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Goldman Sachs saw the fleet status report and maintains its Sell rating with a $7.25 price target, citing lower than expected dayrates for new contract awards and five rigs idled and two more stacked.
$CEQP - $ED Crestwood Equity Partners (NYSE:CEQP) and Consolidated Edison (NYSE:ED) are forming a joint venture to own and develop CEQP's existing natural gas pipeline and storage business located in northern Pennsylvania and southern New York.
ED will purchase a 50% equity interest in Stagecoach Gas Services for ~$975M, with an implied market value of ~$2B, to be funded with a combination of debt and new equity; CEQP will contribute its existing natural gas pipeline and storage business to the new entity.
Stagecoach will own four natural gas storage facilities with a combined storage capacity of 41B cf and three natural gas pipelines with a combined throughput capacity of 2,960 Mmcf/day; for the first three years following closing, ED will receive 65%, 65% and 60%, respectively, of cash distributed.
In a revised 2016 outlook, CEQP sees adjusted EBITDA of $435M-$465M, distributable cash flow of $275M-$305M, and growth capital spending and JV contributions of $50M-$75M; it is cutting its quarterly distribution to $0.60/unit from $1.375.
$CEQP - $ED Crestwood Equity Partners (NYSE:CEQP) and Consolidated Edison (NYSE:ED) are forming a joint venture to own and develop CEQP's existing natural gas pipeline and storage business located in northern Pennsylvania and southern New York.
ED will purchase a 50% equity interest in Stagecoach Gas Services for ~$975M, with an implied market value of ~$2B, to be funded with a combination of debt and new equity; CEQP will contribute its existing natural gas pipeline and storage business to the new entity.
Stagecoach will own four natural gas storage facilities with a combined storage capacity of 41B cf and three natural gas pipelines with a combined throughput capacity of 2,960 Mmcf/day; for the first three years following closing, ED will receive 65%, 65% and 60%, respectively, of cash distributed.
In a revised 2016 outlook, CEQP sees adjusted EBITDA of $435M-$465M, distributable cash flow of $275M-$305M, and growth capital spending and JV contributions of $50M-$75M; it is cutting its quarterly distribution to $0.60/unit from $1.375.
Crestwood Equity Partners (NYSE:CEQP) and Consolidated Edison (NYSE:ED) are forming a joint venture to own and develop CEQP's existing natural gas pipeline and storage business located in northern Pennsylvania and southern New York.
KMI also says it expects to generate excess cash sufficient to fund its growth capital needs without needing to access capital markets and expects to achieve its targeted year-end debt to EBITDA ratio of 5.5x.
KMI says it expects to declare dividends of $0.50/share for 2016 and use cash in excess of dividend payments to fund growth investments and strengthen its balance sheet.
KMI says its budgeted distributable cash flow available to common equity holders is ~$4.7B and budgeted EBITDA is ~$7.5B, but because of continued weakness in the energy sector, it now expects EBITDA of ~3% below plan and distributable cash flow of ~4% below plan.
Kinder Morgan (NYSE:KMI) -3% AH after missing Q1 earnings estimates on 11% lower revenues of $3.2B, and scaling back expectations.
Basic Energy Services (NYSE:BAS): Q1 EPS of -$1.32 beats by $0.13. Revenue of $130.4M (-50.2% Y/Y) misses by $4.52M.
$LNG - Cheniere Energy’s (NYSEMKT:LNG) Sabine Pass terminal in Louisiana has received nearly 35.4B cf of natural gas for export since pipeline deliveries to the facility were first reported in October - with most of the volume arriving in the last six weeks - helping gas futures to rise 7% over the past month as the shipments limit the size of the current supply glut, Bloomberg reports.
Exports of liquefied natural gas are boosting bullish traders after a flood of production from shale formations sent futures falling to historic lows, and hedge funds are betting on rising gas prices for the first time since 2014 as cargoes from Sabine Pass boost demand, according to the report.
Cheniere’s gas demand so far this year has helped support prices by $0.05-$0.10 per MMBtu, says Kyle Cooper of Cypress Energy Capital Management, adding that while volumes are still relatively small, Sabine Pass total consumption will reach 200B cf or more by this time next year.
$LNG - Cheniere Energy’s (NYSEMKT:LNG) Sabine Pass terminal in Louisiana has received nearly 35.4B cf of natural gas for export since pipeline deliveries to the facility were first reported in October - with most of the volume arriving in the last six weeks - helping gas futures to rise 7% over the past month as the shipments limit the size of the current supply glut, Bloomberg reports.
Exports of liquefied natural gas are boosting bullish traders after a flood of production from shale formations sent futures falling to historic lows, and hedge funds are betting on rising gas prices for the first time since 2014 as cargoes from Sabine Pass boost demand, according to the report.
Cheniere’s gas demand so far this year has helped support prices by $0.05-$0.10 per MMBtu, says Kyle Cooper of Cypress Energy Capital Management, adding that while volumes are still relatively small, Sabine Pass total consumption will reach 200B cf or more by this time next year.
