Heres a roundup of everything that happened on Stocks to Watch today:
Enid Alvarez for the Wall Street Journal
We looked at Bristol-Meyers Squibb’s (BMY) failed drug test, considered much the failure could cost the pharmaceutical giant, tried to look on the bright side, and explained why it’s a big win for Merck (MRK).
We highlighted Jefferies’ upgrade of U.S. Steel (X), Baird’s downgrade of Regeneron Pharmaceuticals (REGN), and wondered if Chesapeake Energy (CHK) has turned the corner.
We delved into Kraft Heinz’s (KHC) earnings beat, and explained the impact of Leucadia National’s (LUK) investment in National Beef on its earnings.
We explained why Tesla Motors (TSLA) needs to raise money and why it doesn’t matter, why General Electric (GE) might be running out of juice, and how a potential Biogen (BIIB) takeover would be different than most.
Top 10 Energy Stocks For 2017: California Resources Corporation(CRC)
California Resources Corporation operates as an oil and natural gas exploration and production company in the State of California. It produces oil, natural gas, and natural gas liquids. The company holds interests in approximately 2.4 million net acres. As of December 31, 2015, it had net proved reserves of 644 million barrels of oil equivalent. It also gathers, processes, and markets oil and gas products to marketers, California refineries, and other purchasers that have access to transportation and storage facilities. In addition, the company generates and sells electricity to the grid and to others through contractual agreements. California Resources Corporation is headquartered in Los Angeles, California.
- [By Andrew Efimoff]
WTI crude oil plunged 3.11 percent on Friday to $48.99 a barrel. Below are the biggest energy losers for the day:
California Resources Corporation (NYSE: CRC): -19.22% Dynamic Materials (NASDAQ: BOOM): -12.39% Clayton Williams Energy (NYSE: CWEI): -11.45% Dynergy (NYSE: DYN): -11.91% EP Energy Corporation (NYSE: EPE): -11.20% Mexco Energy (NYSE: MXC) -10.90% Whiting Petroleum (NYSE: WLL) -10.79% Southwestern Energy Company (NYSE: SWN) -10.79% SM Energy Company (NYSE: SM) -10.38% Real Goods Solar (NASDAQ: RGSE) -10.34%
Posted-In: Commodities After-Hours Center Markets Movers
Top 10 Energy Stocks For 2017: Cliffs Natural Resources Inc.(CLF)
Cliffs Natural Resources Inc., a mining and natural resources company, produces iron ore pellets, lump and fines iron ore, and metallurgical coal products. The company operates six iron ore mines in Michigan, Minnesota, and eastern Canada; two iron ore mining complexes in Western Australia; five metallurgical coal mines located in West Virginia and Alabama; and one thermal coal mine located in West Virginia. It also owns a 45% economic interest in a coking and thermal coal mine located in Queensland, Australia; and a 30% interest in Amapa, a Brazilian iron ore project in Latin America, as well as chromite properties in Ontario, Canada. The company, formerly known as Cleveland-Cliffs Inc, was founded in 1847 and is headquartered in Cleveland, Ohio.
- [By Lisa Levin]
On Thursday, basic materials shares rose by 3.08 percent. Top gainers in the sector included Cliffs Natural Resources Inc (NYSE: CLF), Companhia Siderurgica Nacional (ADR) (NYSE: SID), and Teck Resources Ltd (USA) (NYSE: TCK).
- [By Lisa Levin]
On Tuesday, basic materials shares climbed by 1.90 percent. Top gainers in the sector included Allegheny Technologies Incorporated (NYSE: ATI) and Cliffs Natural Resources Inc (NYSE: CLF).
