Category: Nieuws

Czech utility CEZ has booked 2 billion cubic metres (bcm) of annual capacity at a yet-to-be build land-based terminal for liquefied natural gas (LNG) imported into Germany’s Stade from 2027, spurring the build-up of transport infrastructure and securing itself future energy supplies.

Germany’s quest to increase LNG import capacity has intensified as it seeks to end reliance on Russian pipeline gas, on which the European region relied heavily prior to Moscow’s invasion of Ukraine last year.

Pending the provision of fixed terminals, Germany is using floating storage and regasification terminals (FSRUs) to help to replace piped Russian gas supplies.

Three FSRUs are working at the Wilhelmshaven, Brunsbuettel and Lubmin ports after Germany arranged their charter and onshore connections.

Wilhelmshaven, Stade and Mukran, a port on the Baltic Sea island of Ruegen due to be connected with Lubmin on the mainland, are due to add more FSRUs for the 2023/24 winter.

Industry and the government are also building up terminal capacity in anticipation of increased use of hydrogen at the sites, which when produced using renewable energy can help the transition to a lower carbon economy.

State-owned Deutsche Energy Terminal held auctions for regas capacities in 2024 at Brunsbuettel and Wilhelmshaven 1 earlier this month and plans Stade and Wilhelmshaven 2 rounds in December.

MUKRAN
Private company Deutsche ReGas reported in August that suppliers have booked 4 billion cubic metres (bcm) of capacity for 10 years per annum at Mukran, where the company wants to pull together two FSRUs for deliveries to the mainland.

It has chartered a second FSRU, the Transgas Power, with regasification capacity of 7.5 billion cubic metres (bcm), to complement the Neptune currently active at Lubmin.

LNG from Mukran is aimed to flow to onshore grids via gas grid company Gascade’s new pipeline from the first quarter of 2024, which obtained approval for completion from mining authorities earlier this month.

The project has triggered local opposition. But two legal challenges by environmental groups DUH and Nabu were thrown out by the federal administrative court in September.

WILHELMSHAVEN
Utility Uniper launched Germany’s first FSRU operations, Wilhelmshaven 1, last December at the deep-water port on the North Sea. [LNG/TKUK]

Tree Energy Solutions (TES) will operate a second FSRU from later in 2023 for five years, Wilhelmshaven 2.

Uniper plans to add a land-based ammonia reception terminal and cracker in the second half of this decade. Ammonia is at times used as a carrier for hydrogen, whose low density otherwise makes transportation over long distances complicated.

TES also has plans to eventually convert its operations to clean gases.

LUBMIN
The FSRU Neptune, chartered by Deutsche ReGas, began receiving LNG at Lubmin in the Baltic Sea early this year.

The gas is first delivered to another storage vessel, the Seapeak Hispania, and shuttled to Lubmin in a set-up taking account of shallow water.

ReGas holds long-term supply deals with France’s TotalEnergies and trading group MET.

The government wants the Neptune to move to Mukran, allowing the Seapeak Hispania to depart, and join the second FSRU there, the Transgas Power.

Regas plans hydrogen electrolysis plants at both Lubmin and Mukran.

BRUNSBUETTEL
The EU Commission approved a 40 million euro support measure for the land-based liquefied natural gas (LNG) terminal at Brunsbuettel on the North Sea, citing its contribution to the security and diversification of supply.

The Brunsbuettel FSRU, operated by RWE’s trading arm, became operational in mid-April.

It is the forerunner of a land-based LNG facility, now in receipt of a parcel of approved state support, that could start operations at the end of 2026, when an adjacent ammonia terminal could also start up.

State bank KfW, Gasunie and RWE are stakeholders and Shell has committed itself to sizeable purchases.

The total costs of the land-based terminal are 1.3 billion euros.

STADE
The inland port on the river Elbe in January started work on a landing pier for an FSRU, to be ready in the 2023/24 winter. Designated vessel Transgas Force is moored at Bremerhaven port to be fixed up for the purpose.

