Thu, Jun. 4, 3:49 PM
- Deutsche Bank says it enters H2 with a neutral outlook for the energy E&P sector and a cautious medium-term view on the commodities as valuations are still above past early cycle multiples.
- Although early 2015 trends of firming WTI crude prices, improved well productivity, and greater and faster than expected cost reductions provide support for the next cycle, DB sees these factors largely priced into E&P's.
- But the firm sees selective opportunities in the group, upgrading Whiting Petroleum (WLL -3%) and Bill Barrett (BBG +0.6%) to Buy from Hold, and naming Newfield Exploration (NFX -0.3%) and Energen (EGN -1.9%) as Top Picks.
- The firm downgrades WPX Energy (WPX -3.5%), which it says faces the challenge of meeting 2016 oil growth expectations against a backdrop of declining H2 volumes as Bakken completions slow and lower cash flow in 2016, and Cimarex Energy (XEC -1.4%) on lower volume growth and FY 2016 cash margins than peers with no support from hedges.
Tue, May 19, 4:34 PM
- Cimarex Energy (NYSE:XEC) -3.7% AH after announcing a public offering of 6M common shares, with an underwriters option to purchase up to an additional 900K shares.
- XEC says it plans to use the proceeds for general corporate purposes and to fund increased drilling and completion activity in H2 2015 and more significantly in 2016.
Wed, Jan. 28, 3:59 PM
- Energy stocks are broadly lower as Nymex crude oil futures fell another $1.68/bbl (-3.6%) to $44.53 after today's inventory report showed the largest weekly supply buildup since 1982, but drilling contractor are whacked with especially large losses.
- Examples: NBR -11.7%, PTEN -8.6%, PES -10.9%, PDS -12.3%, KEG -6.5%; Helmerich & Payne (NYSE:HP), which reportedly has launched a round of steep layoffs, -6.3%.
- Among independent producers: DNR -9.7%, NFX -4.6%, SM -8.6%, SGY -10%, SD -9.7%, EOG -5.3%, PXD -6.8%, QEP -6%, APC -4.2%, XEC -3%.
- ETFs: XLE, ERX, VDE, OIH, XOP, ERY, FCG, DIG, GASL, DUG, IYE, XES, IEO, IEZ, PXE, PXI, FENY, PXJ, RYE, FXN, DDG
Dec. 24, 2014, 2:40 PM
Dec. 22, 2014, 10:45 AM
- Natural gas prices fall 9.5% to near two-year lows at $3.133/mmBtu, in the biggest one-day percentage loss since February and the lowest intraday price since January 2013, on mild weather forecasts and inventory that is above year-ago levels.
- Prices are now down more than 15% in three straight losing sessions and are 30% lower than the six-month high closing price of $4.489/mmBtu it hit just a month ago.
- Weather has been unseasonably warm for December, limiting demand for home heating and allowing relatively low stockpiles to catch up to where they were a year ago and encouraging traders to sell based on the belief that supply is relatively healthy.
- Gas producers are among the biggest early decliners: XOM -1.1%, CHK -7.3%, APC -2.6%, SWN -6%, DVN -2.2%, COP -2.3%, BP -1.5%, COG -4%, BHP -1.9%, CVX -1.3%, ECA -5.1%, EQT -4.3%, RDS.A -1.7%, UPL -12%, WPX -6.9%, EOG -1%, OXY -1.1%, RRC -6.1%, APA -2.3%, AR -3.2%, CNX -3%, QEP -4.8%, LINE -4.9%, NBL -1.6%, SM -2.6%, XEC -4.2%, PXD -2.9%, NFX -5.1%.
- ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ, FCG, GASL, KOLD, UNL, NAGS, DCNG
Dec. 2, 2014, 2:48 PM
- Energy stocks (XLE +1.4%) are posting the day's largest gains among S&P sectors, rebounding from recent losses even as Nymex crude oil fell another $2.05 to $66.97/bbl.
- Refiners Marathon Petroleum (MPC +4%) and Valero (VLO +4.1%) and pipeline operator Williams Cos. (WMB +1.5%) are among the top gainers, while losers include most oil services companies such as Halliburton (HAL -2.2%) and rig operator Transocean (RIG -3.7%).
- Anadarko Petroleum (APC +1.6%), Cimarex Energy (XEC +1%), Devon Energy (DVN +0.7%), EOG Resources (EOG +3.8%) and Marathon Oil (MRO +3.5%) were selected top “safe haven” picks for analysts at Tudor Pickering Holt, which said they are “liquid names with high-quality assets and healthy balance sheets."
Sep. 8, 2014, 12:32 PM
- The day's five biggest decliners in the S&P 500 are all energy companies - Newfield Exploration (NFX -5.6%), EOG Resources (EOG -3.6%), Anadarko Petroleum (APC -2.9%), Cimarex Energy (XEC -3.3%) and Pioneer Natural Resources (PXD -3.4%) - as crude oil prices slide to new lows, including Brent crude's first move below $100/bbl in more than a year.
- Brent crude dropped $1.12, or 1.1%, to $99.70/bbl after falling to as low as $99.36, a 16-month low, while U.S. crude slipped more than a percent to below $92 after settling at $93.29 on Friday for its sixth weekly drop in seven.
