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May 22, 2012 5:04 AM EDT
Updated: Aug 4, 2010 8:43 AM EDT  

Energy/Shipping

Concordia, Hawes, Pellati (212) 829-5483

News and Views

 

Oil service stocks underperformed the energy sector, brought down by BHI.  The stock was down 13% after reporting earnings.  E & P stocks held up relatively well led by HK, MMR and ATPG.  SOLF led solar stocks after reporting strong earnings. Drybulk shippers have had a good run over the last month with rates finally improving.  But they now appear to be running into some resistance.  DRYS and NM have outperformed over the last month while BALT and DSX lagged. I would expect a pullback in the group before they are able to gain momentum to break through resistance.

  • BP “Static Kill” achieved in Gulf
  • API crude inventory numbers last night showed a smaller drawdown than expected (DOE numbers due this morning at 10:30)
  • CHK beat by .06 ex-items, but reported weak revenues.
  • APC beat by .12 ex-items, but missed revs.

Macro/Technicals

SP500 : 1115.4; -0.26
Crude : 82.10; -0.55
Gas : 4.681; +0.86
XLE : 55.70; -0.4
UTY : 414.09; -.45
OIH : 107.73; -1.64
BIDY : 779; -1.27
BDIY : 1964; -0.66

Leaders: RSOL +12.13%, HLX +8.01%, AHD +6.88%, ESEA +6.84%, HK +6.25%
Laggards: BHI-13.08%, BIOF-9.27%, SM-7.6%, DYN-5.96%, OCNF-4.11%

Active Names

 

Oil & Gas:  CAK, CHK, CVX, EOG, EP, FST, HERO, MUR, NOA, PVA, SWN, VTG                   

Shipping:                             

Coal:  BTU                          

Utilities:  AWK, CPN   


Earnings

 

CAM Cameron International reports Q2 EPS $0.58 vs Reuters $0.55 ($39.64)
Company reports revenues of $1.45B vs Reuters $1.47B.

ANR Alpha Natural Resources reports Q2 EPS $0.62 ex-items vs Reuters $0.68 ($39.43)
Company reports revenues of $1.00B vs Reuters $936.4M.

NJR NJ Resources reports Q3 net financial EPS $0.28 vs Reuters $0.19 ($38.00)
Reaffirms full year net financial EPS guidance of $2.45-2.55 vs Reuters $2.46.

EE El Paso Electric reports Q2 EPS $0.49 vs Reuters $0.39 ($21.62)

Guides f10 EPS to $1.65-2.10 per basic share excluding any one-time impacts of the 2009 Texas retail rate case. Reuters estimate is $2.13.

SE Spectra Energy reports Q2 EPS $0.27 vs Reuters $0.29 ($21.24)
Company reports revenues of $1.06B vs Reuters $1.04B.

DWSN Dawson Geophysical reports Q3 EPS ($0.13) vs Reuters ($0.17) ($25.25)
Company reports revenues of $61.2M vs Reuters $54.9M.

NWN Northwest Natural Gas reports Q2 EPS $0.26 vs Reuters $0.09 ($48.18)
Company reports revenues of $162.4M vs Reuters $66.7M.

XEC Cimarex reports Q2 EPS $1.46 vs Reuters $1.49 ($70.16)
Company reports revenues of $378.5M vs Reuters $388.0M.

ATLS Atlas Energy reports Q2 GAAP EPS cont ops $2.16 vs year-ago $0.24). Company reports revenues of $383.4M vs Reuters $140.0M and year-ago $310.3M.

WTR Aqua America reports Q2 EPS $0.22 vs Reuters $0.21 ($19.87)
Company reports revenues of $178.4M vs Reuters $179.5M.

BEXP Brigham Exploration reports Q2 EPS $0.13 vs Reuters $0.09 ($17.97)
Company reports revenues of $44.9M vs Reuters $38.3M

SGU Star Gas Partners reports Q3 EPS ($0.14) vs year-ago ($0.03) ($4.36)
Company reports revenues of $176.8M vs year-ago $167.7M.

OIS Oil States reports Q2 EPS $0.71 vs Reuters $0.63 ($45.47)
Company reports revenues of $594.5M vs Reuters $518.7M

OKS ONEOK Partners LP reports Q2 EPS $0.75 vs Reuters $0.77 ($69.63)

Net income attributable to ONEOK Partners was $105.0M vs $97.5M y/y

REXX Rex Energy reports Q2 EPS $0.02 and is unclear if comparable to Reuters ($0.01) ($10.47)
Company reports revenues of $15.7M vs Reuters $16.8M.

