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. 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. 3, 2014, 10:48 AM
- QEP Resources (QEP +4.3%) moves sharply higher after saying it completed the $2.5B sale of its natural gas gathering and processing business, including 2K miles of pipelines and four processing complexes, to Tesoro Logistics (TLLP +3.8%).
- QEP says it has now repaid a $600M term loan and all of its debt under its revolving credit line, and has expanded its credit line to $1.8B.
- Adding $2.5B to the balance sheet could allow QEP to boost dividends five-fold and still maintain enough cash to make both acquisitions and capex as needed to maintain market share, 24/7's Paul Ausick writes.
Oct. 20, 2014, 9:21 AM
Oct. 17, 2014, 6:06 PM
- QEP Resources (NYSE:QEP) +4.1% AH after Bloomberg reports that Williams Cos. (NYSE:WMB) is among the bidders for its Entrada Midstream natural gas pipeline unit, which could fetch ~$2.5B in a sale.
- Questar (NYSE:STR), QEP’s former parent, also is interested in Entrada, a spokesperson for the gas utility said separately today.
- Entrada and 56%-owned QEP Midstream (NYSE:QEPM) own nearly 3K miles of gas pipelines in the Rocky Mountain region, handling gas gathering and processing services for several major energy companies.
Jul. 14, 2014, 2:21 PM
- Whiting Petroleum's (WLL +7.4%) $6B buyout of Kodiak Oil & Gas (KOG +5.1%) is renewing investor attention on independent energy firms with operations in the Bakken Shale, especially those significantly owned by hedge funds; Paulson & Co. is the single biggest owner of KOG stock, with just under 10% of shares outstanding as of the last filing date.
- While many of the largest Bakken producers are huge companies or parts of huge companies - Hess (NYSE:HES), EOG, Statoil (NYSE:STO), Marathon Oil (NYSE:MRO), XTO Energy (NYSE:XOM) - a few small and mid-cap independent players show hedge fund interest, CNBC's Brian Sullivan writes.
- The single biggest holder of Oasis Petroleum (OAS +0.5%) also is John Paulson's hedge fund, which owns 9.9M shares (~9.8% of shares outstanding), Jana Partners owns 16M-plus shares in QEP Resources (QEP +1.4%), and WPX Energy (WPX +1.1%) has substantial hedge fund ownership.
Apr. 22, 2014, 2:35 PM
- QEP Resources (QEP -2.2%) is downgraded to Equal Weight from Overweight with a new $31 price target, down from $36, at Barclays as the firm lowers its 2014 and 2015 debt-adjusted cash flow estimates by 14%, primarily reflecting negative revisions in production forecasts following the disappointing outlook provided by QEP earlier this year.
- Barclays is cutting 2014-15 production estimates by 11% and 16%, respectively, including 8% and 9% cuts in oil production.
Feb. 26, 2014, 9:16 AM
Feb. 25, 2014, 6:19 PM
- QEP Resources (QEP) -13.3% AH as Q4 earnings and revenues both miss Wall Street expectations by wide margins.
- Q4 net equivalent production decreased by 10% to 75.1B cfe in Q4 vs. 83.9B cfe in the year-ago quarter, and says severe winter weather had a "meaningful negative impact" on results.
- Sees QEP Energy total equivalent production of 283B-307B cfe in 2014; plans 2014 capex of $1.76B-$1.86B.
Jan. 30, 2014, 9:08 AM
- QEP Resources (QEP) authorizes a spinoff of its midstream business, QEP Field Services Co., into a stand-alone public company.
- QEP says it is preparing the necessary filings for the move but will continue to evaluate proposals for alternate transactions for separating the midstream business.
- In an update on previously announced plans to sell non-core E&P assets, QEP plans to market its Granite Wash and Cana Woodford packages in mid-February.
- QEP also unveils a $500M share repurchase program.
- Jana Partners has been arguing since October for a more drastic restructuring of the company to spark shares; QEP +3.6% premarket.
Jan. 14, 2014, 8:58 AM
- QEP Resources (QEP) +2.7% premarket after Jana Partners discloses a 9.5% active stake, up from a previously reported 7.6% stake, via a 13D filing out last night.
- Jana says it will continue to have discussions with QEP regarding ways to maximize shareholder value, including the manner of separating QEPFS from QEP, board and management composition, capital allocation policy, incentive compensation structure, strategy and future plans.
Dec. 3, 2013, 12:24 PM
- QEP Resources' (QEP +2.1%) announcement that it will pursue a separation of its midstream business and its interest in QEP Midstream Partners (QEPM +2%) did not specify how it would be achieved, but Sterne Agee thinks it will happen through an IPO or an outright sale of the field services company and the interest in QEPM.
- There's a lot of room for growth in the midstream limited partnership, where incentive distribution rights kick in after a distribution of $0.2875 to limited partners, Sterne says; in Q3, the partnership distributed just $0.13.
- The firm also raises its price target on QEP to $39 from $36, based on a sum-of-the-parts estimated value.
Dec. 2, 2013, 4:28 PM
- QEP Resources (QEP) +5.1% AH after announcing it will pursue a separation of its midstream business, QEP Field Services, including QEP's interest in QEP Midstream Partners (QEPM).
- QEP's board asks management to work with the company's financial and legal advisers to evaluate the shareholder value impact of various separation alternatives.
Nov. 13, 2013, 10:49 AM
- Jana Partners sends a new letter to QEP Resources (QEP +3.8%) pressing for a separation of the company's midstream business "to unlock its true value."
- The activist fund, which owns 7.6% of QEP, also wants to add board members and see non-core asset sales and dropdowns.
- Chairman/CEO Charles Stanley "is unwilling to accept that true value maximization requires the full implementation of this plan, most importantly the immediate separation" of the field services operations, the letter says.
Oct. 22, 2013, 10:59 AM
- Gains in QEP Resources (QEP +7.8%) far outpace other energy companies after activist investor Jana Partners disclosed a big stake and offered steps it wants to see to help unlock value.
- In response, QEP says it has been considering Jana's suggestions, which included support of the IPO of QEP Midstream Partners (QEPM); Jana criticizes the way the MLP was created and wants a fuller separation of the midstream operations, arguing QEP no longer needs control of them and pointing to Devon Energy's plan to combine its midstream operations with Crosstex Energy as a model to follow.
- Sterne Agee says Jana’s “activism is not a surprise,” and believes Jana is "focused on the correct lever to unlock value - QEP’s Field Services assets not being appropriately valued in QEP Resources’ share price."
Oct. 21, 2013, 5:34 PM
- QEP Resources (QEP) +5.4% AH as hedge fund Jana Partners discloses a 7.53% stake, or 13.5M shares.
- Jana says it intends to have further discussions with QEP management regarding adding directors and executives to develop a growth strategy for the QEPFS midstream business, separating QEPFS from QEP, and pursuing a significant return of capital to shareholders.
QEP vs. ETF Alternatives
QEP Resources Inc is a holding company with two subsidiaries, which are engaged in oil and gas exploration and production and oil and gas marketing, operation of the Haynesville Gathering System and an underground gas storage facility.
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