Advertisements



Diamondback (FANG) to Buy Permian Basin Assets From Lario

Diamondback's (FANG) latest acquisition augments its presence in the Permian Basin by adding about 25,000 gross (15,000 net) acres in the core of the Northern Midland Basin. Diamondback Energy FANG recently announced that it has agreed to acquire all leasehold assets and related assets in the Permian Basin from Lario Oil & Gas in cash and stock.Per the terms of the deal, which is anticipated to be closed on Jan 31, 2023, Lario will receive 4.18 million Diamondback shares and $850 million as cash consideration.The acquisition includes about 25,000 gross (15,000 net) acres in the core of the Northern Midland Basin, with the full-year 2023 estimated average production of roughly 25 thousand barrels of oil equivalent per day. Moreover, FANG expects to reduce the operated rig count from two currently to one or less post-closing for 2023 development.“Lario is an attractive bolt-on to our existing Martin County position, home to some of the best rock in the Permian Basin,” stated Travis Stice, the chairman and chief executive officer of Diamondback. He further said that the deal checks all the boxes the firm looks for in an acquisition, bringing more than 150 gross locations to the core of the Northern Midland Basin, and provides immediate accretion to all relevant financial metrics.Founded in 2007, Diamondback Energy, Inc. is an independent oil and gas exploration & production company. The Midland, TX-headquartered firm’s primary focus is on the Permian Basin, where it has around 423,000 net acres.Its activities are concentrated in the Wolfcamp, Spraberry and Bone Spring formations. FANG focuses on growth through a combination of acquisitions and active drilling in America's hottest and lowest-cost shale region.Diamondback currently has a Zacks Rank #3 (Hold). Investors interested in the energy space might look at some better-ranked stocks — Patterson-UTI PTEN, Equinor EQNR and NexTier Oilfield Solutions NEX — each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Equinor’s 2022 earnings is pegged at $7.20 per share, which implies an increase of about 133.8% from the year-ago earnings of $3.08.EQNR beat estimates for earnings in all the trailing four quarters, the average being around 10.2%.The consensus mark for NexTier’s 2022 earnings stands at $1.41 per share, indicating an increase of about 427.9% from the year-ago loss of 43 cents.NEX beat estimates for earnings in all the trailing four quarters, the average being around 271%.The consensus estimate for Patterson’s 2022 earnings is pegged at 54 cents per share, which implies an increase of about 128% from the year-ago loss of $1.93.PTEN beat estimates for earnings in three of the trailing four quarters, the average being around 169.2%. This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.>>Yes, I Want to Help Protect My Portfolio During the RecessionWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PattersonUTI Energy, Inc. (PTEN): Free Stock Analysis Report Diamondback Energy, Inc. (FANG): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis Report NexTier Oilfield Solutions Inc. (NEX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Category: topSource: zacksNov 24th, 2022

Exxon Mobil Makes First Oil Discovery In Angola In 20 Years

Exxon Mobil Makes First Oil Discovery In Angola In 20 Years By Alex Kimani of OilPrice.com Over the past five years, the United States’ largest independent oil and gas company, Exxon Mobil, has mostly focused its exploratory activities in South America. Last month, the oil major announced that it had made two new discoveries at the Sailfin-1 and Yarrow-1 wells in the Stabroek block offshore Guyana, potentially adding more barrels to one of the most closely watched new oil discoveries. ExxonMobil has now made more than 30 discoveries on the block since 2015, and has ramped up offshore development and production at a pace that far exceeds the industry average. In contrast, Exxon’s exploits in Africa have been few and far between, with its last discovery on the continent coming nearly two decades ago. But Exxon has now announced that it has, together with its partners, discovered hydrocarbons in Block 15 off Angola in the Bavuca South prospect. This was the block’s 18th discovery, but the first since 2003. According to Exxon, the Valaris DS-9 drillship drilled the Bavuca South-1 well 365 km northwest from the coast at Luanda in 1,100 m (3,608 ft) of water, encountering 30 m (98 ft) of good-quality, hydrocarbon-bearing sandstone. Exxon owns a 36% interest in the block, with BP Exploration Angola (24%), ENI Angola Exploration (18%), Equinor Angola Block 15 (12%) and Sonangol P&P (10%) being its partners. Africa’s Oil & Gas Opportunities The last big fossil fuel discovery on the continent dates back to 2010 after Texas-based Anadarko Corp. (now a subsidiary of Occidental Petroleum Corp.) and Italian energy giant Eni S.p.A. (NYSE: E) discovered approximately 180 trillion cubic feet of natural gas reserves, equivalent to ~29 billion barrels of oil, in Mozambique’s supergiant offshore basin of Rovuma, immediately catapulting the South African nation to a potential global LNG superpower. As you might expect, there was a stampede by oil and gas majors including ExxonMobil, TotalEnergies (NYSE: TTE), Shell (NYSE: SHEL), and China National Petroleum Corp. (NYSE: SNP)) coming in to stake their claims.   Unfortunately, widespread terrorism and the growing menace of piracy have constantly held back progress with Mozambique fast joining the league of African nations grappling with a ‘resource curse.’ The security crisis in the northern region of Cabo Delgado had displaced hundreds of thousands of people, created a humanitarian crisis and even forced TotalEnergies to declare force majeure on its massive natural gas investment in the country.But the tides have now turned, and Mozambique has managed to get its act together just in time. The country is now poised to ship its first cargo of liquefied natural gas (LNG) overseas in November at a time when Europe is desperately trying to cut energy ties with Russia. Experts have estimated that Mozambique can earn in excess of $100B from its natural gas assets over the next 30 years. BP has already inked a deal to buy all of the output from Eni’s $7 billion Coral-Sul project--capable of producing 3.4 million metric tons of LNG per year--for the next 20 years. Meanwhile, TotalEnergies has announced plans to resume its massive $20 billion project toward the end of the year, with the terminal expected to churn out 13.1 million tons of LNG annually. In addition, ExxonMobil says it will make a final decision for an even larger project in the near future. Meanwhile, the European Union has planned a five-fold increase in financial support to $15 million to fight militants near Mozambique’s gas projects. The EU has already pledged to provide the country's army with an additional 45 million euros ($45 million) of financial support, and has so far given a SADC mission in the country 2.9 million euros of funding. On its part, Mozambique has laid out plans to set up a sovereign wealth fund toward the end of 2022, with 50% of the fund’s revenues to be reinjected into the fund while the remaining 50% will go to the government’s budget during the first 20 years of LNG production. Mozambique has the potential to move up the ladder and become a middle-income nation over the next two decades if it plays its cards right. Vijaya Ramachandran, director for energy and development at the Breakthrough Institute, says Germany and Europe should look to Africa, if they are serious about achieving energy security. Ramachandran notes that the continent is endowed with substantial natural gas reserves and new discoveries in the process of being tapped. Very little of Africa’s gas has been exploited, either for domestic consumption or export. Algeria is already an established major gas producer with substantial untapped reserves and is connected to Spain with several undersea pipelines. Germany and the EU are already working to expand pipeline capacity connecting Spain with France, from where more Algerian gas could flow to Germany and elsewhere. Libyan gas fields are connected by pipeline to Italy. In both Algeria and Libya, Europe should urgently help tap new fields and increase gas production. New pipelines under discussion currently focus on the Eastern Mediterranean Pipeline Project, which would bring gas from Israel’s offshore gas fields to Europe. But the biggest African sources lie south of the Sahara--including Nigeria, which has about a third of the continent’s reserves, and Tanzania. Senegal has recently discovered major offshore fields.  Ramachandra says Europe should not ignore these opportunities. For instance, the proposed Trans-Saharan pipeline will bring gas from Nigeria to Algeria via Niger. If the project is completed, the new pipeline will connect to the existing Trans-Mediterranean, Maghreb-Europe, Medgaz, and Galsi pipelines that supply Europe from transmission hubs on Algeria’s Mediterranean coast. The Trans-Saharan pipeline would be more than 2,500 miles long and could supply as much as 30 billion cubic meters of Nigerian gas to Europe per year--equivalent to about two-thirds of Germany’s 2021 imports from Russia (For comparison purposes, the Yamal-Europe pipeline, one of the major routes for Russian gas to Europe, is 2,607-mile-long). On its part, Nigeria is enthusiastic about exporting some of its 200 trillion-cubic-foot reserves of gas, with Nigerian Vice President Yemi Osinbajo arguing in favor of natural gas’ critical role, both as a relatively clean transition fuel and as a driver of economic development and foreign exchange earner. Unfortunately, the Trans-Saharan pipeline will likely take a decade or more to complete, and LNG shipments to Europe would bring quicker relief. Unfortunately, Europe’s biggest gas importer, Germany, has not built a single LNG import terminal as part of its  policy to make the country dependent on Russian gas and in turn make Russia more dependent on Germany. But there’s hope: Berlin has already renounced its old ways and says it will now build LNG infrastructure.  Luckily for Germany and other stranded EU nations, Ramachandran says LNG loading ports can be built reasonably quickly in Africa, with the Greater Tortue Ahmeyin field, an offshore gas deposit straddling the maritime border between Senegal and Mauritania, a prime example. When the field comes online next year, it will place the two west African nations among Africa’s top gas producers. Floating liquefaction plants above the offshore gas field produce, liquefy, store, and transfer the gas to LNG tankers that ship it directly to importing countries. While the initial production from this field will be small, it is slated to double in a few years, and the field sits within a larger basin of natural gas with substantially greater reserves. Elsewhere in Africa, too, gas production will continue to expand as projects in Tanzania, Mozambique, and other countries come online in the next few years. Developing a gas pipeline as big as the Trans-Saharan pipeline will likely present many challenges as it runs through regions plagued by conflict and insurgency. But these kinds of projects could alleviate Europe’s energy crisis while also helping Africa to develop and integrate economically. Tyler Durden Sun, 11/13/2022 - 20:00.....»»

