RBC Capital said it has made some changes on some of its ratings on oil and gas stocks, including Tesoro Corp. (NYSE:TSO), Patterson-UTI Energy (Nasdaq:PTEN) and ECA Marcellus Trust (NYSE:ECT).
Patterson-UTI Energy (Nasdaq:PTEN) was upgraded from "Sector Perform" to "Outperform," with their price target raised from $23 to $27. Patterson closed at $19.44, dropping $0.11, or 0.56 percent.
Tesoro Corp. was downgraded from "Outperform" to "Sector Perform," with a price target on them of $15 a share. Tesoro closed Thursday at $13.14, losing $0.78, or 5.60 percent.
RBC initiated coverage on ECA Marcellus Trust with an "Outperform" rating, and a price target of $25. ECA ended Thursday's trading session at $23.34, falling $0.22, or 0.93 percent.
Showing posts with label RBC Capital Markets. Show all posts
Showing posts with label RBC Capital Markets. Show all posts
Friday, October 22, 2010
Tuesday, September 28, 2010
Citigroup (NYSE:C), BNP, Barclays (NYSE:BCS), RBS (NYSE:RBS) Leading BP (NYSE:BP) $3 Billion Bond Issuance
BP Capital Markets PLC, the funding unit of BP Plc (NYSE:BP), is close to issuing about $3 billion in bonds, led by Citigroup (NYSE:C), BNP Paribas, Barclays Capital (NYSE:BCS), Royal Bank of Scotland (NYSE:RBS) and Mizuho Securities USA Inc.
The bonds will be 5- and 10-year bonds sold in U.S. dollars.
Pricing of the bonds will be somewhere in the low to mid 200 basis points range over Treasuries, with tranches split close to equal.
BP PLC, the parent company, will be guaranteeing the bonds, which are projected to be rated A2 by Moody's Investors Service (NYSE:MC) and A by Standard & Poor's.
In a filing with the Securities and Exchange Commission BP said they will use the capital to pay for existing debt and other general corporate purposes.
A spokesman for BP said the bond issuance isn't specifically related to the BP oil spill and is part of normal financial management of the company.
The bonds will be 5- and 10-year bonds sold in U.S. dollars.
Pricing of the bonds will be somewhere in the low to mid 200 basis points range over Treasuries, with tranches split close to equal.
BP PLC, the parent company, will be guaranteeing the bonds, which are projected to be rated A2 by Moody's Investors Service (NYSE:MC) and A by Standard & Poor's.
In a filing with the Securities and Exchange Commission BP said they will use the capital to pay for existing debt and other general corporate purposes.
A spokesman for BP said the bond issuance isn't specifically related to the BP oil spill and is part of normal financial management of the company.
Wednesday, September 15, 2010
RBC on Conoco (NYSE:COP), Marathon (NYSE:MRO) and Chevron (NYSE:CVX)
RBC Capital Markets evaluated a number of large players in the oil and gas industry, including ConocoPhillips (NYSE:COP), Chevron Corp. (NYSE:CVX) and Marathon Oil (NYSE:MRO).
In the view of RBC, the major determinant is how exposed the oil companies are to natural gas. With the weak market, the less exposed, the better.
Their two favorites were Conoco and Chevron, with Conoco rated as a "Outperform," Chevron as a "Top Pick," and Marathon rated as "Sector Perform."
The price target on Conoco is $65 a share; Chevron, $93 a share; and Marathon, $35 a share.
RBC sees Chevron outperforming Exxon (NYSE:XOM) over the next two years on earnings per barrel.
In the view of RBC, the major determinant is how exposed the oil companies are to natural gas. With the weak market, the less exposed, the better.
Their two favorites were Conoco and Chevron, with Conoco rated as a "Outperform," Chevron as a "Top Pick," and Marathon rated as "Sector Perform."
The price target on Conoco is $65 a share; Chevron, $93 a share; and Marathon, $35 a share.
RBC sees Chevron outperforming Exxon (NYSE:XOM) over the next two years on earnings per barrel.
Tuesday, September 14, 2010
Exxon (NYSE:XOM) Downgraded by RBC Capital
RBC Capital Markets downgraded Exxon Mobil Corp. (NYSE:XOM), saying their exposure to the weak natural gas market makes them vulnerable.
This was a reference to the acquisition of XTO Energy in the early part of 2010, which resulted in Exxon becoming the largest natural gas company in the United States.
Natural gas companies have been attempting to diversify by acquiring oil assets because of the expectations the abundant supply of natural gas will keep the price of the energy source down.
RBC said the weak price of natural gas will damage the earnings of Exxon, along with their market valuation. They lowered the price target for the next 12 months from $76 a share to $70 a share, while downgrading them from "Outperform" to "Sector Perform."
This was a reference to the acquisition of XTO Energy in the early part of 2010, which resulted in Exxon becoming the largest natural gas company in the United States.
Natural gas companies have been attempting to diversify by acquiring oil assets because of the expectations the abundant supply of natural gas will keep the price of the energy source down.
RBC said the weak price of natural gas will damage the earnings of Exxon, along with their market valuation. They lowered the price target for the next 12 months from $76 a share to $70 a share, while downgrading them from "Outperform" to "Sector Perform."
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