ene stock overhang potential and credit facility questions (though these may be a faux issue).... could be a panic opp developming here...
ene just defaulted on UK agreements... this thing is starting to spread like a bad headache...
=DJ Williams Down -3: Analysts See Buying Opportunities >WMB
29 Nov 12:37
Williams' tardiness in getting the word out about its exposure to Enron might
have made investors especially nervous, according to an analyst. Several energy
trading companies issued guidance Wednesday as the fallout from Enron
short-circuited stocks in the sector.
In addition, Williams, of Tulsa, Okla., has, at less than $100 million, one
of the biggest exposures to Enron. Most analysts estimate Williams exposure at
$50 million to $100 million.
Nevertheless, analyst Ronald Barone of UBS Warburg said the earnings impact
on Williams would be relatively minimal. Williams after-tax loss could be about
$65 million, which would translate into a one-time hit of 12 cents to 13 cents
a share, according to Barone.
The analyst, who has a buy rating on Williams, said the weakness "is a bit
overdone."
In fact, several other analysts are seeing buying opportunities among the
fallen energy trading and marketing stocks. Analysts as well as other companies
are reminding investors that Enron's problems stem from the company's financial
maneuverings rather than its trading business.
"We view the rest of the energy marketing and trading market very capable of
overcoming the loss of its largest player," said Anatol Feygin of J.P Morgan in
a research note.
"We view El Paso as the most durable of franchises," the analyst continued,
"one we also believe has the most visible earnings stream."
El Paso put its Enron exposure at $50 million. El Paso stock is off 13 cents
to $44.78 on volume of 3.4 million, after falling 7.4% Wednesday. El Paso said
its earnings outlook remains strong and it doesn't see any adverse earnings
impact from Enron's difficulties.
Williams issued a similar bright outlook. Earlier Thursday, Williams said it
expects to deliver recurring 2001 earnings of $2.40 a share and to achieve
ongoing earnings growth of at least 15% a year.
-By Christopher C. Williams, Dow Jones Newswires; 201-938-5219;
christopher.williams@dowjones.com
(END) DOW JONES NEWS 11-29-01
12:37 PM
------------------------------------------------------------------------
=DJ Williams Down -4: EOTT Still Assessing Enron Impact -
29 Nov 18:17
EOTT Energy Partners LP (EOT), whose shares were caught in the Enron
downdraft Wednesday, said it's still assessing the effects of Enron's troubles
on its business.
"EOTT is continuing to conduct its business and is in active discussions with
third parties in an attempt to mitigate any risks that may be imposed on EOTT
by these developments," said EOTT spokeswoman Gina Taylor, reading from a
prepared statement.
Taylor said EOTT, of Houston, will issue a press release "in the near
future."
After falling 16% Wednesday, EOTT shares gained 56 cents, or 4%, on Thursday
to close at $14.65 on volume of 853,400, compared with average daily volume of
76,000.
-By Christopher C. Williams, Dow Jones Newswires; 201-938-5219;
christopher.williams@dowjones.com
(END) DOW JONES NEWS 11-29-01
06:17 PM
Copyright 2001 Dow Jones & Company, Inc. |
