2024-09-18 22:55

HOUSTON, Sept 18 (Reuters) - Chesapeake Energy's $7 billion acquisition of rival natural gas producer Southwestern Energy is expected to close early in the fourth quarter, CEO Nick Dell'Osso said on Wednesday. The deal was delayed earlier this year after the U.S. Federal Trade Commission requested additional information from the two. Chesapeake announced the all-stock purchase in January and originally had expected the acquisition to close by June 30. Dell'Osso said on the sidelines of the Gastech energy conference that the U.S. natural gas market remains oversupplied. “We are going to be pretty cautious with how we think about changing our supply picture until we see that (oversupply) is no longer the case,” he said. Chesapeake is producing about 3 billion cubic feet per day of gas and when the Southwestern deal closes its output will rise to about 7 bcfd, he said. Sign up here. https://www.reuters.com/markets/deals/chesapeake-energy-says-deal-southwestern-energy-close-early-4q-2024-09-18/

2024-09-18 22:04

President Yoon to visit Czech Republic on Sept. 19-22 EDF and Westinghouse appeal Czech nuclear project decision Yoon aims to facilitate solution on intellectual property rights North Korea-Russia military cooperation also in focus SEOUL, Sept 19 (Reuters) - South Korea is confident it can overcome any obstacles to a multi-billion dollar project to build a nuclear plant in the Czech Republic, despite appeals against the deal launched by EDF and Westinghouse, President Yoon Suk Yeol told Reuters. Yoon, in a written response to questions ahead of his Sept. 19-22 visit to the Czech Republic, said the trip was partly aimed at ensuring the final contract was concluded seamlessly, adding that the project's success was of "paramount importance". The Czech Republic in July picked Korea Hydro & Nuclear Power (KHNP) to build two new nuclear power units, and possibly more, in its largest-ever energy investment initiative. But an appeal by Westinghouse - on the grounds that KHNP lacks a licensing agreement to export reactors which are based on the U.S. group's technology - has emerged as a potential obstacle. France's state energy firm EDF has also appealed the Czech decision after losing in the final tender round. Yoon said Seoul and Washington were working to create an "amicable atmosphere" among businesses in the nuclear energy sector as part of efforts to iron out any differences over intellectual property rights and expedite collaboration. "I believe this effort will help facilitate a smooth resolution to any dispute that might arise between the two sides," he said. "There is no need to worry about the Czech Republic's nuclear power plant construction project." Yoon's trip comes as Seoul and Prague celebrate the 35th anniversary of diplomatic relations. He is due to hold talks with Czech President Petr Pavel and Prime Minister Petr Fiala and to visit nuclear energy companies in Plzen, his office said. SECURITY TIES Since coming to power in 2022, Yoon has sought to ramp up security ties with European countries and NATO, partly propelled by deepening military cooperation between North Korea and Russia. Seoul and Washington have accused Pyongyang of providing missiles, munitions and other weapons to Moscow for use in the war in Ukraine, in return for economic and other military assistance. Moscow and Pyongyang have denied this. North Korea fired multiple short-range ballistic missiles on Wednesday, the second such launch within a week. The South's military has said last week's test of what the North described as a new 600-mm multiple launch rocket system could be intended for export to Russia. Yoon said he would explore joint responses with Czech leaders to address North Korea's nuclear and missile development and Pyongyang's increasing military transactions with Russia. "Their illicit military and economic cooperation... has greatly underscored the need to strengthen cooperation with countries in Europe like the Czech Republic, which share the same values as us," Yoon said. After North Korea and Russia this year clinched a strategic partnership treaty, Yoon's administration warned that it could consider arming Ukraine with lethal weapons, a potential shift from its policy of sticking to humanitarian and economic aid, if Moscow supplied Pyongyang with advanced weapons technology. Yoon declined to specify what his red line would be but said that North Korea and Russia would face consequences if they threatened South Korea's security. "Any actions threatening the safety and lives of our people cannot be tolerated," he said. Sign up here. https://www.reuters.com/business/energy/south-koreas-yoon-confident-czech-nuclear-plant-deal-will-be-completed-despite-2024-09-18/

