Seeking Alpha

Steve Zachritz's  Instablog

Steve Zachritz
1,228 Followers
4 Following
Send Message
Steve Zachritz, "Zman", is an investor/trader who specializes in the energy sector. He has managed small cap growth portfolios, been an energy banker, and a sell side exploration and production analyst (Prudential and Jefferies) in his 20 years in the financial markets. His daily... More
My company:
Zman's Energy Brain, LLC
My blog:
Zman's Energy Brain
  • WHX Posts Better Than Expected 2Q Results 0 comments
    Aug 17, 2010 10:16 AM | about stocks: WHX
    This was originally published at zmansenergybrain.com on August 9th.

    Last quarter analysts at RBC and Raymond James cut the name to to Underperform after the trust missed their numbers. The math here is not hard and their expectations were simply too lofty. The fact that both analysts downgraded the stock days after the distribution but on the same day is telling as well. I continue to hold WHX with an average cost of $16.42, not counting the last couple of distributions.

    WHX Reports Better Than Expected 2Q Distribution

    • WHX announces $0.74 2Q vs $0.70 Street expectation and my $0.62 to as much as $0.65 number.
    • The variance to Street and me is a function of much higher than expected oil volumes. This appears to be inventories sold in 2Q that were produced in 1Q and should not be perceived as an actual rise in production.
    • Differential for oil came in almost to the penny as expected while gas was pleasantly above NYMEX. Going forward I have slightly reduced my differential to NYMEX for gas.
    • I have included a revised model below. Based on current price of $21.25, I put WHX's next twelve months yield at 13%
    • Assumptions are included with the models and followed by graphs of expected distributions, production, and oil and gas prices.


    2011…

     

     

     




    Disclosure: I am long WHX
    Themes: royalty trust, yield Stocks: WHX
Back To Steve Zachritz's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Full index of posts »
Latest Followers

Latest Comments


Most Commented
Posts by Themes
acquisition, bakken, Bakken, Bakken , Barnett, Barnett Combo, bossier, Bossier Shale, Brigham , brown dense, Brown Dense, Buda Lime, buyout, Coal, coal, coal , Codell, commodities, crude oil, dividend-ideas, dont-tag-as-pro, Eagle Ford, Eagle Ford shale, Eagle Ford Shale, eagle ford shale, East Montana, energy, Exshaw Shale, Fayetteville shale, Fayetteville Shale, granite wash, Gulf of Mexico, Gulf of Mexico shelf, Haynesville, Haynesville Shale, Horn River Basin, Lewis and Clark, Libya, long-ideas, M A, Majors, Marcellus, Marcellus Shale, mid bossier, Natural Gas, natural gas, natural gas storage, natural gas supply, Niobrara, niobrara,
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.