Laredo Petroleum Holdings (NYSE: LPI) ratings and price targets.
Goldman Sachs (NYSE:GS) initiated coverage on Laredo Petroleum Holdings (LPI). They placed a “Buy” rating and a price target of $28.00 on the company.
Bank of America (NYSE:BAC) initiated coverage on Laredo Petroleum Holdings (LPI). They placed a “Buy” rating on the company.
JPMorgan Chase & Co. (NYSE:JPM) initiated coverage on Laredo Petroleum Holdings (LPI). They placed an “Overweight” rating on the company.
Wells Fargo & Co. (NYSE:WFC) initiated coverage on Laredo Petroleum Holdings (LPI). They placed an “Outperform” rating on the company.
Showing posts with label Wells Fargo. Show all posts
Showing posts with label Wells Fargo. Show all posts
Tuesday, January 24, 2012
Monday, January 10, 2011
Carrizo Oil & Gas (NASDAQ:CRZO) Struggling with Barnett Shale
Carrizo Oil & Gas (NASDAQ:CRZO) looks like it is priced where it should be, according to Wells Fargo (NYSE:WFC), who says they face ongoing challenges in the Barnett.
Wells said, "It may be short term, but currently clouding our view of the company’s ability to execute are infrastructure and takeaway challenges in the Barnett, but more importantly in the Eagle Ford. At the current share price, we believe the market has priced in a fair value for the Eagle Ford and Niobrara upside and that a better risk/reward can likely be found in other names."
Wells downgraded Carrizo Oil & Gas from "Outperform" to "Market Perform." Carrizo closed Friday at $33.16, losing $1.04, or 3.04 percent.
Carrizo is trading close to its 52-week high of $34.98.
Wells said, "It may be short term, but currently clouding our view of the company’s ability to execute are infrastructure and takeaway challenges in the Barnett, but more importantly in the Eagle Ford. At the current share price, we believe the market has priced in a fair value for the Eagle Ford and Niobrara upside and that a better risk/reward can likely be found in other names."
Wells downgraded Carrizo Oil & Gas from "Outperform" to "Market Perform." Carrizo closed Friday at $33.16, losing $1.04, or 3.04 percent.
Carrizo is trading close to its 52-week high of $34.98.
Wednesday, October 27, 2010
Wells (NYSE:WFC) Sees No Quick Fix for Blueknight Energy (OTC:BKEP)
Wells Fargo (NYSE:WFC) changed their rating on Blueknight Energy Partners, L.P. (OTC:BKEP), downgrading them from "Outperform" to "Market Perform," citing no quick fix in the short term for their restructuring.
"We’re downgrading BKEP as terms of the announced restructuring are less attractive than we had forecast. According to our preliminary analysis, the restructuring transaction is unlikely to result in potential unit price upside near term. While we still believe Vitol and new GP owner CharlesBank are likely to grow the partnership over time via organic investments and acquisitions (including dropdowns), near-term upside potential appears limited, in our view. Our model and estimates are being reviewed," said Wells.
Wells lowered their valuation range from $12-14 to $5-8. Blueknight closed Monday at $8.95.
"We’re downgrading BKEP as terms of the announced restructuring are less attractive than we had forecast. According to our preliminary analysis, the restructuring transaction is unlikely to result in potential unit price upside near term. While we still believe Vitol and new GP owner CharlesBank are likely to grow the partnership over time via organic investments and acquisitions (including dropdowns), near-term upside potential appears limited, in our view. Our model and estimates are being reviewed," said Wells.
Wells lowered their valuation range from $12-14 to $5-8. Blueknight closed Monday at $8.95.
Tuesday, October 26, 2010
Wells Fargo (NYSE:WFC) Initiates Coverage on Key Energy (NYSE:KEG), Oceaneering (NYSE:OII), Drill-Quip (Nasdaq:DRQ), National Oilwell (NYSE:NOV)
A number of financial institutions launched coverage on a number of energy companies, and Wells Fargo (NYSE:WFC) initiated coverage on Key Energy Services, Inc (NYSE:KEG), Oceaneering International, Inc. (NYSE:OII), Drill-Quip, Inc. (Nasdaq:DRQ) and National Oilwell Varco, Inc. (NYSE:NOV).
