Texas Oil & Gas Company's Production Up, Costs Down in Q2/19

Source: Streetwise Reports 08/06/2019 A review of the firm’s quarterly operational and financial results is given in a Raymond James report. In an Aug. 2 research note, Raymond James analyst John Freeman reported that Noble Energy Inc. (NBL:NYSE) delivered a “strong Q2/19.” He provided the company’s Q2/19’s numbers and pointed out the highlights. As for production, Noble produced 348,500 barrels of oil equivalent per day in Q2/19, up 4% quarter over quarter (QOQ), noted Freeman. This quantity exceeded consensus’ expectation by 2% and was in line with Raymond James’ forecast. As for costs during Q2/19, capex was “a whopping 10% below our estimates due to reduced U.S. onshore well costs,” Freeman highlighted. Capital expenditures amounted to $618 million versus Raymond James $705 million and the Street’s $739 million projections. Q2/19 capex was down 10% from Q1/19. Regarding well costs, they dropped 15% in the lower 48 states since Q4/18. Noble is beating its well cost estimates in both the Delaware and DJ basins, due to “a sharp increase in completion stages per day (up 50% compared to back half of 2018) and faster drilling times (down to five drilling days per well in the DJ),” Freeman explained. In light of this cost landscape, he added, Noble decreased its 2019 capital spending guidance, specifically its projected lease operating expenses by 2% and its anticipated depreciation, depletion and amortization costs by 3%, both on a per barrel of oil equivalent basis. As for finances, the energy company reported an adjusted EBITDA of … Continue reading

WPX Energy Raises Full-Year Oil Guidance by 4% and Initiates $400M Stock Repurchase Plan

Source: Streetwise Reports 08/06/2019 Shares of WPX Energy are trading higher after it released second quarter earnings and raised full-year oil guidance by 4%. The firm also announced it is initiating a 24-month, $400 million share repurchase program. After the close of trading yesterday, WPX Energy Inc. (WPX:NYSE) reported unaudited second quarter earnings for the period ending June 30, 2019. The company registered total product revenues of $558 million in Q2/19, a 7% increase over Q2/18, with the quarterly oil sales component growing by 9% in the same period. Total product revenues were $1,065 million in H2/19, up 15% over the $927 million recorded in H2/18. Total production in Q2/19 averaged 159.6 MBoe/day, which was 28% higher than a year ago, with oil and natural gas liquids volumes comprising 79% of total volumes. Oil sales of $511 million from 97.9 Mbbl/d accounted for 92% of Q2/19 product revenues. Cash flow from operations in H2/19, inclusive of hedge impact, increased 48% over H2/18 to $634 million. The H2/19 results included $362 million realized in Q2/19. The report indicated income available to common stockholders of $305 million, or income of $0.72 per share on a diluted basis in Q2/19. The firm advised that the results include a $247 million recorded gain related to WPX’s equity interest in the sale of the Oryx II pipeline project, and excluding the Oryx gain and other items, such as derivatives, WPX posted adjusted net income of $0.09 per share. Additionally, WPX announced that its board of … Continue reading

Miner Sees Potential in Historical Canadian Site

Source: Maurice Jackson for Streetwise Reports 08/05/2019 In an interview with Maurice Jackson of Proven and Probable, executives from this prospect generator exploring in Ontario outline their work on a new project. Maurice Jackson: Welcome to Proven and Probable, where we provide mining insights in bullion sales. Joining us for a conversation is Dr. John-Mark Staude and special guest Freeman Smith of Riverside Resources Inc. (RRI:TSX.V; RVSDF:OTCQB), where knowledge is golden. Gentlemen, welcome to the show. Dr. Staude, before we delve into today’s interview, please introduce us to Riverside Resources and the opportunity you present to the market. John-Mark S.: Riverside’s a prospect generator. With this news, we’re showing how we’re doing work in Canada. We generate projects and have joint-venture partnerships—for example, the work we’re doing with BHP Billiton Ltd. (BHP:NYSE; BHPLF:OTCPK)—which expose our shareholders to multiple commodities, particularly gold, and the upside without having all the dilution because we use the joint-venture prospect-generator model. Maurice J.: Earlier this year you shared the vision for Riverside Resources for 2019, and it was the five Cs. Please reintroduce the five Cs as they are germane to today’s discussion. John-Mark S.: One of the key Cs was Canada. Another one was copper, which we deliver with BHP. [Another] was the work on Cecilia, where we’ve had results. But for us the key thing right now with Canada is the news about the new discoveries and the growth we’re doing there. That C is really the big C we’re so excited about … Continue reading

