FPM.L, NBR, PBR, PFC.L, Sinopec, WLL,
EIA Electric Monthly,
China O&G Demand Monthly,
Commodities Brief,
Japan Electric power sector,
Indian Oil & Gas,
Faroe Petroleum (FPM.L)
Upbeat, but Njord uncertainty remains
26 March 2014 sendspace.com
Nabors Industries (NBR)
Reducing Estimates on 1Q14 Preannouncement but Reiterate Buy
24 March 2014 ¦ 9 pages ir.citi.com
NBR announced that 1Q14 EPS will be approximately $0.07 below the $0.20
consensus estimate. We have reduced our EPS outlook from $0.19 to $0.13 in
1Q14 and from $1.24 to $1.18 in 2014. The changes were driven by severe
weather delaying well completion activity in the Northern region. The company
has 60% of its pressure pumping horsepower operating in the Northern region,
including the Rockies and Appalachia. Severe weather impacted those areas
through February and into early March. NBR had been cautious on Completion
Services in its most recent 4Q13 earnings call, although the near-term calendar
of completion work seemed relatively full as of February. The underperformance
in Completion Services in 1Q14 is likely to be a temporary setback. We believe
that the market is reaching a turning point after two years of challenging
conditions for North American drilling and pressure pumping companies. We
reiterate our Buy rating.
Sinopec (0386.HK)
Mgmt Looks to Unlock a “Goldmine” of Value as Weak FY13 Results are Released
24 March 2014 ¦ 26 pages
Petrobras (PBR)
Meeting improves ST outlook, but leverage concerns persist
24 March 2014 ¦ 11 pages ir.citi.com
We met Petrobras’ CEO and top management in Rio to chat about the
company’s investment plan and outlook. Investors have recently asked us
whether it is time to buy the stock, with the stock down 15% YTD, but up 4%
MTD. We still think it is too early to jump back in, considering the stock still
trades at a premium 7.1x 2014E EV/EBITDA and 8.2x EV/DACF. 2014E PE
trades in line with peers at 8.5x, but does not reflect PBR’s leverage position and
FX worries. Q1 results should highlight a rising cash-burn rate and deterioration
of credit ratios, as production will only pick-up in around May. BRL depreciation
continues to be a major concern, in spite of the recent upwards trend, while the
review of the production rights prices by 3Q14 further raises balance sheet risks.
Petrofac (PFC.L)
Scratching a niche; Raising Target Price to 1,600p from 1,535p
26 March 2014 sendspace.com
Deepwater is where it's at: Deepwater investments are expected to grow at double-digit percentage rates beyond the end of this decade, according to energy advisors, Douglas Westwood. Petrofac (PFC) will leverage its strong project delivery track record by diversifying into the deepwater construction market, investing in a distinctive state-of-the-art vessel. We expect PFC to create close to $450m NPV10 value at an IRR of 15.8% through this initiative, with valuation risk skewed to the upside.
Whiting Petroleum Corp (WLL)
Raising Target Price To $83 With Visibility To $100; Maintain Buy
25 March 2014 ¦ 22 pages ir.citi.com
We are raising our target price on Whiting to $83 from $78 after moving our
forecasts inline with ‘14 guidance. Further, after analyzing production data from
>100 industry wells drilled in and surrounding the firm’s Niobrara assets, we
expect encouraging results from downspacing pilots over '14 should continue to
support shares. With management commentary guiding to a 2014 Niobrara exit
rate ~8 MBbl/d above our forecast and the stock trading at 1.5-2.0x discount to
the peer group, we believe shares have an attractive risk/reward profile.
Reiterate Buy rating.
EIA Electric Monthly
January Coal Burn Above Our Model, Inventories Continue to Drop
24 March 2014 ¦ 10 pages ir.citi.com
China O&G Demand Monthly
Feb 2014: Weak all around
sendspace.com
Commodities Brief
March Madness – geopolitics and weather risks upset the bears
25 March 2014 ¦ 11 pages ir.citi.com
Japan Electric power sector
Alert: New large-scale coal-fired power plants to be built (Nikkei)
25 March 2014 ¦ 11 pages ir.citi.com
Indian Oil & Gas
Election Commission Directs Gov't To Defer Gas Price Hike
25 March 2014 ¦ 8 pages ir.citi.com |
