Energy Firm's New Distribution Relationships 'Aid Revenue Build'

Source: Streetwise Reports 08/16/2018 A Mackie Research Capital Corp. report points out signs that this company keeps progressing toward steady revenue. In an Aug. 12 research note, analyst Nikhil Thadani with Mackie Research Capital Corp. reported that since June 2018, Eguana Technologies Inc. (EGT:TSX.V; EGTYF:OTCQB) formed at least seven new distribution relationships around the globe, which are helping build the corporation’s revenue. The energy firm designs and manufactures intelligent power electronics for distributed smart grid and micro-grid applications. Mackie forecasts that Eguana is on track to achieve steady and growing revenue beginning in Q1/19. “We believe Eguana’s early order intake driven by recently announced new distribution announcements and existing relationships could approach about CA$3–5 million (CA$3–5M),” Thadani added. In the research report, the analyst listed Eguana’s most recent distribution partnerships. The dates, companies and distribution regions are as follows: Aug. 7, 2018, Nu-NRG, Eastern Canada Aug. 1, 2018, E-GEAR, Hawaii July 26, 2018, Maximo Solar, Puerto Rico July 25, 2018, Affordable Solar, Turks and Caicos Islands July 23, 2018, Creative Solar USA, Southeast U.S. July 12, 2018, Icarus Enerji, Turkey, Middle East, Africa, Central Asia June 8, 2018 Calix, Benelux “We have previously indicated that expanded distribution relationships could increase Eguana’s 2019 addressable market by about 70% (expanded global footprint versus Australia focus),” Thadani highlighted. “The wide geographic range of recent distribution expansion supports this view.” Thadani pointed out other reasons to expect Eguana will continue growing revenue this year. One is feedback Mackie obtained via phone calls to some … Continue reading

Why the Uranium Price Must Go Up

Source: Rick Mills for Streetwise Reports 08/13/2018 Rick Mills of Ahead of the Herd discusses the current state of the uranium market and the factors that he believes are pointing to higher uranium prices. The Trump Administration is at it again. On July 18, the financial press got hold of a story that said the next target of the Trump tariffs is likely to be the uranium/nuclear energy sector. In what looks like a repeat of what happened with steel and aluminum, the White House said it would investigate whether uranium imports threaten national security, given how dependent the United States is on the nuclear fuel. If the sector is threatened—and why wouldn’t it be, where 90% of the uranium needed for American nuclear reactors comes from abroad—import tariffs would likely be imposed. If that happens, it would hurt nuclear power plants, who are already struggling with low electricity prices and flat demand, Bloomberg noted in reporting the story. But this isn’t really about national security, or in legal terms, section 232 of the 1962 Trade Expansion Act, which allows the U.S. government to impose tariffs without a vote by Congress if imports are deemed a national security threat. Section 232 was used to slap 25% tariffs on steel imports and 10% on imports of aluminum in March. It’s about two U.S. uranium producers who are fed up competing with state-owned companies in Russia and Kazakhstan (i.e., Rosatom and Kazatomprom). Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.American) and Ur-Energy Inc. (URG:NYSE.MKT; URE:TSX) … Continue reading

Oil & Gas Firm's Q2/18 Shows Production Upside, 'Portfolio Cleanup,' Strong Cash Flow

Source: Streetwise Reports 08/10/2018 A Raymond James report reviewed the company’s most recent financial and production numbers. In an August 2 research note, analyst Pavel Molchanov with Raymond James reported that against a backdrop of increased production and high cash flow in Q2/18, Marathon Oil Corp.’s (MRO:NYSE) earnings per share (EPS) was a miss and the company still has not reinstated a share buyback. As for overall production, in Q2/18, the first quarter following the sale of its Libya asset, it was 419 thousand barrels of oil equivalent per day (419 Mboe/d), higher than Raymond James’ expected 411 Mboe/d and at the upper end of the Marathon’s 2018 guidance range of 395–415 Mboe/d, relayed Molchanov. In terms of U.S. production, it grew 5% in Q2/18 to 298 Mboe/d. The Bakken, up 11% to 82 Mboe/d, saw the greatest jump. SCOOP/STACK production increased 7% to 80 Mboe/d. The Permian was up 7% and the Eagle Ford, 2%. International volumes increased 6% during the quarter. For Q3/18, production is expected to be between 395 and 415 Mboe, a 3% quarter-over-quarter drop. Molchanov indicated that for the second time, Marathon Oil increased its full year 2018 production, this time to 400–415 MBoe/d. This is despite the sale in July of three assets cumulatively producing about 5 Mboe/d: nonoperated Gunflint and Troika in the Gulf of Mexico and a CO2 Waterflood in West Texas. The company also is divesting of its nonoperated Sarsang and Atrush blocks, its only Kurdistan assets. Marathon Oil’s Q2/18 adjusted … Continue reading

