|Day's Range||0.3000 - 0.3300|
The elite funds run by legendary investors such as David Tepper and Dan Loeb make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don't follow. Because of their pay structures, they have strong incentives to do the research necessary […]
Oil prices continued their near-month-long, post-September 16, post-Saudi Arabian drone attack slide on Tuesday. After falling 5.5% last week, WTI Crude futures closed down 0.3% at $52.46 yesterday, and Brent Crude was off a similar 0.3%, closing at $59.07.The reason, unfortunately, is not that the Middle East has suddenly become a safer place to do business. It hasn't, with a new border war due to break out along the Iraq-Turkey border any day now, and a Saudi response to Iran's (alleged) strike against its oil facilities still pending. Instead, market participants are becoming more anxious about the next round of U.S.-China trade talks later this week, and what a failure of the two superpowers to reach an accommodation might mean for the global economy.Naturally, worries like these are pushing the price of oil stocks down in tandem with oil prices. For example, independent oil and gas exploration and production company Pioneer Natural Resources has lost 16% of its value since the September 16 attacks. Another independent producer, CNX Resources, has lost 20%, while yet a third, WPX Energy, is down 21%.But here's the good news: According to the consensus of Wall Street analysts, all three of these stocks could go back up -- as much as 30%. Let's take a closer look:CNX Resources (CNX)The most heavily leveraged of these three "strong buy" rated oil stocks, CNX Resources boasts a $1.3 billion market capitalization ... and $2.8 billion in debt.Despite all the debt, CNX Resources is a profitable operation, generating more than $300 million in net profit over the last 12 months -- enough to give the stock a trailing P/E ratio of just over 4.2. The stock is not free cash flow positive, however, burning through more than $250 million in cash over the last 12 months.Still, in a note recommending the stock, Jefferies analyst Zach Parham predicted that "a more capital efficient budget than expected in 2020," combined with plans to "hold production flat in 2021" hold out the prospect for CNX generating positive free cash flow in the near future -- which would provide cash CNX could use to pare its debt load.Parham predicts the stock could close out this year with about $85 million in free cash flow -- and grow that number by nearly half, to perhaps $110 million, in 2021. With a $10 price target on the stock, the analyst believes the stock can rise about 40% over the next 12 months. (To watch Parham's track record, click here)"CNX remains one of only two Buy rated gassy E&Ps (along with COG), as we believe CNX can generate growth and FCF in 2020, while also having the potential to bring forward value through asset sales (CNXM GP, CNXM units, remaining midstream assets, CBM, etc)," the analyst concluded.How does Parham's bullish bet weigh in against the Street? It appears the analyst is not the only one enthusiastic on this oil stock, with TipRanks analytics demonstrating CNX as a Strong Buy. Out of 3 analysts polled in the last 3 months, all 3 are bullish on the stock. With a return potential of nearly 36%, the stock’s consensus target price stands at $9.67. (See CNX stock analysis on TipRanks)WPX Energy (WPX) Next on our list today is another three-lettered oil company: WPX. Like CNX, it's a debt-laden company with strong GAAP profits but no free cash flow to speak of -- in fact, WPX burned through nearly a half-billion dollars in cash over the last year. But with a $4.1 billion market capitalization, WPX is a bit bigger, and perhaps a bit better able to manage its debt -- which at $2.1 billion net of cash, is actually a bit lighter than what CNX is carrying around.One bright note on this stock: Last quarter marked the first quarter in more than a year that WPX generated positive free cash flow from its business. It wasn't a lot -- $39 million to be precise -- but it might have been a sign of better times to come.Guggenheim analyst Subash Chandra highlighted positive free cash in Q2 combined with 10% production growth and the prospect of $55-a-barrel oil prices as supporting hopes for consistent cash generation at the company -- beginning with another $56 million generated in Q3. While risk-averse investors might prefer to see the company use some of this cash to begin paying down debt, Chandra believes it's more likely that WPX will deploy its cash as part of "a $400mm stock buyback program" -- which to be sure, would also be a plus for shareholders."The company pushed the maturity wall to 2023 while reducing borrowing costs [...] At $55 oil, we estimate a FCF yield of 9-10% assuming maintenance capex of $900mm next year, with potential upside if WPX can achieve the 15-20% LOE improvements targeted. Markets may worry about Bakken inventory as the play has been the primary oil growth driver. But otherwise WPX has addressed many issues