A rebound in oil prices lifted major U.S. stock benchmarks, with the Dow at rising more than 222 points to mark its biggest one-day gain in weeks.
The Dow Jones Industrial Average rose 222.4 points today, or 1.26% to close at 17,928.35. The S&P 500 rose 25.7 points, or 1.25%, or to end at 2,084.39, while the Nasdaq gained almost 59.7 points, or 1.26% to close at 4,809.88.
U.S. crude oil rose 2.8% to $44.44 a barrel amid supply concerns due to disruptions in Canada and Nigeria.
Investors exited safe havens in search of riskier holdings, sending gold prices inching lower and boosting the yield on the 10-year U.S. Treasury to above 1.75%.
Energy and financial stocks led today��s rally. The Energy Select Sector SPDR ETF (XLE) rose 1.7%, while the Financials Select Sector SPDR ETF (XLF) climbed 1.4%.
Top 10 Energy Stocks To Invest In 2017: Joy Global Inc.(JOY)
Advisors' Opinion:- [By Ben Levisohn]
Barclays analysts Robert Wertheimer and Adam Seiden explain why they not only upgraded Joy Global (JOY) to Overweight from Equal Weight, but the entire US Machinery Industry to Neutral from Negative:
- [By Ben Levisohn]
Baird’s Mircea Dobre and Joseph Grabowski contend that recent coal bankruptcies from the likes of Peabody Energy are, in fact, good news for Joy Global (JOY). They explain why:
- [By Lisa Levin]
On Thursday, basic materials shares climbed by 0.26 percent. Top gainers in the sector included Joy Global Inc. (NYSE: JOY) and Hecla Mining Company (NYSE: HL).
Top 10 Energy Stocks To Invest In 2017: Euro FX(P)
Advisors' Opinion:- [By Paul Ausick]
Stocks on the move: Nokia Corp. (NYSE: NOK) is up 6.7% at $6.35. Pandora Media Inc. (NYSE: P) is up 12.1% at $23.95 after naming a new CEO. The Walt Disney Co. (NYSE: DIS) is up 2.4% at $65.49 after announcing a new buyback program. The ExOne Co. (NASDAQ: XONE) is down 11.4% at $55.49 after a secondary offering.
- [By Douglas A. McIntyre]
Several�very well-known apps are not on either top five list, but�each must get millions of downloads a month. Twitter, weather apps, Pandora Media Inc. (NYSE: P), eBay Inc. (NASDAQ: EBAY), Gmail, Pinterest, Amazon.com Inc. (NASDAQ: AMZN), Skype and Groupon Inc. (NASDAQ: GRPN) already rule across the PC, tablet and smartphone “ecosystems.” None of these is likely to lose popularity, and some probably will gain more.
- [By Monica Gerson]
Pandora Media (NYSE: P) dipped 3.08% to $23.25 in the pre-market session as the company announced its plans to sell 14 million shares of common stock, including 4 million shares from current stockholders.
- [By Jon C. Ogg]
Pandora Media Inc. (NYSE: P) is supposed to be under a brand new chief executive officer, and we noted recently about waves and waves of insider selling. Now we are getting word that Pandora plans to increase its float with a secondary stock offering.
- [By WALLSTCHEATSHEET.COM]
Pandora is an Internet radio company that attempts to match listeners with their preferences in order to discover music they love. The company has just revealed who the new CEO of the company will be. The stock has been rising higher in recent quarters and is now trading at highs for the year. Over the last four quarters, earnings have been mixed while revenues have been rising, however, investors have expected more from the company. Relative to its peers and sector, Pandora has been a year-to-date performance leader. Look for Pandora to continue to OUTPERFORM.
Top 10 Energy Stocks To Invest In 2017: Newfield Exploration Company(NFX)
Advisors' Opinion:- [By Ben Levisohn]
The large cap E&Ps we cover raised ~ $6.5 billion of equity in 2015 and are likely to consider additional issuance in 2016. Pioneer Natural Resources (PXD) raised $1.3 billion on January 5th and Hess Corp. (HES) raised $1.5 billion of equity/equity-linked earlier this month. We think highly leveraged companies such as Devon Energy,�Encana and�Range Resources (RRC) and companies with a large deficit (before asset sales), such as�Anadarko Petroleum and Devon Energy, are most likely to consider raising equity. Additionally, we believe companies such as WPX Energy (WPX), Southwestern Energy (SWN), Marathon Oil, Continental Resources (CLR),�Noble Energy and Newfield Exploration (NFX) could issue equity while several levered companies may be unwilling or unable to access equity markets. We do not think Apache, Canadian Natural Resource, EOG Resources (EOG), Occidental Petroleum or�Pioneer Natural Resources are likely to issue equity this year.