Uranium Producer Posts 'Banner Quarter'

Source: Streetwise Reports 08/10/2018 This company delivered strong Q2/18 results, prompting a target price increase by one investment firm. In an Aug. 7 research report, Eight Capital analyst David Talbot announced an increase in the target price for Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.American), from CA$3.85per share to CA$5.40per share. Energy Fuels’ shares are currently trading around CA$4.21. The increase was predicated on “higher long-term V205 prices of $12/lb (up from $6/lb), assuming 4MM lbs of V205 production over the next three years at 50% margins, and increased U3O8 throughput from processing of alternate feed, pond returns, and toll milling fees,” the analyst wrote. Noting that Energy Fuels “continues to outperform its peers,” Talbot detailed elements of what he considered a “banner quarter,” including delivery of 500,000 pounds of U3O8 at an average price of $53.55 per pound, which beat Eight Capital’s forecast. “Cushioned by high priced contracts, EFR was also able to scale back production and reduce operating costs,” Talbot added. The analyst also commented on the fact that Energy Fuels’ stock has rallied, noting his firm’s belief the rally was spurred by “an upturn in the uranium market, lower operating costs, significant production optimization ability, additions made to its balance sheet, and plans to produce vanadium over the next three years.” Energy Fuels operates White Mesa, which Talbot states is “the only vanadium-capable mill in the USA while prices continue to rally in the face of a vanadium flow-battery revolution.” “We continue to recommend Energy Fuels as a Buy,” … Continue reading

Solar Installer and Energy Company Partner for Home Energy Storage in Canada

Source: Streetwise Reports 08/08/2018 The partnership will bring this residential energy storage system to Eastern Canada. Eguana Technologies Inc. (EGT:TSX.V; EGTYF:OTCQB) and Nu-NRG Group recently announced they have entered into an agreement to make the Evolve – Home Energy Storage System available in Eastern Canada. Nu-NRG Group will offer the Evolve system to its network of partners with a focus on new and existing residential solar installations as well as new home construction opportunities. Solar self-consumption and backup power are the primary applications for the Evolve system. “We are excited to be offering a Canadian developed product to our growing network across Canada. The Evolve product complements our existing product offering and initial feedback from channel partners has been positive. We are already seeing demand arise from home builders and utilities throughout Eastern Canada and look forward to completing several high-profile installations this Fall,” said Patrick Carew, COO at Nu-NRG Group. Nu-NRG will become an Eguana-certified installer and complete its initial Evolve installations in September. First projects have already been identified and product orders have been placed. Evolve is a fully integrated residential energy storage system including a proprietary power electronics system, LG Chem low-voltage battery modules, and a comprehensive user interface. The system is rated at 5KW AC output with a modular battery design based on a 6.5 kWh battery, which can be scaled from 13 to 39kWh in storage capacity. [NLINSERT] Disclosure: 1) Jake Richardson compiled this article for Streetwise Reports LLC and provides services to Streetwise reports … Continue reading

Oil Market Update

Source: Clive Maund for Streetwise Reports 08/06/2018 With oil nearing $70 per barrel, technical analyst Clive Maund looks at what may come next. By the end of next year, the United States is set to become the world’s biggest oil producer. Once you grasp this, you understand that it has an incentive to promote higher oil prices, both to further its own oil industry and to generate big fat profits for the oil majors and bulging bonuses for oil company executives. The potential downside of driving the oil price higher, from the standpoint of those in control, is that designated enemies such as Iran and Russia might also benefit from these higher prices. So the way to prevent that from happening is to subject them to sanctions and oil export restrictions. The ordinary U.S. motorist facing stiff price hikes at the pumps can go fly a kite. The predictions made in the last Oil Market update I wrote nearly three months ago, on 12th May (too long ago) turned out to be correct. We were looking for a near-term reaction and then an advance to new highs, and that is what happened, although it then proceeded to react back again during the first half of July and we will now proceed to consider the outlook. On the latest 1-year chart for Light Crude we can see that the reaction back during the 1st half of July was nothing out of the ordinary, and it has brought the oil price back … Continue reading

Oil & Gas Firm Increases Stake in Orogrande Basin Project

Source: Streetwise Reports 08/04/2018 A ROTH Capital Partners report detailed the transaction. In a July 27 research note, analyst John White with ROTH Capital Partners reported that on July 25 Torchlight Energy Resources Inc. (TRCH:NASDAQ) entered an agreement that will boost its interest in the Orogrande project to 72.5% from 67.75%. The parties involved in the agreement were Torchlight and its wholly owned subsidiary Hudspeth Oil Corp., Founders Oil & Gas, and two companies solely owned by Torchlight’s chairman, Gregory McCabe—Wolfbone Investments and McCabe Petroleum. Under the terms, Torchlight and Wolfbone will each pay $625,000, and for Torchlight and Wolfbone or McCabe Petroleum to each pay another $625,000 on July 20, 2019. In exchange, Founders Oil & Gas will sign over equally to Torchlight and Wolfbone all of its interest in the Orogrande project’s oil and gas leases. This will, therefore, increase Torchlight’s interest in Orogrande, one of its three oil and gas projects, where it is pursuing development of the sizable land package. ROTH has a Buy rating and a $1.75 per share price target on Torchlight, whose share price is currently $1.17. [NLINSERT] Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None. 2) The following companies mentioned in this article are billboard … Continue reading