Williams Cos. (NYSE:WMB) says the Delaware Chancery Court will expedite its litigation against Energy Transfer Equity (NYSE:ETE) over private shares issued to help finance the pending merger of the two pipeline companies.
WMB filed the lawsuit last week, as well as a separate suit against ETE chief Kelcy Warren, accusing its planned acquirer and the CEO of violating the merger agreement with a private offering of debt.
WMB's board also reiterates its support for the merger, which is expected to close in Q2.
Entergy (ETR +0.7%) says it will permanently shut its 728 MW Pilgrim nuclear reactor in Massachusetts in May 2019, following a final refueling in spring 2017.
ETR had announced earlier that it was considering shutting the unit as early as spring 2017, because the unit is losing ~$40M/year with little chance its economics will improve in the foreseeable future.
The company says the decision to close the plant at the back end of the two-year window was made to fulfill its contractual obligations to supply the region's power grid.
ETR permanently shut the 635 MW Vermont Yankee reactor in 2014, and said in February that it would permanently shut the 849 MW FitzPatrick plant in New York in January 2017.
No doubt about it. Helps lean up the industry and let smart money go to work.
A combination of more associated gas from depleting wells and more pipeline use instead of flaring as pressure is ongoing about air quality. Plus they are still drilling.
Recent coal bankruptcies from Peabody Energy and others actually are good news for Joy Global (JOY +4.4%) - indeed a counter-intuitive positive catalyst - Baird's Mircea Dobre and Joseph Grabowski claim.
The analysts say they take their cue from JOY CEO Ted Doheny, who told them that he views pre-filing behavior as “stressing equipment and suppliers” forcing suppliers to move to cash up front mode in some cases, while post-filing behavior is akin to “stabilization,” particularly when it comes to demand for service and parts, items directly related to current and future customer cash flow generation.
"The near term remains rocky but be brave... buy," the Baird pair says.
$HES $CLR $WLL North Dakota crude oil production fell for the third straight month in February to hit its lowest level in 18 months, while the state's rig count sunk to its lowest since October 2005, according to the latest data from the state's Department of Mineral Resources.
The U.S.’s second largest oil producing state pumped 1.118M bbl/day in February, down very slightly from January's 1.122M but January output fell 2.6% from December, which fell 2.5% from November.
The number of rigs drilling for oil in North Dakota is now at 29, down from 52 in January and 40 in February; the all-time high was 218 in May 2012.
However, natural gas production in the state rose 2.9% in February to 1.69B cf/day, a new all-time high.
Apart from the end of seasonal trade, the biggest reason to sell refiner holdings this summer is the increasing likelihood of recession in 2017 and more so in 2018, Credit Suisse says, also expressing concern about deterioration of diesel margins.
Credit Suisse expects tight butane blending spreads and stock specific maintenance will have a negative impact on the already weak performance of U.S. independent refiners in 2016.
The firm downgrades "sector bellwether" Valero Energy (VLO -2.5%), Alon USA Partners (ALDW -1.3%), Northern Tier Energy (NTI -0.8%) to Neutral from Outperform and Calumet Specialty Products Partners (CLMT -2.9%) to Underperform from Outperform.
Chevron (CVX +0.4%), Royal Dutch Shell (RDS.A +1%) and Total (TOT +1.2%) had their credit ratings cut by Moody’s late Friday on the expectation that oil prices will stay lower for longer.
Two California congressmen are urging CalPERS to divest its holdings in Exxon Mobil (XOM -0.4%) over its handling of the issue of climate change.
Reps. Lieu and DeSaulnier have sent a letter to CalPERS saying it is "morally suspect" for the $300B pension fund "to invest in a company that engaged in morally reprehensible conduct" on climate change, and that the fund should follow the lead of the Rockefeller Family Fund, which said last week it would divest from fossil fuels and from XOM.
The congressmen say CalPERS' position that divestment is not always the best strategy to change company behavior and that ongoing shareholder pressure can yield more results has not worked.
Yesterday, the attorneys general from Massachusetts and the U.S. Virgin Islands said they launched investigations into whether XOM has misled the public about the risks of climate change, joining AGs from New York and other states.
Two California congressmen are urging CalPERS to divest its holdings in Exxon Mobil (XOM -0.4%) over its handling of the issue of climate change.
Reps. Lieu and DeSaulnier have sent a letter to CalPERS saying it is "morally suspect" for the $300B pension fund "to invest in a company that engaged in morally reprehensible conduct" on climate change, and that the fund should follow the lead of the Rockefeller Family Fund, which said last week it would divest from fossil fuels and from XOM.
The congressmen say CalPERS' position that divestment is not always the best strategy to change company behavior and that ongoing shareholder pressure can yield more results has not worked.
Yesterday, the attorneys general from Massachusetts and the U.S. Virgin Islands said they launched investigations into whether XOM has misled the public about the risks of climate change, joining AGs from New York and other states.
