Energy

Ithaca Energy has agreed to buy Suncor Energy's offshore Canadian assets for $860 million in cash, its first acquisition outside the UK, sending shares in the North Sea oil producer up 3%. Suncor could receive a further $250 million depending on average Brent crude prices over a 27-month period starting July 1, 2026, with any additional payment funded from Ithaca's free cash flow. The deal, expected to close in the first half of 2027, gives Ithaca a 48% operated stake in Terra Nova, a 40% non-operated stake in White Rose Existing Lands and a 38.6% stake in White Rose Growth Lands, including the West White Rose development. Ithaca said the assets add 103 million barrels of oil equivalent of proven and probable reserves at an acquisition cost of about $8 per barrel of oil equivalent, and should contribute average production of about 30,000 barrels of oil equivalent per day between 2027 and 2031, rising to 35,000-40,000 barrels per day in 2029 as West White Rose ramps up. The assets generated about $235 million of adjusted EBITDAX in the 12 months to June 30, 2026, and Ithaca plans to fund the upfront payment with cash, its existing borrowing facility and secured financing in Canada, while assuming all decommissioning obligations; the transaction needs approval under Canada's Competition Act and carries a $50 million break fee in certain circumstances.

PTT Oil and Retail Business Public Company Limited, or OR, is pressing ahead with its budget hotel business through a joint venture, Pit Stop Hotel Company Limited, in which OR holds 49% and Centara Hotels and Resorts holds 51%. The project has total investment value of approximately 706 million baht, split between 346 million baht from Modulus Ventures within the OR group and 360 million baht from Centara. The first phase will pilot six model hotels in Phuket, Kanchanaburi, Phra Nakhon Si Ayutthaya, Songkhla (Hat Yai), Chonburi and Bangkok. The pilot branches will gradually open starting in the third quarter of 2027, beginning with Kanchanaburi, Rojana Industrial Park and Hat Yai Airport, which are already under construction. In the second quarter of 2028, openings will follow in Bangkok's Don Mueang area opposite Terminal 2 near the Red Line station, Phuket Airport, and the Jomtien Beach intersection in Pattaya, which are currently undergoing environmental impact assessment. Miss Rajsuda Rungsiyakull, Senior Executive Vice President of Special Business at OR, said room rates start at 800 to 1,300 baht per night. She estimated the budget hotel market will grow about 7.3% from 2023 to 2028, with an EBITDA margin of roughly 40-45% and EBIT of about 20%. The payback period is expected to be around 7-10 years, with a target occupancy rate of approximately 75-80%, and the company aims to expand to 50 locations by 2031, both inside and outside service stations. It will start with the COCO model at the first six branches before expanding into franchising and hotel management services. Mom Luang Pichthong Thongyai, Chief Executive Officer of OR, said that by 2031 service stations will increase from 2,300 to 2,800, and daily customers will rise to 5 million from 3.9 million per day at present. The business aligns with the Asset Optimization strategy, which uses vacant space within the PTT Station network to create added value, driving the OR network toward becoming A Must-stop Destination.

Pulsar Helium Inc. announced that its wholly owned subsidiary, Pulsar Helium (MI) Inc., has signed a contract with Xcalibur MPH (Canada) Ltd to conduct a high-resolution airborne gravity gradiometry and magnetic survey at its Falcon project in Michigan's Upper Peninsula. The FALCON System Survey will cover approximately 14,727 line kilometres over an initial priority area within the Falcon Project, which comprises an exclusive exploration option over approximately 488,090 gross acres of mineral rights, with commencement expected in mid-Q4 2026. Survey lines will be spaced 500 metres apart on a 315-degree northwest-southeast orientation, with tie lines spaced 5,000 metres apart on a 045-degree northeast-southwest orientation, flown at a nominal terrain clearance of approximately 165 metres. The program will be integrated with a newly released high-resolution airborne magnetic and radiometric dataset funded by the U.S. Geological Survey's Earth Mapping Resources Initiative, which covers a large portion of the Falcon Project at no acquisition cost to Pulsar. CEO Thomas Abraham-James said the contract marks an important step in advancing Falcon from district-scale land assembly into systematic target generation, applying the data-led approach developed at the company's Topaz helium project in Minnesota to comparable geology in Michigan.

