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Kenney vows new law to protect ‘critical infrastructure’

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Politicians, environmentalists and Metis leaders were among those reacting to the bombshell news Sunday night that mining giant Teck Resources was withdrawing its application for a $20-billion oilsands mine.

That included Alberta Premier Jason Kenney, who said on Monday that his government would introduce legislation to protect what he calls “critical infrastructure” in the province, including railways.

Bill 1 would enact “new stiff penalties for anyone who riots on or who tries to impair critical infrastructure in the province of Alberta,” he said.

“The government of Alberta is prepared to do whatever it takes to ensure our economic future, including a future of natural resource development. We will not back down.”

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Kenney also said that while his government believes in free market solutions, it would look at ways to directly invest in the energy sector due to “existential threats.”

He did not provide details.

“We will, as a government, be assessing in which ways we may need to ensure future investment in the Canadian energy sector to ensure an economic future for this province. There will be news in that sense to come.”

The Teck Frontier mine had become a focal point of national debate around climate change and the economy, and its chief executive cited that nexus as one of the reasons the company was stepping aside.

Don Lindsay wrote in a letter to Canada’s environment minister that he hoped stepping away from Frontier would help Canada have a much-needed conversation.

He reiterated that sentiment Monday morning at an investors conference in Florida and said it became clear in the “past few days” that there was no clear path forward for the project.

Lindsay also pointed to the blockades that have sprung up across the country, jamming national rail networks in protest against a natural gas pipeline in B.C., as having a significant impact on the company.

“As a result of these illegal blockades, there has been some deep concern expressed across the country, in particular with relation to the safety of railway employees, to the safety of the public and the protesters and the effects they’re having on the Canadian economy and individual Canadians,” said Lindsay.

“As Canada’s largest railway shipper, the blockades have had a significant impact on our steelmaking coal business. Together with the severe weather in January, the blockades have reduced our steelmaking coal shipments by over one million tons in the first quarter of 2020.”

 

Teck’s Frontier oilsands project was planned for northern Alberta. The company pulled its application for the project on Sunday. (CBC News)

 

He told the investors’ conference that Teck has no timeline for a possible resubmission of the project for approval and will focus on its priority projects, including a copper mine in Chile.

A portion of his presentation also focused on the company’s plans to be carbon neutral by 2050, in alignment with the goals of the federal government.

“Teck has set out an initial roadmap to achieve carbon neutrality by first avoiding emissions and then eliminating or minimizing emissions,” read one of Lindsay’s presentation slides.

Frontier becomes flashpoint

Frontier was recently thrust into the role as both saviour of the Alberta economy and death knell of Canada’s climate action, depending on who was doing the talking.

A group of Conservative MPs even linked its approval to Alberta’s willingness to stay in confederation as part of their Buffalo Declaration.

That view was echoed by Kenney on Sunday night.

“The factors that led to today’s decision further weaken national unity.… We did our part, but the federal government’s inability to convey a clear or unified position let us, and Teck, down,” Kenney said.

Kenney was scheduled to hold a press conference at 2 p.m. MT (4 p.m. ET) today to address the withdrawal and an anticipated ruling from the Alberta Court of Appeal on the province’s challenge to the federal carbon tax.

At the federal level, outgoing Conservative Leader Andrew Scheer accused Prime Minister Justin Trudeau of driving away investment due to his “weakness and fear” in dealing with opponents of oilsands development.

Trudeau, for his part, said Teck’s decision and the reasoning behind it show support for the actions of his government.

“Teck said clearly we support strong actions to enable the transition to a low carbon future,” said Trudeau in question period on Monday. “Teck is also a strong supporter of Canada’s action on climate pricing and other climate policies such as legislated caps on oilsands emissions.

“It is the Conservative Party polarizing the debate on climate change that is putting our economy at risk.”

Notley urges Kenney to ‘step up’

In Alberta, NDP Leader Rachel Notley blamed Kenney for making the project a “political football” and said his aggressive approach to supporting the province’s oil and gas sector is to blame for the end of Frontier.

“My message to the premier is this: yelling at other people does not create jobs, except maybe for Tom Olsen,” she said, taking a shot at the chief executive officer of the Canadian Energy Centre.

