Profits for the second quarter will surpass the first quarter, according to Chevron Corp. (CVX), citing better margins from its refining operations.
Refining margins climbed higher than the previous quarter, rising to $4 a barrel to $24.89, while West Coast margins rose to $21.32 a barrel
Oil and gas production in the U.S. also improved for the quarter, jumping an average of 665,000 barrels per day during April and May, up from the 651,000 barrels per day average in the first quarter. The increase was largely a result of increased production in the Gulf of Mexico.
Globally oil equivalent production dropped from 2.63 million bpd in the first quarter to 2.62 million bpd in the latest quarter. That is falling below it projected average for 2012 of 2.68 million bpd.
The declining global production was the consequence of the ongoing "shut-in of production at the Frade field in Brazil and planned maintenance in Kazakhstan contributed to the majority of the decline," said the energy giant.
A report will be released next week by Brazil's oil regulator on the causes of the oil spill which shut down Frade since March. That lowered Chevron's production by 30,000 bpd.
Chevron closed Wednesday at $104.85, up $0.97, or 0.93 percent.
Showing posts with label Quarterly Results. Show all posts
Showing posts with label Quarterly Results. Show all posts
Wednesday, July 11, 2012
Wednesday, February 8, 2012
BP (BP) Earnings Appear Under Pressure for 2012
BP (NYSE:BP) had a couple of analysts express concern over the performance of the company in 2012, pressuring the stock in early trading.
Jefferies (NYSE:JEF) said the oil giant is unlikely to boost production before 2014, which will probably mean earnings estimates will be lower than projected. They also cited higher tax rates and charges as another factor in the earnings performance of BP.
Consequently, Jefferies cut its earnings estimate on BP from $1.24 a share to $1.20 a share. For 2013, it raised its EPS estimate from 94 cents a share to 95 cents a share. Even so, the brokerage reiterated its "Buy" rating on the energy company.
Societe Generale downgraded BP on Wednesday from a "Buy" rating to a "Hold" rating, citing uncertainties surrounding legal liabilities as the Macondo trial date of February 27 approaches.
"The key risk is the start of the Macondo trial on February 27. The impossibility of 'calling' the legal outcome, leads us tactically to a hold rating, following a year of outperformance," the analysts said.
Societe Generale also noted that BP will be the last entity to offer its evidence, meaning the news cycle will probably be negative in the early part of the trial, suggesting pressure on the stock.
Possibly in anticipation of this, BP boosted its dividend to a quarterly rate of 8 cents a share after a solid quarter, where the earnings of the company rose to $7.69 billion on revenue of $96.3 billion.
BP was trading at $46.59, falling $0.01, or 0.02 percent, as of 11:10 AM EST.
Jefferies (NYSE:JEF) said the oil giant is unlikely to boost production before 2014, which will probably mean earnings estimates will be lower than projected. They also cited higher tax rates and charges as another factor in the earnings performance of BP.
Consequently, Jefferies cut its earnings estimate on BP from $1.24 a share to $1.20 a share. For 2013, it raised its EPS estimate from 94 cents a share to 95 cents a share. Even so, the brokerage reiterated its "Buy" rating on the energy company.
Societe Generale downgraded BP on Wednesday from a "Buy" rating to a "Hold" rating, citing uncertainties surrounding legal liabilities as the Macondo trial date of February 27 approaches.
"The key risk is the start of the Macondo trial on February 27. The impossibility of 'calling' the legal outcome, leads us tactically to a hold rating, following a year of outperformance," the analysts said.
Societe Generale also noted that BP will be the last entity to offer its evidence, meaning the news cycle will probably be negative in the early part of the trial, suggesting pressure on the stock.
Possibly in anticipation of this, BP boosted its dividend to a quarterly rate of 8 cents a share after a solid quarter, where the earnings of the company rose to $7.69 billion on revenue of $96.3 billion.
BP was trading at $46.59, falling $0.01, or 0.02 percent, as of 11:10 AM EST.
