Movement Alert|Oracle Falls 3.07% in Regular Trading, Stargate Key Pipeline Twice Rejected Now Seeking Route Change Adding Project Uncertainty

Market Focus08-19 22:23

On August 19, Oracle fell 3.07% in regular trading, trading at $138.185/share, with turnover of $1.047 billion. The decline was driven by escalating concerns over the Green Chile natural gas pipeline, a critical infrastructure component for Oracle's Jupiter AI data center project.

Energy Transfer's subsidiary Transwestern filed with the Federal Energy Regulatory Commission (FERC) to reroute portions of the Green Chile pipeline onto federal land managed by the Bureau of Land Management, after New Mexico's State Land Office rejected the right-of-way application twice. The pipeline is designed to supply a 2.5-gigawatt natural gas fuel cell project for Oracle's Jupiter data center, part of the broader Stargate initiative with a total investment cap of $165 billion that would serve OpenAI. The expected in-service date has been pushed from August 15 to February 1 next year.

The repeated regulatory setbacks compound existing pressures, including S&P's prior downgrade of Oracle's credit rating to BBB- and persistent bearish institutional options positioning, with multiple multi-million-dollar bear put spreads and synthetic short structures placed in recent sessions.

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