Southwestern Energy (SWN +9.5%) is surging after reporting a lighter than expected Q2 loss and raising its full-year production guidance.
After halting exploration in H1 as it focused on strengthening its balance sheet, SWN says it is now operating a rig in northeast Appalachia and plans to increase its company-wide rig count to five by the end of Q3.
SWN raises its FY 2016 production forecast by ~5% to to 865B-875B cfe, mostly the result of the strong portfolio performance.
“The company is now prepared to return to growth," says RBC analyst Scott Hanold.
J.P. Morgan upgrades shares to Neutral from Underweight, citing the company's "strong" Q2 report.
Dish Network (NASDAQ:DISH) is holding serve (up 0.2%) after a mini-rally following earnings that disappointed many analysts, if not those trading the stock.
After an initial dip in the wake of a report where the company missed on revenues and showed some substantial subscriber losses, shares rallied yesterday to gain 3.3%.
That's out of place, Wunderlich says as it downgrades shares to Sell. Streaming service Sling TV looks weak, says analyst Matthew Harrington, and over-the-top competitors -- especially DirecTV Now, with access to around 100M AT&T mobile customers -- will present a challenge to growing it.
The company is "being quite economically rational in emphasizing high-ROI customer acquisition and retention, but tail value is still deteriorating," Harrington writes. "Lower gross customer activity temporarily raises EBITDA, but a gradually deteriorating customer installed base compromises end value." The firm values the satellite and Sling businesses with a -2.5% terminal growth rate.
Harrington has a $48 price target on shares, about 10.8% downside from today's price.
Husky Energy (OTCPK:HUSKF +0.9%) is higher after reporting a Q2 loss that was smaller than its Q1 result, as it says it fortified its balance sheet, reduced its earnings breakeven oil price and lowered its sustaining and maintenance capital requirements during the quarter.
Husky says its Q2 production fell 6% to 316K boe/day, as the Alberta wildfires in May forced the shutdown of the Sunrise oil sands operation; it maintains its 2016 production guidance of 315K-345K boe/day, but expects it will be at the low end of the range.
Meanwhile, Husky has shut down a pipeline that spilled ~1,500 barrels of heavy crude mixed with a thinning agent into the North Saskatchewan River.