Category Archives: Energy
2022 Large Cap Performance Analysis
Large cap stocks, as measured by the Lark Research Large Cap Index (the “Index”) which mirrors the S&P 500, posted a decline of 19.5% in 2022. As in previous years, most of the performance was driven by a handful of … Continue reading
Baker Hughes (BKR) 22Q3 Update
BKR reported a 22Q3 GAAP net loss of $0.02 per share vs. 21Q3’s profit of $0.01. Non-GAAP adjusted EPS was $0.26 vs. $0.16. I had anticipated 22Q3 GAAP EPS of $0.18 and Non-GAAP EPS of $0.30. BKR’s 22Q3 non-GAAP EPS … Continue reading
The Drivers of Large Cap Stock Performance in 2021
Estimated Returns by Sectors, Industry Groups and Industries Large cap stocks, as measured by the Lark Research Large Cap index (the “Index”) which currently mirrors the S&P 500, turned in another impressive performance in 2021. The Index posted a price … Continue reading
2021 Market Outlook – Part 2: S&P 500 Sector Analysis
2020 was of course dominated by the impact of the pandemic on the economy and specifically on the revenues and profits of each of the S&P 500 constituents. There was a sharp stock market sell-off in March-April, followed by a … Continue reading
The Outlook Begins to Improve (Gradually) for BHGE
The net income and EPS figures for the 2019 first quarter for Baker Hughes, a GE company, are confusing as presented. The company reported net income (before income or loss allocated to the non-controlling interest, which is GE) of $71 … Continue reading
Diamond Offshore Works to Stay Afloat
Diamond Offshore is the offshore drilling company that is 53%-owned by Loews Corporation. The company currently owns a fleet of 17 “floaters” (self-propelled drillships and semisubmersible rigs), four of which are currently cold-stacked.
Arch Coal (ARCH) 18Q1 Update
2018 First Quarter Results. On April 26, Arch Coal reported disappointing 2018 first quarter results. Adjusted EPS for the quarter was $2.95, up from $2.82 last year, but behind the consensus forecast of $4.22. Revenues declined 4.3% to $575.3 million, … Continue reading
Imperial Oil (IMO): The Poor Stepchild of Exxon Mobil
Imperial Oil (IMO), in which Exxon Mobil Corp. has a 69.6% stake, is the largest integrated oil company in Canada. Across the value chain, it is a leading producer of oil (primarily through its assets in the Athabasca oil sands), … Continue reading
Baker Hughes Will Likely Reinstate Its Dividend
Baker Hughes and General Electric completed their merger on July 3, 2017. Baker Hughes shareholders received $17.50 in cash and one share of new Baker Hughes stock (BHGE).
Unit Corp Returns to Growth Mode
Unit Corporation is a diversified oil & gas company based in Tulsa, OK. Founded in 1963, the company was originally a contract driller. Over the years, it expanded into oil & gas exploration and production and mid-stream services (i.e. gathering, … Continue reading
A Quick Look at Tidewater’s Chapter 11 Plan
Tidewater, the largest publicly-traded operator of offshore vessels and marine support services for the offshore oil & gas industry filed for Chapter 11 bankruptcy proceedings on May 17, one week after announcing that it had reached agreement with creditors on … Continue reading
Lack of Comprehensive Energy Policy May Prove Costly to U.S.
Last week, I attended the annual presentation of the American Gas Association (AGA) to the New York Society of Security Analysts (NYSSA). The AGA represents companies that deliver natural gas to residential, commercial and industrial customers across the U.S. The … Continue reading
Thoughts and Analysis from Tenaris’s Investor Day
Tenaris S.A. (TS) is one of the world’s leading manufacturers of seamless and welded steel casing and tubing, otherwise known as “oil country tubular goods.” Its products are used mostly in oil & gas drilling operations.
Westmoreland Coal: Still Hanging On
Like most of its peers, Westmoreland Coal Company (WLB) has seen its stock price fall precipitously over the past several years. Its stock is down more than 80% since it peaked in July 2014.
Coal Sector Update
The Dow Jones U.S. Coal Mining Sector Index has more than doubled so far this year, up 117.6% through July 15, obviously much better than the broader DJ US Total Market Index’s gain of 5.7%. Much of coal’s gains reflect “dead … Continue reading
Alpha Natural Resources Puts Its Bankruptcy Plan to a Vote
Alpha Natural Resources (ANRZQ) is the nation’s third largest coal producer and the leading producer of metallurgical coal, with a large reserve base in Appalachia. It also has a meaningful presence in the Powder River Basin in Wyoming.
Despite Oil Plunge, Energy Stocks Still Above August Lows
Last week was a tough one for the stock market, the worst since the August mini-meltdown. Most major averages fell more than 3.5%. The S&P 500 was down 3.8%. The NASDAQ Composite dropped 4.1%. The Russell 2000 lost 5.1%.