Credit Suisse analystsMark Lear and team explain why they upgradedWhiting Petroleum (WLL) to Outperform from Neutral:
We upgradeWhiting Petroleum to Outperform and raise our target price to $14 per share (from $13/sh) given Whiting Petroleums significant beta to a higher mark to market 2Q16 WTI price. Our target price is further aided by a recent debt exchange whereby the company was able to remove $1.065bn of debt principal through the use of mandatory convertibles. Our $14/sh target price…is based on an assumption of max dilution, with actual shares issued on the convertible debt depending on how Whiting Petroleums stock trades over the next few weeks. This exchange came on the heels of a smaller 1Q16 announcement which removes ~$477mm of debt from the balance sheet.
In the most recent exchange, the minimum mandatory conversion price has a lower bound at $8.75 per share, which when coupled with macro fears appears to have unjustly hurt and kept the stock range-bound since the announcement, asWhiting Petroleum is down ~34% over the past month relative to the XOP up ~2%. However, an extensive inventory in the core of the Williston coupled with improving type curves from larger completions which are increasing validated in state production data provide compelling near term catalysts as we expect drilling activity to accelerate in 2017 at the latest. Meanwhile, asset sales remain another key catalyst with remaining assets on the block including North Ward Estes and the monetization of Whiting Petroleums Williston Basin gas plants.
Top 5 Insurance Companies To Watch For 2016: Stamps.com Inc.(STMP)
Stamps.com Inc. provides Internet-based postage solutions in the United States. It offers solutions for mailing and shipping various mail pieces, such as postcards, envelopes, flats, and packages using a range of United States Postal Service (USPS) mail classes, including First Class Mail, Priority Mail, Priority Mail Express, Media Mail, Parcel Select, and others. The companys products and services comprise USPS approved PC Postage service that enables users to print electronic stamps directly onto envelopes, plain paper, or labels using personal computer, printer, and Internet connection. It also provides multi carrier shipping solutions under the ShipStation and ShipWorks brands; mailing and shipping integrations solutions comprising electronic postage for transactions to partners who manage the front-end process; sells NetStamps labels, DYMO Stamp labels, shipping labels, other mailing labels, dedicated postage printers, scales, and other mailing and shipping-focused office supplies through its mailing and shipping supplies store; and Stamps.com branded insurance to insure mails or packages. In addition, the company offers PhotoStamps, a patented form of postage service, which allows consumers to turn digital photos, designs, or images into USPS-approved postages. It serves individuals, small businesses, home offices, medium-size businesses, and large enterprises. The company was formerly known as StampMaster, Inc. and changed its name to Stamps.com Inc. in December 1998. Stamps.com Inc. was founded in 1996 and is headquartered in El Segundo, California.
- [By Javier Hasse]
Other stocks moving in Friday’s after-hours session included:
A. O. Smith Corp (NYSE: AOS), down 2.5 percent Pan American Silver Corp. (USA) (NASDAQ: PAAS), down 2.1 percent Stamps.com Inc. (NASDAQ: STMP), up 1.87 percent
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
Top 5 Insurance Companies To Watch For 2016: American Electric Power Company, Inc.(AEP)
American Electric Power Company, Inc. (AEP), incorporated on December 20, 1906, is a public utility holding company that owns, directly or indirectly, all of the outstanding common stock of its public utility subsidiaries and varying percentages of other subsidiaries. The service areas of the Company’s public utility subsidiaries cover the states of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. The public utility subsidiaries of AEP provide electric service, consisting of generation, transmission and distribution, on an integrated basis to retail customers. The Company’s segments include Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing.
Vertically Integrated Utilities
AEP’s vertically integrated utility operations are engaged in the generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEP Generating Company (AEGCo), Appalachian Power Company (APCo), Indiana Michigan Power Company (I&M), Kingsport Power Company (KGPCo), Kentucky Power Company (KPCo), Public Service Company of Oklahoma (PSO), Southwestern Electric Power Company (SWEPCo) and Wheeling Power Company (WPCo). AEP’s vertically integrated public utility subsidiaries own or lease approximately 23,600 megawatts (MW) of domestic generation.
AEGCo is an electric generating company. AEGCo owns approximately 2,500 MW of generating capacity. AEGCo sells power at wholesale to AEP Generation Resources Inc. (AGR), I&M and KPCo. APCo is engaged in the generation, transmission and distribution of electric power to approximately 957,000 retail customers in the southwestern portion of Virginia and southern West Virginia, and in supplying and marketing electric power at wholesale to other electric utility companies, municipalities and oth er market participants. APCo owns over 6,650 MW of generatin! g capacity. The principal industries served by APCo include paper, rubber, coal mining, textile mill products and stone, clay and glass products.
