- Freehold Royalties Q1 2026 Earnings Call Transcript
May 13, 2026
Freehold Royalties (OTC:FRHLF) reported first-quarter financial results on Wednesday. The transcript from the company's first-quarter earnings call has been provided below.
This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/.
The full earnings call is available at https://edge.media-server.com/mmc/p/d43cmqxn/
Summary
Freehold Royalties reported Q1 production of 15,533 BOE/day with a liquids weighting of 65%, driven by a liquids-focused strategy.
The company generated $59 million in funds from operations and paid $44 million in dividends, while investing $19 million in mineral title lands in the Permian Basin.
Freehold Royalties reiterated its 2026 production guidance of 15,500 to 16,300 BOE/day, expecting increased activity in Canada and the US as oil prices stabilize.
The US operations delivered a higher revenue component, contributing 51% of total revenue due to premium pricing and higher liquids weighting.
Management highlighted strategic acquisitions of undeveloped mineral title lands and potential share buybacks under the NCIB, focusing on enhancing the portfolio with high-quality assets.
Full Transcript
OPERATOR
Good day and thank you for standing by. Welcome to the Freehold Royalties first quarter 2026 webcast. At this time all participants are in a listen only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session you will need to press star 11 on your telephone. You will then hear an automated message advising that. Your hand is raised to withdraw your question. Please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, David Spiker, President and CEO. Please go ahead.
David Spiker (President and CEO)
Yes, Good morning everyone. Thank you for joining us today. On the call with me is Paul Slack, our interim CFO and Todd McBride, our manager of Investor Relations. For those that don't know Paul, he's been with our organization for the past six years as our Controller and has been in the industry for 30 years. So before we get started please be advised that certain statements on this call are considered as forward looking information and we caution the listener to review the advisory on forward looking statements in the news release and MD&A found on our website. So in the first quarter of this year we achieved production of 15,533 by a day with a liquids weighting of 65%. The oil and gas portion of our portfolio contribute 90% of our total revenue as our liquids focused strategy continues to drive our business and will be a key factor in this current elevated oil price environment. As we outlined in our conference call In March, our Q1 production reflects lower drilling activities in the latter half of 2025 when oil prices were sitting below $60 a barrel. WTI we did have some seasonal impact of the winter storm that swept through the southern US in late January and resulted in approximately 300 barrels a day of production. Downtime in January or in the quarter is what, 100 BOE a day on average. Activity levels in the first quarter were focused on our oil weighted assets in both Canada and the US we saw continued strong activity levels in our heavy oil plays the Clearwater and Manville in addition to very active programs in the Viking and Southeast Saskatchewan light oil with new drilling in these two light oil plays contributing over 225 barrels a day as we exited Q1. On the US side drilling was focused in the Permian and continues to be led by some of our top operators in Exxon Mobil, Occidental and Diamondback. Activity in the Eagle Ford tends to be a bit more seasonal and we see permitting and drilling activity just being initiated by ConocoPhillips and production associated with this field activity will start to show up in the back half of this year. In this current oil price environment where we have $100 a barrel oil this morning and balance of year strip pricing in the mid to upper 80s a barrel, we're starting to see licensing activity pick up in the Clearwater Southeast Saskatchewan Viking as well as some of our liquids rich gasier areas in certain parts of the Deep Basin and West Central Alberta Glauconite. We would expect to see drilling activity in these areas after spring breakup and this activity would contribute to our 2026 exit volumes. Looking ahead in the US permitting and drilling activity has not seen a significant uptick yet. However we are seeing all available frac spreads and service rigs activated to focus on bringing forward wells that have already been drilled and are awaiting completion. Given the volatility in the oil price and no clear direction yet on the duration of this price strength, operators are still developing their capital deployment strategies. All these tailwinds are positive for the industry and we expect the incremental production adds from any additional activity would show up in the latter half of 2026 and into 2027. Therefore, we are reiterating our 2026 production guidance at this time of 15,500 to 16,300 BOE a day annual production in the quarter we generated 59 million of funds from operations or $0.36 per share at an oil price of $72 a barrel WTI in the first quarter with this funds flow, we paid 44 million in dividends to our shareholders and we invested $19 million in oil focused mineral title lands in undeveloped drilling areas in the core of the Permian Basin. These lands are in early stages of development with mineral title lands held in perpetuity and are in areas that have significant undeveloped resource. Our net debt set a little higher as a result of these investments this quarter our North American portfolio remains very well balanced with 55% of our production coming out of Canada and 45% out of the U.S. the U.S. represents a slightly smaller share of production, but it does deliver a disproportionately higher revenue component accounting for 51% of our total revenue this quarter. This is driven by the premium pricing and higher liquids weighting that we have in our US assets. In the first quarter US royalty volumes realized a 31% pricing premium compared to our Canadian production. Beyond the quality and the strong market access of our US oil, our US natural gas also received a 58% premium over a Canadian gas price due to proximity to US Gulf Coast LNG facilities and significantly more egress options than we have in Canada. So as we think through our capital allocation priorities and this current price environment after a monthly dividend we look to have a bit of a balance of debt repayment along with strategic acquisitions that enhance our portfolio. We continue to see high quality opportunities to acquire this undeveloped mineral title lands in the core of the Permian and our focus has been on these types of deals. In the first quarter of this year we invested $19 million in what we call these ground-game style deals, adding over 200 drilling locations to our inventory under Premier operators ExxonMobil, Diamondback, Occidental, ConocoPhillips and Double Eagle. Lastly through our NCIB we have the option of share buybacks. So this year marks our 30th year as a public company and over the past 30 years our production has grown at a 4% compounded annual growth rate and we maintained a monthly dividend throughout Our portfolio offers investors exposure to the premier oil and natural gas basins across North America, including our growing heavy oil segment in Northern Alberta, a lighter oil plays in Southeast Saskatchewan, exposure to Gulf coast pricing with our Eagle Ford assets and our growing light oil and natural gas production from the Permian we invite you all to join us at our annual general meeting at 3pm Calgary time this afternoon. It will be held at the 8th Avenue Place Conference center and at Suite 400, 525 8th Ave. Southwest Calgary. More details, including a link to the webcast over AGM can be found on our website@freeholdroyalties.com so with that we're pleased to take any questions
Story Continues
OPERATOR
As a reminder. To ask a question, you will need to press Star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by when we compile our Q and A roster. And our first question will come from the line of Jamie Kubik of CIBC. Your line is open. Jamie, yeah, good morning.