“In this case, it cost us jobs, at least 7,000. Albertans cannot afford more of this. Step up before our province gets left behind.”

She said international investors are looking for strong climate strategies that offer clarity to industry.

One of the groups impacted by the death of the project is the Fort McKay Métis, which stood to reap economic rewards and employment from the mine. It supported Teck’s application.

Fort McKay reaction

Ron Quintal, president of the Fort McKay Métis, said he was shocked when an executive vice-president of Teck called him to alert him to the news.

Teck Resources has withdrawn the application for its new Frontier oilsands mine. The federal government was supposed to decide on the $20-billion project this week.  2:42

“I had anticipated that perhaps the phone call was to meet in Ottawa ahead of the decision,” he said.

He’s not sure what’s next for his group, and said they’re in “damage control mode.” He acknowledged that even if Teck resubmitted the project, it could be years before anything came of it.

“I think that there needs to be some work around policy, there needs to be some work with the federal and provincial governments to try to find a different path forward in terms of how we get our energy to market,” said Quintal.

“And from my perspective, we’re not cutting the mustard at this point and something’s got to give.”

‘Market-based decision’

Environmentalists, meanwhile, were applauding the death of the project as a win for climate change efforts.

Julia Levin, climate and energy program manager with Environmental Defence, said the decision is the inevitable result of a shift away from fossil fuels.

“This was a market-based decision. Teck couldn’t find financial partners willing to take on a high-cost, high-emission, long-duration oilsands mine, because markets are realizing that projects like the Frontier mine are high-risk and uneconomical,” she said in an emailed statement.

“This project only offered a false promise to workers in Alberta concerned about their futures — especially in a world moving away from oil. Now is the time to invest in projects that provide jobs and create clean energy and clean growth.”

The Alberta Chamber of Commerce said the loss of the project will hurt an already fragile provincial economy.

“If approved, the Frontier project would have generated 7,000 jobs and $70 billion in tax and royalty revenue, providing a significant boost to our provincial and national economies,” said a statement from the organization.

“This was an example of a project done responsibly, which was demonstrated by the strong support of all 14 nearby First Nations.”

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Dow Jones Rises But S&P, Nasdaq Fall; Nvidia, SMCI Flash Sell Signals As Bitcoin's Fourth Halving Arrives – Investor's Business Daily

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[unable to retrieve full-text content]

  1. Dow Jones Rises But S&P, Nasdaq Fall; Nvidia, SMCI Flash Sell Signals As Bitcoin’s Fourth Halving Arrives  Investor’s Business Daily
  2. Iran fires at apparent Israeli attack drones: Mideast tensions  The Associated Press
  3. S&P 500 extends losing streak to sixth day, Dow up 210 points  Yahoo Canada Finance
  4. Stock Market Today: Dow, S&P Live Updates for April 19  Bloomberg
  5. Stock market today: Wall Street limps toward its longest weekly losing streak since September  CityNews Kitchener

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Netflix stock sinks on disappointing revenue forecast, move to scrap membership metrics – Yahoo Canada Finance

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Netflix (NFLX) stock slid as much as 9.6% Friday after the company gave a second quarter revenue forecast that missed estimates and announced it would stop reporting quarterly subscriber metrics closely watched by Wall Street.

On Thursday, Netflix guided to second quarter revenue of $9.49 billion, a miss compared to consensus estimates of $9.51 billion.

The company said it will stop reporting quarterly membership numbers starting next year, along with average revenue per member, or ARM.

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“As we’ve evolved our pricing and plans from a single to multiple tiers with different price points depending on the country, each incremental paid membership has a very different business impact,” the company said.

Netflix reported first quarter earnings that beat across the board on Thursday, with another 9 million-plus subscribers added in the quarter.

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Subscriber additions of 9.3 million beat expectations of 4.8 million and followed the 13 million net additions the streamer added in the fourth quarter. The company added 1.7 million paying users in Q1 2023.

Revenue beat Bloomberg consensus estimates of $9.27 billion to hit $9.37 billion in the quarter, an increase of 14.8% compared to the same period last year as the streamer leaned on revenue initiatives like its crackdown on password-sharing and ad-supported tier, in addition to the recent price hikes on certain subscription plans.

