Thursday, December 18, 2014

Place Permian Basin Pure-Play Concho Resources on the Watch List

This article was originally published by TheStreet on November 25, 2014
By Sarfaraz A. Khan
NEW YORK (TheStreet) -- Concho Resources (CXO) is a rare energy stock that remains unswayed, despite more than 20% drops in benchmark West Texas Intermediate and Brent crude prices over the past three months.
The Midland, Texas-based company has planned to accelerate its production growth next year from its properties in the prolific Permian Basin of West Texas and Southeastern New Mexico. 

Wednesday, December 17, 2014

Bonanza Creek Energy Well-Positioned to Weather Low Oil Prices

This article was originally published by TheStreet on November 21, 2014. 
By Sarfaraz A. Khan
NEW YORK (TheStreet) -- Deteriorating crude oil prices could slow down Bonanza Creek Energy (BCEI) , which has been growing its oil and gas production twice as fast as the industry's average. But the company's low-cost asset base puts it in a good position to weather a tough market.
Bonanza Creek increased production at an average annual rate of 84% between 2010 and 2013 and has a production growth target of almost 50% for 2014, says James Masters, investment relations manager at the company.

Tuesday, December 16, 2014

Why Encana’s Gas-to-Oil Transition Isn't Threatened by Price Drop

This article was originally published by TheStreet on November 21, 2014. 
By Sarfaraz A. Khan. Research Asst. Omar E. 
NEW YORK (TheStreet) -- Two years ago, Encana (ECA) , which became Canada's largest gas producer by drilling wells in more than 25 different areas, said that it was going to focus on just five higher-margin oil and natural-gas-liquid-rich regions.
It has continued that transition and, despite double-digit drops in crude prices over the last three months, is not slowing down.
This year, the Calgary company purchased properties from Freeport-McMoRan Copper & Gold (FCX) for $3.1 billion and acquired Athlon Energy (ATHL) for $7.1 billion. Both of these purchases were revealed at a time when WTI crude oil prices were trading at over $90 a barrel, compared with current levels of around $76 a barrel.

This Offshore Drilling Stock May Thrive Despite Falling Oil Prices

This article was originally published by TheStreet on November 20, 2014
By Sarfaraz A. Khan. Research Asst. Daniel L. 
NEW YORK (TheStreet) -- The offshore drilling market has been struggling with overcapacity and falling crude oil prices, but Atwood Oceanics (ATW) is a rare gem that could see double-digit revenue growth.
In an email to TheStreet, Mark Mey, Atwood's chief financial officer said the offshore driller is one of only two expected to grow revenue and earnings per share into 2016. Mey didn't mention the name of the other driller, but it's likely Houston-based Rowan Companies (RDC) , which has forecast revenue growth for 2015. Goldman Sachs analyst Waqar Syed said in a November report that this will lead to higher earnings for Rowan.

Monday, December 15, 2014

TransCanada's Future Isn't Wrecked by Defeat of Keystone XL

This article was originally published by TheStreet on November 19, 2014.
By Sarfaraz A. Khan
NEW YORK (TheStreet) -- The fate of TransCanada's (TRP) controversial Keystone XL pipeline is still in limbo as the U.S. Senate rejected by just one vote a bill seeking approval to begin construction. But the defeat in the Senate isn't the end of the world for Canada's second-biggest pipeline maker.
The Calgary-based company has been waiting for six years for approval from U.S. policy makers on the project, which aims to ship up to 830,000 barrels of heavy oils a day produced from Canadian tar sands to the refineries at the U.S. Gulf Coast. Had the Senate approved the pipeline, President Obama, who was not in favor of the approval until the State Department completed its review, could still have vetoed the legislation. 

Tuesday, December 9, 2014

How Falling Oil Prices Are Hurting Denbury Resources' Earnings View

This article was originally published by TheStreet on November 18, 2014. 
By Sarfaraz A. Khan
NEW YORK (TheStreet) -- Denbury Resources (DNR) is the latest oil producer to cut its spending plans for next year in the face of deteriorating crude oil prices, and this could bring an end to the company's production and earnings growth.
On Friday, the Plano, Texas-based company, which generates a majority of oil and gas from theGulf Coast region of Mississippi, Texas, Louisiana and Alabama, said it will cut its capital spending next year by 50% to $550 million. Further, Denbury said its production will largely be flat in 2015 as compared to 2014, at around 74,500 barrels of oil equivalents a day.

Continental Resources Takes Daring Move Despite Commodity Price Risk

This article was originally published by TheStreet on November 15, 2014.

By Sarfaraz A. Khan. Research Asst. Omar E.

NEW YORK ( TheStreet) -- As oil prices continue to deteriorate, with the benchmark American WTI and European Brent crudes dropping to their lowest four-year levels on Thursday,Continental Resources (CLR) has done the unthinkable.  The Oklahoma-based oil company is  selling all of its crude oil hedges through 2016, making the company even more exposed to commodity price risk.
How could Continental even consider such a move?

BP Could Be Up for Grabs, but Who Can Buy the British Oil Behemoth?

This article was originally published by TheStreet on November 14, 2014
By Sarfaraz A. Khan. Research Asst. Omer E. 
NEW YORK (TheStreet) -- As mergers and acquisitions go, the energy industry has seen some of the biggest, from the $80 billion merger between Exxon and Mobil in 1998 to the $15.1 billion takeover of Canada's Nexen by China's CNOOC (CEO) in 2012. With the recent double-digit drop in crude prices, another acquisition could be on the horizon, this time, of European oil giant BP (BP) .

Monday, December 8, 2014

Pioneer Natural Resources Goes Where Others Don’t in Tough Market

This article was originally published by TheStreet on November 12, 2014
By Sarfaraz A. Khan. Research Asst. Daniel L. 
NEW YORK (TheStreet) -- As oil producers mull scaling back their operations in the face of a double-digit drop in oil prices, Pioneer Natural Resources (PXD) has gone the other way by ramping up its 2014 capital spending budget, and analysts are expecting further increases for next year.
Pioneer released third-quarter results last week that were better than the market's expectations, as per data compiled by Thomson Reuters.

Saturday, December 6, 2014

Laredo Asset Sales Could Go a Long Way in Fixing Big Debt

This article was originally published by TheStreet on November 11, 2014
By Sarfaraz A. Khan
NEW YORK (TheStreet) -- Laredo Petroleum  (LPI) has managed to walk a tight-wire -- keeping up profit and revenue growth strong amid plunging oil prices, and now, the company may lift its shares and ease liquidity concerns, too -- by selling off assets.