Jamie Kubik (Equity Analyst)
Thanks for taking my question. I just had a question with respect to the US drilling activity in the quarter. Looked like it was down considerably year on year. Can you just talk about some of the nuances there and how you think that unfolds over the balance of the year? Yeah Jamie, I think that's really more a reflection of trailing $60 WTI coming out of the last quarter and that plays into the first quarter of this year. Going forward we are seeing an increase in permitting activity and US is a little bit different than Canada in that you think of that on stream time, typically taking 12 to 18 months to go from permitting to drilling a pad. And so what we are seeing is U.S. operators probably taking a little bit more time to decide how they're going to place their capital in this environment because that drilling isn't going to capture $100 oil price that we see today. So they want to make sure that as they ramp up their programs that they're happy, which really is going to become 2027. Pricing will impact those volumes. So in Canada, we see a little bit of quicker ramp up, there's quicker cycle times. But in the US I think we're just starting to see that activity ramp up as a little bit more confidence in what late year pricing looks like and going into next year. Okay, that's all for me, thanks. Yeah, thanks, Jamie.
OPERATOR
And as a reminder, if you would like to ask a question, please press star 11 on your telephone and wait for your names to be announced. And I would now like to turn the call back to Dave for closing remarks.
David Spiker (President and CEO)
Excellent. Well, thanks everyone for joining today. And like I say, if we can make it over to the AGM this afternoon, we'd love to see you there. And thanks and have a good day. Take care.
OPERATOR
And this concludes today's program. Thank you for participating. You may now disconnect.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
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This article Freehold Royalties Q1 2026 Earnings Call Transcript originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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- Full Transcript: Freehold Royalties Q1 2026 Earnings Call
May 13, 2026
Freehold Royalties (TSX:FRU) reported first-quarter financial results on Wednesday. The transcript from the company's first-quarter earnings call has been provided below.
This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation.
The full earnings call is available at https://edge.media-server.com/mmc/p/d43cmqxn/
Summary
Freehold Royalties reported Q1 2026 production of 15,533 barrels of oil equivalent per day, with a liquids weighting of 65%, driven by a focus on oil-weighted assets.
The company generated $59 million in funds from operations, translating to $0.36 per share, and paid $44 million in dividends, while investing $19 million in mineral title lands in the Permian Basin.
Freehold Royalties reiterated its 2026 production guidance of 15,500 to 16,300 barrels of oil equivalent per day and discussed the positive impact of $100 oil prices on future activity and revenue.
Full Transcript
OPERATOR
Good day and thank you for standing by. Welcome to the Freehold Royalties first quarter 2026 webcast. At this time all participants are in a listen only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session you will need to press star 11 on your telephone. You will then hear an automated message advising that. Your hand is raised to withdraw your question. Please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, David Spiker, President and CEO. Please go ahead.