Project firm Hanseatic Energy Hub (HEH) also plans a land-based terminal where it has allocated regasification capacity to become operational in 2027, including volumes for state-controlled SEFE, utility EnBW and now CEZ.

It has begun sounding out the market to determine whether the longer-term plans should be based largely on ammonia to be reconverted into clean hydrogen. It has identified a construction consortium.

HEH is backed by investment firm Partners Group, logistics group Buss, chemicals company Dow and Spanish grid operator Enagas.

EnBW, which is also a buyer at Wilhelmshaven and Brunsbuettel, doubled annual purchases to 6 bcm.

Market Screener, Vera Eckert, November 25, 2023

Brazil’s state-owned oil and gas giant Petrobras has unveiled its new strategic plan for the 2024-2028 period, outlining that oil and natural gas will be given the biggest slice of the Brazilian player’s $102 billion investment pie, seeing them as drivers of growth which will propel and fund the energy transition to greener sources of supply. In line with its net zero goals, the company plans to dish out $11.5 billion on projects that will enable a reduction in its carbon footprint, spotlighting the role of biorefining, wind, solar, carbon capture, utilization and storage (CCUS), and hydrogen in this decarbonization quest.

Petrobras’ board of directors approved the firm’s strategic plan for the 2024-2028 five-year period on November 23, 2023. This strategic plan aims to strengthen and prepare the company for the future by initiating a process of integrating energy sources, which the Brazilian giant perceives to be essential for “a fair and responsible energy transition.” To this end, the new plan will be implemented with “total attention to people, safety and respect for the environment, perpetuating value for future generations, with a focus on capital discipline and a commitment to keeping the company’s indebtedness under control,” according to Petrobras.

The firm’s CAPEX forecast for the 2024-2028 period totals $102 billion, 31% higher than the previous plan, with $91 billion corresponding to projects under implementation and $11 billion composed of projects under assessment, which are subject to additional financial feasibility studies before contracting and execution begin. This increase in CAPEX is mainly associated with new projects, including potential acquisitions; assets that were in divestment and returned to the company’s investment portfolio; and cost inflation, which impacted the entire supply chain.

Furthermore, the CAPEX amount in the Exploration and Production (E&P) segment represents 72% of the total, followed by Refining, Transportation and Marketing (RTM) with 16%, Gas and Low Carbon Energies with 9%, and Corporate with 3%.

“Oil and natural gas commodities will continue to be the main drivers of value, with economic and environmental resilience, financing the just transition. Profitable low-carbon investments will gain relevance for long-term value generation. Governance will be respected in all decision-making processes and project evaluations, guaranteeing sustainability and profitability, with more transparency,” underlined Petrobras.

Pre-salt getting largest share of $73 billion E&P CAPEX
Based on the Brazilian player’s E&P CAPEX for the 2024-2028 period of $73 billion, around 67% will be allocated to the pre-salt. Petrobras claims that pre-salt has “a major economic and environmental competitive advantage,” with the production of “better quality” oil and lower emissions of greenhouse gases. In terms of exploration, $7.5 billion is planned for the five-year period, covering $3.1 billion for exploration in the Equatorial Margin; $3.1 billion for exploration in the Southeast Basins; and $1.3 billion for other countries. This investment encompasses the drilling of around 50 wells in areas where the company has exploration rights in acquired blocks.

“The E&P segment remains relevant to the company, with a strategic focus on profitable assets and investments compatible with a long-term vision aligned with the energy transition. At the same time, the company maintains significant deepwater revitalization projects (REVIT), as well as complementary projects, in order to increase recovery factors in mature fields,” pointed out Petrobras.

The Brazilian giant is adamant that the E&P segment maintains the premise of double resilience both economic and environmental, and high economic value, with a portfolio that is viable in scenarios of low oil prices in the long term, including Brent with a prospective average break-even of $25 per barrel, and with a carbon intensity commitment of up to 15 KgCO2e per barrel of oil equivalent by 2030.