On Key Energy Services, which Wells started off with a "Market Perform," they said, "We like KEG's transformation strategy and initial focus on heavy duty, workover rigs, and large-diameter, coiled tubing units. Legacy U.S. rigs should benefit from a 10%+ rise in flowing oil wells over the next 18 months. Finally, it's pushing into new foreign markets, like Colombia and MENA. But, it's pricing in credit for much of this and, before considering higher multiples, we'd prefer to see more results."
They have a valuation range of $10.70 to $11.25 on Key Energy.
On National Oilwell Varco, they were started with an "Outperform" by Wells.
They said, "NOV's narrative has shifted from one plotline--the global rig construction boom - to several, some underappreciated in our view. While an encore of the '05-08 frenzy is unlikely, newbuilding has strong, secular drivers across asset types that are spurring a pick-up, with Petrobrás about to move on its first 9 floaters, and U.S. contractors regrowing shale-oriented fleets; and should ensure an ongoing, healthy flow. But, NOV also 1) is the best positioned in the rig equipment aftermarket; 2) has grown its exposure to FPSOs; 3) should make more $500MM+ acquisitions."
A valuation of $63.00 to $65.00 was placed on them.
Drill-Quip, Inc. was started off with a "Market Perform" rating.
Wells said about them, "The purest, deepwater capital equipment play, DRQ is a well run manufacturer that, over a 2011-12 expected upturn in floater activity, should generate highly competitive earnings growth and returns. Beyond 2012, it's well positioned for Petrobras' planned 20+ newbuilds, and continued, general secular growth. DRQ's valuation premium is warranted and largely reflects its appeal as takeover target. However, we presently find the stock fairly valued and await a better entry point."
A valuation range of $66.00 to $71.00 was placed on them by Wells.
Oceaneering Int'l was launched with an "Outperform by Wells Fargo.
"OII offers compelling risk-reward. We think potential variance to its expected U.S. Gulf of Mexico earnings is skewed to the upside. Globally, the floater fleet should expand by 61 new units and shift towards a more equal balance between exploration and development. Both factors should fuel ROVs and Subsea Products growth. Finally, OII should use its ample fire power continue to return cash, most likely via share repurchases, and make accretive, if likely tiny, acquisitions."
A valuation range of $63.00 to $66.00 was appointed by Wells on Oceanering.
On Key Energy Services, which Wells started off with a "Market Perform," they said, "We like KEG's transformation strategy and initial focus on heavy duty, workover rigs, and large-diameter, coiled tubing units. Legacy U.S. rigs should benefit from a 10%+ rise in flowing oil wells over the next 18 months. Finally, it's pushing into new foreign markets, like Colombia and MENA. But, it's pricing in credit for much of this and, before considering higher multiples, we'd prefer to see more results."
They have a valuation range of $10.70 to $11.25 on Key Energy.
On National Oilwell Varco, they were started with an "Outperform" by Wells.
They said, "NOV's narrative has shifted from one plotline--the global rig construction boom - to several, some underappreciated in our view. While an encore of the '05-08 frenzy is unlikely, newbuilding has strong, secular drivers across asset types that are spurring a pick-up, with Petrobrás about to move on its first 9 floaters, and U.S. contractors regrowing shale-oriented fleets; and should ensure an ongoing, healthy flow. But, NOV also 1) is the best positioned in the rig equipment aftermarket; 2) has grown its exposure to FPSOs; 3) should make more $500MM+ acquisitions."
A valuation of $63.00 to $65.00 was placed on them.
Drill-Quip, Inc. was started off with a "Market Perform" rating.
Wells said about them, "The purest, deepwater capital equipment play, DRQ is a well run manufacturer that, over a 2011-12 expected upturn in floater activity, should generate highly competitive earnings growth and returns. Beyond 2012, it's well positioned for Petrobras' planned 20+ newbuilds, and continued, general secular growth. DRQ's valuation premium is warranted and largely reflects its appeal as takeover target. However, we presently find the stock fairly valued and await a better entry point."
A valuation range of $66.00 to $71.00 was placed on them by Wells.
Oceaneering Int'l was launched with an "Outperform by Wells Fargo.
