“Formula for success: rise early, work hard, strike oil.” - J. Paul Getty
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Petrobras (NYSE:PBR) says it is not considering selling a 10% stake in its giant Libra offshore oil prospect at this time, Reuters reports.
Halliburton (NYSE:HAL) officials will visit EU antitrust regulators next week for a state of play meeting and likely will be told about competition worries over its $35B bid for Baker Hughes (NYSE:BHI), Reuters reports.
A sale of ITC Holdings in the range of $39-$47 per share is likely in the best interests of shareholders and is a very likely outcome of the Board's current strategic review.
Based on the attractive characteristics and prospects of ITC Holding, we believe there will be active and competitive bidding by large strategic players in the regulated power industry and the results will be a final transaction price in the $44-$47 per share range.
As such, we expect the power and utility industry consolidation will show no signs of slowing in 2016.
And importantly, in contrast to several of the current prolonged transactions, we believe a proposed acquisition involving ITC Holdings will navigate the complex regulatory process successfully and in a more appropriate timeframe.
I have heard but still waiting to see what kind of substance we have available to support it. Well positioned though I would agree.
The true catalyst for the sector is commodity prices and there is no reversal of trends in place in the immediate future. This could suggest further weakness or flat trading until there is a clear indication of a reversal of commodity pricing. I would error on side of caution at this stage.
On a different note, The Company has disclosed insider buying and selling activities to the Securities Exchange, Cooperman Leon G, 10% owner of Atlas Energy Group, Llc, had purchased 24,787 shares on August 19, 2015.
The total value of the transaction was $77,831. The information was disclosed with the SEC in a Form 4 Filing. The information is based on open market trades at the market prices.Option exercises are not covered.
As of November 30, Atlas Energy Group, LLC has dropped 59.16% during the last 3-month period .
Year-to-Date the stock performance stands at -85.68%.
Currently the company Insiders own 3.8% of Atlas Energy, L.P. shares according to the proxy statements.
Institutional Investors own 35.45% of Atlas Energy, L.P. shares.
During last six month period, the net percent change held by insiders has seen a change of 55.48%.
I have been expecting the offshore industry to continue to feel a lot of pain until mid next year.
Sounds good. I think the potential for that soon is possible.
Positive news for sure but market looking for more it seems.
You can say that again. Serious weakness. What will be the catalyst for a reversal in trend?
Been reading a lot of uranium. Will see if I can post some more DD here.
Being hammered currently. Do you see a reversal in precious metals ahead?
Appreciate you sharing the notes.
I agree with your comments.
Are you playing the swings?
I think it's important for holding cash flow and acreage. Better have cash flow back with low return then sit on balance sheet.
My number was $52 but you raise a good point about hedges rolling off. I believe that was factored in but will need to check.
I would agree they are not going to capitulate entirely or least at this point but the company is likely to be proactive about recap its debt in my opinion. Just saying they are capable.
The question of when the uranium market will turn depends upon when the utilities start to worry about locking up fuel supplies,” said Lundin. “They’ve been patient over the past few years, but I think they’re going to have to start moving over the next year.”
Lundin said China’s current and planned construction of nuclear power plants is a good indicator of future demand. Mainland China has 26 nuclear power reactors in operation and 25 under construction, with more planned, according to the World Nuclear Association.
Once uranium prices rise, Handwerger said, uranium miners will “likely outperform” and the Global X Uranium ETF could double in price in three to five years. Experts say concrete signs of increased demand could be seen this year.
“The market does seem to have some legs right now,” Hinze said. “We could see a gradual strengthening over the coming months.”
For the uranium market to get a boost, analysts say, a lot of dust still needs to settle.
But the fact that Japan has decided to restart its nuclear plants may convince other countries to energize their own programs.
A thing of beauty. Load zone over next 1-3 months.
I share your confidence.
Interesting article certainly. More a product of sinking gas prices in the wake of El Niño. Company is well positioned for long term but industry will pull it down until end of first half 2016 in my opinion.
End of year selling ahead. May getting worse before it gets better.
Assuming there is no similar drop in oil prices in 2016, there will be no catalyst to bump demand up further.
Gasoline demand is already reflecting that reality, with the 4-week demand off 0.2% v. the same weeks last year.
Will declines cover the demand weakness?
October 2015 was the warmest on record and was the warmest month ever relative to a month's average temperature.
It was also the sixth straight month to set a month-based global temperature record on both land and sea from 1880-2015.
El Niño doesnt bode well for natty..