14 new FPSOs on the five-year horizon
With Petrobras’ strategic focus at the forefront, exploration and production activities are expected to be concentrated on profitable assets, thus, pre-salt production will represent 79% of the company’s total at the end of the five-year period. As a new generation of platforms is being built, more modern, more technological, more efficient, and with lower emissions, the Brazilian player’s production curve considers the entry of 14 new FPSOs in the 2024-2028 period, ten of which have already been contracted. Thanks to this plan, the firm aims to produce 3.2 million barrels of oil and gas equivalent per day in five years.

In accordance with this, the projections for oil production, total production, and commercial production of oil and natural gas for 2024 have been increased by approximately 100,000 bpd/boed compared to the previous plan, considering the performance of the fields, the forecasts for ramp-ups and the entry of new wells. During 2025 and 2026, oil production, total production, and commercial production of oil and natural gas are anticipated to be around 100,000 bpd/boed, lower than projected in the previous plan.

The company elaborates that this deviation is mainly due to current market conditions arising from the global context, where some production systems and complementary deepwater projects have had their schedules impacted. However, the fluctuations are part of the dynamics of the industry and are within the range of uncertainty disclosed in the last plan. Come 2027, the projections for oil production and total and commercial production of oil and natural gas are maintained in relation to the previous plan.

Moreover, the Gas & Energy (G&E) segment’s CAPEX totals $3 billion for the five-year period and Petrobras emphasizes that progress is being made not only in competitive and integrated operations within the gas and energy trade but also in improving the portfolio, working towards the inclusion of renewable sources aligned with decarbonization actions. One of the Brazilian player’s priorities in this segment is to expand the infrastructure and portfolio of natural gas offers.

Considering the investments in gas production and disposal in the E&P segment, the firm plans to boost domestic gas supply by investing around $7 billion over the next five years. To this end, Route 3 will come into operation in 2024 with a processing plant with a capacity of 21 MMm³/day and a pipeline with a capacity of 18 MMm³/day. Four years later, the Raia project gas pipeline (BM-C-33) will come into operation, with a capacity of 16 MMm³/day; while the Sergipe Águas Profundas – SEAP project gas pipeline will be online in 2029, with a capacity of 18 million m³/day.

The hydrocarbon exploration and production steps Petrobras is taking are in line with the Brazilian Ministry of Mines and Energy (MME)’s program – unveiled in March 2023 – to boost investments in oil and natural gas exploration in a bid to promote regional development and foster national production while turning Brazil into the fourth largest oil producer in the world.

Multi-billion spending for low-carbon future
As Petrobras’ priorities entail several elements, including reducing its carbon footprint, protecting the environment, caring for people, and acting with integrity, the firm reaffirms its ambition of “zero fatalities and zero leakages, in line with its commitment to life and the environment, which are non-negotiable values.”

To bring its energy transition vision to life, the firm will allocate up to $11.5 billion to low-carbon projects over the next five years, considering transversal investments in the various business segments. This covers initiatives and projects to decarbonize operations, alongside the maturing and development of businesses in the low-carbon energy segment, with emphasis on biorefining, wind, solar, CCUS, and hydrogen.

As a result, low-carbon investment represents 11% of Petrobras’ total investment in the 2024-2028 average, indicating progress in the company’s current position in relation to its market peers. The forecast indicates that low-carbon investment will gradually gain ground in the firm’s portfolio over the period, reaching 16% by 2028.

Petrobras says that investments should be financed primarily by operating cash flow, at levels equivalent to those of its peers, preferably through partnerships that allow for the sharing of risks and expertise, and seeking a return on investment, a reduction in the cost of capital, and the strengthening of the firm as an integrated energy company.

“Accompanying the great transformations in the world, especially in the energy, digital, social and environmental segments, Petrobras is going through a phase of changes and new perspectives, aiming to prepare for the energy transition and for a fair, inclusive low-carbon economy, with changes in energy use patterns, assessing and minimizing social impacts for all parties: its employees, communities and the entire supply chain,” underlined the Brazilian giant.

