Hess Corp. (NYSE:HES) enlarged its holdings in the Bakken shale, acquiring an additional 167,000 acres at a bargain price of $4,500 an acre.
"HES agreed to acquire 167,000 net acres in the Bakken shale play from privately held TRZ Energy for $1.05 billion in cash, or an attractive price of -$4,500/acre after adjusting for 4.4 MBoed of production. This is well below the $8,500/acre price paid by WMB last week, the $5,000/acre paid for AEZ’s acreage, and other recent deal metrics of $5,500-$6,500/acre. The transaction will be funded by HES’ $2.4 billion cash balance at the end of 3Q, and is expected to close by year-end," said UBS.
UBS reiterated their "Buy" rating on Hess, which was trading at $68.86, losing $0.83, or 1.19 percent at 12:32 PM EST. UBS has a price target of $78 on Hess, increasing it from $76.
Showing posts with label Price Target. Show all posts
Showing posts with label Price Target. Show all posts
Tuesday, November 23, 2010
UBS (NYSE:UBS) Reiterates "Neutral" Rating on Willbros (NYSE:WG)
UBS (NYSE:UBS) sees challenges ahead for Willbros Group (NYSE:WG), as there are little catalysts to boost the company in the short term. Consequently they maintain their "Neutral" rating on them at this time.
UBS said, "WG reduced 2010 rev guidance to $1.1-$1.2b, from $1.2-$1.3b, due to weak T&D. EPS guidance was raised to $0.25-$0.30, but includes the earnout contingency reversal benefit we calculate at $0.96. Overall, the FEP execution was even better than we expected, but the weak T&D segment was disappointing. The Downstream segment is slowly regaining profitability, but the market is still challenging."
Willbros closed Monday at $6.99, dropping $0.10, or 1.41 percent. UBS lowered their price target on them from $9 to $7.75.
UBS said, "WG reduced 2010 rev guidance to $1.1-$1.2b, from $1.2-$1.3b, due to weak T&D. EPS guidance was raised to $0.25-$0.30, but includes the earnout contingency reversal benefit we calculate at $0.96. Overall, the FEP execution was even better than we expected, but the weak T&D segment was disappointing. The Downstream segment is slowly regaining profitability, but the market is still challenging."
Willbros closed Monday at $6.99, dropping $0.10, or 1.41 percent. UBS lowered their price target on them from $9 to $7.75.
Tuesday, November 9, 2010
Oil States (NYSE:OIS) Expanding on Several Fronts
Oil States International Inc. (NYSE:OIS) had excellent results in the third quarter, and has the foundation laid to launch a successful expansion strategy in multiple areas.
"Solid 3Q results across all segments drove the 3Q upside surprise. Looking ahead, we expect strength in North America, growth in the Oil Sands Accommodations business, the addition of "The MAC" in Australia and rising offshore activity to bolster earnings and lead to multiple expansion," said Jefferies.
Oil States closed at $54.71, gaining $1.24, or 2.32 percent. Jefferies raised their price target on them from $63 to $66, while maintaining their "Buy" rating.
"Solid 3Q results across all segments drove the 3Q upside surprise. Looking ahead, we expect strength in North America, growth in the Oil Sands Accommodations business, the addition of "The MAC" in Australia and rising offshore activity to bolster earnings and lead to multiple expansion," said Jefferies.
Oil States closed at $54.71, gaining $1.24, or 2.32 percent. Jefferies raised their price target on them from $63 to $66, while maintaining their "Buy" rating.
Friday, November 5, 2010
Citigroup (NYSE:C) Raises Devon Energy (NYSE:DVN) PT
Citigroup (NYSE:C) raised the price target they have on Devon Energy (NYSE:DVN), while maintaining a "Hold" rating on the energy company.
Earnings per share for the full year was also lowered from $5.76 to $5.73 for 2010, and from $5.23 to $5.96 for 2011.
Devon rose with the rest of the commodity and energy sector Thursday, closing the trading day at $69.60, gaining $1.38, or 2.02 percent.
Citigroup raised their price target on Devon from $68 to $72.
Earnings per share for the full year was also lowered from $5.76 to $5.73 for 2010, and from $5.23 to $5.96 for 2011.
