The last quarterly report by Key Energy Services (NYSE:KEG) wasn't too impressive, but Canaccord Genuity sees things improving for them going forward, and maintain a "Buy" rating on them.
"We reiterate our BUY rating on KEG as we expect pricing to gain more traction in the US well servicing business driven by a high oil price and an increasing oil-directed rig count, stronger coiled tubing demand, equipment going to work in new locations internationally like Colombia and Bahrain, and integration of its OFS Energy acquisition," said Canaccord.
Key Energy closed Friday at $9.85, down $0.20, or 1.99 percent. Canaccord has a price target of $13.50 on them.
Showing posts with label Canaccord Genuity. Show all posts
Showing posts with label Canaccord Genuity. Show all posts
Monday, November 1, 2010
Patterson-UTI Energy (Nasdaq:PTEN) Could Benefit from Traditional Markets
Even though Canaccord Genuity kept their "Hold" rating on Patterson-UTI Energy (Nasdaq:PTEN), they see a potential catalyst in their traditionally strong markets, specifically in rig deployments and pressure pumping fleet.
Canaccord said, "Although we have PTEN at a HOLD, we continue to warm up to the story as we believe that the next catalysts could come in the integration and expansion of its pressure pumping fleet and further rig deployments in PTEN’s traditionally strong geographic markets. We are biased to the upside on PTEN and have admittedly been caught a little flat footed with PTEN’s outperformance over the past two months."
Patterson closed Friday at $19.41, gaining $0.24, or 1.25 percent. Canaccord has a price target of $22 on the company.
Canaccord said, "Although we have PTEN at a HOLD, we continue to warm up to the story as we believe that the next catalysts could come in the integration and expansion of its pressure pumping fleet and further rig deployments in PTEN’s traditionally strong geographic markets. We are biased to the upside on PTEN and have admittedly been caught a little flat footed with PTEN’s outperformance over the past two months."
Patterson closed Friday at $19.41, gaining $0.24, or 1.25 percent. Canaccord has a price target of $22 on the company.
Thursday, October 28, 2010
National Oilwell Varco (NYSE:NOV) Backlog Looks Strong
National Oilwell Varco (NYSE:NOV) surprised analysts and commentators with their strong backlog outlook for rigs and equipment, and Canaccord Genuity particularly liked it, maintaining their "Buy" on the company on that growing backlog and outperformance in the third quarter.
"New capital equipment orders of $1.18B provided the biggest upside surprise, as two Brazilian floaters and increased global demand for rigs/equipment improved the backlog outlook. For PS&S and Distribution, strong NAM drilling activity and service intensity continue to drive revenue growth and margin expansion. Our Q4 and 2011 EPS estimates are raised to $0.95 and $3.75 respectively."
Others liked the outlook for National Oilwell as well, as they attracted a lot of attention Wednesday, with trading volume almost triple its daily 3-month average.
National closed at $54 even Wednesday, gaining $1.97, or 3.79 percent. Canaccord put a price target of $65 on them.
"New capital equipment orders of $1.18B provided the biggest upside surprise, as two Brazilian floaters and increased global demand for rigs/equipment improved the backlog outlook. For PS&S and Distribution, strong NAM drilling activity and service intensity continue to drive revenue growth and margin expansion. Our Q4 and 2011 EPS estimates are raised to $0.95 and $3.75 respectively."
Others liked the outlook for National Oilwell as well, as they attracted a lot of attention Wednesday, with trading volume almost triple its daily 3-month average.
National closed at $54 even Wednesday, gaining $1.97, or 3.79 percent. Canaccord put a price target of $65 on them.
Magnum Hunter (Amex:MHR) Looks Strong on Marcellus, Eagle Ford Trend
Citing Magnum Hunter's (Amex:MHR) significant exposure to Marcellus shale and Eagle Ford trends, Canaccord Genuity maintained a "Buy" rating on them while raising their price target.
Canaccord sees Magnum having a solid 2011.
"We are increasingly constructive on the company’s management team and its relative growth potential in the Eagle Ford and Marcellus trends. In our view, Magnum Hunter is well positioned to outperform based on its leading exposure to the Eagle Ford oil trend and material catalysts (including three initial Eagle Ford well results, Eagle Ford JVs, two initial Marcellus wells, and midstream announcements)," said Canaccord.
Magnum closed Wednesday at $4.76, remaining the same as the prior trading session. Canaccord has a price target of $5.75 on them.
Canaccord sees Magnum having a solid 2011.
