Clayton Williams Energy Bonds Flattened By Oil Crash Are Now An Outstanding Speculative Value
Volte-Face Investments • 35 Comments
Volte-Face Investments • 35 Comments
Fri, Sep. 23, 2:06 PM
Tue, Sep. 20, 4:46 PM
- via Bespoke - see table
- Five of the stocks have > 50% of their shares sold short.
- SHLD leads the pack.
Wed, Sep. 14, 2:01 PM
Wed, Aug. 31, 2:02 PM
Mon, Aug. 8, 11:57 AM
- SM Energy’s (SM +7.2%) $980M purchase of drilling rights in the Permian Basin shows that producers are willing to pay a premium for access to one of the few spots where oil exploration still turns a profit, Bloomberg reports.
- SM will pay the equivalent of $39.5K/acre for drilling rights across 24,783 acres in the Permian Basin, will ahead of the $25K-$35K that acreage in the Permian’s Midland Basin section had been fetching as recently as May and almost doubling SM's holdings in the region.
- Other Permian producers also are trading higher, including: PXD +2.2%, CXO +1.8%, XEC +2.1%, CWEI +6.1%, APA +3.8%, FANG +2.1%, PE +1.2%, QEP +3.6%, RSPP +2.4%, APC +2.6%, DVN +3.7%, MTDR +2.3%.
Thu, Aug. 4, 3:57 PM
- Clayton Williams Energy (CWEI +10.6%) continues its recent upward momentum despite mixed Q2 results that included a large loss but the hope of promising well results.
- CWEI characterizes 2015 as a hunker down period while 2016 is the turnaround period, sparked by the Ares financing deal that put cash on the balance sheet and enabled the company to start a drilling program again.
- CWEI says it expects to complete 10 horizontal wells this year in its 65K-acre leasehold in the Delaware basin of Texas; so far, it has drilled four wells into Permian Wolfcamp strata and completed two.
- Wunderlich upgrades shares to Hold from Sell with a new $35 price target, raised from $15, believing that CWEI is showing signs of a turnaround for the second straight quarter yet still needs to provide more results before it can become truly bullish; given the progress so far, the firm seems optimistic.
- But Roth Capital's John White, who has a Sell rating on the shares with a $12 target, warns that CWEI displays "by far the highest leverage” of the Permian pure plays, with $23 of debt per proven barrel of reserves, and shares are at a nosebleed 12.4x EV/EBITDA.
Wed, Aug. 3, 7:53 AM
Tue, Aug. 2, 5:30 PM
- AAWW, AFAM, ALE, APO, ARCC, ARCO, ARQL, ATHM, ATRO, AVA, CDK, CDW, CEVA, CLDT, CLH, CLX, CRL, CROX, CRTO, CSTE, CWEI, D, DDD, DIN, DLPH, DM, DNOW, DOC, EE, ENR, FCPT, FUN, GEL, HFC, HUM, HYH, ICE, ING, INSY, INXN, IRT, KATE, KLIC, LINC, LMOS, MDC, MEMP, MFA, MTOR, NBL, NSM, NVMI, ODP, ORBK, OXY, PERI, POR, RRD, SBGI, SC, SCMP, SE, SHOP, SMG, SMP, SPR, SR, SUM, TMHC, TWX, USAK, VER, VIRT, VOYA, VSI, WD, XEL, ZTS
Mon, Jul. 25, 8:40 AM
- Ares Management (NYSE:ARES) will add to its stake in Clayton Williams Energy (NYSE:CWEI) with the purchase of $150M in shares of newly issued stock. Ares will also get a board seat for one of its people, and agrees not to take its stake in the company above 45%.
- Prior to this deal, Ares owned 22.8% of CWEI.
- CFO Michael Pollard has decided to exit once a replacement is found.
Fri, Jun. 17, 2:00 PM
Fri, Jun. 17, 12:47 PM
Wed, Jun. 8, 2:00 PM
Wed, May 25, 2:00 PM
Tue, May 17, 12:47 PM
Mon, May 16, 12:51 PM
Mon, May 16, 11:43 AM
- Clayton Williams Energy (CWEI +12.6%) surges following Friday's after-hours disclosure that 10% owner Ares Management purchased 515K shares last week worth ~$9.3M.
- The P-E firm now owns ~879K CWEI shares; the stock has gained 44% since the company issued its Q1 earnings on May 4.
- In March, Ares loaned $350M to CWEI, which agreed to issue warrants to purchase 2.25M common shares (18.5% of current outstanding shares) at $22/share, and allow Ares to appoint two directors to the company’s board.