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Sarfaraz A. Khan  

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  • Gulfport Energy: Stellar Growth Story Continues
    Yesterday, 6:29 PM GPOR Comment!

    Summary

    • Gulfport Energy has recently released strong fourth quarter results.
    • Gulfport Energy has cut 2015 CapEx by 40%, but could still post up to 100% increase in production.
    • Despite weak commodity prices, the company’s growth story is not coming to an end. Here’s why.
  • Oceaneering International: Honesty Isn't Always The Best Policy
    Thu, Feb. 26 OII 3 Comments

    Summary

    • Oceaneering International has predicted a substantial drop in earnings.
    • The company’s businesses will come under pressure as demand drops due to cheap oil.
    • Can Oceaneering survive the storm?
  • Chesapeake Energy: Not The Same Old Story
    Thu, Feb. 26 CHK 8 Comments

    Summary

    • Chesapeake Energy has disappointed investors with a poor quarterly performance and grim outlook.
    • The negative reaction from investors is understandable, given Chesapeake’s history.
    • But the markets may have overreacted.
  • Will EP Energy Rise Due To Extraordinary Hedges Or Sink Under The Pile Of Debt?
    Wed, Feb. 25 EPE Comment!

    Summary

    • EP Energy has delivered a decent performance so far.
    • EP Energy has hedged nearly 96% of its 2015 production.
    • The company, however, has a massive pile of debt.
    • Can it survive the downturn?
  • 3 Reasons Why Undervalued PDC Energy Should Be Your Pick For The Downturn
    Tue, Feb. 24 PDCE 5 Comments

    Summary

    • PDC Energy has an attractive core asset base.
    • The company offers top-tier production growth, even in a cheap oil price environment.
    • PDCE sports a healthy balance sheet.
  • Is It Time To Sell Diamondback Energy?
    Tue, Feb. 24 FANG 2 Comments

    Summary

    • Diamondback Energy has recently reported disappointing fourth quarter results.
    • Wexford Capital, one of the leading shareholders of Diamondback Energy, has significantly reduced its stake in the company.
    • Should investors also consider selling this stock?
  • GE Director Makes A Big Bet On His Company; Should Investors Join?
    Tue, Feb. 24 GE 87 Comments

    Summary

    • It’s always a good idea to keep track of the insider buying activity.
    • General Electric’s director purchased 800,000 shares of the company for nearly $20 million.
    • General Electric’s shares haven’t moved yet.
    • Could this be an opportunity for investors?
  • Did Marathon Oil Make The Right Move By Making Another Cut To Capital Expenditure?
    Mon, Feb. 23 MRO 2 Comments

    Summary

    • Marathon Oil is going to slash its 2015 capital expenditure budget by another 20%.
    • Marathon Oil has a strong balance sheet, with low-debt and around $5 billion of liquidity.
    • Marathon Oil is going after preserving its financial health in the downturn.
  • Even $45 Oil Can't Hurt Devon Energy's Balance Sheet
    Mon, Feb. 23 DVN 3 Comments

    Summary

    • Devon Energy’s fourth quarter earnings came in short but production exceeded expectations.
    • Devon Energy has significantly reduced its capital budget for next year.
    • Devon Energy, however, is in a position to not only survive, but also grow its production in the downturn.
  • 4 Reasons You Need To Keep An Eye On Cimarex Energy
    Mon, Feb. 23 XEC 1 Comment

    Summary

    • Cimarex Energy has given conservative production guidance.
    • The company has one of the best balance sheets in the sector and high-quality assets.
    • XEC could emerge stronger at the end of the downturn, just like 2009.
    • Is it a buy?
  • Rio Tinto Has Delivered On Its Promises, Now What?
    Thu, Feb. 19 RIO 2 Comments

    Summary

    • Rio Tinto has rewarded shareholders with cash returns while improving its financial health.
    • Rio Tinto may continue to struggle with weakness in iron-ore prices, currently at six-year lows.
    • The big-four iron-ore producers will continue growing supplies, despite low prices.
  • Oil Prices: So Much For Stability
    Thu, Feb. 19 4 Comments

