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May 22, 2012 3:54 AM EDT
Updated: Jul 30, 2010 12:05 PM EDT  

Energy/Shipping

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News and Views

 

Oil service stocks led the energy sector with positive earnings by DRC and OII.  The OSX closed up 1.4%.  Utilities lagged with the UTY down 1.62%. CEG led the decline after reporting an earnings miss.  SUN reported a good number after the close.  SUN has far outperformed the group all year up about 32% YTD.  BBG led E&P stocks on big volume after getting approval for their Utah natural gas project.  FSLR reported earnings after the close.  It was weak in after hours trading after they lowered their revenue guidance for 2010 and lowered their capex and cash flow guidance (see Dale Pfau’s notes below). 


Macro/Technicals

SP500 : 1092.40; -.42
Crude : 77.80; -.70
Gas : 4.853; +.54
XLE : 53.95; +.15
UTY : 410.66; -1.62
OIH : 105.31; +0.79
TAN : 7.88; -0.64
AMJ : 32.52; +1.71

Leaders: CEP +9.17%, BBG +8.72%, CLNE +8.72%, OII +8.01%, GSL 4.26%
Laggards: HLX-8.25%, KEX-8.07%, DSTI-7.39%, CQP-6.32%, ACLI-4.76%

Active Names

 

Oil & Gas:   APL, BBG, CHK, CHKM, COP, GIFI, HES, MHR, MILL, RRC, WG, WRES                                 

Solar:   FSLR, TSL    

                      

Utilities:   CLNE, TEG   

 


Earnings

 

UPL Ultra Petroleum reports Q2 EPS $0.54 vs Reuters $0.50 ($43.70)
Company reports revenues of $228.4M vs Reuters $255.9M

AEP American Electric Power reports Q2 EPS $0.74 ex-items vs Reuters $0.69 ($36.10)
Reaffirms full year EPS guidance of $2.80-3.20 vs Reuters $3.02.

CPN Calpine reports Q2 EPS ($0.25) and may not be comparable to Reuters $0.06 ($13.67)

Adjusted EBITDA reported $663M with adjusted free cash flow of $104M.

Guides full year adjusted EBITDA to $1.65B-$1.725B vs. prior $1.625B-$1.725B

SUN Sunoco reports Q2 EPS $1.31 ex-items vs Reuters $0.77

EDE Empire District Electric reports Q2 EPS $0.18 vs Reuters $0.24 ($19.90)
Company reports revenues of $114.5M vs Reuters $116.9M.

GIFI Gulf Island Fabrication reports Q2 EPS $0.24 vs Reuters $0.24 ($17.72)

Company reports revenues of $75.3M vs Reuters $62.0M

TTES T-3 Energy Services reports Q2 EPS $0.25 vs Reuters $0.23 ($24.74)
Company reports revenues of $48.4M vs Reuters $49.2M

DPL DPL Inc. reports Q2 EPS $0.53 vs Reuters $0.49 ($25.90)
Reaffirms f10 EPS guidance of $2.35-$2.55 vs Reuters $2.42

MXWL Maxwell Technologies reports Q2 EPS $0.02 vs Reuters ($0.02) ($10.41)
Company reports revenues of $29.6M vs Reuters $29.2M.

ALEX Alexander & Baldwin reports Q2 EPS $0.70 vs Reuters $0.30 ($33.77)
Company reports revenues of $398.9M vs Reuters $374.6M.

FSLR First Solar reports Q2 EPS $1.84 vs Reuters $1.61 ($135.50)
Company reports revenues of $587.9M vs Reuters $541.8M.

COMV Comverge reports Q2 EPS ($0.39) ex-items vs Reuters ($0.39):

Revenues $17.0M vs Reuters $15.9M

NR Newpark Resources reports Q2 EPS $0.12 vs Reuters $0.07 ($8.30)
Company reports revenues of $181.4M vs Reuters $167.1M.


Sector News, M&A, Capital Raises

 

Time to Head for Exits on Oil Trade: Gartman – CNBC link

TTES T-3 Energy Services files $250M mixed securities shelf registration

NAT Nordic American Tanker announces that delivery of its newbuilding suezmax continues to be delayed ($28.84)
Company has previously advised of the situation, and it has told the seller that it will not take delivery of the vessel until it is completed in accordance with the contract. Company continues to look to buy more vessels and expects to have at least 20 suezmax vessels by the end of next year.

MMP Magellan Midstream reports open season to transport crude oil from West TX to Houston area ($48.58)
The company has launched an open season to assess firm customer interest to transport crude oil from West Texas to the partnership's East Houston terminal. Interested customers must submit binding commitments by Sept. 15, 2010.


Research Away

 

Deutsche Bank

OSG ($40.22) Overseas Shipholding removed from short-term buy list at Deutsche Bank

Jefferies

OII ($50.96) Oceaneering International downgraded to hold from buy at Jefferies Target cut to $55 from $64. Downgrade follows Wednesday's earnings announcement

FBR Capital

HAL ($30.11) Halliburton downgraded to market perform from outperform

RES ($17.50) RPC Inc downgraded to market perform from outperform

Morgan Keegan

EEP ($53.03) Enbridge Energy Partners upgraded to outperform from market perform The firm cites valuation in the wake of the Michigan oil spill.

Wells Fargo 

ENOC ($33.02) EnerNOC initiated outperform at Wells Fargo 


Cantor Research

 

Cantor/FSLR: Q2:10; Good Quarter; Disappointing Guidance: SELL

  • The company reported $1.84 per share on revenues of $587.9 million. This was better than our estimate of $1.69 on revenues of $576 million and consensus of $1.62 on revenues of $545 million. This represented 12% revenue growth over the same period last year and 3% sequentially.
  • The company is capacity constrained, and we expect that when all the 2Q numbers come out, First Solar will have lost market share. Because of strong demand, the company will be shipping more modules to customers in Germany in 2H:10 instead of completing its captive projects. This results in a drop in total revenue guidance, but a slight increase in earnings guidance. We expect that most investors will find this disappointing.
  • The company expects that demand will remain strong through the second half, but they also have dropped prices to partially offset the FiT reductions in Germany. The company believes that this positions them well for the second half and into 2011. The company believes that Germany could slow in 2011, but that growth in other European counties could offset that slowdown. We continue to believe that demand in the European Union in 2011 will be slower than forecast, and that price reductions to offset FiT reductions will be larger than expected.
  • We believe that First Solar remains well positioned to flourish in a market with much lower subsidies, but we suggest that investors wait for a more opportune time to accumulate shares. We reiterate our Sell rating and $70 target price.

Top Events/Earnings Calendar

 

pre-mkt ACI earnings (confirmed)call at: 11:00, 30-Jul-10 , webcast 

pre-mkt AEP earnings (confirmed)call at: 09:00, 30-Jul-10 , webcast 

pre-mkt CHG earnings (confirmed)call at: 14:00, 30-Jul-10 888.276.0005 pw:CH Energy Group, webcast 

pre-mkt CPLP earnings (confirmed)call at: 10:00, 30-Jul-10 866.819.7111 pw:Capital Product Partners, webcast 

pre-mkt CPN earnings (confirmed)call at: 10:00, 30-Jul-10 888.857.6930, webcast 

pre-mkt CVX earnings (confirmed)call at: 11:00, 30-Jul-10 866.219.5256 pw:1467776, webcast 

pre-mkt LG earnings (confirmed)

pre-mkt PEG earnings (confirmed)call at: 11:00, 30-Jul-10 , webcast 

pre-mkt UPL earnings (confirmed)call at: 11:00, 30-Jul-10 , webcast 


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