Top 10 Supermarket Companies To Watch For 2017: Seadrill Limited(SDRL)
Seadrill Limited, an offshore drilling contractor, provides offshore drilling services to the oil and gas industry worldwide. The company operates through Floaters and Jack-up Rigs segments. The Floaters segment provides drilling, completion, and maintenance services for offshore exploration and production wells. Its drilling contracts relating to semi-submersible rigs and drillships for harsh and benign environments in mid, deep, and ultra-deep waters. The Jack-up Rigs segment offers services, such as drilling, completion, and maintenance of offshore exploration and production wells. This segments drilling contracts relate to jack-up rigs for operations in harsh and benign environment. As of March 20, 2015, the company had a fleet of 899 units, including 118 drillships, 198 semi-submersible rigs, 544 jack-up rigs, and 39 tender rigs. It serves oil and gas exploration and production companies comprising integrated oil compan ies, independent oil and gas producers, and government-owned oil and gas companies. Seadrill Limited was founded in 2005 and is headquartered in Hamilton, Bermuda.
- [By Ben Levisohn]
Analysts can rare Transocean a Sell, but investors are having none of it. Shares of Transocean have risen 2.9% to $11.49 at 2:14 p.m. today, besting Diamond Offshore Drilling’s (DO) 1,5% advance to $25.97, but lagging Seadrill’s (SDRL) 6.5% jump to $3.70, Atwood Oceanics’ (ATW) 5.4% climb to $12.12, and Noble’s (NE) 4.1% gain to $9.15.
Top 10 Energy Stocks For 2017: Bonanza Creek Energy, Inc.(BCEI)
Bonanza Creek Energy Inc., an independent energy company, engages in the acquisition, exploration, development, and production of onshore oil and associated liquids-rich natural gas in the United States. The companys oil and liquids weighted assets are located primarily in the Wattenberg Field in Colorado; and the Dorcheat Macedonia Field in southern Arkansas. It also owns and operates oil-producing assets in the North Park Basin in Colorado; and the McKamie Patton Field in Southern Arkansas. Bonanza Creek Energy Inc. was founded in 2010 and is headquartered in Denver, Colorado.
- [By Lisa Levin]
Shares of Bonanza Creek Energy Inc (NYSE: BCEI) were down 39 percent to $1.39. Bonanza Creek Energy has retained Perella Weinberg Partners to advise the company and assist in analyzing and evaluating financial and transactional alternatives, including restructuring options.
- [By Robert Rapier] For those who are unaware, each month there is a joint web chat for subscribers of The Energy Strategist (TES) and MLP Profits. The chat is conducted by Igor Greenwald, managing editor for TES and chief investment strategist for MLP Profits, and myself. This month’s chat took place on Sept. 10.
We place a priority on answering questions about portfolio holdings and recommendations during the chat, but often we get questions about companies we don’t currently recommend. Or, we sometimes get questions or comments about a company that require an extended answer. In these cases we push those questions to the end, and attempt to answer them if time allows. For this past chat there were several questions remaining at the end, which I will address here today. For each company, a brief background is presented for readers who may not be familiar with the company.
Q: What is your view of BCEI at the present price?
Bonanza Creek Energy (NYSE: BCEI) is a Denver-based oil and gas company with operations in Colorado and southern Arkansas. While the Bakken Formation in North Dakota and the Eagle Ford Shale in Texas get more press, oil and gas plays in the Denver-Julesburg Basin have helped turn Colorado into one of the fastest growing energy producing states in the country and the fastest growing oil producer in the Rocky Mountains. Since 2008 oil production in Colorado has risen by an impressive 63 percent to a 50-year high.
BCEI is well-positioned with acreage in the Wattenberg Gas Field north of Denver. The field is one of the largest natural gas plays in the US. Wattenberg represents 60 percent of BCEI’s proved reserves, with 59 percent of those reserves classified as liquid. Of the company’s remaining reserves, 39 percent are located in the oil-bearing Cotton Valley Sands in Southern Arkansas (68 percent liquids) and 1 percent in Colorado’s North Park Basin (100 percent liquids).