Devon rose with the rest of the commodity and energy sector Thursday, closing the trading day at $69.60, gaining $1.38, or 2.02 percent.
Citigroup raised their price target on Devon from $68 to $72.
Thursday, November 4, 2010
Devon Energy (NYSE:DVN) Undervalued on Onshore Resource Plays Says Ticonderoga
Devon Energy (NYSE:DVN) is undervalued in almost all the key valuation metrics against its peers, and Ticonderoga Securities said they're maintaining their "Buy" rating on them as a result.
"We view DVN as an undervalued asset base that should generate better results given the shift in focus toward onshore unconventional resource plays. And with $3.6B of cash on hand currently (excluding the expected $3.2B close of Brazilian assets), the company is in a strong financial position as well. The company’s shares are trading below peers on almost all relevant valuation metrics, including at a steep discount to our $118.00 NAV. The resulting P/NAV of 66% compares with a group median of 78% for our E&P universe. DVN’s EV/2010 EBITDA is 5.0 compared with 7.1 for the group and its P/CF is 5.9 compared with 6.4 for the group, said Ticonderoga.
"Today’s news (earnings report) is positive and supports our Buy rating, and should please investors who have been looking for consistent results/growth from DVN quarter-to-quarter. We would look toward the year-end reserve report for signs of better organic growth and improving finding cost as an indication that the company’s resource strategy is working long-term. We don’t believe the sharp discount to peers is justified, and would continue to look for periods of weakness when the stock/group trades down to accumulate shares."
Devon surged to close at $68.22 Wednesday, gaining $2.29, or 3.47 percent. Ticonderoga has a price target of $78 on Devon.
"We view DVN as an undervalued asset base that should generate better results given the shift in focus toward onshore unconventional resource plays. And with $3.6B of cash on hand currently (excluding the expected $3.2B close of Brazilian assets), the company is in a strong financial position as well. The company’s shares are trading below peers on almost all relevant valuation metrics, including at a steep discount to our $118.00 NAV. The resulting P/NAV of 66% compares with a group median of 78% for our E&P universe. DVN’s EV/2010 EBITDA is 5.0 compared with 7.1 for the group and its P/CF is 5.9 compared with 6.4 for the group, said Ticonderoga.
"Today’s news (earnings report) is positive and supports our Buy rating, and should please investors who have been looking for consistent results/growth from DVN quarter-to-quarter. We would look toward the year-end reserve report for signs of better organic growth and improving finding cost as an indication that the company’s resource strategy is working long-term. We don’t believe the sharp discount to peers is justified, and would continue to look for periods of weakness when the stock/group trades down to accumulate shares."
Devon surged to close at $68.22 Wednesday, gaining $2.29, or 3.47 percent. Ticonderoga has a price target of $78 on Devon.
Magellan Midstream (NYSE:MMP) Gasoline and Diesel Volumes Increasing
Magellan Midstream (NYSE:MMP) performed close in line to estimates, and UBS (NYSE:UBS) maintains their "Buy" on them, saying gasoline and diesel volumes exceeded expectations.
UBS said, "Excluding non-cash items, MMP achieved 3Q10 EPU of $0.58 versus UBS’ and consensus’ $0.61/$0.55 estimates, respectively. Despite integrity testing in the ammonia pipeline costing $7.6mm (-$0.07/unit), improving gasoline and diesel volumes combined with the BP acquisition performing ahead of expectations drove distributable cash flow of $86mm, roughly inline with UBS’ $87mm estimate."
Product demand should continue to grow in going forward.
Magellan Midstream closed Wednesday at $54.39, dropping $0.19, or 0.34 percent. UBS has a price target of $61 on them, raising it from $59.
UBS said, "Excluding non-cash items, MMP achieved 3Q10 EPU of $0.58 versus UBS’ and consensus’ $0.61/$0.55 estimates, respectively. Despite integrity testing in the ammonia pipeline costing $7.6mm (-$0.07/unit), improving gasoline and diesel volumes combined with the BP acquisition performing ahead of expectations drove distributable cash flow of $86mm, roughly inline with UBS’ $87mm estimate."