Friday, November 5, 2010
Apache (NYSE:APA) Soars as BP (NYSE:BP), Mariner (NYSE:ME) Expansion Deals Near Completion
Apache Corp. (NYSE:APA) closed the part of their deal with BP (NYSE:BP) for their oil and gas assets in Egypt, while are set to also close their acquisition of Mariner Energy Inc. (NYSE:ME) once shareholders vote on Wednesday on whether or not to approve the deal, which is valued at $2.6 billion.
The overall deal with BP was for $7 billion, including a variety of assets around the world.
Talking on their earnings call Thursday, Chief Executive Officer Steven Farris said, "The most important thing we face is how we allocate the cash flow that we have. That is key to taking advantage of what we bought. I think we have a truly formidable asset base now."
Company leaders said their major focus going forward will be to integrate the recent acquisitions into the operations of the company.
Profit for the most recent quarter rose to $778.3 million, or $2.12 a share, 76 percent over the $442 million, or $1.30 a share generated last year in the same quarter.
Earnings per share, even though solid, did significantly miss analysts' expectations of $2.24 a share.
The aggressive expansion and its near completion clouded out the miss by Apache, and share price soared by $5.21, closing at $107.79, a 5.08 percent increase.
The overall deal with BP was for $7 billion, including a variety of assets around the world.
Talking on their earnings call Thursday, Chief Executive Officer Steven Farris said, "The most important thing we face is how we allocate the cash flow that we have. That is key to taking advantage of what we bought. I think we have a truly formidable asset base now."
Company leaders said their major focus going forward will be to integrate the recent acquisitions into the operations of the company.
Profit for the most recent quarter rose to $778.3 million, or $2.12 a share, 76 percent over the $442 million, or $1.30 a share generated last year in the same quarter.
Earnings per share, even though solid, did significantly miss analysts' expectations of $2.24 a share.
The aggressive expansion and its near completion clouded out the miss by Apache, and share price soared by $5.21, closing at $107.79, a 5.08 percent increase.
Thursday, November 4, 2010
Goldman (NYSE:GS) Shows BP (NYSE:BP) Some Love, Upgrades them to "Buy"
After generating results beyond expectations, BP plc (NYSE:BP) was upgraded today by Goldman Sachs (NYSE:GS) from "Neutral" to "Buy" on the stronger-than-expected quarter and valuation.
Citing the attractive valuation whereby BP is trading at a 2011E 14% EV/DACF discount after paying out liabilities after the Gulf of Mexico oil spill, they see the company beginning to come back.
There is also light at the end of the tunnel for selling off its assets, which is probably more of a positive than most analysts and commentators note, as it's helping them to whittle down the non-core assets to be a much stronger company over time. So far they've raised about $14 billion, with another approximate $16 billion targeted for sale within the next year.
That puts them in a more predictable light, which makes shareholders and investors less nervous.
Goldman also likes that BP raised their earnings per share estimates for the next three years.
Finally, the reinstatement of the dividend, which is gaining steam, could end up with the income investor base returning said Goldman.
Goldman sees them reinstating the dividend at probably $0.08, and over the next couple of years increasing it to about $0.11.
BP closed Wednesday at $42.37, gaining $0.95, or 2.29 percent.
Citing the attractive valuation whereby BP is trading at a 2011E 14% EV/DACF discount after paying out liabilities after the Gulf of Mexico oil spill, they see the company beginning to come back.
There is also light at the end of the tunnel for selling off its assets, which is probably more of a positive than most analysts and commentators note, as it's helping them to whittle down the non-core assets to be a much stronger company over time. So far they've raised about $14 billion, with another approximate $16 billion targeted for sale within the next year.
That puts them in a more predictable light, which makes shareholders and investors less nervous.
Goldman also likes that BP raised their earnings per share estimates for the next three years.
Finally, the reinstatement of the dividend, which is gaining steam, could end up with the income investor base returning said Goldman.
Goldman sees them reinstating the dividend at probably $0.08, and over the next couple of years increasing it to about $0.11.
BP closed Wednesday at $42.37, gaining $0.95, or 2.29 percent.
Wednesday, November 3, 2010
E0G (NYSE:EOG) Hammered After Lowering Guidance, Missing
EOG Resources (NYSE:EOG) reported losses of $70.9 million in the third quarter, and lowered their production growth target for the full year from 13 percent to 9 percent, causing the share price to plummet over 11 percent early in the trading session.