BCEI has gr own reserves at a 45
Top 10 Energy Stocks For 2017: Euro FX(P)
Ecopetrol S.A. operates as an integrated oil company in Colombia, Peru, Brazil, and the U.S. Gulf Coast. The company engages in the exploration, development, and production of crude oil and natural gas. As of December 31, 2010, its proved reserves of crude oil and natural gas consisted of 1,714.0 million barrels of oil equivalent. The company also transports crude oil, motor fuels, fuel oil, and other refined products, as well as mixture of diesel and palm oil. It owns transportation network consisting of 3,003 kilometers of crude oil pipeline directly, as well as an additional 2,178 kilometers of crude oil pipeline with its business partners; and 3,017 kilometers of multi-purpose pipelines for transportation of refined products from refinery to wholesale distribution points. As of the above date, Ecopetrol S.A. owned 58 stations with a nominal storage capacity of 19 million barrels of crude oil and 6 million barrels of refined products. In addition, the company owns and o perates refineries that produce a range of refined products, including gasoline, diesel, kerosene, jet fuel, aviation fuel, liquefied petroleum gas, sulfur, heavy fuel oils, motor fuels, and petrochemicals, including paraffin waxes, lube base oils, low-density polyethylene, aromatics, asphalts, alkylates, cyclohexane and aliphatic solvents, and refinery grade propylene, as well as provides industrial services to third parties. Further, it markets various refined and feed stock products, including regular and high octane gasoline, diesel fuel, jet fuel, natural gas, and petrochemical products. The company was formerly known as Empresa Colombiana de Petroleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was founded in 1948 and is based in Bogota, Colombia.
- [By Jon C. Ogg]
Pandora Media Inc. (NYSE: P) is supposed to be under a brand new chief executive officer, and we noted recently about waves and waves of insider selling. Now we are getting word that Pandora plans to increase its float with a secondary stock offering.
- [By Douglas A. McIntyre]
Severalvery well-known apps are not on either top five list, buteach must get millions of downloads a month. Twitter, weather apps, Pandora Media Inc. (NYSE: P), eBay Inc. (NASDAQ: EBAY), Gmail, Pinterest, Amazon.com Inc. (NASDAQ: AMZN), Skype and Groupon Inc. (NASDAQ: GRPN) already rule across the PC, tablet and smartphone “ecosystems.” None of these is likely to lose popularity, and some probably will gain more.
- [By WALLSTCHEATSHEET.COM]
Pandora is an Internet radio company that attempts to match listeners with their preferences in order to discover music they love. The company has just revealed who the new CEO of the company will be. The stock has been rising higher in recent quarters and is now trading at highs for the year. Over the last four quarters, earnings have been mixed while revenues have been rising, however, investors have expected more from the company. Relative to its peers and sector, Pandora has been a year-to-date performance leader. Look for Pandora to continue to OUTPERFORM.
- [By Monica Gerson]
Pandora Media (NYSE: P) surged 3.57% to $26.56. The volume of Pandora shares traded was 554% higher than normal. Pandora priced an underwritten public offering of 18,200,000 shares of its common stock at a price of $25.00 per share.
Top 10 Energy Stocks For 2017: MPLX LP(MPLX)
MPLX LP owns, operates, develops, and acquires pipelines and other midstream assets related to the transportation and storage of crude oil, refined product, and other hydrocarbon-based products in the United States. As of December 31, 2014, the company owned a 99.5% interest in an entity, which in turn collectively owned and operated a network of pipeline systems that include approximately 1,004 miles of common carrier crude oil pipelines; and approximately 1,902 miles of common carrier product pipelines in 9 states. It also holds a 100% interest in butane cavern located in Neal, West Virginia with approximately 1 million barrels of storage capacity. In addition, the company operates crude oil and product pipelines owned by third parties. MPLX GP LLC acts as the general partner of MPLX LP. The company was founded in 2012 and is headquartered in Findlay, Ohio. MPLX LP is a subsidiary of Marathon Petroleum Corporation.