Product demand should continue to grow in going forward.
Magellan Midstream closed Wednesday at $54.39, dropping $0.19, or 0.34 percent. UBS has a price target of $61 on them, raising it from $59.
Citigroup (NYSE:C) Upgrades K-Sea (NYSE:KSP), Lowers Price Target
Although K-Sea Transportation Partners LP (NYSE:KSP) handily surpassed expectations in their latest quarterly report, it's hard to see anything to get excited about, although Citigroup (NYSE:C) upgraded the marine transportation company from "Sell" to "Hold."
Chief Executive Officer Timothy Casey said in a statement recently, "We benefited this past quarter from the clean-up work in the Gulf of Mexico, which is now essentially over, and the ongoing contribution from our efficiency efforts."
With that scenario in mind, it's difficult to understand the upgrade.
K-Sea was trading at $5.37, losing $0.19, or 3.42 percent as of 3:18 PM EDT Wednesday. Citigroup lowered their price target from $7 to $6 on K-Sea.
Chief Executive Officer Timothy Casey said in a statement recently, "We benefited this past quarter from the clean-up work in the Gulf of Mexico, which is now essentially over, and the ongoing contribution from our efficiency efforts."
With that scenario in mind, it's difficult to understand the upgrade.
K-Sea was trading at $5.37, losing $0.19, or 3.42 percent as of 3:18 PM EDT Wednesday. Citigroup lowered their price target from $7 to $6 on K-Sea.
Brigham Exploration (Nasdaq:BEXP) Increases Wells, Production
Citing the increased number of wells and beating production estimates, Global Hunter Securities likes the growth prospects of Brigham Exploration Co. (Nasdaq:BEXP), raising their price target on them and maintaining a "Buy."
"BEXP increased its fourth quarter guidance to 10.2-10.8 Mboped with 77% of volumes now oil. We are published at 10 Mboped for 4Q10 but moving volumes up to the top end of the range causing our previous respective 4Q10 EPS and CFPS of $0.11 and $0.25 to $0.12 and $0.37, as well as increasing our total year 2010 EPS and CFPS estimates from $0.42 and $1.02 to $0.52 and $1.18, respectively. BEXP is continuing the trend in 2011 with the addition of seven wells to our model resulting in our production estimates climbing from 13,927 Boepd to 16,134 Boepd prompting an increase in EPS and CFPS estimates from $0.70 and $1.98 to $0.87 and $2.35, respectively. Please note that full year 2011 EBITDA is increasing by $41.3 million," said Global.
Brigham closed Wednesday at $22, rising $0.83, or 3.92 percent. Global has a price target of $29.50 on them.
"BEXP increased its fourth quarter guidance to 10.2-10.8 Mboped with 77% of volumes now oil. We are published at 10 Mboped for 4Q10 but moving volumes up to the top end of the range causing our previous respective 4Q10 EPS and CFPS of $0.11 and $0.25 to $0.12 and $0.37, as well as increasing our total year 2010 EPS and CFPS estimates from $0.42 and $1.02 to $0.52 and $1.18, respectively. BEXP is continuing the trend in 2011 with the addition of seven wells to our model resulting in our production estimates climbing from 13,927 Boepd to 16,134 Boepd prompting an increase in EPS and CFPS estimates from $0.70 and $1.98 to $0.87 and $2.35, respectively. Please note that full year 2011 EBITDA is increasing by $41.3 million," said Global.
Brigham closed Wednesday at $22, rising $0.83, or 3.92 percent. Global has a price target of $29.50 on them.
Wednesday, November 3, 2010
Hercules Offshore (Nasdaq:HERO) International Earnings Pressuring Company
Hercules Offshore, Inc. (Nasdaq:HERO) will probably have its international earnings pressure profits going forward because of the rolling over of contract to existing market rates, according to FBR Capital.
"We are introducing our 2012 estimates (0.75), which are meaningfully lower than our 2011 estimates due to lower international earnings as contracts roll over to current market rates. We maintain our Market Perform rating as we view HERO's risk-reward profile as roughly balanced. The company has the optionality from improvement in the shallow water GOM activity and de-leveraging," said FBR.