$TRP $CPGX - TransCanada's (NYSE:TRP) C$4.42B ($3.37B) capital raise to help fund its acquisition of Columbia Pipeline Group (NYSE:CPGX) ranks as the largest share sale in Canadian history, Bloomberg erports.
$WPX - WPX Energy says it received $1.2B in commitments on a senior secured credit facility, at a time when many energy companies brace for a fall in credit lines.
WPX says the facility provides clarity and a validation of its financial health, and provides ample liquidity for a post-Piceance company as it prepares to close that asset sale in Q2.
WPX also says it had an initial borrowing base of $1.025B; the company had said in August that total commitments under its revolving credit facility had increased to $1.75B from $1.5B.
$WPX - WPX Energy says it received $1.2B in commitments on a senior secured credit facility, at a time when many energy companies brace for a fall in credit lines.
WPX says the facility provides clarity and a validation of its financial health, and provides ample liquidity for a post-Piceance company as it prepares to close that asset sale in Q2.
WPX also says it had an initial borrowing base of $1.025B; the company had said in August that total commitments under its revolving credit facility had increased to $1.75B from $1.5B.
Wasn't this what they had in back to the future? I think they missed it by a year LOL
Crude oil prices tilt lower, erasing earlier gains that had WTI hitting a new 2016 high of $41.20/bbl, after Baker Hughes' latest data showed a tiny rise in rig counts.
U.S. oil rigs rose by one to 387, snapping a 12-week streak of declines, while gas rigs fell by five to 89, bringing the total count of oil and gas rigs lower by four to a record-low 476.
The oil rig remains down 76% from its October 2014 peak and down more than 53% from this week last year.
WTI crude, which already was pulling back from its highs before the rig count news, now -0.9% at $39.84/bbl.
Transocean (RIG -5.8%) says the oil drilling sector is enduring the most challenging market in 30 years, but the industry's cyclical nature ultimately will yield a recovery and drive demand for its assets and services.
In a letter to shareholders, RIG touts a strong portfolio of drilling rigs, with two new ultra-deepwater rigs added to its asset base; both rigs are under a 10-year contract for Shell, with a third, tapped for Chevron, is scheduled for later this year.
The company says results from 2015 were better than it expected, but moving through the weakened oil market landscape presents significant challenges for the year ahead.
Good to hear. Lots of value in this market.
Seadrill (SDRL +121%) gets ready to conclude its best trading day in the company's history, up as much as 170% as investors covered short bets after the company’s main owner, billionaire John Fredriksen, this week raised $510M in cash, fueling speculation of a bailout.
$EXC $POM - The D.C. water and sewer authority is the latest city agency to come out against a revised settlement that would allow Exelon (NYSE:EXC) and Pepco (NYSE:POM) to merge.
DC Water general manager George Hawkins, one of several city officials that must sign off on a settlement agreement that was revised last week by city regulators, said today that he opposes the deal.
Mayor Bowser and the city's attorney general said yesterday that they would not support the deal, leaving the merger in doubt.
POM shares could lose another $4-$5/share if the merger does not close, says Guggenheim Securities analyst Shahriar Pourreza: “Given that [POM] has been out of a rate case since 2014 and the delays with this merger, [it] has materially deteriorated as a stand-alone company.”
POM lost another 2% in today's trade, and has shed 11.5% since Tuesday.
The D.C. water and sewer authority is the latest city agency to come out against a revised settlement that would allow Exelon (NYSE:EXC) and Pepco (NYSE:POM) to merge.
Exxon Mobil (NYSE:XOM) is the first major U.S. oil company to ship American crude overseas, to a refinery it owns in Sicily, Bloomberg reports.
Great Panther Silver (NYSEMKT:GPL): Q4 EPS of -$0.03 misses by $0.01.
Revenue of $17.2M (+20.8% Y/Y) beats by $0.2M.
$REXX - Rex Energy (NASDAQ:REXX) +12.1% premarket after announcing a $175M joint venture with P-E firm Benefit Street Partners to develop 58 specifically designated wells in the company's Moraine East and Warrior North operated areas.
Rex says the agreement will allow it to drill 15 more wells at its Appalachian projects in Pennsylvania and Ohio this year, while lowering its expected operational capex to a range of $30M-$40M.
Upon completion of the 58-well program, Rex says it will hold ~42K acres in Moraine East and 10.4K acres in Warrior North.
$CHK - very sad situation.
Watching closely.
Very interesting. Changing dynamic I suppose?
Petrobras (NYSE:PBR) +5.1% AH on news it has secured a $10B loan from the China Development Bank as part of deal to supply crude oil to the country.
Ur-Energy (NYSEMKT:URG): FY15 EPS of -$0.01. Revenue of $41.87M (+42.7% Y/Y).
California Water Service Group (NYSE:CWT) is up 4.5% after hours as it's set to join the S&P SmallCap 600 after the close on Monday, March 7.