$SLI

Sector Update: Energy Stocks Rise Tuesday Afternoon

Energy stocks were higher Tuesday afternoon, with the NYSE Energy Sector Index rising 0.7% and the State Street Energy Select Sector SPDR ETF (XLE) up 0.5%.The Philadelphia Oil Service Sector Index was decreasing 0.6%, and the Dow Jones US Utilities Index rose 1.1%.In geopolitical news, Yemen's Tehran-backed Houthis attacked energy facilities and cities in US ally Saudi Arabia on Tuesday, wounding more than 70 people and underscoring the risk of the Iran conflict escalating into a wider regional war, Reuters reported. Saudi Arabia said the attacks stopped operations at several energy facilities in the kingdom's south, Bloomberg reported, while noting a pick-up in buying by China, the world's largest importer.Front-month West Texas Intermediate crude oil rose 0.6% to $92.02 a barrel, and the global benchmark Brent crude contract eased 0.1% to $96.93 a barrel. Henry Hub natural gas futures fell 3% to $2.89 per 1 million BTU.In corporate news, Equinor (EQNR) and Standard Lithium's (SLI) Smackover Lithium partnership said Tuesday that a preliminary economic assessment of the Franklin project in northeast Texas estimates annual production of up to 70,000 tonnes of battery-quality lithium carbonate. Equinor shares rose 2%, and Standard Lithium added 1.5%.Solaris Energy Infrastructure (SEI) shares jumped past 16% after the firm said Tuesday that it now expects Q3 adjusted Ebitda of $110 million to $130 million, up from its previous guidance of $90 million to $105 million.Tamboran Resources (TBN) and Formentera Partners' joint venture, Daly Waters Energy, has recorded its first natural gas sales from the Shenandoah South Pilot Project in Australia's Beetaloo Basin, Formentera said. Tamboran shares gained 3.3%.TotalEnergies (TTE) shares rose 1.6% after the firm said Papua LNG has reached key contractual and commercial milestones, advancing the project toward a final investment decision.

Smackover Lithium Estimates Up to 70,000 Tonnes of Annual Lithium Carbonate Output From Texas Project

Equinor (EQNR) and Standard Lithium's (SLI) Smackover Lithium partnership said Tuesday that a preliminary economic assessment, or PEA, of the Franklin project in northeast Texas estimates annual production of up to 70,000 tonnes of battery-quality lithium carbonate.The project has an unlevered after-tax net present value of $5 billion, an internal rate of return of 24%, and a 3.1-year payback period, assuming a discount rate of 8% and a lithium carbonate price of $22,400 per tonne, Smackover said.The partnership said it could begin production in the early 2030s, with the potential for a longer operating life and further expansion, even though that is not included in the PEA.The PEA estimates capital intensity of $49,945 per tonne, with an average annual cash operating cost of $4,226 per tonne.In Tuesday's premarket activity, Equinor shares were up 2.4% while Standard Lithium added 0.4%.

Update: Standard Lithium, Equinor JV Signs 10-Year Lithium Offtake Deal With LG Energy Solution; Shares Rise

(Updates to add share movement in the headline and the first paragraph.)Standard Lithium (SLI) shares rise 4.5% in Monday trading after it said its joint venture with Equinor, Smackover Lithium, signed a 10-year binding take-or-pay offtake agreement with LG Energy Solution for 8,000 metric tonnes of battery-quality lithium carbonate annually from the South West Arkansas Project.The deal brings about 90% of the project's targeted offtake volume under contract, alongside an existing Trafigura agreement, it said.The project's initial phase targets annual production of 22,500 metric tonnes of lithium carbonate, it added.Standard Lithium said the agreement supports financing plans and a Final Investment Decision targeted for 2026, with commercial production expected in 2029.Price: $2.67, Change: $+0.12, Percent Change: +4.51%

Standard Lithium, Equinor's Smackover Lithium Partnership Awards Construction Contract for Arkansas Project

Standard Lithium (SLI) and Equinor's (EQNR) Smackover Lithium partnership said Tuesday it awarded an engineering, procurement, construction and commissioning contract for the central processing facility at the South West Arkansas lithium project to S&B Engineers and Constructors.Financial terms were not provided.Smackover Lithium said engineering and development consultancy firm Hatch will provide engineering and commissioning support as a subcontractor.The processing facility represents about two-thirds of the project's estimated capital spending and is expected to support planned annual production of 22,500 tonnes of battery-grade lithium carbonate in the initial phase, according to the company.Smackover Lithium said the agreement includes a limited notice to proceed covering engineering, permitting and early procurement activities before a full notice to proceed following a positive final investment decision.The company said it has now completed the key construction vendor agreements required before the final investment decision and continues to work on customer supply agreements and project financing.Price: $3.90, Change: $+0.18, Percent Change: +4.95%

Evercore ISI Initiates Standard Lithium at Outperform