Corporation reported third quarter earnings per share of $1.87 with a refining utilization rate of 94%.
- The company continues to deliver solid performance in its refining and marketing (R&M) segment, boasting a 96% capture rate, a 2% improvement quarter-over-quarter, reflecting strong commercial performance.
- The refining operating costs were at $5.30 per barrel, a slight increase primarily due to decreased throughputs and higher project expenses linked to intensified turnaround activity.
International Flavors & Fragrances (IFF).: Global Expansion
- International Flavors & Fragrances Inc. (IFF) exhibited robust financial performance in its third quarter of 2024, showcasing a significant upward trend across its business units.
- IFF achieved a notable growth in revenue, surpassing $2.9 billion, reflecting a 9% increase on a comparable, currency-neutral basis.
- This growth was driven by high single-digit to double-digit volume improvements across various segments, notably in the Nourish, Health & Biosciences, Scent, and Pharma Solutions units.
The Williams Companies: An Insight Into Its Efficient Capital Allocation in Pipeline Projects & Other Major Drivers
- The Williams Companies recently reported their third-quarter performance for 2024, showing a series of strategic moves and expansions that have strengthened their position within the natural gas sector.
- The company announced another record quarter of adjusted EBITDA, significantly fueled by expansions in natural gas transportation and acquisitions, particularly in the Gulf Coast region.
- This achievement came despite challenges from low natural gas prices and adverse weather, notably a harsh hurricane season.
First Quantum Minerals (FM CN): Call Option on Cobre Panama?
- First Quantum Minerals (FM CN) is a play on African mining assets for copper/zinc with an optionality of resumption of the Cobre Panama mine that could double the share price.
- We should not assign a high probability to the asset’s resumption and view it as a long-duration, very out-of-the-money call option.
- The company trades at an EV-EBITDA of 9.8x, which is more expensive than some of its peers. However, Cobre Panama’s optionality makes it attractive.
Devon Energy: Expansion & Resource Optimization in the Williston Basin Driving Our Optimism! – Major Drivers
- Devon Energy’s third quarter 2024 results present a mixed picture, with key operational achievements alongside areas needing attention.
- On the positive side, Devon recorded strong production numbers, achieving an all-time quarterly high of 728,000 barrels of oil equivalent per day.
- This figure reflects a 12% year-over-year growth on a production-per-share basis, surpassing guidance for the current year and resulting in upward revisions to the company’s full-year production assumptions.
Chevron Corporation Unveils Aggressive $3 Billion Cost-Cutting Plan – Here’s What It Means for Investors! – Major Drivers
- Chevron Corporation’s third-quarter 2024 financial results demonstrated a mixture of positive operational achievements and financial headwinds.
- The company reported earnings of $4.5 billion or $2.48 per share, with adjusted earnings similarly at $4.5 billion or $2.51 per share.
- Despite these substantial earnings, this marked a decrease from the prior year largely due to lower liquids realizations and increased depreciation, depletion, and amortization (DD&A), particularly at the Tengizchevroil (TCO) project in Kazakhstan.
Serica Energy Plc (AIM: SQZ): Compressor at Triton down for 2-4 weeks
- Serica is acquiring the UK assets of the Parkmead Group for an initial consideration US$6.5 mm in cash.
- The transaction includes 50% WI in the Skerryvore prospect (Serica already owns 20%) and 50% in Fynn Beauly (heavy oil discovery).
- An additional deferred consideration of US$11.7 mm will be paid in stages over the next 3 years.
Wheaton Precious Metals: Cobalt Production Ramp-up & Strategic Partnerships Driving Our ‘Outperform’ Rating! – Major Drivers
- Wheaton Precious Metals reported its third-quarter results for 2024, demonstrating notable operational and financial metrics.
- The highlights included record quarterly operating cash flows of $254 million and robust production levels from its portfolio, consisting of long-life, low-cost mining assets.
- The reported production for the year to date was approximately 450,000 gold equivalent ounces, with the company on track to meet its annual production guidance ranging between 550,000 and 620,000 gold equivalent ounces.
DRX: Solid Q3 Financials; Margins Remain Strong
- What you need to know: • ADF reported Q3 financial results that were in line with our expectations on revenue and beat our expectations on EBITDA.
- • Revenue came in at $80.0M (-3% YoY) vs. our $80.4M and EBITDA came in at $24.0M (+35% YoY) vs. our $19.0M.
- • While the impact of the Trump victory and tariffs is still uncertain, management remains positive on its end markets and backlog.
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