Category: smallbizSource: nytNov 13th, 2022

Marathon Oil (MRO) to Acquire Eagle Ford Assets in $3B Deal

Marathon Oil (MRO) expects to close the Eagle Ford acquisition deal by year-end 2022. Marathon Oil Corporation MRO recently declared that it agreed to buy the Eagle Ford assets of Ensign Natural Resources for total cash consideration worth $3 billion. The deal is subject to customary terms and conditions, including closing adjustments.Further, the deal is anticipated to be concluded by year-end 2022 and will result in MRO approximately doubling its position in South Texas' Eagle Ford shale basin.The Houston, TX-based firm expects the transaction to be immediately and significantly accretive to its key financial metrics. Moreover, it will drive 17% growth in the company’s 2023 operating cash flow and a 15% rise in its free cash flow.Marathon Oil stated that the acquisition adds 130,000 net acres adjacent to its existing Eagle Ford position, with a 97% working stake, mainly situated in the prolific condensate and wet-gas windows of the play. This allows the firm to leverage its knowledge, experience and operating strengths in the region while materially augmenting its Basin-scale to 290,000 net acres.Marathon Oil anticipates gaining 600 undrilled locations, representing an inventory life of more than 15 years. Moreover, the company stated that the acquisition comprises 700 existing wells, a majority of which were completed before 2015 with early-generation completion designs, thus offering the potential for upside redevelopment.MRO expects to fund the deal with a combination of cash on hand, borrowings on the firm's revolving credit facility and new prepayable debt.Incorporated in 2001, Marathon Oil Corporation is a leading oil and natural gas exploration and production company with operations in the United States and Africa.As of the end of 2021, Marathon Oil had approximately 1,106 million oil-equivalent barrels in net proved reserves (52% crude oil/condensate and 68% proved developed), and 89% were located in the United States. In 2021, the company’s overall production from continuing operations was 347,000 net barrels of oil equivalent per day.Marathon Oil currently carries a Zacks Rank #3 (Hold). Investors interested in the energy space might look at some better-ranked stocks — Par Pacific PARR, SilverBow Resources SBOW and Equinor EQNR — each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Par Pacific’s 2022 earnings stands at $5.74 per share, which indicates an increase of about 433.7% from the year-ago loss of $1.72.The consensus mark for PARR’s 2022 earnings has been revised upward three times over the past 60 days from $4.03 to $5.74 per share.The Zacks Consensus Estimate for SilverBow’s 2022 earnings stands at $8.72 per share, up 35.8% from the year-ago earnings of $6.42.SBOW beat estimates for earnings in all the trailing four quarters, the average being 36%.The Zacks Consensus Estimate for Equinor’s 2022 earnings is pegged at $7.37 per share, which implies an increase of about 139.3% from the year-ago earnings of $3.08.EQNR beat estimates for earnings in all the trailing four quarters, the average being around 10.2%. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How To Profit From Trillions On Spending For Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marathon Oil Corporation (MRO): Free Stock Analysis Report Par Pacific Holdings, Inc. (PARR): Free Stock Analysis Report SilverBow Resources (SBOW): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 7th, 2022

Powell"s Hawkish Tone Flares Up Volatility: 5 Ultra-Safe Picks

Amid Powell's hawkish tone-induced volatility, investing in risk-adjusted stocks like Archer Daniels Midland (ADM), Lamb Weston (LW), General Mills (GIS), American Electric Power (AEP) and National Fuel Gas Company (NFG) seems judicious. Fed Chair Jerome Powell, last week, firmly indicated that interest rates would move higher than what policymakers had anticipated in September. He had emphasized that it’s “premature” to discuss pausing interest rate hikes, while policymakers collectively agreed that tightening of monetary policy may, in due course, impact economic growth.Powell intends to continue hiking interest rates as long as inflation remains elevated. He acknowledged that inflation may have softened from its fastest rise in more than 40 years, yet core inflationary pressure continues to accelerate at a painful pace. The core consumer price index, which generally excludes food and energy components, jumped 6.6% year over year in September and registered its highest 12-month climb since 1982, according to the U.S. Labor Department.The Fed, by the way, has already approved its fourth consecutive rate hike of 75 basis points on Nov 2, taking the interest rate to a range of 3.75% to 4%. The CME FedWatch Tool added that there is a 66% possibility of a half percentage point rate hike in December, taking the interest rate to between 4.25% and 4.5%. In fact, more rate hikes are looming owing to better-than-expected payroll numbers. The labor market adde 261,000 jobs in October, way more than analysts’ expectations.Any increase in jobs is expected to boost consumer outlays, thereby lifting the prices of essential goods and services. On the contrary, the Fed is aiming to curb inflation, which will no doubt lead to future rate hikes. Economists are also widely expecting Fed’s terminal rate to be 5% by mid-2023, citing a MarketWatch article.However, a rate hike doesn’t bode well for the stock market since it affects consumer spending habits and deters economic growth. Perhaps that’s the reason why major bourses like the Dow, the S&P 500, and the Nasdaq posted weekly declines on Nov 4. But investors shouldn’t be upset. Instead, they should place their bets on risk-adjusted stocks like Archer Daniels Midland ADM, Lamb Weston LW, General Mills GIS, American Electric Power AEP and National Fuel Gas Company NFG.These stocks belong to the consumer staples and utility sectors making them non-cyclical in nature, or in other words their activities remain unperturbed by market gyrations. Additionally, they are dividend payers, possessing a better-quality business, which makes them immune to market volatility. To top it, these stocks have a low beta (ranges from 0 to 1) making them less unstable than the broader market. These stocks also boast a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Archer Daniels Midland is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products. The company has a beta of 0.85 and a Zacks Rank #1.ADM has a dividend yield of 1.7%. The Zacks Consensus Estimate for its current-year earnings has moved up 9.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 42.6%.Lamb Weston is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and provides a range of appetizers. The company has a beta of 0.54 and a Zacks Rank #1.LW has a dividend yield of 1.2%. The Zacks Consensus Estimate for its current-year earnings has moved up 8.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 45.7%.General Mills is a global manufacturer and marketer of branded consumer foods sold through retail stores. The company has a beta of 0.34 and a Zacks Rank #2.GIS has a dividend yield of 2.7%. The Zacks Consensus Estimate for its current-year earnings has moved up 2% over the past 60 days. The company’s expected earnings growth rate for the current year is 3.6%.American Electric Power is a public utility holding company, which, through directly and indirectly owned subsidiaries, generates, transmits and distributes electricity, natural gas and other commodities. The company has a beta of 0.41 and a Zacks Rank #2.AEP has a dividend yield of 3.5%. The Zacks Consensus Estimate for its current-year earnings has moved up 0.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 6.1%.National Fuel Gas Company is an integrated energy company, which has natural gas assets located in the prolific Appalachian basin and oil-producing assets in California. The company has a beta of 0.74 and a Zacks Rank #1.NFG has a dividend yield of 3%. The Zacks Consensus Estimate for its current-year earnings has moved up 8.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 26.5%. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How To Profit From Trillions On Spending For Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Electric Power Company, Inc. (AEP): Free Stock Analysis Report General Mills, Inc. (GIS): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report National Fuel Gas Company (NFG): Free Stock Analysis Report Lamb Weston (LW): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 7th, 2022

Energy Transfer Raises Guidance, But Stock Lower On Revenue Miss

Shares of Energy Transfer haven’t gotten traction since the company’s third-quarter report Tuesday, despite raising full-year guidance. When boosting its forecast, the company cited strength from a recent acquisition. Analysts have a “buy” rating on the stock and see a potential upside of 21% in the next 12 to 18 months. Energy Transfer (NYSE:ET) didn’t […] Shares of Energy Transfer haven’t gotten traction since the company’s third-quarter report Tuesday, despite raising full-year guidance. When boosting its forecast, the company cited strength from a recent acquisition. Analysts have a “buy” rating on the stock and see a potential upside of 21% in the next 12 to 18 months. Energy Transfer (NYSE:ET) didn’t get any traction after its third-quarter earnings report Tuesday, although at least part of its decline was due to broad market action. Shares gapped down at the open Thursday, but about half an hour into the session were moving higher from earlier lows, but still seeking direction. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2022 hedge fund letters, conferences and more   Find A Qualified Financial Advisor Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you're ready to be matched with local advisors that can help you achieve your financial goals, get started now. As a group, stocks in the liquid natural gas industry have been performing well in recent months. For example, fellow large-cap Cheniere Energy (NYSE: LNG) posted four months in a row of price gains, although shares gapped lower Thursday morning, following the company’s surprised Wall Street with a quarterly loss, due to special situations involving derivatives and legal settlements. However, Cheniere said it delivered higher volumes of liquid natural gas. This and other positive developments offset the bad news. Dallas-based Energy Transfer specializes in midstream transportation, liquid transportation and storage for natural gas. Energy Transfer reported third-quarter net income of $1.01 billion, or $0.30 per share, adjusted for one-time costs and gains. That’s exactly what Wall Street had anticipated, after adjustments. Revenue was $22.94 billion, which came in below views, as you can see using MarketBeat earnings and sales data for the company. With the market always looking ahead, you’d expect that an increased income forecast would give the stock a boost. However, a day of broad-market declines, dominated by the Federal Reserve’s 75-basis-point interest-rate increase, was too much for a mixed earnings report to overcome. Boosted Full-Year Guidance The company increased earnings guidance for the third time this year, citing the strength of an acquisition, along with robust production and high demand for natural gas. It now expects adjusted earnings before interest, taxes, depreciation, and amortization for the full year to come in between $12.8 billion and $13.0 billion, above previous guidance calling for a range between $12.6 billion and $12.8 billion. In its report, the company specifically mentioned that transported volumes increased primarily due to the recent acquisition of the Enable Oklahoma Intrastate Transmission system. That deal was completed in December 2021. The acquisition significantly strengthened Energy Transfer’s midstream and gas transportation systems by adding Enable’s natural gas gathering and processing assets in the Anadarko Basin in Oklahoma, as well as pipelines in Oklahoma and surrounding states. It also boosted Energy Transfer’s gas gathering and processing assets in the Arkoma basin across Oklahoma and Arkansas, as well as in the Haynesville Shale in East Texas and North Louisiana. In the third-quarter report, Energy Transfer also cited increased production in the Haynesville Shale. Energy Transfer is still using a growth-through-acquisition strategy. In September, it completed the acquisition of Woodford Express, a Mid-Continent gas gathering, and processing system, for approximately $485 million. Strong Returns In Recent Months Despite the company’s disappointing performance following its earnings report, it still boasts strong recent returns, with a three-month gain of 11.71% and a year-to-date gain of 57.53%. With Wednesday’s pullback, Energy Transfer found support just above its 10-day moving average. When a stock sees a selloff but gets moving-average support, that’s a sign that big investors aren’t selling everything. However, the stock gapped down Thursday, along with the broader market, driven largely by continued concerns about the Federal Reserve’s Since May, the stock repeatedly hit resistance just below $12.50, but managed to rally as high as $12.95 on Tuesday before pulling back to finish the session lower. It cleared a short consolidation in late October, following the company’s announcement that it had increased its quarterly dividend by 15.2%, to $0.265 per share. MarketBeat dividend data show a current yield of 7.44%. Analysts have a “buy”rating on the stock with a price target of $15, representing a potential upside of 21.36%. With the broad market once again selling off, it’s wise to use caution before making any purchases. Should you invest $1,000 in Energy Transfer right now? Before you consider Energy Transfer, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Energy Transfer wasn't on the list. While Energy Transfer currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. Article by Kate Stalter, MarketBeat.....»»

