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Canada Holds a Bright Future for Oil – Just Ask AOC

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Big companies dominate the sector with companies like BP (NYSE: BP), Chevron (NYSE:CVX), ExxonMobil (NYSE:XOM), and Royal Dutch Shell (NYSE:RDS-A) (NYSE:RDS-B). The fundamental landscape of the Canadian oil and gas sector has undergone significant changes during the last five years. And now there are very positive signs that serve as good evidence of the continued commitment to high environmental standards and focus to sustainability. Moreover, case studies show the adaptability and resilience of the Canadian oil and gas sector to this landscape that has changed dramatically over a very short period of time. Moreover, according to Deloitte Canada, Canadian crude oil prices are expected to strengthen and natural gas prices are expected to continue to improve in 2020 and even more than during 2019.

AOC is putting all its eggs into one basked- yes, you guessed it. In Canada!

Advantagewon Oil Corp., (OTC:ANTGF) has identified numerous opportunities in Canada over the course of the last six months. And they have just announced the company has sold all of its remaining US assets to Emerald Bay Energy Inc., (OTC:EMBYF). The assets mainly comprise of 30 oil and gas leases currently producing approximately 15 bbs/day of oil. The company has received both a cash payment of Fifty Thousand Dollars (“50,000.00”) CDN and the Corporation Sixty Million (“60,000,000”) common shares of EBY which are valued at Three Hundred Thousand Dollars (“$300,000.00”) CDN. But going into further details of the deal, these shares will be held in trust by the Corporation’s assignee until the last day of the year at which point, or prior to the deadline, EBY will purchase them back for a pre-set price of $300,000.00 USD.

Moreover, if EBY would choose not to purchase back the shares it issued, all of the 60,000,000 Common Shares will then be returned to EBY’s treasury and a Royalty Structure will be formed to debut on Jan 1st, 2021. This royalty structure will pay the Corporation a maximum of Four Hundred Thousand Dollars (“$400,000.00”) USD and once the Corporation has received the $400,000.00 USD from EBY, the royalty interests will revert fully to EBY.  Additionally, the Corporation will also receive the return of Two Hundred and Fifty Thousand Dollars (“$250,000.00”) USD from the Railroad Commission of Texas. Namely, this is due to a bond the Corporation had to post to the Commission as otherwise it could not commence operations in the State of Texas.

The Corporation intends on using the funds it will receive from the Railroad Commission of Texas to secure another Canadian based well and for general working capital purposes. On the beginning of the month, the company already announced it is expanding and advancing its Canadian operations by entering into an agreement whereby it acquired a working rights interest to a former operating well that has a historic production record of between 20 and 30 Barrels of Oil Per Day (“BOPD”). Along with this agreement, the company is also committed to funding and implementing a workover program with the purpose of recommissioning the well that it is acquiring. Once this initiative is complete and the well is both recommissioned and restored, the company’s working interest becomes the entire pie, 100 percent to be exact.

Why is AOC different?

When it comes to the oil industry, the majority of your business models exploit the resource and then run away. And in today’s world that is putting an emphasis on sustainability as we only have one planet to live in, this is nothing more than a poor business model. And no company should be drilling those wells if they don’t have the financial capacity to take care of the obligations they themselves created. For that reason, Canada’s Supreme Court ruled last year that insolvent or bankrupt companies must clean up their wells before paying back creditors.  It is really no different than kids playing with their toys and ­going and starting something else without cleaning up what said they’ve already made a mess of. But not AOC.

During 2019, Advantage achieved several important milestones in its focused transition phase, as demonstrated by its results that met expectations.  These achievements have positioned the Corporation for a step change in oil and condensate production in 2020, enhancing the company’s portfolio of investment opportunities while preserving its low-cost and low-risk business model. It is thanks to its expertise that the company is continuously building consistent cash flow from low cost and low risk oil wells. And after its uniquely enhanced recovery strategy is successfully applied, AOC will repeat the process throughout the oil pool to maximize output and minimize cost and risk. So it sure seems it has made all the right preparations for a good year ahead, in Canada!

