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The Market Vectors Russia ETF (NYSE: RSX) has found itself under pressure when Turkey shot down a Russian jet on the Syrian border.
Russia is not expected to take this matter lightly, as one of the two pilots was shot to death from the ground, and one of the marines who took part in the rescue mission also died.
However, despite the fact that I have argued for an RSX bear thesis multiple times, I think this tragic incident will have limited consequences for the fund.
Tesoro (NYSE:TSO) said that it has agreed to purchase marketing and logistics assets of Flint Hills Resources, a subsidiary of Koch Industries, for an unspecified sum.
The deal includes all FHR wholesale marketing contracts in Alaska, an anchorage terminal with 580,000 barrels of storage capacity, an airport terminal with 22,500 barrels of jet fuel storage and a multi-year terminaling agreement related to the North Pole terminal.
New Jersey Resources (NYSE:NJR): FQ4 EPS of -$0.06 beats by $0.02.
Revenue of $438.31M (-25.9% Y/Y) misses by $173.02M.
Laclede (NYSE:LG): FQ4 EPS of -$0.37 misses by $0.02.
Revenue of $204.2M (-8.1% Y/Y) misses by $82.91M.
Seadrill Partners (NYSE: $SDLP): Q3 Net Income of $21.5M. Revenue of $456.5M (+34.1% Y/Y) beats by $51.52M.
North Atlantic Drilling (NYSE:NADL): Q3 EPS of -$0.01 misses by $0.02.
Revenue of $194.6M (-45.4% Y/Y) misses by $2.62M.
EMES announced an amended credit facility agreement last week which allows covenant relief through June 2017, and the firm now sees limited downside to the stock, given that the partnership's banking group allows EMES to operate through the current environment.
However, the amended credit agreement restricts the ability to pay distributions and borrow capital, and requires the partnership to drive quarterly EBITDA growth through March 2018; starting from Q4 2015, EMES needs to generate $2M in EBITDA.
$TSO - Tesoro moves a step closer to a final decision on its proposal to build a 360K bbl/day crude-by-rail terminal in Washington state that would be the largest in the U.S., as a state council today released a major government review of the project.
The project would move U.S. and Canadian crude by train to Washington's Port of Vancouver on the Columbia River, where it would be transferred to vessels to feed west coast refineries, largely in California.
The report, which does not take a position on the project, opens a 45-day public comment period, after which Washington's Energy Facility Site Evaluation Council will submit its final report and recommendation to Gov. Inslee, who has the final decision on whether it will be built.
Tesoro a step closer to proposed largest U.S. crude-by-rail terminal
http://www.seekingalpha.com/news/2950856
Platinum Group Metals (NYSEMKT:PLG): FQ4 EPS of $0.00 in-line.
The board has approved an operated drilling and completion capital budget of $70M for drilling nine gross wells through the first half of 2016, and completing 18 gross wells through Aug. 2016, This compares to $171M through Aug. 2015.
Development next year will be focused on natural gas drilling and completion activities in North Louisiana and East Texas where the company is targting 20-35% rates of return.
Peter Delaney, who stepped down as OGE Energy's (OGE +0.4%) CEO in June, has now also resigned as chairman.
Sean Trauschke, Delaney's successor as CEO, is OGE's new chairman. Delaney will remain on the board until the end of Q1 2016.
Though Seadrill pointed to "challenging" market conditions through 2016, it sees some recovery the year after.
But customer rig spending would need to increase 30% from 2016 estimates just to get back to 2015 levels.
Analyst Gregory Lewis reduced EPS estimates for 2015 to $1.20 from $1.40, and for 2016 to $2.15 from $2.30 "to account for updated downtime and utilization assumptions."
Energy analyst Phil Adams is still rating the bonds Underperform, calling the MLP a "hostage" to commodity prices that he expects will stay low.
"ETP is the anchor of ETE’s midstream empire," Adams writes. "But with ETP’s unit price down a net 42% so far in 2015, issuing equity in balance with debt to finance growth capex is unattractive.
