4Q12 Earnings
I don't have time to check/update earnings on all companies listed below. If you see one that I have missed, feel free to send it in (anonymous comment or by e-mail) and I will post it.
Comment: companies are starting to warn about 4Q12 earnings. First was SLB, then BHI.
Miscellaneous articles:
General update:
Alcoa: earnings in-line; revenues top forecasts
Week of January 14 - January 18 in bold
EPS estimates in parentheses following the ticker symbol (according to Yahoo!Finance)
AXAS: Abraxas Petroleum chalked up revenue of $19.1 million. The seven analysts polled by S&P Capital IQ foresaw a top line of $18.2 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $15.6 million. EPS came in at -$0.03. The nine earnings estimates compiled by S&P Capital IQ predicted $0.00 per share. Non-GAAP EPS were -$0.03 for Q4 against -$0.12 per share for the prior-year quarter. GAAP EPS were -$0.13 for Q4 versus -$0.06 per share for the prior-year quarter.; earnings call; boe flat over past three years, but decrease in NG offset by increase in liquids (good news); looking for 5,000 boepd exit rate by end of 1Q13; Last year, we participated in 27 outside-operated Bakken Three Forks wells. And so far this year, we've participated in 11 more. Generally, no one represents a large capital commitment, but together they do. That's a planning and budgeting issue. We like to be in better control of our capital expenditure plus overall operations, so we've made the decision to sell most of our non-op Bakken interests. The frac on the Joy went off without a hitch and the well's been on production ever since except for some weather and minor workover shut-ins. The Raven 2H and 3H, we weren't so lucky. Both encountered downhaul mechanical issues that required remedial work that resulted in a significant settlement with our third-party service provider, I might add. The fracs were completed in February, and both wells have been on production since. We're not as happy with the frac on the 2H as we were with the 3H. But the 2H is producing on our type curve while the 3H is producing well above our type curve.
BAX ($1.26): January 24
BEXP: see STO below
BHI (61 cents): January 23, before market open --
BK (54 cents): earnings in-line; 53 cents; BK down almost 3% on the market;
CHK: beats estimates -- almost double;
CLNE: March 12
CLR: press release; "the market" was enthusiastic; webcast February 28;
CNP: beats by 10 cents; transcript; Motley Fool;
COP: beats by a penny; but guidance down; share price hit; transcript;
Crescent Point:
CRR (CARBO Ceramics) (86 cents): Carbo Ceramics reports EPS in-line, beats on revs
CVX ($3.00): $3.70; link here; transcript;
DNR: beats, 36 cents vs 29 cents; transcript;
DVN: February 20
ECA: April 18
EEP: February 11 (webcast February 14)
ENB: misses by 2 cents; transcript here;
EOG: beats by 26 cents; huge quarter; raises dividend; transcript here.
EPD (65 cents): Enterprise Products beats by $0.02, misses on revs
ERF: February 25
GEOI (bought by Halcon [HK], below)
GMXR:
HAL (61 cents): 72 cents; topped expectations; HAL surged in trading.
HES ($1.25):$1.66 vs $0.39 a year earlier; cites huge Bakken production; Yahoo! In-Play;
HP ($1.29): beats by $0.11, beats on revs:
HK (Halcon; previously GEOI): February 28; before market opens
Kinder Morgan - KMP (66 cents): January 14
KOG: missed on revenue and earnings, but still huge; 11 cents vs 12 cents (analysts) and loss of one penny a year earlier; transcript;
Legacy/Bowood:
LINE: February 18
MDU: loses a penny/share on write-down; $1.15 vs $1.19 a year earlier after adjustments; share price up; investors like guidance;
MMR (McMoRan) (- 1 cent): came in exactly on target; lost a penny; compared to earning 16 cents the same quarter last year;
MPC (Marathon Petroleum) ($2.09): $2.24; compared with a loss of 21 cents one year earlier; cheap domestic oil replaced expensive foreign oil; doubled its dividend; announced a 2.65 billion share buyback;
MRO (Marathon Oil): misses by 12 cents; beats on revenues;
MUR ($1.33): January 30
NBL: February 7
NBR: beats by 15 cents; press release;
NFX: 4Q12/2013 full year;
NOG: beats by 7 cents; press release; (flashback, this was 3Q12: 27 cents vs 22 cents 2Q12; beats by a penny; transcript;)
NOV: $1.56; nice numbers but shares drop;
OAS: press release; year-end review by Z-Man (Steve Zachritz); beats on both top and bottom lines; transcript; 49 cents vs 47 cents (analysts);
OKE: press release; earnings transcript;
OKS: February 25; as a dividend play;
OXY ($1.67) : $1.83; press release here.
PAA: beats by 3 cents; beats on revenues;
PSX ($1.67): $2.06; announces fourth-quarter earnings of $708 million and adjusted earnings of $1.3 billion. This compares with earnings of $2.0 billion and adjusted earnings of $379 million during the fourth quarter of 2011. Eleven cents/share; adjusted, $2.06.
