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Loews will share its quarterly update on November 2. As a holding company that owns several large businesses, the focus will likely be on the performance of CNA Financial, the insurance arm that brings in the vast majority of its revenue. We will also look for updates on the expansion of its natural gas pipeline business, which is a key part of its long-term growth plan.
The US and Iran are discussing a phased plan to reopen the Strait of Hormuz, a vital waterway for the world's oil supply. At the same time, Saudi Arabia has increased its crude exports to levels not seen since the start of the conflict. These developments have caused oil prices to fall as the risk of a supply shortage eases.
For Loews, this matters because of its ownership of Boardwalk Pipelines, which transports and stores natural gas. While natural gas and oil are different, their prices often move together, and a general drop in energy prices can lower the demand for new pipeline capacity. If energy markets remain calm and prices stay low, it could slow the growth of the steady cash flows Loews relies on to fund its share buybacks.
Source: Bloomberg Markets and Finance
Oil prices rose on Monday after Saudi Arabia shut its East-West pipeline following several attacks. This pipeline is a critical alternative route for moving oil when the Strait of Hormuz is threatened. At the same time, regional talks to secure shipping lanes have been delayed, adding more uncertainty to global supply.
Higher energy prices are generally a plus for Loews. The company owns Boardwalk Pipelines, which moves and stores natural gas. When energy markets are tight and prices are high, the value of infrastructure that can reliably move fuel increases, supporting the steady cash flow Loews uses to fund its share buybacks.
Source: Bloomberg Markets and Finance
Brent crude oil prices topped $105 a barrel this week as supply concerns grew. While Loews is a diversified company, it owns Boardwalk Pipelines, which transports and stores natural gas. Higher energy prices often lead to more drilling and transport activity, which can increase the value of this infrastructure over time.
This price surge follows a week of rising tensions that have pushed oil steadily higher. For a long-term owner, these swings in energy prices provide a lift to the pipeline business, though the company's overall results are still driven more by its large insurance holdings.
Source: Bloomberg Markets and Finance
Oil prices rose on Wednesday after US forces destroyed five Iranian tankers in response to missile attacks on a US warship. Brent crude oil is now trading near $100 a barrel as tensions rise near a key export hub in the Middle East.
While Loews is mostly an insurance company, it owns Boardwalk Pipelines, which moves and stores natural gas. Higher energy prices generally lead to more drilling and production in the US, which keeps those pipelines full and creates more demand for the company's storage and transport services. This provides a steady stream of cash that Loews often uses to buy back its own shares.
Source: Bloomberg Markets and Finance