Offshore Energy, November 24, 2023

The European Union has launched its first green hydrogen auction with a maximum price of €4.50 ($4.91)/kg. The approved projects will receive subsidies for a decade, alongside revenue from hydrogen sales, and must start production within the next five years.

The European Commission has launched the first hydrogen auction supported by the European Hydrogen Bank.

Renewable hydrogen producers can apply for support in the form of a fixed premium per kilogram of hydrogen produced. This should close the gap between the production price and the price that consumers are currently willing to pay in a market where non-renewable hydrogen production is still cheaper.

Bidders have until Feb. 8, 2024, to submit their proposals through the EU tenders and financing portal. Bids must be based on a proposed price premium per kilogram of renewable hydrogen produced, up to a ceiling price of €4 .50/kg.

Bids up to this limit, and that also meet other qualification requirements, will be ranked from lowest to highest bid price and supported in that order, until the auction budget is exhausted.

The selected projects will receive the awarded subsidy in addition to the market revenue they generate from hydrogen sales, for a maximum of 10 years. Once the projects secure their subsidy agreements, they must begin producing renewable hydrogen within five years.

To maintain an equitable environment for all projects, cumulation with other forms of aid from participating member states is not allowed. Member states can, however, finance projects that participated in the auction but weren’t chosen for support from the Innovation Fund, using the Hydrogen Bank’s “auctions as a service” mechanism, particularly in cases of budgetary constraints.

The pilot auction will contribute to the REPowerEU plan to decarbonize the European economy’s goal of domestically producing 10 million tons of hydrogen by 2030. The commission will launch a second round in the spring.

PV Magazine, Pilar Sánchez Molina, November 24, 2023

The EU’s Hydrogen Bank has begun operations and is offering €800 million to hydrogen producers to kickstart demand for the fuel crucial to industrial decarbonisation.

By 2030, Europe wants to produce 10 million tonnes of renewable hydrogen annually. To get companies to switch, Brussels is footing the difference between their ability to pay and the high prices charged by producers of clean-burning gas.

“Today’s launch is about connecting supply and demand for renewable hydrogen,” explained the EU’s new Green Deal chief, Maroš Šefčovič, when launching on 23 November.

Using revenue generated from the EU’s carbon price, currently at €80 per tonne, the “hydrogen bank” will match suppliers to off-takers and smooth over the price difference.

Doing so transparently will allow outside observers to understand the market dynamics of the developing hydrogen economy. Today, little hydrogen is traded as the main consumers and refineries tend to produce it on-site for their own use.

“It is about creating transparency about price points, which will help kickstart a European hydrogen market,” says the Commissioner.

A total of €3 billion was allocated to the scheme, the remaining €2.2 billion will be up for grabs early next year.

Support is capped at €4.5 per kilogramme and will be disbursed for ten years and once signed, production must start within five years. Given the budget, the entirety of the scheme could facilitate the production of a total of at least 0.09 million tonnes of hydrogen or 0.9% of the annual 2030 target.

Meanwhile, Germany’s domestic hydrogen procurement scheme, H2Global, is about €5 billion. Europe’s hydrogen industry has long hoped to marry the two schemes and for other EU countries to also put money into the bank and the idea was officially endorsed by Berlin leadership in May but has yet to be implemented.

More money for other technologies
Meanwhile, €4 billion of ETS revenues is also going towards deploying other decarbonisation technologies – beneficiaries of the hydrogen bank will be excluded.

Projects large and small can have 60% of their cost covered by the EU, provided they can prove their potential to reduce greenhouse gas emissions, are cost-efficient and located in Europe.

“We are investing massively in this transition by using the revenues of emissions trading. This is a sustainable model that brings down emissions and boosts the competitiveness of European industry,” said the Green Deal chief.

