Tuesday, November 25, 2014

What’s Next for Chesapeake Energy Following Its Huge Asset Sale?

This article was originally published by TheStreet on October 28, 2014
By Sarfaraz A. Khan
NEW YORK (TheStreet) -- Chesapeake Energy (CHK) , the second-largest natural-gas and 10th-largest oil producer in the United States, which was on the brink of bankruptcy just two years ago, has found a way to fix its high levels of debt and also possibly take advantage of weak oil prices to make a major acquisition.
The Oklahoma City-based company became one of the biggest players in the U.S. natural-gas sector on the back of the shale gas boom, but its growth was driven largely by debt.

Nabors Industries Drills Deep Into Oil Market Despite Fall in Prices

This article was originally published by TheStreet on October 27, 2014. 
By Sarfaraz A. Khan. Research Asst: Omar E. 
NEW YORK (TheStreet) -- Nabors Industries (NBR) , the owner of the world's biggest fleet of land-based drilling rigs, can increase earnings more than 45% this year and next year despite tumbling oil prices through a combination of selling non-core assets, international sales and providing rigs to oil companies looking to dig where they can make to the most money now. 
Nabors' third-quarter results last week included revenue of $1.81 billion, 17% higher than the same quarter last year, and earnings that swung from a loss of 30 cents a share to a profit from continuing operations of 19 cents a share, beating estimates compiled by Thomson Reuters. Nabors was helped by strong levels of activity in North Dakota's Bakken shale and Texas's Permian Basin.

Monday, November 24, 2014

Tumbling Oil Prices Pose a Major Challenge to Halliburton

This article was originally published by TheStreet on October 24, 2014
By Sarfaraz A. Khan. Research Asst: Omar E. 
NEW YORK (TheStreet) -- Oilfield services giant Halliburton (HAL) is optimistic about its future, despite the tumbling crude prices, but analysts see a major challenge ahead with a possibility of oil falling to $75 a barrel in 2015.
The Houston-based company released its third-quarter results on Monday showing revenue climbed by 16% from the same quarter last year to $8.7 billion due to higher drilling activity in North America and strong growth in international markets. Halliburton's net income, excluding one-time items, rose 43% from last year to $1.19 a share, thanks to more than 30% increase in adjusted operating income from North America.

Struggling Emerge Energy Is Ready to Soar on Oil Price Recovery

This article was originally published by TheStreet on October 24, 2014
NEW YORK (TheStreet) -- Oil prices have tanked this month to multi-year lows, but if they bounce back, Emerge Energy Services (EMES) could be one of the master limited partnerships that would offer "the largest price appreciation," wrote Citigroup in an Oct. 15 research report led by Faisel Khan.
Emerge Energy runs two unrelated businesses: fracking sand production and fuel processing and distribution. The fracking sand is used as a proppant to keep hydraulic fracture open in shale oil and gas wells to ensure continuous flow of hydrocarbons. Besides Emerge Energy, this sand is also produced by U.S. Silica (SLCA) and Hi-Crush Partners (HCLP) .

Saturday, November 22, 2014

How to Tell If Cimarex Energy is a Gusher Waiting to Erupt

This article was originally published by TheStreet on October 23, 2014
By Sarfaraz A. Khan. Research Asst: Daniel L.
NEW YORK (TheStreet) -- Oil and gas producer Cimarex Energy (XEC)  is gearing up to report its third quarter results on Nov. 4 and savvy investors may want to take a pass on the stock -- for now.

Cimarex is an exploration and production company that gets around three-quarters of its production from the prolific Permian Basin in West Texas. However, unlike other Permian Basin oil producers, such as, Energen (EGN) , Diamondback Energy (FANG) and Pioneer Natural Resources (PXD) , Cimarex is heavily weighted toward natural gas. Roughly half of Cimarex's total production output comes from natural gas, while oil and natural gas liquids comprise the rest.

Wednesday, November 19, 2014

Energen Hedges Bet In Difficult Oil Pricing Environment

This article was originally published by TheStreet on October 22, 2014. 

By Sarfaraz A. Khan. Research Asst: Daniel L. 

NEW YORK (TheStreet) -- Energen  (EGN)  will likely miss Wall Street's cash flow and oil production estimates when it reports its third quarter results next week, but investors shouldn't be concerned. That's because the Alabama-based energy company is actually better positioned to defend itself against slumping oil prices than its competitors and has plans for growth.

MarkWest Energy Ready to Deliver Double-Digit Distribution Growth

This article was originally published by TheStreet on October 21, 2014.
By Sarfaraz A. Khan. Research Asst. Daniel L. 
NEW YORK (TheStreet) -- MarkWest Energy Partners (MWE) , a master limited partnership engaged in gathering, processing and transportation of natural gas and natural-gas liquids, has reduced its exposure to commodity prices to the lowest levels ever.
Oil prices have fallen by more than 10% in the past four weeks, hitting the stock market, particularly the energy sector.
"MarkWest has been similarly impacted," Joshua Hallenbeck, the company's vice president of finance and treasurer, wrote in an email.

EQT Midstream Is Poised to Deliver Double-Digit Distribution Growth

This article was originally published by TheStreet on October 17, 2014
NEW YORK (TheStreet) -- EQT Midstream Partners (EQM) , a master limited partnership created by EQT Corporation (EQT) , is positioning to post the highest distribution growth rate as compared to other gathering and processing MLPs covered by Goldman Sachs, thanks to organic growth and dropdown of assets from its parent, said Goldman Sachs reports prepared by analysts, including Jerren Holder.
The partnership's units have dropped by 12.8% since the beginning of September, which, Holder said, is due to profit taking by some investors and reallocation of funds by others, rather than any negative news. EQT Midstream will report earnings on Thursday.

Why Cheniere Energy Is Insulated From the Oil Price Slump

This article was originally published by TheStreet on October 17, 2014
NEW YORK (TheStreet) -- Cheniere Energy (LNG) , the first U.S. company to receive regulatory approval for export of liquefied natural gas to countries that do not have a free trade agreement with the U.S., is largely protected from tumbling oil prices. Yet its stock has suffered along with other energy shares in response to weakening oil prices.

Dominion Resources Sees Future Tied to Foreign Liquified Gas Buyers

This article was originally published by TheStreet on Oct. 16, 2014
NEW YORK (TheStreet) -- Dominion Resources (D)  is working to sell more liquefied natural gas to foreign buyers as a way of expanding into the export business.
The Virginia-based power and energy company is competing against several U.S. companies that want to expand exports, including Cheniere Energy (LNG) . So it's in Dominion's interest to increase exports by signing long-term agreements with buyers to use the LNG facility it's building in the Maryland even if those buyers later resell some or all of that product. Those foreign buyers include Japan's Tokyo Gas (TKGSY) and India's GAIL (GAILF) .