Hercules, which offers shallow-water drilling and marine services to the oil and natural gas exploration and production industry, closed Tuesday at $2.42, gaining $0.06, or 2.54 percent. FBR has a price target of $3.50 on them.
"We are introducing our 2012 estimates (0.75), which are meaningfully lower than our 2011 estimates due to lower international earnings as contracts roll over to current market rates. We maintain our Market Perform rating as we view HERO's risk-reward profile as roughly balanced. The company has the optionality from improvement in the shallow water GOM activity and de-leveraging," said FBR.
Hercules, which offers shallow-water drilling and marine services to the oil and natural gas exploration and production industry, closed Tuesday at $2.42, gaining $0.06, or 2.54 percent. FBR has a price target of $3.50 on them.
Noble Corporation (NYSE:NE) Has Solid Balance of Shallow, Deepwater Markets Says FBR
Liking the balanced exposure to shallow and deepwater markets, FBR Capital said they're maintaining their "Outperform" on Noble Corporation (NYSE:NE), although they're lowering the earnings per share estimates based on the Pemex contract extension.
FBR said, "We are lowering our EPS estimates to $0.53, $4.00, and $4.95 from $0.54, $4.15, and $5.10 for 4Q10, 2011, and 2012, respectively. Our new rates reflect the recent contract extension rates that Noble Corp. has received from Pemex...We are maintaining our rating for NE based on the company's balanced exposure to the shallow and deepwater markets and attractive valuation. The company has a strong backlog and ample liquidity to grow even after adding four modern deepwater units in the Bully and Globetrotter rigs."
Noble closed Tuesday at $34.46, gaining $0.28, or 0.82 percent. FBR has a price target of $42 on the drilling service provider.
FBR said, "We are lowering our EPS estimates to $0.53, $4.00, and $4.95 from $0.54, $4.15, and $5.10 for 4Q10, 2011, and 2012, respectively. Our new rates reflect the recent contract extension rates that Noble Corp. has received from Pemex...We are maintaining our rating for NE based on the company's balanced exposure to the shallow and deepwater markets and attractive valuation. The company has a strong backlog and ample liquidity to grow even after adding four modern deepwater units in the Bully and Globetrotter rigs."
Noble closed Tuesday at $34.46, gaining $0.28, or 0.82 percent. FBR has a price target of $42 on the drilling service provider.
Baker Hughes (NYSE:BHI) Needs to Improve International Margins Says FBR
Commenting on the performance of Baker Hughes (NYSE:BHI) over the next year, FBR Capital said the value in the company will be their ability to increase margins at the international level.
FBR said, "The acquisition of BJ Services is resulting in strong North American results. However, we believe the key to investors recognizing value over the next several quarters is execution on international margin improvement. While we believe sustainably higher international E&P activity should increase both volume and price over the next few years, we believe Baker Hughes' high U.S. frac exposure makes it a less favorable way to play the cyclical recovery in international oil investment. Baker Hughes is also more heavily levered to offshore markets than peers and thus sentiment could hurt the company as uncertainty remains around the timing and magnitude of a recovery in spending in the GOM...We are increasing our 2011 EPS to $3.25 and are introducing our 2012 EPS estimate at $3.75."
FBR said they're maintaining a "Market Perform" rating on the company.
Baker Hughes closed Tuesday at $49.28, gaining $0.91, or 1.88 percent. FBR raised their price target on them from $48 to $56.
FBR said, "The acquisition of BJ Services is resulting in strong North American results. However, we believe the key to investors recognizing value over the next several quarters is execution on international margin improvement. While we believe sustainably higher international E&P activity should increase both volume and price over the next few years, we believe Baker Hughes' high U.S. frac exposure makes it a less favorable way to play the cyclical recovery in international oil investment. Baker Hughes is also more heavily levered to offshore markets than peers and thus sentiment could hurt the company as uncertainty remains around the timing and magnitude of a recovery in spending in the GOM...We are increasing our 2011 EPS to $3.25 and are introducing our 2012 EPS estimate at $3.75."
FBR said they're maintaining a "Market Perform" rating on the company.
Baker Hughes closed Tuesday at $49.28, gaining $0.91, or 1.88 percent. FBR raised their price target on them from $48 to $56.