David Spiker (President and CEO)
Yes, Good morning everyone. Thank you for joining us today. On the call with me is Paul Slack, our interim CFO and Todd McBride, our manager of Investor Relations. For those that don't know Paul, he's been with our organization for the past six years as our Controller and has been in the industry for 30 years. So before we get started please be advised that certain statements on this call are considered as forward looking information and we caution the listener to review the advisory on forward looking statements in the news release and MD&A found on our website. So in the first quarter of this year we achieved production of 15,533 by a day with a liquids weighting of 65%. The oil and gas portion of our portfolio contribute 90% of our total revenue as our liquids focused strategy continues to drive our business and will be key in this current elevated oil price environment. As we outlined in our conference call In March, our Q1 production reflects lower drilling activities in the latter half of 2025 when oil prices were sitting below $60 a barrel. WTI we did have some seasonal impact of the winter storm that swept through the southern US in late January and resulted in approximately 300 barrels a day of production. Downtime in January or in the quarter is what, 100 boe a day on average. Activity levels in the first quarter were focused on our oil weighted assets in both Canada and the US we saw continued strong activity levels in our heavy oil plays the Clearwater and Manville in addition to very active programs in the Viking and Southeast Saskatchewan light oil with new drilling in these two light oil plays contributing over 225 barrels a day as we exited Q1. On the US side drilling was focused in the Permian and continues to be led by some of our top operators in Exxon Mobil, Occidental and Diamondback. Activity in the Eagle Ford tends to be a bit more seasonal and we see permitting and drilling activity just being initiated by ConocoPhillips and production associated with this field activity will start to show up in the back half of this year. In this current oil price environment where we have $100 a barrel oil this morning and balance of year strip pricing in the mid to upper 80s a barrel, we're starting to see licensing activity pick up in the Clearwater Southeast Saskatchewan Viking as well as some of our liquids rich gasier areas in certain parts of the Deep Basin and West Central Alberta Glauconite. We would expect to see drilling activity in these areas after spring breakup and this activity would contribute to our 2026 exit volumes. Looking ahead in the US permitting and drilling activity has not seen a significant uptick yet. However we are seeing all available frac spreads and service rigs activated to focus on bringing forward wells that have already been drilled and are awaiting completion. Given the volatility in the oil price and no clear direction yet on the duration of this price strength, operators are still developing their capital deployment strategies. All these tailwinds are positive for the industry and we expect the incremental production adds from any additional activity would show up in the latter half of 2026 and into 2027. Therefore, we are reiterating our 2026 production guidance at this time of 15,500 to 16,300 boe/day annual production in the quarter we generated 59 million of funds from operations or $0.36 per share at an oil price of $72 a barrel WTI in the first quarter with this funds flow we paid 44 million in dividends to our shareholders and we invested $19 million in oil focused mineral title lands in undeveloped drilling areas in the core of the Permian Basin. These lands are in early stages of development with mineral title lands held in perpetuity and are in areas that have significant undeveloped resource. Our net debt set a little higher as a result of these investments this quarter our North American portfolio remains very well balanced with 55% of our production coming out of Canada and 45% out of the U.S. the U.S. represents a slightly smaller share of production, but it does deliver a disproportionately higher revenue component accounting for 51% of our total revenue this quarter. This is driven by the premium pricing and higher liquids weighting that we have in our US assets. In the first quarter US royalty volumes realized a 31% pricing premium compared to our Canadian production. Beyond the quality and the strong market access of our US oil, our US natural gas also received a 58% premium over a Canadian gas price due to proximity to US Gulf Coast LNG facilities and significantly more egress options than we have in Canada. So as we think through our capital allocation priorities and this current price environment after a monthly dividend we look to have a bit of a balance of debt repayment along with strategic acquisitions that enhance our portfolio. We continue to see high quality opportunities to acquire this undeveloped mineral title lands in the core of the Permian and our focus has been on these types of deals. In the first quarter of this year we invested $19 million in what we call these ground game style deals, adding over 200 drilling locations to our inventory under Premier operators ExxonMobil, Diamondback, Occidental, ConocoPhillips and Double Eagle. Lastly through our NCIB we have the option of share buybacks. So this year marks our 30th year as a public company and over the past 30 years our production has grown at a 4% compounded annual growth rate and we maintained a monthly dividend throughout Our portfolio offers investors exposure to the premier oil and natural gas basins across North America, including our growing heavy oil segment in Northern Alberta, a lighter oil plays in Southeast Saskatchewan, exposure to Gulf coast pricing with our Eagle Ford assets and our growing light oil and natural gas production from the Permian we invite you all to join us at our annual general meeting at 3pm Calgary time this afternoon. It will be held at the 8th Avenue Place Conference center and at Suite 400, 525 8th Ave. Southwest Calgary. More details, including a link to the webcast over AGM can be found on our website@freeholdroyalties.com so with that we're pleased to take any questions
Story Continues
OPERATOR
As a reminder. To ask a question, you will need to press Star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by when we compile our Q and A roster. And our first question will come from the line of Jamie Kubik of CIBC. Your line is open. Jamie, yeah, good morning.
Jamie Kubik (Equity Analyst)
Thanks for taking my question. I just had a question with respect to the US drilling activity in the quarter. Looked like it was down considerably year on year. Can you just talk about some of the nuances there and how you think that unfolds over the balance of the year? Yeah Jamie, I think that's really more a reflection of trailing $60 WTI coming out of the last quarter and that plays into the first quarter of this year. Going forward we are seeing an increase in permitting activity and US is a little bit different than Canada in that you think of that on stream time, typically taking 12 to 18 months to go from permitting to drilling a pad. And so what we are seeing is us guys probably taking a little bit more time to decide how they're going to place their capital in this environment because that drilling isn't going to capture $100 oil price that we see today. So they want to make sure that as they ramp up their programs that they're happy, which really is going to become 2027. Pricing will impact those volumes. So in Canada, we see a little bit of quicker ramp up, there's quicker cycle times. But in the US I think we're just starting to see that activity ramp up as a little bit more confidence in what late year pricing looks like and going into next year. Okay, that's all for me, thanks. Yeah, thanks, Jamie.
