Fracking Credit – JPM High Yield Energy Weekly

This is J.P. Morgan's North America high yield energy credit weekly (Fracking Credit). Year to date, the J.P. Morgan HY Energy index has returned 432bps versus 6bps for the broader HY index; over the last week Energy returned 25bps versus -45bps for the broader HY index. HY Energy STW stands at 213bp, 146bp tighter than the broader HY index at 359bp. Key news this week: Venture Global signed power and grid framework agreements with GE Vernova and Baker Hughes for up to 16 720MW power island units, expecting a first purchase order by YE26 and up to 10GW of compute capacity by end-2034; the RIG-VAL merger received unconditional approval from Brazilian regulator CADE and is expected to close in 4Q; Seadrill announced contract awards/extensions across four rigs; J.P. Morgan initiated Borr Drilling at Underweight. Upcoming: WFRD 3Q26 results on October 20 (AMC). Trade idea: Buy (short-risk) SM 5yr CDS.