Category: blogSource: valuewalkNov 3rd, 2022

CWC ENERGY SERVICES CORP. ANNOUNCES RECORD THIRD QUARTER AND YEAR-TO-DATE 2022 OPERATIONAL AND FINANCIAL RESULTS

CALGARY, AB, Oct. 28, 2022 /CNW/ - (TSXV:CWC) CWC Energy Services Corp. ("CWC" or the "Company") announces the release of its operational and financial results for the three and nine months ended September 30, 2022. The Financial Statements and Management Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2022 are filed on SEDAR at www.sedar.com. Financial Highlights $ thousands, except shares, per share amounts, and margins Three months ended Nine months ended September 30, September 30, 2022 2021 Change % 2022 2021 Change % FINANCIAL RESULTS Revenue Contract Drilling 35,895 8,437 325 % 75,325 19,179 293 % Production Services 25,886 19,339 34 % 69,968 49,763 41 % 61,781 27,776 122 % 145,293 68,942 111 % Other income - (1,118) (100 %) - (4,762) (100 %) Adjusted EBITDA(1) 16,169 5,394 200 % 32,195 12,737 153 % Adjusted EBITDA margin (%)(1) 26 % 19 % 22 % 18 % Net income 9,517 2,019 371 % 15,620 1,707 815 % Net income margin (%)(2) 15 % 7 % 8 % 11 % 2 % 9 % Capital expenditures 4,844 1,530 217 % 20,317 4,239 379 % Per share information: Weighted average number of shares outstanding – basic 512,074,834 504,764,797 510,341,075 505,110,980 Weighted average number of shares outstanding - diluted 524,588,670 513,738,573 522,059,668 512,715,415 Adjusted EBITDA(1) per share - basic and diluted $ 0.03 $ 0.01 $ 0.06 $ 0.03 Net income per share - basic and diluted $ 0.02 $ 0.00 $ 0.03 $ 0.00 $ thousands, except ratios   September 30, 2022 December 31, 2021 FINANCIAL POSITION AND LIQUIDITY Working capital (excluding debt)(1) 37,819 18,966 Working capital (excluding debt) ratio(1) 3.5:1   3.1:1   Total assets 265,050 226,645 Total long-term debt (including current portion) 52,087 45,847 Shareholders' equity 184,499 163,269 (1) Please refer to the "Non-GAAP and Other Financial Measures" section for further information. (2) Net income margin is a Non-GAAP Measure which is calculated as net income divided by total revenue. Working capital (excluding debt) for September 30, 2022 has increased $18.9 million (99%) since December 31, 2021 driven by increases in accounts receivable ($25.9 million (99%)), partially offset by decreases in prepaid expenses and deposits ($1.0 million (60%)) and increases in accounts payable ($6.0 million (67%)). Long-term debt (including current portion) of $52.1 million has increased $6.2 million (14%) from December 31, 2021 primarily due to the purchase of three (3) triple drilling rigs in June 2022 and partially offset by the repayment of long-term debt from operating cash flows in the first nine months of 2022. Highlights for the Three Months Ended September 30, 2022 Q3 2022 saw the Company achieve a new milestone with quarterly record revenue, Adjusted EBITDA(1) and net income in CWC's seventeen (17) year history. Record revenue in Q3 2022 of $61.8 million, an increase of $34.0 million (122%) compared to $27.8 million in Q3 2021. Revenue increased $27.5 million (325%) in Q3 2022 for the Contract Drilling segment and $6.5 million (34%) for the Production Services segment compared to Q3 2021. Record Adjusted EBITDA(1) in Q3 2022 of $16.2 million, an increase of $10.8 million (200%) compared to $5.4 million in Q3 2021. Record net income in Q3 2022 of $9.5 million, an increase of $7.5 million compared to $2.0 million in Q3 2021. On July 29, 2022, the Company exercised the accordion feature to expand the Credit Facility to an $80.3 million Bank Loan comprised of a $50.7 million Canadian syndicated facility, a US$12.0 million (C$15.6 million) U.S. syndicated facility, a $7.5 million Canadian operating facility and a US$5.0 million (C$6.5 million) U.S. operating facility. The Company further amended the Credit Facility to extend the maturity to July 31, 2025. (1)              Please refer to the "Non-GAAP and Other Financial Measures" section for further information.  Highlights for the Nine Months Ended September 30, 2022 The nine months ended September 30, 2022 saw the Company achieve a new milestone with record revenue, Adjusted EBITDA(1) and net income in CWC's seventeen (17) year history. Record revenue for the first nine months of 2022 of $145.3 million, an increase of $76.4 million (111%) compared to $68.9 million in the first nine months of 2021. Revenue increased $56.1 million (293%) in the Contract Drilling segment and $20.2 million (41%) in the Production Services segment compared to the first nine months of 2021. With revenue of $145.3 million for the first nine months of 2022, CWC has surpassed the previous annual record revenue of $144.8 million for the year ended 2018. Record Adjusted EBITDA(1) for the first nine months of 2022 of $32.2 million, an increase of $19.5 million (153%) compared to $12.7 million in the first nine months of 2021. With Adjusted EBITDA(1) of $32.2 million for the first nine months of 2022, CWC is on track to surpass the previous annual record Adjusted EBITDA of $34.1 million for the year ended 2014. Record net income for the first nine months of 2022 of $15.6 million, an increase of $13.9 million compared to $1.7 million in the first nine months of 2021. With net income of $15.6 million for the first nine months of 2022, CWC has surpassed the previous annual record net income of $12.7 million for the year ended 2011. (1)              Please refer to the "Non-GAAP and Other Financial Measures" section for further information.  Industry Overview Average crude oil and natural gas prices Three months ended Sep. 30, 2022 Jun. 30, 2022 Mar. 31, 2022 Dec. 31, 2021 Sep. 30, 2021 Jun. 30, 2021 Mar. 31, 2021 Dec. 31, 2020 Crude oil West Texas Intermediate (US$/bbl)  91.55 108.41 94.29 77.19 70.56 66.12 57.79 42.75 Western Canadian Select (US$/bbl) 70.95 93.05 81.49 60.44 57.64 54.68 45.39 33.48 Natural gas AECO (C$/mcf) 5.00 6.92 4.66 4.89 3.75 3.05 2.91 2.84 Source: GLJ Ltd price forecasts. Russia's invasion of Ukraine and the western world's response with trade sanctions against Russia, including sanctions on crude oil and natural gas by certain countries, have resulted in a significant increase in crude oil and natural gas prices in the first nine months of 2022. In addition, the continued re-opening of the global economy after being significantly slowed down in 2020 and 2021 due to the COVID-19 health pandemic, has resulted in a steady rise in global demand without a significant corresponding increase in global supply for crude oil and natural gas, further justifying the higher prices experienced in the first nine months of 2022. However, significant inflationary increases and rising interest rates have sparked fears of a global recession, which has recently pulled WTI back to a range of US$80 to US$100/bbl. Despite recessionary fears, discussion about energy security is at the top of many governmental agendas, which should bode well for North American oil and gas activity and oilfield service companies for the foreseeable future. Corporate Overview CWC Energy Services Corp. is a premier contract drilling and well servicing company operating in Canada and the United States with a complementary suite of oilfield services including drilling rigs and service rigs. The Company's corporate office is located in Calgary, Alberta, with operational locations in Nisku, Grande Prairie, Slave Lake, Sylvan Lake, Drayton Valley, Lloydminster, Provost and Brooks, Alberta and U.S. offices in Denver, Colorado and Casper, Wyoming. The Company's shares trade on the TSX Venture Exchange under the symbol "CWC". The Contract Drilling division operates under the trade name CWC Ironhand Drilling and is comprised of thirteen (13) electric triple drilling rigs with depth ratings from 3,600 to 7,600 metres and nine (9) telescopic double drilling rigs with depth ratings from 3,200 to 5,000 metres. All twenty-two (22) rigs have top drives, seventeen (17) have pad rig moving systems, nine (9) have 7,500 psi pumping systems, three (3) have carbon reduction bi-fuel capabilities, and two (2) have high line power capabilities. All of the drilling rigs are ideally suited for the most active depths for horizontal drilling in the Western Canadian Sedimentary Basin ("WCSB"), including the Montney, Cardium, Duvernay and other deep basin horizons, and select United States basins including the Permian, Eagle Ford, Niobrara, Denver-Julesburg ("DJ"), Powder River and Bakken. The Production Services division operates under the trade name CWC Well Services. With a fleet of 143 service rigs, CWC is one of Canada's largest well servicing companies as measured by active fleet and operating hours. CWC's service rig fleet consists of 75 single, 54 double and 14 slant rigs providing services which include completions, maintenance, workovers and well decommissioning with depth ratings from 1,500 to 5,000 metres. In 2022, CWC chose to park 79 of its service rigs and focus its sales and operational efforts on the remaining 64 active service rigs due to the reduction in the number of service rigs currently required to service the WCSB and the tight labour market experienced in the industry for service rig crews. Results of Operations  Three months ended September 30,   Change  Change  Nine months ended September 30,   Change  Change $ thousands, except per share amounts 2022 2021 $ % 2022 2021 $ % Revenue 61,781 27,776 34,005 122 % 145,293 68,942 76,351.....»»

Category: earningsSource: benzingaOct 28th, 2022

Strong Production to Drive Devon Energy"s (DVN) Q3 Earnings

Devon Energy's (DVN) third-quarter earnings are likely to be driven by strong production and contributions from acquired assets in the Williston Basin. Devon Energy Corporation DVN is set to report third-quarter earnings on Nov 1, after market close. This oil and gas company delivered an earnings surprise of 8.82% in the last reported quarter.Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.Factors at PlayDevon Energy’s domestic focus and multi-basin high-quality assets ensure strong production volumes. Acquisition of RimRock Oil and Gas LP in the Williston Basin at the beginning of the third quarter is likely to be accretive to its earnings.Strong oil production from the high-margin Delaware Basin region is expected to have boosted third-quarter oil production. Strong commodity prices are also likely to have enhanced performance.A high percentage of DVN’s third-quarter production volumes are liquids. To safeguard against the sudden fluctuation in commodity prices, Devon has hedged 20% of its production volume, which will safeguard it against price fluctuation.ExpectationsThe Zacks Consensus Estimate for third-quarter oil production is pegged at 293,000 barrels of oil equivalent per day (Boe/d). The Zacks Consensus Estimate for third-quarter natural gas liquid (NGL) production is pegged at 153,000 Boe/d.Devon Energy expects total production for the third quarter in the range of 593,000-613,000 Boe/d.What Our Quantitative Model PredictsOur proven model does not conclusively predict an earnings beat for Devon Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.Devon Energy Corporation Price and EPS Surprise Devon Energy Corporation price-eps-surprise | Devon Energy Corporation QuoteEarnings ESP: Devon Energy has an Earnings ESP of -0.01%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: Devon Energy currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.Stocks to ConsiderInvestors can also consider the following players from the same industry that have the right combination of elements to beat on earnings in this reporting cycle.Chesapeake Energy Corporation CHK is scheduled to release third-quarter 2022 numbers on Nov 1. CHK has an Earnings ESP of +0.42% and has a Zacks Rank of 2.Chesapeake Energy’s long-term (three to five-year) earnings growth is 6.27%. The Zacks Consensus Estimate for third-quarter 2022 earnings of Chesapeake imply a year-over-year growth of 88.2%.Murphy Oil Corporation MUR is scheduled to release third-quarter 2022 numbers on Nov 3. MUR has an Earnings ESP of +0.79% and carries a Zacks Rank of 3.The Zacks Consensus Estimate for third-quarter 2022 earnings of Murphy Oil implies year-over-year growth of 550%.Diamondback Energy FANG is scheduled to release third-quarter 2022 numbers on Nov 8. FANG has an Earnings ESP of +0.63% and has a Zacks Rank of 3.FANG’s long-term earnings growth is 21.9%. The Zacks Consensus Estimate for third-quarter 2022 earnings of Diamondback Energy implies year-over-year growth of 119.4%.Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.>>Yes, I Want to Help Protect My Portfolio During the RecessionWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Devon Energy Corporation (DVN): Free Stock Analysis Report Chesapeake Energy Corporation (CHK): Free Stock Analysis Report Murphy Oil Corporation (MUR): Free Stock Analysis Report Diamondback Energy, Inc. (FANG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksOct 27th, 2022