Bualuang Securities said that BCP's sustainable aviation fuel (SAF) plant, the first in Thailand, began operating in May 2026 with a production capacity of 7,000 barrels per day, or 1 million liters per day, and can switch production between SAF and renewable diesel. The main feedstock is used cooking oil, about 40% of which comes from domestic sources and 60% is imported, while the company has long-term feedstock supply contracts with major food and retail operators in Thailand. SAF demand is being driven by increasingly stringent fuel blending mandates worldwide, with the EU starting at 2% in 2025 and rising to 6% in 2030, while Thailand begins with a 1% target in 2026 before increasing to 1-2% in 2027-29 and 3-5% in 2030-32. Global SAF demand is expected to rise from 3.6 billion liters in 2026 to 4.5 billion liters in 2027, although rising supply may pressure margins somewhat going forward. The business's highlight is its profitability, with the SAF spread rising from about 1,000 US dollars per ton in 2025 to roughly 1,300 US dollars per ton in 2026 year-to-date, or about 3 times the spread of conventional jet fuel. The plant generated EBITDA of about 1 billion baht in the second quarter of 2026, and SAF EBITDA is expected at 4 billion baht in 2026 and 6 billion baht in 2027. Even in a worst case where the margin falls to 800 US dollars per ton, it would still be about 2 times the spread of conventional jet fuel and generate 2027 EBITDA of about 4 billion baht. There is also upside from a 43% capacity expansion to 10,000 barrels per day, which is not yet fully reflected in long-term estimates and would be additional upside if the company proceeds with the project. Bualuang Securities maintained its Hold recommendation with a target price of 57 baht and an equal-weight stance on the energy sector. Key issues to watch are the direction of SAF margins as new supply gradually enters the market and clarity on further capacity expansion.

Shell plc is weighing the potential sale of its U.S. chemicals operations for as much as $8 billion, part of a broader portfolio optimization push that also includes a new deep-water acquisition and a retail expansion. In September, Shell Offshore acquired a 30% interest in Conifer, an exploration prospect operated by BP in the U.S. Gulf of Mexico, while subsidiary Equilon Enterprises LLC will raise its stake in Tri Star Energy from 33% to 100%, enabling supply arrangements with close to 650 dealer-owned locations and expanding Shell's Mobility & Convenience US portfolio to around 550 company-owned convenience sites. The moves follow a second quarter in which record refinery utilization and upstream production in Brazil drove adjusted earnings to $9.8 billion, with a $3.4 billion working capital inflow helping generate $21.4 billion in cash flow from operations. The recently finalized ARC Resources acquisition eases concerns about resource depletion, though it was financed largely with shares, diluting existing shareholders. Morgan Stanley recently lifted its price target on Shell to $101.30, and the stock closed at $95.61 on October 1, up 29.50% so far in 2026, with a market capitalization of $267.76 billion and a forward P/E of 9.57x.

Uranium Energy Corp. reported fourth-quarter production of 82,744 pounds of U3O8, up 157% from the third quarter, as three new header houses at Christensen Ranch ran a full quarter and Burke Hollow in South Texas contributed its first full quarter. Total cost per pound across both mines dropped 33% to $36.54, and approval for four more header houses arrived on September 28, with production expected to start within weeks. The company sold 400,000 pounds from inventory at $93.13 per pound and still holds 1.256 million pounds worth about $109 million at spot prices, backed by $495 million in cash and no debt. Management declined to give formal production guidance because header house and wellfield approval timing is outside its control, and its refining subsidiary is still preparing its license application to the Nuclear Regulatory Commission, with a cost estimate not expected until mid-2027. Hedge fund interest cooled to 26 funds holding the stock from 32 in the prior quarter, short interest stands at 14.60% of the float, and the forward P/E of 178.57 as of October 2 reflects expectations for a production base far larger than today's.

Analysts at several securities firms hold a positive view on Bangchak Corporation Public Company Limited, or BCP, after its sustainable aviation fuel business, SAF, began contributing significantly to earnings. BCP's SAF plant started commercial operations on 21 May 2026, with an investment of about 8.5 billion baht and a production capacity of roughly 7,000 barrels per day, or about 1 million litres per day. In the second quarter of 2026, its average capacity utilisation rate was approximately 6,800 barrels per day, with product sales of about 39 million litres, generating EBITDA of roughly 1 billion baht for BCP, or nearly 4% of total EBITDA. Asia Plus Securities gives a trading view with a target price of 58 baht. Trinity Securities recommends a speculative buy with a target price of 55 baht. Yuanta Securities Thailand has upgraded its recommendation to buy with a target price of 58 baht, and Land and Houses Securities maintains a buy recommendation with a target price of 56 baht. Over the longer term, BCP plans to raise SAF production capacity from 7,000 barrels per day to about 10,000 barrels per day within five years, largely using existing infrastructure. Meanwhile, demand for SAF looks set to grow on the back of Thailand's plan to push SAF blending, which aims to start at 1% and increase in later phases. However, competition for UCO feedstock still bears watching, as it could put pressure on costs.

