The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

1056 ET - Power utilities will remain critical for the expansion of AI infrastructure despite the growing number of dedicated electricity generators being built near data centers, Joseph DeCampo, a managing director at investment bank Moelis & Company, says during an industry conference. "While they may start off as behind-the-meter or off-grid projects, data centers ultimately would like to be tied into the grid," DeCampo says. Data centers would be reluctant to rely on off-the-grid power installations alone partly because of their high reliability requirements, other panelists say. That puts utilities in the best position to benefit from surging demand for electricity to power AI systems, DeCampo says. "[Utilities] understand the grid better than anybody out there," he says. "They are the ones who ultimately benefit from the longer-term [power] trends." (luis.garcia@wsj.com; @lhvgarcia)

1033 ET - Oil futures are higher in early U.S. trading with continuing tensions in the Middle East and the market watching the storm heading for the U.S. Gulf coast. Tropical Storm Isaias is expected to be a hurricane when it reaches the U.S. coast late Friday, according to the National Hurricane Center, although the projected path has shifted east of the main oil-producing areas. Consulting firm Earth Science Associates estimates the storm could result in shut-in production of about 11.2 million barrels of oil and 13.3 billion cubic feet of natural gas. Front month WTI is up 0.6% at $89.98 a barrel and Brent gains 1.2% to $101.76 a barrel. (anthony.harrup@wsj.com)

0907 ET - Emera's merger with Canadian Utilities offers greater scale and diversification, but there are some drawbacks. TD Cowen's John Mould says "reduced relative exposure to Florida (a high quality jurisdiction for utilities) will be a disappointment for some investors." He says that Florida is one of North America's most attractive utility jurisdictions given the state's strong economic and population growth, but following the transaction, Florida's contribution to rate base is expected to decline to 46% from 73%. However, the positives will be in expanded scale, diversification over the longer-term, as well as adding concentrated exposure to Alberta where Mould sees a robust economy and opportunity to outperform at distribution utilities. "We expect modest low-single-digit EPS accretion, albeit under conservative assumptions," Mould adds. (adriano.marchese@wsj.com)

0622 ET - Europe's refining industry is key to the continent's energy policy, says Liana Gouta, director-general of industry group FuelsEurope. European Commission chief Ursula von der Leyen this week announced a strategic dialogue on European refineries, a move aimed at bringing down diesel costs and ensuring supply, including for Europe's defense industry. That launch is welcome, Gouta says. "We look forward to working with policymakers to ensure that competitiveness, security of supply and industrial transformation advance together, supported by a strong and resilient European refining sector," she says. Boosting refineries is a "long-term prerequisite" for Europe's climate, energy and industrial goals, says the group, whose energy-major members include ExxonMobil, BP, Italy's Eni and Norway's Equinor. (joshua.kirby@wsj.com; @joshualeokirby)

0556 ET - Spanish energy major Repsol's strong update boasted record high refining margins but these have deteriorated into September and October, which could weigh on sentiment, RBC Capital Markets analyst Biraj Borkhataria writes. The third-quarter update suggests limited upgrades to consensus expectations, he adds. "We continue to see Repsol well placed relative to other refiners in Europe given its complexity and ability to adjust both crude and product slates to maximize margins," he says. Shares are up 0.2% to 28.83 euros. (adam.whittaker@wsj.com)

0358 ET - Shell's continued strong oil and gas trading performance should be seen as a positive readacross to other large energy majors, J.P. Morgan's Matthew Lofting writes. The British energy major's third-quarter trading statement shows how it has been able to capture value amid the high and volatile price environment, he adds. Shares rise 0.5% to 3,668 pence.(adam.whittaker@wsj.com)

0341 ET - The full strength of Shell's integrated and trading business is on display, Barclays analyst Lydia Rainforth writes after the energy major's third-quarter trading update. Investor attention will now switch to the buyback, which could be $5 billion given its strong cash flow generation, she adds. Shares rise 0.5% to 3,668 pence. (adam.whittaker@wsj.com)

0330 ET - Shell's latest performance update was another strong one that will likely lead to consensus upgrades, RBC Capital Markets analyst Biraj Borkhataria writes. Strong oil and gas trading should also support cash flow generation, he adds. Shares rise 0.5% to 3,668 pence. (adam.whittaker@wsj.com)

0328 ET - Shell's third-quarter business update could push net income consensus expectations around 4% higher, Jefferies analyst Mark Wilson writes. The British energy major's refining utilization rate of around 95% is robust given low Rhine water levels dragged activity, he adds. Shares rise 0.5% to 3,668 pence. (adam.whittaker@wsj.com)

2107 ET - Forsyth Barr expects a strong set of 1Q operating statistics from New Zealand's electricity companies when they update the market later this month. It notes operating conditions in the wholesale electricity market are little changed, with renewable power generation breaking through 95% for the first time on a rolling 12-month basis. Still, rising interest rates and election uncertainty have weighed on the sector recently. New Zealand voters are due to go to the polls in November. Forsyth Barr's top picks in the sector are Contact Energy and Mercury NZ. (david.winning@wsj.com; @dwinningWSJ)

1732 ET - LGI's A$22 million purchase of two solar farms in eastern Australia's Queensland state should drive Ebitda growth this fiscal year, says Ord Minnett. The Brigalow and Chinchilla solar farms have a combined export capacity of 42 megawatts. Analyst Tim Elder expects the acquisition can be comfortably funded through cash and existing debt. "At current market prices, we forecast the assets will contribute Ebitda of A$1.6 million in FY27 and A$2.2 million in FY28," Ord Minnett says. This could rise to A$3.4 million in FY29 and FY30 as LGI captures forecast portfolio and revenue savings. "The acquisition strengthens LGI's medium-term growth outlook and broadens its electricity generation platform," says Ord Minnett, which rates LGI a buy. Its price target lifts 3.5% to A$4.45/share. LGI ended Tuesday at A$2.20. (david.winning@wsj.com; @dwinningWSJ)

1536 ET - Crude futures recover from early losses and settle fractionally higher with market optimism about increased shipments out of the Middle East tempered by continued conflict risk. Crude markets "recovered into the plus column but with upside still limited by the increased flow of tanker traffic through the Strait of Hormuz," Ritterbusch & Associates says in a note. Risk of renewed disruptions remain if Iran steps up attacks on vessels or the Houthis succeed in restricting crude movement through the East-West pipeline to the Red Sea, the firm adds. WTI settles up 1 cent at $89.44 a barrel and Brent edges up 0.3% to $100.58 a barrel.