4 Integrated Energy Stocks to Gain From the Promising Industry

High oil price and handsome midstream & downstream businesses are making the outlook for the Zacks Oil & Gas Integrated International industry bright. ExxonMobil (XOM), Chevron (CVX), Shell (SHEL), and BP are well-positioned to make the most of the highly favorable business environment. Oil price is still highly favorable for exploration and production operations, paving the way for further rig additions in shale plays. Having strong presence in upstream, midstream and downstream operations, integrated energy companies’ businesses are diversified and, therefore, relatively less volatile. Thus, the Zacks Oil and Gas Integrated International industry’s outlook is bright.Most industry players are also leading energy transitions. They are allocating more money toward renewables, thereby will generate additional cashflows. Exxon Mobil Corporation XOM,Chevron Corporation CVX, Shell plc SHEL and BP plc BP are well-positioned to make the most of the overall promising business environment.About the IndustryThe Zacks Oil and Gas Integrated International industry covers companies primarily involved in upstream, midstream and downstream operations. These companies have upstream businesses in the United States (including prolific shale plays and the deepwater Gulf of Mexico), Asia, South America, Africa, Australia and Europe. Midstream operations of energy companies entail transporting oil, natural gas liquids and refined petroleum products. Under downstream businesses, the firms buy raw crude to produce refined petroleum products. The companies’ downstream activities involve chemical businesses that manufacture raw materials for making plastics. The integrated players are now gradually focusing on renewables, leading to the energy transition. The firms aim to lower emissions from operations and cut the carbon intensity of the products sold.4 Trends Shaping the Future of the Oil & Gas Integrated International IndustryOil Price Healthy: Oil price is currently trading above the $85-per-barrel mark, backed by positive events like a weak dollar and record U.S. crude exports. Thus, a favorable commodity pricing scenario will continue to aid the upstream business of international integrated energy players.Sturdy Midstream Demand: With the possibility of upstream energy companies adding more rigs, oil and gas production is expected to increase further. This will likely boost the demand for pipeline and storage assets since more commodities will be needed to be transported and stored. The midstream business has lower exposure to commodity price volatility since shippers generally book pipeline assets for the long term, thereby generating stable fee-based revenues.Business Diversification: International integrated energy companies are gradually investing in the renewable business. Thus, by diversifying operations, companies will be able to capitalize on the mounting demand for cleaner energy.Strong Refining Fundamentals: Significant recovery in demand for end products amid global shortages in refining capacity is making prospects of the refining business bright. Thus, the integrated players belonging to the industry are likely to generate handsome cashflows from refining operations. Zacks Industry Rank Indicates Encouraging OutlookThe Zacks Oil and Gas Integrated International industry is part of the broader Zacks Oil - Energy sector. It carries a Zacks Industry Rank #57, which places it in the top 23% of more than 250 Zacks industries.The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates impressive near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Before we present a few international integrated energy stocks that you may want to consider or keep an eye on, let’s take a look at the industry’s recent stock market performance and current valuation.Industry Outperforms Sector and S&P 500The Zacks Oil and Gas Integrated International industry has outperformed the broader Zacks Oil - Energy sector and the Zacks S&P 500 composite over the past year.The industry has gained 36.7% over this period compared with the S&P 500’s decline of 17.2% and the broader sector’s growth of 23.6%.One-Year Price PerformanceIndustry's Current ValuationSince oil and gas companies are debt-laden, it makes sense to value them based on the Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA) ratio. This is because the valuation metric takes not just equity into account but also the level of debt.On the basis of the trailing 12-month EV/EBITDA, the industry is currently trading at 3.48X, lower than the S&P 500’s 11.84X. It is also below the sector’s trailing-12-month EV/EBITDA of 3.61X.Over the past five years, the industry has traded as high as 7.47X, as low as 2.76X, with a median of 4.96X.Trailing 12-Month EV/EBITDA Ratio4 Integrated International Stocks Moving Ahead of the PackBP: The British energy giant has been generating handsome returns from refining and marketing operations, thanks to the recovery in demand. On the dividend front, the firm expects that if the oil price trades around $60 per barrel, it will be able to hike its dividend per ordinary share by around 4% annually through 2025. Investors applaud BP as it also expects to reward shareholders with stock buybacks. The company, currently carrying a Zacks Rank #3 (Hold), is also focused on the reduction of net debt load.Price and Consensus: BPChevron: Chevron is also a leading integrated energy player with operations across the world. Apart from a strong balance sheet, it has a solid capital discipline that will help it tide over volatile commodity prices. The energy major’s conservative capital spending will probably help the company generate considerable cash flow, even in an unstable business scenario. The primary growth driver for Chevron, at least in the near term, is its low-cost Permian projects. The #3 Ranked stock has seen upward earnings estimate revisions for 2022 in the past seven days.Price and Consensus: CVXShell: Being a leading player in liquefied natural gasacross the globe, Shell’s business prospects seem bright. In the energy transition front, it is playing a crucial role, setting an ambitious goal of becoming a net-zero-emissions energy business by 2050 or before. For 2022, SHEL, carrying a Zacks Rank #2 (Buy), is likely to see earnings growth of 118.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Price and Consensus: SHELExxon Mobil: ExxonMobil is among the largest integrated energy companies in the world. The energy major can rely on its strong balance sheet to withstand any business turmoil. ExxonMobil is banking on low-cost project pipelines centered around the Permian — the most prolific basin in the United States — and offshore Guyana resources. The stock, having a Zacks Rank of 2 at present, has seen upward estimate revisions for 2022 earnings in the past seven days.Price and Consensus: XOM This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.>>Yes, I Want to Help Protect My Portfolio During the RecessionWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM): Free Stock Analysis Report BP p.l.c. (BP): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksOct 27th, 2022

Will Higher Energy Prices Aid Vista (VIST) in Q3 Earnings?

While higher commodity prices are likely to have boosted Vista Oil & Gas' (VIST) profit levels in the third quarter, escalation in lifting costs might have played spoilsport. Vista Oil & Gas, S.A.B. de C.V. VIST is set to release third-quarter results on Oct 26. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 94 cents per share on revenues of $305.1 million.Let’s delve into the factors that might have influenced the Mexico-based energy firm’s results in the September quarter. But it’s worth taking a look at Vista’s previous-quarter performance first.Highlights of Q2 Earnings & Surprise HistoryIn the last reported quarter, the Argentina-focused company beat the consensus mark due to higher production and commodity prices. Vista had reported earnings per share of $1.06, well above the Zacks Consensus Estimate of 43 cents. Revenues of $294 million generated by the firm had also come in 19.8% above the consensus mark.VIST beat the Zacks Consensus Estimate for earnings thrice in the last four quarters and missed once, resulting in an earnings surprise of 47.8%, on average. This is depicted in the graph below: Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR Price and EPS Surprise Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR price-eps-surprise | Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR Quote Trend in Estimate RevisionThe Zacks Consensus Estimate for the third-quarter bottom line has remained the same in the past seven days. The estimated figure indicates a massive 1,780% jump year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 74.3% increase from the year-ago period.Factors to ConsiderVista is expected to have benefited from the surge in hydrocarbon realizations. In the second quarter of 2022, the company’s average realized oil and natural gas prices increased by 43% and 11%, respectively, from the year-ago period. The uptick is most likely to have continued in the third quarter, with commodity prices remaining strong on the back of geopolitical tensions, strained supply and robust demand. This price boost is likely to have buoyed the revenues and cash flows of Vista.The company is also expected to have reaped the reward of higher production during the quarter. VIST continues to churn out an impressive output from its assets in southwest Argentina’s Vaca Muerta basin, where it focuses on growth through a combination of acquisitions and active drilling. In the previous quarter, VIST’s total output was up 12% year over year over year. The uptick is expected to have continued in the to-be-reported quarter on the back of higher productivity from the company’s flagship Bajada del Palo Oeste region.On a somewhat bearish note, Vista’s total lifting costs in the second quarter increased around 7% year over year to $31.7 million. The upward cost trajectory is likely to have continued in the third quarter due to higher product costs and inflationary pressure. This is expected to have somewhat dented the company’s to-be-reported earnings.What Does Our Model Say?The proven Zacks model does not conclusively show that Vista is likely to beat estimates in the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Earnings ESP: Vista Oil & Gas has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 94 cents per share each.Zacks Rank: VIST currently carries a Zacks Rank #1, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.You can see the complete list of today’s Zacks #1 Rank stocks here.Stocks to ConsiderWhile an earnings beat looks uncertain for Vista, here are some firms from the energy space that you may want to consider on the basis of our model:Murphy USA MUSA has an Earnings ESP of +12.68% and a Zacks Rank #1. The firm is scheduled to release earnings on Oct 26.For 2022, Murphy USA has a projected earnings growth rate of 69.6%. Valued at around $6.6 billion, MUSA has gained 59.9% in a year.PBF Energy PBF has an Earnings ESP of +10.30% and a Zacks Rank #2. The firm is scheduled to release earnings on Oct 27.PBF topped the Zacks Consensus Estimate by an average of 78% in the trailing four quarters, including a 43.8% beat in Q2. PBF has gained 180.9% in a year.Oceaneering International OII has an Earnings ESP of +50% and a Zacks Rank #2. The firm is scheduled to release earnings on Oct 26.The Zacks Consensus Estimate for OII’s 2022 earnings has been revised 33.3% upward over the past 60 days. Valued at around $966.5 million, Oceaneering International has lost 38.1% in a year.Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in?  If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.>>Send me my free report on the top 5 EV stocksWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Oceaneering International, Inc. (OII): Free Stock Analysis Report Murphy USA Inc. (MUSA): Free Stock Analysis Report PBF Energy Inc. (PBF): Free Stock Analysis Report Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR (VIST): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksOct 21st, 2022