The huge increase in natural gas production in shale fields in the U.S. has resulted in an exceeding abundance of supply, which has pressured natural gas prices down.
Also affecting the performance was the failure of the company to procure the equipment they needed to perform hydrofracturing on the rock. It looks like they'll continue to be slow in acquiring the needed equipment.
EOG Chief Executive Officer Mark Papa said at current prices the company has no intention of increasing natural gas production, which led to the share price getting crushed.
Papa also said the company will be selling some of its Marcellus and Eagle Ford shale assets.
EOG was trading at $88.87, losing $8.87, or 9.08 percent as of 1:37 PM EDT.
The huge increase in natural gas production in shale fields in the U.S. has resulted in an exceeding abundance of supply, which has pressured natural gas prices down.
Also affecting the performance was the failure of the company to procure the equipment they needed to perform hydrofracturing on the rock. It looks like they'll continue to be slow in acquiring the needed equipment.
EOG Chief Executive Officer Mark Papa said at current prices the company has no intention of increasing natural gas production, which led to the share price getting crushed.
Papa also said the company will be selling some of its Marcellus and Eagle Ford shale assets.
EOG was trading at $88.87, losing $8.87, or 9.08 percent as of 1:37 PM EDT.
Devon (NYSE:DVN) Beats Estimates, Production Increases
Devon Energy (NYSE:DVN) beat Street estimates for the quarter, generating production and profits beyond projections.
Excluding the properties they sold, Devon increased production by four percent for the latest quarter, as it moves away from offshore to onshore fields as their strategy.
Earnings for the quarter reached $1.44 a share, up from the $1.29 analysts had been expecting, on $2.1 billion.
Much of the profit gain was from the sale of assets they had held in Azerbaijan. They are also in the middle of selling off assets held in Brazil, which combined with Azerbaijan assets should reach $10 billion in pre-tax revenue for the year.
Excluding the properties they sold, Devon increased production by four percent for the latest quarter, as it moves away from offshore to onshore fields as their strategy.
Earnings for the quarter reached $1.44 a share, up from the $1.29 analysts had been expecting, on $2.1 billion.
Much of the profit gain was from the sale of assets they had held in Azerbaijan. They are also in the middle of selling off assets held in Brazil, which combined with Azerbaijan assets should reach $10 billion in pre-tax revenue for the year.
Anadarko (NYSE:APC) Building Up Strong Cash Balance, Production Guidance Down
The latest quarterly report of Anadarko Petroleum (NYSE:APC) was somewhat mixed, reflecting lower international production, but stronger production in the U.S.
Ticonderoga did say one thing they like is the way Anadarko is building up their cash balance.
"Anadarko reported its 3Q last night. The GAAP results were ($0.05)/share versus our ($0.10)/share estimate. Adjusted earnings were $0.26/share versus consensus of $0.29/share. 3Q production was 629.3 kboe/d versus our 613.5 kboe/d estimate. U.S. oil production was at the high end of company guidance, while international oil production was at the low end of guidance. 4Q production is forecast to be down 2% to 617 kboe/d based on the midpoint of guidance. Previously, we had been forecasting production to be up 1%. Most notably, U.S. gas production next quarter is forecast to be down 5.5% over 3Q," said Ticonderoga.
"We are marking our estimates to reality and incorporating 4Q guidance. Our 4Q estimate rises to ($0.23)/share from ($0.17)/share, and the full year increases to $1.06/share from $0.94/share. Most interestingly on the financial front is the fact that APC is amassing a considerable cash balance."
Anadarko closed up at $63.82, gaining $0.66, or 1.04 percent on Tuesday. Ticonderoga maintains a "Neutral" rating on them.
Ticonderoga did say one thing they like is the way Anadarko is building up their cash balance.