OPERATOR
And as a reminder, if you would like to ask a question, please press star 11 on your telephone and wait for your names to be announced. And I would now like to turn the call back to Dave for closing remarks.
David Spiker (President and CEO)
Excellent. Well, thanks everyone for joining today. And like I say, if we can make it over to the AGM this afternoon, we'd love to see you there. And thanks and have a good day. Take care.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
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This article Full Transcript: Freehold Royalties Q1 2026 Earnings Call originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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- We Think That There Are More Issues For Diamondback Energy (NASDAQ:FANG) Than Just Sluggish Earnings
May 13, 2026
Investors were disappointed by Diamondback Energy, Inc.'s (NASDAQ:FANG ) latest earnings release. We did some further digging and think they have a few more reasons to be concerned beyond the statutory profit.
Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.NasdaqGS:FANG Earnings and Revenue History May 13th 2026
The Impact Of Unusual Items On Profit
To properly understand Diamondback Energy's profit results, we need to consider the US$448m gain attributed to unusual items. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. We can see that Diamondback Energy's positive unusual items were quite significant relative to its profit in the year to March 2026. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be.
That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.
Our Take On Diamondback Energy's Profit Performance
As we discussed above, we think the significant positive unusual item makes Diamondback Energy's earnings a poor guide to its underlying profitability. For this reason, we think that Diamondback Energy's statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. Sadly, its EPS was down over the last twelve months. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For instance, we've identified 4 warning signs for Diamondback Energy (1 makes us a bit uncomfortable) you should be familiar with.
This note has only looked at a single factor that sheds light on the nature of Diamondback Energy's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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- Trump’s Ceasefire Warning Sends Oil Prices Higher Again
May 12, 2026
Brent crude nears $110 as Trump warns the Iran ceasefire is on “life support,” while Gulf producers signal oil infrastructure repairs may stretch into 2027.
China’s Oil Machine Hits the Brakes: Imports Sink, Margins Tank, Pressure Rises
- With Gulf supply still stranded, China’s crude imports posted a hefty 2.4 million b/d month-over-month decline in April, averaging only 9.25 million b/d and marking the lowest pace of inflows since July 2022.
- Apart from the obvious sourcing problems all Asian refiners face nowadays, Chinese refiners are also struggling to cope with Beijing’s imposed refined product export ban that limits downstream supply to the domestic market.
- Weakening domestic demand combined with elevated crude oil prices have sent margins for independent refiners in Shandong south, with refinery run rates collapsing to just 50% in May so far.
- China’s state planner NDRC mandated that independent refiners should not cut run rates below the averages of 2024-2025, and failing to do so would result in them seeing their import quotas slashed for good.
- According to Kayrros, Chinese inventories remain flat throughout May at 1.34 billion barrels, suggesting Chinese refiners mostly compensate for lower imports by cutting refinery runs.
Market Movers
- UK-listed energy major Shell (LON:SHEL) is reportedly seeking to sell its French retail network, aiming to close the deal by Q1 2027, putting an end to its downstream presence in the country after a 2007 refining divestment.
- The 4.2 mtpa Hammerfest LNG terminal operated by Norway’s state oil company Equinor (NYSE:EQNR) was taken offline for unplanned turnarounds due to ‘process problems’, tightening supply in Europe.
- QatarEnergy, the national oil and gas company of Qatar, has signed a memorandum of understanding with Syria to evaluate the potential of its offshore Block 3.
- Libya’s National Oil Corp. has assumed full control of the country’s idled 220,000 b/d Ras Lanuf refinery, following a decade-long legal battle with its JV partner Trasta, moving Libya closer to boost its downstream presence.
Tuesday, May 12, 2026
Seesawing over the past two weeks, ICE Brent futures are nearing $110 per barrel again with comments from US President Trump about the ceasefire deal being on ‘life support’, keeping daily gains at 3% so far this week. Oil producers in the Gulf region have seemingly already given up on 2026, with both Saudi Arabia and the UAE flagging that full repairs to droned sites would only be possible by next year. In the days ahead, the Xi-Trump summit could dictate the macro mood of the week as Trump’s sanctions on Chinese companies this week raised alarms about any breakthroughs.
Story Continues
US Slaps Sanctions on Iranian Oil Traders. The Trump administration has announced new sanctions against Chinese and UAE companies that facilitate Iran’s shipment of crude oil to China, with the State Department announcing a reward of up to $15 million for new information on IRGC’s oil trade.
Qatar Sees Hope at the End of the Tunnel. The Al Kharaitiyat LNG carrier became the first Qatari-owned vessel to successfully exit the Strait of Hormuz since the US-Iran conflict started more than two months ago, slated to arrive in Pakistan after Islamabad cut a deal with Iran’s IRGC forces.
Pakistan Gives Up on LNG Tenders. Having rejected all bids in its prompt tender to purchase two LNG cargoes for May delivery last week, with the lowest bid coming from BP at $17.28 per MMBtu, Pakistan’s state-owned PLL ceased all tendering activity, opting for Qatari LNG arrivals instead.
