Petrohawk Energy (NYSE:HK) has problems in the short term because of their high debt and margins being pressured, according to FBR Capital.
HBP drilling will continue to cause the company to struggle as a result in the short term.
FBR said, "We continue to remain fans of significant long-term asset value embedded within the Haynesville and Eagle Ford franchises. Near term, though, continued Haynesville drilling for HBP reasons despite margin squeeze and high (though manageable debt position) continues to give investors heartburn. Also, the Eagle Ford position, though highly prospective, still needs to mature, thereby exacerbating the funding gap issue. As such, we are reiterating our rating but are lowering our 12-month price target to $23/share to reflect a larger-than-expected funding gap."
Petrohawk closed Wednesday at 16.49, dropping $0.71, or 4.13 percent.
FBR maintains their "Outperform" rating on them, while Lazard Capital downgraded Petrohawk from "Buy" to "Hold." FBR has a price target of $20 on the energy company, dropping them from $23.
Showing posts with label Eagle Ford Shale. Show all posts
Showing posts with label Eagle Ford Shale. Show all posts
Thursday, November 4, 2010
Friday, October 29, 2010
Pioneer Natural Resources (NYSE:PXD) Should Enjoy Double-digit Growth Says Barclays (NYSE:BCS)
Pioneer Natural Resources (NYSE:PXD) should grow by double-digits for some time, says Barclays (NYSE:BCS), citing their exposure to Eagle ford shale and Spraberry Trend Field.
Barclays said, "Strong growth in the Spraberry Trend Field and from the emerging Eagle ford shale play should drive double-digit volume growth as well as margin expansion in 2011 and beyond. PXD trades at a premium to historical multiples of forward cash flow estimates but we feel the premium is justified by the prospects of accelerated cash flow growth.
"Higher projected 2011 cash flow (+$60mm) and an increased target multiple (to 7.5x 2011E PICF) each account for about half of the target price increase. PXD trades at a debt-adjusted multiple of 7.2 x mid-cycle estimates; a 13% premium to peer averages."
Barclays maintains an "Equalweight" oil and gas company. Pioneer closed Thursday at $69.18, losing $0.72, or 1.03 percent. Barclays has a price target of $72 on them, raising it from $65.
Barclays said, "Strong growth in the Spraberry Trend Field and from the emerging Eagle ford shale play should drive double-digit volume growth as well as margin expansion in 2011 and beyond. PXD trades at a premium to historical multiples of forward cash flow estimates but we feel the premium is justified by the prospects of accelerated cash flow growth.
"Higher projected 2011 cash flow (+$60mm) and an increased target multiple (to 7.5x 2011E PICF) each account for about half of the target price increase. PXD trades at a debt-adjusted multiple of 7.2 x mid-cycle estimates; a 13% premium to peer averages."
Barclays maintains an "Equalweight" oil and gas company. Pioneer closed Thursday at $69.18, losing $0.72, or 1.03 percent. Barclays has a price target of $72 on them, raising it from $65.
Monday, October 25, 2010
Newfield Exploration (NYSE:NFX) Maximizing Returns on Asset Base
Newfield Exploration Company (NYSE:NFX) had its "Outperform" rating maintained on them by FBR Capital, citing a deep and diverse asset base.
FBR said, "Recognition of depth and diversity of asset base allowing capital allocation flexibility, and thus maximization of returns, has been well rewarded, allowing the stock to appreciate 18% during the third quarter compared to an average 8% for the peer group. Future absolute and relative outperformance/multiple expansion, successful Alberta Basin Bakken and Eagle Ford drilling and/or evidence of ability to pull forward cash flows faster (further acceleration in Monument Butte, Bakken, or other) than currently modeled is needed."
Newfield closed Friday at $59.11, gaining $0.20, or 0.34 percent. FBR raised the price target on Newfield from $65 to $72.
FBR said, "Recognition of depth and diversity of asset base allowing capital allocation flexibility, and thus maximization of returns, has been well rewarded, allowing the stock to appreciate 18% during the third quarter compared to an average 8% for the peer group. Future absolute and relative outperformance/multiple expansion, successful Alberta Basin Bakken and Eagle Ford drilling and/or evidence of ability to pull forward cash flows faster (further acceleration in Monument Butte, Bakken, or other) than currently modeled is needed."