US sector is eyeing new legislative sanctions regarding climate change

The oil and gas sector contributes to around $1.5 trillion to the US gross domestic product, employing about 880,000 workers. But the most important fact is that the US recently moved from being a net importer of oil and petroleum products and natural gas to a net exporter as a part of a global seismic shift in world oil and gas markets. Unfortunately, this also triggered the fact more than half of US greenhouse emissions. In 2017, a study found that only 100 companies were responsible for 70% of greenhouse emissions, we can only imagine how far this number has gone. Oil companies are forced to take actions regarding climate change but legislation, if stricter, will surely make them do it more quickly. This is also creating a problem for recruitment as more and more young people are willing to make a positive difference and for that reason shift away from the oil and gas industry due to poor practices. It is no secret the legacy of old and idle oil wells are California’s toxic multibillion dollar problem potentially threatening the health of all those nearby and handing over taxpayers quite a clean-up.

But for now, the giants are managing to stay well above water despite quite heavy industry headwinds. Exxon Mobil (NYSE:COM) shares have lagged behind their peers lately but its optimal integrated capital structure and status in the energy space have helped it come up with industry leading returns. Although the company’s chemical business underperformed with significantly lower than expected returns, it still owns some of the most prolific upstream assets globally. America’s second energy company’s, Chevron (NYSE:CVX), shares have also struggled lately along with other energy stocks but they still did better than their peers as a whole. But Chevron at least earned a status as one of the most suitable globally to achieve a sustainable production ramp-up as its existing project pipeline is the among the best in the industry. And they managed to achieve a 40% reduction in expenses since 2014. But by the looks of it, making oil companies more responsible for their footprint with stricter legislation can do quite a bit of harm to both of their upper and bottom lines.

Outlook

Canadian oil and gas companies are adapting to the new landscape as they are forced to focus on being leaner and becoming more efficient by adopting new technologies and ways of designing, structuring and operating projects, all while reducing greenhouse gas emissions in support of environmental sustainability. In April last year, report entitled ‘Four Years of Change’ came out by business information provider IHS Markit, showing that between 2014 and 2018, operating costs fell by more than 40 percent on average with reliability improving even up to 50 percent in some cases, and the price of oil required to cover the costs and earn a return on investment on a non-mining oil sands project was reduced from approximately US$65/bbl to the mid US$40/bbl. So, it seems that Canada might indeed be the new promised land for oil companies. And AOC is already one step ahead by adopting this awareness perspective that is clear from its strategy and consequent efforts.

This article is contributed by IAMNewswire.com. It was written by an independently verified journalist and is not a press release. It should not be construed as investment advice.

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BenzingaEditorial

Moderna Misses Expectations But Things Are More Than Fine

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Moderna (NASDAQ: MRNA) saw its stock jump on Thursday despite growing losses, after the Covid-19 vaccine-maker reported more than double the revenue Wall Street predicted. Moderna missed EPS expectations with revenue far surpassing analyst forecasts as the company first began to recognize revenue from sales of its COVID-19 vaccine in December 2020. The loss was simply a result of heavy investment to increase production of its COVID-19 vaccine.

The company has spent the past two months producing and shipping its much-awaited coronavirus vaccine but its fourth-quarter is merely the surface of its vaccine success. In 2021, Moderna plans to manufacture 600-700 million doses of its COVID-19 vaccine but it should be able to expand its capacity to 1.4 billion doses in 2022 due to heavy capital investments, all of which should result in massive profits.

Q4 and FY 2020

For the fourth quarter ended December 31s, quarterly loss of $0.69 per share was below Zacks Consensus Estimate of $0.25 but Moderna brought in $570.75 billion in sales. That crushed the average estimate of analysts surveyed by FactSet for $279.4 million andsurpassing the Zacks Consensus Estimate by 74.76%. Just one year ago, revenues amounted to $14.06 million but until its mRNA-1273 coronavirus vaccine, the company had never brought an approved medicine to the market.

Losses grew to 69 cents per share after a 37-cent per-share loss in the year-ago period, whereas analysts expected a 34-cent loss. Although a big portion of revenue still came from the grant received from the Biomedical Advanced Research and Development Authority to advance its Covid vaccine, for the first time,Moderna had product sales, and they amounted to $199.87 million as the company began recognizing Covid vaccine sales in December. Although losses widened in 2020, Moderna’s sales skyrocket to $803.4 million.