"Anadarko reported its 3Q last night. The GAAP results were ($0.05)/share versus our ($0.10)/share estimate. Adjusted earnings were $0.26/share versus consensus of $0.29/share. 3Q production was 629.3 kboe/d versus our 613.5 kboe/d estimate. U.S. oil production was at the high end of company guidance, while international oil production was at the low end of guidance. 4Q production is forecast to be down 2% to 617 kboe/d based on the midpoint of guidance. Previously, we had been forecasting production to be up 1%. Most notably, U.S. gas production next quarter is forecast to be down 5.5% over 3Q," said Ticonderoga.
"We are marking our estimates to reality and incorporating 4Q guidance. Our 4Q estimate rises to ($0.23)/share from ($0.17)/share, and the full year increases to $1.06/share from $0.94/share. Most interestingly on the financial front is the fact that APC is amassing a considerable cash balance."
Anadarko closed up at $63.82, gaining $0.66, or 1.04 percent on Tuesday. Ticonderoga maintains a "Neutral" rating on them.
Tuesday, November 2, 2010
BP (NYSE:BP) Exceeds Expectations, Earnings Reach $1.79 Billion
Although net income in the third quarter dropped about 67 percent, BP (NYSE:BP) was still able to generate earnings of $1.79 billion for the quarter. That was down from last year when they generated $5.34 billion, which was before the oil spill.
After excluding items, the oil giant had an operating profit of $5.53 billion, over an 18 percent increase from the $4.67 billion generated last year. Analysts had been looking for $4.6 billion.
BP took another pre-tax charge of $7.66 billion, bringing their total bill for the spill to $40 billion.
CEO Bob Dudley said in a statement, “This strong operating performance shows the determination of everyone at BP to move the company forward and rebuild confidence after the terrible events of the past six months.”
The additional charges were in connection to taking longer to seal the Macondo oil well in September, along with legal, cleanup and administration costs.
BP said they'll review the timing for reinstating the dividend sometime in the early part of 2011.
After excluding items, the oil giant had an operating profit of $5.53 billion, over an 18 percent increase from the $4.67 billion generated last year. Analysts had been looking for $4.6 billion.
BP took another pre-tax charge of $7.66 billion, bringing their total bill for the spill to $40 billion.
CEO Bob Dudley said in a statement, “This strong operating performance shows the determination of everyone at BP to move the company forward and rebuild confidence after the terrible events of the past six months.”
The additional charges were in connection to taking longer to seal the Macondo oil well in September, along with legal, cleanup and administration costs.
BP said they'll review the timing for reinstating the dividend sometime in the early part of 2011.
BP (NYSE:BP) Shares Should Trade Active Today
BP's (NYSE:BP) shares are expected to trade active today in anticipation and response to their latest quarterly report.
There are no expectations of surprises from BP, which should remain suppressed from the ongoing uncertainty of its overall liability in the Gulf of Mexico oil spill.
Analysts on average are looking for about $1.51 earnings per share, with a range of $1.44 to $1.59 per share from several analysts.
BP closed Monday at $40.77, losing $0.03, or 0.07 percent.
There are no expectations of surprises from BP, which should remain suppressed from the ongoing uncertainty of its overall liability in the Gulf of Mexico oil spill.
Analysts on average are looking for about $1.51 earnings per share, with a range of $1.44 to $1.59 per share from several analysts.
BP closed Monday at $40.77, losing $0.03, or 0.07 percent.
Friday, October 29, 2010
Citigroup (NYSE:C) Sees Bob Dudley's Strategic Guidance More Important than Quarterly Results
A lot of analysts and commentators are giving their input into the upcoming third quarter report from BP (NYSE:BP), but Citigroup (NYSE:C) rightly notes that what's the most important aren't the earnings for the third quarter, but new CEO Bob Dudley's vision of where he wants to take the company.
Citigroup said, the "path to rehabilitation post Macondo and Bob Dudley's new strategic direction are the key to performance rather than Q3 earnings."
In other words, investors shouldn't be looking at BP in any way concerning short-term results, as they're going to be completely unpredictable and unreliable in the current environment BP is operating in.
Like the Halliburton revelation on their cement job, there are still a lot of unknowns that remain to be resolved before any type of normality will return to the company.
What's most important, as Citigroup says, is how Dudley is going to deal with those realities and not only stabilize the company, but how he's going to grow it.
