Seeking Alpha
  • Wednesday, April 23, 2014

  • 6:42 PM
    • Eagle Rock Energy Partners (EROC) says it is suspending distributions in advance of closing the sale of its midstream business to Regency Energy Partners (RGP).
    • EROC says the FTC's request for additional information concerning the midstream sale has extended its original timeframe for closing the transaction and created the need to preserve greater liquidity in the interim to fund growth capex and other financial obligations.
    • EROC expects Q1 higher distributable cash flow than in Q4 2013, but says it may need to amend its credit facility if the sale does not close by the close of Q2.
  • 6:20 PM
    • Core Laboratories (CLB) -4.5% AH after reporting Q1 earnings and revenues that came in below Street expectations.
    • Reservoir Description operations, which focus primarily on offshore complex crude oil projects, posted Q1 revenues of $125M, up slightly from a year ago but less than expected as several deepwater projects were delayed because of projected cost overruns precipitating redesign of production facilities; operating margins rose 40 bps to ~28%.
    • Production Enhancement operations, which focus primarily on North American tight oil plays, posted Q1 revenues of ~$110M, up 3% Y/Y but lower than expected because of weather disruptions to tight oil operations and delays in deepwater Gulf of Mexico projects; operating margins rose 270 bps to ~35%.
    • Sees Q2 EPS of $1.48-$1.53 vs. analyst consensus estimate $1.54 and revenue of $280M-$286M vs. consensus $290M; sees FY 2014 EPS of $6.00-$6.25 vs. consensus $6.24 and revenue of $1.155B-$1.175B vs. consensus $1.176B.
    | Comment!
  • 5:09 PM
    • NewMarket Corporation (NEU): Q1 EPS of $4.54 misses by $0.78.
    • Revenue of $576.42M (+2.5% Y/Y) misses by $16.68M.
    • Press Release
    | Comment!
  • 5:05 PM
    • SunCoke Energy Partners (SXCP) says it has launched an offering of 2.8M common units.
    • SXCP says it plans to use part of the proceeds to fund its acquisition interest in each of its Haverhill and Middletown cokemaking facilities and to repay certain debt assumed from its sponsor, SunCoke Energy (SXC), as part of the acquisition.
    | Comment!
  • 5:03 PM
    • Oceaneering International Inc. (OII): Q1 EPS of $0.84 beats by $0.04.
    • Revenue of $840.2M (+16.9% Y/Y) beats by $1.63M.
    • Press Release
    | Comment!
  • 4:58 PM
    • A subsidiary of China’s Cnooc (CEO) agrees to partner with a unit of BG Group (BRGYY, BRGXF) on the U.K. firm’s proposed Prince Rupert liquefied natural gas terminal on Canada’s west coast.
    • BG last year filed plans with Canadian regulators for a proposed $16B LNG export terminal capable of processing up to 2.9B cf/day, or 21.6M metric tons/year, and has partnered with Spectra Energy (SE) on a pipeline to the coast.
    • It is unclear what Cnooc’s agreement with BG means for a rival development proposed by Cnooc-owned Nexen Energy.
    | Comment!
  • 4:41 PM
    • SunCoke Energy Partners (SXCP): Q1 EPS of $0.41 misses by $0.16.
    • Revenue of $161.4M (-12.7% Y/Y) misses by $3.73M.
    • Press Release
    | Comment!
  • 4:41 PM
    • Tsakos Energy Navigation (TNP) -11.9% AH on news it plans a public offering of 11M common shares.
    • TNP plans to use the proceeds to finance the expansion and modernization of its fleet through its vessel acquisition program, including installment payments on its existing crude oil carrier newbuilding program pursuant to a strategic partnership with a well-known oil major, and for general corporate purposes.
    | 1 Comment
  • 4:40 PM
    • Core Laboratories (CLB): Q1 EPS of $1.45 misses by $0.01.
    • Revenue of $262.9M (+0.8% Y/Y) misses by $20.12M.
    • Shares -2.2%.
    • Press Release
    | Comment!
  • 4:32 PM
    • Kaiser Aluminum Corporation (KALU): Q1 EPS of $0.85 beats by $0.03.
    • Revenue of $335M (-0.7% Y/Y) beats by $14.72M.
    • Press Release
    | Comment!
  • 4:15 PM
    • Ferro Corporation (FOE): Q1 EPS of $0.19 beats by $0.04.
    • Revenue of $391.73M (-16.9% Y/Y) misses by $19.32M.
    • Press Release
    | Comment!