dogging other companies. We expect shares to outperform with our price target upside potential realized if an appetite for 2P resources return," the analyst opined.And as far as target prices go, Chandra is even more optimistic than most other analysts. Whereas the consensus on Wall Street is that WPX will go to $15 over the next year (53% upside), Chandra thinks the shares are worth at least $17 -- which if correct, would mean 73% profits for investors who buy today. (See WPX Energy stock analysis on TipRanks)Pioneer Natural (PXD)Last and far from least, we come to Pioneer Natural -- at $20.6 billion in market cap, by far the biggest of these three oil companies. That's not all that Pioneer stock has to recommend it, though.With only a $1.6 billion debt load (net of cash), Pioneer sports by far the cleanest balance sheet of this bunch, the least leverage, and the lowest level of absolute debt to boot. It's also the only one of these companies in sufficiently fine financial fettle to sustain a regular dividend payment -- 1.4%.Evercore ISI analyst Stephen Richardson, who recommends the stock, praised Pioneer for raising its dividend in its Q2 update -- a report that also featured reductions in general and administrative spending. Like WPX, Richardson noted that Pioneer is conducting a buyback program, having repurchased $200 million worth of stock in the quarter. The analyst liked the fact that after declaring that he "saw value and ... a discount to intrinsic value" in the stock price, Pioneer's board moved quickly to put its money where its mouth was, and scoop up some cheap stock.And speaking of cheap ... Wall Street in general thinks this stock is pretty cheap, too. Predicting the shares will fetch more than $180 12 months from now, the consensus on the Street is that within a year, people buying Pioneer stock at today's prices could be sitting on a 46.5% profit! (See Pioneer Natural stock analysis on TipRanks)
Brookfield Infrastructure Partners (BIP) issues $500 million of 3.538% medium-term notes. The proceeds from the same are going to be used for refinancing old debts and funding its pipeline projects.
Black Hills Corporation (BKH) is set to issue $700 million notes to refinance outstanding debt and utilize balance proceeds for general corporate purposes.
WPX Energy (WPX) plans to discuss its third-quarter 2019 financial and operations results during a webcast on Thursday, Oct. 31, 2019, beginning at 10 a.m. Eastern. Chief Executive Officer Rick Muncrief, Chief Operating Officer Clay Gaspar and Chief Financial Officer Kevin Vann will discuss the company’s performance. The company also has a midstream infrastructure portfolio in the Permian Basin.
Billionaire hedge-fund investor Leon Cooperman thinks the 10-year-old great bull stock market is far from over, which to him means there is plenty of upside left. Quite simply, bull markets don’t end when stocks reach fair valuations, which is the case today, the CEO of Omega Advisors said.
WPX Energy (WPX) announced today the early results and early settlement and the amendment of certain terms of its previously announced cash tender offers (the “Tender Offers”) to purchase up to $450 million aggregate principal amount of its outstanding 6.000% Senior Notes due 2022 (the “2022 Notes”) and 8.250% Senior Notes due 2023 (the “2023 Notes” and together with the 2022 Notes, the “Notes”). According to information received from Global Bondholder Services Corporation, the Depositary and Information Agent for the Tender Offers, as of 5:00 p.m., New York City time, on Sept. 23, 2019 (that date and time, the “Early Tender Date”), $455.5 million aggregate principal amount of the 2022 Notes and $220.7 million aggregate principal amount of the 2023 Notes were validly tendered and not validly withdrawn pursuant to the Tender Offers.
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
WPX Energy (WPX) announced today that it has priced its public offering of $600 million of its 5.250% Senior Notes due 2027. The net proceeds from the offering will be approximately $592.5 million after deducting underwriting discounts and commissions and before estimated offering expenses payable by WPX. WPX intends to use the net proceeds from the offering and, if necessary, any other sources of available funds, which may include borrowings under its senior secured credit facility, to fund its previously announced cash tender offers for its outstanding 6.000% Senior Notes due 2022 and 8.250% Senior Notes due 2023.
Moody's Investors Service ("Moody's") assigned a B1 rating to WPX Energy, Inc.'s (WPX) proposed senior unsecured notes due 2027. WPX's existing ratings, including its Ba3 Corporate Family Rating (CFR), Ba3-PD Probability of Default Rating, B1 ratings on the senior unsecured notes and SGL-2 Speculative Grade Liquidity (SGL) rating are unchanged. "WPX's proposed notes issuance and tender for existing notes will increase the weighted average life of its debt by over one year, while leaving leverage neutral," commented James Wilkins, Moody's Vice President -- Senior Analyst.