- [By Ben Levisohn]
Large Caps. Our E&P coverage is pricing in $61/bbl WTI and $3.30 gas, and with a lower crude forecast the group is looking less compelling. We argue names that continue to demonstrate resource improvement at the low-end of the cost curve, namely in the Permian and STACK remain attractive, such as Concho Resources (CXO), Devon Energy (DVN), Newfield Exploration (NFX) and Pioneer Natural Resources (PXD). Noble (NBL) remains a compelling value, though has yet to commit to an accelerated US onshore drilling program.
- [By Ben Levisohn]
Lear also sees strong “upside potential” for�Concho Resources (CXO), Pioneer Natural Resources (PXD) and Newfield Exploration (NFX) as well performance improves in the Permian/STACK, and also writes positively on Devon Energy (DVN).
Top 10 Energy Stocks To Invest In 2017: Transocean Inc.(RIG)
Advisors' Opinion:- [By Ben Levisohn]
Transocean (RIG) finally got around to taking out a loan backed by one of its offshore rigs, and while the size of the loan was bigger than expected–and nearly enough to cover its December maturities–the rate on the loan was higher than expected. Citigroup’s Scott Gruber and Craig Abramson explain:
Getty ImagesAfter months of discussion, Transocean announced an offering for $600mm in secured notes due 2024. The notes will be secured by the Deepwater Thalassa drillship and will pay a coupon of 7.75%. The offering is set to close on October 19. Transocean expects to receive $583mm in net proceeds from the offering. The issuance will not be 1933 Act registered and instead will be a144A and Reg S filing to allow qualified purchases. Additionally, the notes will be callable after October 15, 2020. The Deepwater Thalassa began its ten year contract with Royal Dutch Shell (RDS.A) in February 2016 at a rate of ~$500kpd.
The size of the package is in line with previous commentary from management, but still larger than we would have expected given the essentially non-existent bid market for drillships. The company paid ~$900mm for the rig by its delivery in late 2015. We conservatively assumed the company would get $400mm per rig. The yield is higher than our assumption of ~6.5% given the stress in the offshore rig market coupled with the call option. The company is effectively refinancing the December 2016 5.05% notes (~$938mm outstanding) with a much higher coupon. As a result, the effective average interest rate is set to head towards 7% net of capitalized interest.
The size of the package should be reassuring to investors who have remained cautious on Transocean due to liquidity concerns in the out years as capex and maturities simultaneously come due. Yet the rate raises the company��s interest burden. Thus we believe the news should have a modestly positive reaction on the stock.
Shares of Transocean have gained 0.
- [By Ben Levisohn]
Goldman Sachs analyst�Waqar Syed and team see “green shoots [appearing] in the distance” for oil-field-services sector…just not offshore drillers. They explain why they cut Atwood Oceanics (ATW) and Noble (NE) to sell, where they join Transocean (RIG):
- [By Jon C. Ogg]
Transocean Ltd. (NYSE: RIG) was last seen trading up 17.1% at $12.91. Its volume of more than 42 million shares equated to right at 3 times normal volume. Transocean has a consensus analyst price target of $9.72 and a 52-week trading range of $7.67 to $14.50. The company has a total market cap of $4.7 billion.
- [By Paul Ausick]
Following a November 2011 leak of about 3,600 barrels of oil from a rig offshore of Brazil, Chevron Corp. (NYSE: CVX) and driller Transocean Ltd. (NYSE: RIG) were slapped with a penalty of $17.5 billion by the government��s public prosecutor��s office. That payment reportedly has�been reduced to less than $42 million as the company and the government have agreed on a settlement.
