Core Insights - Insurance buyers are in a strong position to optimize cost and coverage as the market transitions into 2026, according to the Energy Market Review Update by Willis [1] Upstream Energy Market - The upstream energy market has experienced a record year of low loss activity, attributed to improved risk management and asset quality, leading to continued profitability for insurers [2] - Market softening has accelerated since the previous review in April, with insurers prioritizing retention of well-managed risks and rewarding long-term relationships [2] Downstream Energy Market - Downstream insurers have faced approximately US$3.5 billion in losses this cycle, with claims equaling market premiums, particularly in the US refining sector [3] - Companies with clean loss histories benefit from favorable renewal terms, while those with loss activity may encounter more conservative market conditions, although rate reductions of 10-15% and up to 20-50% in competitive tenders are available [3] Market Trends for 2026 - Insurers reported strong financial results at the end of Q3, with oversupply in capacity and a growth-oriented appetite simplifying complex placement structures, allowing for premium savings for clients [4] - Energy companies renewing in Q4 2025 and looking into 2026 are positioned to negotiate better conditions alongside pricing [4] Specific Market Challenges - Upstream construction faces long-tail risks, but underwriters are more accommodating to these risks where operational relationships exist [6] - Subsea construction capacity remains restricted, creating a micro-hard market, with some insurers considering small amounts of subsea construction to boost premium income [6] - The liability market is transitioning from hard to softening conditions due to healthy capacity and positive loss ratios, contrasting with the US casualty market, which is affected by social inflation and new legislation [6]

Core Viewpoint - Sable Offshore Corp. (NYSE:SOC) experienced a significant decline in share price due to financial restructuring and allegations of selective disclosure, but showed signs of recovery with a new private placement announcement. Group 1: Share Price Movement - The share price of Sable Offshore Corp. fell by 17.47% between November 3 and November 10, 2025, making it one of the worst-performing energy stocks that week [1] - The company reached an all-time low after announcing plans to extend the maturity of its loan with Exxon Mobil, contingent upon raising at least $225 million through a stock offering [2] Group 2: Allegations and Company Response - Sable Offshore faced pressure on October 31 when short-seller Hunterbrook alleged that the company had selectively disclosed information to investors, including professional golfer Phil Mickelson [3] - In response, Sable Offshore stated that it had formed a special committee to investigate the allegations [3] Group 3: Recovery and Analyst Attention - On November 10, Sable Offshore announced a $250 million private placement of shares to institutional investors, intending to use the proceeds for general corporate purposes [4] - Following this announcement, analyst attention increased, with Jefferies reducing the stock's price target from $38 to $20 on November 11, while maintaining a 'Buy' rating on SOC [4]

Core Insights - Cavvy Energy Ltd. will release its financial and operating results for Q3 2025 on November 6, 2025, after market close [1] - An investor conference call and webcast will be held on November 7, 2025, at 8:30 a.m. MDT / 10:30 a.m. EDT to discuss the results [2] Company Participation - Cavvy Energy is participating in the Schachter Catch the Energy Conference, which allows investors to interact with senior leadership from over 45 companies in the energy sector [3] - CEO Darcy Reding will present at the conference on October 18, 2025, at 1:15 p.m. MDT [4] Event Details - The Schachter Catch the Energy Conference will take place on October 18, 2025, from 8:30 a.m. to 4:45 p.m. at Mount Royal University, Calgary, AB, Canada [5] - The conference will feature discussions on upstream energy, energy services, infrastructure, and renewable technology [3] Company Overview - Cavvy Energy is a Canadian energy company based in Calgary, Alberta, focusing on upstream production and midstream processing of natural gas, NGLs, condensate, and sulphur [5]

Core Insights - EON Resources Inc. is an independent upstream energy company operating in the Permian Basin with significant leasehold acreage and production capacity [1] Company Overview - The company holds 20,000 leasehold acres in the Permian Basin [1] - EON has a total of 750 producing and injection wells [1] - The current production rate exceeds 1,000 barrels of oil per day [1]

