In today’s briefing:
- Sayona Mining Placement – Has Remained on Schedule with Increased Coverage
- The Mosaic Company: A Structural Transition Away from Exports in Phosphates – Key Drivers
- Chevron Corporation: Acquisition of PDC Energy As A Part Of Oil & Gas Industry Consolidation & Other Drivers
- LyondellBasell: Delivering On Its Strategy, Without Sacrificing Shareholder Returns
- Exxon Mobil Corporation: Acquisition Of Drilling Rights In Arkansas & Other Drivers
- TotalEnergies SE: Launch Of Battery Energy Storage Project & Other Developments
- Valero Energy Corporation: Capacity Expansion Update & Other Drivers
Sayona Mining Placement – Has Remained on Schedule with Increased Coverage
- Sayona Mining (SYA AU) is looking to raise around US$129m in its primary follow-on offering. Proceeds will be used for CAPEX needs and working capital, amongst others.
- The deal is a slightly large one to digest at 17.9 days of ADV and 12.1% dilution.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
The Mosaic Company: A Structural Transition Away from Exports in Phosphates – Key Drivers
- The Mosaic Company had a mixed quarter with revenues of $3.6 billion that were above Wall Street expectations but the company missed out on earnings.
- While supply issues are still a worry, this is drawing growers back to the market.
- We give The Mosaic Company a ‘Buy’ rating with a revised target price.
Chevron Corporation: Acquisition of PDC Energy As A Part Of Oil & Gas Industry Consolidation & Other Drivers
- Chevron once again produced impressive financial results in the most recent quarter and delivered an all-around beat.
- Despite 20% lower oil prices, adjusted first-quarter earnings increased by more than $200 million over the previous year.
- Adjusted upstream earnings decreased due to realizations, while adjusted downstream earnings grew due to greater refining margins.
LyondellBasell: Delivering On Its Strategy, Without Sacrificing Shareholder Returns
- LyondellBasell’s share price delivered strong returns, even in the face of continued headwinds and business restructuring.
- The management is focused on making long-term investments in key areas while at the same time streamlining the business.
- The company is now offering a dividend yield of 5.6%.
Exxon Mobil Corporation: Acquisition Of Drilling Rights In Arkansas & Other Drivers
- Despite lower energy prices and refining margins, ExxonMobil produced an all-around beat in the first quarter.
- This 250,000 barrel per day development is the biggest refinery addition in the US, helping to meet society’s ongoing demand for transportation fuels.
- In addition, ExxonMobil acquired drilling rights in Arkansas to enter the crucial mineral mining industry.
TotalEnergies SE: Launch Of Battery Energy Storage Project & Other Developments
- TotalEnergies had a mixed result in the last quarter with revenues below expectations given that Brent was down 9% and European gas dropped by 50% compared to the previous quarter.
- European gas has been above $15 per barrel and Brent above $18 per barrel, which is still high by historical standards.
- Renewable power generation capacity increased by over 1 gigawatt to the previous quarter.
Valero Energy Corporation: Capacity Expansion Update & Other Drivers
- Valero Energy had another strong quarter, with all segments performing well and the company delivering an all-around beat.
- Notably, Valero achieved a significant milestone by completing and successfully starting up the Port Arthur Coker project, which is expected to enhance the refinery’s capacity and operational efficiency.
- The company also initiated the production of a new coker at Port Arthur as a capacity expansion initiative.
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