- [By Ben Levisohn]
Shares of Transocean (RIG) are getting hit today but not nearly as hard as other offshore drillers, including Ensco (ESV), Diamond Offshore Drilling (DO), Atwood Oceanics (ATW) and Noble (NE). The reason: Transocean announced the results of a tender offer to buy back debt. RBC’s�Kurt Hallead and�Benjamin Owens explain:
Transocean’s Sedco 714 offshore platform in dry dock Bloomberg News: RIG announced it has received valid tender offers from investors to repurchase ~$943mn of face value debt for $845mn, or a 90% weighted average discount. We view the move as a positive as it enhances the company’s liquidity and flexibility…
Nearer-term debt maturities look manageable:�Transocean has ~$2.8bn in debt maturing between now and YE18: $1bn in 2016, $0.6bn in 2017, and $1.2bn in 2018…
With cash on hand of $2.6bn, $0.2bn in excess proceeds from the note offering, our forecast is for aggregate 2016/17 FCF of $0.6bn, and an undrawn $3.0bn revolver �� we think�Transocean has ample liquidity (>$6.5bn) to manage through these debt maturities…
Still not interested in raising equity at this time:�Transocean has essentially ruled out doing an equity offering at this time, indicating it feels confident with the capital structure.
Transocean said it would explore other financing options such as secured borrowing against its new drillships with 10-year contracts, if necessary, before doing an equity offering.
Jefferies analyst Eduardo Royes and team argue that Atwood Oceanics and Diamond Offshore drilling “intrigue, but for conflicting reasons.” They explain:
Atwood�screens attractive on both a normalized multiple and DCF (heavily driven by normalized) basis, suggesting it could be a good play for recovery. An improving offshore sentiment and catalyst potential (e.g., term contract on the Osprey) could benefit�Atwood as well. However, shares are very expensive in the tro
- [By Ben Levisohn]
Credit Suisse analyst Gregory Lewis and team highlight seven factors that will help sway how investors react to earnings from offshore drillers like Transocean (RIG), Noble (NE),�Diamond Offshore Drilling (DO), Seadrill (SDRL), and Ensco (ESV):
Top 10 Energy Stocks To Invest In 2017: Denbury Resources Inc.(DNR)
Advisors' Opinion:- [By Lisa Levin]
In trading on Thursday, energy shares dipped by 0.88 percent. Meanwhile, top losers in the sector included Williams Companies Inc (NYSE: WMB), down 7 percent, and Denbury Resources Inc. (NYSE: DNR), down 6 percent.
- [By Ben Levisohn]
Stifel’s Michael Scialla and Daniel Guffey warn investors not to chase the biggest gainers among the exploration & production stocks, including Denbury Resources (DNR) and Whiting Petroleum (WLL), and instead stick with more stable fare such as Anadarko Petroleum (APC), Rice Energy (RICE), and Continental Resources (CLR). They explain:
- [By Lisa Levin]
In trading on Tuesday, energy shares rose by just 0.1 percent. Meanwhile, top losers in the sector included Diamond Offshore Drilling Inc (NYSE: DO), down 6 percent, and Denbury Resources Inc. (NYSE: DNR), down 5 percent.
- [By John Stevens]
Denbury Resources (DNR) stock started sinking on Wednesday. They continued to go down on Thursday and Friday as well. Overall, they went down by over 15% since they opened on Wednesday, alongside oil prices as traders booked profits after three sessions of gains.
Denbury Resources Inc. is an independent oil and natural gas company. The Company’s operations are focused on two operating areas: the Gulf Coast and Rocky Mountain regions. Its properties with proved and producing reserves in the Gulf Coast region are situated in Mississippi, Texas, Louisiana and Alabama, and in the Rocky Mountain region are situated in Montana, North Dakota and Wyoming. It has estimated proved oil and natural gas reserves of over 288.6 million barrels of oil equivalent (MMBOE). Its primary Gulf Coast carbon dioxide source is Jackson Dome, which is located near Jackson, Mississippi..
Shares of Denbury Resources slumped by 6.31% to $4.24 during trading on Thursday the 9th as oil prices declined. On Friday, the again went down by another 8.83% to close at $3.31.
Top 10 Energy Stocks To Invest In 2017: Baker Hughes Incorporated(BHI)
Advisors' Opinion:- [By Benzinga News Desk]
General Electric (NYSE: GE) was said to be in talks to acquire Baker Hughes (NYSE: BHI), according to sources as reported by Dow Jones. A deal could be valued at as much as $30 billion. However, Bloomberg later reported that a GE spokesperson said they're in talks with Baker Hughes regarding possible partnerships, but not an acquisition. Halliburton (NYSE: HAL) had attempted to acquire Baker Hughes in 2014, but the DoJ sued to block the deal valued at $35 billion.
- [By Javier Hasse]
Like every Friday for the past 70 years, Baker Hughes Incorporated (NYSE: BHI) issued its rotary rig counts. As of April 15, the United States had 440 active rigs, down from 443 last Friday and from 954 a year ago. Canada also saw a (2.4 percent) decrease in active rigs this week, to 40. A year ago, the count ascended to 80.
