Seeking Alpha
  • Today - Wednesday, October 22, 2014

  • 7:03 PM
    • Core Labs (NYSE:CLB) -7.9% AH after reporting mixed Q3 results but offering reduced guidance for Q4.
    • CLB now sees Q4 EPS of $1.53-$1.56 vs. $1.61 analyst consensus estimate and lowered from a prior outlook for $1.56-$1.61, on revenues of $275M-$280M vs. $292M consensus; also sees Q4 operating margin of 33%, exiting the year at 34%.
    • CLB expects Q4 North American activity will continue to increase slightly for emerging unconventional oil plays while remain at stable levels in established unconventional tight oil and gas plays; internationally, flat activity levels are seen through year-end 2014 and entering 2015 in response to weaker Brent crude prices.
    | Comment!
  • 6:52 PM
    • Nabors Industries (NYSE:NBR) fell today along with most energy companies as oil prices resumed their recent slide, but CEO Anthony Petrello sees something of a silver lining through the market for the company's advanced drilling rigs.
    • If oil prices hover ~$80/bbl, producers will aim to drill more efficiently, prompting them to turn to NBR’s newest models - which may offset declines in U.S. drilling activity - Petrello said in today's earnings conference call.
    • "We can’t eliminate the risk [of falling commodity prices] but we can do our best to minimize it," the CEO said.
    • The advanced rigs may be eating into the U.S. market for old mechanical models, but some of the aging units have found a home in North Dakota, where Petrello says "they perform really well, [and] we’re going to keep running them until they’re no longer useful.”
    | Comment!
  • 6:37 PM
    • Occidental Petroleum (NYSE:OXY) says Q3 profit fell at the California oil producer it will spin off to shareholders next month, as crude oil prices slid and production costs increased.
    • California Resources Corp., as the unit will be known when it becomes a stand-alone company, reports Q3 net income of $188M vs. $235M in the year-ago quarter.
    • Oil wells in California accounted for ~20% of OXY’s worldwide output last year and 17% of the capital budget.
    • OXY will report Q3 full-company results tomorrow.
    | 1 Comment
  • 6:01 PM
    • Core Laboratories (NYSE:CLB): FQ4 EPS of $1.53 beats by $0.01.
    • Revenue of $276.1M (+1.1% Y/Y) misses by $8.75M.
    • Shares -8% AH.
    • Press Release
    | Comment!
  • 5:19 PM
    • EnLink Midstream Partners (NYSE:ENLK) agrees to acquire equity interests in E2 Appalachian Compression and E2 Energy Services from EnLink Midstream (NYSE:ENLC) for ~$193M.
    • ENLK says the E2 entities will provide condensate stabilization and gas compression services for growing production in the Utica shale play.
    • The E2 assets are supported by a long-term, fee-based contract with Antero Resources (NYSE:AR); once all E2 stabilization and compression facilities are complete in H1 2015, they are expected to generate $20M-$25M/year of adjusted EBITDA.
    • The deal marks the first drop down from ENLC to ENLK as part of the partnership's strategic growth plan.
    | Comment!
  • 5:14 PM
    • Albemarle (NYSE:ALB): Q3 EPS of $1.14 beats by $0.12.
    • Revenue of $642.4M (+8.7% Y/Y) beats by $27.07M.
    • Press Release
    | Comment!
  • 4:58 PM
    • MarkWest Energy (NYSE:MWE) raises guidance for 2014 distributable cash flow to $680M-$700M and 2014 adjusted EBITDA to $860M-$880M; achieving the mid-point of the ranges would result in Y/Y growth of 43% for DCF and 44% for adjusted EBITDA.
    • MWE also raises its Q3 cash distribution to $0.89/unit, up from $0.88.
    • In an operational update, MWE says Q3 average utilization of all Marcellus processing facilities rose to 84% from 79% in Q2, and average utilization of Utica processing facilities increased to 63% from 56%.
    | Comment!
  • 4:42 PM
    • Phillips 66 Partners (NYSE:PSXP) agrees to acquire from Phillips 66 (NYSE:PSX) two newly constructed crude oil rail unloading facilities, located in N.J. and Wash., for $330M, plus certain assets associated with the Cross-Channel Connector Pipeline for an additional $10M.
    • The project is expected to have $12.4M of additional capital costs and is underwritten by long-term transportation service agreements with multiple shippers.
    • The pipeline system will have an initial capacity of up to 180K bbl/day and is anticipated to begin commercial operations in Q2 2015.
  • 4:19 PM
    • Flotek (NYSE:FTK): Q3 EPS of $0.26 beats by $0.02.
    • Revenue of $116.7M (+18.6% Y/Y) beats by $1.46M.
    • Press Release
    | Comment!
  • 4:11 PM
    • Covanta Holding (NYSE:CVA): Q3 EPS of $0.26 beats by $0.05.