2024-09-18 22:02

Furloughs will affect US-based executives, managers and workers Union says no progress made in talks with federal mediators, no new talks scheduled Lengthy strike could cost billions, threaten credit rating Boeing shares ended down about 1% Sept 18 (Reuters) - Boeing (BA.N) , opens new tab said on Wednesday it will temporarily furlough tens of thousands of employees after about 30,000 machinists went on strike on Friday, halting production of its best-selling 737 MAX and other airplanes. "We are initiating temporary furloughs over the coming days that will impact a large number of US-based executives, managers and employees," CEO Kelly Ortberg said in an email to employees. "We are planning for selected employees to take one week of furlough every four weeks on a rolling basis for the duration of the strike." The strike, Boeing's first since 2008, adds to a tumultuous year for the planemaker which began when a door panel blew off a new 737 MAX jet in mid-air in January. Ortberg also said he and other Boeing leaders "will take a commensurate pay reduction for the duration of the strike." Boeing and the International Association of Machinists and Aerospace Workers held two days of discussions in the presence of federal mediators. The union, which said on Tuesday it was frustrated with the first day of mediation, said late on Wednesday it had concluded another day of talks with "no meaningful progress." "While we remain open to further discussions, whether directly or through mediation, currently, there are no additional dates scheduled," the union said. "We are fully committed to fighting for the contract our members deserve." Boeing did not immediately respond to a request for comment on the IAM statement. The extensive furloughs show Ortberg is preparing the company to weather a prolonged strike that is not likely to be easily resolved given the anger among rank-and-file workers. A protracted labor battle could cost Boeing several billion dollars, further straining finances and threatening its credit rating, analysts said. "It's unlikely that the cuts will fully offset the costs of a prolonged strike," said Ben Tsocanos, aerospace director at S&P Global Ratings. The union has been pushing for a 40% raise over four years in its first full contract negotiations with Boeing in 16 years, well above the planemaker's offer of 25%, which was resoundingly rejected. Brian Bryant, the IAM's international president, said actions like furloughs and the cutback in salaries amounted to "smoke and mirrors," given earlier company spending on bonuses and compensation for top executives. "This is just part of their plan to make it look like they're trying to save money," added Bryant, who was in the Seattle area picketing on Wednesday with the "resilient" membership. "The ball is in Boeing's court. They could settle this strike tomorrow," Bryant said, adding it would take fair pay, pension, restoring a bonus and health insurance. In the email to employees, Ortberg said the company would not take any "actions that inhibit our ability to fully recover in the future. All activities critical to our safety, quality, customer support and key certification programs will be prioritized and continue, including 787 production." The company employs about 150,000 people in the United States. It is unclear exactly which employees are affected by the furloughs. A union representing Boeing's engineers said their members were not affected. The strike, now six days old, also carries risks for the company's vast network of suppliers, some of whom are also considering furloughs, several told Reuters. "Certainly suppliers are worried," said Nikki Malcom, CEO of the Pacific Northwest Aerospace Alliance. "It's going to have a significant impact on suppliers if it goes on a long time." PRODUCTION HALTS The strike has halted production of Boeing's 737 MAX narrowbody jets, along with its 777 and 767 widebody aircraft, delaying deliveries to airlines. A major Chinese lessor, however, said it placed a fresh order on Wednesday for 50 MAX jets for delivery from 2028 to 2031, in a sign that longer-term demand for Boeing planes remains intact. The manufacturer said on Monday it was freezing hiring to cut costs as its balance sheet is already burdened with $60 billion of debt. The company has also stopped placing most orders for parts for all Boeing jet programs except the 787 Dreamliner, in a move that will hurt its suppliers. One senior supplier dismissed the latest announcement as "panic mode" and said it underscored Boeing's lack of room to maneuver due to its already-strained balance sheet. "They would be better to settle; they are getting very near the precipice," said the supplier, who asked not to be named. Boeing shares have fallen about 40% so far this year. Sign up here. https://www.reuters.com/business/aerospace-defense/boeing-temporarily-furlough-large-number-us-executives-2024-09-18/

