Fly News Breaks for December 10, 2019
HES, PE, CXO, DVN, WPX, FANG, VET, PXD, EOG
Dec 10, 2019 | 07:54 EDT
JPMorgan analyst Arun Jayaram is more sanguine on the Exploration & Production sector heading into 2020. The transition to free cash flow that began in 2019 should support better free cash flow metrics and cash return given efficiency gains and oilfield services deflation, Jayaram tells investors in a research note. Further, U.S. shale growth is poised to disappoint, which could lift the back end of the curve, a key for new money entering the space, adds the analyst. As part of his 2020 outlook, Jayaram upgraded Devon Energy (DVN) to Overweight from Neutral and Hess Corp. (HES) to Neutral from Underweight. He also downgraded Vermilion Energy (VET) to Neutral Overweight saying he sees a smaller margin of error for the company. The analyst reshuffled his ratings to more appropriately position his estimates and ratings distribution. His top picks include Cabot Oil & Gas (COG), Concho Resources (CXO), Devon, EOG Resources (EOG), Diamondback Energy (FANG), Parsley Energy (PE), Pioneer Natural (PXD) and WPX Energy (WPX).
News For DVN;HES;VET;CXO;EOG;FANG;PE;PXD;WPX From the Last 2 Days
Feb 18, 2020 | 19:05 EST
UP AFTER EARNINGS: Quad/Graphics (QUAD) up 25.0%... ShotSpotter (SSTI) up 20.1%... Enphase Energy (ENPH) up 11.8%... Herbalife (HLF) up 5.8%... SciPlay (SCPL) up 4.7%... La-Z-Boy (LZB) up 4.6%... Retail Properties of America (RPAI) up 3.0%... Xperi (XPER) up 2.5%... Diamondback Energy (FANG) up 1.9%... Devon Energy (DVN) up 1.9%... TriPointe Group (TPH) up 1.9%... TiVo (TIVO) up 1.5%. ALSO HIGHER: Bed Bath Beyond (BBBY) up 4.0% after guiding FY20 capital allocation. DOWN AFTER EARNINGS: Groupon (GRPN) down 24.9%... Knoll (KNL) down 13.6%... Scientific Games (SGMS) down 10.5%... Blue Apron (APRN) down 9.8%... Amedisys (AMED) down 9.0%... Brookdale Senior Living (BKD) down 6.4%... 10X Genomics (TXG) down 5.1%... LendingClub (LC) down 2.8%... Palomar (PLMR) down 2.8%... bluebird bio (BLUE) down 2.0%... HealthStream (HSTM) down 1.4%... KAR Auction Services (KAR) down 1.4%. Movers as of 18:30ET.
Feb 18, 2020 | 16:17 EST
Led by the exceptionally strong well performance Devon is experiencing in the Delaware Basin, the company is now raising its full-year 2020 oil growth rate to range of 7.5 percent to 9 percent compared to 2019 (on a retained asset basis). In the first-quarter 2020, oil production is projected to average in the range of 158,000 to 163,000 barrels per day
Feb 18, 2020 | 16:16 EST
Devon's estimated proved reserves were 757 million Boe at year-end 2019, with proved undeveloped reserves accounting for only 22 percent of the total. The company's drilling programs successfully added 160 million Boe of reserves through extensions and discoveries in 2019. The capital costs incurred to deliver these reserve additions totaled $1.8 billion, equating to an attractive finding and development cost of $11 per Boe.
Feb 18, 2020 | 16:15 EST
The next quarterly dividend is payable on March 27, 2020, to stockholders of record as of February 28, 2020.
Feb 18, 2020 | 16:10 EST
Devon Energy announced that its board of directors has approved a 22 percent increase in its quarterly common stock dividend. The new quarterly dividend rate will be $0.11 per share, compared to the prior quarterly dividend of $0.09 per share. The increased dividend is payable on June 30, 2020, to shareholders of record as of the close of business on June 15, 2020. "The 22 percent increase in our quarterly dividend is the latest example of Devon's commitment to return cash to shareholders and reflects the confidence we have in our underlying business and financial strength," said Dave Hager, president and CEO.
Feb 18, 2020 | 16:06 EST
Reports Q4 revenue $1.1B, consensus $1.09B. "Diamondback ended 2019 in a position of strength, achieving 5% sequential oil production growth along with our highest oil realizations of the year. This, combined with our industry-leading cost structure, resulted in 18% quarter over quarter Adjusted EBITDA growth and 31% Adjusted EPS growth in the quarter. We repurchased 2.4 million shares in the quarter for approximately $199 million, utilizing free cash flow and a $43 million gain from interest rate swaps unwound as part of our first investment grade bond offering in November to repurchase shares at a depressed valuation. Further, Diamondback did not slow operations in the second half of 2019 and maintained continuous operations with eight completion crews running consistently through the end of the year, setting us up for continued growth and operational momentum in 2020," stated Travis Stice, Chief Executive Officer of Diamondback.
Feb 18, 2020 | 11:55 EST
Bearish flow noted in Hess Corp. with 2,111 puts trading, or 1.3x expected. Most active are Mar-20 57.5 puts and Apr-20 60 puts, with total volume in those strikes near 1,000 contracts. The Put/Call Ratio is 2.74, while ATM IV is up nearly 2 points on the day. Earnings are expected on April 22nd.