Banpu, or BANPU, is pressing ahead with expanding its energy trading capabilities in Japan's electricity market through Banpu Power Trading G.K., applying AI technology to support electricity trading decisions. Niti Pitakteeratham, Country Head for Japan, said the company has developed AI models that combine the knowledge and experience of traders with analysis of market data and energy price trends, to help assess trading opportunities, determine trade sizes, and manage risk, alongside upgrading energy trading expertise within its Power+ group of electricity and related businesses. Both AI models passed simulated electricity trading tests between January and March 2026, using historical data from Japan's electricity market for analysis, and delivered better results than conventional trading methods because they achieved a better balance between returns and risk management. At present, the company applies the AI models together with traders to trade electricity in Japan's energy market, accounting for more than 90% of its total electricity trading volume across six regions, while traders still review the AI's recommendations and remain the final decision-makers before any actual trade is executed. BANPU also plans to study the feasibility of extending the AI models to electricity trading markets in other countries, as well as to other business groups, to support the long-term growth of its energy business.

Banpu Public Company Limited, or BANPU, is pressing ahead with expanding its energy trading capabilities in Japan's power market through Banpu Power Trading G.K. by applying AI technology to support power trading decisions. Banpu has developed AI models that combine the knowledge and experience of traders with analysis of market data and energy price trends, to help assess trading opportunities, determine trade sizes and manage risk, alongside raising the level of energy trading expertise within its power and related businesses group, or Power+. Two models have been developed. The first analyzes data to assess energy price direction and identify trading opportunities, while also gauging the confidence level of each signal. The second assesses overall market conditions to choose an approach and set trade sizes in line with the situation. Both models passed simulated power trading tests between January and March 2026, using historical data from Japan's power market for analysis, and were able to produce better results than conventional trading methods. At present, Banpu applies its AI models alongside traders to trade power in Japan's energy market, accounting for more than 90% of the company's total power trading volume across 6 regions. Traders remain the ones who review the AI's recommendations and make the final decision before any actual trade is executed. Niti Pitakteeratham, Country Head for Japan at Banpu Public Company Limited, said that bringing AI models in to support power trading does not mean technology will replace people, but rather that AI is being used to enhance traders' capabilities, especially in analyzing large amounts of data and assessing complex situations. At the same time, Banpu also has a plan to study the feasibility of extending its AI models to power trading markets in other countries, as well as to other business groups, to strengthen the competitiveness of both the organization and its personnel and to support the long-term growth of its energy business.

Banpu Public Company Limited announced progress in applying AI technology to support power trading decisions in Japan's electricity market under Banpu Power Trading G.K. The company has developed two AI models that combine traders' knowledge and experience with analysis of market data and energy price trends to assess trading opportunities, determine trade sizes, and manage risk. The first model analyzes data to assess energy price direction and identify trading opportunities, while evaluating the confidence of each signal. If a signal remains unclear, the system can reduce trade size or choose not to act in order to control risk. The second model assesses overall market conditions to determine trading approach and size in line with the situation. Both models underwent simulated power trading tests between January and March 2026 using historical data from Japan's electricity market, and delivered better results than conventional trading methods. Banpu has applied the AI models alongside traders in power trading in Japan's energy market for more than 90% of the company's total power trading volume across 6 regions, with traders still reviewing recommendations and making final decisions. Niti Pitakteeratham, Country Head – Japan, said that bringing in AI models does not mean technology will replace people, but rather enhances traders' ability to analyze large amounts of data and assess complex situations. The company also plans to study the feasibility of extending the AI models to power trading markets in other countries, as well as to other business groups.

Suncor Energy said Sunday it agreed to sell its 48% interest in Terra Nova, 40% interest in White Rose, and 38.6% interest in West White Rose offshore assets to Ithaca Energy for C$1.2B (US$860M) of upfront cash plus an additional contingent payment of up to C$350M (US$250M) tied to future oil prices. Ithaca Energy, one of the largest independent operators in the U.K. North Sea, will also assume investment commitments and all future liabilities associated with the assets, including a C$500M regulatory well compliance program starting in 2027 at Terra Nova and C$1.4B in estimated abandonment and lease liabilities. Suncor CEO Rich Kruger said the transaction further focuses the company's efforts on opportunities that generate the greatest long-term shareholder value, aligning its portfolio around its competitive advantages and its physically integrated business, underpinned by large-scale, long-life oil sands resources. Suncor also said it increased share repurchases under its normal course issuer bid from $500M to $750M per month beginning in October 2026.

