Parsley Energy (PE) is a pure-play Permian producer with a healthy balance sheet, good acreage and strong production growth potential. It issued $700 million in 2027 notes in October, likely giving it enough cash on hand to grow its way to positive cash flow. It is currently projected to have over $300 million in cash remaining at the end of 2019, after significant outspend in 2018 and modest outspend in 2019 (using a $1.525 billion capital expenditure budget).
Parsley’s debt is not a concern and its leverage should fall to near 1.0x by the end of 2019. I have been following Parsley as part of my Marketplace service and took a position in it after its operational update in late January resulted in a significant negative market reaction, as I believe that its value is around $29 to $30 per share after factoring in the higher costs and slower production growth mentioned in that operational update.
I will continue to cover Parsley Energy mainly through my Marketplace service. This report includes information from some of those past Marketplace reports that are available to my subscribers.
Top 5 Energy Stocks To Own Right Now: CVR Refining, LP(CVRR)
- [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 $20.30
Source: Company Earnings releases
- [By Robert Rapier]
CVR Partners’ fertilizer plant is located in Coffeyville, Kansas, adjacent to the refinery owned by CVR Refining (NYSE: CVRR). CVR Energy (NYSE: CVI), majority-owned by Carl Icahn via Icahn Enterprises (NYSE: IEP), is the general partner and owns most of the units for both CVR Partners and CVR Refining.
- [By Lisa Levin]
Shares of CVR Refining LP (NYSE: CVRR) were down 11 percent to $10.00. Velocity Midstream Partners and CVR Refining disclosed the execution of agreements related to the construction of a crude oil pipeline from the SCOOP play in Central Oklahoma to CVR's Wynnewood refinery.
Top 5 Energy Stocks To Own Right Now: Murphy Oil Corporation(MUR)
- [By Ben Levisohn]
It wasn’t just Marathon that got clipped as the eight worst-performing stocks in the S&P 500 came from the energy sector, including Murphy Oil (MUR), which fell 6.7% to $25.87, Devon Energy (DVN), which slid 6.5% to $40.72, and Chesapeake Energy (CHK), which stumbled 6.1% to $4.94. No surprise, then, that the Energy Select Sector SPDR ETF (XLE) slumped 2.6% to $69.65.
- [By Joshua Bondy]
Murphy Oil (NYSE: MUR ) has already spun off its US retail operations into Murphy Oil USAandis exploring the possibility of spinning off its U.K. refining operations. Divesting its refineries will help direct excess cash to developing new fields.
- [By Ben Levisohn]
Oil stocks responded immediately to Opec–Murphy Oil (MUR) was our Hot Stock on Wednesday when the deal was reached, while Transocean (RIG) was our Hot Stock on Monday even before an announcement was made–Southwestern is only now catching a bid, a bid that pushed its market capitalization up to $6.5 billion.
Top 5 Energy Stocks To Own Right Now: Denbury Resources Inc.(DNR)
- [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.
- [By Matthew DiLallo]
That sell-off in the oil market weighed on financially challenged oil stocks, which will struggle if crude continues dropping. Among the biggest losers were Abraxas Petroleum (NASDAQ:AXAS), Whiting Petroleum (NYSE:WLL), Denbury Resources (NYSE:DNR), California Resources (NYSE:CRC), and Cobalt International Energy (NYSE:CIE).
- [By Paul Ausick]
Denbury Resources Inc. (NYSE: DNR) dropped about 10.7% Monday to register a new 52-week low of $0.91 after closing at $1.03 on Friday. The 52-week high is $4.29. Volume was around 7.3million, about 1 million more than the daily average. The company also announced operational issues related to tropical storm Harvey.
Top 5 Energy Stocks To Own Right Now: MPLX LP(MPLX)
- [By Ben Levisohn]
JPMorgan analyst Phil Gresh and team explain what they got wrong about Marathon Petroleum (MPC), as they cut its rating to Neutral from Overweight following yesterday’s disastrous financial results from MPLX (MPLX):
- [By Logan Wallace]
COPYRIGHT VIOLATION NOTICE: “Mplx (MPLX) Receives New Coverage from Analysts at Deutsche Bank” was originally published by Ticker Report and is owned by of Ticker Report. If you are accessing this piece of content on another publication, it was stolen and reposted in violation of US & international trademark and copyright laws. The original version of this piece of content can be viewed at www.tickerreport.com/banking-finance/3371782/mplx-mplx-receives-new-coverage-from-analysts-at-deutsche-bank.html.
- [By Garrett Cook]
Lastly, Citi says Marathon Petroleum (NYSE: MPC) and MPLX LP (NYSE: MPLX) remain Buy rated the heels of benefits derived from strong product demand and the NGL recovery.
Top 5 Energy Stocks To Own Right Now: Sunoco Logistics Partners LP(SXL)
- [By Matthew DiLallo]
Meanwhile, a noteworthy project in the midstream segment finally finished construction in the quarter, after the company and its joint venture partners Energy Transfer Partners (NYSE:ETP) and Sunoco Logistics Partners (NYSE:SXL)completed the controversial Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline. The partners expect commercial operations to begin this June, which means that this pipeline should drive incremental earnings for Phillips 66 in the back half of this year.