| | | ANR, CIE, CJES, CNX, COP, CVRR, ESV, MPC & MPLX, NGLS & TRGP, OILT, SU.TO, TSO & TLLP, VLO, WLL, WLT, XOM
Alpha Natural Resources (ANR)
Thermal Improving But Not Enough to Offset Met, Lowering Estimates
1 May 2014 ¦ 9 pages ir.citi.com
Cobalt International Energy (CIE)
Q1’14 Wrap-Up: Solid Orca DST; More Exploration Teed Up In ’14
1 May 2014 ¦ 12 pages ir.citi.com
Cobalt reported slightly better-than-expected bottom-line results while liquidity
remains strong for now and the full-year budget is unchanged. We reiterate our
Buy rating on CIE’s shares but are lowering our price target to $27 per share
from $32 per share based on our revised risked NAV assessment for discoveries
to date and prospects teed up through the end of 2015.
Robert S Morris
C&J Energy Services Inc. (CJES)
Raising EPS Estimates and Price Target
1 May 2014 ¦ 14 pages ir.citi.com
Revenue growth from 4Q13 to 1Q14 was much stronger than expected, signaling
that C&J’s fleet utilization is improving rapidly due to strong customer demand for
hydraulic fracturing services. The next steps would appear to include an upturn in
pricing based on the tightening supply/demand balance and the rising U.S.
horizontal rig count. C&J is one of the most leveraged ways to play the recovery
in U.S. drilling. Based on some early signs of pricing recovery amid strong
demand trends, we are upwardly revising our earnings estimates for 2014-16.
We have raised our price target to $36 from $29.
Robin Shoemaker
CONSOL Energy (CNX)
Great 1Q and Likely Best Quarter for the Year
29 April 2014 ¦ 9 pages ir.citi.com
ConocoPhillips (COP)
EPS Beat; Margin Expansion Continues; Maintain Buy
1 May 2014 ¦ 10 pages ir.citi.com
CVR Refining, LP (CVRR)
Distribution in Line; Strong Operations; RINs Remain an Issue
1 May 2014 ¦ 10 pages ir.citi.com
Ensco plc (ESV)
Lowering Estimates on Rig Pricing, Maintain Buy Rating
29 April 2014 ¦ 13 pages ir.citi.com
Strong performance highlighted by 96% utilization of available rig days led to
higher-than-expected floater revenues and 1Q14 EPS of $1.31, which was above
our estimate of $1.17 and the consensus estimate of $1.22. Average floater day
rates increased 18% year-on-year as a result of the start-up of new rigs at high day
rates and the expiration of lower priced contracts on older rigs in the Ensco fleet.
Robin Shoemaker
MPC & MPLX
EPS Impacted by Turnarounds & Weather
1 May 2014 ¦ 15 pages ir.citi.com
MPC adjusted 1Q’14 EPS of $0.82 was below our estimate of $1.03 and
consensus of $1.07. 1Q results were impacted by turnarounds at the two of its
biggest refineries on the Gulf Coast and restrictions imposed on MPC’s
operations due to severe winter weather. MPLX reported 1Q’14 adj. EBITDA of
$40.0 mm, 32% higher than our estimate of $30.3 mm and 21% higher than
consensus estimate of $33.0 mm.
Faisel Khan, CFA | Mohit Bhardwaj
Targa Resource Partners & Corp
Strong Performance Across All Segments; Maintain Buy
1 May 2014 ¦ 14 pages ir.citi.com
NGLS reported strong operating results across all segments with total operating
margin of $275mn exceeding our expectation of $251mn. Adj. EBITDA of
$232mn was higher than our estimate of $208mn and consensus of $205mn as
all but the logistics segment exceeded expectations. DCF of $189mn was 22%
higher than our $155mn est. due to the beat and lower maintenance capex in the
quarter. Full year expectations for maintenance capex remain unchanged at
$90mn.
Faisel Khan, CFA
Oiltanking Partners LP (OILT)
Q1 Miss, but Fear Not, Growth Pipeline Is Still Bountiful
1 May 2014 ¦ 11 pages ir.citi.com
OILT reported Q1-14 adj. EBITDA of $40.4 mil, which missed both our estimate
of $45.2 mil and the consensus of $44.1 mil. Revenues slightly missed as
terminal throughput came in lower due to an above-average number of days the
Houston Ship Channel was closed due to fog, as well as the March 22nd barge
collision and fuel oil spill near Texas City. The miss, however, was mostly
attributable to higher than expected operating expenses. Distributable cash flow
for the quarter of $37.3 mil was lower than our estimate of $41.2 mil by ~10%,
and covered distributions paid by a healthy 1.80x.
Suncor Energy Inc (SU.TO)
EPS Beat on Refining & Strong Canadian Realizations; Neutral
29 April 2014 ¦ 10 pages ir.citi.com
Tesoro and Tesoro Logistics
TSO & TLLP Beat; Port of Vancouver Facility Remains Catalyst
1 May 2014 ¦ 15 pages ir.citi.com
TSO reported 1Q adjusted EPS of $0.62, above our estimate of $0.29 (Street of
$0.43) on higher margins in California. Adjusted EPS excludes a $0.02 gain from
the sale of the Tesoro Logistics Boise Terminal, a $0.14 expense related to the
redemption of TSO’s 9.75% senior notes and a $0.09 gain associated with
compensation expense.
Faisel Khan, CFA | Mohit Bhardwaj
Valero Energy Corp (VLO)
EPS Beat on Operating Performance; Higher 2Q Turnaround
29 April 2014 ¦ 10 pages ir.citi.com
Whiting Petroleum Corp (WLL)
Fickle Markets – Not Operations – Cause Pullback;
Reiterate Buy Rating And Raise Target Price To $86 From $83
2 May 2014 ¦ 19 pages ir.citi.com
We could point to a handful of items that may have caused Whiting to lag post
reporting Q1'14 results; however, in our view none materially impact the firm’s
core earnings power. Thus, our investment thesis is unchanged and we reiterate
our Buy rating; raising our target price to $86 from $83.
John Nelson | Robert S Morris
Walter Energy (WLT)
Lowering Estimates, Better Positioned to Survive the Downturn
1 May 2014 ¦ 10 pages ir.citi.com
Exxon Mobil Corp (XOM)
EPS Beat; Upstream Unit Profitability Improves; Neutral
1 May 2014 ¦ 9 pages ir.citi.com |
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