"OII offers compelling risk-reward. We think potential variance to its expected U.S. Gulf of Mexico earnings is skewed to the upside. Globally, the floater fleet should expand by 61 new units and shift towards a more equal balance between exploration and development. Both factors should fuel ROVs and Subsea Products growth. Finally, OII should use its ample fire power continue to return cash, most likely via share repurchases, and make accretive, if likely tiny, acquisitions."
A valuation range of $63.00 to $66.00 was appointed by Wells on Oceanering.
Monday, October 25, 2010
Wells Fargo (NYSE:WFC) Says Whiting Petroleum (NYSE:WLL) Reaches Upside Limits
Whiting Petroleum (NYSE:WLL) was downgraded by Wells Fargo (NYSE:WFC), citing most of the upside is priced into the share price. They were downgraded from "Outperform" to "Market Perform."
Wells said, "With success at Sanish and now initial success at Lewis and Clark, WLL has executed and erased Bakken inventory concerns. Given, YTD outperformance, much of the upside is already priced into shares, in our opinion and we believe risk/reward is now neutral."
The valuation range was also lowered from $105-$110 to $100-$110.
Whiting closed Friday at $100.97, dropping $0.51, or 0.50 percent.
Wells said, "With success at Sanish and now initial success at Lewis and Clark, WLL has executed and erased Bakken inventory concerns. Given, YTD outperformance, much of the upside is already priced into shares, in our opinion and we believe risk/reward is now neutral."
The valuation range was also lowered from $105-$110 to $100-$110.
Whiting closed Friday at $100.97, dropping $0.51, or 0.50 percent.
Wednesday, October 20, 2010
Wells Fargo (NYSE:WFC) Downgrades Oasis Petroleum (NYSE:OAS) Citing Valuation
With its strong performance since its summer IPO, Oasis Petroleum (NYSE:OAS) is looked upon as fully valued, and Wells Fargo (NYSE:WFC) was the latest to downgrade them, as the dropped them from "Outperform" to "Market Perform."
Wells said, "We are downgrading shares of OAS following substantial absolute and relative strength. With shares up 55% from the IPO, they have handily outperformed the EPX during that timeframe. With Bakken upside potential increasingly understood, execution a requisite, and oil trading toward the higher end of its recent range, we view risk reward as more consistent with a Market Perform rating. We are maintaining our estimates and valuation at this time."
UBS (NYSE:UBS) downgraded them Monday from "Buy" to "Neutral," citing similar reasons.
Oasis closed Tuesday at $20.26, losing $1.40, or 6.46 percent.
Wells has a valuation range of $21.00 to $23.00 on them.
Wells said, "We are downgrading shares of OAS following substantial absolute and relative strength. With shares up 55% from the IPO, they have handily outperformed the EPX during that timeframe. With Bakken upside potential increasingly understood, execution a requisite, and oil trading toward the higher end of its recent range, we view risk reward as more consistent with a Market Perform rating. We are maintaining our estimates and valuation at this time."
UBS (NYSE:UBS) downgraded them Monday from "Buy" to "Neutral," citing similar reasons.
Oasis closed Tuesday at $20.26, losing $1.40, or 6.46 percent.
Wells has a valuation range of $21.00 to $23.00 on them.
Tuesday, October 19, 2010
Wells Fargo (NYSE:WFC) Likes EPS of PG&E Corp. (NYSE:PCG)
Citing their earnings per share growth potential and the positive regulatory climate they operate in, Wells Fargo (NYSE:WFC) upgraded PG&E Corp. (NYSE:PCG) from "Market Perform" to "Outperform."
Specifically noted is its likely settlement in the General Rate Case.
Wells said, "PG&E operates in what we consider to be a constructive
regulatory climate where rates are decoupled from sales volumes. We also
think it has above-average EPS growth prospects driven by investment in
renewable-focused projects and the smart grid. Plus, we think proposed
settlements in its General Rate Case and its gas transmission/storage case
reduces regulatory risk."
The valuation on PG&E Corp. was raised by Wells Fargo from $44.00 to $46.00 to $50.00 to $52.00.
PG&E closed the trading session at $47.21, gaining $0.31, or 0.66 percent.
Specifically noted is its likely settlement in the General Rate Case.