"We are increasingly constructive on the company’s management team and its relative growth potential in the Eagle Ford and Marcellus trends. In our view, Magnum Hunter is well positioned to outperform based on its leading exposure to the Eagle Ford oil trend and material catalysts (including three initial Eagle Ford well results, Eagle Ford JVs, two initial Marcellus wells, and midstream announcements)," said Canaccord.
Magnum closed Wednesday at $4.76, remaining the same as the prior trading session. Canaccord has a price target of $5.75 on them.
Monday, October 25, 2010
Precision Drilling (NYSE:PDS) Outlook Positive Says Canaccord
After reporting their quarterly results, Precision Drilling (NYSE:PDS) maintained their "Buy" rating from Canaccord Genuity.
Rob McNally, Executive Vice President and Chief Financial Officer, said on the conference call:
"Precision had a very solid quarter. We reported net earnings of $61 million or $0.21 per diluted share on revenues of $359 million for the third quarter. These results do include an $18 million foreign exchange gain which equates to about $0.05 per share relating to our debt being primarily US dollar denominated.
"Our Q3 2010 EBITDA was $113 million, which represents a 31% increase over the $86 million achieved in the third quarter of 2009. The improved third quarter results primarily reflect increased utilization. Activity levels have increased meaningfully with the continuation of positive momentum building from the beginning of the year."
Canaccord said, "We reiterate our rating and target price (based on 6.0x 2011E EV/EBITDA) following PD’s in-line Q3 results; our thesis remains intact as the company has a large mix of high-performance rigs and enjoys geographic diversity across North America. The company also continues to benefit from increasing oil and liquids-rich drilling, pricing traction starting to take in Canada, and moving forward with its new build programs."
Precision closed Friday at $7.76, gaining $0.21, or 2.78 percent. Canaccord has a price target of C$10 on them.
Rob McNally, Executive Vice President and Chief Financial Officer, said on the conference call:
"Precision had a very solid quarter. We reported net earnings of $61 million or $0.21 per diluted share on revenues of $359 million for the third quarter. These results do include an $18 million foreign exchange gain which equates to about $0.05 per share relating to our debt being primarily US dollar denominated.
"Our Q3 2010 EBITDA was $113 million, which represents a 31% increase over the $86 million achieved in the third quarter of 2009. The improved third quarter results primarily reflect increased utilization. Activity levels have increased meaningfully with the continuation of positive momentum building from the beginning of the year."
Canaccord said, "We reiterate our rating and target price (based on 6.0x 2011E EV/EBITDA) following PD’s in-line Q3 results; our thesis remains intact as the company has a large mix of high-performance rigs and enjoys geographic diversity across North America. The company also continues to benefit from increasing oil and liquids-rich drilling, pricing traction starting to take in Canada, and moving forward with its new build programs."
Precision closed Friday at $7.76, gaining $0.21, or 2.78 percent. Canaccord has a price target of C$10 on them.
Thursday, October 14, 2010
Northern (Amex:NOG) Stacked Against Brigham (Nasdaq:BEXP), Kodiak (Amex:KOG) and Oasis (NYSE:OAS)
With the liquidity and growth potential of Northern Oil and Gas (Amex:NOG), Canaccord Genuity says they're trading at an unjustifiable 10 percent discount against peers Brigham Exploration (Nasdaq:BEXP), Kodiak Oil & Gas (NYSE Amex:KOG) and Oasis Petroleum (NYSE:OAS).
Also liking the plan of Northern, Canaccord said, "We are reiterating our rating with greater conviction based on Northern Oil’s accelerated development plan and its proven ability to organically acquire acreage at accretive levels. We continue to believe Northern trades at too steep of a discount to its peers for a company with its liquidity and relative growth potential. At present, NOG trades at a 10% discount (EV/EBITDAX) to its closest peers (Brigham Exploration (Nasdaq:BEXP), Kodiak Oil & Gas (NYSE Amex:KOG), Oasis Petroleum (NYSE:OAS)."
All the companies closed in positive territory Wednesday.
Northern closed at $18.72, gaining $0.02, or 0.11 percent. Canaccord, which maintains a "Buy" on the company, has a price target of $24 on them.
Also liking the plan of Northern, Canaccord said, "We are reiterating our rating with greater conviction based on Northern Oil’s accelerated development plan and its proven ability to organically acquire acreage at accretive levels. We continue to believe Northern trades at too steep of a discount to its peers for a company with its liquidity and relative growth potential. At present, NOG trades at a 10% discount (EV/EBITDAX) to its closest peers (Brigham Exploration (Nasdaq:BEXP), Kodiak Oil & Gas (NYSE Amex:KOG), Oasis Petroleum (NYSE:OAS)."