- Traders are concerned crude demand won't keep up, with data from the U.S. and China, the world's top oil consumers, suggesting their economies aren't growing as quickly as had been hoped.
- ETFs: USO, OIL, UCO, SCO, XOP, BNO, DTO, DBO, IEO, CRUD, PXE, USL, DBE, UWTI, DWTI, DNO, RJN, SZO, OLO, JJE, ONG, RGRE, OLEM, UBN
Nov. 22, 2013, 11:58 AM
- Cimarex Energy (XEC +2.1%) is upgraded to Buy from Hold with a $120 price target at Stifel, which believes the pullback in the shares over the past two months provides a good entry point ahead of what should be an increasing and very active Delaware Basin Permian test program in 2014.
- In addition, the firm believes there is upside potential to 2014 consensus estimates.
Oct. 23, 2013, 2:58 PM
- Cimarex Energy (XEC -3.9%) is downgraded to Market Perform from Outperform at FBR Capital, which believes capital efficiency gains and geologic de-risking are already priced in.
- "Though the story of further de-risking and capital efficiency gains... as well as continued low cost exposure to NGL/natural gas prices remain(s) intact, we are moving to the sidelines to reflect reasonable valuation," the firm writes on XEC.
- FBR also lowers EOG Resources (EOG -3.8%) and Resolute Energy (REN -4.6%) for similar reasons, believing material YTD stock performance has reasonably priced in geological and operational gains achieved this year and to be achieved near term (I, II).
- FBR adds Noble Energy (NBL -3%) to its top picks, replacing Newfield Exploration (NFX -3.1%); the firm sees NBL's outperformance being underpinned by substantial geological de-risking and capital efficiency gains in the Niobrara and within the rest of its global exploratory portfolio.
Sep. 9, 2013, 3:53 PM
- Cimarex Energy (XEC +3.7%) and EOG Resources (EOG +1.1%) are higher after each merits Morgan Stanley upgrades to Overweight from Equal Weight.
- XEC is awarded a new a $105 price target, up from $79, as the firm says XEC "is on the cusp of delineating a very large Permian resource base that could underpin 10-plus years of rapid, visible growth."
- EOG gets a $200 target, up from $168, as the firm foresees positive free cash flow in 2013-14 for the first time in more than a decade, thanks to tighter oil differentials and elevated oil prices, positive operating momentum and improving capital efficiencies.
Aug. 27, 2013, 11:10 AM
- Cimarex Energy (XEC +2.6%) is upgraded to Outperform from Market Perform with a $120 price target, up from $72, at FBR Capital to reflect what it sees as an upcoming significant step-up in efficiency of capital deployment as well as enhanced Wolfcamp potential in the Permian Basin.
- The firm believes that as the Wolfcamp program gets de-risked, capital deployed in the play could go to ~$550M in 2015 and $1B in 2017 from $175M in 2013.
- Because of the efficiency of capital from increasing lateral length and stages, the firm expects returns in the area on capital deployed to go from 45% pretax IRR to 95% pretax IRR by 2015 and 117% in 2017.
Mar. 20, 2013, 3:16 PMCimarex Energy (XEC -2.4%) is downgraded to Market Perform at FBR Capital, which says key catalysts have played out. Ongoing de-risking of the horizontal Wolfcamp drilling program has begun to meaningfully expand inventory, and the NGL/gas-heavy upgraded Cana program offers a deep inventory; the firm believes these are reflected in current valuation. | Mar. 20, 2013, 3:16 PM | Comment!
Mar. 15, 2013, 2:39 PMRosetta Resources' (ROSE +1%) purchase of some of Comstock Resources' (CRK +13.6%) oil-rich acreage in the Permian Basin will reduce its dependence on the Eagle Ford shale and "provides clarity on growth plans"; ~96% of ROSE's production last year came from Eagle Ford. Shares of other firms with prominent Permian acreage also are higher: CWEI +10%, XEC +1%, CXO +0.4%. | Mar. 15, 2013, 2:39 PM | Comment!
Dec. 21, 2012, 2:52 PMCimarex Energy (XEC -0.1%) is initiated with a Buy rating at Global Hunter, which highlights XEC's diversified asset base, conservative balance sheet and substantial cash flow which allow for the flexibility to move capital to the areas of highest returns such as the Permian Basin. The firm "conservatively estimate[s]" XEC may have more than 860 future drilling locations in its core areas. | Dec. 21, 2012, 2:52 PM | Comment!
Nov. 2, 2012, 2:48 PMCimarex Energy (XEC +6.5%) surges after Q3 earnings fell 34% on a sharp drop in prices for gas and natural gas liquids, though revenue declined less than Wall Street expected. Production volume reached record high of $635MMcfe/day, up 7% Y/Y. Oil sales, which contributed most of the top line, jumped 24% to $263M. | Nov. 2, 2012, 2:48 PM | Comment!
Oct. 2, 2012, 9:43 AMA more robust outlook for natural gas prices is lifting prospects for producers Devon Energy (DVN +1.2%), Comstock Resources (CRK +0.8%) and Cimarex Energy (XEC +1.8%), FBR Capital says in upgrading shares to Outperform. "U.S. natural gas market fundamentals have already undergone substantial structural realignment needed to balance the market," FBR says. | Oct. 2, 2012, 9:43 AM | Comment!
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