Wells said, "PG&E operates in what we consider to be a constructive
regulatory climate where rates are decoupled from sales volumes. We also
think it has above-average EPS growth prospects driven by investment in
renewable-focused projects and the smart grid. Plus, we think proposed
settlements in its General Rate Case and its gas transmission/storage case
reduces regulatory risk."
The valuation on PG&E Corp. was raised by Wells Fargo from $44.00 to $46.00 to $50.00 to $52.00.
PG&E closed the trading session at $47.21, gaining $0.31, or 0.66 percent.
Monday, October 18, 2010
Wells (NYSE:WFC) Considers ENSCO International (NYSE:ESV) Cheap Now
Based on its performance against its peers, Wells Fargo (NYSE:WFC) said they consider ENSCO International relatively inexpensive, and upgraded them to "Outperform."
"We think ESV is comparatively cheap today, lagging the upward stock performance of its peers as investors have become more optimistic in the offshore drilling industry over the past month. While we continue to believe the entire offshore drilling group is still somewhat undervalued due to continued uncertainty regarding the future of GOM drilling, we think ESV is particularly attractive as a high-quality company trading at a discounted valuation to the group versus our NAV estimates and EBITDA metrics."
Concerning their valuation range, Wells increased it on ENSCO from $46-$47 to $54-$56.
ENSCO closed in New York Friday at $47.54, gaining $0.04, or 0.08 percent.
"We think ESV is comparatively cheap today, lagging the upward stock performance of its peers as investors have become more optimistic in the offshore drilling industry over the past month. While we continue to believe the entire offshore drilling group is still somewhat undervalued due to continued uncertainty regarding the future of GOM drilling, we think ESV is particularly attractive as a high-quality company trading at a discounted valuation to the group versus our NAV estimates and EBITDA metrics."
Concerning their valuation range, Wells increased it on ENSCO from $46-$47 to $54-$56.
ENSCO closed in New York Friday at $47.54, gaining $0.04, or 0.08 percent.
Wells Fargo (NYSE:WFC) Down on Pride International (NYSE:PDE)
Wells Fargo (NYSE:WFC) downgraded Pride International (NYSE:PDE) from "Outperform" to "Market Perform," citing valuation, which they did raise from $32-35 to $34-36.
Wells said, "After strong price performance for the offshore drilling group since 9/7 (+19% on average versus +7% for the SPX), and PDE in particular (+23%), we believe the risk/reward profile for PDE shares is less compelling at current valuation of 7.0x 2011E EBITDA and 120% EV/estimated NAV. While we remain comfortable with our estimates and PDE management's ability to execute, the drilling fleet is largely contracted through 2011, so we see limited opportunity for positive near-term catalysts, to continue this recent outperformance."
Pride ended Friday's trading session at $31.95, gaining $0.15, or 0.47 percent.
Volume for the day was up over 50 percent from its daily 3-month average.
Wells said, "After strong price performance for the offshore drilling group since 9/7 (+19% on average versus +7% for the SPX), and PDE in particular (+23%), we believe the risk/reward profile for PDE shares is less compelling at current valuation of 7.0x 2011E EBITDA and 120% EV/estimated NAV. While we remain comfortable with our estimates and PDE management's ability to execute, the drilling fleet is largely contracted through 2011, so we see limited opportunity for positive near-term catalysts, to continue this recent outperformance."
Pride ended Friday's trading session at $31.95, gaining $0.15, or 0.47 percent.
Volume for the day was up over 50 percent from its daily 3-month average.
Friday, October 15, 2010
Wells Fargo (NYSE:WFC) on AmeriGas (NYSE:APU), Ferrellgas (NYSE:FGP), Suburban (NYSE:SPH) and Inergy, L.P. (Nasdaq:NRGY)
Although Wells Fargo (NYSE:WFC) likes the Propane MLPs sector in general, like other MLPs subsectors, companies like AmeriGas Partners (NYSE:APU), Ferrellgas Partners (NYSE:FGP), Suburban Propane Partners, L.P. (NYSE:SPH) and Inergy, L.P. (Nasdaq:NRGY) are mixed in their outlook.
