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Since my November 26, 2012, article titled "5 Natural Gas Stocks With Recent Insider Buying", the stocks that I featured in the article have performed as follows:

CompanyPrice 11/23Price 4/10Change
Cheniere Energy Partners (CQP)$21.13$26.87+27.2%
Midstates Petroleum Company (MPO)$6.26$7.31+16.8%
Sunoco Logistics Partners (SXL)$50.58$65.06+28.6%
MarkWest Energy Partners (MWE)$50.84$60.82+19.6%
Basic Energy Services (BAS)$10.15$13.18+29.9%

In this article I will feature three additional energy stocks that have seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increase their holdings by more than 10%.

1. Callon Petroleum Company (CPE) engages in the acquisition, exploration, development and production of crude oil and natural gas properties.

(click to enlarge)

Insider buying by insider (last 30 days)

  • Fred Callon purchased 14,286 shares on April 8, and currently holds 53,113 shares or 0.1% of the company. Fred Callon has been Chairman of the Board of Directors of the company since May 2004 and President and Chief Executive Officer of the company since January 1997.
  • Joseph Gatto purchased 5,263 shares on April 4, and currently holds 6,404 shares or less than 0.1% of the company. Joseph Gatto is the Senior Vice President of Corporate Finance for the company.
  • Rodger Smith purchased 8,098 shares on March 26, and currently holds 32,795 shares or less than 0.1% of the company. Rodger Smith is a Vice President and also serves as the Treasurer for the company.

Insider buying by calendar month

Here is a table of Callon Petroleum's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
April 201319,5490
March 20138,0980
February 201300
January 201300

There have been 27,647 shares purchased and zero shares sold this year.

Financials

The company reported the full-year 2012 financial results on March 14, with the following highlights:

Revenue$110.7 million
Net income$2.7 million
Cash$1.1 million
Debt$110.7 million

Outlook

On March 14, 2013, Callon Petroleum issued guidance for the first quarter and full year 2013 as follows:

Q1/2013FY2013
Total production (Boe/d)3,400 - 3,6003,800 - 4,200
Permian (Boe/d)1,500 - 1,6502,000 - 2,300
% Oil65%65%

Competition

Callon Petroleum's competitors include Apache (APA), BP plc (BP) and Carrizo Oil & Gas (CRZO). Here is a table comparing these companies.

CompanyCPEAPABPCRZOIndustry Average (Independent Oil & Gas)
Market Cap:144.73M29.57B133.04B1.06B120.56M
Employees:875,97685,700208124.00
Qtrly Rev Growth (yoy):-0.100.020.05N/A0.06
Revenue:110.73M16.83B375.58B368.18M10.30M
Gross Margin:0.760.820.110.880.60
EBITDA:68.48M12.39B28.35B296.02M-1.12M
Operating Margin:0.140.410.040.350.13
Net Income:2.75M1.92B11.58B51.18MN/A
EPS:0.074.923.621.39N/A
P/E:51.8615.3411.5218.9530.67
PEG (5 yr expected):-5.701.231.720.442.90
P/S:1.311.760.352.8880.13

Callon Petroleum's P/S ratio is in the lower end compared to its direct competitors.

My analysis

There have been three different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. There are six analyst buy ratings, three neutral ratings and zero sell ratings with an average target price of $7.00. The stock is trading at a P/E ratio of 51.86 and the company has a book value of $5.18 per share. I believe the stock is a good pick below the book value.

2. MEG Energy Corp. (OTCPK:MEGEF) engages in the development and production of in situ oil sands in Alberta, Canada.

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Insider buying by insider (last 30 days)

  • Boyd Anderson purchased 1,000 shares on March 19, and currently holds 7,274 shares or less than 0.1% of the company. Boyd Anderson became a director of the corporation in June 2007.
  • Grant Boyd purchased 1,375 shares on April 5, and currently holds 4,593 shares or less than 0.1% of the company. Grant Boyd is Senior Vice President, Resource Management - Growth Properties.
  • Robert Hodgins purchased 1,300 shares on April 5, and currently controls 5,611 shares or less than 0.1% of the company. Robert Hodgins became a director in September 2010.

Insider buying by calendar month

Here is a table of MEG Energy's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
April 20132,6750
March 20131,0000
February 201300
January 201300

There have been 3,675 shares purchased and zero shares sold this year.

Financials

The company reported the full-year 2012 financial results on January 31, with the following highlights:

Revenue$1.1 billion
Net income$52.6 million
Cash$2.0 billion
Debt$2.5 billion

Outlook

MEG is targeting a 16% increase in annual production to approximately 32,000 to 35,000 bpd, with investments this year supporting longerÔÇÉterm targets of 80,000 bpd in early 2015.