In hopes of bolstering the EU’s clean technology manufacturing base, €1.4 billion has been earmarked with a target audience of producers of solar panel components, wind turbine parts, batteries, heat pumps and hydrogen electrolysers.

Euractiv, Nikolaus J. Kurmayer, November 24, 2023

Targray, a global leader in the supply of renewable fuels, feedstock, and supply chain solutions, is proud to announce its new partner membership within Green Marine, a renowned voluntary environmental certification program for the North American and European maritime industries.
This strategic engagement solidifies Targray’s commitment to decarbonizing maritime shipping, a sector which consumes more than 330 million metric tonnes of fuel each year, while reinforcing the company’s support of the global transition to low-carbon fuels.

The maritime industry is at a critical juncture with increasing pressure to reduce its carbon footprint and greenhouse gas emissions. Targray’s Green Marine membership highlights the company’s dedication to leveraging its global reach and expertise to contribute significantly to the reduction of greenhouse gas emissions in the maritime sector.

“Maritime shipping is the backbone of global trade, and the industry’s transition to low carbon fuels is essential for a sustainable future,” said Targray President, Andrew Richardson. “Targray’s international presence uniquely positions us to support bunker fuel suppliers and their customers worldwide in the journey toward sustainability and decarbonization.”

Green Marine is a leading non-profit North American environmental certification program for the maritime industry which expanded to Europe in 2020, with a mission of going beyond regulations and fostering real environmental improvement in the maritime industry. They engage stakeholders, including ship owners, ports, terminals, and shipyards, in their commitment to continuous improvement.

About Targray

Targray is a leading global provider of commodities and advanced materials for the renewable fuels, solar, battery and agricultural commodity sectors. Supported by a vast rail fleet and terminal network, the company is an international leader in the sourcing, transportation, storage, trading, and supply of biofuels and feedstock. Its innovative solutions help energy suppliers meet the growing demand for low carbon transportation fuels.

Targray’s Environmental Commodities business offers leading expertise in environmental products & services including renewable energy certificates, carbon credits and offsets for voluntary and compliance carbon market around the world.

Since 1987, Targray has worked with partners in over 50 countries to create sustainable value across the supply chain. The company is committed to delivering solutions that help reduce the world’s carbon footprint while enabling customers to create safer, more reliable products for consumers around the world.

About Green Marine

Green Marine is a voluntary initiative which helps its participants to improve their environmental performance and targets key environmental and maritime transportation issues related to air, water and soil quality, biodiversity protection, and community relations. Founded in 2007, Green Marine quickly distinguished itself through its credibility and its capability to foster the continual improvement of the environmental performance of its participants. Initially conceived for the St. Lawrence and Great Lakes maritime sector, the binational environmental certification program quickly generated unexpected interest in the industry and now has a North American reach.

In 2019, Green Marine collaborated with Surfrider Foundation Europe to export the environmental certification program to France to give birth to Green Marine Europe in 2020. The Green Marine Europe environmental certification program operates on the same proven model as the North American program.

Targray, November 23, 2023

The United States is seeking to buy up to three million barrels of oil for delivery in January 2024 to replenish the country’s strategic petroleum reserve, the Department of Energy said on Monday.

“This is the second solicitation for January 2024 delivery as DOE aims to purchase oil when it can purchase at a good deal for taxpayers,” it said in a statement. Last month the administration said it hoped to buy 6 million barrels of crude oil for delivery in December and January.

Reuters, David Ljunggren, November 6, 2023

In this piece, we will take a look at the 11 best oil refinery stocks to buy. If you want to skip our overview of the dynamics within the oil industry and recent developments, then take a look at the 5 Best Oil Refinery Stocks To Buy.

The modern day oil industry is responsible for fueling global transportation, industrial, and energy networks. Whether it’s electricity for large scale cloud computing data centers, cargo ships, aircraft, or power generation plants, humanity’s reliance on fossil fuels is responsible for both economic growth and pollution.