Citigroup said, the "path to rehabilitation post Macondo and Bob Dudley's new strategic direction are the key to performance rather than Q3 earnings."
In other words, investors shouldn't be looking at BP in any way concerning short-term results, as they're going to be completely unpredictable and unreliable in the current environment BP is operating in.
Like the Halliburton revelation on their cement job, there are still a lot of unknowns that remain to be resolved before any type of normality will return to the company.
What's most important, as Citigroup says, is how Dudley is going to deal with those realities and not only stabilize the company, but how he's going to grow it.
Thursday, October 28, 2010
ConocoPhillips (NYSE:COP) Drops on Lower Production in Third Quarter
ConocoPhillips (NYSE:COP) beat earnings estimates for the third quarter but still got punished on lower production, generating questions on future
performance.
For the quarter, earnings per share rose to $1.50, beating Street estimates by 5 cents a share, and doubling last year's earnings in the same quarter.
Earnings for the quarter rose to $3.06 billion, or $2.05 a share. Last year they generated earnings of $1.5 billion, or 97 cents a share.
Lowering costs and higher commodity prices drove the performance for Conoco in the quarter, but lower production could weigh on shares and performance, as there is only so low costs can be lowered, and no guarantees as to prices going forward.
Production would need to rise to build confidence in the future performance of the energy giant.
CEO Jim Mulva commented on the quarterly results, saying, “We had a good
quarter and operated as expected. Our plans to improve returns through
disciplined capital spending, reducing debt and repurchasing shares are on
track.”
As far as natural gas production, that's not necessarily a negative situation, as lower natural gas prices would cause Conoco to decrease margins and earnings.
Oil exploration and production dropped to 1.72 million barrels a day, which is more concerning for shareholders and potential investors.
Revenue for the latest quarter increased to $49.5 billion, beating estimates of $45.59 billion, and the $41.27 billion in revenue last year.
performance.
For the quarter, earnings per share rose to $1.50, beating Street estimates by 5 cents a share, and doubling last year's earnings in the same quarter.
Earnings for the quarter rose to $3.06 billion, or $2.05 a share. Last year they generated earnings of $1.5 billion, or 97 cents a share.
Lowering costs and higher commodity prices drove the performance for Conoco in the quarter, but lower production could weigh on shares and performance, as there is only so low costs can be lowered, and no guarantees as to prices going forward.
Production would need to rise to build confidence in the future performance of the energy giant.
CEO Jim Mulva commented on the quarterly results, saying, “We had a good
quarter and operated as expected. Our plans to improve returns through
disciplined capital spending, reducing debt and repurchasing shares are on
track.”
As far as natural gas production, that's not necessarily a negative situation, as lower natural gas prices would cause Conoco to decrease margins and earnings.
Oil exploration and production dropped to 1.72 million barrels a day, which is more concerning for shareholders and potential investors.
Revenue for the latest quarter increased to $49.5 billion, beating estimates of $45.59 billion, and the $41.27 billion in revenue last year.
Tuesday, October 26, 2010
BP's (NYSE:BP) TNK-BP Profits Drop 14 Percent
TNK-BP, the joint venture between BP (NYSE:BP) and Russian billionaires, had its profits fall by 14 percent in the third quarter, according to their latest report.
Net profit for the quarter ending September 30 was $1.45 billion, down from the $1.68 billion generated last year. The drop was largely based on the profits garnered from the sale of their oil services unit last year.
Revenue for TNK-BP did increase to $11.40 billion, a boost of 11 percent.
Earnings were $2.56 before interest, taxes, depreciation and amortization, and operating cash flow came in at $3.01 billion.
The company pointed to lower natural gas production as the major reason for the drop in profits, but Chief Financial Officer Jonathan Muir said the oil production at the West Siberian fields was also down by 3.5 percent, and that will probably continue on throughout 2011, Muir added.
Net profit for the quarter ending September 30 was $1.45 billion, down from the $1.68 billion generated last year. The drop was largely based on the profits garnered from the sale of their oil services unit last year.
Revenue for TNK-BP did increase to $11.40 billion, a boost of 11 percent.
Earnings were $2.56 before interest, taxes, depreciation and amortization, and operating cash flow came in at $3.01 billion.
