New Source Energy moves higher despite huge Q2 loss

• New Source Energy Partners (NSLP +14.5%) is higher despite reporting a huge Q2 loss and filing to delay its Form 10-Q.
• NSLP said its Q2 adjusted EBITDA was $6M vs. $11.4M in the prior-year period, and distributable cash flow totaled $4.9M vs. $6.6M a year ago, citing weak oilfield services results coupled with lower oil and gas realizations; reduced H2 guidance reflects lower production and lower oilfield services margins.
• Wunderlich retains its Hold rating for NSLP but cuts its stock price target to $1 from $2.50 as it sees very limited financial flexibility, but it models 1.3x coverage for the Series A preferred distribution for H2.
• Baird downgrades shares to Neutral, along with JP Energy Partners (JPEP -20%) and Cone Midstream (CNNX -3.5%).