Author: Consultant

Monday May 1

China and Japan manufacturing PMI

(10 a.m. ET) U.S. ISM manufacturing PMI for April.

(10 a.m. ET) U.S. construction spending for March. The Street is estimating a month-over-month increase of 0.1 per cent.

Earnings include: Capital Power Corp.; Cargojet Inc.; Gibson Energy Inc.; Southern Copper Corp.; Stryker Corp.; Topaz Energy Corp.; Wajax Corp.

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Tuesday May 2

Euro zone manufacturing PMI and CPI

Germany retail sales

(10 a.m. ET) U.S. factory orders for March. The consensus forecast is an increase of 1.3 per cent from February.

(10 a.m. ET) U.S. Job Openings & Labor Turnover Survey for March.

Also: Canadian and U.S. auto sales for April

Earnings include: Advanced Micro Devices Inc.; Ballard Power Systems Inc.; Colliers International Group Inc.; Dream Industrial REIT; EQB Inc.; First Capital Realty Inc.; Franco-Nevada Corp.; Pfizer Inc.; Restaurant Brands International Inc.; Starbucks Corp.; Thomson Reuters Corp.; Uber Technologies Inc.

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Wednesday May 3

(8:15 a.m. ET) U.S. ADP National Employment Report for April. Consensus is an increase of 145,000 jobs month-over-month.

(10 a.m. ET) U.S. ISM services PMI for April.

(2 p.m. ET) U.S. Fed announcement with chair Jerome Powell’s press briefing to follow.

Earnings include: Barrick Gold Corp.; Bausch + Lomb Corp.; Brookfield Infrastructure Partners LP; Canfor Corp.; Capstone Copper Corp.; Centerra Gold Inc.; Ceridian HCM Holding Inc.; CVS Health Corp.; Estee Lauder Companies Inc.; Fortis Inc.; Gildan Activewear Inc.; IGM Financial Inc.; Killam Properties Inc.; Kinaxis Inc.; Loblaw Companies Ltd.; Parkland Fuel Corp.; Qualcomm Inc.; Sigma Lithium Resources Corp.; Spin Master Corp.; Stelco Holdings Inc.; Vermilion Energy Inc.

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Thursday May 4

Euro zone services PMI and PPI

ECB monetary policy meeting (with press conference to follow)

(8:30 a.m. ET) Canada’s merchandise trade balance for March.

(8:30 a.m. ET) U.S. initial jobless claims for week of April 29.

(8:30 a.m. ET) U.S. productivity for Q1 (preliminary reading). Consensus is an annualized rate decline of 0.1 per cent with unit labour costs rising 4.0 per cent.

(8:30 a.m. ET) U.S. goods and services trade deficit for March.

(10 a.m. ET) Canada’s Ivey PMI for April.

(12:50 p.m. ET) Bank of Canada governor Tiff Macklem discusses the economic outlook in a fireside chat at the Toronto Region Board of Trade.

Earnings include: Altus Group Ltd.; Apple Inc.; Bausch Health Companies Inc.; Baytex Energy Corp.; BCE Inc.; Brookfield Renewable Corp.; Canadian Natural Resources Ltd.; Chartwell Retirement Residences; ConocoPhillips; Endeavour Mining Corp.; First Majestic Silver Corp.; Labrador Iron Ore Royalty Corp.; Open Text Corp.; Pembina Pipeline Corp.; Primo Water Corp.; Shopify Inc.; SSR Mining Inc.; Telus Corp.; Telus International Inc.; Uni-Select Inc.; Wheaton Precious Metals Corp.

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Friday May 5

Euro zone retail sales

Germany factory orders

(8:30 a.m. ET) Canadian employment for April. The Street expects an increase of 0.1 per cent (or 20,000 jobs) with the unemployment rate rising 0.1 of a percentage point to 5.1 per cent.

(8:30 a.m. ET) U.S. nonfarm payrolls for April. Consensus is a rise of 180,000 jobs with the unemployment rate increasing 0.1 of a percentage point to 3.6 per cent.

(3 p.m. ET) U.S. consumer credit for March.

Earnings include: ARC Resources Ltd.; Aritzia Inc.; Brookfield Business Partners LP; Brookfield Renewable Partners LP; Cigna Corp.; Dominion Energy Inc.; Enbridge Inc.; Hydro One Ltd.; Magna International Inc.; TransAlta Corp.; TransAlta Renewables Inc.; Westshore Terminals Investment Corp.