Recent Bonanza-Grade Gold Intercepts Mean These Companies Could Explode Higher Very Soon

Source: Brian Nibley for Streetwise Reports 08/05/2019 Hitting bonanza grades during a gold bull means good things for investors. GoldStockBull subscribers know that gold mining stocks have done quite well in recent months. But companies that have recently found bonanza-grade gold have upside potential above and beyond that of their peers. 2019 is proving to be a great year for gold. As COMEX Gold consolidates above $1,400 and now even $1,450, it’s clear that the six-year bear market has come to an end. In fact, when measured against some fiat currencies, including the Australian dollar (AUD), gold has even reached all-time record highs! What about gold mining stocks that offer significant leverage at times like these? In this article, we look at two gold mining companies that have recently discovered “bonanza-grade gold intercepts.” What does that mean? Bonanza Grade Gold Definition As an investor, it’s crucial to keep an eye out for the latest news about the companies you hold shares in. Most trading platforms make this easy by showing links to the latest press releases put out by companies in your portfolio. But there’s a problem. The press releases of mining companies often contain industrial jargon that investors may not understand. One example is the term “bonanza-grade gold.” Grade refers to the extent of mineralization of a deposit of metal ore. The higher the grade, the more gold there is inside a smaller space of rock. Miners want large deposits of higher-grade ore because it makes their operations more … Continue reading

'Top Performer in the Precious Metals Space' Continues Run

Source: Streetwise Reports 08/04/2019 Key Q2/19 financial metrics and upcoming catalysts are covered in a ROTH Capital Partners report. In a July 31 research note, ROTH Capital Partners analyst Jake Sekelsky reported that Kirkland Lake Gold Inc. (KL:TSX; KL:NYSE) “delivered another strong quarter” in Q2/19. “Kirkland Lake has been a top performer in the precious metals space over the last year.” Sekelsky presented the financial highlights from the quarter. Kirkland Lake’s Q2/19 revenue was $281.3 million, above ROTH’s forecast of $273.5 million. He attributed this to low costs at Fosterville and Macassa. Yet, the miner’s earnings per share in Q2/19 was a miss, reportedly $0.50 versus ROTH’s estimate of $0.56. The cause was higher-than-expected costs at the Holt complex in H1/19 of $906 per ounce, a lot higher than what ROTH anticipated, which was $675, and higher than guidance of $660–680 per ounce. However, ROTH expects costs at Holt “should moderate in H2/19 as the production profile improves, resulting in potentially lower unit costs,” noted Sekelsky. The primary catalyst for Kirkland Lake in H2/19, Sekelsky purported, will be its aggressive exploration programs at Macassa and the company’s Australian assets. A less obvious, potentially positive catalyst over the medium term is activities taking place at Kirkland Lake’s Northern Territory assets. For one, the company spent $49.6 million on advanced exploration work and underground development in the Northern Territory in H1/19. Two, it processed 32,000 tons through a bulk sampling program. Given those two factors, “we believe a positive restart decision in … Continue reading

