Todays’ Oil and Gas update – Diversified Gas & Oil, Jadestone Energy and

Diversified Gas & Oil ()  Expansion into Louisiana through accretive transaction

Jadestone Energy ()  Acquisition and entry into Malaysia

President Energy () Initial production levels 30% better than anticipated at LB-1002

Energy Prices         

Brent Oil US$67.8/bbl vs US$67.8/bbl yesterday

WTI Oil US$64.7/bbl vs US$64.3/bbl yesterday

Natural Gas US$2.90/mmbtu vs US$2.94/mmbtu yesterday

Oil Price News 

SP Angel’s Oil Market outlook following March 2021 OPEC+ meeting: https://youtu.be/DFcon98RdqE

Please see SP Angel’s Oil Market outlook for 2021: https://youtu.be/T222JHGzokI

Further strong results from the supermajors sees Shell report strong growth in adjusted earnings for the first quarter and lifted its dividend by 4%

Shell reported adjusted earnings of US$3.23bn for 1Q21 and increase from the US$393m earnings for 4Q20, and a rise from the 1Q20 earnings of $2.86bn

The expected and previously announced dividend increase is the second small dividend hike at Shell, which this time last year had slashed its dividend for the first time since WWII to preserve cash and value in a highly uncertain macroeconomic environment in the pandemic.

A year after the coronavirus roiled global oil markets and prices and forced supermajors such as Shell and BP to cut their dividends, the major international oil firms are reporting solid profits for the first quarter of 2021, thanks to higher oil prices, slightly better refining margins, and profitable trading business

Shell also reported a 32% rise in cash flow from operating activities at US$8.29bn for the first quarter of 2021, up from US$6.29bn billion for 4Q20

The supermajor also managed to reduce is net debt to US$71.3bn at end-March 2021, down from US$75.4bn at the end of 4Q20 thanks to the free cash flow generation.

In further good news for shareholders, once the US$65bn debt milestone is achieved, Shell aims to increase shareholder distributions to 20-30% of its cash flow from operations

Gas Price News 

Natural gas prices took a respite following three consecutive higher trading session that grossed the May contract 7.3%

Prices were down on the new June contract by 1.7%

According to the National Oceanic Atmospheric Administration, warmer than normal weather is expected to cover most of the United States for the next 8-14 days

This warmer than normal weather is likely to induce additional cooling demand

Injections of gas into US storage facilities in the week ending 16 April totalled 38Bcf, down from 47Bcf for the same week last year, according to the Energy Information Agency (EIA)

Estimates from analysts ranged between 37-59Bcf, with a median of 48Bcf Working natural gas stocks totalled 1,883Bcf in the week – 251 Bcf lower than for the same period last year

After posting a strong gain last week and changing the trend to up on the daily chart, natural gas bulls are hoping that the market continues to remain supported by solid LNG demand and forecasts calling for more heat

Strong demand from manufacturing also helped buoy natural gas prices

US Durable Goods orders are stoked by manufacturing demand that has been building since last fall

According to the Commerce Department, new orders for durable goods increased by 0.5% to US$256.3bn in March compared with February

According to the National Oceanic Atmospheric Administration, the rally in natural gas comes despite warmer than expected weather that will cover most of the United States for the next two weeks

Company News

Diversified Gas & Oil (): Expansion into Louisiana through accretive transaction

Share Price: 123p, Market Cap: £869m

DGO has further expanded its portfolio through the US$135m…