JPMorgan took aim at companies with strong exposure to the Canadian oil sands in Alberta, with analyst Katherine Minyard initiating coverage on Cenovus Energy (NYSE:CVE), Nexen (NYSE:NXY), Talisman Energy NYSE:TLM), Canadian Natural Resources (NYSE:CNQ), Suncor Energy (NYSE:SU) and Husky Energy (TSE:HSE).
She started off Cenovus Energy, Nexen, and Talisman Energy with "Overweight" ratings. Canadian Natural Resources and Suncor Energy with "Neutral" ratings, and Husky Energy with an "Underweight" rating.
“We believe depth of resource base, production growth visibility and exposure to an increasingly important source of global oil supply make for an attractive value proposition in oil sands-rich Canadian oils,” Minyard said in a note to clients.
Minyard concedes her outlook on the sector is based on the ongoing support underlying oil prices. If they were to drop, the scenario for the above-mentioned companies in the short term could change significantly.
She concluded, “Although our near- and long-term oil price modeling assumptions do not call for prices to differ significantly from the current $81/barrel, significant or sustained weakness in the oil price would likely pressure share prices.”
Showing posts with label Husky Energy. Show all posts
Showing posts with label Husky Energy. Show all posts
Tuesday, October 26, 2010
Tuesday, September 7, 2010
BP (NYSE:BP) Acquires South China Sea Block from Devon (NYSE:DVN)
BP (NYSE:BP) has acquired a minority interest in a South China Sea block from Devon Energy Corp. (NYSE:DVN), buying a 40.82 percent interest in block 42/05.
Chevron Corp. (NYSE:CVX) is their partner in the deal, who bought the remaining 59.18 percent which gives them operating interest in the block.
It didn't bother China to give BP approval to take a stake in the deep-water block, which China's Cnooc Ltd. confirmed they did.
Devon has been divesting of assets outside of North America in order to focus its attention on its onshore assets in Canada and America.
Renewed interest in the South China Sea has grown since the discovery of trillions of cubic feet of natural gas reserves in 2006 by Husky Energy Inc. (TSE:HSE).
Chevron Corp. (NYSE:CVX) is their partner in the deal, who bought the remaining 59.18 percent which gives them operating interest in the block.
It didn't bother China to give BP approval to take a stake in the deep-water block, which China's Cnooc Ltd. confirmed they did.
Devon has been divesting of assets outside of North America in order to focus its attention on its onshore assets in Canada and America.
Renewed interest in the South China Sea has grown since the discovery of trillions of cubic feet of natural gas reserves in 2006 by Husky Energy Inc. (TSE:HSE).
Wednesday, July 28, 2010
Husky Energy (TSE:HSE) Disappoints Again, Misses Estimates
Husky Energy Inc (TSE:HSE) had another disappointing quarter, as they missed estimates again, while lowering production guidance.
Investors and analysts are starting to get frustrated with the company, as they've missed their own production guidance for six straight years. Some are openly wondering about their ability to see the near-term future and performance of the company.
Earnings came to C$266 million ($256 million), or 31 Canadian cents a share, for the second quarter, down from C$345 million, or 41 Canadian cents a share, for the same quarter last year.
New CEO Asim Ghosh unconvincingly said this about the company's performance and goals, “Husky’s business strategies have historically delivered strong results for shareholders and the company has a tremendous portfolio of assets to fuel mid to long-term growth...however, a key goal is delivering near-term production growth. We are rebalancing Husky’s portfolio to direct a measure of capital to low cost, high return projects to achieve this near-term goal while maintaining the integrity of our long-term objectives.”
The company primarily blamed the strength of the Canadian dollar in connection to decreasing the value of commodity prices, which had performed strong in the quarter, for their dismal numbers. They also used the poor weather in Western Canada as a reason for lower heavy oil production.
Since the latter part of September 2008, the share price of the company has gone nowhere, and there's nothing in this report to indicate that's going to change any time soon.
Investors and analysts are starting to get frustrated with the company, as they've missed their own production guidance for six straight years. Some are openly wondering about their ability to see the near-term future and performance of the company.
Earnings came to C$266 million ($256 million), or 31 Canadian cents a share, for the second quarter, down from C$345 million, or 41 Canadian cents a share, for the same quarter last year.
New CEO Asim Ghosh unconvincingly said this about the company's performance and goals, “Husky’s business strategies have historically delivered strong results for shareholders and the company has a tremendous portfolio of assets to fuel mid to long-term growth...however, a key goal is delivering near-term production growth. We are rebalancing Husky’s portfolio to direct a measure of capital to low cost, high return projects to achieve this near-term goal while maintaining the integrity of our long-term objectives.”
The company primarily blamed the strength of the Canadian dollar in connection to decreasing the value of commodity prices, which had performed strong in the quarter, for their dismal numbers. They also used the poor weather in Western Canada as a reason for lower heavy oil production.
Since the latter part of September 2008, the share price of the company has gone nowhere, and there's nothing in this report to indicate that's going to change any time soon.
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