| | | Arch Coal (ACI), Anadarko Petroleum Corp (APC), ARC Resources Ltd. (ARX.TO),
Atwood Oceanics, Inc. (ATW), AWE Limited (AWE.AX), BP (BP.L),
Cenovus Energy Inc. (CVE.TO), Ecolab Inc (ECL), Hess Corporation (HES)
Hornbeck Offshore (HOS), Kirby Corporation (KEX), Russian Oil & Gas Majors
Saipem (SPMI.MI), Tullow Oil (TLW.L)
Arch Coal (ACI)
Managing Costs, Rail Bottlenecks Remain
30 July 2014 ¦ 10 pages ir.citi.com
Anadarko Petroleum Corp (APC)
Q2’14: Production Beats Again, FY Guidance Bumped Again
29 July 2014 ¦ 11 pages ir.citi.com
ARC Resources Ltd. (ARX.TO)
Q2 In Line, Capex Signals Dawson Phase 3
30 July 2014 sendspace.com
Atwood Oceanics, Inc. (ATW)
Earnings Beat Driven By Taxes
30 July 2014 sendspace.com
AWE Limited (AWE.AX)
OK Result, Perth Basin Unconventional Moving Forward
30 July 2014 ¦ 15 pages ir.citi.com
Perth Basin unconventional moving forward
Drover-1 shale anaylsis continues with flow testing expected in 1H CY15. The
next two tight gas wells are expected to production test from Sept-Nov CY14. We
think these tight gas plays will represent near-term, lucrative development
opportunities. Given forward progress, we now value Perth Basin unconventional
on a A$250/acre multiple, still below M&A transaction multiples of A$284-
850+/acre seen in the Cooper over the last 2years, which has added A$0.11/shr
to our DCF in isolation.
Jun-Q EBITDAX 39% lower than forecast given no Tui cargoes
Production of 1.31mmboe was 5% above Citi est. from higher Bass Gas and
Casino production, but sales were 2% below Citi est. due to no Tui cargoes being
sold in the quarter. Lower oil sales resulted in EBITDAX of A$31m, 39% below
Citi est.
We remain bullish on AWE
Our revised target price is A$2.34/shr.
Dale Koenders | James Byrne | Vishesh Pachnanda
BP (BP.L)
Revisiting Earnings Power of BP Downstream; Cutting EPS 11%
29 July 2014 ¦ 10 pages ir.citi.com
BP 2Q14 adjusted net income of $3.64b is 10% above revised consensus (7%
below where consensus was on 25 June). Upstream and Russia contributed well
but we think the Downstream looks to be emerging from a phase of asset
repositioning with an earnings power that is below our expectations (ROCE c.4%
last 12M). We lower Downstream assumptions and also increase financing
charges to bring them in-line with the recent run-rate. We lower 2014-18E EPS
by an average 11%, which takes our forecasts 8% below consensus 2015/16.
Russia remains a source of uncertainty, although noteworthy is that the Rosneft
annual dividend was received by BP last week. Neutral, 480p target.
Cenovus Energy Inc. (CVE.TO)
Q2: Strong Financial & Operating Results
30 July 2014 sendspace.com
Ecolab Inc (ECL)
Energy Rock Solid, but Core Institutional Still Industry Research Today Sluggish; Remain Neutral
29 July 2014 ¦ 9 pages ir.citi.com
ECL reported adjusted 2Q14 EPS of $1.03 was slightly better than our $1.02
estimate driven by Global Energy (operating earnings up 44%) partly offset by a
sluggish core institutional cleaning business. On the call, we were encouraged by
CEO Doug Baker’s comments that business will accelerate in 2H — acquisition
adjusted sales up 5% to 6%+ — driven by Energy and Europe. Mgmt also noted
that growth will increase from record new business (+30% vs. 1H13), continued
innovation and possible M&A. However, mgmt only raised the low end of its FY
EPS guidance range by 4¢ to $4.14-$4.20 (+17-19%). We remain on the
sidelines as ECL’s forward P/E multiple remains fully valued at ~23x, in our
opinion.
Hess Corporation (HES)
Best in the Bakken, Raise TP to $120
31 July 2014 sendspace.com
Bottom Line: With the 2Q14 release, HES has confirmed that their Bakken
efficiency trends are still positive (the total well cost per frac stage is down
24%), and IP/frac stage are still close to 30 bbls/stage. This bodes well for
the economics of HES acreage position, which is one of the pre-eminent
positions of its Bakken peers. Indeed HES looks the equity vehicle to play
the Bakken from a large cap perspective. The launch of an MLP around HES
key Tioga gas plant asset should force the valuation of this high quality asset
and signals HES belief that they have sufficient future growth to feed the
MLP over time. Investors should like high multiple logistics growth. We raise
our HES TP to $120/sh. Upside could come from the Bakken or from future
logistics growth plans with the MLP (IPO 1Q15).
Hornbeck Offshore (HOS)
WOW - MPSVs and OSVs Delivering the Goods
30 July 2014 sendspace.com
Kirby Corporation (KEX)
Getting Spoiled - Another Beat and Raised
Increasing TP to $130 and Raising Estimates.
30 July 2014 sendspace.com
Russian Oil & Gas Majors
Immediate operational impact of restrictions likely to be muted
30 July 2014 sendspace.com
Saipem (SPMI.MI)
Backlog supports recovery; FY14 expectations lowered.
30 July 2014 ¦ 8 pages ir.citi.com
Tullow Oil (TLW.L)
Transition, no Traction yet
Maintain Neutral / Cut TP to 885p (from 910p)
30 July 2014 sendspace.com |
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