Banpu Public Company Limited, or BANPU, is pressing ahead to strengthen its energy trading business in Japan's electricity market through Banpu Power Trading G.K., using AI technology to support electricity trading decisions under its Power+ group of power and related businesses. The company has developed two AI models. The first analyzes energy price trends, identifies trading opportunities, and assesses the confidence level of signals. The second evaluates overall market conditions to select trading approaches and determine trade sizes. Banpu tested both models in simulation between January and March 2026 using historical data from the Japanese power market, and found they produced better results than conventional trading methods. At present, the company has AI working alongside human traders, covering more than 90% of its total electricity trading volume across 6 regions, with traders still making the final decisions. Niti Pitakteeratham, Country Head for Japan at BANPU, said the goal of using AI to support electricity trading is not to have technology replace people, but to enhance traders' capabilities. Banpu is meanwhile studying the feasibility of extending its AI models to electricity markets in other countries, as well as to other businesses within the group.

Francois Provost, chief executive of French automaker Renault, said on the 3rd that the company will invest more than 10 billion euros in France over the next five years in electric vehicles and more affordable cars. In an interview with radio station France Inter, Provost explained that over the past five years Renault invested 13 billion euros in France and completely transformed its production setup to focus on EVs, adding that if social and political conditions allow, it will again invest more than 10 billion euros to continue promoting EVs and working to bring vehicle prices down. In France, EVs reached a record 42 percent of new car registrations in September, with demand boosted by soaring fuel prices since the start of the Iran war. According to Provost, Renault will produce 500,000 vehicles in the country in 2025 and will raise output by at least 25 percent in 2026 thanks to EV expansion.

Refinery stocks are getting a boost from the Singapore reference refining margin, which rose to around 20.5 dollars per barrel in late September 2026 and is expected to hold at high levels. Suwat Sinsadok, managing director of Global Securities, said the fourth-quarter 2026 refining margin will be close to the 20.5 dollars per barrel seen in the third quarter and could reach as high as 30 dollars per barrel given tight global oil supply. He set a target price of 88 baht per share for Thai Oil, or TOP, the most outstanding stock in the group. Sorachai Pitayapruek, a fundamental analyst at Krungsri Securities, said the catalyst came from an attack on the East-West oil pipeline in Saudi Arabia that forced a temporary shutdown, pushing tanker freight rates from more than 10 dollars per barrel to more than 20 dollars per barrel. He expects the fourth-quarter 2026 refining margin to stay in double digits, supported by winter oil storage demand. Third-quarter 2026 earnings for the refinery group are expected to recover clearly, especially TOP, which posted a stock loss of about 7 billion baht in the second quarter of 2026 and may instead book a stock gain. Krungsri Securities maintained a positive investment weighting on refinery stocks, naming TOP the most outstanding with a target price of 83 baht, supported by its Clean Fuel Project.

Banpu Public Company Limited has adopted AI technology to support electricity trading in Japan's power market through Banpu Power Trading G.K. The company developed AI models that combine the knowledge and experience of its traders with analysis of market data and energy price trends, in order to assess trading opportunities, determine trade sizes, and manage risk. Both AI models underwent simulated electricity trading tests between January and March 2026, using historical data from the Japanese power market, and delivered better results than conventional trading methods thanks to a better balance between returns and risk management. Currently, Banpu uses AI models alongside human traders for more than 90% of its total electricity trading volume in Japan's energy market across six regions, while traders continue to review the AI's recommendations and remain the final decision-makers. Niti Pitakteeratham, Country Head for Japan at Banpu, said AI is not replacing people but enhancing traders' ability to analyze large volumes of data and assess complex situations. Banpu also plans to study the feasibility of extending its AI models to electricity trading markets in other countries, as well as to other business groups.

