CenterPoint Energy Inc (CNP), Det norske oljeselskap ASA (DETNOR.OL),
Kansas City Southern (KSU), Ophir Energy (OPHR.L),
Alert: Iran and the West
CenterPoint Energy Inc (CNP)
Reinstating Coverage with an Outperform rating on the shares and establishing
a 12 month TP of $29 for a total return outlook of ~20%
10 July 2014 sendspace.com
Det norske oljeselskap ASA (DETNOR.OL)
Tangible progress toward deal completion
10 July 2014 sendspace.com
Kansas City Southern (KSU)
It Was Worth the Wait
8 July 2014 ¦ 11 pages ir.citi.com
Port Arthur Crude Terminal Will Commence Operations in 2016 — After more
than a year of waiting, Kansas City Southern agreed with Global Partners on terms
to develop a crude offloading facility in Port Arthur, TX. We expect permitting and
development to take roughly 18-24 months with the facility likely to be up and
running in mid-2016. Initial capacity will be for two unit trains per day, but we expect
scalability beyond this level. The terminal will be designed to take Canadian heavy
crude, most likely from interchange with Canadian Pacific at Kansas City and
Canadian National at Jackson, Mississippi.
Ophir Energy (OPHR.L) — Re-cycling the Portfolio. Initiating at Buy
9 July 2014 ¦ 32 pages ir.citi.com
Re-cycling the Portfolio, initiating at Buy — the market value of Ophir’s business
has deteriorated dramatically over the last 2 years (down c. 60%) reflecting a
poor run of exploration results (primarily Gabon) and a realisation that the core
resource base in Tanzania and Equatorial Guinea will take time to
commercialise. However, we believe that we have reached the point where the
risk-reward around the Tanzania and Equatorial Guinea assets has reached an
attractive level. Global LNG markets are going through significant change. We
think lower-cost resources such as Tanzania/Mozambique (and Equatorial
Guinea) can potentially start to achieve gre
Global Political Insights
Alert: Iran and the West: Deadline for Diplomacy Approaches
8 July 2014 ¦ 6 pages ir.citi.com
The interim agreement between Iran and the P5+1 will expire on July 20.
Diplomatic negotiations are underway in Vienna, with all sides signaling
commitment towards reaching an agreement. However, given the distance
between the parties, we do not view a comprehensive deal that would provide
sanctions relief for Iran as likely by the July 20 date...
...Despite talk of weakening of sanctions, there is no tangible evidence in
markets of a significant increase of Iranian oil exports. Data actually indicate
that export increases from this past spring might have been due to temporary
factors, and that exports are tailing back down toward 1 million barrels per day.
Iran’s earnings keep growing, on paper, but remain in blocked accounts, mostly in
Asian banks (Figures 1 & 2). |
