Daily Brief Energy/Materials: Banpu Public, Dongyue Group, SGX Rubber Future TSR20, Crude Oil, Gevo, Techem GmbH, ChampionX , Zephyr Energy, Magnolia Oil & Gas , Northern Oil and Gas and more

• The SET50 index tracks the performance of the top 50 largest and most liquid names listed on the Stock Exchange of Thailand (SET).
• In this insight, we take a look at the potential ADDs/DELs for SET 50 during the index rebal event in December 2024.
• Currently, we see 3 expected ADDs/DELs and given that the 3-month reference period used for average market cap rankings have now started the rankings may be more stable. 

• The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
• Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
• The key stocks mentioned in this regular insight include: Dongyue Group (189 HK), C&D International Investment (1908 HK), and China Aoyuan Property (3883 HK).

• Huy Anh Natural Rubber appoints Koltiva to help it  
• VRG holds training as per PEFC ST 2002-1:2024 Module Standard  
• Experts call for a national support website

• For the week ending 20/Sep, US crude inventories declined by 4.5m barrels, surpassing expectations of a 1.3m barrel drawdown. Gasoline and distillate stockpiles also decreased more than analyst estimates.
• US natural gas inventories rise 47 Bcf for the week ending 20/Sep, lower than analyst expectations of a 52 Bcf buildup. Inventories are 7.1% above the 5-year seasonal average.
• BP and Shell experienced rating downgrades and target price reductions, while TotalEnergies and Exxon Mobil saw upward revisions in their target prices.

• CEO and Director Patrick Gruber joined us on the WTR Small-Cap Spotlight to discuss Gevo’s recent acquisition of Red Trail in North Dakota.
• Those interested can listen to this podcast on Apple Podcasts, Spotify, or on our website
• With the planned $210-million Red Trail acquisition, Gevo will add low-carbon ethanol and carbon capture and sequestration (CCS) as new operational business lines. 

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Techem’s ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Adequate”.

• ChampionX Corporation recently discussed their fourth quarter and full year 2023 earnings, revealing a mix of achievements and strategic initiatives that position the company for future growth while acknowledging some market challenges.
• The company reported a solid performance for the fiscal year 2023, marking significant financial milestones.
• ChampionX expanded its adjusted EBITDA margin by 430 basis points and achieved a 25% growth in adjusted EBITDA.

• 1H24 sales volumes in the Williston were 1,239 boe/d.
• The FY24 production guidance for the Williston is unchanged at 1.1-1.3 mboe/d.
• This excludes >100 boe/d of natural gas liquids.

• Magnolia Oil & Gas Corporation reported their Second Quarter 2024 earnings with a few key highlights indicating both challenges and achievements.
• In the positive spectrum, Magnolia achieved a record total company production of approximately 90,000 barrels of oil equivalent per day, marking a year-over-year growth of 10% and a sequential increase of 6%.
• This is particularly notable in their Giddings segment, which reported a production rise of 21% compared to the previous year, with oil production growing by 28%.

• NOG (Northern Oil and Gas, Inc.), in its second quarter earnings for the fiscal year 2024, presented a solid operational and financial performance, hinting at strategic advancement and operational efficiency, albeit with considerations regarding market dynamics and strategic executions.
• The company reported a 31% year-over-year increase in its adjusted EBITDA and an approximately 33% rise in cash flow from operations, excluding working capital changes.
• This growth is underscored by an effective management of debt levels, maintaining a low debt-to-equity ratio which stood at around 1.1, similar to the previous year, despite significant capital investments and acquisitions.