CAT oil (O2C.DE), MPC & MPLX, Novatek OAO (NVTKq.L), Origin Energy Ltd (ORG.AX),
Royal Dutch Shell (RDSa.L), Surgutneftegaz(pref) (SNGS_P.MM), Suncor Energy Inc (SU.TO),
Subsea 7 (SUBC.OL), Southwestern Energy Co (SWN), TMK (TRMKq.L),
TransCanada & TC Pipelines, Tesoro & Tesoro Logistics, Weir Group (WEIR.L),
Walter Energy (WLT)
CAT oil (O2C.DE)
Potential impact from OFS sanctions on the
growth strategy execution – New details
31 July 2014 ¦ 7 pages ir.citi.com
MPC & MPLX
MPC Beat on Wholesale Margins; 19% Dividend Increase
1 August 2014 ¦ 15 pages ir.citi.com
MPC adjusted 2Q’14 EPS of $2.95 was above our estimate of $1.65. 2Q results
exceeded our expectations because we overestimated the impact of a tornado at
the Garyville refinery. Results were also supported by MPC’s ability to capture
additional profits through wholesale (~$0.40 p/s above trend). MPLX, the
affiliated master limited partnership, reported 2Q’14 adj. EBITDA of $40.7 mm
(including adjustments related to minimum volume commitments), which beat our
estimate of $35.7 mm by ~14%.
Novatek OAO (NVTKq.L)
2Q14 IFRS outperforms on transport, other cost savings
31 July 2014 ¦ 7 pages ir.citi.com
Origin Energy Ltd (ORG.AX)
Production and APLNG progress in line with expectations
1 August 2014 ¦ 15 pages ir.citi.com
Royal Dutch Shell (RDSa.L)
2013 an Aberration as Earnings Power Improves; Raise Target
31 July 2014 ¦ 10 pages ir.citi.com
RDS 2Q adjusted net income of $6.13 B was 12% ahead of consensus, the
second successive quarter of better than consensus numbers from the company.
Improvements in Upstream operating performance look behind the change, a
combination of good profitability in LNG and a better cost position in US shale.
We raise 2014E EPS by 7% and 9% in 2015 around a revised view on LNG
profitability. We also raise cash flow estimates and our DCF-based price target
from 2330p to 2550p. No doubting that the RDS, off a now apparently low 2013
base, has had good operational momentum in 1H14. However, our model still
points to a business that can deliver a c. 12% ROE in 2018E which looks well-
priced by the market at c 1.3x end-17 book. Neutral.
Surgutneftegaz(pref) (SNGS_P.MM)
2Q14 net cash grows to $35.6bn, 14% above current market cap
31 July 2014 ¦ 9 pages ir.citi.com
Suncor Energy Inc (SU.TO)
EPS Miss; 22% Dividend Increase; 2014 Capex Lower by $1.0 Bn
31 July 2014 ¦ 10 pages ir.citi.com
Subsea 7 (SUBC.OL)
Backlog Concerns Overstated. Valuation Attractive. Buy.
1 August 2014 ¦ 8 pages ir.citi.com
Southwestern Energy Co (SWN)
Results: Q2’14 Beats; FY Production Guidance Bumped
31 July 2014 ¦ 10 pages ir.citi.com
TMK (TRMKq.L)
TMK – A potential beneficiary of EU sanctions?
31 July 2014 ¦ 7 pages ir.citi.com
TransCanada & TC Pipelines
Power Misses; Maintaining Separation Thesis
31 July 2014 ¦ 14 pages ir.citi.com
We reaffirm our case for spinning off TRP's Power segment due to negative
synergies with the Pipeline segment. In our view, the Q2 result, where a strong
showing at the Pipelines was overshadowed by a difficult one in Power,
underscores the merit of our viewpoint. Asked about the value of TRP's
conglomerate structure on the call, TRP management pointed to 5 benefits.
Faisel Khan, CFA
Tesoro & Tesoro Logistics
Growth through Midstream & Refining Portfolio Optimization
31 July 2014 ¦ 15 pages ir.citi.com
TSO reported 2Q adjusted EPS of $1.70, below our estimate of $1.82 (Street of
$1.85). Stronger performance in California and Retail was offset by weaker
results in the Pacific Northwest. TLLP reported Q2 adj. EBITDA of $69.6 mm,
which missed both our estimate of $71.7 mm by ~2.9% and the consensus
estimate of $70.6 mm by ~1.4%. Total TLLP revenues were largely in line with
our estimate however, higher operating and G&A expenses caused the miss.
Weir Group (WEIR.L)
Buying Opportunity – Oil and Gas Well Ahead
1 August 2014 ¦ 8 pages ir.citi.com
Walter Energy (WLT)
Sufficient Liquidity to Weather Depressed Pricing, Lowering Estimates and Target
31 July 2014 ¦ 10 pages ir.citi.com |
