Daily Brief Energy/Materials: Vale , Indika Energy, Gold, Range Resources, Chord Energy , Frontline , Antero Midstream Corp, Kinetik Holdings , Matador Resources Co, Murphy Oil Corp and more

• We initiated on the iron ore space recently with a short-term bullish call (see: Iron Ore Primer: Understanding The Drivers Of the Market, Ways To Play The Sector). 
• Check out our initiation on  Mount Gibson (MGX AU): Iron Ore Pure Play, 77% of the Mkt Cap in Cash, 0.5x EV-EBITDA With Catalysts ).
• Iron ore has a more short-term upside as it bounces off the cost curve in its three-year band (95-130 USD/ton), while China has demonstrated an abundant appetite for restocking. 

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• China Oil And Gas
• Continuum Green Energy
• Indika Energy

• Gold prices touched a record high in April despite headwinds due to robust demand from Chinese speculators.
• Asian Gold ETFs saw a net inflow of funds in April, while American and European Gold ETFs witnessed net outflows.
• Demand for gold continues to be driven by central banks of emerging markets like China, India, and Türkiye.

• Range Resources’ management highlighted strong operational performance from Q4 2023 earnings.
• The company successfully executed its 2023 plan, driving operational improvements, generating free cash flow with leading capital efficiency, and prudently allocating that cash flow to balance returns for shareholders and further debt reduction.
• The reserves update revealed 16 positive performance revisions, demonstrating the repeatable nature of the company’s Marcellus inventory.

• Chord Energy has recently revealed its business consolidation with Enerplus during their fourth quarter 2023 earnings call.
• The merger will create a premier Williston Basin company, adding significant value to both companies.
• It offers the opportunity to leverage their combined assets, workforce, and best practices towards the operational, financial, and strategic growth of their unified organization.

• Frontline Ltd had a good financial performance in Q4 2023 even though they didn’t witness the aggressive bull market they were hoping for.
• They achieved positive returns on their VLCC fleet, recording $42,300 per day, $45,700 per day on their Suezmax, and $42,900 per day on their LR2/Aframax fleet.
• The strong performance of the Suezmax and LR2 markets led to higher TCNE rates which benefited their year-end earnings.

• Antero Midstream’s 2023 performance has been analytically described as financially and operationally successful, with record EBITDA earnings of $981 million and an 18% return on invested capital.
• Since the Initial Public Offering in 2014, EBITDA has shown robust growth, with an 18% compound annual growth rate, reflecting the company’s high-quality assets and operational success.
• The 2024 EBITDA is expected to reach an estimated midpoint of $1.04 billion from Antero Resources’ maintenance capital program.

• Kinetik reported its Q4 2023 results and 2024 financial guidance, starting on an upbeat note by achieving record processed gas volumes each quarter and delivering projects on time and within budget.
• The tireless focus on execution led to several strategic growth projects, priorities, and the company’s vision.
• Moreover, various accomplishments in terms of system-wide treating and blending capabilities uniquely position Kinetik to support the next phase of growth in the basin, including treating increasingly important trends for producers developing shallower benches.

• Matador Resources Company had a strong performance over the past year, with increases in production, revenue, lease acreage, inventory and dividends.
• They also managed to decrease costs including Lease Operating Expenses (LOE), drilling costs, General and Administrative (G&A) costs, and debt.
• This overall performance indicates a positive direction for the company, contributing both to investor confidence and company stability.

• Murphy Oil Corporation had a strong year in 2023, focusing on deleveraging, executing, exploring, and returning.
• The company achieved its $500 million debt reduction target for year and has reduced debt by $1.7 billion since the end of 2020.
• Production averaged to 186,000 barrels equivalent per day for the year with 52% of the volumes being oil.