Wells said, "We are increasing valuation range for APU to $39 to $41 from $36 to $38 and adjusting our DCF estimates for AmeriGas Partners and Ferrellgas Partners. We are downgrading Suburban Propane Partners, L.P. to Market Perform from Outperform based on valuation. Our top Outperform pick in this subsector is Inergy, L.P."
AmeriGas Partners closed Thursday at $46.10, losing $0.04, or 0.09 percent. Ferrellgas Partners ended up at $25.97, gaining $0.09, or 0.35 percent. Suburban Propane Partners closed down to $55.72, falling $0.77, or 1.36 percent. Favorite Inergy closed up at $41.37, gaining $0.17, or 0.41 percent.
Wells said, "We are increasing valuation range for APU to $39 to $41 from $36 to $38 and adjusting our DCF estimates for AmeriGas Partners and Ferrellgas Partners. We are downgrading Suburban Propane Partners, L.P. to Market Perform from Outperform based on valuation. Our top Outperform pick in this subsector is Inergy, L.P."
AmeriGas Partners closed Thursday at $46.10, losing $0.04, or 0.09 percent. Ferrellgas Partners ended up at $25.97, gaining $0.09, or 0.35 percent. Suburban Propane Partners closed down to $55.72, falling $0.77, or 1.36 percent. Favorite Inergy closed up at $41.37, gaining $0.17, or 0.41 percent.
Wells Fargo (NYSE:WFC) Looks at NuStar (NYSE:NSH), Energy Transfer (NYSE:ETE) for General Partner MLPs
Wells Fargo (NYSE:WFC) gave a large overview of the general MLPs sector, including large and small caps, and others. They also looked at General Partner MLPs in general, and NuStar GP Holdings, LLC (NYSE:NSH) and Energy Transfer Equity, L.P. (NYSE:ETE) in particular.
Wells said, "We are increasing valuation ranges across our general partner MLP coverage universe by an average of 2%. Our revised valuation ranges suggest median total return potential of 1% for the subsector. On average, we are lowering our 2011 DCF per unit estimates for GP MLPs by 4%. We are downgrading NuStar GP Holdings, LLC to Market Perform from Outperform based on valuation. Our top Outperform picks in this subsector is Energy Transfer Equity, L.P."
NuStar closed Thursday at $33.53, dropping $0.56, or 1.64 percent. Energy Transfer closed at $38.89, losing $0.13, or 0.33 percent. Trading volume for both companies was down from the daily 3-month average.
Wells said, "We are increasing valuation ranges across our general partner MLP coverage universe by an average of 2%. Our revised valuation ranges suggest median total return potential of 1% for the subsector. On average, we are lowering our 2011 DCF per unit estimates for GP MLPs by 4%. We are downgrading NuStar GP Holdings, LLC to Market Perform from Outperform based on valuation. Our top Outperform picks in this subsector is Energy Transfer Equity, L.P."
NuStar closed Thursday at $33.53, dropping $0.56, or 1.64 percent. Energy Transfer closed at $38.89, losing $0.13, or 0.33 percent. Trading volume for both companies was down from the daily 3-month average.
Wells Fargo (NYSE:WFC) Looks at Chesapeake (Nasdaq:CHKM), DCP (NYSE:DPM), Regency (Nasdaq:RGNC), Western (NYSE:WES), Crosstex (Nasdaq:XTEX), Atlas (N
Wells Fargo (NYSE:WFC) took an overall look at the MLPs industry, including Gathering & Processing MLPs' Chesapeake Midstream (Nasdaq:CHKM), DCP Midstream (NYSE:DPM), Regency Energy Partners, L.P. (Nasdaq:RGNC), Western Gas Partners (NYSE:WES), and Crosstex Energy (Nasdaq:XTEX), and lowering our estimates for Atlas Pipeline (NYSE:APL), Copano Energy (Nasdaq:CPNO), MarkWest Energy (NYSE:MWE), and Targa Resources (NYSE:NGLS).
Here's how sized up the group of companies in general: "We are updating our models to reflect actual commodity prices in Q3’10, our revised commodity price deck, and the impact of recent acquisitions/financings. For 2010, we are lowering our DCF per unit estimates by an average of 1%. For 2011, we are raising our DCF per unit estimates for Chesapeake Midstream, DCP Midstream, RGNC, Western Gas Partners, and Crosstex Energy, and lowering our estimates for Atlas Pipeline, Copano Energy, MarkWest Energy, and NGLS."
