Daily Brief Energy/Materials: Mosaic Co/The, Western Midstream Partners LP, Medco Energi, Godolphin Resources Ltd, Intl Flavors & Fragrances, Marathon Oil, Alkane Resources, Ecovyst, Nickel Industries and more

• The Mosaic Company’s fourth quarter and full year 2023 earnings highlighted robust phosphate markets and an expected recovery of demand for potash.
• Mosaic’s CEO, Bruce Bodine, spoke positively about their financial performance in 2023, with reported revenue of $13.7 billion and adjusted EBITDA of $2.8 billion, along with investing $1.4 billion in the business and returning $1.1 billion to shareholders through share repurchases.
• One positive takeaway from the call was the strong phosphate market conditions, resulting from tight supply due to China’s fertilizer export restrictions and limited capacity additions in the short term.

• Western Midstream Partners (WES) reported its fourth-quarter and full-year 2023 earnings with a mixed financial result.
• Nevertheless, the company retains a degree of optimism, particularly when considering certain initiatives and expected future outcomes.
• In 2023, Western Midstream Partners successfully divested its remaining interest in several non core, non-operated assets worth $790 million.

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

• Godolphin Resources Limited (ASX:GRL) is an ASX-listed green metals and critical minerals explorer with a focus on central west New South Wales.
• The company’s projects include the Narraburra rare earths element (REE) project, the Goodrich copper prospect, the Yeoval copper-gold-molybdenum project and the Gundagai gold project.
• The projects are predominantly located on the Lachlan Fold Belt, a highly prospective province for the discovery of rare earth elements, copper, gold and base metal deposits. 

• Godolphin Resources Limited (ASX:GRL) is an ASX-listed green metals and critical minerals explorer with a focus on central west New South Wales.
• The company’s projects include the Narraburra rare earths element (REE) project, the Goodrich copper prospect, the Yeoval copper-gold-molybdenum project and the Gundagai gold project.
• The projects are predominantly located on the Lachlan Fold Belt, a highly prospective province for the discovery of rare earth elements, copper, gold and base metal deposits.

• International Flavors and Fragrances Inc.
• (IFF) reported its fourth quarter and full year 2023 earnings, where it was highlighted that comparable currency-neutral sales increased by 1%, and comparable currency-neutral EBITDA grew by 17% for the fourth quarter.
• This comes amid a reported sales decline underscoring resilience within the company’s operational framework.

• Marathon Oil’s Q4 and full year 2023 results and full year 2024 outlook have highlighted some of the successes and challenges faced by the company.
• The company’s Chairman, President, and CEO, Lee Tillman, emphasized on the company’s commitment to safety, environmental responsibility, and ongoing work to achieve zero routine flaring.
• The company has continued to prioritize providing safe working conditions and has achieved a record safety year in 2023.

• Alkane Resources Limited (ASX:ALK) is an ASX-listed gold producer and explorer with a focus on central west New South Wales.
• The Perth-headquartered company owns and operates the Tomingley gold mine and processing facilities, south-west of Dubbo and the Northern Molong porphyry project in central west NSW which includes the highly prospective Boda and Kaiser deposits.
• ALK recently announced high-grade results from the Kaiser resource upgrade drilling programme and upgraded the Boda resource to 6.6mn ounces of gold equivalent (AuEq), with 4.4Moz AuEq inferred. 

• ECVT continues to encounter macro headwinds in its business after seeing softness in certain end markets in the middle of 2023. 
• We believe the trough in the business is underscoring the attractive nature of ECVT’s operations. The Company continues to generate free cash flow
• Looking ahead, the free cash flow generation in 2024 provides greater balance sheet flexibility in reducing leverage and/or buying back more stock

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Nickel Industries