WPX Energy plans to exit year at 140,000 bbl/d of oil » 16:2307/2907/29/20
The company said:…
The company said: "Consistent with a scenario WPX outlined in its first-quarter slide deck, the company plans to exit the year at 140,000 bbl/d of oil. Most of the planned completions in the back half of the year are scheduled to occur in the fourth quarter. WPX completed 12 wells in the second quarter prior to releasing all four of its completion crews. In July, the company redeployed one crew in the Delaware Basin and one in the Williston Basin. WPX plans to add one more frac crew in the Delaware Basin near the end of August. WPX now expects total capital spending of $1,050 to $1,150 million this year, down another $50 million from the most recent target. Total capital spending in the first half of 2020 was $501 million, including $188 million in the second quarter following a pullback in activity. The company could maintain the same level of oil production in 2021 - approximately 140,000 bbl/d - with an estimated maintenance capital budget of $800 to $850 million next year and generate approximately $200 million of free cash flow at current commodity prices. WPX remains committed to implementing a dividend. Given the ongoing economic uncertainty related to the pandemic, the company continues to evaluate the appropriate timing for initiation."
WPX Energy reports Q2 adjusted EPS 12c, consensus 2c » 16:2207/2907/29/20
WPX Energy reported an…
WPX Energy reported an unaudited second-quarter loss from continuing operations attributable to common shareholders of $414M, or a loss of (74c) per share on a diluted basis. The loss was driven by a $275M net loss on derivatives primarily from non-cash forward mark-to-market changes in the company's hedge book and lower overall commodity prices. As underlying forward commodity prices began to improve in the quarter, the value of hedging contracts was reduced from levels recorded at March 31. Excluding the forward mark-to-market changes in derivatives and other items, WPX posted adjusted net income from continuing operations of $69M, or income of 12c per share. Cash flow from operations - inclusive of hedge impact - was $276 million in the second quarter, down 24% vs. a year ago due in part to significant decreases in commodity prices and working capital changes. Free cash flow from operations was $166M.
|Over a week ago|
WPX Energy initiated with a Neutral at Seaport Global » 07:2207/2707/27/20
Seaport Global analyst…
Seaport Global analyst Nick Pope initiated coverage of WPX Energy with a Neutral rating. Pope sees its asset base in the Permian as one of the best in the sector, but thinks the recent Felix acquisition leaves WPX with a "somewhat stretched" balance sheet and notes the stock's premium valuation.
Laredo Petroleum initiated with a Buy at Seaport Global » 07:1307/2707/27/20
Seaport Global analyst…
Seaport Global analyst Nick Pope initiated coverage of Laredo Petroleum with a Buy rating and $20 price target. The company, which was quick to pull back activity during the initial crash, is "an interesting recovery story" with operations focused in the Permian, an "extremely strong" hedge book, and an improving asset base, the analyst tells investors.
Pandemic hit oil stocks, Chevron deal not changing that, Barron's says » 11:5707/2507/25/20
MTDR, CVX, WPX, LPI
Oil stocks are depressed,…
Oil stocks are depressed, and interest rates are low, which would be a signal for companies to merge and acquire one another, Avi Salzman writes in this week's edition of Barron's. Confirmation seemed to come this past week as Chevron (CVX) announced that it was acquiring Noble Energy (NBL), but the real message here is that Chevron was in a position to bottom-fish for a company whose stock was struggling, the author notes, adding that most oil companies are unlikely to follow Chevron's lead. Companies that have been mentioned as possible acquisition targets didn't move much on the Chevron news. These include Matador Resources (MTDR), WPX Energy (WPX) and Laredo Petroleum (LPI). With the last few big oil deals faring poorly, energy companies have pledged to preserve their cash this year, becoming more efficient, rather than bigger, Salzman writes. Reference Link
Continental Resources call volume above normal and directionally bullish » 11:4507/2407/24/20
Bullish option flow…
Bullish option flow detected in Continental Resources with 1,773 calls trading, 1.1x expected, and implied vol increasing over 1 point to 84.21%. Aug-20 22.5 calls and 8/14 weekly 20 calls are the most active options, with total volume in those strikes near 1,600 contracts. The Put/Call Ratio is 0.13. Earnings are expected on August 3rd.
Fly Intel: Top five analyst downgrades » 10:1407/2307/23/20
TSLA, MSFT, KHC, INGN, EOG, DVN, MTDR
Catch up on today's…
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Tesla (TSLA) downgraded to Neutral from Buy at New Street. 2. Microsoft (MSFT) downgraded to Perform from Outperform at Oppenheimer after the company reported June quarter results analyst Timothy Horan views as "mixed," with strong revenue in its Xbox, Surface and Windows consumer businesses while the enterprise customer side was weak. 3. Kraft Heinz (KHC) downgraded to Sell from Neutral at Guggenheim with analyst Laurent Grandet saying while he thinks that food companies, including Kraft Heinz, will generally benefit for longer than previously expected from elevated retail sales as the COVID pandemic worsens in the U.S. and many emerging markets, he sees the company continuing to lose share in most segments, the analyst tells investors. 4. Inogen (INGN) downgraded to Hold from Buy at Needham with analyst Mike Matson saying the recovery in the company's direct-to-consumer business is likely to be slower than at its medical technology peers with elective procedure exposure. 5. EOG Resources (EOG), Matador (MTDR), and Devon Energy (DVN) downgraded to Neutral from Overweight at JPMorgan. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage,
Devon Energy downgraded on federal acreage risk at JPMorgan » 08:0807/2307/23/20
JPMorgan analyst Arun…
JPMorgan analyst Arun Jayaram downgraded Devon Energy to Neutral from Overweight with a price target of $13, down from $15. With Joe Biden leading in recent polling, the November election poses risk to companies levered to federal acreage given his stated platform to restrict permitting on federal lands and waters, Jayaram tells investors in a research note. The analyst believes a Neutral rating on Devon is warranted given its "outsized" exposure to the Delaware and Powder River Basin plays.
Devon Energy downgraded to Neutral from Overweight at JPMorgan » 05:1607/2307/23/20
JPMorgan analyst Arun…
JPMorgan analyst Arun Jayaram downgraded Devon Energy to Neutral from Overweight with a $13 price target.
Crestwood Equity downgraded to Underweight at Wells Fargo » 07:2507/2207/22/20
As previously reported,…
As previously reported, Wells Fargo analyst Michael Blum downgraded Crestwood Equity (CEQP) to Underweight from Equal Weight with an $11 price target. The analyst cites the potential impact to Bakken production if DAPL is temporarily shut down, and the ongoing bankruptcy process for Chesapeake (CHK), given PRB contract. While the partnership could partially offset lower gathering volumes with higher contributions from its rail/storage assets, the economics of the Arrow system are significantly more attractive, he contends. In the PRB, Blum believes Crestwood Equity remains a critical vendor for Chesapeake but minimum revenue guarantees and/or fees could be renegotiated.