Tehran Warns of Upcoming Shortages. Iran’s Organization for Energy Optimization and Strategic Management has warned that repairs to the country’s energy infrastructure could take up to two years, requiring ‘serious investments’, highlighting particular damage to the South Pars gas field.
Iraq Defies Saudi Aramco’s Pricing. Iraq’s state oil crude marketer Somo has slashed its official selling prices for June-loading cargoes to Asia by a hefty $13 per barrel compared to May, much more than Saudi Aramco’s $4 per barrel cut as Middle Eastern suppliers struggle to sell their oil.
OPEC Production Continues to Fall. The production of OPEC members continued its decline last month, with Reuters’ output survey indicating that the 12 nations (including the UAE) jointly lost 830,000 b/d in April, with Kuwait posting the largest monthly drop of 640,000 b/d.
Mexico's Refining Suffers Yet Another Blow. Mexico's only refinery, situated on the country's Pacific coast, the 330,000 b/d Oaxaca plant operated by Pemex, was taken offline after a fire incident in its hydrotreater unit that left six workers injured, the second blaze taking place there in just 5 months.
China Boosts Ethane Use to the Maximum. Chinese imports of ethane jumped to an all-time high of 1 million tonnes in April as the country’s petrochemical producers maximized their intake due to severe shortages of naphtha and LPG in the region, seeking to benefit from strong ethylene margins.
US Shale Firms Bet on Weakening WTI. US oil producer Diamondback Energy (NYSE:FANG) bought options worth some $70 million to sell the price difference between WTI and Brent at -$42 per barrel, betting on the Trump administration banning oil exports and depressing US oil prices.
Beijing Gives Up on Saudi Crude. The nominations of Chinese refiners for June-loading Saudi oil barrels have collapsed to a mere 10 million barrels, some 333,000 b/d, with consistently high formula prices leading to the lowest demand on record, with 2025 exports averaging 1.4 million b/d.
India Rejects Russia’s Sanctioned LNG. India’s Modi government has declined Russia’s offer to sell it liquefied natural gas cargoes from sanctioned projects such as Arctic LNG 2 and Portovaya LNG, rejecting the Kunpeng tanker that was anchored in the country’s waters for several weeks.
West African Is Doubling Down on Drilling. Equatorial Guinea’s oil ministry has announced it would be offering 13 oil blocks for upstream companies for direct negotiations, cancelling plans for a licensing round and seeking to replicate the success of its ConocoPhillips deal from late 2025.
IRGC Expands Its Claim of Hormuz Strait. The Islamic Revolutionary Guard has indicated it would expand its zone of control around the Strait of Hormuz, now claiming a ‘vast operational area’ 10 times wider than before the war, stretching all the way to Sirri Island, 250 km from the Hormuz.
Funds’ Bullish Appetite Pushes Copper Higher. Supply disruptions across the global mining landscape and strong hedge fund positioning have helped copper to hit a three-month peak, with the LME three-month contract touching $14,025 per tonne, up $1,000 per tonne from a week ago.
By Tom Kool for Oilprice.com
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- 2 Nasdaq 100 Stocks to Keep an Eye On and 1 We Question
May 12, 2026
While the Nasdaq 100 (^NDX) is filled with cutting-edge technology and consumer companies, not all are on solid footing. Some are dealing with declining demand, high costs, or regulatory pressures that could limit future upside.
Investing in Nasdaq 100 stocks isn’t just about picking big names - it’s about finding the right ones, and that’s where StockStory comes in. Keeping that in mind, here are two Nasdaq 100 stocks that have huge potential and one that may struggle.
One Stock to Sell:
Autodesk (ADSK)
Market Cap: $52.97 billion
Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk (NASDAQ:ADSK) provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.
Why Do We Think Twice About ADSK?
Sales trends were unexciting over the last five years as its 13.7% annual growth was below the typical software company Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low Operating margin was unchanged over the last year, suggesting it failed to gain leverage on its fixed costs
Autodesk is trading at $248.20 per share, or 6.4x forward price-to-sales. Check out our free in-depth research report to learn more about why ADSK doesn’t pass our bar.
Two Stocks to Watch:
Ross Stores (ROST)
Market Cap: $72.32 billion
Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ:ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores.
Why Could ROST Be a Winner?
Same-store sales provide a solid foundation for the steady expansion of its stores Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 3.6% over the past two years Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Ross Stores’s stock price of $227.01 implies a valuation ratio of 31.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Diamondback Energy (FANG)
Market Cap: $53.58 billion
Sporting one of Wall Street's most memorable ticker symbols, Diamondback Energy (NASDAQ:FANG) drills for and produces oil and natural gas from underground rock formations in the Permian Basin of West Texas and New Mexico.
Why Is FANG a Good Business?