Possible threat

One of the biggest risks ahead for all vaccine makers is the prevalence of new coronavirus variants. To tackle this, Moderna is investigating two upgrades. The first is actually a third dose of vaccine that would increase neutralizing antibody levels to better fend off new strains. The second is a strain-specific upgraded version which has been moved into preclinical and phase 1 trials as of end of January. Moderna is designing it to target the. If successful, the company should be able to quickly adapt it to protect against future strainsalthough it is designed to target the South African variation.

Teenagers

In early December, Moderna began a phase 2/3 trial of its covid vaccine in young adults who are 12 to 17years old. The data will be reported in spring and should result in Emergency Use Authorization just in time for the back-to-school period in September. But as of last month, Moderna didn’t have enough adolescent volunteers.

Teens aren’t at the greatest risk from serious COVID-19 complications but they play a role in the transmission of the virus, so their vaccination is another  important element in containing the pandemic.

2021

The company expects $18.4 billion in full-year 2021 sales of its Covid vaccine. The figure is based on already inked advance purchase agreements but additional discussions are ongoing for both 2021 and 2022. That outlook shattered forecasts as analysts expected $11 billion. Furthermore, the company said it plans to make 700 million doses of its vaccine this year, while still working to bring that capacity up to 1 billion. In 2022, Moderna expects be able to produce 1.4 billion doses.

Chief Executive Stephane Bancel called 2020 a historic year for the company as it trailed Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX) by a week in the U.S by gaining emergency use authorization. The vaccine is Moderna’s first commercial product with 32 million doses having been administered in the U.S. to millions of people around the world.

In 2020, Moderna went from knowing mRNA vaccines can be highly efficient it went to cash-flow generating commercial company that is helping save the world form the claws of an invisible enemy. The latest reported quarter ended a milestone year for the biotech company. 2020 was a year in which the world went dark but the pandemic helped Moderna shine as it provided us with a glimpse of light at the end of the tunnel. Since the beginning of 2021, its shares gained 38.6%, greatly exceeding S&P 500’s gain of 4.5%.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Li Did Good But Not Good Enough

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Li Auto Inc (NASDAQ: LI) earnings were good but guidance wasn’t good enough as Chinese electric-vehicle maker reported solid fourth-quarter numbers Thursday. Despite producing a surprise profit, stock reversed and Li wasn’t the only one. Nio Limited (NYSE) who is due to report Monday fell 9.7% and Xpeng Inc (NYSE: XPEV) lost 8.55% Thursday. Tesla (NASDAQ: TSLA) gave up 8.1%. Earlier this week, Texas-based Hyliion (Holdings Corporation (NYSE: HYLN), which makes EV powertrains for commercial fleets, reported a loss of 13 cents a share in the fourth quarter.

Figures

The results were a little confusing, but good as Li reported $636 million in sales as revenue jumped 39%, exceeding $604 million that analysts projected in sales. The company reported a loss from operations but a positive net income. Still, the loss from operations was about $12 million which is smaller than expected. Li Auto earnings came in at 2 cents a share whereas analysts expected a loss of 4 cents on a revenue of $565.5 million. The company also generated positive free cash flow. Investors like it when young companies demonstrate the ability to be self-funding by generating the cash they need to grow from their own operations.

Throughout the quarter, Li delivered 14,464 of its Li One SUV, its only vehicle in production which is technically a hybrid because it has a small gas engine to extend its range. This is 67% more than third quarter’s 8,660 with the total for 2020 being approximately 32,624 deliveries Its rival Nio (NYSE: NIO) sold 17,353 units in Q4 and 43,728 for the year, while Xpeng (NYSE: XPEV) sold 12,964 in Q4 and 27,041 for the year. What enabled Li to deliver a bottom-line profit from an operating loss is the required accounting of securities.