MLP Achieves 'Another Beat and Raise' in Q2/19

Source: Streetwise Reports 08/04/2019 Performance during the quarter and guidance for the rest of 2019 are reviewed in a Raymond James report. In an Aug. 1 research note, Raymond James analyst Justin Jenkins reported that Magellan Midstream Partners L.P.’s (MMP:NYSE) Q2/19 results are positive, as is the nearing completion of several growth projects. Jenkins highlighted that the master limited partnership (MLP) beat adjusted EBITDA and distributable cash flow (DCF) estimates in Q2/19. Adjusted EBITDA was $378.3 million versus Raymond James’ $355.5 million estimate and consensus’ $356 million forecast. Strong performance in Magellan’s Crude and Refined Products segments and lower maintenance and interest expense drove this. DCF came in at $314.8 million, well above Raymond James and consensus’ estimates of $284.3 million and $285.1 million, respectively. As for performance by segment, Jenkins indicated that Refined Products and Crude did the best, each beating Raymond James’ projection. Refined Products returned a $238 million operating margin; Raymond James expected $205.5 million. Crude’s operating margin was $160.3 million, and Raymond James forecasted $148 million. The Marine segment fared worse. Its Q2/19 operating margin was $30 million, below Raymond James’ $33.4 million forecast. Refined Products and Crude, however, more than offset Marine’s underperformance. Jenkins noted that based on strong Q2/19 performance and a positive outlook for Q3/19 spot shipments on BridgeTex/Longhorn, Midstream’s management increased full-year 2019 EBITDA/DCF guidance by 3%, or $40 million, which still remains conservative, Jenkins indicated. He added, “Further, if the market opportunity remains open (which we think is likely for at … Continue reading

Southern Silver Exploration: Making Excellent Progress at Cerro Las Minitas

Source: Thibaut Lepouttre for Streetwise Reports 08/03/2019 Thibaut Lepouttre of the Caesar’s Report has combed through the data, done the math and provides this assessment on the mining firm. Introduction Southern Silver Exploration Corp. (SSV:TSX.V; SSVFF:OTCQB; SEG1:FSE) has kept its promises and provided an updated resource estimate on its 40%-owned flagship Cerro Las Minitas (CLM; polymetallic) project in the second quarter of the year. We have combed through the technical report of the resource update and combined this with the previously reported results of the metallurgical test work on the different types of mineralization at CLM to build some sort of (very) preliminary economic model to check how the recent resource updates and more fine-tuned metallurgical test work has impacted the net present value (NPV) of the project. All our calculations are based on what we think are reasonable assumptions, but keep in mind they are for educational purposes only and should definitely not be interpreted as Southern Silver’s official guidance or expectations. The official preliminary economic assessment (PEA), expected to be published in late 2020, is the document that will really matter. The pre-summer resource update was excellent Southern Silver was able to update its resource estimate at the Cerro Las Minitas project right before the summer after completing an additional 10,157 meters of drilling. These additional meters added a lot of value as the indicated resource increased to almost 134 million ounces (134 Moz) silver equivalent (Ag eq) (consisting of 37.5 Moz silver, 35,000 ounces gold, 303 million … Continue reading

Renewable Energy MLP Achieves 'Clean Results from Strong Hydrology' in Q2/19

Source: Streetwise Reports 08/02/2019 The highlights of the quarterly update are presented in an iA Securities report. In a July 31 research note, iA Securities analyst Jeremy Rosenfield reported that Brookfield Renewable Energy Partners L.P.’s (BEP.UN:TSX; BEP:NYSE) Q2/19 results were “roughly in line with estimates.” Rosenfield reviewed the quarter’s numbers and the near-term outlook for the master limited partnership (MLP). Strong output, including from hydroelectric assets in North America, which was about 7% higher than the long-term average, drove the quarterly results. Consolidated EBITDA was $630 million, higher than iA Securities’ forecast of $602 million and consensus’ estimate of $598 million. Proportionate adjusted EBITDA was $400 million, between iA’s $365 projection and consensus’ $407 million forecast. Q2/19 funds from operations came in at $0.74 per share, above both iA and consensus’ estimates of $0.72 and $0.68 per share, respectively. Another highlight of the quarterly update, Rosenfield pointed out, is that the development pipeline of MLP “continues to support organic growth,” specifically an average annual 3–5% growth in funds from operations per share (FFO/share) and excluding mergers and acquisitions (M&A) activity. In the hopper are about 130 megawatts (MW) of under construction projects, another greater than 600 MW of construction-ready work and an additional roughly 220 MW of potential repowering jobs. Supporting longer-term potential upside are the two recent investments, noted Rosenfield—Terraform Power’s acquisition of a generation portfolio for about $720 million along with Brookfield and co-investors’ acquisition of a 50% stake in X-Elio for about $500 million. These transactions could … Continue reading

