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Shell (SHEL) cuts production forecast for LNG, warns weaker Q4. (00:22) Goodyear (GT) to sell Dunlop brand to Sumitomo Rubber in $701M deal. (01:33) Delta (DAL) to link SkyMiles program to Uber, ending Lyft partnership. (02:26)
This is an abridged transcript of the podcast.
Shell (NYSE:SHEL) is down 2% in premarket action after trimming its Q4 forecast.
Shell reduced its LNG production forecast to between 6.8 and 7.2 million metric tons, down from a previous estimate of 6.9 to 7.5 million metric tons, and lower than Q3’s 7.5 million metric tons. It sighted lower feedgas deliveries and fewer cargo shipments.
Integrated gas production is expected to be between 880 and 920 kboe/d (thousand barrels of oil equivalent per day), lower than Q3’s figure of 941kboe/d, citing scheduled maintenance at Pearl GTL in Qatar during the quarter.
Shell (SHEL) anticipates that its oil and gas trading results will be lower than last quarter mainly due to the non-cash expiry of hedging contracts, which has adversely affected trading outcomes in both the LNG and chemicals divisions.
The world’s largest LNG trader (SHEL) is set to post its Q4 results on Thursday, January 30. Check the company’s historical quarterly earnings surprise/miss here.
Shares are trading 1.5% lower in London.
Goodyear Tire & Rubber (NASDAQ:GT) said Tuesday it agreed to sell its Dunlop tire brand to Japan’s Sumitomo Rubber Industries for $701M in cash.
Under the deal terms, Goodyear (GT) said it will continue to manufacture, sell and distribute Dunlop branded consumer tires in Europe through at least year-end 2025; Goodyear will pay a royalty to Sumitomo during the period on Dunlop sales but otherwise will retain all profits from the sales.
Goodyear (GT) also will license back the Dunlop trademarks from Sumitomo for use on commercial (truck) tires, while retaining its rights to the Dunlop trademarks for use on motorcycle tires in Europe and Oceania.
The company said the sale follows its previously announced strategic review of the brand in connection with the Goodyear Forward transformation plan.
Delta Air Lines (NYSE:DAL) will link its frequent-flyer program SkyMiles with Uber (NYSE:UBER) this spring, as the airline will end its existing partnership with Lyft (NASDAQ:LYFT) in April.
Under the new partnership, SkyMiles members can earn 1 mile per dollar spent on Uber Eats orders, 1 mile per dollar spent on UberX airports rides, 2 miles per dollar spent on premium Uber rides, and 3 miles per dollar spent on Uber Reserve trips.
“And since 15% of all Uber ride bookings either begin or end at an airport, we know Uber customers will be racking up miles with Delta at the tap of a button,” the rideshare company’s CEO Dara Khosrowshahi said in a statement.
Customers can continue earning miles via Lyft (NASDAQ:LYFT) rides through April 7.
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Catalyst watch:
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The IPO lockup period expires for blocks of shares of Icon Energy (ICON).
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Seeking Alpha’s Top Stocks 2025 Investing Forum will include high-conviction stock picks from Steven Cress, SA’s VP of Quantitative Strategy, as well as Investing Group leaders J Mintzmyer (Value Investor’s Edge), Samuel Smith (High Yield Investor), and Alex King (Growth Investor Pro). The forum kicks off at noon. I’ll be speaking with J Mintzmyer about shipping at 1:30pm. There’s still time to register at Seeking Alpha.
Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in the green. Crude oil is up 0.5% at $74/barrel. Bitcoin is down 5.6% at $95,000.
In the world markets, the FTSE 100 is up 0.2% and the DAX is up 0.4%.
The biggest movers for the day premarket: Cal-Maine Foods (NASDAQ:CALM) shares rose over 4% after the company reported better-than-expected FQ2 results, driven by higher egg prices, strong holiday-season demand, a 12.8% reduction in feed costs, and an 8.5% decrease in production expenses.
On today’s economic calendar:
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8:15 am ADP Jobs Report
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2:00 pm FOMC Minutes
And a programming note for tomorrow, Thursday, January 9th. There will be no Wall Street Breakfast podcast because the U.S. stock markets will be closed to honor former President Jimmy Carter. The bond market will close at 2pm on Thursday. So, I’ll see you again on Friday.
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