Usually, when a company announces that it will sell more shares, its stock prices drops (dilution and all that). Not so WPX Energy (WPX), which announced that it would sell 49.5 million shares worth nearly $500 million. Citigroup’s Jeanine Wai and team explain why investors haven’t been put off by the offering:
iStockphoto.comThe $50/Bbl Question Is Answered �� In our June 2nd note entitled, ��Rethinking Risk/Reward on High Beta E&Ps,�� we highlighted that $50/Bbl is a critical level as it is around which many E&Ps have indicated they would begin either utilizing drilled-but-uncompleted (DUC) wells and/or increasing activity. Thus, with the NYMEX strip exceeding ~$50/Bbl in H2��16 and 2017, the question becomes, ��What will E&Ps do next?�� In our note we distinguished which oilier SMID Caps could organically accelerate at current NYMEX strip prices without further leveraging the balance sheet and which would still require higher oil prices. We ranked WPX third, behind�Oasis Petroleum (OAS) and Whiting Petroleum (WLL) in terms of its ability to accelerate through the drill-bit while keeping the balance sheet intact. For WPX we concluded that without increasing activity beyond our base case assumptions or higher oil prices, leverage would increase by 0.8x in 2017. However with accelerated activity and corresponding higher outspend (via more Williston DUCs and an addt��l Permian rig), we forecast WPX could further grow production next year and keep leverage flattish at ~3.5x Net Debt/EBITDAX. We think today��s announcements confirm our thesis, as WPX increased 2016 Williston activity and issued equity to facilitate this addt��l spend plus potential activity acceleration in 2017/2018 without adding more debt.
Top 5 Energy Stocks To Invest In 2019: Ballard Power Systems, Inc.(BLDP)
Advisors' Opinion:- [By Scott Levine]
Riding the wave of enthusiasm for alternative power, Plug Power (NASDAQ:PLUG) has made great strides in bringing its hydrogen-power solutions to the materials handling equipment market. Thanks, in part, to deals with the world's largest retailers like Walmart and Amazon, Plug Power has grown its top line at a compound annual growth rate (CAGR) of 21% over the past 10 years. This is no small feat considering that Ballard Power Systems (NASDAQ:BLDP), which is arguably Plug Power's greatest fuel-cell competitor, has only grown its top line by an average of 8% annually over the same period.
- [By Maxx Chatsko]
That much becomes clear after taking a look at fuel cell stocks Plug Power (NASDAQ:PLUG) and Ballard Power Systems (NASDAQ:BLDP). The companies generated just $235 million in revenue combined last year. While that would seem to indicate that the technology has a ways to go, a closer look shows both companies are on an upward trajectory as they position to exploit decarbonization trends. It also reveals two different growth strategies.
- [By Maxx Chatsko]
That may not be surprising to investors considering the massive Chinese market has lifted diverse sectors and industries in the last two decades, but China may prove critical to the success of struggling fuel cell stocks. Can Ballard Power Systems (NASDAQ:BLDP) and Plug Power (NASDAQ:PLUG) capitalize on the opportunity in the East?
- [By Maxx Chatsko]
Fuel cell stocks tend to be more volatile than the average equity, owing at least in part to the ever-changing business models of the industry. But even that makes it difficult to explain the wild ride Ballard Power Systems (NASDAQ:BLDP) shareholders have been on in the last year.
- [By Logan Wallace]
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- [By Stephan Byrd]
Get a free copy of the Zacks research report on Ballard Power Systems (BLDP)
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Top 5 Energy Stocks To Invest In 2019: National Oilwell Varco, Inc.(NOV)
Advisors' Opinion:- [By Shane Hupp]
Iowa State Bank lifted its stake in National Oilwell Varco (NYSE:NOV) by 9.4% in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 18,546 shares of the oil and gas exploration company’s stock after purchasing an additional 1,589 shares during the quarter. Iowa State Bank’s holdings in National Oilwell Varco were worth $683,000 at the end of the most recent reporting period.
- [By Logan Wallace]
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- [By Matthew DiLallo]
After steadily improving for several quarters, National Oilwell Varco's (NYSE:NOV) recovery hit a speedbump in the first quarter of 2018. Revenue declined 9% from the previous quarter and missed its forecast due to several issues. However, one thing the company's management team made clear on the accompanying conference call was that while the quarter was a disappointment, they're increasingly optimistic about what they see ahead.
- [By Stephan Byrd]
Oil States International (NYSE: OIS) and National-Oilwell Varco (NYSE:NOV) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.
- [By The Ticker Tape]
TD Ameritrade clients appeared to take some profits in multiple names during the period. Oil companies were popular sells with ConocoPhillips (NYSE: COP), BP PLC (ADR) (NYSE: BP), National-Oilwell Varco Inc. (NYSE: NOV), and Transocean LTD (NYSE: RIG) all net sold. Oil prices traded near three-year highs on higher global demand and possible OPEC-led production cuts. COP and BP both traded at multi-year highs, while NOV and RIG reached 52-week highs, enticing clients to take profits in all four names. Alcoa Corp. (NYSE: AA) traded at levels not seen since before the financial crisis following proposed tariffs on steel and aluminum, and was net sold. For the third month in a row, Facebook, Inc. (NASDAQ: FB) was net sold after CEO Mark Zuckerberg testified before Congress regarding the misuse of user data and a beat on earnings.
Top 5 Energy Stocks To Invest In 2019: Macquarie Infrastructure Company(MIC)
Advisors' Opinion:- [By Max Byerly]
Macquarie Infrastructure Corp (NYSE:MIC) has been assigned an average recommendation of “Hold” from the ten analysts that are currently covering the company, MarketBeat Ratings reports. Three analysts have rated the stock with a sell rating, four have given a hold rating and three have assigned a buy rating to the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $49.60.