All the companies closed in positive territory Wednesday.
Northern closed at $18.72, gaining $0.02, or 0.11 percent. Canaccord, which maintains a "Buy" on the company, has a price target of $24 on them.
Monday, October 11, 2010
Canaccord Reiterates "Buy" on Suncor Energy (NYSE:SU)
Canaccord Genuity said they're maintaining a "Buy" on Suncor Energy Inc. (NYSE:SU), updating their production numbers.
"September oil sands production (ex-Syncrude) averaged 264 MBbl/d. This number came in lower than the 285 MBbl/d we had been expecting ... Nonetheless, the production level is still positive. Had the U2
upgrader turnaround and the planned maintenances at Firebag and MacKay River not taken place, we estimate September ex-Syncrude oil sands production would have averaged approximately 310 MBbl/d. This is still a strong number. The MacKay and Firebag maintenances have been completed and the U2 work is a six-week turnaround that started in early September. For Suncor to meet the low and midpoint of this year’s annual guidance, which remains at 280 MBbl/d (+/-5%), production would need to average 260 to 315 MBbl/d for the remaining three months," said Canaccord.
Suncor closed last week at $34.61, gaining $1.10 on Friday, or 3.28 percent. Canaccord has a price target of 43 on the company.
"September oil sands production (ex-Syncrude) averaged 264 MBbl/d. This number came in lower than the 285 MBbl/d we had been expecting ... Nonetheless, the production level is still positive. Had the U2
upgrader turnaround and the planned maintenances at Firebag and MacKay River not taken place, we estimate September ex-Syncrude oil sands production would have averaged approximately 310 MBbl/d. This is still a strong number. The MacKay and Firebag maintenances have been completed and the U2 work is a six-week turnaround that started in early September. For Suncor to meet the low and midpoint of this year’s annual guidance, which remains at 280 MBbl/d (+/-5%), production would need to average 260 to 315 MBbl/d for the remaining three months," said Canaccord.
Suncor closed last week at $34.61, gaining $1.10 on Friday, or 3.28 percent. Canaccord has a price target of 43 on the company.
UBS (NYSE:UBS), Canaccord Maintain "Buy" on Concho Resources (NYSE:CXO)
UBS (NYSE:UBS) and Canaccord Genuity both say they're maintaining their "Buy" rating on Concho Resources (NYSE:CXO).
Canaccord said, "We are reiterating our rating with greater conviction based on the closure of the Marbob deal, the announced divestiture plan and the announced Bone Spring acreage update. We continue to be impressed by the company’s management team and its laser focus on high return oily plays in the Permian Basin. With these announcements, we believe the company is well positioned to outperform based on its stronger asset base and increasing investor interest in the Bone Spring trend."
They have a price target of $74 on Concho.
"CXO will pay roughly $1.3bn (vs. $1.65bn prior) for Marbob after $400m in
pref rights were exercised on Yeso, NM shelf assets (which may be
reversed)...Importantly, CXO disclosed that it acquired 150k net acres in the Bone Spring as part of the deal, vs. 100k previously thought, which is
incremental to our NAV by $3/share...We are lowering our 2011/2012 estimates to $9.93/$11.01 from $10.25/$11.80 owing to lower incremental volumes from the acquisition," said UBS.
They lifted Concho's price target from $70 to $76.
Canaccord said, "We are reiterating our rating with greater conviction based on the closure of the Marbob deal, the announced divestiture plan and the announced Bone Spring acreage update. We continue to be impressed by the company’s management team and its laser focus on high return oily plays in the Permian Basin. With these announcements, we believe the company is well positioned to outperform based on its stronger asset base and increasing investor interest in the Bone Spring trend."
They have a price target of $74 on Concho.
"CXO will pay roughly $1.3bn (vs. $1.65bn prior) for Marbob after $400m in
pref rights were exercised on Yeso, NM shelf assets (which may be
reversed)...Importantly, CXO disclosed that it acquired 150k net acres in the Bone Spring as part of the deal, vs. 100k previously thought, which is
incremental to our NAV by $3/share...We are lowering our 2011/2012 estimates to $9.93/$11.01 from $10.25/$11.80 owing to lower incremental volumes from the acquisition," said UBS.
They lifted Concho's price target from $70 to $76.
