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March Nymex natural gas (NGH24) on Friday closed -0.129 (-7.45%).

Nat-gas prices on Friday closed sharply lower as a shift in U.S. weather forecasts to warmer sent nat-gas prices tumbling.  The Commodity Weather Group said “strong warmth” is expected for the mid-western to the eastern parts of the U.S. from March 4-8, reducing heating demand for nat-gas and keeping supplies elevated.   U.S. nat-gas prices also had some negative carryover from a fall in European nat-gas prices Friday to a 2-3/4 year low.

Nat-gas prices have collapsed this year and posted a 3-1/2 year nearest-futures low on Tuesday as an unusually mild winter curbed heating consumption for nat-gas and pushed inventories well above average.

Nat-gas prices are also under pressure from the announcement by the Freeport LNG nat-gas export terminal in Texas on January 26 that it was forced to shut down one of its three production units for a month for repairs after extreme cold in Texas damaged equipment.  The closure of the unit will limit U.S. nat-gas exports and increase U.S. nat-gas inventories.

On Wednesday, nat-gas prices surged to a 1-week high after Chesapeake Energy Corp said it would cut its nat-gas production by about 20% this year due to market conditions.  Last month, Chesapeake Energy merged with Southwestern Energy to become the top U.S. nat-gas producer.

Lower-48 state dry gas production Friday was 102.4 bcf/day (+2.5% y/y), according to BNEF.  Lower-48 state gas demand Friday was 81.9 bcf/day (-11.9% y/y), according to BNEF.  LNG net flows to U.S. LNG export terminals Friday were 13.5 bcf/day (-3.6% w/w), according to BNEF.

The U.S. Climate Prediction Center said there is a greater than 55% chance the current El Nino weather pattern will remain strong in the Northern Hemisphere through March, keeping temperatures above average and weighing on nat-gas prices.  AccuWeather said El Nino will limit snowfall across Canada this season in addition to causing above-normal temperatures across North America.

An increase in U.S. electricity output is positive for nat-gas demand from utility providers.  The Edison Electric Institute reported Thursday that total U.S. electricity output in the week ended February 17 rose +1.8% y/y to 76,416 GWh (gigawatt hours), although cumulative U.S. electricity output in the 52-week period ending February 17 fell -0.2% y/y to 4,100,727 GWh.

Thursday’s weekly EIA report was bearish for nat-gas prices as nat-gas inventories for the week ended February 16 fell -60 bcf, close to expectations of -59 bcf but a much smaller draw than the five-year average for this time of year at -168 bcf.  As of February 16, nat-gas inventories were up +12.5% y/y and were +22.3% above their 5-year seasonal average, signaling ample nat-gas supplies.  In Europe, gas storage was 65% full as of February 19, above the 5-year seasonal average of 49% full for this time of year.

Baker Hughes reported Friday that the number of active U.S. nat-gas drilling rigs in the week ending February 23 fell by -1 rig to 120 rigs, moderately above the 2-year low of 113 rigs posted September 8.  Active rigs have fallen back since climbing to a 4-1/2 year high of 166 rigs in Sep 2022 from the pandemic-era record low of 68 rigs posted in July 2020 (data since 1987).

Commenting on the results, Eric J. Guerin, Chief Financial Officer, said, “We capped off the year with strong financial performance and a notable reduction in leverage, a testament to the Company’s sound strategy and execution.”

Fourth Quarter Financial Highlights¹²³:

• GTV increased 160% year-over-year to $4.0 billion, which includes $2.2 billion from the impact of the acquisition of IAA, Inc. (“IAA”).
• Total revenue increased 134% year-over-year to $1.0 billion, which includes $559.2 million from the impact of the acquisition of IAA.
  • Service revenue increased 197% year-over-year to $809.1 million, which includes $488.0 million from the impact of the acquisition of IAA.
  • Inventory sales revenue increased 35% year-over-year to $231.8 million, which includes $71.2 million from the impact of the acquisition of IAA.
• Net income available to common stockholders increased 65% year-over-year to $74.8 million.
• Diluted earnings per share available to common stockholders increased 2% to $0.41 per share.
• Diluted adjusted earnings per share available to common stockholders increased 21% year-over-year to $0.82 per share.
• Adjusted EBITDA increased 153% year-over-year to $307.5 million.

https://www.newswire.ca/news-releases/rb-global-reports-fourth-quarter-and-full-year-2023-results-894173204.html

TransAlta Corp.TA-T +3.83%increase reported a loss attributable to common shareholders of $84 million compared with a loss of $163 million a year earlier.

The power utility says the loss amounted to 27 cents per diluted share for the quarter ended Dec. 31 compared with a loss of 61 cents per diluted share a year earlier.

Free cash flow per share for the quarter amounted to 39 cents, down from $1.17 in the fourth quarter of 2022.

Revenue totalled $624 million, down from $854 million in the last three months of 2022.

Production for the quarter was 5,783 gigawatt hours compared with 6,005 gigawatt hours a year earlier.

In its outlook for 2024, TransAlta says it expects adjusted earnings before interest, taxes, depreciation and amortization of $1.15 billion to $1.30 billion for the year and free cash flow of $1.47 to $1.96 per share.

CALGARY, Alberta (AP) — CALGARY, Alberta (AP) — Pembina Pipeline Corp. (PBA) on Thursday reported fourth-quarter profit of $512.7 million.