- [By Ben Levisohn]
Evercore ISI’s James West and team are starting to feel really good about the potential of the General Electric (GE)-Baker Hughes (BHI) merger. They explain why:
- [By Ben Levisohn]
Shares of Baker Hughes (BHI) had dropped 6.6% during the first three days of the week after the announcement that it would join forces with General Electric‘s (GE) oil & gas business. Today, however, they’ve rebounded, perhaps suggesting that investors are coming around to the long-term prospects of the deal. In a note released yesterday, FBR’s Thomas Curran and Mark Kelley explain what those are:
Bloomberg NewsSince October 28, 2016, as a correction in oil has stoked the latest retreat in OFS stocks,�Baker Hughes has underperformed. Given that both sides of the Street seem to perceive de minimis regulatory risk to deal consummation, we believe Baker Hughes’ sell-off chiefly reflects stock participants’ evaluation of the (1) reshaping of�Baker Hughes’ risk-reward profile and (2) potential of the merged entity. With this deal, we believe�Baker Hughes essentially chose to forego pre-2019 optionality that could have yielded more 2017��2018 upside��such as insisting on a takeover premium from General Electric, pursuing other M&A possibilities, or remaining solely focused on its flourishing transformation ��in exchange for a post-2018 with greater potential. Although we do expect Baker Hughes’ trade-off to eventually be vindicated, the deal has also reinforced our existing 2018-based valuation, in our view, capping the stock at $62 for the next 9��12 months. Baker Hughes’ 8% decline has also reduced the merged entity’s implied enterprise value by 11%. We think investors are also signaling skepticism about guidance for the merged entity, especially for GE Oil & Gas….
We do believe that�General Electric offers more long-term value for shareholders than�Baker Hughes on a standalone basis by providing it with the advantages of infrastructure and capital equipment integration, the PREDIX operating platform, and the GE Store. Meanwhile,�General Electric has supported our lo
- [By Bryan Murphy]
When General Electric Company (NYSE:GE) announced on Monday it was acquiring oilfield services name Baker Hughes Incorporated (NYSE:BHI), the market wasn't worried, though most investors were a bit surprised -- what was an industrial name going to do by getting into the oil and gas business?
It didn't take long for the word to spread that GE is actually in the oil and gas business. It's not a major player, ranking around tenth in terms of annual revenue in the equipment and consulting space. Meanwhile, Baker Hughes is the third biggest in its category, but it's an oil services company. Is there a synergy here?
As a matter of fact, there is. General Electric's business supports Baker Hughes', and Baker Hughes' business supports General Electric's operation. Rather than upstream OR downstream, the pairing of BHI and the GE oil and gas arm is being dubbed a "fullstream" business that brings a soup-to-nuts solution to the table that can create those synergies.
But that's still not what this acquisition (and eventual creation of a whole new company) is about.
It's been mostly overlooked about General Electric, and even after the Baker Hughes deal was announced has been overlooked, but this deal is ultimately going to put GE's Predix software to the test.� GE is looking to "win" not necessarily because it will do fullstream successfully, but because it will create the best-run, best-managed fullstream company in the world.
Predix is a platform... and software... and an idea.
Predix is General Electric's foray into the Internet of Things business, though that description is incomplete relative to what it could potentially do. Predix could be used to manage -- and improve -- every facet of a company that can be quantified, and even some qualitative information.
GE describes the platform as "the operating system for the Industrial Internet, is powering digital industrial businesses that drive the global economy. By - [By William Patalon III]
Since the moment it was announced, we've been highly bullish on the complicated-but-intriguing deal that would combine the oilfield services unit of General Electric Co. (NYSE: GE) and all of sector rival Baker Hughes Inc. (NYSE: BHI).
Top 10 Energy Stocks To Invest In 2017: National Oilwell Varco, Inc.(NOV)
Advisors' Opinion:- [By Tony Daltorio]
But the best investment in this sector, according to Moors, is National Oilwell Varco Inc. (NYSE: NOV).
He calls it the "one company that stands to benefit most directly from what is happening in the equipment sector."
- [By Lauren Pollock]
Among the companies with shares expected to actively trade in Tuesday’s session are Applied Materials Inc.(AMAT), Red Hat Inc.(RHT) and National Oilwell Varco Inc.(NOV)
- [By Shauna O'Brien]
Jefferies reported on Monday that it has lifted its price target on National-Oilwell Varco, Inc. (NOV).
