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April 1, 2022, 8:30 a.m. EDT

Price Volatility and ESG Goals Boost Petroleum Market Activity, Pushing Stocks Upward

FN Media Group Presents USA News Group News Commentary VANCOUVER, BC, April 1, 2022 /PRNewswire/ -- In 2021, shares of more eco-friendly companies known to appease ESG investors were outperformed by oil and gas stocks over the course of the year. Despite this apparent divergence, there's been a movement towards making O&G stocks more ESG friendly , such as the push to reincorporate Civitas Resources, Inc. /zigman2/quotes/204933876/composite CIVI +1.00% into ESG funds. Less phased by ESG peer pressure , billionaire investor Warren Buffett and his Berkshire Hathaway Inc. stacked up an investment worth ~$7.7 billion  into Occidental Petroleum Corporation /zigman2/quotes/207018272/composite OXY +1.96% in March 2022, with speculation he could pay the remaining $50 billion to acquire the whole thing. Buffett's latest investment put Occidental in with Chevron Corporation /zigman2/quotes/205871374/composite CVX +0.57% as the only two O&G stocks in Berkshire's top 10 largest common stock holdings. Meanwhile, other ESG-friendly O&G deals are taking place, including the takeover of Petroteq Energy, Inc. (otcpk:PQEFF) by Viston United Swiss AG . In the case of Petroteq Energy, Inc. (otc pink:PQEFF), cleaner technologies for sustainable oil production drew significant attention from ESG-focused equity firm Viston United Swiss AG , which was created to invest in renewable energies and clean technologies, as well as in the environmental protection industry.

Petroteq 's development of proprietary oil extraction and remediation technologies made it stand out as part of an overall ESG strategy for Viston United Swiss AG .

Their technology's ability to enable a company to produce oil without water, waste tailings ponds and emissions, led to Viston's premium price valuation of Petroteq stock, at a price point of approximately 279% over the closing price of the Common Shares on the TSX Venture Exchange on August 6, 2021, and a 1,032% premium  to the 52-week volume weighted average trading price on the TSX-V prior to the offer originally made in April 2021.

"We are particularly pleased with the recognition this shows of our technology which we have taken from inception to commercial viability as a one of its kind in oil sands eco-friendly, green extraction," said former Petroteq  Chairman and CEO, Dr. Gerald Bailey, who retired in January . "We had always forecast a great future. However, we respect the value of this offer to shareholders and if it can be achieved it will reward our many dedicated supporters."

Last September, Petroteq proved it could produce from oil sands  ore using its Clean Oil Recovery Technology (CORT) process.

After the release of the pilot program's test results, Vladimir Podlipskiy, PhD, Interim CEO and Director of Petroteq , commented, "Confirmation that heavy oil extracted from Utah oil sands using our CORT process is suitable for production of MSAR [®]  and bioMSAR™ fuels could allow for the production of fuel and biofuel with significant environmental benefits, while creating a higher value product stream for Petroteq's future commercial production."

In addition to sustainable oil production, Petroteq 's technology cleans oil sands of all hydrocarbons, creating a purified sand as part of an overall ESG strategy.

The Viston offer has been favorably across the Petroteq team. Its Board Members have shared their unanimous intention  to tender their shares through the offer. Now the company's Founder, Former Chairman and CEO Alex Blyumkin has announced  his support for the takeover bid.

"After thorough consideration of all aspects of the Viston Offer, the advice provided by Haywood  and consulting with its other advisors, the Board has unanimously determined to recommend that Shareholders accept the Viston Offer and tender their Common Shares," said the Board in their official statement.

The offer itself is valued at a considerable premium over the market price, with a 100% all-cash consideration of C$0.74 per common share.

Meanwhile, through its US shares on the OTC under the PQEFF symbol, shares of Petroteq are trading around US$0.375(C$0.474) on March 30, 2022. At that price point, the C$0.74 still represents a potential 56% premium over the more current trading price.

At a time when the US government is urging increased oil and gas production to offset some of the deficit created, talk is ramping up on how to increase domestic production again.

According to Ben Dell, co-founder and Managing Partner of the private equity firm Kimmeridge Energy Management , it's possible to produce traditional energy sources with reduced carbon emissions.

Kimmeridge is currently the largest shareholder in Civitas Resources, Inc. /zigman2/quotes/204933876/composite CIVI +1.00% , which produces oil and natural gas in the Rocky Mountain region of Colorado, and is billed as "Colorado's first carbon-neutral oil and gas producer."

"My real ambition is to see oil and gas companies like Civitas added back to ESG funds," said Dell, stating he hopes ESG funds would go on to "understand that the company is already reducing its emission footprint and has offset its footprint and is delivering a net zero product."

After closing a large $346 million acquisition of Denver-Julesburg Basin operator Bison Oil & Gas II , Dell who was already serving as Chairman of the company, officially took over as interim CEO of Civitas .

Last year at the Berkshire Hathaway Inc. annual shareholder meeting , Warren Buffett shared his own unconventional views  on ESG investing. When it comes to reporting for the sake of it, Buffett believes excess ESG reporting should be avoided, as he doesn't believe these reports are always fully read before additional questions come about.

Berkshire Hathaway is comfortable with investing in both Chevron Corporation /zigman2/quotes/205871374/composite CVX +0.57% and Occidental Petroleum Corporation /zigman2/quotes/207018272/composite OXY +1.96% .

But just because Berkshire's methods of acknowledging ESG intentions aren't as transparent as other firms might be, that doesn't mean its O&G interests ignore the market's demand for ESG efforts.

