Cabot Oil & Gas (COG +5.2%) trades sharply higher, overcoming Q1 results that trailed analyst expectations, as earnings doubled and revenues rose 36% Y/Y to $510M.
Q1 total production grew 34% Y/Y to 119.9B cfe, driven by higher realized natural gas prices.
Total per unit costs fell 19% Y/Y to $2.66/Mcfe from $3.29/Mcfe; all operating expense categories fell on a per unit basis except for exploration expense, which was flat, and transportation and gathering, which rose due to slightly higher transportation rates and new transportation agreements in the Marcellus.
Tightened 2014 production guidance range to 530B-585B cfe from 519B-598B cfe, and 20%-30% output growth in 2015; raises its capital budget to $1.375B-$1.475B amid an increase in rig count and higher activity in the Eagle Ford.
Russia's Gazprom (OGZPY) has billed Ukraine's Naftogaz $11.4B for not importing the full amount of natural gas under a 2013 supply contract, adding pressure on the Ukraine government as the prospect of supply cuts looms.
Ukraine's ballooning debt could give Moscow the right to demand an early repayment of a loan, which could theoretically cause a domino effect on ~$20B of Ukraine sovereign and quasi-sovereign debt.
The latest figures from Ukraine put state debt at 804B hryvnia ($70B), or 52,7% of the GDP; if Gazprom's demand is met, the ratio would rise above a 60% threshold that would give Russia the right to demand an early redemption.
Oceaneering (OII +3.4%) moves higher after Q1 earnings and revenues beat expectations on the back of strength in its subsea products division, which saw higher demand for undersea hardware and the umbilicals line with an $894M end-of-quarter backlog.
OII added 14 new ROV systems to its operations during Q1, and increased utilization to 86% from 83%.
OII expects all of its business segments to continue growth and post higher income in 2014 than in 2013; sees Q2 EPS of $0.97-$1.01 vs. analyst consensus estimate of $1.04, and FY 2014 EPS of 3.90-$4.10 vs. $4.03 consensus.
Entergy's (ETR +0.1%) Q1 earnings more than doubled and revenues rose 23% Y/Y to $3.2B, but shares are flat as investors attribute the strength to significantly higher wholesale electricity prices resulting from cold winter weather and limitations of the pipeline infrastructure in the Northeast.
ETR says that even excluding weather impacts, sales growth was positive for residential, commercial and industrial customer classes.
Reaffirms guidance for FY 2014, seeing operational EPS of $5.55-$6.75 vs. $5.84 analyst consensus estimate.
Cameron (CAM +1.5%) shares are higher after Q1 earnings beat estimates, although an 18% rise in revenues was offset by 20% higher expenses.
Total Q1 orders were $2.5B, down Q/Q and Y/Y but the second-best Q1 results in CAM's history; with a more robust outlook for North America and several deepwater projects expected to move forward, CAM thinks orders could exceed 2013 levels.
Backlog at the end of Q1 was $11.3B, +13% Y/Y but down slightly from its historical high of $11.4B at the end of 2013 reflecting the cancellation of the STX deepwater rig order during the quarter.
Issues in-line guidance for Q2, seeing EPS of $0.84-$0.89 vs. $0.88 analyst consensus estimate; issues in-line guidance for FY 2014, seeing EPS of $3.80-$4.10 vs. prior guidance of $3.60-$4.00 and $3.82 consensus.
Cnooc (CEO) is replacing the CEO at its Nexen Energy Canadian unit with a veteran Chinese-national engineer with 30 years' experience in the industry, but says it isn't changing company strategy.
CEO says Kevin Reinhart was dismissed after 20 years at Nexen, including a stint as interim CEO, because new skills were required at the top; new CEO Fang Zhi had been an executive VP responsible for international affairs.
The change is part of a pattern of increasing Chinese presence at the company as it integrates Canadian operations, shifts the focus to improving results, and comes despite promises that it would keep all of Nexen’s staff and management.
The Nexen purchase has made a big impact on Cnooc: Q1 revenue from oil and gas output rose 6.9% Y/Y and total production rose 16%, boosted by Nexen assets in Canada and the North Sea.
