The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0840 ET - Athabasca Oil's budget for next year strikes a balance between self-funded growth across its assets and maintaining strong free cash flow to fund ongoing share buybacks, Raymond James' Luke Davis argues. The company earmarks C$310 million in capital next year, which it expects will drive 37,000-39,000 barrels of oil equivalent a day. Davis says that is below his prior model for about 42,000 barrels of oil equivalent a day on a C$400 million budget, but says management's defensive approach makes sense in the context of prevailing commodity pricing. Raymond James has a market perform call on the shares, which had risen 40% in 2025. (robb.stewart@wsj.com)
0534 ET - Harbour Energy's acquisition of U.K. North Sea producer Waldorf looks like a good move, Jefferies analysts Mark Wilson and Niraj Bhosale write. Central to the value proposition are Waldorf's multibillion dollar U.K. tax losses, given that Harbour has used up most of its legacy U.K. tax shield position, they write. Waldorf's tax shields could generate around $900 million in value for Harbour, they say. Harbour Energy's shares trade up 4% to 207.40 pence.(adam.whittaker@wsj.com)
0351 ET - Oil prices rise, but are poised for a significant weekly loss amid diplomatic efforts to end the war in Ukraine and overall bearish fundamentals pointing to an oversupplied market next year. Brent crude is up 0.5% to $61.59 a barrel, while WTI gains 0.6% to $57.77 a barrel. However, the oil benchmarks are down 2.6% and 3.2%, respectively, on week. Negotiations between Russia and Ukraine are expected to be the main focus next week, while traders also monitor rising tensions between the U.S. and Venezuela. Meanwhile, the IEA said the market's projected surplus has narrowed, but a large supply overhang continues to cloud the outlook. OPEC's supply and demand forecasts, instead, point to a relatively balanced market next year. "This is a sharp reversal from outlooks earlier this year which pointed to tighter markets," ANZ analysts say. (giulia.petroni@wsj.com)
0320 ET - S-Oil is expected to report a 4Q earnings beat, with strong refining margins likely offsetting inventory-value losses and business costs, NH Investment & Securities analysts Y.K. Choi and S.W. Ryu write in a note. Operating profit at the Saudi Aramco-controlled South Korean refiner is likely to jump 73% on year to 395.30 billion won for October through December, well above a market consensus forecast of 288.60 billion won, they say. NH expects the Saudi official selling price for crude oil to be set at $1.1 a barrel above the Oman/Dubai average in 2026, down from $2.0 this year, likely helping S-Oil maintain strong profit margins. (kwanwoo.jun@wsj.com)
0134 ET - Sembcorp Industries' acquisition of Australia's Alinta Energy adds earnings but increases gearing, CGS International analysts say in a research report. The deal is accretive as it adds roughly S$140 million reported profit per annum, the analysts say. However, the Singapore-listed energy and urban solutions provider's net debt-to-adjusted Ebtida will likely increase from 3.6x for last twelve months through June 30, 2025, to 4.6x post-acquisition. Meanwhile, CGS International cuts its 2025-2027 EPS forecasts for Sembcorp Industries by 2%-4% to reflect reduced renewable-energy contribution. It lowers the stock's target price to S$7.77 from S$8.02 with an unchanged add rating. Shares are 2.2% higher at S$5.95. (ronnie.harui@wsj.com)
0013 ET - South Korean energy company SK Innovation's battery-making subsidiary, SK On, is set to improve its profitability after ending a joint-venture project with Ford Motor, Shinyoung Securities' Shin Hong-joo writes in a note. The analyst expects SK On to cut its debt by 6 trillion won after evenly splitting the unprofitable U.S.-based JV assets for independent operations. Additionally, it could save about 300 billion won in debt-servicing costs annually, Shin adds. SK On will also no longer have to recognize depreciation costs for new Kentucky facilities, which will go to Ford in 2026, he says. Shin expects SK On to expand energy storage system production at a Tennessee plant it will take over. (kwanwoo.jun@wsj.com)
(END) Dow Jones Newswires
December 12, 2025 08:40 ET (13:40 GMT)
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