2024-09-18 21:56

Sept 18 (Reuters) - Energy Transfer (ET.N) , opens new tab said a fire at its natural gas liquid (NGL) pipeline in La Porte, Texas, which started on Monday, continued to safely burn itself out on Wednesday with the flame having diminished overnight. The pipeline was isolated for residual product to burn off, after a massive fire knocked out power to thousands of homes and businesses and prompted an evacuation of the area. "When isolation equipment is installed, we will purge a short section with nitrogen, which will extinguish the fire, and begin repairs," the company said. The fire started after a car crashed into an above-ground pipeline valve, and it is suspected to involve the Justice pipeline, a 20-inch Y-grade line that connects with Energy Transfer’s Liberty and West Texas Gateway pipelines, researchers for investment firm Tudor, Pickering, Holt & Co said in a note. Energy Transfer has not confirmed the name or capacity of the pipeline that ruptured and was not available immediately to confirm the details. Y-grade refers to a mix of NGLs, including ethane, propane, butane, isobutane, and natural gasoline, which are extracted from the raw natural gas stream. Propane, butane, and isobutane are also called liquefied petroleum gas (LPG) and are mainly used as fuel for cars, cooking, heating and to produce other petrochemicals. The Justice pipeline, which entered service in 2012 with a capacity of 375,000 barrels per day, carries Y-grade from the Permian and Eagle Ford shale fields to Energy Transfer's Mont Belvieu fractionators. "ET will likely be able to utilize its vast network, including its storage assets and Lone Star NGL line, to absorb the service disruption. News of the event sent LPG prices higher, with propane and butane up 7% and 10% since Friday’s close" the research note added. Sign up here. https://www.reuters.com/business/energy/energy-transfer-pipeline-fire-burns-third-day-la-porte-texas-2024-09-18/

2024-09-18 21:54

Sept 18 (Reuters) - U.S. utility Vistra (VST.N) , opens new tab announced on Wednesday it would acquire the 15% equity it does not already own in its subsidiary Vistra Vision for nearly $3.25 billion in cash. Vistra Vision, set up last year after the parent company acquired Energy Harbour, is a subsidiary holding company that owns nuclear generation facilities with a capacity of nearly 6.4 gigawatts, the renewables and energy storage business and Vistra's retail business. Nuclear power companies such as Vistra have become top S&P 500 performers this year, as demand for clean and sustainable supply of energy from data centers, manufacturers and electric-vehicle makers has increased. Vistra's shares have jumped nearly 137% so far this year. "Through this transaction we are simplifying the overall structure by acquiring the minority interest at an attractive valuation," Vistra CEO Jim Burke said. The equity, currently owned by affiliates of Nuveen Asset Management and Avenue Capital Management II, would be paid off by Vistra in five installments over two years. The transaction is expected to close by Dec. 31. The company also said it expects to execute at least $2.25 billion of share repurchases in 2024 and 2025 and at least another $1 billion in 2026. Sign up here. https://www.reuters.com/markets/deals/vistra-acquires-remaining-stake-worth-325-bln-subsidiary-vistra-vision-2024-09-18/

2024-09-18 21:52

HOUSTON, Sept 18 (Reuters) - The CEO of U.S. natural gas producer EQT Corp on Wednesday said U.S. prices for the fuel will remain below $3 per million British thermal units in the short term. As prices fell to multi-year lows earlier this year, EQT curtailed 1 billion cubic feet per day (bcfd) of its gas output. Several rival U.S. shale gas producers also cut drilling to stem over production. Toby Rice, CEO of the largest U.S. gas producer, said at the Gastech energy conference that he expects production curtailments to ease by next year as demand for U.S. liquefied natural gas exports rise. U.S. gas futures fell 4 cents on Wednesday to settle at $2.284 per million Btus. Rice, whose company has agreements with LNG developers Texas LNG and Commonwealth LNG, said demand for natural gas to feed LNG exports and fuel power plants "has never been more important." He said the U.S. needs to allow market forces to dictate the fuel mix, criticizing what he called political forces hampering gas development. "We need to get back to a place where the most affordable, most reliable, cleanest energy finds its way to the marketplace," said Rice. "The political forces needs to take a backseat." Sign up here. https://www.reuters.com/business/energy/eqt-ceo-sees-natural-gas-prices-remaining-below-3mmbtu-2024-09-18/