Jones Energy Is An Attractive And Overlooked Recent IPO
John Leonard, CFA
John Leonard, CFA
Tue, May 24, 11:24 AM
- Jones Energy (JONE +2.4%) is upgraded to Outperform from Sector Perform with a $6 price target, hiked from $4, at Iberia Capital, which believes the company will be able to monetize its existing Cleveland play within 12 years, rather than the earlier expectation of 27 years.
- The firm says JONE's plan to add three full-time drilling rigs leads to a doubling of Cleveland's undeveloped resource valuation to $440M from $220M.
- With potential acquisition identified at 50K net acres, Iberia thinks JONE could “potentially double their location count at a cost of $25M. If successful, the addition would boost our NAV by $100M, or $2/share.”
Thu, May 5, 3:31 PM
- Jones Energy (JONE +18.5%) is surging after reporting a slightly smaller than expected Q1 loss on a 55% Y/Y drop in revenues that nevertheless also beat expectations.
- JONE raised its 2016 production guidance to 6.2M-6.8M boe, up from a prior outlook for 5.6M-6.2M, as well as its planned capex to $100M from earlier guidance of $25M
- JONE also says it plans to resume drilling in the Cleveland play in western Oklahoma and the Texas panhandle, prompted by recent gains in commodity prices as well as cost savings within the company and "compelling" after-tax returns; it expects to have three rigs running by next month.
Wed, Apr. 27, 3:58 PM
- Jones Energy (JONE +12.3%) is upgraded to Outperform from In-line with a $5.25 price target, hiked from $1.25, at Imperial Capital, which sees the company as a likely first mover in returning rigs to work.
- The firm believes JONE can now achieve an internal rate of return at ~30% while still living within its cash flow, owing to the company's excellent hedge position and low operating costs.
- Imperial also expects JONE to seek inorganic growth opportunities as M&A activity in the Mid-Con continues to pick up.
Wed, Mar. 30, 3:30 PM
- Analysts at Seaport Global upgrade seven oil and gas producers, advocating for increased exposure to select names they say should protect investors in the event of a move back toward $50/bbl, while downgrading 11 others.
- Seaport upgrades seven companies to Buy: Continental Resources (CLR +3.4%), Callon Petroleum (CPE +1.4%), Marathon Oil (MRO +1.9%), Oasis Petroleum (OAS +2.8%), Rice Energy (RICE +1.7%), Petroquest Energy (PQ +9.1%) and Lonestar Resources (OTCQX:LNREF +6.6%).
- Downgraded to Sell are Whiting Petroleum (WLL +4.1%), Southwestern Energy (SWN -2.5%), WPX Energy (WPX +0.6%), Laredo Petroleum (LPI -1.1%), Jones Energy (JONE +0.9%), Northern Oil & Gas (NOG +1%), Carrizo Oil & Gas (CRZO +1.6%), Memorial Resource (MRD +2.5%), Matador Resources (MTDR -0.3%), Sanchez Energy (SN +1.6%) and PDC Energy (PDCE -0.9%).
- The firm also favors gaining leverage to the Oklahoma STACK play, thus CLR and Newfield Exploration (NFX +1.9%) have "taken the pole position away" from Permian producers Parsley Energy (PE +1.3%) and Pioneer Natural Resources (PXD +1%).
Dec. 7, 2015, 12:48 PM
Oct. 19, 2015, 3:25 PM
- Carrizo Oil & Gas (CRZO -4.2%), Comstock Resources (CRK -4.6%), Synergy Resources (SYRG -1.6%), Callon Petroleum (CPE -6.5%), Gastar Exploration (GST -5.9%) and Goodrich Petroleum (GDP +0.1%) are mostly lower despite getting praise from a Barron's weekend article as "six small oil explorers that should do well."
- Imperial Capital considers CRZO, CRK, SYRG and CPE as its favorite low-risk, small-cap E&P companies based on liquidity risk, quality of properties and quality of operatorship; in addition, Abraxas Petroleum (AXAS -7.5%), Jones Energy (JONE -4%) and PetroQuest (PQ -6.1%) are well positioned purely from a liquidity standpoint.
- Imperial says GDP, in the firm's high-risk group, shows the most improvement at maintenance capex because Haynesville Shale wells are expected to come online at such high rates; it places GST high in its medium-risk group.
May 14, 2015, 12:45 PM
May 14, 2015, 9:16 AM
May 13, 2015, 7:15 PM
- Jones Energy (NYSE:JONE) -6.2% AH after announcing a secondary public offering of 5M common shares by certain stockholders affiliated with Metalmark Capital representing ~22% the fund manager's current ownership in the company.
- The underwriter will have an option to purchase up to an additional 750K shares from Metalmark.
- JONE will receive no proceeds from the offering.
Feb. 11, 2015, 12:45 PM
Feb. 11, 2015, 9:13 AM
Jun. 9, 2014, 11:58 AM
- Jones Energy (JONE +5%) is initiated with a Buy rating and $23 price target at Brean Capital, which forecasts ratable production growth thanks to a deep bench of drilling targets in the Cleveland interval of the Anadarko Basin in north Texas and west Oklahoma.
- With among the lowest cost structures in the sector at $5.18/boe for Q1 and $4.47/boe for FY 2013, Brean believes JONE is capable of comparatively generating attractive returns through commodity price cycles.
Feb. 25, 2014, 3:45 PM
- Jones Energy (JONE -15.3%) is one of the day's largest NYSE decliners after providing an operations update and 2014 guidance.
- Q4 production rose to a record 1.7M boe (~18.2K boe/day) despite severe weather; FY 2013 production of 6.2M boe (~17K boe/day) was within the previously announced guidance range.
- Says 2013 year-end proved reserves rose 23% Y/Y, and increased 42% in the core Cleveland area; oil and natural gas liquids rose to 56% of the proved reserve base.
- Projecting 2014 average daily production of 22K-23K boe/day, which would mean ~30% Y/Y production growth; plans ~$350M capex for the year.
Feb. 25, 2014, 12:46 PM
Jones Energy, Inc. is an independent oil and gas company, which is engaged in the development, production and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Its development operations are focused on horizontal drilling and completions... More
Sector: Basic Materials
Industry: Independent Oil & Gas
Country: United States
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