Impressive 42.8% annual revenue growth over the last ten years indicates it’s winning market share this cycle Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 79.7% Robust free cash flow margin of 37.1% gives it many options for capital deployment
Story Continues
At $192.75 per share, Diamondback Energy trades at 9.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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- Petrobras Q1 Earnings Miss Estimates Despite Record Production
May 12, 2026
Petroleo Brasileiro S.A., or Petrobras PBR, reported first-quarter 2026 earnings per ADS of 70 cents, missing the Zacks Consensus Estimate of $1.02. The bottom line came up short as the company posted weaker-than-expected sales for the quarter. Petrobras posted revenues of $23,535 million, which missed the Zacks Consensus Estimate of $26,432 million (an 11% revenue miss).
However, Brazil's state-run energy giant’s EPS improved from the year-ago profit of 62 cents, while revenues increased 11.7% year over year. This was mainly because international sales jumped, more than offsetting a nearly flat domestic market.
Consolidated net income excluding one-off events (attributable to Petrobras shareholders) totaled $4,535 million in the first quarter of 2026 compared with $4,029 million in the year-ago quarter. Adjusted EBITDA excluding one-off events came in at $11,737 million, up from $10,652 million a year ago.
Management also highlighted continued cash generation, with operating cash flow of $8,399 million and free cash flow of $3,855 million in the first quarter. Petrobras said it paid R$ 72.4 billion in taxes across federal, state and municipal governments during the quarter and approved R$ 9 billion in shareholder remuneration related to the March-quarter results.
Petroleo Brasileiro S.A.- Petrobras Price, Consensus and EPS SurprisePetroleo Brasileiro S.A.- Petrobras Price, Consensus and EPS Surprise
Petroleo Brasileiro S.A.- Petrobras price-consensus-eps-surprise-chart | Petroleo Brasileiro S.A.- Petrobras Quote
Below is a closer look at Petrobras’ key business segments: Exploration & Production (E&P) and Refining, Transportation and Marketing (RTM), along with Gas and Low Carbon Energies (G&LCE).
Upstream (Exploration & Production)
In the first quarter of 2026, Petrobras’ average oil, NGL and natural gas production reached a record 3,225 thousand barrels of oil equivalent per day (MBOE/d). This represented a 3.7% increase from 3,109 MBOE/d in the previous quarter and a 16.1% rise from 2,778 MBOE/d in the year-ago period. The output gains were driven largely by the ramp-up of key FPSOs — including P-78 (Búzios), Alexandre de Gusmão (Mero), and Anna Nery and Anita Garibaldi (Marlim and Voador) — alongside improved operational efficiency and reduced losses from maintenance shutdowns. During the quarter, Petrobras also brought 10 new producing wells online (seven in the Campos Basin and three in the Santos Basin).
On the pricing front, the average Brent crude price climbed to $80.61 per barrel, up 6.5% year over year (and sharply higher sequentially). Against that backdrop, E&P segment revenues increased to $15,996 million in the quarter under discussion from $15,067 million a year earlier.
As far as profitability is concerned, the upstream unit recorded net income attributable to Petrobras shareholders of $4,845 million, slightly below the year-ago figure of $4,987 million. The segment’s adjusted EBITDA improved to $10,308 million from $9,965 million in the first quarter of 2025.
Brazil lifting cost was $6.76 per barrel of oil-equivalent in the first quarter of 2026, versus $6.79 a year ago (essentially flat year over year). Production taxes (Brazil) increased to $3,455 million from $2,800 million.
Story Continues
Downstream (Refining, Transportation and Marketing)
RTM segment revenues were $22,297 million in the period under consideration, up from $19,989 million in the first quarter of 2025. Profitability improved sharply, with net income attributable to Petrobras shareholders jumping to $2,300 million from $367 million a year ago and adjusted EBITDA rising to $3,848 million from $1,069 million.
The performance improvement was supported by stronger operating execution. Petrobras increased total production volume to 1,816 thousand barrels per day (Mbpd), up 6.5% from the first quarter of 2025, as refining utilization climbed to 95% from 90% in the prior-year quarter. Management noted that middle distillates (diesel and jet fuel) and gasoline accounted for 68% of total oil products output in the first quarter, and highlighted record S-10 diesel production in March (512 Mbpd). Higher production also helped lift sales of domestically produced products and reduce imports, supporting margins and overall segment results.
While domestic product sales were seasonally lower versus the fourth quarter of 2025 (a quarter that typically captures stronger end-of-year demand), Petrobras indicated that the operational gains and improved product slate helped drive the quarter’s stronger downstream financial outcome.
Petrobras reported Brazil refining cost of $3.28 per barrel compared with $2.62 in the corresponding period of 2025.
Gas and Low Carbon Energies
G&LCE delivered revenues of $2,205 million in the first quarter of 2026 versus $1,860 million in the year-ago period. Segment net income attributable to Petrobras shareholders was $120 million (compared with a loss of $28 million a year ago), and adjusted EBITDA increased to $334 million from $87 million.
The performance boost was underpinned by both gas and power dynamics. Petrobras reported that natural gas sales volume was up 15% from the first quarter of 2025, mainly due to higher gas supply to fertilizer plants following the start-up of units in Bahia and Sergipe. On the supply side, national gas deliveries increased as Petrobras experienced fewer scheduled and unscheduled maintenance stoppages, which contributed to lower imports from Bolivia and LNG. In power, electricity sales rose to 1,207 average MW from 606 in the first quarter of 2025, primarily to optimize the natural gas supply portfolio and meet steam demand from third parties.
