Ford Motor Offloads 8 Million Shares Of An EV Maker For $214 Million

Ford Motor Offloads 8 Million Shares Of An EV Maker For $214 Million

Ford Motor Offloads 8 Million Shares Of An EV Maker For $214 Million

Ford Motor (F) paid $214 million for eight million shares of Rivian (RIVN), a U.S. electric vehicle manufacturer. Rivian’s stock is dropped nearly 85% from its all-time highs.

Rivian’s stock dropped more than 20% over the weekend after Ford announced plans to sell a minor piece of its interest.

The deal cuts Ford’s position in Rivian to 10.5 percent, or 94 million shares, albeit it remains the electric carmaker’s fourth-largest stakeholder. T.Rowe Price Associates, an investment management business, is Rivian’s largest stakeholder.

Rivian continues to face greater competition in the electric vehicle market, including Ford’s electric pickup truck, the F-150 Lightning, as well as supply chain difficulties.

By October, the amount of crude oil streaming through pipelines from the top U.S. field to export centers on the Gulf Coast might have reached pre-pandemic levels.

The outbreak put an end to a shale-oil pipeline building frenzy that had added 2.5 million barrels per day of export capacity from West Texas to Gulf Coast hubs.

With US crude selling at $100 a barrel, oil production in the Permian area of West Texas is expected to reach 5.7 million BPD next year.

That would still be less than the 6.6 million BPD capacity available on pipelines. Spare capacity will start to constrict, and water tariffs will return to a more normalized level. 

Given increased Permian oil output, the company may reconsider plans to turn its Permian to Gulf Coast oil pipeline to transport natural gas or goods.

Pipelines from the Midland to the Gulf Coast are expected to be used at pre-pandemic levels. The majority of pipeline firms’ revenue comes from massive contracts with suppliers and oil producers that promise payment even if clients need not ship the oil.

Oil companies said they were still negotiating shorter-term contracts since spreads were low but that once the arbitrage picked up, they would convert to longer-term contracts. For the second year in a row, energy companies intend to increase capital investment in order to add more rigs and expand production

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