QEP: beats on top and bottom lines; press release;
RIG: February 24
SD: press release;
SLB ($1.08): "surges" past expectations on top and bottom line; $1.02; Motley Fool here; increases dividend
SM: beats on both top and bottom line; 45 cents vs 24 cents (analysts); transcript;
SRE: beats by 10 cents; transcript;
SRGY:
SSN:
STO (BEXP): May 3
STR: February 11
T (45 cents): misses by a penny; but revenues better than expected; strong growth in wireless and U-Verse;
TPLM: April 15
UNP: beats expectations; trading at all-time highs;
USEG: March 11
VLO: reported net income attributable to Valero stockholders of $1.0 billion, or $1.82 per share, for the fourth quarter of 2012 compared to net income attributable to Valero stockholders of $45 million, or $0.08 per share, for the fourth quarter of 2011. Included in the fourth quarter 2012 results was a noncash asset impairment loss of $37 million after taxes, or $0.06 per share.
For the year ended December 31, 2012, net income attributable to Valero stockholders was $2.1 billion, or $3.75 per share; transcript;
VOG:
WFT: February 19
WHX: March 15
WHZ:
WLL: press release, beats by 9 cents; transcript;
WMB: press release; impacted by drastically lower propane, ethane prices; misses on revenue and earnings; 25 cents vs 26 cents (analysts); transcript;
WPX: misses by 11 cents; press release;
XOM: beats ($2.20 vs $1.97); earnings up 6%; transcript;
XLNX (37 cents): Xilinx beats by $0.01, misses on revs; guides Q4 revs below consensus 36.44 +0.24 : Reports Q3 (Dec) earnings of $0.38 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.37; revenues fell 0.3% year/year to $509.8 mln vs the $527.33 mln consensus.
What are your thoughts or what articles have you come across concerning the multiple potential shale plays that may come on line, or are coming on line in the future in other states. In a more competitive field do you think North Dakota should lower its tax rate on oil extraction to help maintain robust development in the Bakken. I know this topic has come up before in the past. I also know that the State of North Dakota runs an ever two year legislative session and apart from a special session I am wondering if they should consider lower extraction taxes to a competitive range like Texas' tax structure which is near 8%.
ReplyDeleteMy fear is that if they do not react soon market forces may sneak up on them and force them to react when it is too late.
http://www.kfyrtv.com/News_Stories.asp?news=60991
Great blog as always.
I do have a small royalty interest involved which of course makes me biased. But, I think this topic will remain important as more fields are discovered, some possibly with more robust economic condition. It is time to compete and not do business as usual.
Tax code is complicated. Taxes on oil in Texas may be less than those in North Dakota but there are several taxes and it's not easy (at least for me) to compare the tax rates. Does Texas, for example, have a lower rate on Eagle Ford wells? See below, why I ask.
DeleteJust a couple examples from the ND tax website:
1. The gross production tax rate on gas is subject to a price index change on July 1 each year, the rate through June 30, 2013 is $.1143 per mcf. The gross production tax rate on oil is 5% of the gross value and the oil extraction tax rate is 6.5% of the gross value; 4% if the well qualifies for a reduced rate; 2% from qualifying wells in the Bakken formation; and 0% if the well qualifies for an exemption. [NOTE: the 2% rate on qualifying wells in the Bakken.] [I think the gross production tax rate has decreased, but I could be wrong.]
2. Various reduced rates and/or exemptions apply for new vertical and horizontal wells, new wells drilled on Indian land, workover wells, stripper wells, two-year inactive wells, horizontal reentry wells, enhanced recovery wells, and qualifying Bakken formation wells.
It would be interesting for "someone" like a UND graduate student to do a study, seeing if lower tax rate in North Dakota would have a material effect on drilling. Wow, there are a lot of factors to consider.
BTW, KFYR's comment that the new Siberian oil field could be 80x bigger than the Bakken needs to be put in perspective:
http://www.milliondollarwayblog.com/2012/12/how-big-is-bakken.html
As you know capital follows greater returns. It also is a slow yet steady moving ship. My main point is that Government and its policies that move or interfere with capitalism, in this case tax structure is an even slower less steady moving ship. My point is simple as more shale fields become available will it become important for the Bakken field and area to become more competitive as more investment dollars seek higher ROI investments. My biggest concern is there may come a couple of plays that have lower depths with similar outputs. This will lead to a slowing of drilling in the bakken, especially if the barrel cost go down and stays down. Perhaps ND should consider a staggered structure in case oil price does go down.
ReplyDeleteTrust me I am not a nay sayer on development I just think all of the added resources potentially coming on line requires north dakota to study(UND) the impacts before they see a bunch of rigs leaving for greener fields. A 4 % drop in taxes can change the equation and mitigate any future problems.
You are correct.
Delete