The company pointed to lower natural gas production as the major reason for the drop in profits, but Chief Financial Officer Jonathan Muir said the oil production at the West Siberian fields was also down by 3.5 percent, and that will probably continue on throughout 2011, Muir added.
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 21, 2010
Noble Corp.'s (NYSE:NE) Earnings Crushed by Obama's Moratorium
In their latest quarterly report, Noble Corp.'s (NYSE:NE) profits plummeted by 80 percent, as the toll from the Obama administrations' oil moratorium continues to rise.
Even though the moratorium was lifted before the November elections, it is effectively still in place because of the permitting process and new regulations which will keep oil companies from drilling in the deepwater portions of the Gulf of Mexico for some time.
Profits in the quarter for Noble dropped to $86 million, or 34 cents a share, far below the $426 million, or $1.63 a share they produced last year in the same quarter.
Revenue for the third quarter also dropped to $613 million.
Analysts had been looking for revenue of $635 million, and profits of 35 cents a share.
The guidance from Noble Chief Executive David Williams was ominous: "We recognize that the effects of U.S. policies related to offshore drilling will be felt into 2011 and beyond."
Noble closed Wednesday at $35.00 a share, gaining $0.27, or 0.78 percent.
Even though the moratorium was lifted before the November elections, it is effectively still in place because of the permitting process and new regulations which will keep oil companies from drilling in the deepwater portions of the Gulf of Mexico for some time.
Profits in the quarter for Noble dropped to $86 million, or 34 cents a share, far below the $426 million, or $1.63 a share they produced last year in the same quarter.
Revenue for the third quarter also dropped to $613 million.
Analysts had been looking for revenue of $635 million, and profits of 35 cents a share.
The guidance from Noble Chief Executive David Williams was ominous: "We recognize that the effects of U.S. policies related to offshore drilling will be felt into 2011 and beyond."
Noble closed Wednesday at $35.00 a share, gaining $0.27, or 0.78 percent.
Tuesday, October 19, 2010
Morgan Stanley (NYSE:MS) Downgrades Halliburton (NYSE:HAL) on Disappointing Results
The seemingly strong performance of Halliburton (NYSE:HAL) wasn't enough to impress the market, and the share price of the oil giant got hammered, with Morgan Stanley (NYSE:MS) adding insult to injury by downgrading them from "Overweight" to "Equalweight."
Earnings for the quarter ending September 30 were $544 million, or 60 cents a share. That's over double the $262 million earning in the same period last year, or $0.29 a share.
Revenue for the quarter jumped to $4.67 billion, a 30 percent gain. The street was looking for revenue of $4.78 billion, and earnings of $0.56 a share.
Halliburton shares were pressured down as a result, closing Monday at $34.09, losing $1.73, or 4.83 percent.
Earnings for the quarter ending September 30 were $544 million, or 60 cents a share. That's over double the $262 million earning in the same period last year, or $0.29 a share.
Revenue for the quarter jumped to $4.67 billion, a 30 percent gain. The street was looking for revenue of $4.78 billion, and earnings of $0.56 a share.
Halliburton shares were pressured down as a result, closing Monday at $34.09, losing $1.73, or 4.83 percent.
Monday, October 18, 2010
Halliburton (NYSE:HAL) Crushed After Earnings Report
With expectations at high levels, the improved revenue and earnings of Halliburton Company (NYSE:HAL) weren't enough to satisfy investors, who sold the stock off after the released quarterly report.
Revenue for the third quarter soared 30 percent to $4.67 billion, up from the $3.59 in the same quarter last year. Net profit grew to $544 million, over double last years' numbers. That equaled 60 cents a share, in contrast to $262 million, or 29 cents a share last year.
Over half the revenue for Halliburton was generated in North America even with the Gulf oil crisis, amounting to $2.4 billion.
Outside of the United States and Canada, results were disappointing, with slow growth in Latin America and the Middle-East-Asia regions, and decline of growth in former Soviet nations, Europe and Africa.
Shale gas fields led the way in North America, helping the company generate record revenue in the quarter.