I&M is engaged in the generation, transmission and distribution of electric power to approximately 588,000 retail customers in northern and eastern Indiana and southwestern Michigan, and in supplying and marketing electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities and other market participants. I&M owns or leases approximately 3,520 MW of generating capacity, which it uses to serve its retail and other customers. The principal industries served include metals, transportation equipment, electrical and electronic machinery, fabricated metal products, rubber and chemicals and allied products, rubber products and transportation equipment.
KGPCo provides electric service to approximately 47,000 retail customers in Kingsport and over eight neighboring com munities in northeastern Tennessee. KGPCo does not own any generating facilities. KPCo is engaged in the generation, transmission and distribution of electric power to approximately 170,000 retail customers in eastern Kentucky, and in supplying and marketing electric power at wholesale to other electric utility companies, municipalities and other market participants. KPCo owns over 1,060 MW of generating capacity. KPCo uses its generation to serve its retail and other customers. The principal industries served include petroleum refining, coal mining and chemical production.
PSO is engaged in the generation, transmission and distribution of electric power to approximately 545,000 retail customers in eastern and southwestern Oklahoma, and in supplying and marketing electric power at wholesale to other electric utility companies, municipalities, rural electric cooperatives and other market participants. PSO owns over 4,430 MW of generating capacity, which it uses t o serve its retail and other customers. The principal indust! ries serv! ed by PSO include paper manufacturing and timber products, natural gas and oil extraction, transportation, non-metallic mineral production, oil refining and steel processing.
SWEPCo is engaged in the generation, transmission and distribution of electric power to approximately 531,000 retail customers in northeastern and panhandle of Texas, northwestern Louisiana and western Arkansas and in supplying and marketing electric power at wholesale to other electric utility companies, municipalities, rural electric cooperatives and other market participants. SWEPCo owns over 5,800 MW of generating capacity, which it uses to serve its retail and other customers. The principal industries served by SWEPCo include natural gas and oil production, petroleum refining, manufacturing of pulp and paper, chemicals, food processing and metal refining. The territory served by SWEPCo also includes several military installations, colleges and universities. SWEPCo also owns and operate s a lignite coal mining operation. WPCo provides electric service to approximately 41,000 retail customers in northern West Virginia.
Transmission and Distribution Utilities
The Company’s Transmission and Distribution Utilities segment consists of the transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by Ohio Power Company (OPCo), AEP Texas Central Company (TCC) and AEP Texas North Company (TNC). OPCo is engaged in the transmission and distribution of electric power to approximately 1,468,000 retail customers in Ohio. OPCo purchases energy and capacity to serve generation service customers. The principal industries served by OPCo include metals, chemicals and allied products, health services, electronic machinery, petroleum refining, and rubber and plastic products. TCC is engaged in the transmission and distribution of electric power to approximately 826,000 retail customers thr ough Texas Retail Electric Providers (REPs) in southern Texa! s. The pr! incipal industries served by TCC include chemical and petroleum refining, chemicals and allied products, oil and natural gas extraction, food processing, metal refining, plastics and machinery equipment. TNC is engaged in the transmission and distribution of electric power to approximately 189,000 retail customers through REPs in west and central Texas. The principal industries served by TNC include petroleum refining, agriculture and the manufacturing or processing of cotton seed products, oil products, precision and consumer metal products, meat products and gypsum products.
AEP Transmission Holdco
The Company’s AEP Transmission Holdco segment is engaged in the development, construction and operation of transmission facilities through investments in AEP’s transmission only subsidiaries and transmission only joint ventures. AEP Transmission Holding Company, LLC (AEPTHCo) also owns AEP Transmission Company, LLC (AEPTCo), a holding company for approx imately seven transmission-only electric utilities, each of which is geographically aligned with AEP’s existing utility operating companies. The transmission companies develop and own new transmission assets that are physically connected to the AEP System.
Generation & Marketing
The Company’s Generation & Marketing segment’s subsidiaries consist of nonutility generating assets, a wholesale energy trading and marketing business and a retail supply and energy management business. AEP Generation Resources Inc., (AGR), the Company’s subsidiary, is a generation company that generates power and sells it into the market. AGR also engages in power trading activities. AGR owns approximately 6,750 MW of generating capacity. The segment is engaged in non-regulated generation in Electric Reliability Council of Texas regional transmission organization (ERCOT) and Pennsylvania-New Jersey-Maryland regional transmission organization (PJM). It is also engaged in pro viding marketing, risk management and retail activities in E! RCOT, PJM! , Southwest Power Pool regional transmission organization (SPP) and Midwest Independent Transmission System Operator (MISO).
- [By Richard Stavros]
Southern Company’s total return is down 6.4 percent over the last year versus the S&P 500′s gain of 17.7 percent. But even against its sector peers, the utility has been a laggard: Over that same period, Duke Energy Corp (NYSE: DUK) is up 5.8 percent, and American Electric Power Co (NYSE: AEP) has returned 2.1 percent.