The firm has reaffirmed a “Buy” rating on NOV, and has raised the company’s price target from $84 to $91. This price target suggests a 14% increase from the stock’s current price of $78.24.
Analyst Brad Handler noted that NOV’s weak margin will likely rebound in 2014 and the chances of a dividend increase are high.
Looking forward, the firm has lifted its order estimates for FY2013 from $10.8 billion to $11.3 billion. FY2014 earnings estimates have been raised from $6.40 to $6.50 per share and FY2015 estimates have been increased from $7.65 to $7.95 per share.
National-Oilwell Varco shares were up 76 cents, or 0.97% during pre-market trading Monday. The stock is up 14% YTD.
Top 10 Energy Stocks To Invest In 2017: Crescent Point Energy Corp (16)
Advisors' Opinion:- [By Kana Nishizawa]
China Coal Energy Co., the country��s second-largest producer of the fuel, sank 3.1 percent after the government said it will cut coal consumption. Sun Hung Kai Properties Ltd. (16), the world��s second-biggest developer, fell 1.4 percent after trimming its sales target. Gold producers led materials companies lower as the precious metal headed for its steepest weekly loss since June amid expectations the U.S. Federal Open Market Committee will next week decide to reduce stimulus.
Top 10 Energy Stocks To Invest In 2017: Phillips 66(PSX)
Advisors' Opinion:- [By Ben Levisohn]
Berkshire’s QTD returns primarily reflected outperformance in technology and financials (International Business Machines (IBM), Moody’s (MCO), U.S. Bancorp (USB), and American Express (AXP)), partly offset by underperformance within energy, healthcare, and consumer-nondurables (Phillips 66 (PSX), Coca-Cola (KO), and DaVita HealthCare Partners (DVA)).
- [By Tyler Crowe]
For refiners, though, that spread in price led to very lucrative refining margins. As that spread has narrowed, so too has margins for refiners.
Refining Margins Q4 2012� Q2 2013 Valero (NYSE: VLO ) $12.27 $9.26 Phillips 66 (NYSE: PSX ) � $13.67 $9.88 HollyFrontier (NYSE: HFC ) $24.00 $20.28 CVR Refining (NYSE: CVRR ) $28.08 $20.30Source: Company Earnings releases
- [By WWW.KIPLINGER.COM]
Refiners and downstream energy stocks have really gone to town as oil prices have listed lower in a relatively tight range. Phillips 66 (PSX) is among those winners.
- [By Todd Shriber, ETF Professor]
Phillips 66 (NYSE: PSX) and Valero Energy Corporation (NYSE: VLO) combine for over 15 percent of CRAK's weight and are the ETF's top two holdings. The former is up more than 7 percent this year, while Valero is off 10.7 percent.
- [By Ben Levisohn]
During the past three months, Valero Energy (VLO) has fallen 7.3%, Marathon Petroleum (MPC) has dropped 17% and Tesoro (TSO) has plunged 21%. Phillips 66 (PSX) is off 13% during that period, while HollyFrontier (HFC) is down 7.7%.
- [By kiplinger]
Even if oil prices stay low in 2016, refinerPhillips 66 (PSX) should prosper.
Low crude prices mean higher profit margins at Phillips’s refining operations and gas stations, and the company is investing in such promising areas as natural-gas pipelines, processing facilities and petrochemical plants. Compared with other refiners, the stock’s valuation looks compelling given Phillips’s diverse business mix and growth potential, says Oppenheimer & Co. analyst Fadel Gheit. Another fan: Warren Buffett, whose Berkshire Hathaway owns more than 10% of Phillips’s shares.
Top 10 Energy Stocks To Invest In 2017: PDC Energy, Inc.(PDCE)
Advisors' Opinion:- [By Ben Levisohn]
Goldman Sachs analyst Brian Singer and team contend that EOG Resources (EOG), Diamondback Energy (FANG), PDC Energy (PDCE), Pioneer Natural Resources (PXD), and RSP Permian (RSPP) can benefit from greater productivity. They explain:
- [By Ben Levisohn]
Names which screen well on a combination of attractive valuation and equitized capital structure, include Outperform rated Apache, Anadarko Petroleum,�Gulfport Energy as well as Market Perform rated QEP Resources (QEP) and PDC Energy (PDCE).