SGY Stone Energy reports Q2 EPS $0.60 vs Reuters $0.48 ($12.19)
Company reports revenues of $166.2M vs a single estimate of $159.3M,

NU Northeast Utilities reports Q2 EPS $0.41 vs Reuters $0.44 ($28.30)
Guides full year EPS to $1.95-$2.05, compared to prior $1.80-$2.00 vs Reuters $1.95.

OKE ONEOK, Inc reports Q2 EPS $0.39 vs Reuters $0.31

APC Anadarko Petroleum reports Q2 EPS $0.49, ex-items ($53.13)
Reuters consensus is $0.37. Company reports revenues of $2.60B, which includes $41M in gains on divestitures. Reuters is $2.76B.

XCO Exco Resources reports Q2 EPS $0.11 ex-items vs Reuters $0.13 ($15.08)
Company reports revenues of $118.3M vs Reuters $150.0M.

CHK Chesapeake Energy reports Q2 EPS $0.75 ex-items vs Reuters $0.69 ($21.84)
Company reports revenues of $2.01B vs Reuters $2.43B.


Sector News, M&A, Capital Raises

 

APC Anadarko Petroleum  said it arranged $6.5 billion in new financing following a record oil spill at the site.  BBG

Senate Democrats shelve oil spill legislation until fall from Los Angeles Times

Lawmakers are unable to rally enough support for a bill that would raise the liability cap for economic damage caused by a disaster like the one in the Gulf of Mexico. Democrats will try again in September

US Finds Most Oil From Spill Poses Little Additional Risk – CNBC link

BP may face $20B in penalties for oil spill – FT

Gulf of Mexico deepwater-drilling ban may be lifted before 30-Nov - FT
The director of the US Bureau of Ocean Energy Management said yesterday that it would start holding forums on the moratorium today. He said the forums are intended to establish a "level of comfort" that would allow the moratorium to be halted. He also said the four oil majors would today present a $1B plan proposed to contain spills.

XEL Xcel Energy 19M share secondary offering priced at $21.50 through BofA Merrill, Barclays, and JPMorgan

LUFK Lufkin Industries declares $0.125 Q3 dividend ($42.08)
Payable on 10-Sept to holders of record 1-Sept

SPWRA SunPower completes 505-KW solar power installation in Western Australia ($12.78)
The SunPower T20 Tracker installation was commissioned earlier this year. The stations it is powering will generate 1,048 MW hours of solar energy annually. Terms are not revealed

Research Away

FBR Capital

FE ($38.60) FirstEnergy downgraded to market perform from outperform at FBR Capital Target cut to $40 from $41. Shares are also removed from Top Picks list.

Goldman Sachs

AEP ($36.25) American Electric Power downgraded to neutral from buy at Goldman Sachs Target cut to $37 from $38. The firm cites valuation and the potential for negative catalysts.

Rodman & Renshaw

RAME ($2.01) RAM Energy Resources downgraded to market perform from market outperform at Rodman & Renshaw NAV cut to $2.25 from $2.50. The firm cites the lower production outlook and increased operating expenses


Top Events/Earnings Calendar

 

post-mkt ATO earnings (confirmed)call at: 08:00, 05-Aug-10 877.485.3107, webcast 

post-mkt ATW earnings (confirmed)call at: 11:00, 05-Aug-10 800.862.9098 pw:7ATWOOD, webcast 

post-mkt AWK earnings (confirmed)call at: 09:00, 05-Aug-10 , webcast 

post-mkt BRS earnings (confirmed)call at: 10:00, 05-Aug-10 877.941.9205, webcast 

post-mkt CLD earnings (confirmed)call at: 17:00, 04-Aug-10 866.383.8119 pw:46965557, webcast 

post-mkt CLR earnings (confirmed)call at: 10:00, 05-Aug-10 888.680.0890 pw:42960135, webcast 

post-mkt CNL earnings (confirmed)call at: 11:00, 05-Aug-10 , webcast 

post-mkt CXO earnings (confirmed)call at: 10:00, 05-Aug-10 866.362.4832 pw:96508757, webcast 

post-mkt EGLE earnings (confirmed)call at: 08:30, 05-Aug-10 866.202.1971 pw:30456766, webcast 

post-mkt ENOC earnings (confirmed)call at: 17:00, 04-Aug-10 877.837.3911, webcast 

post-mkt EXM earnings (confirmed)call at: 08:30, 05-Aug-10 866.819.7111 pw:Excel Maritime, webcast 

