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Natural gas prices are up 100% since the bottom made in April.

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Based on this observation I screened for natural gas-related stocks with recent insider buying. Here is a look at 5 stocks that I found.

1. Cheniere Energy Partners (NYSEMKT:CQP) owns 100 percent of the Sabine Pass LNG terminal located on the Sabine Pass Channel in western Cameron Parish, Louisiana. The Sabine Pass LNG terminal has regasification and send-out capacity of 4.0 billion cubic feet per day (Bcf/d) and storage capacity of 16.9 billion cubic feet equivalent (Bcfe).

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Insider buys

Charif Souki's wife purchased 117,000 shares on November 15-16, and currently holds 400,100 shares of the company. Charif Souki is a Director, Chief Executive Officer and Chairman of the Board of the company's general partner.

Financials

The company reported the third-quarter financial results on November 2, with the following highlights:

Revenue$66.3 million
Net loss$42.4 million
Cash$369.1 million
Debt$2.3 billion

Competition

Cheniere Energy Partners' competitors include Chevron Corporation (NYSE:CVX) and McMoRan Exploration (NYSE:MMR). Here is a table comparing these companies.

CompanyCQPCVXMMRIndustry
Market Cap:5.71B203.74B2.03B4.82B
Employees:N/A61,0001191.30K
Qtrly Rev Growth (yoy):0.02-0.10-0.340.18
Revenue :267.85M224.77B414.64M2.11B
Gross Margin :0.680.300.600.28
EBITDA :122.20M48.51B70.89M405.80M
Operating Margin :0.300.16-0.240.09
Net Income :-89.67M24.06B-105.75MN/A
EPS :-0.5012.19-0.721.05
P/E :N/A8.54N/A23.51
PEG (5 yr expected):N/A-4.27-4.292.08
P/S :21.340.914.901.76

Cheniere Energy Partners' operating margin is above the industry average.

My analysis

The stock has a $9 price target from the Point and Figure chart. There has been one insider buy transaction and there have not been any insider sell transactions this year. There are two analyst buy ratings, 0 neutral ratings and 0 sell ratings for the company currently. The stock has a 8.18% dividend yield. I have a neutral bias for the stock currently based on the mixed technical and fundamental picture.

2. Midstates Petroleum Company (NYSE:MPO) is an independent exploration and production company focused on the application of modern drilling and completion techniques to oil-prone resources in previously discovered yet underdeveloped hydrocarbon trends. The company's operations are currently focused on oilfields in the Upper Gulf Coast Tertiary trend onshore in central Louisiana.

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Insider buys

  • John Crum purchased 50,000 shares on November 19, 50,000 shares on November 15, 50,000 shares on November 13, 25,000 shares on August 29, 25,000 shares on August 22, and 25,000 shares on August 16. John Crum currently holds 1,011,301 shares of the company. Mr. Crum has served as the company's President and Chief Executive Officer and as a member of board of directors since March 2011.
  • James Hart purchased 6,000 shares on November 15, and currently holds 108,599 shares of the company. James Hart is Vice President, Midstream.
  • Mitchell Elkins purchased 10,000 shares on August 16, and currently holds 58,076 shares of the company. Mitchell Elkins is Vice President, Drilling and Completions.
  • John Foley purchased 13,000 shares on August 16, and currently holds 602,737 shares of the company. Mr. Foley has served as the company's Corporate Counsel and Secretary since August 2003.

Financials

The company reported the third-quarter financial results on November 7, with the following highlights:

Revenue$25.9 million
Net loss$17.8 million
Cash$4.7 million
Debt$216.3 million

Outlook

For the remainder of 2012, the company intends to continue development of the Wilcox trend in Louisiana, with plans to drill 12 vertical wells at Pine Prairie, one horizontal sidetrack at South Bearhead Creek, one new horizontal well and one vertical sidetrack at North Cowards Gully, and one horizontal sidetrack at West Gordon. Development plans for the company's newly acquired Mississippian Lime play for the remainder of 2012 include the spudding of 12 horizontal wells in Oklahoma. The company also expects to continue optimizing its acreage positions in both trends.

Competition

Midstates Petroleum Company's competitors include Apache Corp. (NYSE:APA), Chesapeake Energy Corporation (NYSE:CHK) and Comstock Resources (NYSE:CRK). Here is a table comparing these companies.

CompanyMPOAPACHKCRKIndustry
Market Cap:406.27M29.93B11.34B817.29M49.44M
Employees:885,29912,60012453.00
Qtrly Rev Growth (yoy):0.16-0.04-0.25-0.020.16
Revenue :215.82M16.76B11.50B446.61M18.25M
Gross Margin :0.970.830.420.780.63
EBITDA :94.01M12.45B4.15B312.24M-55.00K
Operating Margin :-0.100.440.13-0.23-0.21
Net Income :-210.12M2.45B-768.00M-70.30MN/A
EPS :-3.206.28-1.20-1.52N/A
P/E :N/A12.18N/AN/A19.25
PEG (5 yr expected):24.561.524.34-1.140.74
P/S :1.871.780.991.814.73

Midstates Petroleum Company is trading below the industry average P/S ratio.

