Advanced Chart
  • Tue, Oct. 18, 3:49 PM
    • SM Energy (SM +1.5%) surged to a 52-week high at the open before pulling back following news of its purchase of 35.7K acres in the Midland Basin in west Texas for $1.1B in cash and 13.4M shares valued at ~$500M.
    • SM expects to use the proceeds from a $785M sale of property and other assets in the Williston Basin to Oasis Petroleum, also announced today, to pay for the bulk of its cash outlay for the deal.
    • “Our Permian growth rate will be huge, higher than our more highly valued competitors,” SM CEO and President Jay Ottoson says without naming the competitors, but the company’s slide presentation lists Diamondback Energy (FANG -0.5%), Callon Petroleum (CPE -0.1%), Parsley Energy (PE -0.5%) and RSP Permian (RSPP -1.1%) as its top peers in the area.
    • CapitalOne upgrades SM to Overweight from Equal Weight with a $50 price target, lifted from $46, as it estimates SM paid ~$42K/acre for the acreage when backing out 2.4M boe/day production from the total $1.6B purchase price.
    • Williams Capital considers SM its top pick in the sector, saying the deal gives it "the scale to command an improved valuation and trade more like a Permian Basin company, especially when considering its execution of selling non-core assets."
    | Tue, Oct. 18, 3:49 PM | 1 Comment
  • Mon, Oct. 17, 3:52 PM
    • Analysts are out defending RSP Permian's (RSPP -0.2%) $2.4B Silver Hill acquisition and its upsized 22M-share offering to help fund the deal, as several raise their stock price targets.
    • Canaccord Genuity maintains its Buy rating for RSPP and raises its price target to $50 from $42, saying the deal bolsters the company's bull case going forward, despite paying what was on an acreage basis the highest price thus far in the Delaware Basin (~$45K/net acre); the firm says RSPP now enters one of the best parts of the basin accretively while maintaining a relatively clean balance sheet and improving its debt-adjusted cash flow growth trajectory.
    • BMO maintains its Outperform rating and raises its target to $54, Raymond James reiterates its Strong Buy rating and hikes its price target to $53 from $50, and Wunderlich maintaines its Buy rating and ups its price target to $51 from $44.
    | Mon, Oct. 17, 3:52 PM
  • Thu, Oct. 13, 5:35 PM
    • Top gainers, as of 5.25 p.m.: MUX +3.9%. ERIC +2.0%. MT +2.2%. COT +1.8%. KGC +1.3%.
    • Top losers, as of 5.25p.m.: HIVE -16.5%. NHTC -13.3%. RSPP -4.9%. FSM -3.2%. DTK -3.0%.
    | Thu, Oct. 13, 5:35 PM | 1 Comment
  • Thu, Oct. 13, 4:47 PM
    • RSP Permian (NYSE:RSPP) -5.8% AH after agreeing to acquire Silver Hill Energy Partners and Silver Hill E&P II for $1.25B in cash and 31M common shares of its common stock, implying a total purchase price of ~$2.4B.
    • RSPP says the deal is a unique acquisition of a highly contiguous acreage position in the core of the Delaware Basin with 41K net surface acres, which creates substantial scale with combined current production of ~50K boe/day, 100K-plus net surface acres, 500K-plus net effective horizontal acres, and 3,600 net drilling locations with substantial additional upside.
    • To help fund the deal, RSPP launches a 20M-share public offering, with an underwriters option to purchase up to an additional 3M common shares.
    • Silver Hill reportedly had attracted interest from the likes of Diamondback Energy (NASDAQ:FANG), Noble Energy (NYSE:NBL), Marathon Oil (NYSE:MRO) and Occidental Petroleum (NYSE:OXY).
    | Thu, Oct. 13, 4:47 PM | 7 Comments
  • Mon, Aug. 8, 4:48 PM
    • RSP Permian (NYSE:RSPP): Q2 EPS of -$0.04 in-line.
    • Revenue of $82.6M (-14.9% Y/Y) beats by $6.24M.
    • Press Release
    | Mon, Aug. 8, 4:48 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%.
    | Mon, Aug. 8, 11:57 AM | 1 Comment
  • Sun, Aug. 7, 5:35 PM
  • Thu, Jul. 21, 3:49 PM
    • Parsley Energy (PE -0.5%) is initiated with an Overweight rating and a $39 price target at Morgan Stanley, which says the stock deserves to trade at a significant premium to peers, given its peer-leading growth, strong management and high quality assets.
    • The firm says PE will enjoy multiple expansion if it continues to beat consensus expectations or if it grows its drilling inventory through accretive acquisitions and leasing, and it believes both possibilities are likely over the coming year.
    • Stanley also starts RSP Permian (RSPP -0.6%) at Equal Weight with a $43 target, citing high quality assets and an outstanding management team that are nevertheless offset by decelerating growth.
