Mon, May 18, 7:45 PM
- Goldman Sachs had a lot to say about all corners of the energy sector today in addition to the cut in its long-term oil price forecast, its Sell recommendations for oil majors BP, Statoil (NYSE:STO) and Chevron (NYSE:CVX), and its gloomy outlook for offshore drillers Transocean (NYSE:RIG), Diamond Offshore (NYSE:DO) and Atwood Oceanics (NYSE:ATW).
- Goldman awards a Buy rating for Exxon Mobil (NYSE:XOM), "the only U.S. or European major that can generate sufficient free cash flow to cover its dividend near $60/bbl in 2016-17"; while the firm says other oil majors will be struggling to keep the dividend flat, XOM will be in a position to increase the dividend for the next several years.
- With its expectation for long-term weakness in oil and gas prices, Goldman sees risk exposure in many names that are reliant on commodity prices, suggesting selling LINE, DPM, NGLS, while predicting PAGP and NS would benefit from a removal of the U.S. crude oil export ban.
- The firm thinks many midstream MLP names now offer attractive valuations, recommending ENB, EPD, ETE, PAA, SXL, WNRL.
- Goldman sees an upturn for frac sand provider Emerge Energy (NYSE:EMES), upgrading shares to Buy from Neutral.
- Other Buys: CLR, NFX, CQP, HEP.
- Other Sells: TRP, TCP, GPOR, MUR, GTE
Mon, May 11, 9:03 AM| Comment!
Fri, May 8, 9:18 AM
- Gran Tierra Energy (NYSEMKT:GTE) agrees to concessions to West Face Capital, saying it will support the board nominees proposed by the activist investor and double the size of its board to eight members.
- GTE says West Face nominee Gary Guidry will take over as President and CEO, effective immediately.
- West Face, which owns ~9.8% of GTE’s shares outstanding, said last month it sought to replace the four-member board with its own nominees and boost the board size to six; under the new agreement, the board will expand to eight members, including six West Face nominees.
- GTE +1.3% premarket.
Thu, May 7, 6:25 PM
- Canadian oil producers plunged for a second straight day as "all bets are off" after election results in Alberta raised concerns over the possibility of higher taxes for the companies.
- Among today's losers: SU -2.6%, OTCQB:HUSKF -5.2%, GTE -5.8%, PWE -5.7%, IMO -1%, CVE -1%, OTCQX:COSWF -3.4%, OTCPK:MEGEF -5%.
- COSWF is among the most exposed to a potential hike in royalties and stricter environmental policies, while electricity supplier TransAlta (NYSE:TAC) would suffer from the new government’s vow to shut coal plants sooner than planned, according to analysts at BMO Nesbitt Burns and RBC Dominion.
- Advice is split on owning stocks of companies that transport and process fuels in Alberta; Raymond James says stocks such as TransCanada (NYSE:TRP) and Enbridge (NYSE:ENB) are less directly exposed to reduced investment in the sector, but RBC advises to sell pipeline and midstream companies with operations in Alberta.
- Analysts also are divided about how much producers with oil refineries, such as SU and IMO, could offset losses from potentially higher royalties by boosting processing of crude in Alberta, a move pro-labor NDP has pledged to support.
Thu, May 7, 2:07 AM
Tue, May 5, 12:37 PM
- Gran Tierra Energy (GTE +2.2%) has climbed ~15% since April 21, when West Face Capital said it had acquired 9.8% of the company and was seeking a board shakeup, but Canaccord analyst Chris Brown thinks the rally is being fueled by the prospects of either a new management team or a takeover offer from an international player attracted by GTE’s liquidity.
- "As both outcomes could potentially result in a higher near-term share price, this could be an exciting time for Gran Tierra shareholders,” Brown writes.
- With “little or no guidance by the existing management team," investors enjoy a "rare opportunity for a potential suitor to step in and capitalize on uncertainty,” according to the analyst.
Thu, Apr. 23, 10:56 AM
- Gran Tierra Energy (GTE +3.4%) moves to address some of the concerns of activist investor West Face Capital, saying it will focus on its core Colombian properties and scale back spending elsewhere.