My analysis

The stock made a new 52 -week low one week ago. There have been nine insider buy transactions and three insider sell transactions this year. There are eight analyst buy ratings, one neutral rating and 0 sell ratings with a average target price of $20.43. The stock is trading at a forward P/E ratio of 614.00. The company has a book value of $5.30 per share, which could be a good entry point for the stock.

3. Sunoco Logistics Partners (NYSE:SXL) is a publicly traded master limited partnership formed in 2002 to acquire, own and operate a diverse mix of crude oil and refined products pipelines, and terminaling and storage facilities, as well as crude oil acquisition and marketing assets.

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Insider buys

  • Marshall McCrea purchased 12,000 shares on November 15. Marshall McCrea serves as a director of the company.
  • Michael Hennigan's wife purchased 7,200 shares on June 26. Michael Hennigan is CEO and President of the company.

Financials

The company reported the third-quarter financial results on November 7, with the following highlights:

Revenue$3.2 billion
Net income$134 million
Cash$2 million
Debt$1.6 billion

Competition

Sunoco Logistics Partners' competitors include Enterprise Products Partners L.P. (NYSE:EPD) and Plains All American Pipeline, L.P. (NYSE:PAA). Here is a table comparing these companies.

CompanySXLEPDPAAIndustry
Market Cap:5.23B46.09B15.45B4.82B
Employees:N/AN/A3,8001.30K
Qtrly Rev Growth (yoy):0.13-0.080.060.18
Revenue :13.30B43.10B37.24B2.11B
Gross Margin :0.060.080.060.28
EBITDA :699.00M4.29B1.80B405.80M
Operating Margin :0.040.070.040.09
Net Income :388.00M2.53B761.00MN/A
EPS :3.742.852.371.05
P/E :13.5018.1219.4923.51
PEG (5 yr expected):1.552.392.082.08
P/S :0.391.070.411.76

Sunoco Logistics Partners is trading below the industry average P/S ratio.

My analysis

The stock has a $35 price target from the Point and Figure chart. There have been two insider buy transactions and there have not been any insider sell transactions this year. There are seven analyst buy ratings, four neutral ratings and 0 sell ratings with a average target price of $50.43. The stock is trading at a P/E ratio of 13.54 and a forward P/E ratio of 15.40. The company has a book value of $12.34 per share and the stock has a 3.72% dividend yield. I have a neutral bias for the stock currently based on the mixed technical and fundamental picture.

4. MarkWest Energy Partners (NYSE:MWE) is a publicly traded master limited partnership formed in January 2002. The company is engaged in the gathering, processing and transportation of natural gas; the transportation, fractionation, storage and marketing of NGLs; and the gathering and transportation of crude oil.

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Insider buys

  • Donald Wolf purchased 1,000 shares on November 19, and currently controls 70,742 shares of the company. Mr. Wolf was elected to the Board of Directors in February 2008.
  • Keith Bailey purchased 5,200 shares on November 16, and currently holds 63,226 shares of the company. Mr. Bailey was elected to the Board of Directors in January 2005.

Financials

The company reported the third-quarter financial results on November 7, with the following highlights:

Revenue$283.7 million
Net loss$14.3 million
Cash$411.5 million
Debt$2.5 billion

Outlook

For 2012, the Partnership forecasts DCF in a range of $410 million to $430 million. The Partnership's portion of growth capital expenditures for 2012 has increased primarily due to accelerated spending on key expansion projects in the Marcellus Shale, and is forecast to be approximately $1.8 billion. This range excludes the Keystone purchase price of $509.6 million.

For 2013, the Partnership forecasts DCF in a range of $500 million to $575 million. The Partnership's portion of growth capital expenditures for 2013 is forecasted in a range of $1.4 billion to $1.9 billion.

Competition

MarkWest Energy Partners' competitors include DCP Midstream Partners (NYSE:DPM), Dynegy (NYSE:DYN) and Williams Companies (NYSE:WMB). Here is a table comparing these companies.