The Thai stock market index on October 2, 2026 closed at 1,571.62 points, up 7.71 points or 0.49%, with trading value of 71.09 billion baht. Foreign investment flowed out toward U.S. government bonds, which offer lower risk and yields above 5%, while Thai stocks still await third-quarter 2026 earnings. PTT Oil and Retail Business, or OR, sent positive signals as it prepares for a tourism recovery that is driving growth in jet fuel sales. It has also pinned its flag in Phuket and is pressing ahead with budget hotels, gradually opening them in 2027-2028, with a target of 50 locations by 2031. The first phase will pilot six model hotels in high-potential locations: Phuket, Kanchanaburi, Phra Nakhon Si Ayutthaya, Songkhla (Hat Yai), Chonburi and Bangkok, to extend the business and turn PTT Station service stations into safe, standardized overnight stops nationwide. Meanwhile, ITEL won a big project from the Provincial Electricity Authority, or PEA, to organize communications cables across two regions, the central and southern regions, with a combined value of more than 266 million baht, reflecting confidence in its potential and experience in managing communications infrastructure, and positioning it to pursue future telecommunications infrastructure projects. WP completed its share buyback plan as scheduled, repurchasing the full 15,000,000 shares, or 2.94%, for an investment value of 57.08 million baht. CEO Chomkamol Poompanmoung is confident the move will build investor confidence and lift return on equity and earnings per share, while the company proceeds with this year's business plan, targeting LPG sales of 770,000 tons and focusing on expanding the domestic market alongside its rooftop solar business. BA, Bangkok Airways, is passing on something special to thank passengers on the occasion of winning the World's Best Regional Airline and Best Regional Airline in Asia awards from the SKYTRAX World Airline Awards for the 10th consecutive year, with the Lucky TEN campaign, building on the Thank You for 10 Amazing Years campaign launched last September. It invites passengers to join a draw for the right to buy tickets at a special 90% discount, or pay only 10% of the Web Promo (P-Q Class) fare, on five domestic routes, limited to just 200 entitlements, from October 5-9, 2026 only.

PTT Oil and Retail Business Public Company Limited, or OR, has unveiled plans to develop a first phase of six budget hotels together with Central Plaza Hotel Public Company Limited, or CENTEL. OR will hold a 49% stake and CENTEL 51%. Five of the sites are at service stations and one is outside a service station. The first three branches, already under construction, are in Kanchanaburi, Phra Nakhon Si Ayutthaya and Songkhla, and are expected to open in the third quarter of next year. The other three, in Bangkok, Chonburi and Phuket, are undergoing environmental reports and will open in the second quarter of 2028. The six hotels use a combined investment budget of 700 million baht, with construction costs capped at no more than 1 million baht per room. Funding will be split 50% equity and 50% debt. The buildings will be five to six storeys tall, with average room sizes of 18 to 20 square metres and 79 rooms. The company targets a first-year occupancy rate of about 60%, rising to 60–70% in the second year, with a long-term goal of 75–80%. It estimates a gross profit margin of about 50%, an EBITDA margin of 40–45%, an EBIT margin of about 20%, and a net profit margin of no less than 10%. Room rates will range from 800 to 1,300 baht, with a loyalty programme linking Blue Plus Points and The ONE Points. Ratchasuda Rangsiyakul, Senior Executive Vice President of Special Business 1 at OR, said entering the hotel business will help lift traffic at its service stations from 3.9 million users per day to 5 million per day. The first six branches will serve as a pilot to test the system before expanding to a full 50 locations in 2031, and once the model proves successful the company will scale up through franchising. The joint venture will provide management services to a standard, and dealers in the group have already approached the company seeking to open hotels.

TC Energy Corporation has confirmed that Coastal GasLink Phase 2 will proceed following LNG Canada's expansion decision, nearly doubling capacity along the existing 670-kilometre route in British Columbia through new compressor stations and facility upgrades. Construction on the expansion is expected to start in early 2027, with service targeted for the early 2030s. The company also declared a continued quarterly dividend of C$0.8775 per share, or C$3.51 annualized. TC Energy's narrative projects CA$18.2 billion in revenue and CA$5.3 billion in earnings by 2029, with a fair value estimate of CA$98.78 implying 17% upside to the current price. Two fair value estimates from the Simply Wall St Community span from C$33.89 to C$98.78.

Halliburton confirmed to Argentine authorities in early October 2026 that it and its subsidiaries will not work on the Malvinas Islands' Sea Lion project or conduct any hydrocarbon activities in the surrounding area, while separately signing memoranda of understanding with Eneva S.A. and WESCA to support oil and gas development opportunities in Venezuela. The two moves together reframe Halliburton's regional exposure, regulatory risk profile and future contract pipeline across Latin America, with the Venezuela agreements offsetting some perceived lost optionality around Malvinas through a different Latin American pathway for international revenue, offshore and unconventional exposure. Those agreements sit alongside recent multi-year wins in Suriname, Brazil and Cyprus, reinforcing that the key short-term catalyst remains Halliburton's ability to execute on higher-complexity international contracts at acceptable margins and with controlled start-up costs. Halliburton's narrative projects $25.1 billion in revenue and $2.7 billion in earnings by 2029, requiring 3.9% yearly revenue growth and an earnings increase of about $1.1 billion from $1.6 billion today, and yields a $43.44 fair value, a 36% upside to its current price. More optimistic analysts had already assumed revenues of about US$26.8 billion and earnings near US$3.4 billion before the Venezuela and Malvinas news, while other fair value estimates put the stock as low as $34.03.