Tuesday, November 2, 2010
DTE Energy (NYSE:DTE) Trading Continues to be Major Concern Says Barclays (NYSE:BCS)
Although DTE Energy (NYSE:DTE) had a decent quarter, Barclays (NYSE:BCS) sees trading to continue to be one of their major concerns.
"DTE reported solid Q3 EPS and tightened their guidance range for 2010: DTE reported Q3'10 EPS of $0.96, in-line with the consensus estimate, and tightened their 2010 guidance range to $3.50-$3.70 from $3.45-$3.80. Rate relief at MichCon, tight cost controls at both utilities, and meaningful improvements at the P&I segment helped results, while another challenging quarter at trading was the biggest concern," said Barclays.
"We are tweaking our '10-'12 estimates to $3.62/$3.72/$3.88 from $3.67/$3.74/$3.92 and adjusting our target to $52. We are embedding $56M in earnings at P&I, flat performance at midstream, and a return to historical contributions by trading of $45M and assuming that the utilities will be able to earn their authorized 11% ROEs."
DTE closed Monday at $45.67, dropping $1.09, or 2.33 percent. Barclays increased their price target from $50 to $52, while maintaining their "Equalweight" on them.
"DTE reported solid Q3 EPS and tightened their guidance range for 2010: DTE reported Q3'10 EPS of $0.96, in-line with the consensus estimate, and tightened their 2010 guidance range to $3.50-$3.70 from $3.45-$3.80. Rate relief at MichCon, tight cost controls at both utilities, and meaningful improvements at the P&I segment helped results, while another challenging quarter at trading was the biggest concern," said Barclays.
"We are tweaking our '10-'12 estimates to $3.62/$3.72/$3.88 from $3.67/$3.74/$3.92 and adjusting our target to $52. We are embedding $56M in earnings at P&I, flat performance at midstream, and a return to historical contributions by trading of $45M and assuming that the utilities will be able to earn their authorized 11% ROEs."
DTE closed Monday at $45.67, dropping $1.09, or 2.33 percent. Barclays increased their price target from $50 to $52, while maintaining their "Equalweight" on them.
Oceaneering International (NYSE:OII) Strongly Positioned for Deepwater Drilling says Barclays (NYSE:BCS)
Contrary to the perception created by media reports because of the BP (NYSE:BP) deepwater oil disaster, offshore drilling in deep waters remains vibrant, and is in fact growing, and Oceaneering International (NYSE:OII) is strongly positioned to profit from that reality over the next decade says Barclays (NYSE:BCS).
There has been a plethora of deepwater deals cut in the midst of the BP disaster, underscoring the demand for oil which won't be hindered by any type of accident, even one as large as BP's.
Barclays said, "We believe that Oceaneering International is well positioned to benefit from the secular growth in deep-water drilling and subsea completions that we forecast over the coming decade. Given its unique franchise and long-term visibility in its markets, we believe Oceaneering should trade at a meaningful premium to the oil service group."
"We are increasing our earnings per share estimates for 2011 and 2012 to $3.80 and $4.40 from $3.45 and $4.05. The company's guidance for 2011 is $3.45 to $3.75."
Oceaneering International soared on Monday, closing at $63.77, gaining $1.90, or 3.07 percent. Barclays raised their price target on Oceaneering from $58 to $70. They maintain an "Overweight" on them.
There has been a plethora of deepwater deals cut in the midst of the BP disaster, underscoring the demand for oil which won't be hindered by any type of accident, even one as large as BP's.
Barclays said, "We believe that Oceaneering International is well positioned to benefit from the secular growth in deep-water drilling and subsea completions that we forecast over the coming decade. Given its unique franchise and long-term visibility in its markets, we believe Oceaneering should trade at a meaningful premium to the oil service group."
"We are increasing our earnings per share estimates for 2011 and 2012 to $3.80 and $4.40 from $3.45 and $4.05. The company's guidance for 2011 is $3.45 to $3.75."
Oceaneering International soared on Monday, closing at $63.77, gaining $1.90, or 3.07 percent. Barclays raised their price target on Oceaneering from $58 to $70. They maintain an "Overweight" on them.