    Summary

    • Oil prices were reacting positively to capex cuts and drop in rig counts.
    • The latest crude inventory numbers, however, for the U.S. following the budget cuts and drop in rig count has taken the market by surprise.
    • The markets appear to be reading too much into the Baker Hughes’s rig count data.
  • 3 Reasons Spirit Airlines Will Continue Flying High, Even In The Long Run
    Thu, Feb. 19 SAVE 6 Comments

    Summary

    • Spirit Airlines has recently released its strong quarterly results.
    • With a low-cost structure and unbundled revenue strategy, Spirit Airlines has a sustainable competitive advantage.
    • But the company's growth story is just beginning.
  • TransGlobe Energy: Don't Be Fooled By The Big Yemen Write-Off
    Tue, Feb. 17 TGA 27 Comments

    Summary

    • TransGlobe Energy has recently written off the value of the Yemen asset to zero.
    • This has led to a 26% drop in the size of the company's reserves.
    • But a deeper look into the company's operations reveals that TransGlobe Energy is actually moving in the right direction.
  • Precision Drilling Is Down But Not Out
    Tue, Feb. 17 PDS 1 Comment

    Summary

    • Precision Drilling expects 2015 to be the toughest year of the decade.
    • The company’s revenues and earnings could drop by 40% this year.
    • But the company could hold up better than most.
  • Permian Basin Producer Energen Delivers Mixed Earnings, But Outlook Remains Strong
    Tue, Feb. 17 EGN Comment!

    Summary

    • Energen managed to beat earnings, but failed to meet production estimates.
    • The company’s first quarter production guidance was also below expectations.
    • But the company is prepared to ride out the storm.
  • Forum Energy Technologies Faces Significant Drop In Revenues But There's A Silver Lining
    Tue, Feb. 17 FET Comment!

    Summary

    • Forum Energy Technologies has recently reported its fourth quarter results that failed to meet market’s expectations.
    • Strong backlog in some of the key products can soften the blow of low oil prices, but this advantage will eventually evaporate.
    • The company, however, is in a better position due to self-help initiatives.
    • Look for signs of the stock bottoming.
  • 2014 Was Bad, 2015 Will Be Worse; Here's How Atwood Oceanics Is Positioned
    Thu, Feb. 12 ATW 3 Comments

    Summary

    • Analysts at Raymond James have given a grim forecast for the future.
    • Atwood Oceanics has also stated that it is not expecting a recovery over the next two years.
    • Will this impact Atwood Oceanics and its fresh dividend program?
  • Swift Energy: The Good, The Bad, And The Ugly
    Thu, Feb. 12 SFY 4 Comments

    Summary

    • Swift Energy has made one of the biggest cuts in 2015 capital expenditure as compared to other oil and gas producers.
    • The company’s production is set to decline in the coming years, but not by as much as its budget cut would suggest.
    • The company’s revenues and cash flow per share will be lower, with losses in the coming years.
    • But that’s not Swift Energy’s biggest problem.
  • National Oilwell Varco Faces Revenue Decline, But Is Priced Attractively For Long-Term Investors
    Wed, Feb. 11 NOV 3 Comments

    Summary

    • National Oilwell Varco has recently reported strong quarterly results.
    • National Oilwell Varco, however, is facing major headwinds.
    • The company, like its peers, has shied from giving full year’s outlook, but it’s not difficult to predict decline in rig systems revenues.
    • The future of remaining segments isn’t looking any brighter.
  • Alpha Natural Resources Outlook: Expect More Losses And No Respite From Weak Coal Prices
    Tue, Feb. 10 ANR 8 Comments

    Summary

    • Alpha Natural Resources has recently closed two mines.
    • Alpha Natural Resources is facing worsening thermal coal fundamentals and record low prices for met coal.
    • The market is not expecting any profit in the foreseeable future.
    • Alpha Natural Resources' debt has exacerbated its woes.
    • Shares have fallen by ~80% over last twelve months but are not cheap, in terms of EV/EBITDA.
  • 2 Factors That Can Fuel Truck Maker Paccar's Growth; Wait For A Drip
    Sun, Feb. 8 PCAR 1 Comment