Canadian Natural Resources and four other oil sands producers, together with the federal and Alberta governments, committed in late September 2026 via a trilateral MOU to advance the Pathways CCS project, targeting up to 16 million tonnes of CO2 capture annually by 2045, with final binding terms still pending. The conditional framework directly links potential future oil sands expansion to large-scale emissions management, which could reshape long-term cost structures, policy risk and capital allocation for Canadian Natural Resources. The company's key short-term catalyst remains operational and cash flow delivery against 2026 guidance, while the biggest current risk centers on future carbon costs and long-term policy exposure should the framework move from conditional to binding terms. Recent announcements also include substantial share buybacks alongside a CAD 0.625 quarterly dividend, highlighting a tension between returning cash today and preserving flexibility for potentially large CCS and growth commitments. The company's narrative projects CA$40.8 billion in revenue and CA$8.9 billion in earnings by 2029, with a CA$72.71 fair value estimate, while the lowest-estimate analysts assume revenues could fall to about CA$38.0 billion and earnings to CA$5.5 billion.

The U.S. Supreme Court opened its new term Monday with arguments in a case that could determine whether ExxonMobil and Suncor Energy can be held liable under state law for costs attributed to climate change. The dispute stems from a lawsuit filed by the city and county of Boulder, Colorado, accusing the oil producers of contributing to climate change and misleading the public about the risks of fossil fuels, and seeking compensation for infrastructure repairs, emergency management, environmental damage and public health effects. Exxon and Suncor appealed after the Colorado Supreme Court allowed the case to proceed, arguing that federal law including the Clean Air Act bars state and local governments from pursuing claims that effectively regulate greenhouse-gas emissions, a position backed by the Trump administration. The stakes extend well beyond Colorado, as nearly 60 state and local governments have filed similar lawsuits seeking billions of dollars from fossil-fuel producers, and a broad ruling for the companies could provide grounds for dismissing many of those cases. The court has a 6-3 conservative majority, though Justice Samuel Alito has recused himself, and a decision is expected by the end of June.

CIBC raised its price target on Enerflex to CA$30 from CA$27.50 after updating its model for a 450 MW behind-the-meter power generation award tied to a North American data center developer, while keeping a Neutral rating on the stock. The firm had already lifted its target to CA$30 in July 2026, and it cited strong Engineered Systems bookings and a modest EBITDA beat in the second quarter as positives supporting execution on the core business. CIBC noted that earlier weakness in the shares followed a lack of secured data center power generation bookings, which it believes pushed potential catalysts into later quarters. On the updated assumptions, Simply Wall St's fair value for Enerflex rose to CA$46.94 from CA$44.50, with revenue growth now 6.72% versus 3.39% previously, net profit margin at 8.64% versus 9.01%, a future P/E of 18.29x versus 17.87x, and a discount rate of 6.83% versus 6.68%.

Cenovus Energy reported stronger-than-expected second-quarter 2026 operating results, raised its 2026 production guidance to 970,000 to 1,010,000 BOE per day, trimmed Oil Sands operating cost expectations, and distributed about C$1.40 billion to investors through dividends and share repurchases. Alongside other major oil sands producers, Cenovus moved forward with the Pathways CCS initiative under a new federal-provincial-industry framework that ties future oil sands expansion to large-scale emissions reduction infrastructure. The company's narrative projects CA$54.9 billion in revenue and CA$6.1 billion in earnings by 2029, implying fairly flat yearly revenue growth and an earnings decrease of about CA$0.6 billion from CA$6.7 billion today. That forecast yields a CA$51.15 fair value, an 11% upside to the current price, while the most optimistic analysts had already assumed revenue growth toward about CA$56.8 billion and earnings near CA$6.9 billion by 2029. The biggest swing factor near term remains regulatory and fiscal clarity around carbon and project approvals rather than quarterly numbers.