Newfield closed Friday at $59.11, gaining $0.20, or 0.34 percent. FBR raised the price target on Newfield from $65 to $72.
Monday, October 11, 2010
Chesapeake (NYSE:CHK) Gets $2.16 Billion Investment from CNOOC (NYSE:CEO)
The leading offshore oil production company in China, CNOOC Ltd. (NYSE:CEO), has made a deal with Chesapeake Energy Corp. (NYSE:CHK) to buy stake in the oil and gas Eagle Ford Shale project of the company for $2.16 billion.
Vice Chairman and Chief Executive Officer of CNOOC, Yang Hua, said, "The cooperation with Chesapeake in shale oil and natural gas is consistent with our value-driven overseas development strategy. The execution of this project will benefit CNOOC Limited's long term production and reserves growth and should produce considerable returns for our shareholders."
Chesapeake’s Chief Executive Officer Aubrey K. McClendon responded, "This transaction will provide the capital necessary to accelerate drilling of this large domestic oil and natural gas resource, resulting in a reduction of our country’s oil imports over time, the creation of thousands of high-paying jobs in the U.S. and in the payment of very significant local, state and federal taxes."
Concerning Eagle Ford Shale, CNOOC will acquire a 33.3 percent undivided interest in the 600,000 leashold acres for oil and gas in Texas for $1.08 billion.
The other 1.08 billion will be used to fund 75 percent of the drilling and completion costs of Chesapeake in the project.
Shares of both companies moved up on the news, with Chesapeake reaching $23.62, gaining $0.57, or 2.47 percent at 11:31 AM EDT. CNOOC surged to their highest level in three years, surging to $214.86, increasing $5.25, or 2.50 percent.
Vice Chairman and Chief Executive Officer of CNOOC, Yang Hua, said, "The cooperation with Chesapeake in shale oil and natural gas is consistent with our value-driven overseas development strategy. The execution of this project will benefit CNOOC Limited's long term production and reserves growth and should produce considerable returns for our shareholders."
Chesapeake’s Chief Executive Officer Aubrey K. McClendon responded, "This transaction will provide the capital necessary to accelerate drilling of this large domestic oil and natural gas resource, resulting in a reduction of our country’s oil imports over time, the creation of thousands of high-paying jobs in the U.S. and in the payment of very significant local, state and federal taxes."
Concerning Eagle Ford Shale, CNOOC will acquire a 33.3 percent undivided interest in the 600,000 leashold acres for oil and gas in Texas for $1.08 billion.
The other 1.08 billion will be used to fund 75 percent of the drilling and completion costs of Chesapeake in the project.
Shares of both companies moved up on the news, with Chesapeake reaching $23.62, gaining $0.57, or 2.47 percent at 11:31 AM EDT. CNOOC surged to their highest level in three years, surging to $214.86, increasing $5.25, or 2.50 percent.
Thursday, October 7, 2010
Plains Exploration (NYSE:PXP) Acquires More Eagle Ford Shale Property
Backing up its stated strategy of investing in more onshore assets, Plains Exploration & Production (NYSE:PXP) announced it has acquired property in Eagle Ford shale in Texas.
Plains spend $578 million for the acquisition, and may spend more in the area, or possibly in the Bakken Shale area of North Dakota, although the major moves the company has made are for the most part completed it said.
CEO James Flores said, "The Eagle Ford transaction adds a high-quality oil asset with substantial reserve and oil production growth opportunities."
The company added there is a lot of interest in their Gulf of Mexico offshore assets, which they have offered for sale.
Plains spend $578 million for the acquisition, and may spend more in the area, or possibly in the Bakken Shale area of North Dakota, although the major moves the company has made are for the most part completed it said.
CEO James Flores said, "The Eagle Ford transaction adds a high-quality oil asset with substantial reserve and oil production growth opportunities."
The company added there is a lot of interest in their Gulf of Mexico offshore assets, which they have offered for sale.
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