Thursday, April 24, 2014

Betting With Icahn on a Talisman Energy Turnaround

This article was originally published by TheStreet on April 17, 2014
By Sarfaraz A. Khan
NEW YORK (TheStreet) -- It sounds strange but Talisman Energy (TLM_) is eying growth by shrinking its asset base.
Talisman is one of the leading independent oil and gas producers from Canada. Billionaire activist investor Carl Icahn of Icahn Enterprises (IEP_) owns 7.4% of the company. Talisman has delivered a poor performance at the stock markets; its shares have dropped by 9.8% over the last 12 months and closed at $10.65 on Wednesday. Over the last two years, Talisman has not reported any revenue or earnings growth.
All of that, however, can change in the near future. Amid the management shuffle, with the entry of Icahn's representatives on the board and a CEO change due in the current year, the company is readjusting its portfolio. Talisman is selling its non-core assets and investing heavily in its high value projects in the Americas and Asia Pacific. The company's lucrative assets in Southeast Asia and its oil-rich acreage in Colombia can drive its growth over the coming years.

Wednesday, April 23, 2014

China Will Be Profit-Gusher for French Oil Company Total

This article was originally published by TheStreet on April 16, 2014.
By Sarfaraz A. Khan
NEW YORK (TheStreet) -- China and its energy market are big factors in French oil major Total's (TOT_) long-term plans. 

The company recently has struggled with growth, but it could double its liquefied natural gas, or LNG, supply to China in the coming years as it targets a 30% increase in production by 2017.
Last year, Total's sales fell 2% to $251.73 billion while profits fell 18% to $11.21 billion. The company's hydrocarbon production remained flat, at 2.3 million barrels of oil equivalents per day. But Total has forecast daily production of 2.6 million barrels of oil equivalents by 2015 as it tries to satisfy China's ever increasing energy needs.

Tuesday, April 22, 2014

Looking Beyond The Disappointing Results Of This 3-D Printing Stock

This article was originally published by GuruFocus on April 14, 2014

By Sarfaraz A. Khan and Gohar Yousuf. 
 
ExOne (XONE) has recently released its quarterly results that disappointed investors as the company swung to a surprising loss. Moreover, its forecast was also well below market’s expectations. Its shares are down 54.6% this year and closed at $27.56 on Friday.

Despite all the pessimism, the 3-D printing industry is growing at an accelerated pace, driven by strong demand from bigger enterprise buyers. ExOne is betting its future on the growth of the metals printing industry, including the replacement parts market. The company has already attracted some big enterprise customers. With the decline in prices, ExOne could attract even more clients.

Will Asset Sales Boost Occidental's Stock?

This article was originally published by TheStreet on April 14, 2014.
By Sarfaraz A. Khan and Gohar Yousuf
NEW YORK (TheStreet) -- Occidental Petroleum (OXY_) is looking to sell about 40% of its assets in the Middle East and North Africa, perhaps in the hope that a sale will help lift its stock, the way asset sales boosted the stock of Apache (APA_), another U.S.-based energy company.
Despite the asset sales, the two companies will continue to go after growth in the Middle East. Occidental will spend an additional $300 million in its core markets in the Middle East while Apache has applied for additional leases in Egypt.

Saturday, April 19, 2014

Soybean Driving Monsanto's Profits, Has 11% Upside

This article was originally published by GuruFocus on April 11, 2014. 

By Sarfaraz A. Khan. Research assistant: Gohar Yousuf. 
Amid the heated debate over the use of genetically modified ingredients, Monsanto (MON) has released its quarterly results that came in well above the analysts’ estimates.

The company has reported double digit profit growth as it continues to enjoy strong demand of corn and soybean. The highlight of the current quarter was the soybean business, its fastest growing segment, which has become as profitable as corn business. The company has forecast earnings growth of at least 10% in the current year. Analysts, on the other hand, are expecting 15% growth.

Friday, April 18, 2014

3 Small MLPs Eyeing Big Growth

This article was originally published by GuruFocus on April 11, 2014

By Sarfaraz A. Khan

The head of energy and infrastructure at Goldman Sachs has recently identified Lehigh Gas Partners (LGP), EQT Midstream Partners (EQM) and Oiltanking Partners (OILT) as three small master limited partnerships, or MLPs, with strong future growth prospects.

Over the last 52 weeks, the Alerian MLP ETF (AMLP) has risen by just 1.8% while Leigh Gas Partners, EQT Midstream and Oiltanking Partners have climbed 19%, 87% and 56% respectively.
Despite the rally, the three could continue growing on the back of significant top and bottom line growth.

Thursday, April 17, 2014

Phillips 66 Looking Beyond Refining

This article was originally published by TheStreet on April 9, 2014
By Sarfaraz A. Khan. Research  assistant: Gohar Yousuf
NEW YORK (TheStreet) -- For Phillips 66  (PSX_), will higher margins mean a higher stock price?
The energy company, which has seen a profit decline in its core refining business, is diversifying by investing more in its higher-margin midstream and chemical businesses.
This year, Phillips 66 and its joint ventures will spend $4.6 billion in capital expenditures, primarily to expand the company's midstream and chemical businesses, both of which posted higher earnings last year. Midstream is the business of transporting and processing oil.
Phillips 66's expansion in the higher margin operations will likely boost the company's profits, and investors are optimistic, as the company's shares have rise 25% over the past 52 weeks. They were recently trading at $77.82, up 26 cents.

Should Investors Be Worried About Chevron’s Profit Warning?

This article was originally published by GuruFocus on April 10, 2014

By Sarfaraz A. Khan. Research assistant: Gohar Yousuf

Yesterday, America’s second biggest oil and gas company Chevron (CVX) issued a profit warning for the first quarter of the current fiscal year. Does this mean that the investors should start panicking?

Tuesday, April 15, 2014

Stay Away From CVR Refining

This article was originally published by TheStreet  on April 08, 2014
By Sarfaraz A. Khan
NEW YORK (TheStreet) -- An attractive yield isn't everything. Here's why you should stay away from CVR Refining (CVRR_).
CVR Refining is a limited partnership and the refining arm of CVR Energy (CVII_), which, in turn, is mainly a holding company that is also engaged in fertilizer manufacturing operations through CVR Partners (UAN_). CVRR offers attractive yield of 7.80% and it is trading just 6.6 times its trailing earnings. But this $3.4 billion market-cap company is not without risks.

Monday, April 14, 2014

Should You Buy Into Anadarko's Rally?

This article was originally published by TheStreet on April 7, 2014
By Sarfaraz A. Khan

NEW YORK (TheStreet) -- Shares of Anadarko Petroleum  (APC_) have rallied about 16% since last Thursday when news broke that the energy company reached a record $5.15 billion settlement in an environmental case.

The question now is whether the stock has more upside.