Energy/Shipping
Utilities led the overall market as a defensive play. The UTY closed up 1.71%. Crude fell 1.87% as the consumer confidence weighed on the market. Oil is also running into technical resistance around the $80 level. After outperforming yesterday, the solar stocks lagged with TAN -2.44%. RRC dragged down the E&P group after reporting disappointing earnings. Sellers took profits in the MLP stocks as AMJ closed down 2.44%. There has been a big run in the MLP names and we are starting to see more supply at these levels. The Baltic Dry Index continued to move higher; however most drybulk shippers were lower with the overall market. EXM outperformed the group closing +2.6%, but is running into some technical resistance at its 200 day of 6.14.
· BP Oil From Spill Is Biodegrading, Easing Threat to East Coast
· Washington Post says federal criminal oil spill probe to focus on BP, Transocean and Halliburton
· Congress Moves to Restrict Drilling Without Curbing Carbon
| Today's Energy/Shipping Stories | |
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Macro/Technicals
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Active Names
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Sector News, M&A, Capital Raises
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Research Away
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Top Events/Earnings Calendar
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Macro/Technicals
SP500 : 1110.10; -.07Crude : 77.28; -0.28
Gas : 4.70; 0.53
Leaders: VTG +16.96, PURE +8.33%, XTXI +6.16%, HRZ +4.94%, EPL+2.8%
Laggards: OCNF-14.18%, PCX-9.29%,ESA-7.74%,JASO-6.94%%,RRC-6.99%
Active Names
Oil & Gas: APA, ATLS, CLR, NKA, NR, PVA, VTG, WG
Shipping: BALT
Utilities: RRI, SWWC
Sector News, M&A, Capital Raises
BP Washington Post says federal criminal oil spill probe to focus on BP, Transocean and Halliburton
BP Great news.... BP Oil From Spill Is Biodegrading, Easing Threat to East Coast
The oil slick in the Gulf of Mexico appears to be dissolving far more rapidly than anyone expected, a piece of good news that raises tricky new questions about how fast the government should scale back its response to the Deepwater Horizon disaster. NYT, BBG
probably eliminating the risk that crude will go around Florida and hit the U.S. East Coast, the National Oceanic and Atmospheric Administration said
U.S. Decision on Pipeline Is Delayed – NYT
The State Department said it would delay its decision on a permit for a contentious $7 billion pipeline project intended to deliver crude oil from the oil sands of the province of Alberta in Canada, to refineries on the Texas Gulf Coast.
http://www.nytimes.com/2010/07/28/business/energy-environment/28keystone.html?_r=1&ref=todayspaper
Congress Moves to Restrict Drilling Without Curbing Carbon – BBG
Congressional Democrats proposed tougher rules for offshore drilling in response to the worst oil spill in U.S. history, while spurning calls to place a price on carbon emissionsHouse and Senate leaders presented legislation yesterday rewriting oil and natural-gas drilling rules more than three months after a rig leased by BP Plc exploded in the Gulf of Mexico. The bills would strengthen safety and environmental standards for exploration in federal waters, give Congress direct oversight of offshore energy production, and require companies that cause spills to pay all damages.
Centrica, the British Gas owner, fell 6.3p to 301.4p even though profits nearly doubled while its former associate BG is down 8p at £10.55.
HES Hess Corporation to acquire American Oil & Gas (AEZ) in all stock deal ($53.30)
Hess will issue 0.1373 shares for each share of AEZ, representing a 9.4% premium to the closing price on 27-July. It is expected that Hess will issue approx 8.6M shares. The deal will add to Hess' position in the Bakken Shale by approx 85K net acres. The deal requires the approval of AEZ shareholders, approx 20.5% of the shares have agreed to vote in favor of the deal. Completion of the merger is expected in 4Q.
GLBL Global Industries awarded $40M pipeline project in Pemex's Bay of Campeche Ku-Maloob-Zaap field
MMP Magellan Midstream Partners announces long-term pipeline throughput agreement, $65M expansion of Texas storage capacity
OKS ONEOK Partners LP announces expansion of Sterling pipeline ($69.58)
Company announces that it plans to install seven additional pump stations for approximately $36M along its existing Sterling I NGL pipeline, increasing its capacity by 15K barrels per day
Research Away
Jefferies
PNM PNM Resources downgraded to underperform from hold at Jefferies Target reduced to $10 from $12. The company notes growing opposition to the company's rate request for the downgrade of the shares.