Core Insights - EON Resources Inc. is an independent upstream energy company operating in the Permian Basin with significant leasehold acreage and production capacity [1] Company Overview - The company holds 20,000 leasehold acres in the Permian Basin [1] - EON has a total of 750 producing and injection wells [1] - The current production rate exceeds 1,000 barrels of oil per day [1]

Core Insights - EON Resources Inc. is an independent upstream energy company operating in the Permian Basin with significant leasehold acreage and production capacity [1] Company Overview - The company holds 20,000 leasehold acres in the Permian Basin [1] - EON has a total of 750 producing and injection wells [1] - The current production rate exceeds 1,000 barrels of oil per day [1]

Core Insights - EON Resources Inc. is an independent upstream energy company operating in the Permian Basin with significant leasehold acreage and production capacity [1] Company Overview - The company holds 20,000 leasehold acres in the Permian Basin [1] - EON has a total of 750 producing and injection wells [1] - The current production rate exceeds 1,000 barrels of oil per day [1]

Core Viewpoint - EON Resources Inc. is positioned as an independent upstream energy company with significant operations in the Permian Basin, highlighting its production capabilities and leasehold assets [1] Company Overview - EON Resources Inc. holds 20,000 leasehold acres in the Permian Basin [1] - The company operates a total of 750 producing and injection wells [1] - EON Resources is currently producing over 1,000 barrels of oil per day [1]

Core Insights - EON Resources Inc. is an independent upstream energy company operating in the Permian Basin with significant leasehold acreage and production capacity [1] Company Overview - The company holds 20,000 leasehold acres in the Permian Basin [1] - EON has a total of 750 producing and injection wells [1] - The current production rate exceeds 1,000 barrels of oil per day [1]

Core Viewpoint - Range Resources Corporation (RRC) has shown resilience with a 5.5% share price increase over the past six months, contrasting with a 20.7% decline in the oil-energy sector and a 3.6% rise in the S&P 500 composite [1][6] Financial Performance - RRC's market capitalization stands at $9.3 billion [1] - The Zacks Consensus Estimate projects a 38.3% year-over-year increase in RRC's 2025 earnings per share (EPS) and a 14.3% rise in revenues to $3.2 billion [3][6] - The company has achieved a 34.3% earnings growth over the last five years, surpassing the industry average of 26.1% [3] - Long-term earnings growth is anticipated at 40.8%, exceeding the industry average of 20.5% [4] Valuation and Price Targets - The average price target for RRC, based on 22 analysts, is $42.18 per share, indicating an 8.26% upside from the last closing price [5] - RRC is currently trading at a trailing 12-month EV/EBITDA of 10.01X, which is lower than the broader industry average of 11.07X [8] - The 2026E EV/EBITDA multiple is projected at 6.5X, significantly below sector peers and broader equity indices [14] Cash Flow and Capital Management - RRC has consistently generated free cash flow, with a cumulative $3.2 billion from 2021 to 2024 [13] - The forecast for 2025 free cash flow exceeds $450 million, with potential to surpass $1 billion at $4.50/MMBtu natural gas prices [6][13] - The company operates with a capital reinvestment rate below 50%, allowing for a production growth of approximately 20% through 2027 while returning capital to shareholders [13] Resource Base and Operational Efficiency - RRC holds over 30 years of high-quality, undrilled Marcellus inventory, with approximately 28 million lateral feet of drilling potential [10] - The inventory breaks even at natural gas prices below $2.50/MMBtu, with some assets viable under $2.00/MMBtu [12] - The company benefits from low capital intensity and peer-leading well costs, enabling sustained value creation even in modest commodity price scenarios [15] Environmental, Social, and Governance (ESG) Practices - RRC achieved net-zero Scope 1 and 2 greenhouse gas emissions in 2024 and reduced methane intensity by 83% since 2019 [16] - The company recycles more than 100% of its produced water and has implemented an extensive leak detection program [16] - These practices enhance stakeholder relations and support a long-term license to operate in Appalachia [17]