Top Dividend Stocks To Invest In 2016: Ubiquiti Networks, Inc.(UBNT)
Ubiquiti Networks, Inc. provides networking products and solutions for service providers and enterprises worldwide. Its service provider product platforms provide carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing; and enterprise product platforms offer wireless LAN infrastructure, video surveillance products, VOIP phones, switches, and machine-to-machine communication components. The companys products and solutions include high performance radios, antennas, software, communications protocols, and management tools designed to deliver carrier and enterprise class wireless broadband access and other services primarily in the unlicensed RF spectrum. It provides technology platforms, such as airMAX platform, which includes proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a disruptive price-performance software and systems routing platform ; and airFiber, a point-to-point radio system. The company also offers UniFi Enterprise Wi-Fi System that includes Wi-Fi certified hardware with a software based management controller; UniFi Video H.264 megapixel IP cameras; and UniFi Video management software controller to manage multiple UniFi Video H.264 IP cameras and digital video recorder devices. In addition, it provides UniFi VOIP Phone, an enterprise desktop smartphone designed to integrate into the UniFi Enterprise System; UniFi Switches to deliver performance, switching, and PoE+ support for enterprise networks; and mFi, which includes hardware sensors, power devices, and management software that allows devices to be monitored and controlled remotely through Wi-Fi. Further, the company provides embedded radio products; and mounting brackets, cables, and power over Ethernet adapters. The company was formerly known as Pera Networks, Inc. and changed its name to Ubiquiti Networks, Inc. in 2005. Ubiquiti Networks, Inc . was incorporated in 2003 and is headquartered in San Jose,! California.
- [By Jon C. Ogg]
Ubiquiti Networks Inc. (NASDAQ: UBNT) was given a cautious Neutral rating as well, and it had the least negative bias in Garcha’s call. He said:
- [By Mani]
Ubiquiti Networks, Inc. (NASDAQ:UBNT) shares have been in rally mode, particularly since reporting strong quarterly results in August, gaining 57 percent. Over the past three months, shares have climbed nearly 100 percent versus a 9 percent gain in the NASDAQ.
Top 5 Insurance Companies To Watch For 2016: 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 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):
- [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.
Top 5 Insurance Companies To Watch For 2016: Gas Natural Inc.(EGAS)
Gas Natural Inc., incorporated on July 1, 2010, is a natural gas company. The Company operates through three segments: Natural Gas; Marketing and Production, and Corporate and Other.
The Natural Gas segment annually distributes approximately 20 billion cubic feet of natural gas to its customers through regulated utilities operating in Maine, Montana, North Carolina and Ohio. The Company’s operations in Maine provide natural gas service to customers in Bangor, Brewer, Old Town, Orono, Bucksport, Hermon, Veazie and Lincoln. Its operations in Montana provide natural gas service to customers in Cascade, Gallatin and Glacier counties. Its North Carolina operations provide natural gas service to customers in Ashe, Surry, Warren, Watauga, Wilkes and Yadkin counties. The Company’s Ohio operations provide natural gas service to customers in Ashland, Ashtabula, Carroll, Columbiana, Coshocton, Cuyahoga, Fairfield, Franklin, Geauga, Guernsey, Harr ison, Hocking, Holmes, Huron, Knox, Lake, Lorain, Mahoning, Medina, Portage, Richland, Stark, Summit, Trumbull, Tuscarawas, Washington and Wayne counties. The Company’s natural gas utility subsidiaries include Bangor Gas Company, LLC (Maine), Brainard Gas Corp (Ohio), Cut Bank Gas Company (Montana), Energy West Montana, Inc. (Montana), Frontier Natural Gas, LLC (North Carolina), Northeast Ohio Natural Gas Corp (Ohio) and Orwell Natural Gas Company (Ohio).
Marketing and Production
The Company’s Marketing and Production segment annually markets approximately 1.5 billion cubic feet of natural gas to commercial and industrial customers in Montana, Wyoming and Ohio through its subsidiaries, Energy West Resources, Inc. (EWR) and Gas Natural Resources, LLC (GNR). The Company also manages midstream supply and production assets for transportation customers and utilities through its subsidiary, EWR. EWR owns interest in approximately 160 natural gas producing wells in operation on state lease mineral rights in Glacier! and Toole Counties in Montana.
The Company competes with Northern Utilities Inc., Maine Natural Gas, Northwestern Energy, Montana-Dakota Utilities Co., Dominion East Ohio, Columbia Gas of Ohio and National Gas & Oil.
- [By Monica Gerson]
Gas Natural Inc (NYSE: EGAS) is projected to post its quarterly earnings at $0.23 per share.
Caleres Inc (NYSE: CAL) is expected to post its quarterly earnings at $0.23 per share on revenue of $632.89 million.