Interestingly, Halliburton is moving toward more gas production in a depressed natural gas price market, generating strong revenues, while gas companies have been expanding into the oil market for the same reasons: lower margins and prices.
Halliburton plunged to $33.82, losing $2.00, or 5.58 percent at 2:11 PM EDT.
Revenue for the third quarter soared 30 percent to $4.67 billion, up from the $3.59 in the same quarter last year. Net profit grew to $544 million, over double last years' numbers. That equaled 60 cents a share, in contrast to $262 million, or 29 cents a share last year.
Over half the revenue for Halliburton was generated in North America even with the Gulf oil crisis, amounting to $2.4 billion.
Outside of the United States and Canada, results were disappointing, with slow growth in Latin America and the Middle-East-Asia regions, and decline of growth in former Soviet nations, Europe and Africa.
Shale gas fields led the way in North America, helping the company generate record revenue in the quarter.
Interestingly, Halliburton is moving toward more gas production in a depressed natural gas price market, generating strong revenues, while gas companies have been expanding into the oil market for the same reasons: lower margins and prices.
Halliburton plunged to $33.82, losing $2.00, or 5.58 percent at 2:11 PM EDT.
Thursday, September 9, 2010
China North East Petroleum Holdings (Amex:NEP) Downgraded by Rodman & Renshaw
Rodman & Renshaw has downgraded China North East Petroleum Holdings (Amex:NEP) from "Market Outperform" to "Market Perform."
The Oil producer and oilfield services company just came off a strong quarter, generating revenue of $27.7 million, an increase of 144 percent over the same quarter last year.
Gross profit rose to $16.9 million, or 60.9% of revenue, from $7.4 million last year.
The problem is they didn't drill any new wells in the quarter, shown in its drop in production to 198,776 barrels, an 11 percent drop.
That will carry forward into the near future, as prices carried the prior quarter, and it doesn't look like they'll be able to repeat that performance going forward.
The Oil producer and oilfield services company just came off a strong quarter, generating revenue of $27.7 million, an increase of 144 percent over the same quarter last year.
Gross profit rose to $16.9 million, or 60.9% of revenue, from $7.4 million last year.
The problem is they didn't drill any new wells in the quarter, shown in its drop in production to 198,776 barrels, an 11 percent drop.
That will carry forward into the near future, as prices carried the prior quarter, and it doesn't look like they'll be able to repeat that performance going forward.
Thursday, August 5, 2010
Frontier Oil (NYSE:FTO) Misses Earnings, Meets Revenue Estimates
Even though they missed earnings estimates for the quarter, Frontier Oil (NYSE:FTO) had a decent quarter, with earnings reaching net income reaching $66.1 million, or 63 cents a share, up from the $57.9 million loss, or 56 cents a share, last year.
Frontier missed after excluding times, with adjusted earnings of 46 cents, whereas analysts had been looking for 47 cents a share.
Revenue in the quarter was $1.55 billion, an increase of 40 percent over the same quarter last year, which was exactly what analysts had expected for the quarter.
A hedging gain was a major factor in the performance of the company over last year, with a hedging gain of 17 cents a share against last year's 18-cent a share loss on hedges.
Like most energy companies in the last quarter, margins have been the story behind their increase in earnings, especially with refinery margins, which CEO Mike Jennings said should continue to widen incrementally going forward.
The differential in light/heavy crude also more than doubled during the quarter, increasing to an average of $9.33 a barrel, helping the margins of the company.
Frontier missed after excluding times, with adjusted earnings of 46 cents, whereas analysts had been looking for 47 cents a share.
Revenue in the quarter was $1.55 billion, an increase of 40 percent over the same quarter last year, which was exactly what analysts had expected for the quarter.
A hedging gain was a major factor in the performance of the company over last year, with a hedging gain of 17 cents a share against last year's 18-cent a share loss on hedges.
Like most energy companies in the last quarter, margins have been the story behind their increase in earnings, especially with refinery margins, which CEO Mike Jennings said should continue to widen incrementally going forward.
The differential in light/heavy crude also more than doubled during the quarter, increasing to an average of $9.33 a barrel, helping the margins of the company.
