Energy stocks Eagle Rock (EROC), Warren Resources (WRES) and Ivanhoe Energy (IVAN) were all posting significant gains in early trading today as Energy shares rode the strong tide of a 5-Day rally in the sector. While broad markets continue their upswing, the gains have been modest to say the least; pancake flat to be more prolific. But the Energy Sector has been strong since last Friday even though oil hasn't moved too far to the left or right of the $72 mark.����
And even though FedX boosted its Q1 earnings guidance today (indicating small business is moving again) the bulls seem too tired after 5 straight days of modest gains to make a run up any size hill and the bears are in hibernation, waiting for something, anything to get them stirred up. So with an essentially flat broad market at the open, let's once again look to a few SmallCap gainers in the strong, 5-Day Energy Sector rally.
No news is good news...
Whether it's the opportunity of a short trading week, short-sellers covering or institutional support shoring up aggregations and value, the following three companies have posted significant gains today with no official news released and no analyst upgrades.
Gaining 8.19% ($0.29) today is Eagle Rock Energy Partners, L.P., (EROC) http://www.eaglerockenergy.com/ currently trading on the Nasdaq in the $3.81 range. EROC has a new market cap of $287 million. EROC has a 3-Month average daily trading volume of 343,455 shares and topped 673,390 shares traded by mid-session.
EROC is one of those remarkable stocks: $3.81 a share with trailing twelve month revenues of $1.21 billion. Remarkable.
The EROC August 4 Q2 09 filing was filled with good news and bad news. The EROC adjusted EBITDA totaled $44 million, a 9% increase over the previous quarter and its cash flow increased 10% to $28! million over the previous quarter. The bad news was the net loss of $74 million over the previous quarter. Still, it was sizably less than the Q2 08 net loss of $227 million.
EROC is in the Natural Gas business primarily in the Texas Panhandle, the east Texas/Louisiana area, and in South Texas, West Texas, and the Gulf of Mexico. EROC has pipelines (the literal type) that include: The West Panhandle System with approximately 2,643 miles of natural gas gathering pipelines and 3 natural gas processing plants; 1 propane fractionation facility; and 1 condensate collection facility. EROC also owns the East Texas/Louisiana pipeline which is approximately 1,145 miles of natural gas gathering pipelines and 2 cryogenic processing plants; 5 JT processing plants; and a 19-mile NGL pipeline and the South Texas operations that consist of approximately 279 miles of natural gas pipeline; a compressor stations; and 3 processing stations and the Gulf of Mexico operations that include approximately 40 miles of natural gas gathering pipelines and 2 cryogenic processing plants.
At $3.81 a share, EROC is far below its 52-week high of $14 set on 09-22-08 and is above its 52-week low of $2.65 set on 07-13-09. At $3.81, EROC is ahead of its 50-day moving average and behind its 200-day moving average. SROC has a trailing twelve month diluted EPPS of $3.57. It is widely held by insiders and institutions. The EROC shares out versus float ratio is near-parity.
Another energy company flying high as the Energy Sector soars is Warren Resources Inc., (WRES) http://www.warrenresources.com/ gaining 12.79% ($0.33) today in early trading. WRES is currently trading on the Nasdaq in the $2.82 range with a market cap of $163 million. WRES has a 3-Month average daily trading volume of 361,732 shares and it surpassed 1,023,173 by mid-session.
WRES also posted mixed results in its Aug 5 Q2 09 filing. In the red ink was a net loss of $9.2 million, or $(0.16) per dil! uted sha re. WRES Q2 results included a non-cash unrealized mark-to-market loss of $9.8 million from oil and gas hedges entered into in early 2009. Q2 08 net earnings were $17.7 million, or $0.30 per diluted common share. The WRES Q2 09 oil and gas revenues decreased 56% to $15.2 million compared to Q2 08 gain of $34.2 million.
But in the black ink for WRES in Q2 09 was the fact its oil and gas production increased to 2.4 billion cubic feet of gas which represented an 8% increase over Q2 08. Also for Q2, WRES only suffered a slight downturn in oil production and a gain in natural gas production: WRES produced 237,000 net barrels of oil and 930 net million cubic feet of natural gas in Q2 09 compared with 252,000 net barrels of oil and 657 net million cubic feet of natural gas in Q2 08.
WRES is an independent energy company. It primarily develops coalbed methane and natural gas properties located in the Rocky Mountain region; and waterflood and tertiary oil recovery programs in the Wilmington field within the Los Angeles Basin of California. As of December 31, 2008, Warren Resources owned natural gas and oil leasehold interests in approximately 175,725 gross acres; estimated net proved reserves of 129 billion cubic feet equivalent of natural gas; and interests in 435 producing wells.
At $2.82, WRES is well below its 52-week high of $10.96 set on 09-25-08 and is far above its 52-week low of $0.40 set on 03-03-09. At $2.82, WRES is ahead of both its 50-day and 200-day moving averages. WRES has trailing twelve month revenues of $77 million. WRES is widely held by institutions (50%). Its shares out versus float ratio is near-parity.
And not to be outdone in its percentage gain today...
Ivanhoe Energy Inc., (IVAN) http://www.ivanhoe-energy.com picked up as much as 14.35% ($0.26) in early trading today. IVAN is currently trading in t! he $2.02 range on the Nasdaq with a new market cap of $567 million. IVAN has a 3-Month average daily trading volume of 537,660 shares and by mid-session, had topped 5 times that amount, posting 3,002,873 shares traded by mid-session.
IVAN also posted mixed numbers in its recent quarterly filing. Its Aug 10 Q2 09 report had an oil revenue increase of 5% compared to the previous quarter (reflecting higher benchmark crude oil prices) but for Q2, lost $0.04 diluted EPS.
The gross production rate at IVAN's Dagang Project in China at the end of June 2009 was 1,681 gross barrels of oil per day from 39 wells, compared to 1,840 gross barrels of oil per day from 37 wells at the end of March 2009. A couple more wells and a little less oil quarter-to-quarter is nothing in terms of overall production.
IVAN is truly a global concern. Not are they only producing oil on-site in oil-starved China, during Q2 they received authority to initiate operations on the Pungarayacu field in Ecuador. In Q2, IVAN also upgraded its Tamarack facility in Canada which produces 20,000 barrels a day.��
IVAN is an independent oil producer. IVAN also trades on the TSX (Toronto Stock Exchange) with the symbol IE. At $2.02, IVAN will set a new 52-week high today beating its previous high of $1.85. Its 52-week low is $0.30. Its shares out versus float ratio is near-parity.
Sign-up for Free to Receive Future Commentary and Trading Alerts on EROC, WRES and IVAN
No comments:
Post a Comment