Oil & Gas Firm Increases Stake in Orogrande Basin Project

Source: Streetwise Reports 08/04/2018 A ROTH Capital Partners report detailed the transaction. In a July 27 research note, analyst John White with ROTH Capital Partners reported that on July 25 Torchlight Energy Resources Inc. (TRCH:NASDAQ) entered an agreement that will boost its interest in the Orogrande project to 72.5% from 67.75%. The parties involved in the agreement were Torchlight and its wholly owned subsidiary Hudspeth Oil Corp., Founders Oil & Gas, and two companies solely owned by Torchlight’s chairman, Gregory McCabe—Wolfbone Investments and McCabe Petroleum. Under the terms, Torchlight and Wolfbone will each pay $625,000, and for Torchlight and Wolfbone or McCabe Petroleum to each pay another $625,000 on July 20, 2019. In exchange, Founders Oil & Gas will sign over equally to Torchlight and Wolfbone all of its interest in the Orogrande project’s oil and gas leases. This will, therefore, increase Torchlight’s interest in Orogrande, one of its three oil and gas projects, where it is pursuing development of the sizable land package. ROTH has a Buy rating and a $1.75 per share price target on Torchlight, whose share price is currently $1.17. [NLINSERT] Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None. 2) The following companies mentioned in this article are billboard … Continue reading

Oil & Gas MLP 'Represents a Solid Opportunity for Investors'

Source: Streetwise Reports 08/04/2018 A Raymond James report shared the highlight of the “strong” quarter for this entity. A July 27 research report from Raymond James indicated that Phillips 66 Partners LP (PSXP:NYSE) exceeded its $1.1 billion run rate EBITDA target a few quarters earlier than expected. “Despite considerable commodity and master limited partnership (MLP) market volatility over the past several years, the MLP has been able to execute on its robust growth strategy,” wrote analyst Justin Jenkins. Phillips 66 Partners’ Q2/18 adjusted EBITDA was $276 million ($276M), well above Raymond James’ forecast of $254M and consensus of $252M. Discounted cash flow similarly came in higher than expected, at $204M. This compares to Raymond James’ estimate of $186M and consensus of $185M. Jenkins noted, “Based on the discounted cash flow upside relative to our model, distribution coverage of 1.38x easily topped our estimate (1.26x), showing strong excess cash flow generation, even while growing the distribution by 5.3% sequentially in Q2/18.” The MLP’s growth outlook “looks attractive,” Jenkins said. At the forefront of anticipated growth is the Gray Oak Pipeline, which is slated to be Phillips 66 Partners’ “largest ever organic project.” It will give the MLP a strong footprint in the Permian Basin and, simultaneously, broaden its access to advantaged crude oil. Management expects initial capacity of Gray Oak, which completed another open season, to be 800,000 barrels per day (800 Mbpd); already, 700 Mbpd in commitments are lined up. Capacity could be expanded to about 1 million barrels per … Continue reading

Oil & Gas Stock 'in Position to Start a Major Bull Market Advance'

Source: Clive Maund for Streetwise Reports 08/03/2018 Technical analyst Clive Maund discusses why he believes the stock of a small oil and gas company actively exploring in West Texas is at a “near perfect entry point.” It’s been a long wait for many investors in Torchlight Energy Resources Inc. (TRCH:NASDAQ), but it looks like the wait will soon prove to have been worth it, as the prospects for the company and the stock now look better than ever. While we are going to concentrate on the technical picture for the stock, as usual, you can read about the improving fundamental situation for the company in “Energy Firm’s Early Test Well Results ‘Very Positive’” and also in “Torchlight Illuminate a New Texas Oil Basin” and in “Why Four Wall Street Experts Are Recommending This Oil Stock.” Not surprisingly, this plethora of upbeat articles on the company right after the positive drill results helped drive a spike in the stock, so we figured that it would react back to a better price once the excitement died down a bit, and that is just what it has done, and it is considered to be at a near perfect entry point here. On the latest 6-month chart we can see how the positive drill results and ensuing publicity drove the stock sharply higher on big volume, which was bullish. The sudden spike in the price inevitably brought out selling by some jaded long-time holders of the stock causing it to react back just as … Continue reading