Outlook

Management expects first quarter revenue to come in the range of $450.6 million to $493.5 million. This range would represents a growth between 246% and 279% compared to previous fiscal year’s quarter. Deliveries are expected to be in the range between 10,500 and 11,500 vehicles, up 263%-297% compared to the same quarter last year but less than the fourth quarter which will make reaching analyst projections for 2021 sales projections more challenging. The company reported that January deliveries soared 356% YoY to 5,379 but that is below December 2020’s 6,126.

As the automotive industry is undergoing a once-in-a-century shift to smart EVs, the fourth quarter ended a big year for Li that grew significantly due to strong demand for its distinctive product offering and superior user experience. Government’s support for EVs also doesn’t hurt as to encourage adoption, not only are license plates guaranteed but they are also free.

The earnings provided a sigh of relief for investors as Li stock has had a rocky ride lately. As of Wednesday’s close, shares were down about 11% month to date.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Baidu Is Determined To Show It Has More to Offer

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For two decades, the 21-year-old company has been viewed as an online marketing tool that sells ads through its web search results. But now, the internet company is ready to show it has much more to offer. Last week, it reported fourth quarter earnings for 2020 that beat market expectations and revealed its ambitious plans to enter the EV land. Many years of investing in AI has finally started to pay off as Baidu is finally monetizing the technology used with smart devices. Company’s investments in non-core businesses iarealso helping it defend its core search platform from rivals Alibaba (NYSE: BABA), Tencent Holdings (OTC: TCEHY) and privately-ownedByteDance, whose products are just as popular.

The Chinese tech giant has recovered from the worst impact that the pandemic had on its business as advertising rebounded. Moreover, non-marketing revenue which excludes advertising and includes its cloud and autonomous driving business, grew 52% YoY. Baidu is also tapping into capital markets, including a potential second listing in Hong Kong. Baidu beefs up its autonomous and smart transport technology to tainto the EV market as it revealed back in January it would set up a smart electric vehicle (EV) company with Geely.

As the domestic economy recovers, the company want to tap into into the fast-growing electric-vehicle market to diversify revenue sources.

Figures

Full year revenue for 2020 amounted to $16.4 billion which is flat compared to 2019. Adjusted earnings of $3.08 per share versus analyst estimates of $2.79 per share came after revenues of $4.6 billion versus analyst estimates of $4.7 billion, according to FactSet.

The company provided guidance for the undergoing quarter that was ahead of analyst estimates. Revenue is expected to be in the $4.0 billion and $4.4 billion, representing a growth rate of 15% to 26% YoY, but it does not include potential contribution from its acquisition of live streaming app YY Live. The acquisition was announced last November and is expected to close in the first half of the year. The guidance is also based on the assumption that its core revenue will grow between 26% and 39% on a YoY basis.

EVs

Baidu places a lot of emphasis on its Apollo self-driving technology. Last month, the company formed a strategic partnership with the Chinese car company Zhejiang Geely Holding Group to create a standalone electric car company. Baidu is the majority shareholder. Together, they aim to launch a smart EV model inthree years. Robin Li, Baidu’s CEO Li also said a brand name has been chosen but did not release it.

CNBC has confirmed Xia Yiping, co-founder of bike-sharing start-up Mobike, will be the CEO of the new entity. Xia previously worked at Fiat Chrysler (NYSE: FCAU) and Ford before co-founding a company that was part of China’s boom and eventual bust in shared bike start-ups.

Even Xiaomi is following Baidu’s EV footsteps as the Chinese search engine leader has been basking in newfound investor love as the next EV-maker wannabe. Unlike other EV makers, Baidu’s strategy is akin to Google’s (NASDAQ: GOOGL) (NASDAQ: GOOG) Android for smartphones.

Outlook

Baidu ended an unprecedented year on a solid note and showed it is recovering from the consequences of the global health crisis as its business benefited from an improving macroeconomic environment and the digitalization of businesses and lifestyles. Its commitment on innovation through technology is paying off for the Chinese tech giant. Baidu is well positioned as a leading AI company with a strong foundation to seize the enormous market opportunities in cloud services, autonomous driving, smart transportation, along with all kinds of new opportunities that AI will inevitably bring to the table. The online marketing company chose to be in the right place, at the right time.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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