| Thursday | ||||
Magellan Midstream (MMP)… Magellan Midstream (MMP) and Enterprise Products Partners (EPD) announced that affiliates of the two companies have entered into an agreement to jointly develop a futures contract for the physical delivery of crude oil in the Houston area in response to market interest for a Houston-based index with greater scale, flow assurance and price transparency. The quality specifications will be consistent with a West Texas Intermediate crude oil originating from the Permian Basin with delivery capabilities at either Magellan's East Houston terminal or Enterprise's ECHO terminal in Houston. | ||||
| Wednesday | ||||
Deutsche Bank analyst… Deutsche Bank analyst Kyle White downgraded O-I Glass to Hold from Buy with a price target of $14, down from $15 after taking over coverage of the paper and packaging sector. Beverage cans is the group he's most positive on going forward given "underlying global demand along with favorable contract structures that are still being played out." In containerboard, White expects continued demand strength in the first half of the year and believes a price increase is imminent. However, the analyst is cautious that it "could mark the peak for current industry fundamentals.". | ||||
Mizuho analyst Gabriel… Mizuho analyst Gabriel Moreen raised the firm's price target on Enterprise Products to $27 from $24 and keeps a Buy rating on the shares. 2020 may have "accelerated the maturation of a midstream sector previously accustomed to outspending cash flow and accelerated the forced a reset of its business strategy for the better," Moreen tells investors in a research note. Moving into 2021, the analyst expects heightened emphasis on capital discipline and free cash flow generation "that can continue the drive to remove the sector's leverage overhang once and for all." Beside a "surprisingly supportive" commodity backdrop, further catalysts may come from needed sector consolidation, says Moreen. | ||||
| Tuesday | ||||
Olin Corporation… Olin Corporation announced that it has made the decision to cease operations of its Trichloroethylene, or Tric, and Anhydrous Hydrogen Chloride, or AnHCl, liquefaction facilities in Freeport, Texas, before the end of 2021. These actions are expected to be cash flow accretive. Olin expects to incur approximately $2M of restructuring charges in 2021, associated with these plans. "The actions taken today further our efforts to ensure we purposefully allocate capital spending and Olin people assets towards lifting ECU returns. As Olin transitions our industry-leading feedstock position to supply next-generation, environmentally sustainable refrigerants, we will exit the production of Tric, which is used to produce traditional refrigerants." | ||||
| Monday | ||||
The company said,… The company said, "We remain confident that our vertical integration strategy will continue to provide a competitive advantage, allowing Tronox to deliver reliable, safe, quality, low-cost, sustainable tons to our customers while outperforming our TiO2 peers. The TiO2 business continues to benefit from the global industry recovery in 2021. With the current momentum, we are very optimistic about the short-, medium-, and long-term potential for both TiO2 and Tronox as the leading integrated supplier in the industry." | ||||
The company said,… The company said, "Due to the positive dynamics in the market, we delivered an even stronger fourth quarter than we previously contemplated, with sales exceeding expectations and Adjusted EBITDA coming in above our previously issued guidance. We expect fourth quarter 2020 revenue of $783 million and Adjusted EBITDA of $200 to $204 million, our strongest Adjusted EBITDA performance since we closed the Cristal acquisition. This performance was driven by a continued demand recovery in the fourth quarter as well as delivery on our synergy targets from the Cristal transaction. Fourth quarter TiO2 volumes increased 8 percent sequentially and year over year while pricing remained level. Zircon volumes were the strongest of the year, increasing 70 percent sequentially and 48 percent year over year. We will report our full financial results as planned in mid-February." The selected preliminary unaudited financial results for the quarter ending December 31, 2020 are preliminary, based upon information available as of today and are subject to change and finalization based on completion of all year-end close processes. | |
The company said,… The company said, "The Board intends to increase our annualized dividend to $0.32 per share from $0.28 per share, which equates to a 14 percent increase effective with the regular first quarter 2021 dividend. This reflects the confidence we have in the trajectory of the recovery in the sector and in our differentiated business model and is consistent with our previously stated goal to increase dividends as business conditions permit." | |
Tronox Holdings released… Tronox Holdings released selected preliminary unaudited financial results for the quarter ending December 31, 2020, and provided an update on its business, including the decision to terminate its agreement with Eramet S.A. to acquire the TiZir Titanium and Iron business following the British Competition and Markets Authority's rejection of a remedy proposal and opening of a Phase 2 investigation. "We are disappointed with the rejection of our remedy proposal and respectfully disagree with the view taken by the CMA," stated Jean-Francois Turgeon, co-Chief Executive Officer; Executive Vice President and Chief Operating Officer. "While TTI was an asset that would have furthered our vertical integration strategy, the decision to terminate the agreement reflects the fact that under the CMA's rules, we could not have obtained regulatory approval prior to the termination date under the agreement with Eramet. We are currently building significant momentum in the market and are already well-positioned to execute on our strategic plans with our existing portfolio today. We will continue to leverage our vertical integration and sourcing strategy to supply our pigment feedstock requirements and remain focused on our efforts to bring the Jazan smelter online." Upon signing of the agreement to acquire TTI in May 2020, $18M of funds were placed into escrow which, due to the termination of the agreement, will now be released to Eramet as a break fee. |
| Over a week ago | ||||
Albemarle (ALB) announced… Albemarle (ALB) announced that Melissa Anderson has joined the company as Senior Vice President, Chief Human Resources Officer, effective January 11. Anderson joins Albemarle from Duke Energy (DUK) where she served as Executive Vice President, Administration and Chief Human Resources Officer. | ||||
Seaport Global analyst… Seaport Global analyst Michael Harrison upgraded Huntsman to Buy from Neutral with a $35 price target. | ||||