- [By Garrett Cook]
Lastly, Citi says Marathon Petroleum (NYSE: MPC) and MPLX LP (NYSE: MPLX) remain Buy rated the heels of benefits derived from strong product demand and the NGL recovery.
- [By Ben Levisohn]
JPMorgan analyst Phil Gresh and team explain what they got wrong about Marathon Petroleum (MPC), as they cut its rating to Neutral from Overweight following yesterday’s disastrous financial results from MPLX (MPLX):
Top 10 Energy Stocks For 2017: ConocoPhillips(COP)
ConocoPhillips operates as an integrated energy company worldwide. The company?s Exploration and Production (E&P) segment explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. Its Midstream segment gathers, processes, and markets natural gas; and fractionates and markets natural gas liquids in the United States and Trinidad. The company?s Refining and Marketing (R&M) segment purchases, refines, markets, and transports crude oil and petroleum products, such as gasolines, distillates, and aviation fuels. Its Chemicals segment manufactures and markets petrochemicals and plastics. This segment offers olefins and polyolefins, including ethylene, propylene, and other olefin products; aromatics products, such as benzene, styrene, paraxylene, and cyclohexane, as well as polystyrene and styrene-butadiene copolymers; and various specialty chemical products comprising organosulfur chemicals, solvents, catalyst s, drilling chemicals, mining chemicals, and engineering plastics and compounds. The company?s Emerging Businesses segment develops new technologies and businesses. It focuses on power generation; and technologies related to conventional and nonconventional hydrocarbon recovery, refining, alternative energy, biofuels, and the environment. This segment also offers E-Gas, a gasification technology producing high-value synthetic gas. ConocoPhillips was founded in 1917 and is based in Houston, Texas.
- [By Ben Levisohn]
Yes ConocoPhillips’ (COP) missed earnings forecasts this morning, but Deutsche Bank’s Ryan Todd is impressed with its free-cash-flow generation:
While we have argued for a story-shift at COP underpinned in great part on a relatively better positioned (and improving) cost structure, we were nevertheless surprised at cash-flow neutrality at $45/bbl (pre-div). While FCF (pre-div) ~$100mm (vs. DBe loss of $200mm) benefitted from a sizeable vol beat 1546 vs. DBe 1510 Mboe/d (despite Surmont downtime), opex/capex both beat (~$100/$265mm) lowering the FY16 targets to $6.8/$5.5Bn resp. With relatively higher leverage to a rally in crude and a peer-leading cost structure, we see significant medium-term FCF growth driving onshore re-investment and accelerated cash returns to shareholders. Maintain Buy.
Shares of ConocoPhillips have risen 0.3% to $40.19 at 3:11 p.m. today, while the Energy Select Sector SPDR ETF (XLE) has ticked down 0.1% to $66.62.
Top 10 Energy Stocks For 2017: Alon USA Partners, LP(ALDW)
Alon USA Partners, LP refines and markets petroleum products in the United States. The company owns and operates a crude oil refinery in Big Spring, Texas with crude oil throughput capacity of 73,000 barrels per day. It refines oil into petroleum products, including gasoline, diesel, jet fuel, petrochemicals, petrochemical feed stocks, asphalts, and other petroleum products. The company sells its products through its wholesale distribution network to retail convenience stores and other third-party distributors primarily in Central and West Texas, Oklahoma, New Mexico, and Arizona. Alon USA Partners GP, LLC serves as a general partner of the company. The company was founded in 2012 and is based in Dallas, Texas. Alon USA Partners, LP is a subsidiary of Alon USA Energy, Inc.
- [By Tom Dorsey]
Over a several day period, I submitted questions and Mr. Eisman, President, Chief Executive Officer and Director of Alon USA Energy Inc. (ALJ) and the parent company of Alon USA Partners LP Inc. (ALDW) responded. He provided some key insights to some challenges the company faces, where the company is going, and the opportunities available in the future. This insight should provide investors with additional information to understand the value of the company and the opportunity as an investor in the company.