Within the oil sector, the same and different companies are present at key stages of the supply chain. After crude oil is extracted from the ground, it must be processed to bring it up to standard for consumption by machinery. Oil extracted from the ground is transformed into a variety of different end products, such as gasoline, kerosene, diesel, and heavy fuel oil. This transformation occurs in an oil refinery, which is one of several refineries that are responsible for converting cruder raw inputs into high grade products. Some examples of refineries include sugar and metal refineries.

Oil refineries are operated by large oil giants such as Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) and smaller companies with isolated business operations. Additionally, the heavy capital expenditure required to set up refineries often requires government involvement or financing of mega oil refining projects. For instance, Indian billionaire Mukesh Ambani and his petrochemical, retail, media, and telecommunications behemoth Reliance Industries Limited (NSE:RELIANCE.NS)’s oil refinery in the Indian state of Gujarat was partly built by a $500 million loan guarantee by the official credit export agency of the United States of America, the Export-Import Bank of the United States. Similarly, the Indian government has allocated $3.6 billion for oil refineries as part of its 23/24 budget.

These massive capital costs create high barriers to entry in the oil refinery business, leading to the being dominated by a few private sector firms or large state owned enterprises. For instance, consider the data that we gathered as part of the coverage of the Top 20 Largest Refineries In The World. While Reliance’s Gujarat oil refinery is the largest in the world and privately owned to boot, the largest oil refineries in Venezuela, the United Arab Emirates, Kuwait, Saudi Arabia, and China are owned by state enterprises. However, in South Korea, the U.S., and Taiwan, oil is refined by private companies which include some of the largest oil companies in the world.

Zooming out to take a broader look at the global oil refining industry, it is naturally one of the biggest in the world. According to data from Skyquest Technology, the oil refining industry was worth $1.49 trillion in 2021 and grew to $1.5 trillion by the end of 2022. From then until 2030, it can grow at a compounded annual growth rate (CAGR) of 5% to be worth an estimated $3.7 trillion by the end of the decade. Refineries sit at the very root of not only the oil industry but also the gas industry, since without them, the modern day supply chain for fossil fuels cannot function. Therefore, it’s unsurprising that the $1.5 trillion market value of the oil refinery industry is a sizeable fraction of the total value of the global oil industry. This was estimated to sit at $7.3 trillion by 2022 end. Broadly speaking, these two data points show that the oil refinery industry accounted for roughly 21% of the global oil industry in 2022. Some other sectors that account for the remaining share of the oil sector include extraction, midstream transportation and storage, marketing, and retail operations at the pump or the port.

Zooming back in, some of the biggest pure play oil and gas refining and marketing companies that trade on American stock exchanges are Marathon Petroleum Corporation (NYSE:MPC), Phillips 66 (NYSE:PSX), and Valero Energy Corporation (NYSE:VLO). Like the broader corporate world, it’s earnings season in the oil refinery sector, and these three giants have also reported their financial results. Starting from Marathon Petroleum Corporation, the firm’s profit for the third quarter of 2023 beat analyst estimates by sitting at $8.14 in adjusted net income per share. Similarly, Valero’s $7.49 adjusted net income per share also surpassed analyst estimates. Phillips 66 however suffered from low refining margins as its adjusted earnings per share of $4.63 was thirteen cents lower than the consensus forecast.

The broader oil market has been quite jittery these days because of fresh conflict in the Middle East, and while oil prices have remained relatively stable, the conflict between Israel and Palestine risks impacting oil supply from West Asia. On this front, Valero Energy Corporation (NYSE:VLO)’s chief executive officer Gary Simmons believes that the U.S. can relieve some of the risks to its oil imports if sanctions against Venezuela are relaxed. Venezuelan oil is sanctioned through actions against the state owned PDVSA, and Simmons shared in recent earnings call that an ease in sanctions can lead to 250,00 barrels of daily oil supply being diverted from the Far East to the U.S.

