Kraft Heinz forecasts about $950 million in 2026 capital spending | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]Heinz ketchup for sale at a supermarket in Queens, New York City, U.S., September 3, 2025. REUTERS/Kylie Cooper/File Photo [Purchase Licensing Rights, opens new tab]- Companies[Kraft Heinz Co]FollowFeb 12 (Reuters) - Kraft Heinz [(KHC.O), opens new tab] said on Thursday it expects annual capital spending of about $950 m ...

Core Viewpoint - RGC Resources is presenting its financial results for the first quarter of the 2026 fiscal year, highlighting operational and financial performance along with future outlook [2]. Group 1: Presentation Overview - The presentation includes forecasts and projections regarding earnings, capital spending, and gas prices, emphasizing the importance of understanding risks and uncertainties associated with forward-looking statements [2]. - The agenda for the presentation includes a review of operational and financial highlights for the first quarter, followed by an outlook for the remainder of the 2026 fiscal year, with a focus on an eventful January [2]. Group 2: Participants - The presentation features key personnel from RGC Resources, including the Director of Finance, the President and CEO, the VP, Treasurer and CFO, and the Senior Vice President of Regulatory and External Affairs [1].

Core Insights - IPC has accelerated its drilling schedule at Blackrod, raising its 2025 capital guidance to $340 million from $320 million, with drilling expected to continue into 2026 [1] - The company reported substantial spending of $228 million on growth capital at Blackrod Phase 1 in 2025, bringing cumulative spending to $820 million, with first oil expected in Q3 2026 [2] - IPC achieved first steam delivery at Blackrod ahead of schedule, around a quarter earlier than initially planned, and highlighted production support activities at other fields [3] Capital Expenditure and Cash Flow - Total capital expenditure for 2025, including decommissioning, was $344 million, aligning with IPC's guidance of $340 million, resulting in a free cash flow of -$153 million for the year [9] - Operating cash flow was reported at $63 million in Q4 and approximately $259–$260 million for the full year, with a full-year average Brent price of $69 [8] - The company ended 2025 with net debt of $484 million, reflecting heavy spending at Blackrod and share buybacks, with net debt increasing by around $280 million over the year [10] Production and Operating Costs - IPC reported average production of 45.6 thousand barrels of oil equivalent per day in Q4 and 44.9 thousand BOE per day for the full year, near the top end of its guidance range [5] - Operating costs were stable, with Q4 costs at $18.40 per BOE and full-year costs at $17.80 per BOE, slightly below the guidance range of $18–$19 per BOE [4] Pricing and Hedging - Average benchmark prices for 2025 were $69 for Brent and $65 for WTI, with a WTI/WCS differential averaging -$11, supporting profitability [13] - Hedging contributed positively to IPC's financial results in 2025, generating gains on WTI, Brent, and gas hedges, while incurring losses on differential protection and some FX hedges [15] Shareholder Returns - IPC completed its 2024–2025 NCIB by repurchasing 7.7 million shares, reducing shares outstanding by approximately 6.5%, with a total of 77 million shares repurchased since inception [16] Safety and Environmental Performance - The company reported no material health, safety, or environmental incidents in 2025, highlighting strong safety performance at Blackrod [17]

Core Viewpoint - Amazon announced a capital spending plan of $200 billion for 2026, surpassing Alphabet's previously stated range of $175 billion to $185 billion, which surprised Wall Street analysts [2] Group 1 - Amazon's capital expenditure for 2026 is set at $200 billion, indicating a significant investment strategy [2] - The announcement comes just one day after Alphabet revealed its own capital spending plans, highlighting competitive dynamics in the tech industry [2] - Wall Street had not anticipated such a high figure from Amazon, indicating a potential shift in market expectations [2]

Core Insights - Amazon reported record quarterly revenue and strong growth in its cloud segment for Q4, indicating robust performance in its core business areas [1] - Despite the positive financial results, Amazon's stock experienced a decline following the announcement of its capital expenditure plans for 2026, which raised concerns among investors [1] Financial Performance - The company achieved record quarterly revenue, showcasing its ability to generate significant sales [1] - Strong growth in the cloud segment highlights the increasing demand for cloud services, which is a critical area for Amazon's future growth [1] Capital Expenditure Plans - Amazon's capital expenditure plans for 2026 were a focal point of investor concern, leading to a drop in stock price despite the strong quarterly results [1]

Group 1 - Alphabet (Google's parent company) is highlighted as a key stock to watch, currently trading slightly above its initial buy point after breaking out from a flat base in early January [1] - The stock is approaching its all-time highs, indicating strong market interest and potential upward momentum [1] - Earnings for Google are expected to be reported on February 4, which could influence stock performance [1] Group 2 - There is speculation that Google may follow Meta in providing higher capital spending guidance for 2026, which could impact future growth strategies [1] - The upcoming earnings report is part of a busy earnings calendar that includes other major tech companies like Amazon and AMD [1] - The overall market is experiencing volatility, with various stocks, including Google, being closely monitored amid economic developments [1]