  • 3:40 PM
    • Crescent Point Energy (CPG) agrees to acquire privately-held CanEra Energy for $1.1B, including ~112.9M CPG shares, $192 in cash and the assumption of $348M in debt.
    • CanEra is a Saskatchewan oil and gas producer with a large Torquay land position and production of ~10K bbl/day; assets include more than 260 net sections of land with Torquay potential.
    • Based on the deal, CPG revises its 2014 exit production rate forecast to 145K boe/day from 135K and its average daily production outlook to 133K boe/day from 126.5K; funds flow from operations for 2014 is raised to $2.38B from $2.25B.
    • Shares halted.
    | Comment!
  • 3:20 PM
    • Hercules Offshore (HERO -3.5%) shares continue to swirl lower after the oilfield services company issued a mixed Q1 earnings report.
    • Net income from continuing operations fell by more than 50% from year-ago levels to $19.9M, or $0.12 per share, missing the Capital IQ consensus by $0.01; revenue jumped but still lagged estimates.
    • Average dayrates rose across the board, and management is optimistic that the trend will continue on high activity around the world.
  • 2:54 PM
    • Investors are lining up for Cnooc's (CEO -1.8%) sale of dollar-denominated bonds, placing more than $20B in orders for a deal expected to total ~$4B, WSJ reports.
    • Cnooc reportedly is selling bonds with maturities of three, 10 and 30 years, and seeks to set coupons for these bonds at 1.05, 1.85 and 1.70 percentage points above comparable U.S. Treasurys.
    • Proceeds would be used to help repay loans related to Cnooc's $15B purchase of Canadian oil sands operator Nexen last year.
    | Comment!
  • 12:57 PM
    • North Dakota's industrial commission is considering a proposal that would cut back on the state’s booming oil production as a means of controlling the amount of natural gas that’s being burned off at well sites.
    • North Dakota drillers currently flare more than a third of the gas because development of pipelines and processing facilities to capture it hasn’t kept pace with oil drilling.
    • "If production curtailment is the chosen regulatory path, then wells will be shut in or not even drilled,” says Roger Kelley, director of regulatory affairs for Continental Resources (CLR), one of the biggest players in the state.
    • Other top North Dakota producers include EOG, WLL, HES, KOG, OAS, NOG, EOX, MRO.
  • 12:41 PM
    • Gulfmark Offshore (GLF +1.6%) is upgraded to Buy from Neutral with a $49 price target, up from $44, at Global Hunter, which believes GLF is positioned to deliver more earnings growth than current consensus expectations through 2015.
    • Although market softness is expected to continue in the Gulf of Mexico in 2Q14, the scheduled ramp in the floating rig count and GLF's imminent capacity additions should significantly improve its prospects there by H2 2014, the firm says.
    | Comment!
  • 12:29 PM
    • Hugoton Realty Trust (HGT +20.2%) spikes ~20% higher, near a 52-week high, after receiving a positive ruling in its arbitration proceeding against XTO Energy.
    • HGT receives permanent injunctive relief barring XTO from treating the Fankhouser settlement as a production cost, and is awarded ~$6.1M.
    | Comment!
  • 11:55 AM
  • 11:36 AM
    • The latest Keystone XL delay is having an unintended consequence: the revival of the effort in Congress to bypass the White House by forcing approval of the project.
    • Forcing approval would be difficult; Senate backers admit they still are a few votes short of the 60 needed to advance the bill, two-thirds of the Senate - 67 members - would be needed to override a likely presidential veto, and Senate Majority Leader Harry Reid so far has declined to bring up legislation that could embarrass Pres. Obama on Keystone (TRP).
    • But the oil isn't going to stay in the ground, and transporting oil by rail has more than doubled in the last three years; at the NTSB's Rail Safety Forum this week, regulators and industry reps are discussing everything from tank-car design to emergency response planning.
  • 10:59 AM
    • FMC Technologies (FTI +5.6%) trades just shy of 52-week highs after Q1 earnings and revenues beat expectations.
    • Subsea technologies achieved a record backlog in the quarter, totaling $1.9B of FMC's total inbound orders of $2.6B; total company backlog stands at $7.8B, including subsea technologies backlog of $6.8B.
    • Revenues in the surface technologies segment were $479.5M, up 14% Y/Y, driven by volume growth in the international surface wellhead and North American fluid control businesses.
    • Sees FY 2014 EPS of $2.55-$2.75 vs. analyst consensus estimate of $2.65.
    | Comment!
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