Netflix’s stock has been on a tear in recent months, with shares currently trading near the high end of its 52-week range. Wall Street analysts had warned that high expectations heading into the print could serve as an inherent risk to the stock price.

Earnings per share (EPS) beat estimates in the quarter, with the company reporting EPS of $5.28, well above consensus expectations of $4.52 and nearly double the $2.88 EPS figure it reported in the year-ago period. Netflix guided to second quarter EPS of $4.68, ahead of consensus calls for $4.54.

Profitability metrics also came in strong, with operating margins sitting at 28.1% for the first quarter compared to 21% in the same period last year.

The company previously guided to full-year 2024 operating margins of 24% after the metric grew to 21% from 18% in 2023. Netflix expects margins to tick down slightly in Q2 to 26.6%.

Free cash flow came in at $2.14 billion in the quarter, above consensus calls of $1.9 billion.

Meanwhile, ARM ticked up 1% year over year — matching the fourth quarter results. Wall Street analysts expect ARM to pick up later this year as both the ad-tier impact and price hike effects take hold.

On the ads front, ad-tier memberships increased 65% quarter over quarter after rising nearly 70% sequentially in Q3 2023 and Q4 2023. The ads plan now accounts for over 40% of all Netflix sign-ups in the markets it’s offered in.

FILE PHOTO: Netflix reported first quarter earnings after the bell on Thursday. REUTERS/Dado Ruvic/File PhotoFILE PHOTO: Netflix reported first quarter earnings after the bell on Thursday. REUTERS/Dado Ruvic/File Photo

Netflix reported first quarter earnings after the bell on Thursday. REUTERS/Dado Ruvic/File Photo (REUTERS / Reuters)

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here

Read the latest financial and business news from Yahoo Finance

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Oil Prices Erase Gains as Iran Downplays Reports of Israeli Missile Attack – OilPrice.com

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Oil Prices Erase Gains as Iran Downplays Reports of Israeli Missile Attack | OilPrice.com



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Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

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  • Oil prices initially spiked on Friday due to unconfirmed reports of an Israeli missile strike on Iran.
  • Prices briefly reached above $90 per barrel before falling back as Iran denied the attack.
  • Iranian media reported activating their air defense systems, not an Israeli strike.

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Oil prices gave up nearly all of early Friday’s gains after an Iranian official told Reuters that there hadn’t been a missile attack against Iran.

Oil surged by as much as $3 per barrel in Asian trade early on Friday after a U.S. official told ABC News today that Israel launched missile strikes against Iran in the early morning hours today. After briefly spiking to above $90 per barrel early on Friday in Asian trade, Brent fell back to $87.10 per barrel in the morning in Europe.

The news was later confirmed by Iranian media, which said the country’s air defense system took down three drones over the city of Isfahan, according to Al Jazeera. Flights to three cities including Tehran and Isfahan were suspended, Iranian media also reported.

Israel’s retaliation for Iran’s missile strikes last week was seen by most as a guarantee of escalation of the Middle East conflict since Iran had warned Tel Aviv that if it retaliates, so will Tehran in its turn and that retaliation would be on a greater scale than the missile strikes from last week. These developments were naturally seen as strongly bullish for oil prices.

However, hours after unconfirmed reports of an Israeli attack first emerged, Reuters quoted an Iranian official as saying that there was no missile strike carried out against Iran. The explosions that were heard in the large Iranian city of Isfahan were the result of the activation of the air defense systems of Iran, the official told Reuters.

Overall, Iran appears to downplay the event, with most official comments and news reports not mentioning Israel, Reuters notes.

The International Atomic Energy Agency (IAEA) said that “there is no damage to Iran’s nuclear sites,” confirming Iranian reports on the matter.

The Isfahan province is home to Iran’s nuclear site for uranium enrichment.

“Brent briefly soared back above $90 before reversing lower after Iranian media downplayed a retaliatory strike by Israel,” Saxo Bank said in a Friday note.

The $5 a barrel trading range in oil prices over the past week has been driven by traders attempting to “quantify the level of risk premium needed to reflect heightened tensions but with no impact on supply,” the bank said, adding “Expect prices to bid ahead of the weekend.”

At the time of writing Brent was trading at $87.34 and WTI at $83.14.

By Tsvetana Paraskova for Oilprice.com

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