Competition

The Canadian and international petroleum industry is highly competitive in all aspects, including the exploration for, and the development of, new sources of supply, the acquisition of oil sands leases and the distribution and marketing of petroleum products. MEG competes with producers of bitumen, synthetic crude oil blends and conventional crude oil. Some of the conventional producers have lower operating costs than MEG and many of them have greater resources to source, attract and retain the personnel, materials and services that MEG requires to conduct its operations. The petroleum industry also competes with other industries in supplying energy, fuel and related products to consumers. Some of these industries benefit from lighter regulation, lower taxes and subsidies. In addition, certain of these industries are less capital intensive.

My analysis

There have been three different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. There are 13 analyst buy ratings, three neutral ratings and zero sell ratings with an average target price of $47.50. The stock is trading at a P/E ratio of 116.93 and a forward P/E ratio of 22.23. The company has a book value of $22.12 per share. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

3. Oiltanking Partners, L.P. (OILT) provides storage, terminaling, and transportation services for third-party companies engaged in the production, distribution and marketing of crude oil, refined petroleum products and liquefied petroleum gas.

(click to enlarge)

Insider buying by insider (last 30 days)

  • Mark Leland purchased 1,000 shares on March 21 - April 5, pursuant to a Rule 10b5-1 trading plan. Mark Leland currently holds 8,500 shares or less than 0.1% of the company. Mark Leland serves as a director of the company.
  • David Griffis purchased 103 shares on April 5, pursuant to a Rule 10b5-1 trading plan. David Griffis currently holds 8,358 shares or less than 0.1% of the company. David Griffis has served as a member of the board of directors of the company's general partner since March 2011.
  • Anne-Marie Ainsworth purchased 1,000 shares on April 5, pursuant to a Rule 10b5-1 trading plan. Anne-Marie Ainsworth currently holds 4,000 shares or less than 0.1% of the company. Anne-Marie Ainsworth has served as President and Chief Executive Officer and a member of the board of directors of the company's general partner and as President and Chief Executive Officer of Oiltanking Holding Americas since November 2012.

Insider buying by calendar month

Here is a table of Oiltanking Partners' insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
April 20131,6030
March 20131,6050
February 20131,6160
January 20131,1280

There have been 5,952 shares purchased and zero shares sold this year.

Financials

The company reported the full-year 2012 financial results on March 6, with the following highlights:

Revenue$135.5 million
Net income$62.6 million
Cash$7.1 million
Debt$149.3 million

Outlook

Over the next several years the company is expecting to continue to see an increase in crude volumes to pipeline, rail car and truck and a continued growth in demand for product exports. The company is responding to this demand by constructing additional crude oil storage capacity and pipeline. In the fourth quarter of 2012 the company placed into service its new pipeline projects and three 275,000 barrel tanks, a fourth tank will go into service during the second quarter. Appelt Phase I is expected to be operational by the end of this year and Appelt Phase II is on track and is expected to be in service by the end of 2014. Phase II is similar in size to Phase I and the volume is also contracted with high quality customers on a long term basis.

Competition

Oiltanking Partners' competitors include Enbridge Energy Partners LP (EEP), Enterprise Products Partners L.P. (EPD) and Kinder Morgan Energy Partners, L.P. (KMP). Here is a table comparing these companies.

CompanyOILTEEPEPDKMPIndustry Average (Oil & Gas Pipelines)
Market Cap:1.95B9.05B54.21B33.70B39.48B
Employees:N/AN/AN/A10,68510.68K
Qtrly Rev Growth (yoy):0.18-0.15-0.040.310.00
Revenue:135.50M6.71B42.58B8.64B9.97B
Gross Margin:0.730.300.080.480.55
EBITDA:80.62M1.07B4.21B3.44B4.34B
Operating Margin:0.480.110.070.270.31
Net Income:61.16M369.20M2.42B591.00MN/A
EPS:1.571.272.71-0.220.35
P/E:31.8423.5022.35N/A109.86
PEG (5 yr expected):0.586.904.072.941.98
P/S:14.331.361.283.923.96

Oiltanking Partners' gross margin is above the industry average, which could explain some of the insider buying.

My analysis

The stock has a $68 price target from the Point and Figure chart. There have been four insider buy transactions and there have not been any insider sell transactions during the past 30 days. The stock is trading at a P/E ratio of 31.84 and a forward P/E ratio of 26.56. The company has a book value of $7.35 per share and the stock has a dividend yield of 3.12%. The 200-day moving average is currently at $38.54, which could be a good entry point for the stock.

Source: 3 Oil And Gas Stocks With Recent Intensive Insider Buying