    • Revenue of $414M (-2.6% Y/Y) misses by $13.94M.
    • Press Release
    | Comment!
  • 3:18 PM
    • Rosneft (OTC:RNFTF) has asked the Russian government for more than 2T rubles ($49B) in aid to help withstand western sanctions, Finance Minister Anton Siluanov says.
    • Rosneft, which has a net debt of ~$55B, has been targeted by western sanctions against Russia in response to the country’s annexation of Crimea and its support of pro-Russian separatists in eastern Ukraine.
    | Comment!
  • 2:28 PM
    • Shares of Willbros Group (WG -35.9%) are cut by more than a third after the energy infrastructure engineering company says it intends to restate its Q2 financial statements, citing a $22M-$24M error in the estimation process of a "significant pipeline construction project."
    • WG says the restatement will result in the reversal of ~$8M in recognized pre-tax income and the recognition of $14M-$16M in estimated pre-tax losses at completion.
    • Yesterday, WG named a new CEO and a new President.
    | Comment!
  • 12:49 PM
    • ZaZa Energy (ZAZA +66.2%) is showing notable strength, rising by as much as 93% today on heavy volume despite no news, although the company reported production data before the open on Oct. 20.
    • Shares have now soared 271% since last Friday's close after more than tripling earlier in the session.
    | Comment!
  • 12:30 PM
    • Hess (HES +0.6%) is upgraded to Buy from Neutral with a $100 price target at UBS, which sees HES as having an attractive valuation risk/reward, strong liquidity to withstand a potential period of low oil prices, strong leverage to oil to benefit from a recovery, and several catalysts on the horizon to improve its valuation.
    • At the firm's $95/bbl base case, UBS says HES should deliver debt-adjusted cash flow/share growth of 8% vs peers' 7%.
    • UBS says HES' portfolio has long-term visibility, but it also sees potential for an increased growth rate if prices recover and the company chooses to accelerate Bakken and Utica development activity.
    | Comment!
  • 11:49 AM
    • Chesapeake Energy (CHK +3.3%) is upgraded to Buy from Neutral with a $27 price target, up from $24, at UBS, which says new CEO Doug Lawler has removed most of the firm's bear arguments concerning high leverage, lack of transparency, and material free cash flow outspend.
    • CHK's turnaround is not reflected in discounted valuation, the firm says, adding that high leverage has been reduced, visibility has increased, and free cash flow deficit has been narrowed.
    • Given CHK's strong liquidity, below average oil inventory and attractive market valuations, UBS believes CHK may pursue an acquisition targeting oil-weighted U.S. resource assets.
    | Comment!
  • 11:27 AM
    • The Federal Highway Administration tells Trinity Industries (TRN -0.3%) it must perform additional crash tests on its ET-Plus highway guardrails, a day after a Texas jury found the company had defrauded the agency and failed to report possibly hazardous design changes to the guardrails.
    • The ET-Plus units are in almost every state, and while states are ultimately responsible for their highway equipment, the FHA provides guidance on which products are eligible for federal reimbursement.
    • At least 14 lawsuits blame the guardrails for five deaths and more injuries.
  • 10:57 AM
    • Chevron (CVX +0.3%) says Indonesia’s Supreme Court has upheld a graft verdict against a local employee of the U.S. company issued last year.
    • The employee was sentenced to prison last year by an anti-corruption court for his role in a bio-remediation project on the oil-rich island of Sumatra in western Indonesia; three other employees also were convicted at the time, and the Supreme Court has yet to rule on their appeals.
    • The verdicts last year sent shock waves through the business community, sparking fears of an increasing trend in the criminalization of business disputes in the country.
    | 1 Comment
  • 10:31 AM
    • EIA Petroleum Inventories:
    • Crude +7.1M barrels vs. 8.9M last week.
    • Gasoline -1.3M barrels vs. -4M last week.
    • Distillates +1.0M barrels vs. -1.5M last week.
    • Futures -0.85% to $81.79.
    | Comment!
  • 9:12 AM
    • InterOil (NYSE:IOC) says it hit hydrocarbons at the Raptor-1 well in Papua New Guinea as part of its $300M drilling program in the Asian country.
    • IOC says Raptor-1, slightly west of its Elk-Antelope gas field, intersected 200m of the Kapau Limestone target zone, with wireline logs indicating the presence of hydrocarbons; IOC is operator of the well and holds a 65.2% interest.
    • The Bobcat-1 well was successfully drilled into the Kapau limestone, and will drill further into the target zone: IOC is operator and holds a 78.1% interest.
    | Comment!
  • 8:44 AM
    • Royale Energy (NASDAQ:ROYL) +15.6% premarket on news it has achieved a sustained rate of 1.6M cf/day at its recently drilled McKinney well in California's Sacramento basin.
    • Based on the thickness, pressure and areal extent, ROYL believes the well likely will rank among the company's largest discoveries.
    | Comment!
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