The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0810 GMT - TotalEnergies' performance is sure and steady, Jefferies analysts write. Its update on the Middle East appears as expected, they say. The French energy major said 15% of its total production is locked down due to the conflict. It added that restarting production facilities in the region would require two to three months. Shares rise 0.4% to 78.57 euros. (adam.whittaker@wsj.com)
0757 GMT - TotalEnergies is doing all the right things as first-quarter earnings come in 10% of Barclays's estimates, the bank's analyst Lydia Rainforth writes. The French energy major has suffered from production lock-ins due to conflict in the Middle East. However, this has been offset by a better macro environment and a strong operational performance, she adds. Shares rise 0.95% to 79.01 euros. (adam.whittaker@wsj.com)
0752 GMT - France's TotalEnergies 5.9% interim dividend growth is likely slightly ahead of market expectations, RBC Capital Markets analysts Biraj Borkhataria and Adnan Dhanani write. RBC had expected 5% growth. The increase in net debt was driven by a working capital build and leverage ratio should trend down over the year, they write. Overall, the results are positive and beat expectations across the board, they write. Shares rise 0.95% to 79.01 euros. (adam.whittaker@wsj.com)
0054 GMT - Macquarie stays cautious about Karoon Energy following its 1Q performance, saying its ability to achieve annual production guidance is at risk. Karoon's average 1Q production rate at the Bauna oil field in Brazil was some 7% below that of the previous three months. Karoon recently took the field offline for scheduled maintenance lasting nearly a month. It also signaled a later resumption to full production from the Who Dat operation in the U.S. than previously thought. "While oil prices have been boosting cash flows, a recovery in operational momentum may be necessary for a re-rating," says Macquarie. It retains a neutral call on the stock. (david.winning@wsj.com; @dwinningWSJ)
0048 GMT - Beach Energy agreed to a series of natural gas swap arrangements during the early stages of the rampup of its Waitsia project in Western Australia. Beach this week provided the additional detail on those deals, which pleases Macquarie, even though it retains an underperform call on the Australian company's stock. The swap deals total some 30 petajoules. Beach needs to return 14 PJ in kind. "Additionally, Beach currently holds a 7 PJ overlift position (to be reduced through production ahead of next scheduled cargo)," Macquarie says. This will boost Beach's cash flow and strengthen its balance sheet, giving it more flexibility to do M&As. "We suspect consensus valuations don't yet adequately factor this in," Macquarie says of the swap deals. (david.winning@wsj.com; @dwinningWSJ)
0045 GMT - Middle East tensions are driving oil and natural gas prices higher, benefiting producers such as Beach Energy. Still, UBS retains a sell call on Beach's stock. "We see oil price risk skewed to the upside near term and flag potential for a cool Australian winter to consume current surplus domestic gas supply," analyst Tom Allen says. The latter would re-establish a link between Australian East coast wholesale gas prices and LNG netback prices, UBS says. This would drive gas prices higher into 1H FY27, benefiting Beach if it happens. Still, UBS says it remains cautious about the timing of an improvement in Beach's free cash flow until the Waitsia gas plant in Western Australia is finally commissioned. (david.winning@wsj.com; @dwinningWSJ)
0007 GMT - Oil falls in early trade on the UAE's plan to exit OPEC, which would allow the country to produce more oil than the cartel currently permits. "This could undermine the group's cohesion, creating internal disarray and weakening OPEC+'s ability to present a unified stance on production and geopolitical issues," IG's Axel Rudolph says in an email. However, ongoing U.S.-Iran tensions and near-zero traffic through the Strait of Hormuz have intensified supply concerns, the chief technical analyst adds. One-fifth of the world's oil is typically transported through the Strait of Hormuz. Front-month WTI crude oil futures are down 0.7% at $99.21 per barrel; front-month Brent crude oil futures are 0.6% lower at $110.64 a barrel. (ronnie.harui@wsj.com)
1915 GMT - Oil futures rise with Brent for a seventh consecutive session as the U.S. and Iran appear no closer to an agreement to reopen the Strait of Hormuz. The halt of transit through the strait takes the bearish edge off the U.A.E.'s decision to leave OPEC and pursue its energy goals, which include producing above its OPEC quota. U.A.E. accounts for about 10% of OPEC's production, but around 20% of its spare capacity, notes Rob Thummel of Tortoise Capital Management. "This development adds another layer of uncertainty to a global oil market already filled with uncertainty," he adds. WTI settles up 3.7% at $99.93 a barrel and Brent rises 2.8% to $111.26. (anthony.harrup@wsj.com)
1734 GMT - A muted market response to Shell's planned acquisition of Arc Resources misses good value for the target, strong strategic logic and simple economics, Jefferies' Mark Wilson argues. The strategic fit of Arc was identified several years ago, but the timing now looks more appropriate given a rise in Shell's share price and organic business improvement, the analyst says. Arc bring some $1.5 billion in annual free cash flow, while the Canadian company's circa $1.3 billion in capital expenditure can be fully absorbed into Shell's spending plans, Wilson says. Additionally, he says the Arc deal appears to an enabler for the second phase of the LNG Canada operation, where a final investment decision is expected later in 2026. (robb.stewart@wsj.com)
1732 GMT - The United Arab Emirates' exit from OPEC will affect the organization's ability to influence global oil supply and could increase market volatility, says Global X commodities analyst Kenny Zhu. Disagreements between Saudi Arabia and OPEC member states have been common and often stem from the size and allocation of quotas, he says. And while the market impact will more likely be felt over the long term given disruptions to the Strait of Hormuz, the exit will allow the U.A.E. to "more fully leverage its natural resources outside Saudi influence." (anthony.harrup@wsj.com)
1630 GMT - Tullow Oil's long-term future could be secured thanks to higher oil prices arising from the U.S.-Iran war, Panmure Liberum's Ashley Kelty says. The company said it had successfully reached a comprehensive refinancing of its debts. A debt burden in excess of $1.5 billion means the company's survival is still in doubt, the analyst writes. However high oil prices would generate enough cash to help the company pay down its debts. Tullow is "in need of a good war," the analyst writes. Tullow's latest refinancing will protect the company until another potential liquidity squeeze in 2028, Kelty says. Tullow Oil shares closed over 11% higher Tuesday. (Julia.Nasser@wsj.com)
1420 GMT - The United Arab Emirates' departure from OPEC will have little near-term impact on the oil market with the Strait of Hormuz closed, says Neil Crosby of Sparta Commodities. The producer's exit from the group "was always on the cards at some point," he says. The U.A.E. can probably produce between 4.5 million and 4.8 million barrels a day sustainably once the strait reopens--above its 3.4 million b/d OPEC quota--but given the loss of 1 billion barrels of oil supply since the war in the Middle East started "this won't be a huge headache for a while." (anthony.harrup@wsj.com)
(END) Dow Jones Newswires
April 29, 2026 04:20 ET (08:20 GMT)
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