Kinder Morgan (KMI)
Kinder Morgan continues to talk about the future large increase in US natural gas demand from LNG exports and power generation due to AI demand centers. The company expects to see 25 Bcf/d of new natural gas demand from LNG exports and power generation from new AI demand centers over the next 6-8 years. Construction activities are ongoing for Tejas Pipeline’s South Texas to Houston Market expansion project. The project will add compression to Tejas’ mainline, with a target in-service date in the first quarter of 2025. Construction is also ongoing for the second phase of the Evangeline Pass project, which has an expected in-service date of July 1, 2025. The two-phase project involves modifications and enhancements to portions of the TGP and Southern Natural Gas systems in Mississippi and Louisiana, resulting in the delivery of approximately 2 Bcf/d of natural gas to the Plaquemines LNG facility.
Liberty Energy (LBRT)
Liberty Energy reached new heights in efficiencies and pumped more hours in Q3 2024 than ever before despite a slump in fracing activity. The current slump in the fracing industry has caused some smaller fracing companies to fall into insolvency. The company is also looking to convert 90% of their frac fleet to electricity from diesel by the end of 2025. During Q4 2024, Liberty Energy believes we are seeing a low in fracing activity in the Lower 48, especially since rig count activity has bottomed. The company expects to see a low double-digit percentage reduction in Q4 activity. Completions activity is likely to increase in early 2025 to support production. This is a significant change from last quarter when Liberty Energy was expecting a rebound in fracing activity in Q4 2024.
Schlumberger (SLB)
SLB’s North American revenue increased 3% sequentially due to strong sales of production systems in the U.S. Gulf of Mexico and higher drilling in Canada, partially offset by lower drilling revenue in the Lower 48. Although some of SLB’s customers have adopted a more cautious approach to their near-term capital expenditures and discretionary spending due to lower commodity prices, most projects are progressing as planned. The company still expects a sustained level of upstream investment in the years to come.