Daily Brief Energy/Materials: Targa Resources, Shell PLC, Boise Cascade Co, SGX Rubber Future TSR20, Tenaz Energy, Vale , Eni SpA, Equinor ASA, PetroTal, Antero Midstream Corp and more

• Targa Resources Corp. has demonstrated a robust performance during the third quarter of 2024, with record volumes and adjusted EBITDA, suggesting a significant growth trajectory.
• The company’s strategic positioning in volatile markets, a strong Permian Basin presence, and a focus on fee-based or fee floor contracts, primarily in the Gathering and Processing (G&P) segments, have mitigated exposure to commodity price downturns.
• Notably, Targa has invested in long-term growth by expanding its infrastructure and capacity through key projects, such as the construction of new processing plants and sour gas treating facilities in the Permian Delaware Basin, expected to be operational by the upcoming years.

• Shell | 4Q24 trading update disappoints: In 4Q24, Shell posted ‘significantly lower’ results in its Integrated Gas, Chemical and Renewables divisions. This became clear on the back of the yesterday’s issued trading update.
• Odido | IPO expected at some point in 1H25: According to Bloomberg, Apax Partners and Warburg Pincus have selected various banks for an intended IPO of Dutch telecom provider Odido at some point in 1H25.  

• Boise Cascade Company reported its third-quarter financial results for 2024, highlighting the challenges and opportunities it faces within the U.S. construction materials sector.
• Overall, the company’s performance demonstrates resilience in a complex economic environment, with specific insights into the operations of its Wood Products and Building Materials Distribution (BMD) segments.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• The Vietnam Rubber Seminar held on December 12, 2024, saw experts presenting their assessment of challenges facing the Vietnamese rubber sector in complying with the European Union Deforestation Regulation (EUDR).
• While rubber industry expert Dr. Tran Thi Thuy Hoa, during her holistic survey, offered actionable tips for Vietnamese operators to tackle EUDR, FSC Vietnam Country Manager Vu Thi Que Anh highlighted the role of FSC Certification in meeting the EU Regulation.
• Challenges in EUDR compliance Dr. Tran Thi Thuy Hoa said Vietnam’s rubber supply chain remains both complex and fragmented, which poses substantial challenges for EUDR compliance.

• Tenaz Energy is a debt-free E&P company with low-decline, high-margin natgas assets in the Dutch North Sea
• Led by former CEO Anthony Marino, the company has seen its share price increase significantly and is considered undervalued
• Strong M&A strategy and track record of success, with original asset Leduc-Woodbend now only a small portion of its FCF, highlighting growth potential and attractive valuation

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Vale S.A.’s third quarter 2024 results present a mixed picture, with notable progress and some ongoing challenges.
• New CEO Gustavo Pimenta highlighted the company’s strategic vision, focusing on operational efficiencies, portfolio enhancements, and stakeholder trust.
• These pillars aim to drive Vale back to a competitive position, emphasizing safety, cost efficiency, and quality.

• Eni, a prominent energy company, presented its Q3 2024 financial results during a period marked by volatile energy markets influenced by a mix of fundamentals, geopolitical tensions, and speculative trading.
• The company’s performance objectives centered around maintaining resilient and competitive operations, reinforcing its balance sheet, funding business investments, distributing attractive returns to shareholders, and progressing its strategic initiatives.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Equinor ASA’s recent performance for the third quarter highlights several noteworthy financial and operational metrics, reflecting both strengths and challenges in its strategic execution.
• For the quarter, Equinor reported an adjusted operating income of $6.9 billion before tax and an IFRS net income of $2.3 billion.
• Year-to-date, the company has generated $14 billion in cash flow from operations after tax.

• 3Q24 production was 19,150 bbl/d including 18,938 bbl/d from Bretana and the remainder at Block 131.
• This performance exceeded expectations, as we had anticipated 17,900 bbl/d for Bretana.
• FY24 production at Bretana was 17,733 bbl/d, which is above the guidance of 16.5-17.5 mbbl/d.

• Antero Midstream Corporation, in its third-quarter 2024 investor conference call, provided key insights into its financial performance and strategic outlook.
• The company reported an EBITDA of $256 million, marking a modest 2% increase from the previous year.
• Free cash flow after dividends stood at $40 million, a significant 32% increase year-over-year.