Morgan Stanley
Morgan Stanley upgrades RDC; downgrades ESV, NE, PDE
Upgrade:
Rowan Companies (RDC) upgraded to overweight from equal-weight; target increased to $40 from $30
Downgrade:
Ensco PLC (ESV) downgraded to underweight from overweight; target cut to $57 from $60
Noble Corp (NE) downgraded to underweight from overweight; target cut to $35 from $55
Pride International (PDE) downgraded to underweight from equal-weight; target cut to $25 from $35
UBS
DPM DCP Midstream Partners downgraded to neutral from buy at UBS Target remains $34. Firm cites valuation.
Canaccord Genuity
RRC Range Resources downgraded to hold from buy at Canaccord Genuity Target is $41. Firm is cautious on the natural gas market over the next 12 months and the company's strategy of accelerating growth.
Top Events/Earnings Calendar
during-mkt EGN earnings (confirmed)call at: 10:30, 29-Jul-10 888.818.6237, webcast
post-mkt CWT earnings (confirmed)call at: 11:00, 29-Jul-10 866.253.6505 pw:1469346, webcast
post-mkt DRC earnings (confirmed)call at: 09:00, 29-Jul-10 877.303.3199, webcast
post-mkt DRYS earnings (confirmed)call at: 08:00, 29-Jul-10 866.819.7111 pw:Dry Ships, webcast
post-mkt DVR earnings (confirmed)call at: 11:00, 29-Jul-10 866.831.6291 pw:75662803, webcast
post-mkt GLF earnings (confirmed)call at: 09:00, 29-Jul-10 877.317.6789, webcast
post-mkt GMR earnings (confirmed)call at: 10:00, 29-Jul-10 913.312.1480 pw:6826494, webcast
post-mkt HLX earnings (confirmed)call at: 10:00, 29-Jul-10 800.741.5804 pw:Tripodo, webcast
post-mkt ICO earnings (confirmed)call at: 11:00, 29-Jul-10 , webcast
post-mkt ITC earnings (confirmed)call at: 11:00, 29-Jul-10 877.644.1296, webcast
post-mkt KEG earnings (confirmed)call at: 11:00, 29-Jul-10 877.794.4637 pw:88000978, webcast
post-mkt KEX earnings (confirmed)call at: 11:00, 29-Jul-10 800.446.1671 pw:27431182, webcast
post-mkt OII earnings (confirmed)call at: 11:00, 29-Jul-10 , webcast
post-mkt PXD earnings (confirmed)call at: 11:00, 29-Jul-10 888.298.3457 pw:2458806, webcast
post-mkt SJW earnings (confirmed)call at: 13:00, 29-Jul-10 , webcast
post-mkt SPN earnings (confirmed)call at: 12:00, 29-Jul-10 480.629.9724, webcast
post-mkt TSO earnings (confirmed)call at: 08:30, 29-Jul-10 877.407.4134 pw:00352826, webcast
post-mkt WLL earnings (confirmed)call at: 11:00, 29-Jul-10 800.299.7089 pw:89159004, webcast
post-mkt WLT earnings (confirmed)call at: 09:00, 29-Jul-10 , webcast
pre-mkt BRY earnings (confirmed)call at: 10:00, 28-Jul-10 866.770.7125 pw:95298529, webcast
pre-mkt CEG earnings (confirmed)call at: 08:30, 28-Jul-10 888.455.2894 pw:ENERGY, webcast
pre-mkt CMS earnings (confirmed)call at: 09:00, 28-Jul-10 , webcast
pre-mkt COP earnings (confirmed)call at: 11:00, 28-Jul-10 , webcast
pre-mkt D earnings (confirmed)call at: 10:00, 28-Jul-10 866.710.0179 pw:Dominion, webcast
pre-mkt HES earnings (confirmed)call at: 10:00, 28-Jul-10 800.901.5218 pw:90304140, webcast
pre-mkt PX earnings (confirmed)call at: 11:00, 28-Jul-10 617.597.5360 pw:79770262, webcast
pre-mkt RES earnings (confirmed)call at: 09:00, 28-Jul-10 888.661.5138 pw:4265781, webcast
pre-mkt SO earnings (confirmed)call at: 13:00, 28-Jul-10 877.708.7187, webcast
pre-mkt UGI earnings (confirmed)call at: 16:00, 28-Jul-10 , webcast