Gold Miner Achieves 'Strong' Q2/19 Results, Increases Oxide Guidance

Source: Streetwise Reports 08/01/2019 Production, costs, guidance and financials of this miner are reviewed in this CIBC report. In a July 30 research note, CIBC analyst Cosmos Chiu reported that Alacer Gold Corp.’s (ASR:TSX; ALACF:OTMKTS; AQG:ASX) “Q2/19 results included solid production and better-than-expected sales that drove an earnings per share beat.” Chiu reviewed Alacer’s production and related cost during Q2/19. The company produced 99,500 ounces (99.5 Koz), above CIBC’s forecasted 98.1 Koz. The all-in sustaining cost (AISC) was also better than expected, coming in at $669 per ounce versus CIBC’s $743 per ounce estimate. Production for all of H1/19 totaled 95 Koz, on the lower end of full-year guidance of 90–110 Koz. Consequently, Alacer increased oxide production guidance for the year to 125–145 Koz at an AISC of $650–700 per ounce, down from previous cost guidance of $700–750 an ounce. The Çöpler sulfide oxide plant, currently being ramped up, outperformed in Q2/19, delivering 57 Koz, a 53% quarter-over-quarter increase. Year-to-date production at Çöpler was 94 Koz, against full-year 2019 guidance of 230–270 Koz. The plant remains on track to meet the lower end of that range. “We currently model 229 Koz production from the sulfides in 2019, at an AISC of $622 per ounce,” Chiu commented. As for Alacer’s Q2/19 financials, Chiu noted, adjusted EPS of $0.08 exceeded CIBC’s $0.04 forecast and consensus’ $0.03 projection, primarily due to higher-than-expected sales from the Çöpler sulfide plant. Cash flow per share also was a beat at $0.13 versus CIBC and consensus’ $0.11 … Continue reading

Enphase Gets a Charge from Q2 Earnings and Bright Outlook

Source: Streetwise Reports 07/31/2019 Enphase Energy’s shares are surging by more than 30% today after releasing strong growth and earnings for Q2/19. Global solar energy technology firm and major supplier of solar microinverters Enphase Energy Inc. (ENPH:NASDAQ) announced financial results for the second quarter of 2019 yesterday after markets closed. The company reported revenue of $134.1 million for Q2/19, an increase of 34% sequentially and 77% year-over year. The firm indicated that its Enphase IQ 7 products shipments equaled 98% of all microinverters sold. Enphase added that it shipped approximately 416 megawatts DC, or 1,283,680 microinverters, and advised that it continues to see strong demand across the board from customers. The company further reported Q2/19 GAAP operating income of $17.4 million (non-GAAP $23.2 million) and GAAP net income of $10.6 million (non-GAAP $23.2 million) resulting in GAAP diluted EPS of $0.08 (non-GAAP $0.18). President and CEO Badri Kothandaraman commented, “While demand continued to outstrip available supply, we were able to increase capacity to better support our customers and we are on track to have a supply of approximately 2,000,000 microinverters in Q2/19.” The company reiterated some of the business highlights in the quarter, noting that in June it announced that more than 500 solar installation companies in the U.S. have benefitted from significantly reduced solar design complexity and logistics by adopting Enphase Energized AC Modules. Also in June, Enphase announced that it renewed its low-income solar partnership with GRID Alternatives, a national leader in making renewable energy technology and job … Continue reading