Core Viewpoint - Abercrombie & Fitch has revised its fiscal 2025 outlook, maintaining most projections while refining certain assumptions regarding sales growth and operating margins [1][4]. Group 1: Financial Projections - For the full year, net sales growth is now anticipated to be at least 6%, narrowing from the previous guidance of 6% to 7% [1]. - Operating margin is projected to be around 13%, down from the earlier expectation of 13.0% to 13.5% [1]. - Earnings per diluted share for the year are forecasted to be between $10.30 and $10.40, compared to the earlier range of $10.20 to $10.50 [2]. - For the fourth quarter, net sales growth is expected to be around 5%, consistent with the prior guidance range of 4% to 6% [4]. - Quarterly net income per diluted share is now expected to fall between $3.50 and $3.60, compared to earlier guidance of $3.40 to $3.70 [4]. Group 2: Capital Expenditure and Share Repurchases - Planned share repurchases remain at approximately $450 million for the year, with around $100 million planned for the fourth quarter [2][5]. - Capital expenditure guidance has been increased to $245 million, up from roughly $225 million previously [2]. Group 3: Operational Plans - The company's real estate plans remain unchanged, with around 40 net store additions expected, including 60 openings and 20 closures [3]. - The updated outlook incorporates estimated tariff-related costs of around $90 million, equivalent to 170 basis points of net sales [5]. - A $39 million pre-tax benefit linked to a litigation settlement is also reflected in the guidance [6].

Core Viewpoint - Energy Transfer is recovering from a challenging year in 2025, with expectations for significant growth in 2026 driven by new projects and increased capital spending [1][3][4]. Financial Performance - In 2025, Energy Transfer's adjusted EBITDA is projected to be slightly below the lower end of its guidance range of $16.1 billion to $16.5 billion, indicating less than 4% earnings growth, a decline from the 10% compound annual growth rate from 2020 to 2024 [3][4]. - The company anticipates adjusted EBITDA of between $17.3 billion and $17.7 billion in 2026, suggesting earnings growth of 7.5% to 9.9% [4]. Growth Catalysts - Several new expansion projects are expected to contribute to growth in 2026, including the Nederland Flexport NGL expansion, Mustang Draw I & II gas processing plants, and various natural gas pipeline projects in Texas [5]. - Although Energy Transfer did not make acquisitions in the past year, its affiliates have been active, with Sunoco LP acquiring Parkland for $9.1 billion and USA Compression Partners planning to acquire J-W Power Company for $860 million [6]. Capital Expenditure and Distribution - Energy Transfer plans to increase its capital spending in 2026, which will support its ability to raise its high-yielding distribution by 3% to 5% annually [7].

Capital Spending Guidance - Cenovus Energy Inc. expects capital investment between $5 billion and $5.3 billion in 2026, including $350 million of turnaround costs, which will be capitalized in 2026 [1] - Approximately $3.5-$3.6 billion will be allocated for sustaining capital expenditures to maintain base production and operations, while an additional $1.2-$1.4 billion will be dedicated to growth and expansion projects [1] Upstream Production Outlook - Total upstream production for 2026 is guided in the range of 945,000 to 985,000 barrels of oil equivalent per day (BOE/d), indicating a year-over-year growth of 4% after adjusting for the acquisition of MEG Energy [2] - Oil sands production is expected to contribute 755,000-780,000 BOE/d, with operating costs per BOE projected between $11.25 and $12.75 [2] - Conventional production is projected to be 120,000-125,000 BOE/d, with operating costs between $11 and $12 per BOE [2] Downstream Throughput and Refining Guidance - Expected downstream crude throughput is projected to be between 430,000 and 450,000 barrels per day (bbl/d), implying a crude utilization rate of nearly 91% to 95% [3] - Canadian refining throughput is estimated at 105,000 to 110,000 bbl/d, with operating costs expected between $11.50 and $12.50 per barrel [3] - U.S. refining throughput is guided between 325,000 and 340,000 bbl/d, with operating costs in the range of $11 to $12 per barrel [3] Corporate Guidance - General and administrative expenses, excluding stock-based compensation, are expected to be in the range of $625-$675 million, remaining broadly flat compared to the previous year [4] - The company anticipates incurring expenses of approximately $150-$200 million related to integration, transaction, and other one-off costs in 2026 [4] Overall Strategy - Cenovus's capital guidance for 2026 reflects a strategy of reducing growth investments compared to 2025, while focusing on debt reduction and returning value to shareholders [5] - The company aims to maintain safe and reliable operations, cost competitiveness, and strengthen its outlook for the coming year [5]

Capital Spending & Corporate Sentiment - Japanese businesses reduced capital spending after five consecutive quarters of growth [1] - This decrease signals a cooling of corporate sentiment [1] Trade & Economic Impact - Higher US tariffs are negatively impacting corporate sentiment [1]