Thursday, October 7, 2010
Canaccord Maintains "Hold" on Enbridge (NYSE:ENB) After Investor Day
Canaccord Genuity visited Enbridge Inc. (NYSE:ENB) for their annual investors day, and said afterward maintains a "Hold" on the company.
Canaccord said, "Enbridge hosted its annual 'Enbridge Day' in Toronto, updating the investment community on current and future initiatives and its financial outlook. The company is comfortable with its targeted 10% annual EPS growth through 2014 and 18% cash flow growth for the same period. In addition to current liquids transportation initiatives, ENB identified various platforms to fuel future growth (midstream, a re-entry into international investments, natural gas generation and electricity transmission) to give it - $30 billion of development opportunities. We continue to be impressed by the company’s ability to find new projects, and maintain our HOLD.
"While there may be some risk Enbridge could experience reduced earnings
and/or cash flow from the NEB’s final Alberta Clipper decision, our target
price reflects full earnings and cash flow."
The company closed Wednesday at $53.91, up slight to $0.02, or 0.04 percent. Canaccord has a price target of C$55 on them. In Toronto they closed at $54.50.
Canaccord said, "Enbridge hosted its annual 'Enbridge Day' in Toronto, updating the investment community on current and future initiatives and its financial outlook. The company is comfortable with its targeted 10% annual EPS growth through 2014 and 18% cash flow growth for the same period. In addition to current liquids transportation initiatives, ENB identified various platforms to fuel future growth (midstream, a re-entry into international investments, natural gas generation and electricity transmission) to give it - $30 billion of development opportunities. We continue to be impressed by the company’s ability to find new projects, and maintain our HOLD.
"While there may be some risk Enbridge could experience reduced earnings
and/or cash flow from the NEB’s final Alberta Clipper decision, our target
price reflects full earnings and cash flow."
The company closed Wednesday at $53.91, up slight to $0.02, or 0.04 percent. Canaccord has a price target of C$55 on them. In Toronto they closed at $54.50.
Wednesday, September 29, 2010
TransAtlantic Petroleum (Amex:TAT) Placed "Under Review" by Canaccord Genuity
TransAtlantic Petroleum (Amex:TAT) has had it price target and rating placed "under Review" by Canaccord Genuity.
Canaccord said, "TransAtlantic Petroleum has provided an operational update and has filed a free writing prospectus for an equity
financing for a minimum of US $50 million up to a maximum of $100 million in gross proceeds...We are placing our recommendation and target price UNDER REVIEW pending disclosure of the specific terms of the announced equity financing."
TransAtlantic says commitments have been received from investors to acquire 30,357,143 common shares in a registered direct offering at a purchase price of $2.80/share. That would generate about $85 million, which after fees and expenses, would come to about $80.6 million.
The stock closed Tuesday at $2.81, down $0.16, or 5.39 percent.
Canaccord said, "TransAtlantic Petroleum has provided an operational update and has filed a free writing prospectus for an equity
financing for a minimum of US $50 million up to a maximum of $100 million in gross proceeds...We are placing our recommendation and target price UNDER REVIEW pending disclosure of the specific terms of the announced equity financing."
TransAtlantic says commitments have been received from investors to acquire 30,357,143 common shares in a registered direct offering at a purchase price of $2.80/share. That would generate about $85 million, which after fees and expenses, would come to about $80.6 million.
The stock closed Tuesday at $2.81, down $0.16, or 5.39 percent.
Wednesday, September 15, 2010
Canaccord Reiterates "Buy" on TransGlobe (Nasdaq:TGA)
Canaccord Genuity reiterated its "Buy" on TransGlobe Energy (Nasdaq:TGA), citing several important elements to justify their ongoing confidence in the company.
"TransGlobe has no external funding requirements, a strong balance sheet and extensive resource upside potential in Egypt both through the application of fracture stimulating techniques at the company’s Arta Field and the expanding boundaries of the overall Nukhul Formation," said Canaccord.
Transglobe closed Tuesday at $7.86, down $0.05, or 0.63 percent.
Canaccord has a price target of C$10 on TransGlobe.
"TransGlobe has no external funding requirements, a strong balance sheet and extensive resource upside potential in Egypt both through the application of fracture stimulating techniques at the company’s Arta Field and the expanding boundaries of the overall Nukhul Formation," said Canaccord.
Transglobe closed Tuesday at $7.86, down $0.05, or 0.63 percent.
Canaccord has a price target of C$10 on TransGlobe.
Subscribe to:
Posts (Atom)