WPX Energy (WPX) announced today that it has commenced cash tender offers (the “Tender Offers”) to purchase up to $450,000,000 aggregate principal amount (as it may be increased by WPX, the “Aggregate Maximum Tender Amount”) of its outstanding 6.000 percent Senior Notes due 2022 (the “2022 Notes”) and 8.250 percent Senior Notes due 2023 (the “2023 Notes” and, together with the 2022 Notes, the “Notes”). The terms and conditions of the Tender Offers are described in an Offer to Purchase, dated Sept. 10, 2019 (the “Offer to Purchase”). WPX intends to fund the Tender Offers with the net proceeds of its proposed offering of debt securities (the “Debt Financing”) and, if necessary, any other sources of available funds, which may include borrowings under its revolving credit facility.
WPX Energy (WPX) announced today that it has commenced an underwritten public offering of $500 million of senior unsecured notes due 2027. WPX intends to use the net proceeds from the offering and, if necessary, any other sources of available funds, which may include borrowings under its senior secured credit facility, to fund the purchase of up to $450 million aggregate principal amount of its outstanding 6.000% Senior Notes due 2022 and 8.250% Senior Notes due 2023 through cash tender offers. Any excess net proceeds will be used for general corporate purposes, which may include the repayment or redemption of outstanding indebtedness.
Wall Street is drifting lower again on Wednesday as President Donald Trump remains unable to juice prices higher with hopes of a U.S.-China trade deal despite his best efforts on Twitter (NYSE:TWTR). The problem with all his obvious market coddling is that China isn't playing along, with Beijing's strategy appearing to harden its position and push American share prices lower.As a result, the Dow Jones Industrial Average is testing critical support near its 200-day moving average.Despite this, there are areas of the market such as energy that are perking up. Crude oil is challenging down channel resistance that has been in play since April in what looks like a reappearance of fears over tensions with Iran. As a result, a number of extremely cheap oil and gas stocks are perking up.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Tech Industry Dividend Stocks for Growth and Income Here are four worth a look: Northern Oil and Gas (NOG)Shares of Northern Oil and Gas (NYSE:NOG) are extending above their 50-day moving average, breaking out of the downtrend channel that has been in place since late April. Watch for a run to the 200-day moving average, which would be worth a gain of nearly 20% from here. Shares are bounding off of support from the early 2018 lows near $1.50.The company has been focused on building out its portfolio of properties, expanding it at a time when prices are cheap and sentiment is low. It completed roughly 40 acquisitions since the end of March, adding approximately 6,325 net acres. Extraction Oil & Gas (XOG)Shares of Extraction (NASDAQ:XOG) look set to push up and over its 200-day moving average for the first time since the summer of 2018, ending a tight sideways consolidation that has been in place since December. Coverage was recently initiated by KeyBanc analysts with a buy rating. Wells Fargo resumed coverage in May and are looking for a $8 price target, a move that would be worth a gain of nearly 100% from here. * 10 Companies Using AI to Grow The company will next report results on Nov. 5 after the close. Analysts are looking for a loss of 10 cents per share on revenues of $236.9 million. When the company last reported on Aug. 1, earnings of 22 cents per share beat estimates by 29 cents on a 14.6% decline in revenues. CNX Resources (CNX)Shares of CNX Resources (NYSE:CNX) have pushed up and over their 50-day moving average, testing the upper end of a multi-month consolidation range in what looks like the end of a downtrend that has been in play since the summer of 2018. Watch for a run at the 200-day moving average, which would be worth a gain of roughly 40% from here.The company will next report results on Oct. 29 before the bell. Analysts are looking for a loss of two cents per share on revenues of $333.7 million. When the company last reported on July 30, earnings of six cents per share missed estimates by eight cents on a 50.5% decline in revenues. WPX Energy (WPX)WPX Energy (NYSE:WPX) shares are emerging above its 50-day moving average, ending a downtrend pattern that's been in place since late April after testing support from its late-December lows. The independent shale oil and gas producer, which is based in Oklahoma and has assets in the Permian and Williston Basins, was recently called a Top Pick by Williams Capital analysts.The company will next report results on Oct. 30 after the close. Analysts are looking for earnings of 13 cents per share on revenues of $647.1 million. When the company last reported on Aug. 5, earnings of nine cents per share beat estimates by two cents on a 61.6% rise in revenues.As of this writing, William Roth did not hold any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Industry Dividend Stocks for Growth and Income * 7 Stocks the Insiders Are Buying on Sale * 7 of the Worst Stocks on Wall Street The post 4 Ultra-Cheap Oil Stocks to Buy appeared first on InvestorPlace.
Today we are going to look at WPX Energy, Inc. (NYSE:WPX) to see whether it might be an attractive investment...
WPX (WPX) delivered earnings and revenue surprises of 28.57% and 20.33%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
WPX (WPX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.