It was "pipeline theater at its finest" when TransCanada (NYSE:TRP) officially filed its Energy East application to the National Energy Board yesterday - 30K pages in 68 binders in 11 boxes, with panels of top executives in Toronto and Quebec City to explain the benefits - Financial Post's Claudia Cattaneo writes.
The company pulled out all the stops "but that’s what it takes these days to get a pipeline approved [in] a social license obsessed world."
The 4,600 km pipeline would carry 1.1M bbl/day of crude from Alberta and Saskatchewan to refineries in Quebec and New Brunswick, and reduce Canada’s dependence on the U.S. oil market by enabling exports to Europe and the Far East.
There was little reaction to the company's Q3 about inline earnings results yesterday, but Medical Properties Trust (MPW +2.7%) is gaining in today's session as JMP Securities - looking like it's a believer in MPW's $1B+ in recent deals - upgrades to Market Outperform.
Ellie Mae (NYSE:ELLI) beat Q3 estimates and guided for Q4 revenue of $41M-$42M, above a $39.5M consensus. But EPS guidance of $0.15-$0.18 is well below a $0.29 consensus.
On its CC (transcript), the mortgage origination software provider noted it's investing heavily to grow its sales to enterprise lenders. Expenses related to the acquisition of mortgage information provider AllRegs are also expected to ding EPS, as is a higher tax rate.
Active users of ELLI's Encompass mortgage origination platform rose 11% Y/Y in Q3 to 104.1K, and revenue per active Encompass user grew 17% to $419. Industry origination volumes are expected to be down 15% Q/Q and 20% Y/Y in Q4.
UBS has put aside the most of any single bank this month - $1.9B. Next in line is Deutsche Bank (DB +0.7%) with $1.1B, and JPMorgan (JPM +1.3%) with $1B. None of the lenders disclosed exactly how much was specifically for foreign exchange, and none have yet been formally accused of wrongdoing.
Barclays (BCS +5.6%) reserved $800M for FX-related settlements, and Credit Suisse (CS +0.5%) $400M.
Walter Energy (WLT -2.2%) opens sharply lower as BB&T downgrades shares to Underweight from Hold, believing WLT will run out of cash in the next 12 months and that the best alternative is to restructure with some cash on the balance sheet to exit as a stronger company.
BB&T says WLT needs a met coal price of ~$170/metric ton vs. the current $109.50spot price, making a restructuring "the only right choice."
Cowen cuts its price target to $3.50 from $5.50, saying better than expected Q3 results show WLT is managing reasonably well through the downturn but a met coal recovery is likely to be drawn out (Briefing.com).
Q3 core FFO per share of $2.11 is up 9.9% from a year ago.
Same-store (1,982 of them) operating metrics: Rental income up 5.6% Y/Y, Operating costs up 0.8%, NOI up 7.3%, gross margin of 73% up 180 basis points. Square foot occupancy of 94.7% up 30 bps, realized annual rental income per occupied square foot of $15.25 up 5.3%, per available square foot of $14.44 up 5.6%.
Brazilian paper Folha de S. Paulo reports America Movil (AMX +1.6%), Telefonica's (TEF +1.2%) Vivo (VIV +4.9%), and Oi (OIBR +12.3%) have agreed in principle to pay R$31.5B ($13.1B) to acquire and break up TIM Participacoes (TSU +8.6%), Telecom Italia's (TI +2.9%) Brazilian unit.
The paper adds a formal offer will be made to TI shareholders. TI chairman Giuseppe Recchi says his firm hasn't yet received an offer. TIM's market cap is currently at $12.5B.
AMX would reportedly keep 40% of TIM, Telefonica 32%, and Oi 28%. Rumors of a joint bid have been around for weeks, as Brazilian carriers dealing with slowing growth and price wars bet consolidation will improve their fortunes.
Markets are responding well to the report. Oi merger partner Portugal Telecom (PT +8.9%), whose main asset is a stake in the combined company, is also rallying.