With this context, let’s take a look at the best oil refinery stocks to buy. The top three oil refinery stocks in this list are Marathon Petroleum Corporation, Valero Energy Corporation, and Phillips 66.

An aerial view of an oil and gas refinery, with its tall smoke stacks and complex piping.

Our Methodology
To compile our list of the best oil refinery stocks, we narrowed our focus from the broader oil industry to firms that limit themselves to oil refineries. For instance, while oil mega giants such as Saudi Arabian Oil Company (TADAWUL:2222.SR), Exxon Mobil Corporation, Exxon Mobil Corporation and Shell plc also operate refineries, they are excluded from the list since they are not pure play oil refinery companies.

A list of the 21 largest oil refining firms was initially compiled and then these were ranked by the number of hedge funds that had invested in them as of Q2 2023 end. Out of these, the top oil refining stocks are as follows.

11 Best Oil Refinery Stocks To Buy
Adams Resources & Energy, Inc. (NYSE:AE)
Number of Hedge Fund Investors in Q2 2023: 3

Adams Resources & Energy, Inc. (NYSE:AE) is a backend oil refinery company that provides raw oil to refiners. The firm is due to report its third quarter earnings in November, and analysts have set a 15 cent EPS estimate.

Three out of the 910 hedge funds tracked by Insider Monkey were the firm’s investors during Q3 2023. Adams Resources & Energy, Inc. (NYSE:AE)’s largest hedge fund investor is Jim Simons’ Renaissance Technologies as it owns $6.9 million worth of shares.

Adams Resources & Energy, Inc. (NYSE:AE) joins Valero Energy Corporation (NYSE:VLO), Marathon Petroleum Corporation (NYSE:MPC), and Phillips 66 (NYSE:PSX) in our list of the top oil refinery stocks to buy.

Aemetis, Inc. (NASDAQ:AMTX)
Number of Hedge Fund Investors in Q2 2023: 7

Aemetis, Inc. (NASDAQ:AMTX) is a biodiesel company that converts agricultural products into the fuel. The firm has a strong presence in India, with its subsidiary landing another multi million dollar deal with Indian OMCs in October 2023.

As of June 2023, seven hedge funds out of the 910 part of Insider Monkey’s research had held a stake in Aemetis, Inc. (NASDAQ:AMTX). Todd J. Kantor’s Encompass Capital Advisors is the company’s biggest investor out of these through its $13.2 million investment.

CVR Energy, Inc. (NYSE:CVI)
Number of Hedge Fund Investors in Q2 2023: 14

CVR Energy, Inc. (NYSE:CVI) is an Icahn Enterprises subsidiary and it refines oil into gasoline and other similar products. Its third quarter financials were quite a striking set of results as they saw the firm grow its net income from the year ago quarter’s $93 million to a whopping $353 million in Q3 2023.

14 out of the 910 hedge funds tracked by Insider Monkey had invested in the firm during the previous quarter. CVR Energy, Inc. (NYSE:CVI)’s largest hedge fund investor is Carl Icahn’s Icahn Capital LP due to its $2.1 billion investment.

Vertex Energy, Inc. (NASDAQ:VTNR)
Number of Hedge Fund Investors in Q2 2023: 17

Vertex Energy, Inc. (NASDAQ:VTNR) is an American company headquartered in Houston, Texas with motor oil and other refineries. Its operational outlook for the third quarter created quite a stir in October when Vertex Energy, Inc. (NASDAQ:VTNR) revealed that the throughput in its facilities for the third quarter would exceed the high end of its previous guidance by three thousand barrels per day.

During this year’s second quarter, 17 out of the 910 hedge funds part of Insider Monkey’s database had bought and owned Vertex Energy, Inc. (NASDAQ:VTNR)’s shares. The firm’s biggest shareholder in our database is Adam Usdan’s Trellus Management Company as it owns 2.1 million shares that are worth $13.2 million.