Their favorite pick in the subsector, is Regency Energy Partners, L.P.
Targa closed Thursday at $28.66, down $0.81, or 2.76 percent. Chesapeake Midstream was slightly lower at $27.08, losing $0.03, or 0.11 percent. DCP Midstream fell to $35.34, dropping $0.44, or 1.23 percent. Regency closed at $24.75, losing $0.17, or 0.68 percent. Western Gas Partners lost $0.33, closing at $28.79, down 1.13 percent. Crosstex Energy closed at just above level, gaining a penny, or 0.07 percent. Atlas Pipeline Partners ended the session at $19.49, falling $0.34, or 1.71 percent. Copano Energy also closed a little above level, gaining $0.04, or 0.14 percent. MarkWest Energy decreased to $38.05 on the day, falling $0.35, or 0.91 percent. Targa ended the trading day at $28.66, losing $0.81, or 2.76 percent.
Here's how sized up the group of companies in general: "We are updating our models to reflect actual commodity prices in Q3’10, our revised commodity price deck, and the impact of recent acquisitions/financings. For 2010, we are lowering our DCF per unit estimates by an average of 1%. For 2011, we are raising our DCF per unit estimates for Chesapeake Midstream, DCP Midstream, RGNC, Western Gas Partners, and Crosstex Energy, and lowering our estimates for Atlas Pipeline, Copano Energy, MarkWest Energy, and NGLS."
Their favorite pick in the subsector, is Regency Energy Partners, L.P.
Targa closed Thursday at $28.66, down $0.81, or 2.76 percent. Chesapeake Midstream was slightly lower at $27.08, losing $0.03, or 0.11 percent. DCP Midstream fell to $35.34, dropping $0.44, or 1.23 percent. Regency closed at $24.75, losing $0.17, or 0.68 percent. Western Gas Partners lost $0.33, closing at $28.79, down 1.13 percent. Crosstex Energy closed at just above level, gaining a penny, or 0.07 percent. Atlas Pipeline Partners ended the session at $19.49, falling $0.34, or 1.71 percent. Copano Energy also closed a little above level, gaining $0.04, or 0.14 percent. MarkWest Energy decreased to $38.05 on the day, falling $0.35, or 0.91 percent. Targa ended the trading day at $28.66, losing $0.81, or 2.76 percent.
Wells Fargo (NYSE:WFC) on Genesis (NYSE:GEL), TC Pipeline (Nasdaq:TCLP) and Holly Energy (NYSE:HEP)
Commenting on the small cap pipeline MLPs, Wells Fargo (NYSE:WFC) gave their input on Holly Energy Partners, L.P. (NYSE:HEP) and TC Pipeline Partners, L.P. (Nasdaq:TCLP) and Genesis Energy, L.P. (NYSE:GEL)."
"We are increasing valuation ranges for GEL to $25 to $27 from $24 to $26 and for TLP to $33 to $35 from $32 to $34. We are also adjusting our DCF estimates for GEL, HEP and TCLP. Our revised valuation ranges suggest median total return potential of 13% for the subsector. We are downgrading Holly Energy Partners, L.P. and TC Pipeline Partners, L.P. to Underperform from Market Perform based on valuation. Our top Outperform pick in this subsector is Genesis Energy, L.P."
Holly Energy closed down $50.89 Thursday, falling $1.36, or 2.60 percent. TC Pipelines finished the trading day at $47.66, dropping $1.23, or 2.52 percent. Genesis also finished down, ending at $25.01, losing $0.19, or 0.75 percent.
"We are increasing valuation ranges for GEL to $25 to $27 from $24 to $26 and for TLP to $33 to $35 from $32 to $34. We are also adjusting our DCF estimates for GEL, HEP and TCLP. Our revised valuation ranges suggest median total return potential of 13% for the subsector. We are downgrading Holly Energy Partners, L.P. and TC Pipeline Partners, L.P. to Underperform from Market Perform based on valuation. Our top Outperform pick in this subsector is Genesis Energy, L.P."
