Energy Business Review: BP is BACK, First Solar POSTPONES
Fully back into the Gulf of Mexico, BP (NYSE:BP) initiates production from its three-field Galapagos development, which will be one of six high-margin projects the firm intends to bring on-line in the area. Later in June BP will raise production from the Na Kika host platform, which boasts an output capacity of 130,000 barrels of energy equivalent per day, and has been reconfigured to process output from the three fields.
A shakeup in the energy firms listed by the Alerian MLP Index, pushes shares of Atlas Pipeline (NYSE:APL) higher; that firm will be added to the Index at the close on June 15th, while stocks of Alliance Holdings (NASDAQ:AHGP), Exterran Partners (NASDAQ:EXLP), and Niska Gas Storage Partners (NYSE:NKA) will be removed.
An announcement by First Solar (NASDAQ:FSLR) that it is postponing its closure of a solar module plant in Germany until the end of this year, is pushing its shares (and those of other solar firms) up Tuesday. Strong European demand for its products is leading to higher output by the facility, which was originally scheduled to be shut down in October. Some 48.2 percent of First Solar’s float was shorted as of May 15th with shares remaining down markedly over the last 12 months.
The United States’ tariffs to prevent dumping are said to be causing JA Solar (NASDAQ:JASO), China’s largest solar cell producer, to consider moving its production out of that country, says CEO Peng Fang. In addition, tensions are growing between China, and the U.S. and European governments, over the former’s subsidies to renewable energy companies.
It’s not quite The Clash of the Oil Titans, but T. Boone Pickens admits that he has moved money out of Chesapeake (NYSE:CHK), although he declares that remains a fan of the company and its CEO Aubrey McClendon, commenting that “The board has changed – things will clear up… You get nat gas a few dollars higher, Aubrey will be a home run hitter again.”. However, Pickens currently likes Continental Resources (NYSE:CLR) and Pioneer Natural Resources (NYSE:PXD), saying that oil supply remains tight and prices are likely to hold or rise in coming months.
Investing Insights: Gold Recaptures $1,600 on Spain and Italy Concerns.
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