Key Energy Sector Coverage Updates for July 10–14
Carrizo’s Delaware deal
In yet another Permian deal, on June 28, 2017, Carrizo Oil & Gas (CRZO) announced its intention to acquire properties in the Delaware Basin owned by ExL Petroleum Management, a company in Quantum Energy Partners’ portfolio. The transaction’s value was pegged at $648 million in cash.
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Update on BP’s exploration asset focus
BP (BP) has rechurned its exploration assets to focus on those assets that provide it with a competitive edge. To do so, BP has not only exited a few projects, it’s also increased its stake in other projects. It’s essential for BP to monitor its exploration assets so that it only retains projects that can provide returns at all points in the oil price cycle.
Halliburton earnings forecast
In 2Q17, analysts expect to see adjusted EPS (earnings per share) of $0.18 for Halliburton (HAL), a 3.4x improvement over its 1Q17 adjusted EPS of $0.04. The accelerated rig count in North America, higher completion activities, and increased upstream activities in many of Halliburton’s international operations are expected to be key drivers of this earnings improvement.
Anadarko’s earnings estimates
Anadarko Petroleum (APC) plans to release its 2Q17 earnings after the markets close on July 24, 2017. APC’s 2Q17 revenue estimate stands at ~$2.5 billion, compared to its 2Q16 revenue of ~$1.9 billion. APC’s 1Q17 revenue totaled $3.7 billion.
NOV earnings forecast
Wall Street analysts expect National Oilwell Varco (NOV) to post adjusted EPS of -$0.15 in 2Q17, an improvement over the company’s 1Q17 adjusted EPS of -$0.17. Higher margins in the company’s Rig Systems segment and higher revenues in many of its operating segments could boost its 2Q17 earnings. NOV is expected to hold its 2Q17 earnings conference call on July 28.
Inside Valero’s growth plans
Valero Energy (VLO) is set to leap onto a growth path by creating an integrated downstream value chain. VLO intends to focus on refining as well as logistics growth. It aims to achieve ~$1.2 billion–$1.4 billion in incremental annual EBITDA (earnings before interest, tax, depreciation, and amortization) from capital expenditure (or capex) activities.
Whiting Petroleum earnings forecast
Analysts’ 2Q17 revenue estimates for Whiting Petroleum (WLL) are similar to its revenue in the previous quarter. Its 2Q17 revenue is expected to be ~$369 million. Its 1Q17 revenue was $371 million, and its 2Q16 revenue was ~$340 million.