    • The firm is optimistic about RSPP's longer-term upside, noting the company’s “strong track record of continuously improving capital efficiency, fostering upside to growth and resource potential.”
    | Thu, Jul. 21, 3:49 PM
  • Wed, Jun. 15, 2:59 PM
    • RSP Permian (RSPP +0.7%) is initiated with an Outperform rating and $45 price target at Imperial Capital, which believes the company stands out compared to other Midland Basin pure play companies on low costs and high growth potential.
    • Imperial says RSPP's strong balance sheet and low cash flow outspend, which the firm estimates turns to positive free cash flow generation in 2017, makes the company one of the leading performers in the domestic E&P group.
    • The firm also notes that despite reducing its 2015 capex by 54%, RSPP's production rose by 80% percent, and despite poor year-end oil pricing, reserves rose 50%; in 2016, the firm estimates a further 40% cut in capex and 19% annual production growth.
    | Wed, Jun. 15, 2:59 PM | 1 Comment
  • Mon, May 2, 5:16 PM
    • RSP Permian (NYSE:RSPP): Q1 EPS of -$0.16 misses by $0.03.
    • Revenue of $57.77M (-28.5% Y/Y) misses by $2.45M.
    | Mon, May 2, 5:16 PM
  • Sun, May 1, 5:35 PM
  • Sun, May 1, 5:35 PM
  • Fri, Mar. 11, 3:53 PM
    • EP Energy (EPE -3.1%) is a rare energy loser today as Goldman Sachs downgrades shares to Sell from Neutral with a $4.50 price target, based on a lack of differentiated growth relative to other oil levered companies and a weakening balance sheet, resulting from attractive hedges rolling off at year-end 2016.
    • But Goldman, while it forecasts sharply lower U.S. oil prices over the coming weeks, also sees "a path emerging" for a recovery to $55-$60/bbl in 2017 to restart the U.S. shale machine, and raises its coverage outlook for the E&P sector to Attractive from Neutral while recommending investment in "secure shale productivity winners and the next rung stocks.”
    • The firm upgrades Carrizo Oil & Gas (CRZO +10.4%) to Buy from Neutral with a $37 price target, expecting CRZO to exit 2017 at a manageable 3.6x net debt/EBITDA with the potential for non-core asset sales to aid in further deleveraging.
    • RSP Permian (RSPP +7.9%) also is raised to Buy from Neutral, with a $34 target, as Goldman expects a re-acceleration of drilling activity in 2017 to drive improvement in the company’s leverage metrics and easing investor concerns.
    • Oasis Petroleum (OAS +4.4%) is upped to Neutral from Sell with a $7.25 price target, as the firm believes that a cyclical recovery in oil prices would ease investor concerns over the company’s leverage.
    • Earlier: Anadarko Petroleum upgraded to Buy at Goldman Sachs
    | Fri, Mar. 11, 3:53 PM | 4 Comments
  • Wed, Mar. 9, 7:20 PM
    • Oil production in the Permian Basin has been much more resilient in the face of the ~65% drop in oil prices since mid-2014 than other shale regions, and in fact has been climbing steadily while the Eagle Ford and Bakken plays are showing overall declines.
    • As of early February, Permian's oil production slightly exceeded 2M bbl/day - up from 1.4M bbl/day at the beginning of 2014 - even though the drilling rig count for the basin fell to 181 from about 550 a year earlier, and EIA data released Monday projects Permian’s output at 2.036M bbl/day while Eagle Ford and Bakken are expected to continue to drop.
    • "If you are in an oil-producing related business, the Permian Basin is the place to be in 2016,” says energy consultant Charles Perry.
    • Relevant tickers include PXD, OXY, CVX, COP, CXO, APA, DVN, APC, XOM, NBL, CPE, PE, FANG, RSPP, LPI, XEC, EQT
    | Wed, Mar. 9, 7:20 PM | 47 Comments
  • Thu, Feb. 25, 3:11 PM
    • RSP Permian (RSPP +9.3%) is upgraded to Sector Outperform from Sector Perform with a $27 price target at Scotia Howard Weil, after posting better than expected Q4 earnings.
    • The firm believes RSPP will continue to meaningfully outperform the group amid weak commodity pricing thanks to a low cost operating structure and enjoy upside if the commodity environment turns around, given the company's minimal hedging.
    • RSPP also offers nice optionality in 2017, when the company could keep 2016 production levels flat at a strip environment with little need to tap its revolver or grow meaningfully in the event of rising commodity prices.
    | Thu, Feb. 25, 3:11 PM
  • Wed, Feb. 24, 5:36 PM
    • RSP Permian (NYSE:RSPP): Q4 EPS of $0.12 beats by $0.06.
    • Revenue of $96.6M (+8.8% Y/Y) beats by $1.44M.
    | Wed, Feb. 24, 5:36 PM | 1 Comment