Oceaneering International's Aerospace and Defense Technologies segment has secured a follow-on U.S. Navy contract for Dry Deck Shelter maintenance, overhaul, engineering, and field change services, a five-year agreement with a potential value of US$154,000,000 supporting special operations forces and undersea vehicles. The award strengthens the near-term catalyst of growing ADTech revenues while modestly reducing the risk that earnings depend too heavily on deepwater oil and gas project activity. It follows the July 2026 Defense Innovation Unit CAMP shortlisting for an Extra Large Uncrewed Undersea Vehicle, together pointing to ADTech increasingly supporting undersea defense missions. Oceaneering's narrative projects $3.5 billion revenue and $103.3 million earnings by 2029, requiring 6.5% yearly revenue growth and an earnings decrease of $246.8 million from $350.1 million today, with a $46.00 fair value implying 4% upside. The most pessimistic analysts assumed earnings might fall toward about US$119 million by 2029, a view the new Navy contract could meaningfully test.

Several brokers issued positive research on shares of Bangchak Corporation Public Company Limited, or BCP, after its sustainable aviation fuel, or SAF, project began commercial production last May. Land and Houses Securities estimates the SAF project generates EBITDA of as much as 1 billion baht on high SAF price spreads, and expects the SAF project together with Chevron Hong Kong to support a first full quarter of profit in the third quarter of 2026 and a full year next year, while maintaining a buy rating with a target price of 56 baht. Asia Plus Securities said that in the second quarter of 2026 the SAF business generated EBITDA of about 1 billion baht, roughly 3.9% of total EBITDA, and expects SAF sales volumes to rise in the third quarter of 2026 as the plant runs for a full quarter, assigning a fundamental value of 58 baht and recommending trading gains at 58 baht. InnovestX maintained an OUTPERFORM rating with a mid-2027 target price of 75 baht after taking analysts to visit the new commercial SAF production unit next to the Phra Khanong refinery, which began commercial operations in May 2026. The research team views global SAF demand as likely to rise in line with carbon reduction measures in the aviation industry, especially in Europe, while intensifying competition for used cooking oil is keeping raw material costs and business margins volatile.

South Bow Corp. raised its 2026 distributable cash flow guidance to about US$665 million after a stronger-than-expected first half, while maintaining a quarterly dividend of US$0.50 per share. The higher guidance follows second-quarter 2026 distributable cash flow of US$175 million, up 4% from the first quarter, and reflects fee-based revenue from the Keystone Pipeline System that currently covers the dividend. The company's narrative projects $2.1 billion in revenue and $458.8 million in earnings by 2029, assuming 1.9% yearly revenue growth and a slight $1.2 million earnings decrease from $460.0 million today, with a CA$51.03 fair value implying 6% upside. Elevated debt levels and interest costs remain the key risk to watch, even as the upgraded cash flow outlook supports the near-term cash flow stability case.

SM Energy has drawn fresh attention after reporting quarterly earnings and revenue that topped analyst expectations, at a time when many investors already view the stock as trading at a discount to peers. The past year has been strong for SM Energy, with an 84.21% year to date share price return and a 42.04% total shareholder return, even though the 30 day share price return declined 7.97%, hinting that momentum has cooled slightly after a sharp 31.25% 90 day share price rise. The most widely followed narrative frames the stock as 18% undervalued, with SM Energy closing at $35.24 against a narrative fair value of $43.18, backed by a story built around efficiency and capital discipline. The company has increased both net proved reserves and net production by over 60% since 2020 while improving production margins and keeping share count flat, and continued completion and well cost efficiencies in its Uinta and Midland Basin assets are driving lower per-unit costs. The bullish story could weaken if Uinta Basin bottlenecks squeeze realized pricing or if high, ongoing shale spending limits future free cash flow.

Petrobras said Friday it made another oil discovery in ultra-deep waters off Amapá state, strengthening indications of hydrocarbon potential along Brazil's Equatorial Margin. The find follows the company's August discovery, when Petrobras first identified the presence of oil and natural gas at the Morpho exploration well in Block FZA-M-59 in the Foz do Amazonas Basin; the oil found in August was of good quality, the company said. Petrobras said the new discovery expands knowledge about the exploration potential of the area and will provide additional information for assessing the petroleum systems and resource potential of the Foz do Amazonas sedimentary basin. The continued drilling of Morpho was aimed at evaluating deeper exploration intervals and led to this new discovery, the company added. Petrobras said recently it plans to drill three new wells in the area starting in January to determine the viability of commercial production in the environmentally-sensitive region.