For example, Occidental Petroleum Corporation /zigman2/quotes/207018272/composite OXY +1.96% has announced plans  for 70 plants to capture carbon from the air by 2035. Construction on the first direct air capture plant that's planned is expected to start in H2 2022, with startup scheduled for late 2024 , with the cost per plant expected to cost $1 billion.

"Corporations and CEOs are realizing that for us to mitigate climate change in the world, it's absolutely necessary that we take steps now," said Vicki Hollub CEO of Occidental . "This is a sure opportunity and a way that we can definitively store and keep captured CO2 either underground or through products for forever, and it's a path for others to make their path sustainable too." 

Hollub's company is also investing $100 million this year to develop three carbon sequestration hubs by 2025. Occidental  has said it's on track to secure more than 100,000 net acres this year for these sequestration hubs, including for multiple sequestration sites on the Gulf Coast. 

Another Berkshire interest, Chevron Corporation /zigman2/quotes/205871374/composite CVX +0.57% , earlier this year made its biggest bet so far in company history into alternative fuels, through a $3.15 billion acquisition of biodiesel maker Renewable Energy . While biodiesel and renewable diesel use similar feedstocks, renewable diesel undergoes a separate refining process to make it chemically identical to ultra-low-sulfur diesel.

"Most people see (biodiesel) as growing in the U.S. and Southeast Asia ... and view it as a blendstock to get optimum margin because it's less expensive than renewable diesel," said Mark Nelson, Executive VP of Downstream and Chemicals for Chevron , in an interview with Reuters .

Much like the PetroTeq and Viston takeover offer, Chevron's offer for Renewable Energy came with a premium of more than 40% prior to the company's closing price the Friday before the Monday announcement took place.

The investment fits into Chevron's long-term plans to cut operational emissions to net zero by 2050 and in September pledged to invest $10 billion to reduce its carbon emissions through 2028, with about $3 billion earmarked for renewable fuels.

More recently, Chevron agreed to collaborate  with Restore the Earth Foundation on a carbon offsets reforestation project in Louisiana, which includes planting an expected 1.7 million native bald cypress seedlings as part of the project.

"Chevron New Energies is proud to collaborate with Restore the Earth on our inaugural carbon offsets project – bringing lower carbon solutions to Chevron as well as our customers," said Barbara Harrison, vice president of Offsets & Emerging of Chevron New Energies. "In addition to helping remove carbon, the seedling replanting is anticipated to contribute to local forest and wetland ecosystem restoration."

For more information go to: https://usanewsgroup.com/2022/03/25/this-quick-turnaround-takeover-is-the-kind-of-play-smart-investors-snap-up-in-a-heartbeat/

Article Source: 

USA News Group http://USAnewsgroup.com  
info@usanewsgroup.com

DISCLAIMER:

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. ("MIQ"). MIQ has been paid a fee for PetroTeq Energy Inc. advertising and digital media from Maynard Communication Limited. There may be 3rd parties who may have shares of PetroTeq Energy Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ DOES NOT own any shares of PetroTeq Energy Inc. MIQ reserves the right to buy and sell, and will buy and sell shares of PetroTeq Energy Inc. at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ on/about PetroTeq Energy Inc. has been reviewed and approved by the principals at PetroTeq Energy Inc.; this is a paid advertisement, and while we do not currently own shares of PetroTeq Energy Inc., we plan on buying and selling shares of PetroTeq Energy Inc. in the open market. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

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SOURCE USA News Group

COMTEX_405088124/2454/2022-04-01T08:30:13

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/zigman2/quotes/204933876/composite
US : U.S.: NYSE
$ 63.72
+0.63 +1.00%
Volume: 400,765
Oct. 5, 2022 2:27p
P/E Ratio
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Dividend Yield
2.90%
Market Cap
$5.36 billion
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$8.29M
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US : U.S.: NYSE
$ 67.47
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US : U.S.: NYSE
$ 158.53
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Dividend Yield
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Market Cap
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Rev. per Employee
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/zigman2/quotes/204933876/composite
US : U.S.: NYSE
$ 63.72
+0.63 +1.00%
Volume: 400,765
Oct. 5, 2022 2:27p
P/E Ratio
6.19
Dividend Yield
2.90%
Market Cap
$5.36 billion
Rev. per Employee
$8.29M
loading...
/zigman2/quotes/205871374/composite
US : U.S.: NYSE
$ 158.53
+0.90 +0.57%
Volume: 7.23M
Oct. 5, 2022 2:27p
P/E Ratio
10.64
Dividend Yield
3.57%
Market Cap
$308.55 billion
Rev. per Employee
$4.86M
loading...
/zigman2/quotes/207018272/composite
US : U.S.: NYSE
$ 67.47
+1.30 +1.96%
Volume: 19.73M
Oct. 5, 2022 2:27p
P/E Ratio
6.68
Dividend Yield
0.77%
Market Cap
$61.64 billion
Rev. per Employee
$2.85M
loading...
/zigman2/quotes/207018272/composite
US : U.S.: NYSE
$ 67.47
+1.30 +1.96%
Volume: 19.73M
Oct. 5, 2022 2:27p
P/E Ratio
6.68
Dividend Yield
0.77%
Market Cap
$61.64 billion
Rev. per Employee
$2.85M
loading...
/zigman2/quotes/205871374/composite
US : U.S.: NYSE
$ 158.53
+0.90 +0.57%
Volume: 7.23M
Oct. 5, 2022 2:27p
P/E Ratio
10.64
Dividend Yield
3.57%
Market Cap
$308.55 billion
Rev. per Employee
$4.86M
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