More Appreciation on the Horizon for These 5 U.S. Upstream Stocks

Notwithstanding recession-related headwinds, the Zacks Oil and Gas - US E&P operators like APA, AR, CRK, NOG and ESTE should enjoy some upside momentum for the time being. While the commodity benchmarks have retreated from their multi-year highs on recession fears, they are strong enough for the Zacks Oil and Gas - Exploration and Production - United States industry to notch substantial gains during the remainder of this year. In this context, investors might want to focus on APA Corporation APA, Antero Resources AR, Comstock Resources CRK, Northern Oil and Gas NOG and Earthstone Energy ESTE for attractive cash flow and shareholder returns.About the IndustryThe Zacks Oil and Gas - US E&P industry consists of companies primarily based in the domestic market, focused on the exploration and production (E&P) of oil and natural gas. These firms find hydrocarbon reservoirs, drill oil and gas wells, and produce and sell these materials to be refined later into products such as gasoline, fuel oil, distillate, etc. The economics of oil and gas supply and demand is the fundamental driver of this industry. In particular, a producer’s cash flow is primarily determined by the realized commodity prices. In fact, all E&P companies' results are vulnerable to historically volatile prices in the energy markets. A change in realizations affects their returns and causes them to alter their production growth rates. The E&P operators are also exposed to exploration risks where drilling results are comparatively uncertain.4 Key Investing Trends to Watch in the Oil and Gas - US E&P IndustryOil, Gas Prices Stay Up: Even as fears revolving around high inflation and slowing growth somewhat cloud the outlook for oil, the space continues to remain healthy. Apart from a positive fundamental picture, the sector has been enjoying support from geopolitical uncertainty amid Russia’s military operations in Ukraine. With the conflict showing no sign of a quick resolution, the risk of dwindling inventory and the influential oil exporters’ group OPEC agreeing on a production curtailment, the commodity has got enough reasons to stay above the $80-level in the near-to-medium term. The market has also been kind to natural gas in 2022, with the commodity trading considerably higher year to date and hitting $10 for the first time since 2008. The one thing supporting natural gas is a stable demand catalyst in the form of continued strong LNG feedgas deliveries. LNG shipments for export from the United States have been robust for months on the back of environmental reasons and record-high prices of the super-chilled fuel elsewhere. Now, with the Russia-Ukraine conflict, LNG has become even more coveted.Shale Producers’ Guarded Response: Unlike previous occasions, this time, U.S. shale operators have been reluctant to turn the tap on production despite the rise in oil realizations. Most of them were forced to dial back output in response to the COVID-induced decimation in demand and prices. Generally, the shale patch constituents are quick to pick up drilling activities on any steep rise in the price, which may thwart the fuel’s bull run. Yet, this time, the companies seem to be in no hurry to boost output. Finally, learning their lesson, shale operators are focusing primarily on improving cost and increasing free cash flow rather than looking at boosting production. While oil at $90 is profitable for almost all shale entities, the industry, for its part, is sticking to the mantra of capital discipline and sustainable production. According to the weekly data provided by Houston-based Baker Hughes, the last time that WTI crude traded at these levels, some 1,600 oil rigs were operational. Now, it’s just above 600, which is proof of the wariness on the part of the producers to raise output too quickly.Sustainable Cost-Cutting Efforts: The energy companies have changed their approach to spending capital. Over the past few years, producers have worked tirelessly to cut costs to a bare minimum and look for innovative ways to churn out more oil and gas. And they managed to do just that by improving drilling techniques and extracting favorable terms from the beleaguered service providers. Moreover, driven by operational efficiencies, most E&P operators have been able to reduce unit costs, while the coronavirus-induced collapse in crude forced them to adopt a more disciplined approach to spending capital. These actions might restrict short-term production but are expected to preserve cash flow, support balance sheet strength, and help the companies to eventually emerge stronger. In particular, despite continued inflation and supply-chain challenges, cash from operations is on a sustainable path as revenues improve and companies slash capital expenditures from the pre-pandemic levels amid sharply higher commodity prices.Notable Shareholder Returns: The sharp increase in crude prices has allowed the upstream operators to deliver a solid financial performance. Cash from operations looks sustainable as revenues improve and companies cut capital expenditures from the pre-pandemic levels amid sharply higher commodity realizations. To put it simply, the environment of strong prices has helped the E&P firms to generate significant “excess cash,” which they intend to use to boost investor returns. In fact, energy companies are increasingly allocating their rising cash pile by way of dividends and buybacks to pacify the long-suffering shareholders.Zacks Industry Rank Indicates Positive OutlookThe Zacks Oil and Gas - US E&P industry is a 40-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #37, which places it in the top 15% of more than 250 Zacks industries.The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates fairly strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are highly optimistic about this group’s earnings growth potential. While the industry’s earnings estimates for 2022 have surged 62.4% in the past year, the same for 2023 have risen 86.5% over the same timeframe.Considering the encouraging dynamics of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and the current valuation first.Industry Outperforms Sector & S&P 500The Zacks Oil and Gas - US E&P industry has fared better than the broader Zacks Oil - Energy Sector as well as the Zacks S&P 500 composite over the past year.The industry has gone up 32.2% over this period compared with the broader sector’s increase of 16.1%. Meanwhile, the S&P 500 has lost 21.2%.One-Year Price Performance Industry's Current ValuationSince oil and gas companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of noncash expenses.On the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA), the industry is currently trading at 5.03X, significantly lower than the S&P 500’s 10.95X. It is, however, well above the sector’s trailing-12-month EV/EBITDA of 3.40X.Over the past five years, the industry has traded as high as 16.47X, as low as 2.90X, with a median of 6.62X.Trailing 12-Month Enterprise Value-to EBITDA (EV/EBITDA) Ratio (Past Five Years) 5 Top Stocks to Buy NowComstock Resources: Comstock is a leading operator in the Haynesville shale — a premier natural gas basin — with 323,000 net acres. About 98% of the company’s total output is natural gas. A low-cost provider, the company’s leadership position in Haynesville provides it access to the Gulf Coast and an attractive pricing advantage. Comstock’s 1,900+ high-return net drilling locations support its development program, while its conservative operating plan drives free cash flow.    The 2022 Zacks Consensus Estimate for Zacks Rank #1 (Strong Buy) CRK indicates 231.9% earnings per share growth over 2021. Comstock’s shares have gained 85.7% in a year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Price and Consensus: CRK Earthstone Energy: An oil producer targeting Midland Basin of west Texas and the Eagle Ford trend of south Texas., ESTE focuses on growth through a combination of acquisitions and active drilling. The company’s impressive acreage position in the top basins provides it with some 13 years of high-quality inventory life. With a reinvestment rate of just 50%, Earthstone is able to create robust free cash generation.Over 60 days, ESTE has seen the Zacks Consensus Estimate for 2022 increase 13.9%. The Zacks Rank #2 (Buy) ESTE’s shares have gained 33.6% in a year.Price and Consensus: ESTE Northern Oil and Gas: Northern Oil and Gas’ core operations are focused on three leading basins of the United States — the Williston, Permian and the Appalachian. The upstream operator employs a unique nonoperating business model, which helps it to keep costs down and increase free cash flow. Prioritizing returns to investors, NOG pays a 25 cents per share quarterly base dividend and is looking to hike it by another 20%.Carrying a Zacks Rank of 2, the 2022 Zacks Consensus Estimate for Northern Oil and Gas indicates 105.2% earnings per share growth over 2021. NOG’s shares have gained 34.4% in a year.Price and Consensus: NOG APA Corporation: APA’s large geographically diversified reserve base and high-quality drilling inventory should guarantee multi-year production growth. The company’s increased focus on the Permian basin, known for its low cost and high internal rates of return, is another key driver. APA’ slew of discoveries in offshore Suriname, through its joint venture with TotalEnergies, is another positive catalyst for the company. Over time, Suriname is expected to become one of APA’s major assets with significant cash flow potential.The 2022 Zacks Consensus Estimate for APA indicates 134.6% earnings per share growth over 2021. The company currently carries a Zacks Rank #2. Meanwhile, APA has seen its shares gain 49.3% in a year.Price and Consensus: APA Antero Resources: Antero Resources has positioned itself among the fast-growing natural gas producers in the United States. The company's strategic acreage position in the low-risk and long reserve-life properties of the Appalachian Basin is a major positive. Cashing in on high commodity prices, AR expects to generate more than $2.5 billion of free cash flow in 2022.The 2022 Zacks Consensus Estimate for Antero Resources indicates 364.6% earnings per share growth over 2021. Antero Resources currently carries a Zacks Rank #2. Meanwhile, the hydrocarbon producer has seen its shares increase 67.2% in a year.Price and Consensus: AR  Just Released: Zacks Unveils the Top 5 EV Stocks for 2022 For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.>>Send me my free report revealing the top 5 EV stocksWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report APA Corporation (APA): Free Stock Analysis Report Comstock Resources, Inc. (CRK): Free Stock Analysis Report Northern Oil and Gas, Inc. (NOG): Free Stock Analysis Report Antero Resources Corporation (AR): Free Stock Analysis Report Earthstone Energy, Inc. (ESTE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksOct 18th, 2022

Here"s Why Equinor (EQNR) is an Attractive Investment Bet

Equinor (EQNR) is strongly focused on returning capital to stockholders. Equinor ASA EQNR has witnessed upward earnings estimate revisions for 2022 and 2023 in the past seven days. So far this year, the Zacks Rank #2 (Buy) stock has gained 25.4%, outpacing the industry’s 12.8% growth.What’s Favoring the Stock?Oil prices are still highly favorable for exploration and production activities, despite uncertainties prevailing in the energy market on fears of recession. Thus, business prospects for Equinor’s upstream operations look good. In the second quarter, EQNR made three commercial discoveries, and is expecting oil and gas production growth of roughly 2% in 2022.Equinor is strongly focused on returning capital to stockholders. For 2022, EQNR has increased its share repurchase program from up to $5 billion to up to $6 billion.EQNR is also leading energy transitions. Equinor is planning to become a net-zero emissions player by 2050. The integrated energy firm is planning to reduce net carbon intensity by 20% and 40% by 2030 and 2035, respectively.Other Stocks to ConsiderA few other top-ranked stocks in the energy space are Chesapeake Energy Corporation CHK, Enterprise Products Partners LP EPD and Exxon Mobil Corporation XOM. While Chesapeake Energy sports a Zacks Rank #1 (Strong Buy), Enterprise Products and ExxonMobil carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.Chesapeake Energy is a premium natural gas operator and is well-positioned to gain from the significant improvement in gas price in the past year. In the prolific gas-rich Marcellus shale play, CHK’s operation spreads across roughly 650,000 net acres, where an average of four to five rigs will be operating this year. Chesapeake Energy also has a strong presence in Haynesville and Eagle Ford shale play, making the production outlook bright. Overall, being a leading upstream energy player, CHK has more than 15 years of inventory, signifying more than 2,200 gas locations.Enterprise Products generates stable fee-based revenues from its extensive pipeline network across more than 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products.The midstream infrastructure provider also has storage assets that can hold more than 260 million barrels of NGL, petrochemical, refined products and crude oil. These assets can also store 14 billion cubic feet of natural gas. Moreover, Enterprise Products has $5.5 billion of major capital projects under construction that are likely to provide incremental fee-based revenues.The positive trajectory in oil price is a boon for ExxonMobil’s upstream operations. This is because ExxonMobil has a pipeline of key projects in the Permian – the most prolific basin in the United States – and offshore Guyana. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Chesapeake Energy Corporation (CHK): Free Stock Analysis Report Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 28th, 2022

EQT Corporation (EQT) Prices $1 Billion of Senior Notes

EQT Corporation (EQT) says that the offering of the senior notes will probably close on Oct 4, 2022. EQT Corporation EQT recently announced the pricing of an underwritten public offering of $1 billion in aggregate principal amount of senior notes.The aggregate principal amount comprises $500 million in aggregate principal amount of senior notes that are due in 2025, carrying an interest rate of 5.678%. The remaining $500 million in aggregate principal amount of senior notes carry an interest rate of 5.700% and is expected mature in 2028. The offering will probably close on Oct 4, 2022.EQT will likely utilize the offering’s net proceeds for financing the cash portion associated with acquiring all of the issued and outstanding membership interests of THQ Appalachia I Midco, LLC and THQ-XcL Holdings I Midco, LLC. Along with the net proceeds, EQT will also allocate cash on hand, borrowings under its revolving credit facility and/or borrowings under a new term loan facility for funding the cash portion.Currently, EQT carries a Zacks Rank #2 (Buy). Other prospective players in the same space include Chesapeake Energy Corporation CHK, Enterprise Products Partners LP EPD and Exxon Mobil Corporation XOM. While Chesapeake Energy sports a Zacks Rank #1 (Strong Buy), Enterprise Products and ExxonMobil carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.Chesapeake Energy is a premium natural gas operator and is well-positioned to gain from the significant improvement in gas price in the past year. In the prolific gas-rich Marcellus shale play, CHK’s operation spreads across roughly 650,000 net acres, where an average of four to five rigs will be operating this year. Chesapeake Energy also has a strong presence in Haynesville and Eagle Ford shale play, making the production outlook bright. Being a leading upstream energy player, CHK has more than 15 years of inventory, signifying more than 2,200 gas locations.Enterprise Products generates stable fee-based revenues from its extensive pipeline network across more than 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products.The midstream infrastructure provider also has storage assets that can hold more than 260 million barrels of NGL, petrochemical, refined products and crude oil. These assets can also store 14 billion cubic feet of natural gas. Moreover, Enterprise Products has $5.5 billion of major capital projects under construction that are likely to provide incremental fee-based revenues.The positive trajectory in oil price is a boon for ExxonMobil’s upstream operations. This is because ExxonMobil has a pipeline of key projects in the Permian – the most prolific basin in the United States – and offshore Guyana. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Chesapeake Energy Corporation (CHK): Free Stock Analysis Report Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report EQT Corporation (EQT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 26th, 2022

