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March Nymex natural gas (NGH24) on Friday closed -0.070 (-3.65%).

Nat-gas prices on Friday extended their month-long decline and posted a 3-1/3 year nearest-futures low as above-normal temperatures this winter continue to hammer nat-gas prices.  Updated U.S. weather forecasts turned warmer than previously expected, reducing heating demand for nat-gas and keeping U.S. nat-gas inventories elevated.  On Friday, the Commodity Weather Group said forecasts have shifted warmer for the East Coast and much of the southern U.S. from Feb 19-23.  

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

Lower-48 state dry gas production Friday was 104.8 bcf/day (+4.6% y/y), according to BNEF.  Lower-48 state gas demand Friday was 83.1 bcf/day (-0.4% y/y), according to BNEF.  LNG net flows to U.S. LNG export terminals Friday were 14.0 bcf/day (+1.9% 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.

A decline in U.S. electricity output is negative for nat-gas demand from utility providers.  The Edison Electric Institute reported Wednesday that total U.S. electricity output in the week ended February 3 fell -8.1% y/y to 77,013 GWh (gigawatt hours), and cumulative U.S. electricity output in the 52-week period ending February 3 fell -0.4% y/y to 4,099,080 GWh.

Thursday’s weekly EIA report was neutral to slightly bearish for nat-gas prices as nat-gas inventories for the week ended February 2 fell -75 bcf, right on expectations but a much smaller draw than the five-year average for this time of year at -193 bcf.  As of February 2, nat-gas inventories were up +9.2% y/y and were +10.6% above their 5-year seasonal average, signaling ample nat-gas supplies.  In Europe, gas storage was 68% full as of February 6, above the 5-year seasonal average of 54% 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 9 rose +4 rigs to a 5-month high of 121 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).

Thousands of Americans planning to head to the polls this year will use a voting method that has been popularized in recent U.S. history and continues to face backlash from some critics over its effectiveness and fairness.

Ranked choice voting (RCV) comes in multiple forms and is used in a variety of states around the U.S.

Three states — Alaska, Hawaii and Maine — use RCV statewide. In Alaska and Maine, RCV is used for both federal and statewide elections. In Hawaii, RCV is used in certain statewide elections.

https://www.foxnews.com/politics/ranked-choice-voting-election-method-expanding-across-nation

New York Community Bank (NYCB) was hit with its third credit downgrade as fears linger that the regional bank could be in peril nearly a year after the regional banking sector was hit by a crisis that triggered some of the largest bank failures in U.S. history.

Morningstar DBRS on Thursday downgraded NYCB’s credit rating and cited “outsized” exposure to commercial real estate (CRE) that the bank has pledged to reduce in the months ahead. CRE borrowers have been under pressure due to the higher interest rate environment as well as lower occupancy rates due to the rise of remote work.

https://www.foxbusiness.com/economy/regional-bank-hit-with-third-credit-downgrade-as-crisis-concerns-linger

Cameco Corp. reported a fourth-quarter profit compared with a loss a year earlier as its revenue rose more than 60 per cent.

The uranium miner says it earned $80 million or 18 cents per diluted share in the quarter ended Dec. 31, compared with a loss of $15 million or four cents per diluted share in the last three months of 2022.

Revenue for the quarter totalled $844 million, up from $524 million a year earlier.

On an adjusted basis, Cameco says it earned a fourth-quarter profit of 21 cents per share compared with an adjusted profit of nine cents per share in the final quarter of 2022.

In its outlook for 2024, Cameco says it expects revenue of $2.85 billion to $3 billion and capital expenditures of $215 million to $250 million for the year.

Production for 2024 is expected to total 22.4 million pounds of uranium.

This report by The Canadian Press was first published Feb. 8, 2024.

Thomson Reuters Corp. raised its dividend by 10 per cent as it reported its fourth-quarter profit more than tripled compared with a year earlier and its revenue also climbed higher.

The company says it will now pay a quarterly dividend of 54 cents US, up from 49 cents US per share.

The increased payment to shareholders came as the company, which keeps its books in U.S. dollars, says it earned US$678 million or $1.49 per diluted share for the quarter ended Dec. 31, up from US$218 million or 45 cents US per diluted share in the last three months of 2022.

On an adjusted basis, which excludes the changes in value of the company’s London Stock Exchange Group investment and the related foreign exchange contracts as well as other adjustments, Thomson Reuters says it earned 98 cents per share, up from an adjusted profit of 75 cents per share a year earlier.

Revenue for the quarter totalled $1.82 billion, up from $1.77 billion a year earlier.

In its outlook for 2024, Thomson Reuters says it expects revenue growth of about 6.5 per cent for the year compared with three per cent growth in 2023.

This report by The Canadian Press was first published Feb. 8, 2024.

 Saputo Inc. says it earned $156 million in its second quarter, up from $145 million a year earlier.

The Montreal-based company says revenues for the quarter ended Sept. 30 were $4.3 billion, down from 4.5 billion during the same quarter last year.

Earnings per diluted share were 37 cents, up from 35 cents a year earlier.

Saputo says overall sales volumes were stable in its second quarter despite continued softening of global demand for dairy products, with higher domestic sales volumes more than offsetting lower volumes on the export side.

The company says during the rest of the financial year it expects to benefit from the carryover impact of price increases as well as other initiatives.

It also expects near-term inflation on its overall input costs to moderate, but remain elevated.

This report by The Canadian Press was first published Nov. 9, 2023.

Telus Corp. reported fourth-quarter net income attributable to common shares of $288 million, up from $248 million a year earlier.

The company says the profit amounted to 20 cents per share for the quarter ended Dec. 31, up from 17 cents per share in the last three months of 2022.

Operating revenue and other income totalled $5.20 billion, up from $5.06 billion in the same quarter a year earlier.

On an adjusted basis, Telus says it earned 24 cents per share for its fourth quarter, the same as its fourth quarter of 2022.

In the fourth quarter, Telus says it saw 404,000 net customer additions, including 126,000 mobile phones and 203,000 connected devices as well as 36,000 internet, 23,000 TV and 23,000 security customer connections.

Telus says residential voice connections were down by 7,000 in the quarter.

This report by The Canadian Press was first published Feb. 9, 2024.

Magna International Inc. raised its dividend as it reported its fourth-quarter profit and sales rose compared with a year ago.

The auto parts maker, which keeps its books in U.S. dollars, says it will pay a quarterly dividend of 47.5 cents US per share, up from 46 cents US per share.

The increased payment to shareholders came as the company reported net income attributable to Magna of US$271 million or 94 cents US per diluted share for the quarter ended Dec. 31, up from US$95 million or 33 cents US per diluted share a year earlier.

Sales for the quarter totalled US$10.45 billion, up from US$9.57 billion in the last three months of 2022.

On an adjusted basis, Magna says it earned US$1.33 per diluted share in its fourth quarter, up from an adjusted profit of 94 cents US per diluted share a year earlier.

In its outlook for 2024, the company says it expects total sales for the year between US$43.8 billion to US$45.4 billion and adjusted net income attributable to the company between US$1.6 billion and US$1.8 billion.

This report by The Canadian Press was first published Feb. 9, 2024.

Fortis Inc. (FTS) on Friday reported fourth-quarter net income of $279.9 million.

On a per-share basis, the St. john`S, Newfoundland-based company said it had profit of 58 cents. Earnings, adjusted for non-recurring gains, were 53 cents per share.

The results matched Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was also for earnings of 53 cents per share.

The electric and gas utility posted revenue of $2.12 billion in the period.

For the year, the company reported profit of $1.12 billion, or $2.29 per share. Revenue was reported as $8.53 billion.

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