Delek US Holdings, Inc. (NYSE:DK)
Number of Hedge Fund Investors in Q2 2023: 19

Delek US Holdings, Inc. (NYSE:DK) is a semi diversified oil company with a sizeable refining division. The firm’s shares have done well on the market over the past six months as they are up by 27%. However, analysts seem to be unimpressed, as the shares are rated Hold on average.

After digging through 910 hedge funds for their June quarter of 2023 shareholdings, Insider Monkey discovered that 19 were the firm’s investors. Delek US Holdings, Inc. (NYSE:DK)’s largest investor out of these is Ken Fisher’s Fisher Asset Management as it owns $31 million worth of shares.

Par Pacific Holdings, Inc.
Number of Hedge Fund Investors in Q2 2023: 21

Par Pacific Holdings, Inc. (NYSE:PARR) is a small oil refining company with three facilities under it belt. The firm expanded its oil refining portfolio in June 2023 as it bought an oil refinery previously owned by Exxon Mobil in Montana.

For their second quarter of 2023 shareholdings, 21 out of the 910 hedge funds tracked by Insider Monkey had held a stake in Par Pacific Holdings, Inc. (NYSE:PARR). David Rosen’s Rubric Capital Management owns the biggest stake among these, which is worth $71 million and comes via 2.6 million shares.

Marathon Petroleum Corporation (NYSE:MPC), Par Pacific Holdings, Inc. (NYSE:PARR), Valero Energy Corporation (NYSE:VLO), and Phillips 66 (NYSE:PSX) are some top oil refinery stocks being bought by hedge funds.

Yahoo Finance, Ramish Cheema, November 5, 2023

Houston-based Enterprise Products Partners is investing $3.1 billion into its natural gas liquids (NGL) operations, building a pipeline, adding new plants to process natural gas, and switching an oil pipeline back to an NGL pipeline.

The company said the projects will support the continuing production growth in the Permian Basin of west Texas and southeastern New Mexico. The company forecasts production growth in the prolific resource play to increase by more than 700,000 B/D in 2023 and grow by about 1.5 million B/D for a 3-year period ending in 2025.

Enterprise said it sees production growth increasing by up to another 15%, or greater than 1 million B/D by the end of 2030, with NGL production from the Permian potentially growing by more than 500,000 B/D to nearly 4 million B/D by the end of 2030.

Enterprise’s Co-Chief Executive Jim Teague said that the organic investments are needed to “facilitate the next phase of Permian production growth and will also complement our expansions of downstream pipelines and marine terminals to deliver energy products to growing domestic and international markets.”

The company will build the 550-mile-long Bahia NGL pipeline capable of transporting up to 600,000 B/D of NGLs from the Delaware and Midland basins to the company’s fractionation complex in Chambers County, Texas.

The pipeline includes a 24-in.-diameter segment from the Delaware Basin, connecting to a 30-in.-diameter segment from the Midland Basin to the fractionation complex. The wholly owned pipeline could begin operation in the first half of 2025, the company said.

To provide incremental NGL transportation service until the Bahia Pipeline is completed, the company said it initiated a conversion of the Seminole Pipeline, which carries up to 210,000 B/D of crude oil, back to NGL service in December 2023.

The pipeline began transporting crude oil in the second quarter of 2019 and was then known as the company’s Midland-to-ECHO 2 crude oil pipeline. Before 2019, the Seminole Red Pipeline was in NGL service, the company said.

Enterprise is also building two natural gas processing plants and a fractionation unit. The natural gas processing plants—the Mentone 4 and the Orion—will service the Delaware and Midland basins, respectively. Construction has begun on both plants, with each having the capacity to process more than 300 MMcf/D of natural gas to extract more than 40,000 B/D of NGLs.

The company is adding a fractionation unit at its Chambers County complex. The plant will have the capacity to fractionate up to 195,000 B/D of NGLs, and a new deisobutanizer unit will be able to separate up to 100,000 B/D of butanes.

JPT, Jennifer Presley, November 11, 2023