4 Gas Distribution Stocks to Watch in a Promising Industry

The near-term prospects of the Zacks Gas Distribution industry look promising. The ongoing improvement in production and demand for natural gas will drive the performance of SRE, ATO, NFG and NJR. The production of natural gas in the United States is likely to increase year over year in 2022 per the latest report by the U.S. Energy Information Administration (“EIA”) and continue driving stocks in the Zacks Utility Gas Distribution industry. The distribution companies offer services to transport natural gas from the region of production to millions of consumers across the United States.Sempra Energy SRE, with its widespread natural gas infrastructure and systematic investments in infrastructure development projects, is poised to benefit as natural gas production volumes are expected to increase in the 2022-2023 time period. Steady investments and expanding infrastructure in key production regions should drive the performance of Atmos Energy Corporation ATO, National Fuel Gas Company NFG and NewJersey Resources Corporation NJR.About the IndustryThe shale revolution has substantially increased natural gas production. Its clean-burning nature is steadily boosting demand for natural gas in the electric power, industrial, commercial and residential markets. Natural Gas distribution pipelines play a vital role in delivering natural gas from intrastate and interstate transmission pipelines to consumers through small-diameter pipelines. The natural gas network in the United States has nearly 3 million miles of pipeline that ensures a steady supply to millions of customers. The concerns for the distribution industry are aging infrastructure and increasing investment costs required to upgrade and maintain the vast network of pipelines due to the hike in interest rates. In addition, competition from other clean sources of energy can lower the demand for natural gas, consequently pushing down demand for pipelines.Factors Shaping the Future of the Gas Distribution IndustryProduction and Export Volumes of Gas to Increase: The short-term energy outlook released by the EIA indicates that domestic dry natural gas production will grow 3.8% year over year to 97.09 billion cubic feet per day (Bcf/d) in 2022 and 3.4% year over year to 100.36 Bcf/d in 2023. EIA also expects U.S. natural gas consumption to increase 4.33% in 2022 to 86.56 Bcf/d due to higher consumption from all customer groups, while 2023 consumption is expected to drop by 2.2% to 84.63 Bcf/d due to the expectation of milder winter temperature and lower consumption from the residential and commercial customer group. EIA expects U.S. liquefied natural gas (LNG) export volumes to increase 12.8% year over year to 11.01 Bcf/d in 2022. EIA expects LNG export volumes to increase 12.1% to 12.34 Bcf/d in 2023. The higher production and export volumes will definitely increase the usage and demand for natural gas pipelines in the United States.Aging Distribution Infrastructure: The existing U.S. natural gas distribution pipelines are aging. Leakage or breakage in these old cast iron and bare steel pipelines may result in disruption of services. At present, natural gas distribution utilities provide services to over 75 million residential and 5 million commercial customers in the United States. Per a report from Business Roundtable, replacing the old pipelines will cost around $270 billion. To lower the possibility of interruption in services, the Department of Energy announced $33 million funding for 10 projects involved in natural gas pipeline retrofitting to rehabilitate existing old cast iron and bare steel pipes.  The Rapid Encapsulation of Pipelines Avoiding Intensive Replacement or the REPAIR program will ensure the minimum extension of the service life of distribution pipelines by 50 years and lower the replacement cost of old pipelines by nearly 10 to 20 times per mile. At present, pipe excavation and replacement costs can go up to $10 million per mile. The rising interest rates will increase the overall project financing cost for the utilities compared with what these companies have enjoyed in the past two years.Scope for Fresh Investments: The clean-burning nature and wide availability across the United States are driving the demand for natural gas. The distribution network should continue to play a major role in transporting natural gas to nearly 75 million customers in all parts of the United States. The demand from the rising natural gas customer volume and usage of natural gas to produce electricity will play a pivotal role in the utilities’ gradual transition toward clean energy. With LNG export volumes rising each year and three new LNG export terminals are being developed in the United States, which will increase demand for natural gas pipeline services to transfer the gas from production areas to these terminals. Per EIA, once completed, the three new LNG projects will increase the combined export capacity by 5.7 Bcf/d by 2025. As production and demand for natural gas are increasing, more pipelines will be required to safely transfer the natural gas to end-users,  which will create new growth opportunities for natural gas pipeline operators.Zacks Industry Rank Indicates Bright ProspectsThe group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects.The Zacks Utility Gas Distribution industry — a 15-stock group within the broader Zacks Utilities sector — currently carries a Zacks Industry Rank #159, which places it in the top 22% of the 251 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Since March-end, earnings estimates have gone up by 0.8% to $3.93 per share.Before we present a few Gas Distribution stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture. Industry Beats S&P 500 and SectorThe Gas Distribution industry has outperformed the Zacks S&P 500 composite and its sector over the past year. The stocks in this industry have collectively returned 20.5% in the same time frame, while the Utility sector has gained 5.5%. The Zacks S&P 500 composite has declined 16.1% in the said period.One Year Price Performance Gas Distribution Industry's Current ValuationSince utility companies have a lot of debt on their balance sheets, the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio is commonly used to value them.The industry is currently trading at a trailing 12-month EV/EBITDA of 10.19X compared with the S&P 500’s 11.54X and the sector’s 19.06X.  Over the past five years, the industry has traded as high as 13.7X, a low of 9.58X, and at the median of 10.66X.Utility Gas Industry vs  S&P  500 ( Past 5 yrs)Utility Gas Industry vs  Sector( Past 5 yrs) 4 Gas Distribution Stocks to Keep a Close Watch OnBelow are four stocks that have been witnessing positive earnings estimate revisions. Only one out the four natural gas distribution stocks mentioned below presently carries a Zacks Rank #3 (Hold). The rest carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Sempra Energy: This San Diego, CA-based energy services holding company is involved in the sale, distribution, storage and transportation of electricity and natural gas. Sempra Energy has plans to invest $36 billion in the 2022-2026 time frame to strengthen its operation and transmission and distribution infrastructure.  Worldwide demand growth for LNG continues to rise, Sempra Energy is well-positioned with strategically-located opportunities in North America. The stock currently carries a Zacks Rank #3.The Zacks Consensus Estimate for SRE’s 2022 earnings has moved up 1.05% to $8.65 per share over the past 60 days. The current dividend yield of SRE is 2.75%. In the past year, the stock has gained 26.5% compared with the industry’s rally of 20.4%.  Its long-term earnings growth (three to five years) rate is pegged at 5.8%.Price and Consensus: SREAtmos Energy: This Dallas, TX-based company is engaged in the regulated natural gas distribution and storage business. Atmos Energy is planning to invest in the range of $13-$14 billion from fiscal 2022 through 2026, out of which more than 80% will be allocated to enhance the safety of the existing operations. The stock currently carries a Zacks Rank #2.The Zacks Consensus Estimate for ATO’s fiscal 2022 earnings has moved 0.4% higher to $5.57 per share over the past 60 days. The current dividend yield of ATO is 2.41%. In the past year, the stock has gained 28.5%. The long-term earnings growth rate is pegged at 7.5%.Price and Consensus: ATONational Fuel Gas Company : This Williamsville, NY-based, integrated energy company has natural gas assets located in the prolific Appalachian basin and oil-producing assets in California. National Fuel Gas Company’s presence across the natural gas value chain through Upstream, Midstream and Downstream activities gives it a competitive advantage and allows it to lower operating costs.  NFG has more than $500 million worth of investments planned over the next five years for the modernization of pipeline transportation and distribution systems. The stock currently carries a Zacks Rank #2.The Zacks Consensus Estimate for NFG’s fiscal 2022 earnings has moved 3.5% higher to $5.99 per share over the past 60 days. The current dividend yield of NFG is 2.79%. In the past year, the stock has gained 30.3%. The long-term earnings growth rate is pegged at 13.6%.Price and Consensus: NFGNew Jersey Resources: This Wall, NJ-based company provides regulated gas distribution, and retail and wholesale energy services to its customers. New Jersey Resources has plans to invest $1-$1.3 billion in the fiscal 2022-2023 time period to strengthen its infrastructure. NJR’s strategic investments to expand natural gas transmission and distribution pipelines will allow it cater to increasing demand from its expanding customer base. The stock currently carries a Zacks Rank #2.The Zacks Consensus Estimate for NJR’s fiscal 2022 earnings has moved 4.2% higher to $2.46 per share over the past 60 days. The current dividend yield of NJR is 3.3%. In the past year, the stock has gained 27.2%. Its long-term earnings growth rate is pegged at 6%.Price and Consensus: NJR  Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sempra Energy (SRE): Free Stock Analysis Report Atmos Energy Corporation (ATO): Free Stock Analysis Report National Fuel Gas Company (NFG): Free Stock Analysis Report NewJersey Resources Corporation (NJR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 23rd, 2022

3 Top Large-Cap Energy Stocks to Buy on the Dip

Amid heightened volatility, it would be wise for investors to bet on large-cap energy stocks like ExxonMobil (XOM), Chevron (CVX) and Schlumberger (SLB). Broad inflationary pressures are increasing. To rein in inflation, which is near a 40-year high mark, the Federal Reserve announced the approval of its third successive interest-rate rise of 0.75 percentage points. There are signals from the Fed that in the upcoming meetings, additional significant rate hikes are likely, thereby increasing fears of recession and spurring market volatility. The energy sector is known for its volatile business scenario, and a slowdown in economic activities could significantly dent energy fuel demand.Companies belonging to the sector have been witnessing a choppy business environment since the onset of the coronavirus pandemic. The initial pandemic period, when there were no vaccines, saw an environment of heightened uncertainties. The commodity’s price plunged to a negative $36.98 per barrel on Apr 20, 2020. However, with the rapid developments of vaccines by the scientists, which in turn led to the gradual opening of the economies, the pricing scenario of West Texas Intermediate (WTI) crude improved drastically over time to reach $123.64 per barrel on Mar 8, 2022. Oil price data are per the U.S. Energy Information Administration.Considering the backdrop of heightened uncertainties engulfing the energy market, it would be wise for investors to bet on large-cap stocks like Exxon Mobil Corporation XOM, Chevron Corporation CVX and Schlumberger Limited SLB.Large-Cap Energy Players to the RescueOperations of large-cap energy companies are more stable than mid or small-cap players. This is because they have large, diversified and well-established operations, and client goodwill. Hence, large-cap companies have strong capabilities to sail through business uncertainties, banking on strong financials. Also, big energy companies have a steady dividend payment history, making those stocks relatively less volatile in uncertain times. Along with protecting a portfolio in uncertain times, these stocks have long-term steady growth prospects.Hence, it’s an ideal time to buy large-cap stocks from the energy space, especially when prices are down due to the overall volatile business environment fueled by recession fears. We have employed our Stock Screener to zero in on three such stocks with a market capitalization value of significantly higher than $10 billion. All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.3 Stocks to BuyExxonMobil: ExxonMobil has a pipeline of key projects in the Permian – the most prolific basin in the United States – and offshore Guyana. In the Permian, ExxonMobil has an inventory of more than 8,000 well locations, with the integrated energy major estimating a net of 10 billion oil-equivalent barrels of recoverable resource. In offshore Guyana, it made several oil and gas discoveries. Like upstream businesses, ExxonMobil also benefits from its strong refinery utilization.In the past month, XOM has lost 8.1%, creating a buying opportunity since the stock is likely to see earnings growth of 23.7% in the next five years, surpassing the industry’s 11.9%.Chevron: CVX is banking on its low-cost assets, comprising the prolific Permian. Chevron’s conservative capital spending discipline has cleared the path for solid cashflow generation. Among the companies in the energy sector, Chevron’s balance sheet is among the strongest, giving the company an edge to counter any business downturn.In the past month, CVX has lost 5.1%, creating a buying opportunity since the stock is likely to see earnings growth of 14% in the next five years, surpassing the industry’s 11.9%.Schlumberger: SLB believes strong upstream E&P spending will continue because of an urgency to increase oil and gas production capacity. This is going to aid Schlumberger’s oilfield services.In the past month, SLB has lost 4.2%, creating a buying opportunity since the stock is likely to see earnings growth of 38.8% in the next five years, surpassing the industry’s 35.3%. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Schlumberger Limited (SLB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 23rd, 2022