Eni CEO Claudio Descalzi met Argentine President Javier Milei in Paris on Friday to discuss energy investment and progress on the Argentina LNG project, which its developers aim to take to a final investment decision before the end of the year. Argentina LNG is being developed by Eni, state-controlled YPF and Abu Dhabi-based XRG to monetize Vaca Muerta gas through an integrated production, processing, transportation and export system. The initial development would have LNG production capacity of 12 million tonnes per annum using two floating LNG facilities of 6 million tonnes annually each, with production currently scheduled to begin in 2030, while the partners evaluate an expansion that could lift capacity to 18 million tonnes per year. The consortium signed a binding joint development agreement in February covering the 12-mtpa phase, Eni agreed in June to acquire a 32% interest in the Meseta Buena Esperanza, Aguada Villanueva and Las Tacanas blocks in Vaca Muerta, and the project applied in August to enter Argentina's Large Investment Incentive Regime, or RIGI, a step the consortium described as a milestone toward the planned year-end investment decision. The two FLNG units are expected to be located offshore Río Negro province, and Eni said Milei and Descalzi also discussed the importance of a stable framework for long-term energy investment, with the company identifying international markets including Europe as potential destinations for future Argentine LNG supplies.

Cheniere Energy is positioned to potentially extend its earnings-beat streak when it reports next on October 29, 2026, according to Zacks Investment Research. The natural gas company has topped estimates in each of its last two quarters, posting $3.02 per share against a $2.89 consensus for a 4.50% surprise, and $4.77 per share against a $3.91 consensus for a 21.99% surprise, an average surprise of 13.25% over that span. Cheniere Energy currently carries a Zacks Earnings ESP of +14.87% alongside a Zacks Rank #3 (Hold), a combination Zacks research shows produces a positive surprise nearly 70% of the time. The Earnings ESP compares the Most Accurate Estimate with the Zacks Consensus Estimate for the quarter, on the premise that analysts revising estimates just before a release hold the latest information.

Petrobras has identified a second oil-bearing interval at the Morpho exploration well offshore Amapá, strengthening indications of hydrocarbon potential along Brazil's Equatorial Margin. The discovery was made in the FZA-M-59 block at the Morpho well, formally designated 1-BRSA-1405-APS, in ultra-deepwater at a depth of about 2,886 meters. Petrobras continued drilling after announcing an initial hydrocarbon discovery at Morpho in August 2026, testing additional exploration targets below the first find. The company said the latest discovery was identified through electrical well logs, indications in rock samples and fluid samples collected during drilling, and that laboratory analysis of the new samples is still underway. Testing of samples from the August discovery has already confirmed that the oil found in the earlier interval is of good quality, according to the company. Petrobras plans to complete drilling at Morpho and continue evaluating the formations encountered before determining the commercial significance of the discoveries, which do not yet represent a declaration of commercial reserves.

Eni S.p.A. has signed a memorandum of understanding with Generative Bionics, an Italian deep-tech company developing humanoid robots powered by Physical AI, to test and evaluate advanced robotic systems starting with GENE.01. The collaboration will assess humanoid robots for inspection, teleoperation, remote assistance and other complex industrial tasks, with the aim of improving workplace safety, operational efficiency and data-driven monitoring across Eni's asset base. Eni will also evaluate whether its industrial sites can support future production, assembly and testing of advanced robotic systems, and the agreement covers cooperation on battery use, disposal and recycling. Under the materials and computing side of the deal, Versalis and Finproject will assess materials and design solutions for GENE.01's foot and footwear system, focusing on strength, grip, durability, impact absorption and ease of assembly, while Eni will evaluate using its High Performance Computing infrastructure to advance development and testing of Generative Bionics' Physical AI models. The agreement is not a near-term earnings catalyst, but Eni is exploring robotics as an operational tool, a materials opportunity and a computing-driven industrial platform, following similar automation efforts at Shell plc, Chevron Corporation and ExxonMobil Holdings Corporation.

Kinder Morgan holds a Zacks Rank #3 (Hold), with the consensus estimate for the current quarter at $0.33 per share, up 13.8% year over year and up 0.4% over the last 30 days. The consensus estimate for the current fiscal year stands at $1.56, a year-over-year change of +20% and up 0.5% over the past month, while the next fiscal year's consensus of $1.55 indicates a change of -0.4% and has remained unchanged over the past month. Consensus sales estimates are $4.38 billion for the current quarter, up 5.7% year over year, with $18.34 billion and $18.99 billion projected for the current and next fiscal years, changes of +8.3% and +3.6% respectively. In the last reported quarter, Kinder Morgan posted revenues of $4.48 billion, up 10.8% year over year, and EPS of $0.37 versus $0.28 a year ago, beating the Zacks Consensus Estimate of $4.29 billion by 4.33% on revenue and by 19.35% on EPS. Over the last four quarters the company surpassed consensus EPS estimates three times and topped consensus revenue estimates each time, while its Zacks Value Style Score of D indicates it is trading at a premium to its peers.