Product supplied, a proxy for demand and consumption, got a lift last year when consumer prices for gasoline and heating oil dropped in the wake of the Thanksgiving OPEC meeting.
Still, demand in the year-to-date is up just 3.0%. Given that prices were about 50% lower in 2015 v. 2014, this suggests a very low elasticity of demand, -.06.
Hopefully declines will do more of the rebalancing in 2016.
The near-term picture does not look great for gold. Price settled below the previous support level, and, taking into account the almost inevitable Fed rate hike, there's little to support them.
Longer-term picture looks more encouraging, as the drop of gold prices increases demand while supply stagnates.
I have posted on them as well and would agree. Come join us on the natural resource board.
One of the things that the company has done is undertake an asset optimization program.
Through this program, ConocoPhillips plans to sell off its non-core assets and generate a large amount of capital that can be reinvested in the company for future growth or returned to shareholders.
For instance, in fiscal year 2013, the company sold off its interest in the Kashagan field, which resulted in proceeds of $10.2B. What the company has done with the proceeds from these sales is pay down some of its debt, which it has accumulated in order to juice up its growth.
During fiscal year 2014, ConocoPhillips's debt stood at $21.6B, down approximately $4B from the end of fiscal year 2011. Its net debt-to-capital ratio is actually much lower than the peer average by around 5%, which is substantial given the company's size.
By making its capital structure more flexible, it is now free to pursue other growth opportunities.
Long-term investors are more concerned about the company's long-term, stable fundamentals that will ensure long-term capital gains, and luckily for investors, ConocoPhillips has plenty of these.
While investors may know ConocoPhillips as a stable firm that generates recurring, growing dividends, it is actually in the process of revving up its growth engines.
Even a large company such as ConocoPhillips can do some things to improve returns to investors via capital appreciation, and as investors can see, it is doing just that.
Is there anything for MLP investors to be thankful for this year?
1. The tariffs of interstate liquids pipelines increased on July 1st. Thanks to the Federal Energy Regulatory Commission (FERC) methodology, companies received a 4.58% bump to their tariffs, composed of a 1.93% value for PPI in calendar year 2014, plus 2.65% [1].
2. Refined products demand is up. Magellan Midstream Partners (NYSE:MMP), for example, reported that its refined products operating margin for 3Q 2015 was up $41.1 million versus the prior year period. The company notes that this is due to higher tariffs (see #1) and "record refined products shipments."
3. Projects are still being announced. Earlier this month, TransCanada (NYSE:TRP) publicized that it was chosen by Mexico's state-owned power company to build, own, and operate the Tuxpan-Tula Pipeline.
4. Drilling efficiencies have improved. As technology advances, producers are able to get more oil out of the ground at a lower cost and with less effort.
5. Alerian announced the Inaugural Ammy Awards!
6. The US has become a major player on the world oil stage. While some believe the US deserves the title of swing producer, this label is still up for debate. Most would agree though that the US has "triggered a once-in-a-generation change in the wider operating dynamic of the oil and gas business."
7. Some MLPs were able to swap their maturing debt for lower interest rate debt this year. For example, in early June, MarkWest Energy Partners (NYSE:MWE) shed its notes with interest rates as high as 6.75% for those carrying a 4.875% interest rate.
8. Times may be tight for oilfield workers and their families, but as a Facebook friend to countless oilfield wives, having husbands and fathers home for a bit has its advantages. Oilfield workers are sorely missed when they are away.
Is There Anything For MLP Investors To Be Thankful For This Year?
http://www.seekingalpha.com/article/3716466
The company can definitely continue buying its debt at a discount. No matter what the covenants state, getting an amendment to repurchase debt at a discount is probably one of the easier amendments to get and therefore the covenants are really not a material hurdle.
The company has growth possibilities through joint ventures with the Highlander project providing the most immediate (and visible) avenue for growth (starting with producing the current well at a higher rate).
Some of these projects provide the potential for reducing debt costs by spreading that debt over more production.
Still this will most likely be the year that determines the survival of the company and the attractiveness of the securities of the company to investors.
A lot of clarity, color, or any other description is just a few months away.
Without the financing interest costs, the company has a breakeven of $33/BOE which would allow a reasonable profit, even with current low commodity pricing.
Meant to say would have but said will. I thought that was a good deal.
Sadly I've heard that before. Either way there are some deep discounts to be had prior to the next upcycle.
Many good companies with component management will go under during this downcycle unfortunately. For this one I don't have a frank opinion at this time.
Hard not to in this climate. They have cut costs but off shore is still a brutal environment.