Here"s Why Range (RRC) is an Attractive Investment Bet Now

Favorable natural gas price is aiding Range Resources' (RRC) upstream operations. Range Resources Corporation RRC has witnessed upward earnings estimate revisions for 2022 and 2023 in the past seven days. So far this year, the Zacks Rank #2 (Buy) stock has gained 53.8%, outpacing the industry’s 36.4% growth.What’s Favoring the Stock?The price of natural gas has improved drastically in the past year. Being a leading producer of natural gas and natural gas liquid (NGL) in the United States, the massive improvement in the commodity price is a boon for Range Resources’ upstream operations.In Appalachia, RRC has decades of low-risk drilling inventory, brightening its production outlook. The company has lower well costs per lateral foot than many other upstream players.Range Resources has a strong focus on strengthening its balance sheet. Range Resources expects 2022 to be the fifth straight year of absolute debt reduction. On a positive note, the company has the lowest emission intensity among the upstream companies in the United States.Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few better-ranked stocks in the energy space are Chesapeake Energy Corporation CHK, Enterprise Products Partners LP EPD and Exxon Mobil Corporation XOM. While Chesapeake Energy sports a Zacks Rank #1 (Strong Buy), Enterprise Products and ExxonMobil carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Chesapeake Energy is a premium natural gas operator and is well positioned to gain from the significant improvement in gas price in the past year. In the prolific gas-rich Marcellus shale play, CHK’s operation spreads across roughly 650,000 net acres, where an average of four to five rigs will be operating this year. Chesapeake Energy also has a strong presence in Haynesville and Eagle Ford shale play, making the production outlook bright. Overall, being a leading upstream energy player, CHK has more than 15 years of inventory, signifying more than 2,200 gas locations.Enterprise Products generates stable fee-based revenues from its extensive pipeline network across more than 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products.The midstream infrastructure provider also has storage assets that can hold more than 260 million barrels of NGL, petrochemical, refined products and crude oil. These assets can also store 14 billion cubic feet of natural gas. Moreover, Enterprise Products has $5.5 billion of major capital projects under construction that are likely to provide incremental fee-based revenues.The positive trajectory in oil price is a boon for ExxonMobil’s upstream operations. This is because ExxonMobil has a pipeline of key projects in the Permian – the most prolific basin in the United States – and offshore Guyana. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Chesapeake Energy Corporation (CHK): Free Stock Analysis Report Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report Range Resources Corporation (RRC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 23rd, 2022

Best Momentum Stocks to Buy for September 23rd

NFG, TMP and OZK made it to the Zacks Rank #1 (Strong Buy) momentum stocks list on September 23, 2022. Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, September 23rd:National Fuel Gas Company NFG: This New York-based integrated energy company which has natural gas assets located in the prolific Appalachian basin and oil-producing assets in California, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.3% over the last 60 days.National Fuel Gas Company Price and Consensus National Fuel Gas Company price-consensus-chart | National Fuel Gas Company QuoteNational Fuel Gas Company’s shares gained 2.3% over the last three months compared with the S&P 500’s decline of 3.6%. The company possesses a Momentum Score of A.National Fuel Gas Company Price National Fuel Gas Company price | National Fuel Gas Company QuoteTompkins Financial TMP: This financial holding company which provides commercial and consumer banking, leasing, trust and investment management, financial planning and wealth management, and insurance services, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.0% over the last 60 days.Tompkins Financial Corporation Price and Consensus Tompkins Financial Corporation price-consensus-chart | Tompkins Financial Corporation QuoteTompkins Financial’s shares gained 4.3% over the last three months compared with the S&P 500’s decline of 3.6%. The company possesses a Momentum Score of B.Tompkins Financial Corporation Price Tompkins Financial Corporation price | Tompkins Financial Corporation QuoteBank OZK OZK: This bank holding company which offers a wide range of retail and commercial banking services to businesses, individuals, and non-profit and governmental entities, has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.9% over the last 60 days.Bank OZK Price and Consensus Bank OZK price-consensus-chart | Bank OZK QuoteBank OZK’s shares gained 6.9% over the last three months compared with the S&P 500’s decline of 3.6%. The company possesses a Momentum Score of B.Bank OZK Price Bank OZK price | Bank OZK Quote See the full list of top ranked stocks here Learn more about the Momentum score and how it is calculated here. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report National Fuel Gas Company (NFG): Free Stock Analysis Report Tompkins Financial Corporation (TMP): Free Stock Analysis Report Bank OZK (OZK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 23rd, 2022

Planned Spending, Acquisitions Aid National Fuel Gas (NFG)

Amid strong competition from other clean energy suppliers, National Fuel Gas (NFG) benefits from its systematic spending and strong holdings in the prolific Appalachian basin. National Fuel Gas Company NFG is an integrated energy company, with natural gas assets in the prolific Appalachian basin and oil-producing assets in California. Consistent capital investment, acquiring Shell’s assets, and expanding upstream and midstream operations are tailwinds.We recently updated the report on the Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.TailwindsNational Fuel Gas’ systematic capital spending to strengthen its natural gas and oil operation is aiding the total production of the company. It has been consistently increasing its total production since fiscal 2015. NFG plans to invest $725-$870 million in fiscal 2022. Net E&P production was 327.4 billion cubic feet equivalent (Bcfe) for fiscal 2021, while that for fiscal 2022 is expected to be 350-355 Bcfe and the fiscal 2023 production is expected to be 370-390 Bcfe.The acquisition of Shell’s assets added 684 billion cubic feet of natural gas reserves at a F&D cost of less than 40 cents per thousand cubic feet equivalent, lower than what the company currently incurs. National Fuel Gas’s increased scale and contiguous operations are expected to further reduce the per-cash-unit costs, boosting the company's margins.Expanding operations of National Fuel Gas enables it to generate a stable cash flow. The company’s total liquidity as of Jun 30, 2022, was $1,283 million, sufficient to address near-term debt obligations.HeadwindsThere is strong competition in the natural gas industry among providers of natural gas, and other energy sources such as fuel oil and electricity. Therefore, a drop in the prices of alternate fuel and electricity could affect natural gas demand and hurt the company’s prospects. Fluctuation in the weather can adversely impact the demand of natural gas.Price PerformanceIn the past 12 months, shares of the company have risen 39% compared with the industry's 21.3% rally. Image Source: Zacks Investment Research Other PicksSome better-ranked stocks in the same sector are NextEra Energy NEE, The Southern Company SO and Alliant Energy LNT, each currently carrying a Zacks Rank #2 (Buy).NextEra Energy, Southern Company and Alliant Energy delivered earnings surprises of 5.5%, 9.4% and 5.8%, respectively, in the trailing four quarters on average.The Zacks Consensus Estimate for 2022 earnings of NextEra Energy, Southern Company and Alliant Energy moved up 1.8%, 2% and 1.8%, respectively, in the last 60 days. This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.>>Yes, I Want to Help Protect My Portfolio During the RecessionWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Southern Company The (SO): Free Stock Analysis Report Alliant Energy Corporation (LNT): Free Stock Analysis Report National Fuel Gas Company (NFG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 13th, 2022

Eni (E) to Buy Algeria Fields to Address Gas Demand in Europe

Eni (E) expects its Algeria production to reach 120,000 Boe/d in 2023. The company currently produces 100,000 Boe/d. Eni SPA E signed an agreement to acquire BP plc’s BP Algeria business, including two major natural gas fields.The acquisition involves BP’s stakes in the In Salah and In Amenas gas fields in southern Algeria. BP holds a 45.89% stake in In Amenas and a 33.15% stake in In Salah. Both fields are operated by BP and partners.In Salah covers seven gas fields, around 1,200 kilometers south of Algiers. Production from the field began in 2004, with the second phase in 2016. In Amenas produces gas and natural gas liquids from the Illizi basin in south-eastern Algeria, with its first production in 2006.In 2021, the fields produced 11 billion cubic meters of gas and 12 million barrels of condensates and LPG. Eni expects production to increase as a result of the agreement. The company currently produces 100,000 barrels of oil equivalent per day (Boe/d). It expects its Algeria production to reach 120,000 Boe/d in 2023.Eni has been planning to acquire stakes in the In Amenas and In Salah gas fields for several months. The agreement aligns with the company’s strategy to address the challenges of delivering secure and sustainable energy to customers. The acquisition will address Europe’s gas requirements and strengthen the company’s presence in Algeria.BP has been contributing to Algeria’s growth for more than 30 years. The divestiture is part of BP’s plan to refocus its businesses by reducing debt, while addressing declining margins and climate pressures. Notably, the transaction is subject to the approvals of the competent authorities.In March, Eni and BP created a 50/50 joint venture combining their Angola businesses, Azule Energy. The consolidation was part of the companies’ restructuring of oil and gas businesses amid their transition to a more sustainable, low-carbon economy. This is expected to help the companies reduce debt.By combining two world-class businesses, Azule Energy will leverage synergies and premium assets, enhancing activities in Angola. It will have one of the largest portfolios of production, development and exploration opportunities in Sub-Saharan Africa. The joint venture will continue BP and Eni’s social investment commitments in Angola.Company ProfileHeadquartered in Rome, Italy, Eni is one of the leading integrated energy players in the world.Zacks Rank & Other Stocks to ConsiderEni currently carries a Zack Rank #2 (Buy).Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Marathon Petroleum Corporation MPC is a leading independent refiner, transporter and marketer of petroleum products. The company repurchased shares worth $4.1 billion in the May-July 2022 period and completed more than 80% of its target to buy back common stock worth $15 billion.Marathon Petroleum has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Growth, and B for Momentum. MPC is expected to see earnings growth of 755.5% in 2022.TotalEnergies SE TTE is among the top five publicly traded global integrated oil and gas companies. TTE is managing long-term debt quite efficiently and trying to keep the same at manageable levels. As of Jun 30, 2022, its cash and cash equivalents were $32,848 million. This was enough to address the current borrowings of $14,589 million.TotalEnergies has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Growth, and B for Momentum. TTE is expected to see earnings growth of 107% in 2022. Special Report: The Top 5 IPOs for Your Portfolio Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.>>See Zacks’ Hottest IPOs NowWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report Eni SpA (E): Free Stock Analysis Report Marathon Petroleum Corporation (MPC): Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 8th, 2022