post-mkt GDP earnings (confirmed)call at: 11:00, 05-Aug-10 866.804.6928 pw:26577079, webcast 

post-mkt GLBL earnings (confirmed)call at: 10:00, 05-Aug-10 888.677.0183, webcast 

post-mkt GMXR earnings (confirmed)

post-mkt IO earnings (confirmed)call at: 10:00, 05-Aug-10 480.629.9692, webcast 

post-mkt MUR earnings (confirmed)call at: 13:00, 05-Aug-10 888.267.6301 pw:6543170, webcast 

post-mkt NOA earnings (confirmed)call at: 09:00, 05-Aug-10 877.407.9205, webcast 

post-mkt ORA earnings (confirmed)call at: 10:00, 05-Aug-10 , webcast 

post-mkt PAA earnings (confirmed)call at: 11:00, 05-Aug-10 800.230.1096, webcast 

post-mkt PVA earnings (confirmed)call at: 15:00, 05-Aug-10 866.630.9986 pw:4650813, webcast 

post-mkt REXI earnings (confirmed)call at: 08:30, 05-Aug-10 , webcast 

post-mkt RIG earnings (confirmed)call at: 10:00, 05-Aug-10 719.325.4929 pw:1148497, webcast 

post-mkt RSOL earnings (confirmed)call at: 11:30, 05-Aug-10 888.549.7735

post-mkt SD earnings (confirmed)call at: 09:00, 05-Aug-10 800.573.4754 pw:69055143, webcast 

post-mkt SOLR earnings (confirmed)call at: 08:00, 04-Aug-10 866.770.7146 pw:SOLR, webcast 

post-mkt TEG earnings (confirmed)call at: 09:00, 05-Aug-10 888.788.9425 pw: , webcast 

post-mkt UDRL earnings (confirmed)call at: 11:00, 05-Aug-10 480.629.9835, webcast 

post-mkt UIL earnings (confirmed)call at: 10:00, 05-Aug-10 , webcast 

post-mkt VVC earnings (confirmed)call at: 14:00, 05-Aug-10 888.818.6237 pw:88651568, webcast 

post-mkt WG earnings (confirmed)call at: 09:00, 05-Aug-10 888.713.4515 pw:8451428, webcast 

post-mkt WGL earnings (confirmed)call at: 10:30, 05-Aug-10 , webcast 

post-mkt WR earnings (confirmed)call at: 10:00, 05-Aug-10 888.396.2298 pw:39364897, webcast 

pre-mkt ALE earnings (confirmed)call at: 10:00, 04-Aug-10 678.224.7717, webcast 

pre-mkt ANR earnings (confirmed)call at: 10:00, 04-Aug-10 877.407.8289, webcast 

pre-mkt AYE earnings (confirmed)call at: 13:00, 04-Aug-10 , webcast 

pre-mkt BBEP earnings (confirmed)call at: 13:00, 04-Aug-10 888.500.6973, webcast 

pre-mkt CAM earnings (confirmed)call at: 08:30, 04-Aug-10 201.689.8261, webcast 

pre-mkt CNP earnings (confirmed)call at: 11:30, 04-Aug-10 800.653.1761 pw:86603138, webcast 

pre-mkt DVN earnings (confirmed)call at: 11:00, 04-Aug-10 , webcast 

pre-mkt DWSN earnings (confirmed)call at: 10:00, 04-Aug-10 866.322.9730 pw:89595848, webcast 

pre-mkt EE earnings (confirmed)call at: 10:30, 04-Aug-10 866.818.1393 pw:1468302, webcast 

pre-mkt EP earnings (confirmed)call at: 10:00, 04-Aug-10 888.710.3574 pw:88531575, webcast 

pre-mkt EPB earnings (confirmed)call at: 11:30, 04-Aug-10 877.260.0861 pw:88706215, webcast 

pre-mkt NJR earnings (confirmed)call at: 09:00, 04-Aug-10 , webcast 

pre-mkt NWN earnings (confirmed)call at: 11:00, 04-Aug-10 877.317.6789 pw:442257#, webcast 

pre-mkt PCG earnings (confirmed)call at: 13:00, 04-Aug-10 , webcast 

pre-mkt SE earnings (confirmed)call at: 10:00, 04-Aug-10 888.252.3715 pw:86559902, webcast 

pre-mkt WRES earnings (confirmed)call at: 10:00, 04-Aug-10 , webcast 

pre-mkt XEC earnings (confirmed)call at: 13:00, 04-Aug-10 888.558.6372 pw:89216681, webcast 


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