Tuesday, August 3, 2010
Marathon Oil (NYSE:MRO) Profits Up on Higher Prices, Margins
Margins continue to be the story of the earnings season for commodity companies, and that didn't change with Marathon Oil (NYSE:MRO), as they exceeded expectations for earnings and revenue, with higher crude oil prices also being a factor.
A secondary factor for energy companies has been the seasonal increase in demand for fuel, although gas prices have remained somewhat level, and even down from usual levels.
Even so, the demand for fuel has pushed margins up for Marathon, along with the margins in their refinery business, which has helped almost all the energy companies this quarter, who have refining as part of their operations.
Especially helpful for Marathon in the quarter was the lower cost of processing sour crude oil, which is less expensive than light sweet crude.
Earnings for the quarter rose to $709 million, or $1.00 a share. Last year in the same quarter they generated $413 million, or 58 cents a share.
Revenue soared from last year as well, rising to $18.6 billion, up from $13.3 billion. Analysts estimated revenue of $19.7 billion with earnings of 81 cents a share.
Looking ahead, Marathon maintained its full-year production of 390,000 to 410,000 boe a day, with a daily average of 385,000 to 405,000 in the third quarter available for sale.
A secondary factor for energy companies has been the seasonal increase in demand for fuel, although gas prices have remained somewhat level, and even down from usual levels.
Even so, the demand for fuel has pushed margins up for Marathon, along with the margins in their refinery business, which has helped almost all the energy companies this quarter, who have refining as part of their operations.
Especially helpful for Marathon in the quarter was the lower cost of processing sour crude oil, which is less expensive than light sweet crude.
Earnings for the quarter rose to $709 million, or $1.00 a share. Last year in the same quarter they generated $413 million, or 58 cents a share.
Revenue soared from last year as well, rising to $18.6 billion, up from $13.3 billion. Analysts estimated revenue of $19.7 billion with earnings of 81 cents a share.
Looking ahead, Marathon maintained its full-year production of 390,000 to 410,000 boe a day, with a daily average of 385,000 to 405,000 in the third quarter available for sale.
Forest Oil (NYSE:FST) Earnings Down 10 Percent
While the Forest Oil Corp. (NYSE:FST) was able to barely beat analysts' estimates, earnings for the second quarter still dropped 10 percent, as the company cited lower natural gas prices as the reason for the poor performance.
Earnings for the quarter reached $33.3 million, or 29 cents a share, falling from the $37.1 million, or 36 cents a share last year in the same quarter.
The market was looking for revenue of $220 million, but Forest was oil able to generate $208.1 million. Even so, that was a 14 percent gain.
Forest President and Chief Executive Officer H. Craig Clark, said, “We have the ability to annually grow net sales volumes at double digit rates at attractive rates of return while spending near our cash flow. The growth from the Texas Panhandle, along with the other core assets in the portfolio, has resulted in an increase to our net sales volume guidance for 2010. As a result of a significant project inventory in our core areas we expect the asset base to continue to yield growth well into the future.”
The challenge in the natural gas sector isn't going to be sales, it's the abundance of supply which will challenge pricing in the years ahead, and all those with a large exposure to natural gas will have to deal with that.
Forest Oil closed Monday's session at $29.80, gaining $1.21, or 4.23 percent.
Earnings for the quarter reached $33.3 million, or 29 cents a share, falling from the $37.1 million, or 36 cents a share last year in the same quarter.
The market was looking for revenue of $220 million, but Forest was oil able to generate $208.1 million. Even so, that was a 14 percent gain.
Forest President and Chief Executive Officer H. Craig Clark, said, “We have the ability to annually grow net sales volumes at double digit rates at attractive rates of return while spending near our cash flow. The growth from the Texas Panhandle, along with the other core assets in the portfolio, has resulted in an increase to our net sales volume guidance for 2010. As a result of a significant project inventory in our core areas we expect the asset base to continue to yield growth well into the future.”
The challenge in the natural gas sector isn't going to be sales, it's the abundance of supply which will challenge pricing in the years ahead, and all those with a large exposure to natural gas will have to deal with that.
Forest Oil closed Monday's session at $29.80, gaining $1.21, or 4.23 percent.
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