Apr 17, 4:00PM CDTPartnership Content

Nutrien Ltd. (TSXandNYSE:NTR) has received notice of an unsolicited “mini-tender” offer made by TRC Capital Investment Corporation (“TRC Capital”) to purchase up to 1,000,000 Nutrien shares, or approximately 0.20% of Nutrien’s outstanding shares, at a price of C$93.89 per share. The offering price represents a discount of 4.49% and 4.40%, respectively, to the closing prices of Nutrien shares on the Toronto Stock Exchange and New York Stock Exchange on April 4, 2023, the last trading day before the mini-tender offer was commenced.

Nutrien does not endorse TRC Capital’s unsolicited offer, has no association with TRC Capital or its offer, and does not recommend or endorse this unsolicited mini-tender offer. Shareholders are cautioned that TRC Capital’s offer has been made at a price below the current market price for the shares.

TRC Capital has made similar unsolicited mini-tender offers for shares of several other public companies. Mini-tender offers are designed to avoid many of the investor protections like disclosure and procedural protections applicable to most take-over bids and tender offers under Canadian and U.S. securities laws. Canadian securities regulatory authorities have expressed concerns about mini-tender offers, including the possibility that investors might tender to such offers without understanding the offer price relative to the actual market price of their securities. Comments from the Canadian securities regulatory authorities (the “CSA”) on mini tenders can be found in its notice at: http://www.osc.gov.on.ca/en/SecuritiesLaw_csa_19991210_61-301.jsp. The U.S. Securities and Exchange Commission (the “SEC”) has noted that some bidders make these offers at below-market prices “hoping that they will catch investors off guard if the investors do not compare the offer price to the current market price”. The SEC’s advisory to investors can be found at: http://www.sec.gov/investor/pubs/minitend.htm.

Nutrien urges shareholders to obtain current market quotations for their shares, consult with their broker or financial advisor and exercise caution with respect to TRC Capital’s offer. Shareholders who have already tendered their shares should consider taking actions to withdraw them including reviewing the withdrawal procedures in TRC Capital’s offering documents.

Nutrien strongly encourages brokers, dealers and other market participants to exercise caution and review the letter regarding broker-dealer mini-tender offer dissemination and disclosures on the SEC website at: Letter to SIA re: Broker-Dealer Mini-Tender Offer Dissemination and Disclosures (sec.gov) and the relevant provisions in the CSA’s notice referenced above. Nutrien requests that a copy of this news release be included with all distributions of materials relating to TRC Capital’s mini-tender offer related to Nutrien shares.

All financial figures are in Canadian dollars, unless noted otherwise

• Transaction includes the remaining 31.23% working interest in Fort Hills and 50% working interest in Surmont
• Adds 135,000 barrels per day of bitumen production capacity and 2.1 billion barrels of reserves
• Ensures sufficient long-term bitumen supply beyond Base Mine end of life to keep Base Plant upgraders full
• Immediately accretive to funds flow per share and the Board intends on increasing dividend by approximately 10% after closing

Calgary, Alberta–(Newsfile Corp. – April 27, 2023) – Suncor Energy (TSX: SU) (NYSE: SU) today announced that it has agreed to purchase TotalEnergies’ Canadian operations through the acquisition of TotalEnergies EP Canada Ltd., which holds a 31.23% working interest in the Fort Hills oil sands mining project (Fort Hills) and a 50% working interest in the Surmont in situ asset. This will add 135,000 barrels per day of net bitumen production capacity and 2.1 billion barrels of proved and probable reserves to Suncor’s oil sands portfolio. The acquisition is for cash consideration of $5.5 billion, with the potential for additional payments of up to an aggregate maximum of $600 million, conditional upon Western Canadian Select benchmark pricing and certain production targets. Subject to closing, the transaction will have an effective date of April 1, 2023.

“This transaction represents a major step in securing long-term bitumen supply to our Base Plant upgraders at a competitive supply cost,” said Rich Kruger, President and Chief Executive Officer. “These are valuable oil sands assets that are a strategic fit for us and add long-term shareholder value. The acquisition also introduces flexibility and optionality into our long-range capital plan, providing us with further discretion in respect of the timing and scope of future oil sands developments.”