Monday, November 1, 2010
Cenovus'(NYSE: CVE) Downstream Will Weigh on Them Says TD Newcrest
According to TD Newcrest, the downstream of Cenovus Energy Inc (NYSE:CVE) will weigh the company down, and they downgraded them from "Buy" to "Hold" based on that assumption.
TD said, "Of note, our 2010 CFPS estimate is now marginally higher since we were already at the low-end of the new target range. Our 2011 CFPS estimate also increases marginally (drives 75% of the EV/DACF component of our target price calculation) but since we reduced our target multiple to 8.5x from 9x to reflect current peer group multiples, our target price falls to $32/share. We note that 2010 guidance had not been updated since April 2010. With a target return of 15%, we are concurrently downgrading to HOLD."
Cenvus closed Friday at $27.82. losing $0.35, or 0.89 percent. They lowered their price target from C$33 to C$32 on the company.
TD said, "Of note, our 2010 CFPS estimate is now marginally higher since we were already at the low-end of the new target range. Our 2011 CFPS estimate also increases marginally (drives 75% of the EV/DACF component of our target price calculation) but since we reduced our target multiple to 8.5x from 9x to reflect current peer group multiples, our target price falls to $32/share. We note that 2010 guidance had not been updated since April 2010. With a target return of 15%, we are concurrently downgrading to HOLD."
Cenvus closed Friday at $27.82. losing $0.35, or 0.89 percent. They lowered their price target from C$33 to C$32 on the company.
Key Energy (NYSE:KEG) Outlooks Should Improve After Weak Quarter
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.
"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.
LINN Energy's (Nasdaq:LINE) Hedge Strategy a Winner Says UBS (NYSE:UBS)
Citing their hedging strategy, UBS (NYSE:UBS) raised their price target on LINN Energy (Nasdaq:LINE) while maintaining their "Buy" rating on them.
"Signaling confidence in LINE’s operations and balance sheet strength as well as its ability to capitalize on growth initiatives, mgmt lifted the 3Q distribution -5%, to $0.66, its first increase since 1Q08. In addition, mgmt added to hedge positions and now estimates that -100% of planned natgas production is hedged through 2015, while planned oil production is hedged -100% through 2013 and 70% in 2014-15. We applaud the move to secure price protection and note oil hedges were added well above our forecasts. We also highlight LINE’s extensive use of put contracts," UBS said.
LINN closed Friday at $34.99, gaining $0.56, or 1.63 percent. They raised their price target from $36 to $38.
Concerning EPU for 2010, they cut that from $1.53 to $1.47.
"Signaling confidence in LINE’s operations and balance sheet strength as well as its ability to capitalize on growth initiatives, mgmt lifted the 3Q distribution -5%, to $0.66, its first increase since 1Q08. In addition, mgmt added to hedge positions and now estimates that -100% of planned natgas production is hedged through 2015, while planned oil production is hedged -100% through 2013 and 70% in 2014-15. We applaud the move to secure price protection and note oil hedges were added well above our forecasts. We also highlight LINE’s extensive use of put contracts," UBS said.
LINN closed Friday at $34.99, gaining $0.56, or 1.63 percent. They raised their price target from $36 to $38.
Concerning EPU for 2010, they cut that from $1.53 to $1.47.
Southwestern Energy (NYSE:SWN) Capex Expected to Plunge
Citing low natural gas prices and dropping three rigs, UBS (NYSE:UBS) has slashed their price target on Southwestern Energy (NYSE:SWN).
"We believe the combo of SWN dropping 3 rigs and low gas prices is a signal it will reduce 2011 capex vs 2010. Thus, we lowered our ‘10 capex by - $100 MM to $2.0 bn, and 2011-12 capex by - $400 MM/year to $1.9 bn & $2.3 bn, respectively. As a result, we reduced our production growth forecast to 23% and 25% in 2011-‘12, (vs. - 30% per annum previously) and lowered our 2011-2012 EPS/CFPS to $2.15/$5.50 and $3.10/$7.45 from $2.20/
$5.70 and $3.25/$7.95, respectively," said UBS.
Southwestern closed on Friday at $33.84, gaining $0.20, or 0.59 percent. UBS lowered their price target on them from $56 to $45.