CompanyMWEDPMDYNWMBIndustry
Market Cap:5.92B2.51B1.80B20.72B274.05M
Employees:683N/A1,2624,293271.00
Qtrly Rev Growth (yoy):-0.20-0.350.02-0.110.33
Revenue :1.45B1.02B1.33B7.72B228.72M
Gross Margin :0.610.190.120.300.54
EBITDA :541.44M156.60M130.00M2.69B47.19M
Operating Margin :0.220.10-0.080.230.06
Net Income :112.45M63.50M-2.51B641.00MN/A
EPS :0.981.25-20.330.44N/A
P/E :51.3132.95N/A74.7312.20
PEG :1.711.130.401.780.60
P/S :4.072.461.352.683.10

MarkWest Energy Partners' operating margin is above the industry average.

My analysis

The stock has a $38 price target from the Point and Figure chart. There have been two insider buy transactions and there have not been any insider sell transactions this month. There are six analyst buy ratings, 0 neutral ratings and 0 sell ratings with a average target price of $58.42. The stock is trading at a P/E ratio of 109.43 and a forward P/E ratio of 28.28. The company has a book value of $18.16 per share and the stock has a 6.44% dividend yield. I have a neutral bias for the stock currently based on the mixed technical and fundamental picture.

5. Basic Energy Services (NYSE:BAS) provides well site services essential to maintaining production from the oil and gas wells within its operating area. The company employs more than 5,700 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, and the Rocky Mountain and Appalachian regions.

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Insider buys

  • James Dagostino purchased 3,500 shares on November 16, 2,000 shares on September 18, and 4,500 shares on July 30. James Dagostino currently holds 43,200 shares of the company. James Dagostino serves as a director of the company.
  • Kenneth Huseman purchased 10,000 shares on November 16, and currently holds 785,584 shares of the company. Kenneth Huseman has been the company's President and Chief Executive Officer and a Director since 1999.
  • Steven Webster purchased 20,000 shares on November 16, 50,000 shares on June 25-26, 76,200 shares on June 13-14, 175,000 shares on May 15-17 and 52,370 shares on April 23. Steven Webster currently holds 912,270 shares and serves as a director of the company.
  • Thomas Moore purchased 12,000 shares on November 8, and 33,000 shares on March 22 - June 18. Thomas Moore currently holds 104,000 shares and serves as a director of the company.
  • Robert Fulton purchased 10,000 shares on May 17, and currently holds 59,900 shares of the company. Robert Fulton serves as a director of the company.

Financials

The company reported the third-quarter financial results on October 25, with the following highlights:

Revenue$340.4 million
Net income$6.5 million
Cash$104 million
Debt$763.1 million

Outlook

Ken Huseman, Basic's President and Chief Executive Officer commented on November 15:

Due to additional operating days and the absence of a holiday in October, we generated sequentially higher rig and truck hours. Well service rig utilization began feeling the seasonal effect of shorter workdays during October with a full hour less of daylight available each day compared to September. We expect that well servicing utilization will decline to the mid-60% range in November and December as the result of declining daylight hours, and the impact of Thanksgiving and year end holidays, as well as the possibility of weather interruptions. Our average fluid service hours per calendar day per truck in October of 6.6 hours compared to 6.2 hours in September due to the absence of the holiday.

In general, the operating and pricing landscape continues to be competitive across all business segments. Customers are winding down their 2012 capital spending and will likely take advantage of extended holiday breaks, which will substantially reduce demand at year end. Customer plans for 2013 are starting to be announced, but there are still no indication as to the timing of their expenditures for next year. Our guidance for the fourth quarter and the beginning of 2013 remains the same as provided in our third quarter earnings release and conference call.

Competition

Basic Energy Services' competitors include Halliburton Company (NYSE:HAL), Key Energy Services (NYSE:KEG) and Nabors Industries (NYSE:NBR). Here is a table comparing these companies.

CompanyBASHALKEGNBRIndustry
Market Cap:407.10M29.42B927.83M3.97B388.48M
Employees:5,60070,00010,40023,4141.72K
Qtrly Rev Growth (yoy):-0.020.090.050.100.23
Revenue :1.43B28.28B2.09B7.13B445.89M
Gross Margin :0.360.180.330.360.31
EBITDA :353.48M6.47B455.51M2.08B63.42M
Operating Margin :0.120.170.120.150.11
Net Income :63.34M2.89B118.83M198.37MN/A
EPS :1.533.100.210.110.19
P/E :6.6410.2428.69121.0612.52
PEG (5 yr expected):-0.710.631.390.490.75
P/S :0.291.040.440.561.24

Basic Energy Services is trading below the industry average P/S ratio.

My analysis

The stock has a $4 price target from the Point and Figure chart. There have been 14 insider buy transactions and five insider sell transactions this year. The stock is trading at a P/E ratio of 6.64 and a forward P/E ratio of 13.80. There are eight analyst buy ratings, seven neutral ratings and one sell rating with a average target price of $21.10. The company has a book value of $9.27 per share, which could be a good entry point for the stock.

Source: 5 Natural Gas Stocks With Recent Insider Buying