Costs
On a consolidated basis, Petrobras reported operating expenses of $3,492 million in the quarter versus $3,112 million in the year-ago period (up 12.2% year over year). Sequentially, operating expenses were down significantly from $5,330 million in the fourth quarter of 2025.
Financial Position
For the first quarter of 2026, Petrobras reported total capital spending of $5,107 million. The Zacks Rank #1 (Strong Buy) company ended the quarter with cash and cash equivalents of $6,570 million.
You can see the complete list of today’s Zacks #1 Rank stocks here.
At quarter-end, net debt totaled $62,093 million, up from $56,034 million a year ago. Petrobras’ net debt to trailing 12-month EBITDA ratio was 1.43 compared with 1.45 a year ago. It was 1.42 at the end of the previous quarter.
Some Key Energy Earnings
While we have discussed PBR’s first-quarter results in detail, let’s see how some other energy companies have fared this earnings season.
Europe’s largest oil company, Shell plc SHEL, delivered a strong bottom line in the first quarter of 2026, helped by solid operational execution and higher contributions from trading and optimization. Earnings came in at $2.44 per ADS (on a current cost of supplies basis, excluding items), translating from adjusted earnings per share of $1.22, up 32.6% from the year-ago quarter’s 92 cents. Shell’s bottom line beat the Zacks Consensus Estimate of $1.78 by 37.1%.
However, total revenue and other income of $70.1 billion were essentially flat year over year and missed the consensus mark of $83.3 billion by 15.8%. Shell’s oil and gas production available for sale averaged 2,752 MBOE/d during the quarter.
Motor fuel retailer Murphy USA MUSA posted earnings of $7.28 per diluted share, up 176.8% from $2.63 a year ago and ahead of the Zacks Consensus Estimate of $5.37 by 35.6%. Total operating revenues rose 6.5% year over year to $4.8 billion and topped the consensus mark of $4.7 billion by 3.9%. Murphy USA’s results reflected a more favorable refined-products environment and solid execution, with total fuel contribution of 35 cents per gallon and total retail fuel volumes up 2.1% year over year.
Murphy USA ended the quarter with $118.6 million of cash and cash equivalents and $2.1 billion of long-term debt, with a debt-to-capitalization of 76.4%. Operating cash flow increased to $320 million from $128.5 million a year ago, aided by working capital dynamics.
Meanwhile, upstream operator Diamondback Energy FANG reported first-quarter 2026 adjusted earnings per share of $4.23, which beat the Zacks Consensus Estimate of $3.55, driven by strong production. However, the company’s bottom line declined from the year-ago adjusted profit of $4.54. The underperformance was due to a 91.5% drop in the year-over-year realized natural gas prices. Diamondback’s production of oil and natural gas averaged 979.4 MBOE/d, comprising 53.2% oil.
Diamondback Energy logged $933 million in capital expenditure — spending $784 million on operated drilling and completion additions to oil and natural gas properties, and $149 million on non-operated additions. The company booked $1.7 billion in adjusted free cash flow in the first quarter.
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This article originally published on Zacks Investment Research (zacks.com).
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- Fuel Shortages Could Hit This Summer and Oil Execs Say Recovery Is Months Away. 3 Stocks to Own While It Lasts.
May 12, 2026
Key Points
Shell and other energy companies are warning about the impact of the Middle East conflict. High oil prices and fuel shortages are good news for these three companies.10 stocks we like better than Diamondback Energy ›
The world is still highly reliant on oil and natural gas despite the global effort to go green. The geopolitical conflict in the Middle East has left the world short 1 billion barrels of oil, according to Shell(NYSE: SHEL) CEO Wael Sawan. And the CEO believes a recovery will take months. Both estimates are backed by other industry executives.
High energy prices look set to stay for a while. And, if the conflict drags on, it could get worse. This trio of energy stocks could benefit from the global fuel shortages.
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Image source: Getty Images.
Play the long game with Shell or its peers
Elevated energy prices will help all companies that produce oil and natural gas. Shell is an integrated energy giant, like ExxonMobil(NYSE: XOM) and Chevron(NYSE: CVX). So they all produce oil, transport it, and refine it. They will all benefit from high oil prices. Chevron, however, is probably the best option, as its 3.9% yield tops those of both Shell and Exxon. Plus, Chevron has increased its dividend annually for decades, showing it can navigate the entire energy cycle while continuing to reward investors. It is a relatively conservative way to play high oil prices, since long-term investors have to accept that energy prices will eventually fall.
Go direct, but out of the conflict region
A more direct beneficiary of high oil prices will be companies that only produce oil and natural gas, such as Diamondback Energy(NASDAQ: FANG) and Devon Energy(NYSE: DVN). As an added bonus, both of these upstream energy companies are U.S.-focused, so the conflict in the Middle East won't affect their production. Both companies estimate that $90 per barrel oil will support free cash flow yields of 15%, with Devon estimating that $110 oil will increase its yield to 21%.