"We believe the combo of SWN dropping 3 rigs and low gas prices is a signal it will reduce 2011 capex vs 2010. Thus, we lowered our ‘10 capex by - $100 MM to $2.0 bn, and 2011-12 capex by - $400 MM/year to $1.9 bn & $2.3 bn, respectively. As a result, we reduced our production growth forecast to 23% and 25% in 2011-‘12, (vs. - 30% per annum previously) and lowered our 2011-2012 EPS/CFPS to $2.15/$5.50 and $3.10/$7.45 from $2.20/
$5.70 and $3.25/$7.95, respectively," said UBS.
Southwestern closed on Friday at $33.84, gaining $0.20, or 0.59 percent. UBS lowered their price target on them from $56 to $45.
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.
Friday, October 29, 2010
Nabors Industries (NYSE:NBR) Lowers Internationa Guidance, Higher Taxes Remain Concern
Citing lower international guidance from Nabors Industries (NYSE:NBR), UBS (NYSE:UBS) said they're maintaining their "Neutral" rating on the company.
UBS said, "We are raising our 2011 EPS estimate by 11% to $1.70 from $1.53 reflecting 25% accretion from the Superior deal. However, the increase was partially offset by lower international guidance and higher taxes...We
continue our Neutral rating on Nabors. The company will benefit from its 20% exposure to pressure pumping near-term, as well as the ultimate sale of its E&P businesses. However, we believe there is risk for a flat to declining North American rig count in 2011 and prefer to sit on the sidelines until we begin to see the rig count roll over."
Nabors closed Thursday at $20.30, losing $0.22, or 1.07 percent. UBS increased their price target on the land drilling contractor from $19 to $22.
UBS said, "We are raising our 2011 EPS estimate by 11% to $1.70 from $1.53 reflecting 25% accretion from the Superior deal. However, the increase was partially offset by lower international guidance and higher taxes...We
continue our Neutral rating on Nabors. The company will benefit from its 20% exposure to pressure pumping near-term, as well as the ultimate sale of its E&P businesses. However, we believe there is risk for a flat to declining North American rig count in 2011 and prefer to sit on the sidelines until we begin to see the rig count roll over."
Nabors closed Thursday at $20.30, losing $0.22, or 1.07 percent. UBS increased their price target on the land drilling contractor from $19 to $22.
Hercules Offshore (Nasdaq:HERO) EPS Estimates Lowered for 2011
Hercules Offshore, Inc. (Nasdaq:HERO) faces a number of challenges going forward, even though their third-quarter results beat expectations, although they were fairly low to begin with.
Global Hunter said, "HERO reported a 3Q EPS (loss) of ($0.13), ahead of our expectations of ($0.20) and consensus at ($0.17). With revenue largely in line ($168MM vs $170MM exp), HERO beat our expectations on costs ($124MM vs $129MM exp), as well as D&A and tax benefit. However, near-term concerns loom given the potential for a covenant breach, a US jackup slowdown with low/mid $3 gas and lower international dayrates. We are trimming our 2011 EPS estimate to ($0.40) from a ($0.28) and lowering our price target to $3.10. Given meaningful upside still, we reiterate our rating."
Global maintained their "Buy" on Hercules, although lowering their price target from $3.60 to $3.10. The oil and gas services company closed at $2.31, dropping $0.07, or 2.94 percent.
Global Hunter said, "HERO reported a 3Q EPS (loss) of ($0.13), ahead of our expectations of ($0.20) and consensus at ($0.17). With revenue largely in line ($168MM vs $170MM exp), HERO beat our expectations on costs ($124MM vs $129MM exp), as well as D&A and tax benefit. However, near-term concerns loom given the potential for a covenant breach, a US jackup slowdown with low/mid $3 gas and lower international dayrates. We are trimming our 2011 EPS estimate to ($0.40) from a ($0.28) and lowering our price target to $3.10. Given meaningful upside still, we reiterate our rating."
Global maintained their "Buy" on Hercules, although lowering their price target from $3.60 to $3.10. The oil and gas services company closed at $2.31, dropping $0.07, or 2.94 percent.
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