Eagle Rock Energy Partners (EROC -15%) plunges following the suspension of its distribution to preserve liquidity ahead of the sale of its midstream business; due to a potential delay in the deal closing, EROC was bumping up against balance sheet constraints.
BofA Merrill cuts its price target to $5.50 from $6.50, saying the suspension is another blow to weary EROC investors who already endured a previous cut and unit price underperformace; however, the firm believes the decision prudent in light of EROC's current high debt levels, which should be alleviated upon completion of the sale.
Diamond Offshore (DO +3.4%) moves higher after Q1 earnings and revenues came in ahead of Street estimates, and last night's fleet status report outlined short-term contracts on four rigs.
Q1 revenues fell to $709M from $729M, while expenses rose to $523M from $516M.
Utilization rates for DO's ultra-deepwater rigs fell to 66% in Q1 from 91% in Q4 2013, but dayrates for ultra-deepwater rigs rose nearly 11% Q/Q to $387K while dayrates for deepwater rigs rose ~4% to $418K.
DO also said it would pay a special quarterly cash dividend of $0.75/share on top of its regular dividend of $0.13; repurchased 1.87M shares during Q1 at an average price of $46.32.
PetroChina (PTR +0.1%) says its Q1 net profit fell 4.9% Y/Y to 34.2B yuan ($5.5B) from 36B yuan due mainly to rising costs and a decline in international crude prices.
Revenue fell 2% to 529B yuan because of a lower contribution from PTR's upstream E&P operations; crude oil output rose 2.3%, although the average selling price for PTR's crude oil fell 2.9% during the period.
Operating losses from the refining and chemical businesses narrowed to 2.2B yuan from 4.7B yuan, helped by the Chinese government's authorization in September for an increase in refined product prices.
Marathon Petroleum (MPC -0.5%) reportedly will take the next step toward a potential $2.2B-$2.5B upgrade of its Garyville refinery in Louisiana, filing permit applications for the potential project with state environmental regulators after completing feasibility studies on the project.
MPC operates a 522K bbl/day refinery at the site, and expects to make a final decision on the project by early 2015.
Peabody Energy (BTU) -2% premarket after reporting an unexpected Q1 loss and slightly lower than expected revenues, as a 7% increase in sales volumes to 61.3M tons of coal was offset by weak pricing for steelmaking coal.
BTU sees a Q2 EPS loss of $0.14-$0.39 vs. consensus $0.14 loss; sees FY 2014 shipments of 245M-265M tons.
Australian revenue of $612M was hit by a 17% decline in revenues per ton, while Australian sales totaled 8.2M tons, including 3.2M tons of met coal and 3.1M tons of seaborne thermal coal.
U.S. mining revenues rose to $985M as a 10% increase in western shipments overcame a 7% decline in U.S. revenues per ton.
Reduced unit costs in both U.S. and Australian operations by 4% and kept capital spending at 10-year lows, improving liquidity to $2.1B while cash rose to $508M.
Noble Energy (NBL) is flat premarket after Q1 earnings beat expectations but fell 23% Y/Y, as higher expenses offset a rise in revenue.
Revenues rose to $1.38B from $1.14B as crude, natural gas and natural gas liquids sales all increased, but total operating expenses soared to $975M from $718M; NBL also booked an asset impairment of $97M after having none in the year-ago period.
Q1 production rose to 286K boe/day from 246K in the same period last year, with U.S. production alone climbing 12% to 163K boe/day; for Q2, NBL expects to produce 290K-296K boe/day.
Revises FY 2014 volume guidance to 302K-310K boe/day, due to the expected closing of an asset sale in Bohai Bay off China later this year and a U.S. onshore asset sale set to close this month.
Williams Partners (WPZ) and Williams Cos. (WMB) say an explosion and fire occurred overnight at their natural gas processing facility near Opal, Wyoming.
There were no reported injuries or damage to property outside the facility; the town was evacuated.
The Opal plant has an inlet capacity of 1.5B cf/day of natural gas per day; the incident affected one of the five cryogenic processing trains that comprise the plant, but it is too early to determine the extent of damage or a timeline for return to service.