The opportunity and risk with companies like Diamondback and Devon is that they tend to move more dramatically in response to energy prices than integrated energy giants do. They are both well-run upstream businesses that have proven that they can survive the industry's inherent swings. However, their stocks have already risen materially, each up about 25% so far in 2026 as of this writing, so there is material downside risk if energy prices decline. When the conflict in the Middle East ends, you'll want to be ready to act if you are simply looking for a short-term trade.
Energy markets are volatile by nature
The big takeaway is that the conflict in the Middle East is worrying, but it hasn't changed the basic nature of the energy sector. Volatility is the norm. If you want to lean into that volatility, U.S. producers like Diamondback and Devon are probably good choices. If you have a long-term approach, a more diversified industry giant like Chevron will likely be a better option.
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- Fuel Shortages Could Hit This Summer and Oil Execs Say Recovery Is Months Away. 3 Stocks to Own While It Lasts.
May 11, 2026 · fool.com
Shell and other energy companies are warning about the impact of the Middle East conflict. High oil prices and fuel shortages are good news for these three companies.
- A Look Back at U.S. Shale E&P Stocks’ Q1 Earnings: Permian Resources (NYSE:PR) Vs The Rest Of The Pack
May 11, 2026
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Permian Resources (NYSE:PR) and the best and worst performers in the U.S. shale E&P industry.
US shale oil producers extract crude from tight rock formations using horizontal drilling and hydraulic fracturing (fracking) techniques, primarily in basins like the Permian, Bakken, and Eagle Ford. Tailwinds include short-cycle investment flexibility allowing rapid production adjustments, technological improvements enhancing well productivity, and proximity to refining and export infrastructure. Capital discipline has improved financial returns. Headwinds include commodity price sensitivity affecting drilling economics, accelerating well decline rates requiring continuous capital investment, and increasing regulatory and ESG scrutiny. Water usage, induced seismicity concerns, and evolving environmental regulations present ongoing operational challenges.
The 11 U.S. shale E&P stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 2.7%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.6% since the latest earnings results.
Permian Resources (NYSE:PR)
Controlling roughly 450,000 net acres in America's most productive oil patch, Permian Resources (NYSE:PR) is an oil and natural gas producer that drills wells and extracts hydrocarbons from underground reservoirs in West Texas and New Mexico.
Permian Resources reported revenues of $1.39 billion, flat year on year. This print fell short of analysts’ expectations by 0.7%. Overall, it was a slower quarter for the company with a miss of analysts’ EBITDA estimates.Permian Resources Total Revenue
Unsurprisingly, the stock is down 5% since reporting and currently trades at $20.14.
Is now the time to buy Permian Resources? Access our full analysis of the earnings results here, it’s free.
Best Q1: Chord Energy (NASDAQ:CHRD)
Holding the largest acreage position in the Williston Basin, Chord Energy (NASDAQ:CHRD) drills for and produces crude oil, natural gas liquids, and natural gas in North Dakota's Williston Basin.
Chord Energy reported revenues of $1.67 billion, up 37.1% year on year, outperforming analysts’ expectations by 33.1%. The business had an exceptional quarter with a beat of analysts’ EPS and EBITDA estimates.Chord Energy Total Revenue
Chord Energy achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.3% since reporting. It currently trades at $138.35.
Story Continues
Is now the time to buy Chord Energy? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Texas Pacific Land (NYSE:TPL)
One of America's largest private landowners with roughly 868,000 acres in the Permian Basin, Texas Pacific Land (NYSE:TPL) owns land in West Texas and earns revenue from oil and gas royalties, water services, and land leases.
Texas Pacific Land reported revenues of $236.8 million, up 20.8% year on year, falling short of analysts’ expectations by 0.8%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 4.8% since the results and currently trades at $399.70.
Read our full analysis of Texas Pacific Land’s results here.
Diamondback Energy (NASDAQ:FANG)
Sporting one of Wall Street's most memorable ticker symbols, Diamondback Energy (NASDAQ:FANG) drills for and produces oil and natural gas from underground rock formations in the Permian Basin of West Texas and New Mexico.
Diamondback Energy reported revenues of $4.24 billion, up 4.7% year on year. This print topped analysts’ expectations by 10.5%. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The stock is down 9.8% since reporting and currently trades at $192.75.
Read our full, actionable report on Diamondback Energy here, it’s free.
Cactus (NYSE:WHD)
Named for the spiky wellhead equipment that reminded founders of desert cacti, Cactus (NYSE:WHD) manufactures wellheads, valves, and spoolable pipes used in drilling and producing oil and gas wells.
Cactus reported revenues of $388.3 million, up 38.5% year on year. This number surpassed analysts’ expectations by 2.3%. It was a very strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
The stock is up 2.7% since reporting and currently trades at $55.97.
Read our full, actionable report on Cactus here, it’s free.
Market Update
Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
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- Diamondback Energy Inc (FANG) Stock Up 4.0% but GF Value Says Overvalued -- GF Score: 75/100
May 11, 2026 · gurufocus.com
On May 11, 2026, Diamondback Energy Inc (FANG) shares rose 4.0% today, bringing the current price to $196.15. The stock has fluctuated within a 52-week range of
