Posts for Ticker ‘PXD’

A Flood Of Energy M&A: Schlumberger Buys Smith For $11 Billon

The acquisition by Schlumberger Ltd. (SLB) of competitor Smith International Inc. (SII) for $11 billion could be another sign that mergers and acquisitions in the energy sector will pick up in 2010. This is the second big deal in the oilfield services sector, following last August’s announcement by Baker Hughes Inc. (BHI) that it would buy smaller rival BJ Services (BJS) for $5.5 billion.
 
Under the terms of the agreement, Smith shareholders will receive 0.6966 shares of Schlumberger in exchange for each Smith share. Based upon the closing stock prices for both companies on February 18, 2010, the agreement places a value of $45.84 per Smith share, representing a 37.5% premium. Upon closing, and reflecting the issuance of new Schlumberger shares, Smith stockholders collectively will own about 12.8% of Schlumberger’s outstanding shares of common stock.
 
Schlumberger expects to realize incremental pretax synergies—after integration costs—of aabout $160 million in 2011 and about $320 million in 2012. Schlumberger expects the combination to be accretive to earnings per share in 2012.
Posted on: February 21, 2010 – 1:43 pm in Mergers and Buy Outs, Oil & Gas, , , , , , , , , , , , , , , , , ,

Oil & Gas Top Analyst Calls (CPX, FSYS, KEG, PXD, STO)

These are some of the analyst calls impacting oil and gas related shares so far this morning from Wall Street research firms:

  • Complete Production Services (NYSE: CPX) Raised To Overweight By JP Morgan; shares indicated up 0.5% on thin volume.
  • Fuel Systems Solutions (NASDAQ: FSYS) Cut to Neutral from Buy at Broadpoint (alternative fuel for transportation and power generation); shares down 3.5% on downgrade.
  • Key Energy Services (NYSE: KEG) Raised ot Outperform at RBC Capital; shares up over 3% so far.
  • Pioneer Natural Resources (NYSE: PXD) Raised to Outperform at BMO Capital; shares up 1.8%.
  • Statoil Hydro (NYSE: STO) Started as Overweight at Morgan Stanley; Cramer just panned this one as "running out of oil" last night on CNBC’s MAD MONEY; shares up 1.3%.

Jon C. Ogg
June 24, 2008

Posted on: June 24, 2008 – 8:15 am in Analyst Calls, Oil & Gas, , , , ,

Up & Down the Oil & Energy Patch (CVX, DUK, PTEN, PXD, MUR)

Chevron Corporation (NYSE:CVX) reported earnings of $5.17 billion and $2.48 EPS for the first quarter of 2008.  First Call had estimates at $2.41 EPS. This compared with $4.72 billion and $2.18 EPS for the same period a year ago. Revenues jumped to $65.95 billion, up about 38% from $48.23 billion. Analysts were looking for revenues of $75.64 billion and $2.41 EPS. Refining earnings dropped from $1.62 billion to $252 million, due to higher crude oil costs and lower refining margins. It’s a repeat of the same story from all the integrated oil companies. CVX stock is up almost 1% at $95.80 in pre-open trading.

Duke Energy (NYSE: DUK) may be more of an electricity play, but when you look at its break-down you will understand why it’s included in energy stocks this morning.  It is trading up over 3% after earnings of $465 million or $0.35 EPS, compared to $0.30 EPS a year ago and compared to First Call estimates of $0.31. Revenues grew 9% to $3.337 billion, and First Call had estimates at $3.25 billion. 

Even though Duke’s numbers beat the estimates, it took an accounting change to make it happen. Duke changed the way it accounts for the impact of mark-to-market hedges in its Commercial Power segment. Beginning in the 2008 first quarter, the company will exclude its commodity hedging from earnings. Adjusted earnings, compared with the first quarter of 2007, is exactly $0.05/share. So, EPS is flat compared with last year, and 70% of the earnings boost is attributable to this exclusion. The company reiterated its guidance for $1.27 EPS in 2008.

Elsewhere, analysts have made a few calls regarding the oil and energy stocks this morning with calls in Patterson-UTI (NASDAQ: PTEN), Pioneer Natural Resources Company (NYSE: PXD), and Murphy Oil (NYSE: MUR):

  • Patterson-UTI (NASDAQ: PTEN) was raised by Credit Suisse, although the prior "Underperform" rating was raised only to a Neutral.
  • Pioneer Natural Resources Company (NYSE: PXD), in the exploration and production of oil and gas, was also raised to a Buy from a Hold rating over at Deutsche Bank.
  • Murphy Oil (NYSE: MUR) was downgraded this morning over at Bernstein’s research department.  Its prior "Outperform" rating was given a new "Market Perform" rating.

Paul Ausick
May 2, 2008

Posted on: May 2, 2008 – 8:11 am in Oil & Gas, , , , ,