Here"s Why EQT Stock is an Attractive Investment Bet Now

The positive trajectory in natural gas price is a boon for EQT's upstream operations. EQT Corporation EQT has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. So far this year, the stock, carrying a Zacks Rank #2 (Buy), has gained 119.2%, outpacing the 45.2% growth of the composite stocks belonging to the industry.Image Source: Zacks Investment ResearchWhat's Favoring the Stock?The price of natural gas has improved drastically in the past year, aiding the upstream operations of EQT. This is because it has a strong footprint in the cores of the Marcellus Shale play in the Appalachian Basin. Production outlook of the Appalachian natural gas producer seems bright as it has a multi-decade inventory of gas assets.Of the total GHG emissions reductions in the United States since 2005, the contribution of EQT is roughly 5%. By 2025, the upstream player aims to achieve net zero Scope 1 and Scope 2 emissions.Apart from accelerating the reduction of its debt load, EQT is focused on generating strong free cashflows and recently increased its base dividend. From 2022 through 2027, EQT aims to generate roughly $22 billion of free cashflow.Other Stocks to ConsiderOther prospective players in the energy space include BP plc BP, Exxon Mobil Corporation XOM and Eni SpA E. All the stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.The positive oil price trajectory is a boon for BP’s upstream operations. The favorable oil price scenario and increasing daily oil equivalent production volumes are aiding the energy giant’s bottom line. BP stated that the target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from key new projects has been delivered.The positive trajectory in oil price is a boon for ExxonMobil’s upstream operations. Also, it has a pipeline of key projects in the Permian – the most prolific basin in the United States – and offshore Guyana. Like upstream businesses, ExxonMobil also benefits from its strong refinery utilization.Eni is expecting the discovery of 700 million barrels of oil equivalent (BoE) of new exploration resources this year, suggesting an improvement from the prior guidance of 600 million BoE. For 2022, Eni is likely to witness earnings growth of 165.9%. Zacks' Top Picks to Cash in on Electric Vehicles Big money has already been made in the Electric Vehicle (EV) industry. But, the EV revolution has not hit full throttle yet. There is a lot of money to be made as the next push for future technologies ramps up. Zacks’ Special Report reveals 5 picks investorsSee 5 EV Stocks With Extreme Upside Potential >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Eni SpA (E): Free Stock Analysis Report EQT Corporation (EQT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 1st, 2022

Can Targa Continue Rallying To Meet Its Price Target?

Targa Resources (NYSE:TRGP), which specializes in midstream energy infrastructure, has been etching the right side of a consolidation since late July.  Targa has been correcting in a pretty orderly fashion, especially if you compare it to the many stocks that are down 50% or more this year. The stock is up 36.41% year-to-date. Shares closed […] Targa Resources (NYSE:TRGP), which specializes in midstream energy infrastructure, has been etching the right side of a consolidation since late July.  Targa has been correcting in a pretty orderly fashion, especially if you compare it to the many stocks that are down 50% or more this year. The stock is up 36.41% year-to-date. Shares closed Monday at $71.11, a gain of $0.90 or 1.28%. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2022 hedge fund letters, conferences and more   Monday’s uptick follows a one-month gain of 7.87%.  Since its second-quarter report on August 4, the stock is up 11%.  Earnings came in at $1.63 per share, up a whopping 987% over the year-earlier quarter. Revenue was $6.055 billion, an increase of 77%.  During the quarter, Targa repurchased 1,121,925 shares of its common stock at a weighted average price of $66.07 for a total net cost of $74.1 million. In addition, between July 1 and July 29, the company repurchased 512,336 shares of its common stock at a weighted average price of $58.57 for a total net cost of $30.0 million.  There was $214.7 million remaining under its $500 million common share repurchase program as of July 29. Share buybacks slash the number of shares outstanding, available to investors. That means earnings are distributed to a smaller number of shareholders, meaning an increase in earnings per share.  Targa also updated its earnings estimates for the full year. The company now expects an adjusted EBITDA range of between $2.85 billion and $2.95 billion. That assumes natural gas liquid composite barrel prices averaging $1.05 per gallon, crude oil prices averaging $100 per barrel, and Waha natural gas prices averaging $6.00 per million British Thermal Units for the second half of this year. (Waha is a supply hub in West Texas, in the Permian basin.)  There’s a lot going on at Targa, and it currently has the momentum to surpass continue rallying. According to MarketBeat institutional ownership data, more institutional buyers have come into the stock in the past 12 months, than sellers who have exited.  Completed Lucid Acquisition  Growing through acquisition is a tried-and-true path to increasing shareholder value, and Targa has been actively pursuing that strategy.  In late July, Targa announced the completion of its acquisition of Lucid Energy for $3.55 billion. According to the company’s announcement, “Lucid’s assets, which will be integrated into Targa’s existing Permian Basin footprint, include approximately 1,050 miles of natural gas pipelines and approximately 1.4 billion cubic feet per day of cryogenic natural gas processing capacity in service or under construction located primarily in Eddy and Lea counties of New Mexico. Lucid’s Delaware Basin footprint overlays some of the most economic crude oil and natural gas producing acreage in North America. Lucid’s assets are anchored by over 600,000 dedicated acres from a diverse set of high-quality customers and underpinned by long-term, fixed-fee contracts.” In other words, Targa just expanded its footprint in various regions. That bodes well for future growth.  Industry Rivals  Targa’s competitors include Summit Midstream Partners (NYSE:SMLP), ONEOK (NYSE:OKE), and Energy Transfer (NYSE:ET).  Many of the midstream energy companies fall under the mid-cap categorization. That’s a space that has some advantages; companies can be more nimble than a larger firm, but are also growing big enough to garner some attention from Wall Street analysts.  Targa’s market capitalization is $16.21 billion, putting it at the lower end of the large-cap category. Based on 11 analyst ratings, there’s a “moderate buy” designation on the stock, with a price target of $81.91, a 15.19% upside. If reached, that price target would take the stock just above its April 21 high of $81.60.  There’s plenty of potential in this stock, but if investors want to wait until it’s closer to clearing its current consolidation, that would not be a bad decision, particularly as the broad market continues to struggle. Should you invest $1,000 in Targa Resources right now? Before you consider Targa Resources, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Targa Resources wasn't on the list. While Targa Resources currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here Article by Kate Stalter, MarketBeat.....»»

Category: blogSource: valuewalkAug 30th, 2022

Early Investors In Texas Shale Are Now Reaping The Benefits Of Sticking With Their Bet

Early Investors In Texas Shale Are Now Reaping The Benefits Of Sticking With Their Bet By Tsvetana Paraskova of OilPrice.com Some early investors in the Texas shale patch are now reaping the benefits of not giving up on the Permian basin over the past decade and sticking with their bet on oil through thick and thin—two oil price crashes, an increasingly louder global campaign for ditching investments in fossil fuels, and triple-digit oil prices following the Russian invasion of Ukraine.  Despite early hardships and thoughts of ditching the business of acquiring drilling rights across Texas when COVID crippled fuel demand in 2020, Cody Campbell, co-CEO at Double Eagle Energy, for example, has stuck with his guns, the Financial Times reports in a feature article.  The Wild Ride Of Investing In Texas Oil. Over the past year, Campbell has made money by selling leasehold assets to shale giant Pioneer Natural Resources and by raising more than $1.7 billion for more lease acquisitions in the Permian.   Last year, Pioneer Natural Resources bought leasehold interests and related assets of DoublePoint Energy in the Midland Basin for a total consideration of $6.2 billion, including $1.0 billion in cash, issuing 27.2 million shares of Pioneer common stock and assuming $890 million of debt.  Then this year, DoublePoint Energy raised over $1.7 billion in private equity money to expand its royalty and mineral investments across the Permian Basin.   “Together with the financial strength of our partnership, our track record of success, and our world-class operating team, we can confidently and aggressively pursue very large acquisitions while continuing to organically assemble smaller opportunities and undertake an ambitious development program,” Campbell and John Sellers, Co-CEOs of Double Eagle, said, commenting on the deal announced in June.  “It’s been a wild ride, from a bootstrap operation, where we never knew from week to week if we were going to make it, to multibillion-dollar transactions,” Campbell told FT.  Campbell and other like-minded investors in the Texas oil and gas industry plan to grow their business and operations in the coming years, expecting a shortage of supply and continuous demand for oil and gas in the United States and the world.  Much higher commodity prices are set to attract investors back to Texas oilfields, although many people seem to be reluctant to bet on oil and gas again, Campbell told FT’s Justin Jacobs.  Investors Haven’t Given Up On Oil Completely The hesitancy among investors comes from the U.S. Administration’s pivot to clean energy and the global push for replacing fossil fuels with renewable energy sources. However, in recent months investors seem to have realized that oil and gas – especially such produced in democracies – will play an important role in helping global energy security while major consumers in the West look to ditch Russian energy imports.  Wall Street and portfolio investors are backing clean energy opportunities in the energy transition, but they haven’t given up on conventional energy as the world grapples with an unprecedented energy crisis and scrambles for energy security after the Russian invasion of Ukraine.   Energy has been the top-performing sector of the market this year as oil and gas prices surged, Big Oil booked record profits, and investors have come to realize that fossil fuels still make up 80% of global energy consumption and the world needs more of those fuels now to avoid winter rationing of energy.  So, asset managers and private equity firms are backing both horses in the race toward more secure and cleaner energy sources. Banks are also arranging financing for both oil and gas and renewable energy projects. “The answer is not either-or,” Megan Starr, global head of impact at Carlyle Group, told The Wall Street Journal’s Amrith Ramkumar earlier this month.  Year to date, the energy sector has been the top performing sector in the S&P 500 index, according to market data compiled by Yardeni Research.  The energy sector in the S&P 500 had gained 42.4 percent year to date to August 22. In comparison, S&P 500 is down 13.2 percent, and all other sectors except for utilities have also lost ground since January.   Even some ESG-focused funds are not immediately casting aside oil and gas stocks, as years of underinvestment in new supply, the energy crisis, and the Russian invasion of Ukraine have thrown into sharp relief energy security and affordability. Recent analyses have suggested that some ESG funds now include traditional energy stocks in their portfolios—an unimaginable thing just two years ago.  Investors are also looking to shift their focus onto actual outcomes instead of on simplified ESG ratings that are based on policy statements.  For example, BlackRock, the world’s biggest asset manager, said in early May that “many of the climate-related shareholder proposals coming to a vote in 2022 are more prescriptive or constraining on companies and may not promote long-term shareholder value.”  BlackRock believes that investment in both traditional and renewable energy is needed in the short to medium term in light of the unique dynamics in today’s energy markets after the Russian invasion of Ukraine.  “This set of dynamics will — at least in the short- and medium-term — drive a need for companies that invest in both traditional and renewable sources of energy and we believe the companies that do that effectively will produce attractive returns for our clients,” the world’s biggest asset manager noted.   Tyler Durden Wed, 08/24/2022 - 17:40.....»»

Category: blogSource: zerohedgeAug 24th, 2022