Today - Monday, May 4, 2015
- Broadcast revenues for Saturday's Floyd Mayweather-Manny Pacquiao fight might touch $300M, based on estimates of just how big the money-soaked event turned out to be worldwide.
- Co-promoters HBO (NYSE:TWX) and Showtime (NYSE:CBS) were still counting money today -- many buys come at the last minute -- but early pay-per-view buys indicated the matchup would surpass the previous record of 2.48M buys (2007 Mayweather-De La Hoya fight) as well as the revenue record of $152M (2013 Mayweather-Canelo Alvarez).
- Purchases came in fast and late enough that the fight itself was delayed Saturday night, to let networks process the transactions.
- Verizon (NYSE:VZ) said its purchases quintupled on Saturday, leading to its own PPV record of 250K buys.
- EOG Resources (NYSE:EOG) -0.9% AH after reporting better than expected Q1 earnings but lower than expected revenues, as lower commodity prices more than offset increased liquids production volumes, higher cash settlements from hedges and lower operating expenses.
- EOG says its capital spending plan remains on schedule to post a 40% Y/Y decrease in 2015, even though Q1 capex exceeded discretionary cash flow by $486M due to low commodity prices and service contract commitments.
- Says overall Q1 production volumes rose 8% Y/Y to 589.5K boe/day, driven by gains in the Eagle Ford shale and Delaware basin plays; says it will begin to increase well completions in Q3 if prices continue to improve, which would produce a "U" shaped production profile in 2015.
- The FCC has ruled to give Pandora Media (P +3.2%) the foreign-ownership waiver it needs to complete a $600K purchase for South Dakota radio station KXMZ-FM -- and thus lower its royalty bills.
- The waiver means Pandora can exceed the 25% foreign-ownership threshold that would otherwise prevent the sale. The FCC said it would "serve the public interest to permit a widely dispersed group of shareholders to hold aggregate foreign ownership in Pandora Media in excess of the 25 percent benchmark."
- Performance-right organizations were opposed to the move; Pandora pays ASCAP 1.85% of revenue and BMI 1.75%, which would have meant $33M last year.
- Previously: Bloomberg: FCC to pave way for Pandora to buy radio station (Apr. 27 2015)
- Syngenta (NYSE:SYT) fell 7.6% in today's trade, giving up some but not all of its 16% gain on Friday that was sparked by talk that Monsanto (NYSE:MON) had approached the company about a takeover.
- The biggest concern for regulatory approval may involve what would be an unprecedented market share in soybeans and corn seeds for the combined company, and analysts say SYT’s operations in those areas would appeal to a range of buyers including Dow Chemical (NYSE:DOW), DuPont (NYSE:DD), BASF (OTCQX:BASFY, OTCPK:BFFAF) and Bayer (OTCPK:BAYZF, OTCPK:BAYRY).
- Colin Isaac of Atlantic Equities says the deal he always expected to happen is a DuPont purchase of Dow's agriculture unit; CEO Andrew Liveris has suggested Dow is open to divesting the unit, and MON's becoming a much stronger competitor after an SYT takeover could be a catalyst for Dow to more seriously consider exiting the business, which Issac says would be prime pickings for DuPont and its Pioneer seed business.
- A $19.5B bid by DuPont for Dow’s ag sciences business could generate a 7% return on invested capital, according to a report by Laurence Alexander at Jefferies, while adding that such a move is less likely until agricultural markets improve from current trough levels.
- Jarden (NYSE:JAH) is on the move after hours, +5.2%, as Bill Ackman sings its praises at the Ira Sohn conference.
- Ackman says the company is "perpetually undervalued" because of the "incredible" track record of founder and Chairman Martin Franklin.
- He's reportedly styling Jarden -- a global consumer product firm -- as a mini-Berkshire.
- Previously: Jarden higher after posting satisfying Q1 results (Apr. 23 2015)
- American Tower (NYSE:AMT) has priced $1.5B in senior unsecured notes.
- Notes due 2020 (principal amount of $750M) priced at 2.8%, issued at 99.745% of face, and $750M in notes due 2025 priced at 4% and are being issued at 99.228% of face value.
- The company will use proceeds to repay obligations in its 2013 credit facility.
- Federal Reserve Chair Janet Yellen says that the Justice Dept. is joining in the probe of a leak of Fed meeting minutes to Medley Global Advistors in 2012 -- and that she was one of the Fed staffers in contact with the firm during that period.
- In her letter to House Financial Service Committee Chairman Jeb Hensarling, though, Yellen said she didn't leak confidential info.
- Medley sent a report to its clients in October 2012 including sensitive details of the September 2012 Fed minutes, one day before the rest of the world received them.
- Full Yellen letter
6:01 PM| Comment!
- Anadarko Petroleum (NYSE:APC) is little changed after-hours after reporting a wider than expected Q1 loss and a 60% Y/Y drop in revenues, hurt by the collapse in energy prices.
- Excluding one-time items - the largest was a $3.7B writedown of the value of the Greater Natural Buttes field in Utah - APC reported a loss of $0.72/share.
- However, APC says it delivered a quarterly record for sales volumes averaging 920K boe/day, a total of ~83M boe, vs. 789K boe/day in the year-ago period, with gains driven mostly by shale wells in the Wattenberg field in Colorado and the Eagle Ford in Texas.
- In the Wattenberg field, APC's sales volume increase totaled more than 85K boe/day Y/Y and more than 20K boe/day Q/Q, while lowering drilling and completion costs to $3.4M from $4M per well; in the Eagle Ford, APC achieved a new gross processed production record of more than 275K boe/day while reducing average drilling costs per well by 14% Q/Q.
- APC's overall operating expense per boe fell 17% in the quarter.
- Integrated Device Technology (NASDAQ:IDTI) has moved up 0.4% after hours after beating even raised expectations for its fiscal Q4 revenue, including record results in High Performance Computing/Data Center.
- The company cited design wins across its business units and its work growing momentum in new business around RF and wireless charging.
- R&D expense (non-GAAP) was $29.7M, sequentially flat and up slightly from a year-ago $28.6M.
- Cash and equivalents stood at $116.95M, compared to a year-ago $91.2M. The board recently increased buyback authorization to $300M, replacing the existing one that had $27M remaining.
- Shares had declined 2.1% today ahead of the release.
- Press release
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- Royal Dutch Shell's (RDS.A, RDS.B) bid to return to Arctic drilling for the first time in three years faces a new hurdle after Seattle's planning department rules that the city's port must apply for a permit for the company to use it as a hub for drilling rigs.
- Seattle mayor Ed Murray, a vocal opponent of new energy projects, says city planners reviewed the use of the port's Terminal 5 as a base for the drilling fleet and found it would violate the port's current 20-year-old land-use permit, which allows a cargo terminal on the site.
- Shell has been planning to base its fleet, including a drill rig and two tugboats, at Terminal 5 across from downtown Seattle for six months each year when it is not being used in the Arctic.
- While the port is expected to eventually get the permit, the process could take weeks or months and delay Shell's Arctic drilling this year.
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