The energy sector performed exceptionally well in Q2 2021 with 112.8% YoY revenue growth, almost three times more than the growth of the materials sector, ranked second. Oil and gas operators have been impressive, especially Chevron (NYSE: CVX), ExxonMobil (NYSE: XOM), TotalEnergies (NYSE: TTE), and Shell (NYSE: RDS.A), all of which reported profits after a dismal show last year.
Clean energy firms reported mixed Q2 results
Surprisingly, clean energy companies’ earnings were a mixed bag despite top solar firms Enphase Energy Inc. (NASDAQ: ENPH) and First Solar (NASDAQ: FSLR) topping Wall Street estimates. This comes following President Joe Biden’s executive order to make 50% of new cars sold by 2030 electric as part of the first against climate change.
Detroit-based leading automakers Ford (NYSE: F), General Motors (NYSE: GM), and Stellantis N.V. (NYSE: STLA) have declared their support for the ambitions. The companies committed to achieving 40-50% annual sales volumes of electric cars by 2030 in the US.
Lordstown to lease factory space
Electric truck startup Lordstown Motors is planning to loan space at a former GM factory to produce its Endurance pickup truck. The company’s Interim CEO, Angela Strand, stated that they are in discussions with potential partners that can build vehicles or do any other work at the factory, implying that Lordstown Motors will operate like WeWork.
Strand said, “This is a critical strategic pivot for us, a decision that we believe will lead to significant new revenue opportunities for Lordstown at the same time as production of the Endurance is ramping up.”
EnCap to buy EP Energy
EnCap Investment has entered an agreement to buy EP Energy for around $1.5 billion. The deal comes barely a year after the emergence of the energy company from bankruptcy that had given creditors control. EnCap will split EP into various regions and then merge them with current portfolio companies, according to people familiar with the matter.
EP’s Uinta Basin assets in Utah will merge with XCL Resources, and the Eagle Ford assets in Texas will merge with an EnCap firm having acreage in the region.