ETP’s units probably won’t recover until energy commodity prices trend higher, and ETP’s bond spreads won’t likely recover significantly before ETP’s equity."
Enbridge (ENB -1.1%) says it's acquired 100% interest in the New Creek Wind Project, an under-development 103-megawatt wind farm, from EverPower Wind Holdings.
Enbridge is in for about $200M on the West Virginia project, which is backed by renewable energy credit sales and off-take agreements with fixed pricing. It gives Enbridge an interest in a total near 2,000 megawatts of net renewable generating capacity.
The project comprises 49 turbines and is expected to be in service in December 2016.
PetroChina (NYSE:PTR) says it plans to sell a 50% stake in a pipeline company for as much as 15.5B yuan ($2.4B), as parent company China National Petroleum seeks to complete asset sales before year-end to meet government-set annual profit goals.
The decision comes as China’s oil companies try to shore up their balance sheets amid lower oil and gas prices that have weighed heavily on earnings this year; it also marks the start of long-awaited industry reforms that aim to make China’s energy giants leaner and more profitable through divestment of pipeline and potentially other assets.
PTR also discloses the resignation of CFO Yu Yibo, to be replaced by Zhao Dong, who ran a unit of CNPC.
$HAL $ SLB $WFT $BHI - Susquehanna analysts suspect that international oil exploration will be even weaker than expected, prompting them to reduce estimates for oil services companies Halliburton (NYSE:HAL), Schlumberger (NYSE:SLB), Weatherford International (NYSE:WFT) and Baker Hughes (NYSE:BHI).
The firm expects activity levels to steadily drift lower in 2016, as national oil companies and international companies slow spending in order to manage cash flows; NOCs generally operate on annual budgets that are not typically subject to much revision, so the larger international operators will be looking for a sustained move higher in oil prices before ramping up spending and activity levels, Susquehanna says.
The firm's 2016 EPS forecast for SLB slips to $2.50 from $2.78, for WFT falls to a loss of $0.60 from a loss of $0.51, for BHI to a loss of $0.17 from a loss of $0.16, and for HAL to $1.16 from $1.17.
Weekly: EIA Petroleum Inventories:
• Crude +1.0M barrels vs. +0.6M consensus, +0.3M last week.
• Gasoline +2.5M barrels vs. +1.36M consensus, +1M last week.
• Distillates +1.0M barrels, -0.8M last week.
• Futures -2.15% to $41.95.
Weekly: EIA Natural Gas Inventory: +9 Bcf vs. +6 Bcf consensus, +15 Bcf last week. Futures -0.02% to $2.32
All I know is uranium. Denison is doing well by continuing the exploration and expansion work at its sites and mills.
The acquisition of Fission Uranium will give it a greater access to the abundant and high grade Athabasca mining region and significantly improve its production profile.
Thus, driven by the uranium price recovery and a stronger production base, Denison's prospects look bright going forward.
In low oil price environment alternative energy sources drop off almost every time. It's unfortunate really. So far as global production just remember it declines naturally at about 5% a year and demand is growing about 2% a year. Rebalancing is coming it's just s matter of when in my opinion.
The recent moves are in line with the company's possible plans to grow throughout the U.S. and not just stay in the Carolina, southeast area.
By establishing itself in the gas industry, Duke is scaling itself for the long-term next step in its growth, which may be to take the company nationwide.
This move would not be any time in the near future, as Duke must first establish itself in the gas industry.
I think the bigger concern outside of rebounding oil prices is their ability to manage cash flow and debt service.
Thanks for the comments and happy Thanksgiving to y'all!
Graco's 3rd-quarter results illustrate this theme. While investors did not expect margins to decline as much as they did, which resulted in a 15% decline quarter-on-quarter in net earnings, top-line growth fared better, with a 5% increase quarter-on-quarter.