Holly Energy closed down $50.89 Thursday, falling $1.36, or 2.60 percent. TC Pipelines finished the trading day at $47.66, dropping $1.23, or 2.52 percent. Genesis also finished down, ending at $25.01, losing $0.19, or 0.75 percent.
Thursday, September 16, 2010
Wells Fargo (NYSE:WFC) Raises Halliburton (NYSE:HAL) Earnings, Valuation
Wells Fargo (NYSE:WFC) increased its valuation and earnings outlook on Halliburton (NYSE:HAL) today, while maintaining their "Outperform" on them.
"We are increasing our 3Q10 estimate of recurring net income to $0.62 per share from $0.54 per share due to higher North American profit guidance offered by the company at an investor presentation. We are increasing our 2010 and 2011 estimates to $2.05 and $2.69, respectively, from $1.91 and $2.45," said Wells.
A price target range was increased from $35-37 to $37-39.
This seems to imply they don't think there will be huge liabilities for Halliburton resulting from the BP oil spill.
"We are increasing our 3Q10 estimate of recurring net income to $0.62 per share from $0.54 per share due to higher North American profit guidance offered by the company at an investor presentation. We are increasing our 2010 and 2011 estimates to $2.05 and $2.69, respectively, from $1.91 and $2.45," said Wells.
A price target range was increased from $35-37 to $37-39.
This seems to imply they don't think there will be huge liabilities for Halliburton resulting from the BP oil spill.
Monday, September 13, 2010
Wells Fargo (NYSE:WFC) Initiates Coverage on Oasis Petroleum (NYSE:OAS)
Oasis Petroleum (NYSE:OAS) is now being covered by banking giant Wells Fargo (NYSE:WFC), where they were started off with an "Outperform."
"Following its recent IPO, Oasis is uniquely positioned among small-cap E&Ps as being a well-funded, high-growth, oil-dominated company. We believe its shares will continue to fare well as long-term oil fundamentals remain widely preferred with E&P investors. Our NAV estimate for OAS is $22.11/share, offering roughly 23 percent potential upside from current market levels," said the Wells analyst.
They also have a valuation range on Oasis from $21 to $23.
Through its subsidiary, Oasis Petroleum LLC, Oasis Petroleum participates in the acquisition and development of oil and natural gas resources primarily in the Williston Basin.
"Following its recent IPO, Oasis is uniquely positioned among small-cap E&Ps as being a well-funded, high-growth, oil-dominated company. We believe its shares will continue to fare well as long-term oil fundamentals remain widely preferred with E&P investors. Our NAV estimate for OAS is $22.11/share, offering roughly 23 percent potential upside from current market levels," said the Wells analyst.
They also have a valuation range on Oasis from $21 to $23.
Through its subsidiary, Oasis Petroleum LLC, Oasis Petroleum participates in the acquisition and development of oil and natural gas resources primarily in the Williston Basin.
Wells Fargo (NYSE:WFC) Initiates Coverage on Chesapeake Midstream (NYSE:CHKM)
Chesapeake Midstream Partners (NYSE:CHKM) has captured a lot of attention from the financial world recently, with Wells Fargo (NYSE:WFC) being the latest to initiate coverage on them, starting off with a "Market Perform" rating.
"CHKM has 100% fee-based cash flow and visible growth prospects tied to its GP's drilling plans and potential drop-down opportunities. We forecast a five-year distribution compound annual growth rate (CAGR) of 9.3%, assuming average annual (1) acquisitions of $300 million and (2) growth capex of $510 million. However, CHKM's attractive attributes and above-average growth profile appear fairly reflected in the current valuation, in our view. Approximately 80% of CHKM's distribution is tax deferred," said the Wells analyst.
Other companies recently initiating coverage on Chesapeake Midstream are UBS (NYSE:UBS), who started them with a "Buy"; Goldman Sachs (NYSE:GS) and Bank of America (NYSE:BAC), with a "Neutral"; and Barclays (NYSE:BCS) with an "Overweight."
Chesapeake Midstream Partners is a provider of natural gas gathering and processing services.