Top 10 Energy Stocks For 2017: Vaalco Energy Inc(EGY)
VAALCO Energy, Inc. (VAALCO), incorporated on February 28, 1989, is an independent energy company. The Company is engaged in the acquisition, exploration, development and production of crude oil and natural gas. The Company’s segments include Gabon, Angola, Equatorial Guinea, the United States, and Corporate and other, which includes corporate and operations support. The Company owns producing properties and conducts exploration activities as an operator in Gabon, West Africa; conducts exploration activities as an operator in Angola, West Africa, and participates in exploration and development activities as a non-operator in Equatorial Guinea, West Africa. In the United States, it operates unconventional resource properties in North Texas and hold undeveloped leasehold acreage in Montana. It also owns minor interests in conventional production activities as a non-operator in the United States. VAALCO’s subsidiaries include VAALCO Gabon (Etame), Inc., VAALCO Production (Gab on), Inc., VAALCO Angola (Kwanza), Inc., VAALCO UK (North Sea), Ltd., VAALCO International, Inc., VAALCO Energy (EG), Inc., VAALCO Energy Mauritius (EG) Limited and VAALCO Energy (USA), Inc.
The Company’s Etame Marin block is located offshore the Republic of Gabon (Gabon). The Etame Marin block covers an area of approximately 28,700 gross acres and consists of subsalt reservoirs that lie over 20 miles offshore in water depths of approximately 250 feet. The Etame, Avouma/South Tchibala, Ebouri, Southeast Etame and North Tchibala fields are included in the block. Production operations in the Etame Marin block include approximately 10 wells from over four platforms, approximately three subsea wells across all fields tied back by pipelines to deliver oil and associated natural gas through a riser system to allow for delivery, processing, storage and offloading the oil from a leased Floating, Production, Storage and Offloading vessel (FPSO) anchore d to the seabed on the block. Its aggregate production from ! the block is approximately 6.8 million barrels (MMBbls).
The Company has exploration rights to approximately 1.4 million acres offshore central Angola. Additionally, the Company is required to carry the Angolan national oil company, Sonangol P&P, for approximately 10% of the work program.
VAALCO has working interest in a portion of Block P, offshore Equatorial Guinea for the exploration potential on the block. The Company and its partners are working for development and exploration activities in the production area (PDA), including the approval of a development and production plan.
The Company owns approximately 640-acre lease in the Hefley field (Granite Wash formation) in North Texas. The two wells produced approximately 3,000 barrels (Bbls) of condensate and over 180 million cubic feet (MMcf) net to VAALCO. The Company owns working interest in approximately 22,000 gross acres (over 14,300 net acres) covering the Middle Bakken and deeper formations in the East Poplar unit and the Northwest Poplar field in Roosevelt County, Montana.
- [By Monica Gerson]
VAALCO Energy, Inc. (NYSE: EGY) is expected to post a quarterly loss at $0.11 per share on revenue of $18.59 million.
B2Gold Corp (NYSE: BTG) is estimated to post its quarterly earnings at $0.00 per share on revenue of $135.84 million.
Top 10 Energy Stocks For 2017: Energy XXI Ltd.(EXXI)
Energy XXI Ltd engages in the acquisition, exploration, development, and operation of oil and natural gas properties onshore in Louisiana and Texas, and on the Gulf of Mexico. As of June 30, 2015, the company had net proved reserves of 183.5 million barrels of oil equivalent. It operated or had an interest in 567 gross producing wells on 388,199 net developed acres, including interests in 52 producing fields. The company was founded in 2005 and is based in Houston, Texas.
- [By Lisa Levin]
Shares of Energy XXI Ltd (NASDAQ: EXXI) were down 72 percent to $0.181 after the company announced that it and some of its subsidiaries have entered into a Restructuring Support Agreement (RSA) with holders of more than 63 percent of its secured second lien 11.0 percent notes. Energy XXI added that in order to implement the terms of the RSA, it has commenced cases under Chapter 11 of the Bankruptcy Code.