In fact, adjusting for currency changes, the company increased its top-line 11% quarter-on-quarter and 10% so far for the year, which is very good for a company in the industrials arena.
Currency volatility has been affecting many companies that have global operations, so this sort of dampened result should be considered short-term to investors.
$EQT - interest look at EQT Corp. Which is expected to have a stunning 99% of its production come in as natural gas. Its superior cost structure and above-average growth may help its exploit stable and rising natural gas prices.
With an increasing reserve structure and a projected higher number of Marcellus wells to be drilled in the coming five years, the company exhibits industry-leading organic growth momentum.
With more than 125 years of experience, EQT continues to be a leader in the use of advanced horizontal drilling technology.
This technology is designed to minimize the potential impact of drilling-related activities and reduce the overall environmental footprint, something that is very shareholder friendly. Plus, the company is a low-cost producer with a very strategic midstream presence.
EQT’s midstream holdings are considered among the best in the industry. It completed the IPO of the general partner back in May and it carries an $8.3 billion valuation.
With a $1.75 billion stake in Equity Midstream Partner, the company has a combined $10 billion in midstream holdings.
EQT investors are paid a small 0.2% dividend.
$RICE -This one has started to catch some upgrades recently around Wall Street. Rice Energy Inc. is an independent natural gas and oil company engaged in the acquisition, exploration and development of natural gas, oil and natural gas liquid (NGL) properties in the Appalachian Basin.
As of December 31, 2014, it held approximately 86,000 net acres in the southwestern core of the Marcellus Shale, Pa., and approximately 55,000 net acres in the southeastern core of the Utica Shale located in Belmont County, Ohio.
This one has started to catch some upgrades recently around Wall Street. Rice Energy Inc. (NASDAQ: RICE) is an independent natural gas and oil company engaged in the acquisition, exploration and development of natural gas, oil and natural gas liquid (NGL) properties in the Appalachian Basin.
As of December 31, 2014, it held approximately 86,000 net acres in the southwestern core of the Marcellus Shale, Pa., and approximately 55,000 net acres in the southeastern core of the Utica Shale located in Belmont County, Ohio.
Investors could consider this defensive natural gas stock. Range Resources Corp. (NYSE: RRC) holds interests in developed and undeveloped natural gas and oil leases in the Appalachian and Southwestern regions of the United States.
The company owns 7,582 net producing wells and approximately 1.4 million net acres under lease in the Appalachian region, as well as 653 net producing wells and approximately 383,000 net acres under lease in the Midcontinent region.
Southwestern has invested heavily in the Marcellus play, where it holds leases in approximately 337,300 net acres.
Reports indicate that it has increased its acreage in the Marcellus Shale in Pennsylvania by acquiring interest from other stakeholders.
Southwestern’s gas production increased to 766 Bcf in 2014 from 656 Bcf in 2013. This will provide the company exposure to a play with a low-cost structure and additional acreage.
It also is involved in the gathering, marketing and transporting natural gas and oil and natural gas liquids.
As of December 31, 2014, Southwestern had pipelines of 2,017 miles in Arkansas, 105 miles in Pennsylvania, 25 miles in Texas and 16 miles in Louisiana in its gathering systems.
Analysts have been surprised after this company actually raised its capital expenditure budget for 2015.
There could be some serious upside to the stock if it traded to the multiple the peer group trades at.
Southwestern Energy Co. explores, develops and produces natural gas and oil in the United States.
Well positioned in my opinion.
I agree with your sentiments.
Haha maybe in what regards? Goldman always playing an angle.
I agree with the follow up post that was made saying the operable work is IF. In this climate debt is nearly wiping out most equity look at $HERO as a good industry comp.
You have some good points. Happy thanksgiving y'all.
$NG_F - I would tend to agree. They have a much higher demand in Europe and they are in need of alternative sources compared to Russian imports.
The value proposition here is strong I would agree. Happy thanksgiving y'all.
Good info. I'll take a closer look. Happy thanksgiving y'all.
Good strategy so far.