"CHKM has 100% fee-based cash flow and visible growth prospects tied to its GP's drilling plans and potential drop-down opportunities. We forecast a five-year distribution compound annual growth rate (CAGR) of 9.3%, assuming average annual (1) acquisitions of $300 million and (2) growth capex of $510 million. However, CHKM's attractive attributes and above-average growth profile appear fairly reflected in the current valuation, in our view. Approximately 80% of CHKM's distribution is tax deferred," said the Wells analyst.
Other companies recently initiating coverage on Chesapeake Midstream are UBS (NYSE:UBS), who started them with a "Buy"; Goldman Sachs (NYSE:GS) and Bank of America (NYSE:BAC), with a "Neutral"; and Barclays (NYSE:BCS) with an "Overweight."
Chesapeake Midstream Partners is a provider of natural gas gathering and processing services.
Friday, September 10, 2010
Noble (NYSE:NE) Upgraded by Credit Agricole
Noble Corp (NYSE:NE) is coming back into favor with some analysts and investors, and one of them is Credit Agricole, who upgraded Noble from "Underperform" to "Outperform. The also increased their price target from $32 to $39 a share.
Wells Fargo (NYSE:WFC) also showed interest in Noble recently, initiating coverage on them a couple of days ago.
Barron’s Jay Palmer also wrote an article in support of Noble several days ago, saying the company has positioned itself strongly in deepwater drilling, which will increasingly become a major source of oil and gas in emerging markets, including China.
Noble also has operations spread across the globe, lessening the impact of moratorium in the Gulf of Mexico.
Palmer gave this as a reason Noble remains negative to investors:
"One reason why Noble remains out of favor with investors is the company’s move this summer to purchase Frontier Drilling for $2.16 billion, money that investors would rather have seen distributed as a special dividend. The move, however, was quite canny, immediately doubling Noble’s backlog and adding seven rigs to its fleet. The deal also boosted the portion of revenue coming from deepwater rather than shallow-water operations, and deepwater is where the future action is."
Noble closed Thursday at $34.40, down $0.05, or 0.15 percent. Trading volume was low.
Wells Fargo (NYSE:WFC) also showed interest in Noble recently, initiating coverage on them a couple of days ago.
Barron’s Jay Palmer also wrote an article in support of Noble several days ago, saying the company has positioned itself strongly in deepwater drilling, which will increasingly become a major source of oil and gas in emerging markets, including China.
Noble also has operations spread across the globe, lessening the impact of moratorium in the Gulf of Mexico.
Palmer gave this as a reason Noble remains negative to investors:
"One reason why Noble remains out of favor with investors is the company’s move this summer to purchase Frontier Drilling for $2.16 billion, money that investors would rather have seen distributed as a special dividend. The move, however, was quite canny, immediately doubling Noble’s backlog and adding seven rigs to its fleet. The deal also boosted the portion of revenue coming from deepwater rather than shallow-water operations, and deepwater is where the future action is."
Noble closed Thursday at $34.40, down $0.05, or 0.15 percent. Trading volume was low.
Thursday, September 9, 2010
Wells Fargo (NYSE:WFC) Initiates Coverage of Transocean (NYSE:RIG)
In the midst of the war of words with BP (NYSE:BP), Transocean (NYSE:RIG) has garnered the interest of Wells Fargo (NYSE:WFC), which has initiated coverage on the oil rig supplier.
Wells started Transocean off with an "Outperform," and a valuation range of $70-72.
The Wells Fargo analyst said, "We believe RIG has been oversold as a result of the uncertainty of direct and indirect liabilities stemming from the Macondo oil spill, estimating the current price incorporates over $5B in liabilities; we think it will be less than $1B. RIG is trading at a 20% discount to our NAV estimate including a $1B spill liability."
This would imply BP is going to take the brunt of the liabilities thought to be shared with Transocean and other oil companies having a connection to the Gulf oil spill.
Wells started Transocean off with an "Outperform," and a valuation range of $70-72.
The Wells Fargo analyst said, "We believe RIG has been oversold as a result of the uncertainty of direct and indirect liabilities stemming from the Macondo oil spill, estimating the current price incorporates over $5B in liabilities; we think it will be less than $1B. RIG is trading at a 20% discount to our NAV estimate including a $1B spill liability."
This would imply BP is going to take the brunt of the liabilities thought to be shared with Transocean and other oil companies having a connection to the Gulf oil spill.
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