For Immediate Release Chicago, IL – May 20, 2015 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog includethe Williams Companies Inc. (WMB), BP plc (BP), ConocoPhillips (COP), Encana Corp. (ECA) and Transocean Ltd. ( RIG). Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free. Here are highlights from Tuesday’s Analyst Blog: Oil & Gas Stock Roundup It was a week where oil prices tested the $60-a-barrel level and natural gas rallied to its highest close since Jan. On the news front, the top story came from pipeline giant Williams Companies Inc.’s (WMB) $13.8 billion buyout deal for its master limited partnership unit Williams Partners L.P. and supermajor BP plc’s ( BP) part sale of its oil venture in Australia. Overall, it was a bullish week for the sector. While resurgent West Texas Intermediate (WTI) crude futures inched up another 0.5% to close at $59.69 per barrel, natural gas prices jumped 4.7% to $3.02 per million Btu (MMBtu). (See the last ‘Oil & Gas Stock Roundup’ here: More M&A in the Oil Patch as Noble Buys Rosetta for $2.1B .) Oil prices gained for the eighth time in past 9 weeks, encouraged by the U.S. Energy Department's latest inventory release that showed a bigger-than-expected decline in crude stockpiles, the second drop in as many weeks. This is seen as a precursor to a slowdown in oil production leading to a subsequent drop in the commodity’s bloated supply level. Things were further helped by the Baker Hughes report that showed another drop in oil-directed rigs – the 23rd in succession – indicating a break in shale drilling activities. Moreover, a weaker dollar has made the greenback-priced crude cheaper for investors holding foreign currency. Natural gas fared even better amid predictions of robust cooling demand with forecasts of warmer-than-average temperature in the eastern region of the U.S. A lower-than-expected supply increase added to the optimism. Recap of the Week’s Most Important Stories 1. North American energy firm Williams Companies Inc. announced that it would acquire Williams Partners L.P. in a $13.8 billion all stock-for-unit deal. While shares of Williams Companies gained over 6%, Williams Partners units soared nearly 23% following the announcement. The deal – expected to close in the third quarter – will result in an expanded portfolio for the combined entity. Also, the transaction will result in reduced cost of capital and higher tax benefits. The company believes that these strengths should facilitate the 10–15% dividend growth through 2020. (See More: Williams to Acquire Subsidiary in $13.8B Stock Deal ) 2. British energy major BP plc intends to divest a portion of its oil project off southern Australia for approximately A$1 billion ($800 million). The company intends to carry out this proposal prior to an exploration campaign, which is scheduled to begin around the end of 2016. The sales process is slated to begin in the second half of 2015. BP plans to reduce its stake between 40% and 50% from its current holding of 70% during the aforementioned sale. BP seeks to partner with other companies to explore in the Bight, which will effectively lower its cost and also make its operations more efficient. The drilling at the Bight is expected to commence in Oct 2016. BP is expected to drill a second well and halt prior to advancing with another two wells. 3. Houston-based independent explorer and producer ConocoPhillips ( COP) is expected to maintain its capital expenditure for the next three years. Further, despite a projected drop in the company’s production from shale fields in the second half of the year, total output is estimated to increase by 2–3% in 2015. (See More: ConocoPhillips to Sustain a Capex of $11.5B for 3 years ) Earlier this year, the company had lowered its spending forecast for 2015, owing to falling oil prices. In January, the largest independent U.S. energy company had announced that it has lowered its 2015 capital budget to $11.5 billion, down $2 billion from the previous capital budget amount. Per management, ConocoPhillips intends to maintain its capex at the current level for the next three years, irrespective of oil prices moving up. 4. Calgary, Alberta-based Encana Corp. (ECA) reported better-than-expected first-quarter 2015 earnings on higher liquid volumes. The company's oil and liquids production surged 78% year over year to 120,700 barrels per day on strong contribution from the Montney, Duvernay, Eagle Ford and Permian shale plays. However, operating earnings tanked from the year-ago profit, owing to lower natural gas volumes and reduced commodity realizations. In the first quarter, natural gas production declined over 34% year over year to 1,857 million cubic feet per day (Mmcf/d). Encana's realized natural gas prices were $4.78 per thousand cubic feet, lower than the year-ago quarter level of $5.82, while oil was sold at $37.83 per barrel, significantly down from $69.19 per barrel during first-quarter 2014. (See More: Encana Earnings Top Estimates on Strong Liquid Growth in Q1 ) 5. Offshore drilling behemoth Transocean Ltd. (RIG) has provided a monthly fleet status report for the period from Apr 16, 2015. The value of the new deals and extensions in contracts, which were made during the aforesaid time frame, is estimated at roughly $52 million. Importantly, Transocean stated that the expected out-of-service time for 2015 has been lowered by 27 days. Per the report, two rigs – GSF Development Driller II (a sixth generation semi-submersible rig) and Sedco Express (a fifth generation semi-submersible) – received contract extensions. The company also confirmed that it has delayed construction contracts with Keppel FELS for the delivery of its five newbuild high-specification jackups. This is in addition to the five month delay announced by Transocean in February. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> About Zacks Equity Research Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term. Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons. Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WILLIAMS COS (WMB): Free Stock Analysis Report BP PLC (BP): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report ENCANA CORP (ECA): Free Stock Analysis Report TRANSOCEAN LTD (RIG): Free Stock Analysis Report To read this article on Zacks.com click here.
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