Wed, Jan. 6, 5:39 PM
Dec. 31, 2015, 1:52 PM
- The volatility continues: After getting drubbed yesterday following the release of EIA inventory data, a slew of North American oil/gas industry firms are up strongly today as Nymex natural gas futures rise 6.1% to $2.35/MMBtu. The EIA reported today a weekly U.S. natural gas inventory change of -58 Bcf (close to expectations) to 3,756 Bcf.
- Oil is also higher: WTI crude is up 2.5% to $37.53/barrel, and Brent crude up 3.7% to $37.80/barrel. The S&P is down 0.3%.
- Also: Cheniere Energy (LNG +3.4%) has begun production at its Sabine Pass terminal, which will be the first to export shale gas from the U.S. Partner ING Capital states Cheniere is currently receiving, chilling, and storing 50M cubic feet of gas per day at the facility.
- Major gainers include Southwestern Energy (SWN +9.6%), Williams (WMB +5.6%), Encana (ECA +4.5%), Gulfport Energy (GPOR +5.3%), Whiting Petroleum (WLL +8.2%), Rice Energy (RICE +5.6%), SandRidge Permian Trust (PER +8.9%), Oasis Petroleum (OAS +5.9%), BP Prudhoe Bay Royalty Trust (BPT +7.3%), and Baytex Energy (BTE +9.3%). ONEOK is up over 7% after catching an upgrade from Credit Suisse.
Dec. 28, 2015, 12:40 PM
Dec. 28, 2015, 11:45 AM
- WTI crude is down 3.2% to $36.90/barrel, and Brent crude down 2.5% to $36.95/barrel, leaving prices close to 11-year lows. Energy industry firms are among the biggest decliners on a day the S&P is down 0.6%.
- Fears about excess supply appear to be weighing once more. OPEC figures point to a global oil supply glut of more than 2M barrels (over 2% of global demand); a smaller glut is expected next year. Meanwhile, Japanese government data indicates the country's oil product sales fell to a 46-year low in November, and European data suggests the continent's oil product demand growth turned negative in October.
- The biggest casualties include Whiting Petroleum (WLL -9.9%), Oasis Petroleum (OAS -8.2%), Vanguard Natural Resources (VNR -12.5%), Denbury Resources (DNR -8%), SandRidge Energy (SD -8.1%), SandRidge Permian Trust (PER -10.9%), SandRidge Mississippian Trust (SDT -7.5%), U.S. Silica (SLCA -6.2%), Marathon Oil (MRO -6.7%), C&J Energy Services (CJES -8.1%), MV Oil Trust (MVO -9.2%), Bonanza Creek (BCEI -6.4%), Parker Drilling (PKD -7.9%), and Continental Resources (CLR -5.9%).
- Other notable decliners include Kinder Morgan (KMI -5%), Williams Partners (WPZ -4.4%), EOG Resources (EOG -3.4%), Cheniere Energy (CQP -3.6%), SeaDrill (SDRL -3.5%), Encana (ECA -2.8%), Devon Energy (DVN -2.7%), Ensco (ESV -3.8%), Hercules Offshore (HERO -4.7%), Atwood Oceanics (ATW -4.9%), Helmerich & Payne (HP -3.8%), and Pioneer Natural (PXD -2.6%).
- ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, IYE, IEO, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG, DRIP, GUSH
May 13, 2015, 12:45 PM
Nov. 12, 2013, 3:59 PM| Nov. 12, 2013, 3:59 PM | 12 Comments
Oct. 28, 2013, 10:12 AM
- SandRidge Mississippian Trust II (SDR -3.2%) is downgraded to Underperform with an $11 price target, down from $16, at RBC on concerns about an 18% Q/Q dive in production despite 20 gross new wells drilled in Q3, which the firm says is far below even the most pessimistic views.
- The firm also lowers SandRidge Permian Trust (PER -3%) to Underperform, with the price target cut to $14 from $17, believing the time has come to look beyond the attractive yield at the risks associated with the lack of communication, operational transparency and production trend visibility.
Apr. 26, 2013, 8:43 AM
SandRidge Permian Trust (PER) -5.2% premarket after announcing a subordinated threshold distribution of $0.512 per common unit and $0.353 per subordinated unit. The realized oil price, including the impact of hedges and natural gas liquids, decreased 8% Q/Q, which had a material impact on the distributable income for the period.| Apr. 26, 2013, 8:43 AM
Mar. 5, 2013, 12:17 PM
SandRidge Mississippian Trust I (SDT -9.5%) is cut to Sell from Hold with a reduced $13 target price at Wunderlich, citing a weakening distribution outlook due to higher costs, lower production and a higher mix of natural gas being produced. Investors may be attracted to SDT's yield, but the firm says investors should focus on the trust's risk profile. SDR -4.9%, PER -2.5%.| Mar. 5, 2013, 12:17 PM | 33 Comments
Mar. 1, 2013, 9:55 AM
Feb. 6, 2013, 12:33 PM
Energy trusts suffer another shellacking after RBC Capital issues downgrades and target price reductions for SandRidge Permian Trust (PER -6.6%), due to reduced production visibility and increased risk profiles following below-expected Q4 distributions, and SandRidge Mississippian Trust I (SDT -5.5%) and II (SDR -1.6%), as increasing risk meets additional production concerns.| Feb. 6, 2013, 12:33 PM | 10 Comments
Feb. 1, 2013, 1:36 PM
Energy trusts (SDT, PER, SDR) all take hits after announcing dividend and production cuts last night (I, II, III), and Raymond James does not pass "Go," downgrading the group to Sell from Buy. These new trusts are misunderstood, says one trader long the names. The wells are still getting drilled and there's going to be volatility in production volumes. They're cheap by any metric and - unlike MLPs - they're debt-free, having no need to issue debt (or shares) to replace depleting assets.| Feb. 1, 2013, 1:36 PM | 13 Comments
Nov. 8, 2012, 4:52 PM
More on SandRidge's (SD) Q3 results: Says it is exploring the sale of assets in the Permian Basin, other than those associated with SandRidge Permian Trust (PER), which produce ~24,500 boe/day. Proceeds would be used to fund SD's capital expense program in the Mississippian Play and to repay debt. SD +3.4% AH.| Nov. 8, 2012, 4:52 PM
Mar. 15, 2012, 9:04 AM