With the transaction Suncor will have 100% ownership of Fort Hills, which along with the Firebag and MacKay River in situ assets, provides the company with sufficient long-life, physically-integrated bitumen supply in the Fort McMurray region to fully utilize the Base Plant upgraders post the end of the Base Mine life in the mid 2030s.

Surmont is a high-quality, producing asset which adds long-life production to Suncor’s oil sands portfolio that is competitive with the company’s organic development options. The asset also has the potential for growth through cost-competitive expansion. When the Base Mine life ends in the mid 2030s the bitumen production from the combination of the Fort Hills and Surmont interests will effectively replace half of the current Base Mine bitumen production. Replacement of the remaining Base Plant Mine bitumen production will involve economic decisions assessing the highest value use of capital in the future.

With Suncor’s strong balance sheet the acquisition will be funded by debt. As a result, it is expected that net debt levels will temporarily exceed the company’s $12-15 billion target range. The company will maintain the current allocation of funds flow after dividends, capital and non-operational benefits of 50% to debt reduction and 50% to share buybacks in line with the capital allocation framework. Suncor expects to return to within its target net debt range in 2024 based on current expected commodity prices. The acquisition is expected to strengthen the underlying business, result in increasing funds flow and be accretive to funds flow per share. Assuming the acquisition closes as contemplated, the Board currently intends to increase the quarterly dividend by approximately 10% following closing.

The Surmont in situ project is operated by ConocoPhillips Canada and upon closing, each of Suncor and ConocoPhillips Canada will hold a 50% working interest. Under the terms of the Surmont joint venture arrangements ConocoPhillips Canada has certain preemptive rights including a right of first refusal on the 50% Surmont working interest. Closing of the transaction is anticipated to occur in the third quarter of 2023 and is subject to waiver of the right of first refusal on the Surmont working interest and other customary closing conditions, including receipt of all required regulatory approvals.

The addition of these assets to Suncor’s portfolio will be subject to our net zero by 2050 emissions reduction objective.

Suncor engaged J.P. Morgan Securities Canada to act as its exclusive financial advisor and Blake Cassels and Graydon LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP as its legal advisors on the transaction.

Imperial Oil Ltd. is raising its quarterly dividend as it reported it earned $1.25 billion in its first quarter, up from $1.17 billion in the same quarter a year earlier.

The company says it will now pay a quarterly dividend of 50 cents per share, up from 44 cents per share.

The increased payment to shareholders comes as the company says its profit amounted to $2.13 per diluted share for the quarter ended March 31, up from $1.75 per diluted share a year earlier.

Total revenue and other income amounted to $12.12 billion, down from $12.69 billion in the first three months of 2022.

Production averaged 413,000 gross oil-equivalent barrels per day, up from 380,000 in the same quarter last year.

Meanwhile, refinery throughput averaged 417,000 barrels per day, up from 399,000 a year ago, as refinery capacity utilization rose to 96 per cent compared with 93 per cent a year earlier.

“Imperial’s strong financial results in the first quarter were underpinned by sustained high utilization rates across our refining network, as well as record first quarter production at Kearl that was supported by enhanced winter operating procedures,” said Brad Corson, Imperial’s chairman, president and chief executive.

“Our strong operating performance ensured Imperial was well positioned to maximize value capture from the current business environment.”

This report by The Canadian Press was first published April 28, 2023.

Published: 4/28/2023 3:17 PM ET

Crude oil prices rose sharply on Friday as traders weighed crude supply and near-term energy demand prospects.

Data from the Energy Information Administration showed crude production in the U.S. fell in February to 12.5 million barrels per day, the lowest level since December 2022.

The EIA report also said fuel demand surged to nearly 20 million barrels per day, the highest level since November 2022.

West Texas Intermediate Crude oil futures for June ended higher by $2.02 or about 2.7% at $76.78 a barrel.

WTI crude futures shed about 1.4% in the week, but gained nearly 1% in April.

Brent crude futures were up $2.06 or 2.63% at $80.28 a barrel a little while ago.

Edward Moya, Senior Market Analyst at OANDA, who said the oil market sell0ff got out of control, added “the pulse of the U.S. economy is not too bad if you ask the Atlanta Fed. If the U.S. economy comes anywhere close to growing at 1.7% in the second quarter, oil prices will probably be much higher.”