On a per-share basis, the Calgary, Alberta-based company said it had net income of 89 cents.

The results exceeded Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 55 cents per share.

The oil and gas transportation and services company posted revenue of $1.81 billion in the period.

For the year, the company reported profit of $1.3 billion, or $2.20 per share. Revenue was reported as $6.7 billion.

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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on PBA at https://www.zacks.com/ap/PBA

eck Resources Ltd. reported its fourth-quarter profit rose compared with a year earlier as it ramped up operations at its Quebrada Blanca mine and produced a record amount of copper.

The Vancouver-based mining company says it earned a profit attributable to shareholders of $483 million or 92 cents per diluted share for the quarter ended Dec. 31, up from $266 million or 51 cents per diluted share a year earlier.

On an adjusted basis, Teck says it earned $1.40 per diluted share in its latest quarter, up from an adjusted profit of $1.07 per diluted share a year earlier.

Revenue totalled $4.11 billion, up from $3.14 billion in the fourth quarter of 2022.

Production in the quarter totalled 103,000 tonnes of copper, up from 65,000 tonnes a year earlier, while zinc in concentrate production amounted to 182,000 tonnes, up from 143,000 a year earlier. Refined zinc production totalled 70,000 tonnes, up from 46,000.

Teck’s steelmaking coal production rose to 6.4 million tonnes for the quarter, up from 4.9 million tonnes a year earlier.

This report by The Canadian Press was first published Feb. 22, 2024.

Loblaw opens 31 new Maxi and NoFrills stores in 2023, bringing lower prices and more value to hundreds of thousands more Canadians. Fourth quarter revenue grew 3.7% and net earnings increased 2.3%.

Read more at newswire.ca

 Fertilizer giant Nutrien Inc. says it earned US$176 million, or 35 cents per diluted share in the fourth quarter of 2023 — down from US$1.12 billion in the same period of 2022.

The Saskatoon-based company, which reports in U.S. dollars, says its fourth-quarter results include a $76-million non-cash impairment charge related to a new natural gas contract and higher natural gas costs at its nitrogen plant in Trinidad.

On an adjusted basis, Nutrien says it earned $1.1 billion in the quarter, or 37 cents per share.

For the full year 2023, Nutrien reported net earnings of $1.3 billion and adjusted earnings of $6.1 billion, down from the record levels achieved in 2022, when global fertilizer prices skyrocketed in the wake of Russia’s invasion of Ukraine.

The company says its lower 2023 earnings reflect lower selling prices across all of its business segments.

But Nutrien says it benefited from improved fertilizer affordability in the fourth quarter, which boosted potash demand in North America and overseas and helped the company achieve record fourth-quarter potash sales volumes.

This report by The Canadian Press was first published Feb. 21, 2024.

Canadian steel producer Stelco Holdings (STLC) has reported disappointing fourth-quarter earnings that showed its net income fell 96% year-over-year to $23 million.

The Hamilton, Ontario-based company’s Q4 net income was down 85% from the previous third quarter.

Stelco’s revenue during Q4 came in at $674 million, down 20% from the previous quarter and 43% lower than a year ago.

Stelco said its earnings per share (EPS) during the latest quarter amounted to $14.64, down 23% from $19.08 a year earlier.

And the company’s profit margin of 29% was down from 39% in the fourth and final quarter of 2021.

Stelco blamed the poor results on multiple headwinds that include lower sales prices, shorter lead times, and higher input costs.

Stelco’s stock has risen 48% over the last year to trade at $52.86 per share.

Fourth Quarter Highlights

• Adjusted funds from operations of $4.0 billion, including a one-time tax benefit of $880 million.
• Returned $1.1 billion to shareholders; $704 million in dividends and $375 million in share repurchases.
• Total upstream production of 808,100 barrels of oil equivalent (boe/d); second highest quarter in company history.
• Best-ever Oil Sands production of 757,400 barrels per day (bbls/d) with upgrader utilization over 100% outside maintenance period.
• Strong downstream performance with refining throughput of 455,900 bbls/d and utilization at 98%.
• Quarterly dividend per share increased by approximately 5% to $0.545 per share.

“Our fourth quarter performance can be characterized as finishing the year strong, delivering on commitments, and building momentum coming into 2024,” said Rich Kruger, Suncor’s President and Chief Executive Officer. “Most importantly, the quarter was the safest quarter of the year in what resulted in our safest year ever. In addition, upstream reliability across our operations was at or near record highs, achieving the second highest quarterly total production in the company’s history and the highest quarterly Oil Sands production. Downstream performance was equally strong with refining utilization in the quarter at 98%. Looking ahead, we will continue our intense focus on safety, operational excellence, reliability and profitably to further improve performance and add value for our shareholders.”

Annual 2023 Highlights

• Best overall employee and contractor safety performance in the company’s history.
• Adjusted funds from operations of $13.3 billion; second highest in the company’s history.
• Returned $5.0 billion to shareholders; $2.8 billion in dividends and $2.2 billion in share repurchases.
• Total upstream production of 745,700 boe/d; second highest in the company’s history.
• Record Oil Sands performance of 689,600 bbls/d, including best-ever at Syncrude and Firebag.
• Best-ever combined upgrader utilization of 92%, 3% better than previous high.
• Solid downstream performance with refinery utilization of 90%, including 99% in the second half.
• Acquired remaining 45.89% interest in Fort Hills for $2.2 billion, completed asset sales with proceeds of $1.8 billion.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/198800