- [By Joseph Griffin]
Atria Investments LLC raised its holdings in Macquarie Infrastructure (NYSE:MIC) by 59.3% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 8,737 shares of the conglomerate’s stock after acquiring an additional 3,251 shares during the quarter. Atria Investments LLC’s holdings in Macquarie Infrastructure were worth $323,000 as of its most recent filing with the SEC.
- [By Joseph Griffin]
Macquarie Infrastructure (NYSE: MIC) and Aegean Marine Petroleum Network (NYSE:ANW) are both multi-sector conglomerates companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
- [By Joseph Griffin]
Macquarie Infrastructure (NYSE: MIC) and Aegean Marine Petroleum Network (NYSE:ANW) are both multi-sector conglomerates companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.
Top 5 Energy Stocks To Invest In 2019: Enduro Royalty Trust(NDRO)
Advisors' Opinion:- [By Lisa Levin]
Check out these big penny stock gainers and losers
Losers Jounce Therapeutics, Inc. (NASDAQ: JNCE) fell 32.5 percent to $11.92 in pre-market trading. Jounce Therapeutics reported that data from ongoing ICONIC trial of JTX-2011 will be presented at the ASCO. Acxiom Corporation (NASDAQ: ACXM) fell 10.7 percent to $24.60 in pre-market trading. Acxiom reported stronger-than-expected results for its fourth quarter, but issued weak FY19 guidance. American Public Education, Inc. (NASDAQ: APEI) shares fell 10.7 percent to $35 in pre-market trading. Enduro Royalty Trust (NYSE: NDRO) shares fell 8.5 percent to $3.25 in pre-market trading after tumbling 10.76 percent on Wednesday. NetEase, Inc. (NASDAQ: NTES) fell 8.3 percent to $244.00 in pre-market trading after reporting Q1 results. Aircastle Limited (NYSE: AYR) fell 7.2 percent to $21.30 in pre-market trading after announcing 7.9 million secondary offering of common shares. Boxlight Corporation (NASDAQ: BOXL) shares fell 5.6 percent to $9.29 in pre-market trading after rising 2.29percent on Wednesday. Brainstorm Cell Therapeutics Inc. (NASDAQ: BCLI) shares fell 5.3 percent to $3.93 in pre-market trading after rising 5.60 percent on Wednesday. Cisco Systems, Inc. (NASDAQ: CSCO) fell 4 percent to $43.40 in pre-market trading. Cisco reported better-than-expected results for its third quarter. The company sees fourth quarter earnings in the range of 68 cents-70 cents with sales growth of 4-6 percent. Jack in the Box Inc. (NASDAQ: JACK) fell 3.2 percent to $88.45 in pre-market trading after the company reported downbeat results for its second quarter. Comps were down 0.1 percent in the quarter. The company sees third-quarter comps coming in flat to up 1 percent. Children's Place, Inc. ( - [By Joseph Griffin]
Get a free copy of the Zacks research report on Enduro Royalty Trust (NDRO)
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Top 5 Energy Stocks To Invest In 2019: Permian Basin Royalty Trust(PBT)
Advisors' Opinion:- [By Joseph Griffin]
Primalbase Token (CURRENCY:PBT) traded down 7.8% against the US dollar during the 24 hour period ending at 12:00 PM ET on May 22nd. Primalbase Token has a total market capitalization of $2.53 million and $838,489.00 worth of Primalbase Token was traded on exchanges in the last day. One Primalbase Token token can currently be bought for $2,024.98 or 0.24530700 BTC on popular cryptocurrency exchanges including Tidex and Waves Decentralized Exchange. During the last seven days, Primalbase Token has traded down 14.5% against the US dollar.
- [By Ethan Ryder]
Primalbase Token (CURRENCY:PBT) traded up 0% against the U.S. dollar during the 24-hour period ending at 9:00 AM Eastern on May 13th. In the last week, Primalbase Token has traded down 12.7% against the U.S. dollar. One Primalbase Token token can currently be purchased for about $2,575.27 or 0.30100000 BTC on major exchanges including Waves Decentralized Exchange and Tidex. Primalbase Token has a total market capitalization of $3.22 million and approximately $872,784.00 worth of Primalbase Token was traded on exchanges in the last day.
- [By Joseph Griffin]
Media stories about Permian Basin Royalty Trust (NYSE:PBT) have been trending somewhat positive this week, Accern reports. The research group identifies positive and negative news coverage by reviewing more than 20 million blog and news sources in real time. Accern ranks coverage of companies on a scale of -1 to 1, with scores nearest to one being the most favorable. Permian Basin Royalty Trust earned a daily sentiment score of 0.17 on Accern’s scale. Accern also assigned media coverage about the oil and gas producer an impact score of 46.225040116545 out of 100, meaning that recent news coverage is somewhat unlikely to have an impact on the stock’s share price in the immediate future.
- [By Max Byerly]
Primalbase Token (CURRENCY:PBT) traded down 2.5% against the US dollar during the 1 day period ending at 23:00 PM Eastern on May 26th. Primalbase Token has a total market cap of $1.90 million and $282,320.00 worth of Primalbase Token was traded on exchanges in the last day. One Primalbase Token token can now be bought for about $1,516.30 or 0.20760100 BTC on popular exchanges including Tidex and Waves Decentralized Exchange. During the last week, Primalbase Token has traded down 30.5% against the US dollar.
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