According to BakerHughes, the number of rigs drilling for oil in the U.S. was unchanged this week at 591.

A report from Commerce Department said the annual rate of consumer price growth in the U.S. slowed to 4.2% in March from a revised 5.1% in February.

Economists had expected the rate of growth to slow to 4.6% from the 5% originally reported for the previous month.

The annual rate of growth by core consumer prices, which exclude food and energy prices, also slipped to 4.6% in March from a revised 4.7% in February. Economists had expected the rate of growth to slow to 4.5% from the 4.6% originally reported for the previous month.

Traders now look ahead to the Federal Reserve’s monetary policy meeting scheduled for next week.

Ahead of the meeting, CME Group’s FedWatch Tool is indicating an 85.4% chance the Fed will raise rates by another 25 basis points.

Published: 4/28/2023 5:59 PM ET

The Canadian market ended on a firm note on Friday, extending gains from the previous session, thanks largely to strong buying in the energy sector as oil prices rose sharply.

The benchmark S&P/TSX Composite Index ended with a gain of 113.90 points or 0.55% at 20,636.54. The index shed about 0.27% in the week.

On the economic front, data released by Statistics Canada showed the Canadian economic activity likely edged down by 0.1% month-over-month in March 2023. In February, the GDP edged up by 0.1%, following a 0.6% expansion in January.

Gfl Environmental (GFL.TO) surged 7.5% after reporting adjusted net income from continuing operations of $28.7 million in the first quarter. Tfi International (TFII.TO) climbed 5.7%. Tourmaline Oil Corp (TOU.TO), Paramount Resources (POU.TO), Docebo Inc (DCBO.TO) and Suncor Energy (SU.TO) gained 2.7 to 4.3%.

TC Energy Corporation (TRP.TO) gained about 2.1%. The company reported first-quarter net income of $1.3 billion or $1.29 per common share compared to $0.4 billion or $0.36 per common share in first quarter 2022.

Imperial Oil (IMO.TO) reported first-quarter net income of $1,248 million, compared with net income of $1,173 million in the year-ago quarter. The stock ended 0.6% down.

Cameco Corporation (CCO.TO) shares surged nearly 3% after the company reported a net income of $119 million for the quarter ended March 31, 2023, compared with net income of $40 million a year ago.

• California regulators on Friday voted to ban the sale of new diesel big rigs by 2036 and require all trucks to be zero-emissions by 2042, a decision that puts the state at the forefront of mitigating national tailpipe pollution.
• The California Air Resources Board unanimously approved the Advanced Clean Fleets rule, the state’s second zero-emissions trucks rule and first in the world to require new commercial trucks to be electric.
• The mandate is estimated to deliver $26.5 billion in public health benefits in California in avoided health impacts and deaths due to diesel pollution. 

https://www.cnbc.com/2023/04/28/california-bans-the-sale-of-new-diesel-trucks-by-2036.html

Exxon Mobil Corp on Friday reported a record first-quarter profit that was more than double a year ago and topped Wall Street estimates as rising oil and gas output overcame a pullback in energy prices from high levels.

“We delivered a first-quarter record despite the fact that energy prices and refining margins are softening a bit,” Chief Financial Officer Kathryn Mikells said in an interview.

The biggest contributor to the better-than-expected earnings came from strong production growth, she said. Exxon’s quarter was driven by new volumes of crude oil and fuels from the startup of new offshore developments and refining facilities.

Net profit rose to $11.43 billion, or $2.79 per share, compared to $5.48 billion a year ago that included a $3.4 billion after-tax writedown to exit Russia. Results beat consensus by 9%, according to REFINITIV data.

WASHINGTON – U.S. consumer spending was unchanged in March, while underlying inflation pressures remained strong, which could see the Federal Reserve raising interest rates again next month.

The unchanged reading in consumer spending last month, reported by the Commerce Department on Friday, followed a downwardly revised 0.1% gain in February. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, was previously reported to have increased 0.2% in February. Economists polled by Reuters had forecast consumer spending dipping 0.1%.

The data was included in the advance gross domestic product report for the first quarter published on Thursday, which showed consumer spending surging at a 3.7% annualized rate that period after rising at a 1.0% pace in the October-December quarter.

https://www.foxbusiness.com/economy/us-consumer-spending-flat-march-core-inflation-still-strong