    Summary

    • The latest truck order numbers have been in-line with expectations.
    • Paccar will continue to grow on the back of strength in North American market.
    • The company is facing major headwinds in the international markets, but there is room for optimism.
  • Pain In Store For Helmerich & Payne, Can It Withstand The Downturn?
    Thu, Feb. 5 HP 9 Comments

    Summary

    • Helmerich & Payne has been recently downgraded by Citigroup.
    • Helmerich & Payne has also given a grim forecast for the future.
    • Don’t rule out this 90-year old company yet.
  • Steel Producers: Something's Gotta Give
    Thu, Feb. 5 CLF, MT, NUE 5 Comments

    Summary

    • Steel imports during January have climbed to 3.93 million tonnes, setting several records.
    • The anti-dumping duties on Korea are not having any meaningful impact.
    • Imports will likely continue to rise in the foreseeable future.
  • China's Offshore Oil Giant CNOOC To Cut CapEx By Up To 35%... Here's What It Shows
    Wed, Feb. 4 CEO 1 Comment

    Summary

    • CNOOC has made a sharper than expected cut in its 2015 capital expenditure plan.
    • The company will, however, post 10% to 15% growth in oil and gas production.
    • This is a positive development.
    • This could also be the end of the Chinese deal-making activity in the international markets.
  • TransCanada: What's Next After The Looming Presidential Veto Of Keystone XL Pipeline?
    Tue, Feb. 3 TRP 16 Comments

    Summary

    • TransCanada's Keystone XL has received a majority “yes” vote from Senate, but it will likely get vetoed by President Obama.
    • There are several things the company can do, including asking for remedies under the North American Free Trade Agreement.
    • Further delays, however, will not jeopardize TransCanada's future as the company has bigger and better projects in its capital program.
  • Despite Skepticism On ECB's QE, There's Reason For Optimism
    Fri, Jan. 30 EU 4 Comments

    Summary

    • Last week, ECB launched its highly-anticipated 1.1 trillion euro QE program.
    • Due to certain fundamental differences, the QE program might not be as effective for the euro zone as Fed’s program has been for the U.S.
    • However, ECB has kept its program open-ended.
    • History suggests the size of ECB’s QE will eventually grow significantly.
  • Baker Hughes, After Best-In-Class Margin Expansion, Is In A Strong Position To Weather The Slump
    Thu, Jan. 29 BHI 7 Comments

    Summary

    • Baker Hughes outperformed its rivals in terms of margin expansion.
    • Baker Hughes is exposed to expected reduction in drilling activity at home and abroad.
    • Relative strength in the Middle East and limited exposure to troubled markets (such as Libya) is encouraging.
    • The company could generate $2.6 billion of free cash flow in 2015.
    • Is it a buy?
  • Foreign Currency Headwinds Take The Spotlight In Drug Maker Earnings
    Wed, Jan. 28 ABT, BMY, JNJ Comment!

    Summary

    • On an average, S&P 500 companies generate 38% of their revenues from outside the U.S., which leaves their bottom-line exposed to rising dollar.
    • Several leading drug makers, on the other hand, generate a majority of their revenues from international markets.
    • Rising dollar has already hit Pfizer & Johnson & Johnson's earnings while Merck and Abbott will also likely report similar numbers in the coming days.
  • Housing Market Disappointed In 2014, But This Year Could Be Better
    Mon, Jan. 26 LEN, KBH, VMC 1 Comment

    Summary

    • The housing market did not provide the much needed boost to the economy due to a number of factors.
    • However, a recent report from the Commerce Department, persistent decline in unemployment rate and other factors could accelerate housing recovery in 2015.
    • There are several stocks to watch in this space.
  • Target: Exit From Canada Was The Low Hanging Fruit
    Sun, Jan. 25 TGT Comment!

    Summary

    • Target has recently revealed that it is going to close its loss-making Canadian business.
    • This is a positive development which will lift the company’s earnings and cash flows in the coming years while allowing it to focus on its U.S. business.
    • This, however, was a quick fix.
  • Update: Halliburton Earnings Show Margin Strength, Expect Layoff Figures In Q1
    Thu, Jan. 22 HAL Comment!

    Summary

    • Halliburton released is first quarter results that were better than market’s expectations.
    • The company’s revenue growth from North America was flat sequentially and operating margins in its key markets continued to improve.
    • This was anticipated in the original article.