- GTE's statement comes after West Face, which owns a ~9.8% in the company, indicated plans earlier this week to nominate six directors at the coming annual meeting, sweeping out the current four-member board.
- GTE says it would consider West Face’s nominations “in due course,” while continuing to seek other qualified nominees; in response, West Face says GTE’s move does not go far enough, and that "a fundamental change of course is required for Gran Tierra, not half-measures by the existing board."
Tue, Apr. 21, 3:57 PM
- Gran Tierra Energy (GTE +4.1%) spikes higher after West Face Capital discloses a 9.78% active stake in the company via a 13D filing, and says it plans to nominate six candidates to replace the company's existng four-member board.
- Toronto-based West Face says GTE should refocus on its core Colombian properties; stop further spending in high-risk, high-cost ventures in Peru and Brazil; and address its bloated cost structure.
- West Face also proposing that Gary Guidry, who has led a number of small Canadian oil and gas companies, become GTE's CEO.
Tue, Apr. 14, 5:36 PM
Fri, Mar. 13, 2:41 PM
- Gran Tierra Energy (GTE -5.8%) tumbles after announcing various initiatives to cut costs and preserve its balance sheet, particularly reducing its employee headcount, in a bid to preserve cash and prepare for future growth opportunities.
- GTE expects the layoffs to knock more than 20% off its current workforce, causing G&A costs to fall ~22% from 2014 levels, which would indicate $11.25M in expected savings, or ~$1.67/bbl equivalent produced.
- GTE estimates it will save ~$19M/year from the actions, and adds that is negotiating additional operational savings with suppliers and service providers.
Mon, Mar. 2, 2:24 PM
- Gran Tierra Energy (GTE -3.7%) is lower after posting disappointing Q4 results, which included a decision to halt further development of its Bretana heavy oil field in Peru due to the current low commodity price environment.
- Associated with the decision to no longer commit capital to Peru, GTE was required to recognize $265M of Peruvian-related asset impairments for FY 2014.
- In maintaining its Buy rating and C$4.50 price target, Canaccord says the upside to the move is that it makes available nearly all GTE's $332M in cash resources to refocus into new growth areas in the coming years.
Mon, Mar. 2, 12:46 AM
Thu, Feb. 19, 9:12 AM
Mon, Feb. 9, 9:18 AM
- Gran Tierra Energy (NYSEMKT:GTE) +1.8% premarket after announcing a 55% cut to its 2015 capital budget to $140M from its previously announced budget of $310M.
- GTE says it is pursuing significant operating and G&A cost reductions and eliminations through resource re-allocation initiatives and working with contractors and suppliers.
- GTE also says it expects 2015 production to average 21.5K-22.5K boe/day.
Tue, Feb. 3, 8:34 AM
- Gran Tierra Energy (NYSEMKT:GTE) says the employment of CEO and President Dana Coffield has been "terminated," effective immediately, and has named COO Duncan Nightingale as interim President and CEO.
- No reason was given for the action except that it was not the result of any disagreement with the board.
- GTE also announces its 2014 year-end reserves, with Peru reserves to be adjusted downward following negative well results after year-end.
- Shares are downgraded to Neutral from Overweight at J.P. Morgan.
- GTE +2.2% premarket.
Mon, Jan. 26, 11:59 AM
- Gran Tierra Energy (GTE -1.2%) is downgraded to Neutral from Overweight with a price target lowered to $3 from $5 by Credit Suisse, which cites disappointing well results in Bretana Sur comprising a prior positive investment thesis of Columbia funding step-change growth in Peru.
- However, GTE was mentioned positively in a weekend Barron's article which cited the company's solid balance sheet and extremely discounted market price.
GTE vs. ETF Alternatives
Gran Tierra Energy Inc together with its subsidiaries is an international energy company engaged in oil and gas acquisition, exploration, development and production. The Company owns oil and gas properties in Colombia, Peru and Brazil.
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