Investors Only -- CLR, SM Energy, GMXR Reports -- After Market Close; Also MRO; And, EPD, Before Market Open

See disclaimer.

CLR: link here -- daily production up 66% year-over-year; adjusted earnings 76 cents vs 53 cents y-o-y if I read the table correctly; I'm sure analysts will sort it out.  Daily production averaged 85,500 bopd vs 52,000 bopd (rounded).

SM: link here --

SM Energy reported net income for the first quarter of 2012 of $26.3 million or $0.39 per diluted share. This compares to a net loss of $(18.5) million, or $(0.29) per diluted share, for the same period of 2011. Adjusted net income for the first quarter of 2012 was $32.8 million, or $0.48 per diluted share, compared to adjusted net income of $28.1 million, or $0.42 per diluted share, for the same period of 2011.

From Yahoo!InPlay: SM Energy misses by $0.05, misses on revs: Reports Q1 (Mar) earnings of $0.48 per share, $0.05 worse than the Capital IQ Consensus Estimate of $0.53; revenues rose 19.7% year/year to $377.4 mln vs the $395.72 mln consensus. In 2012, co sees production of 220-227 and in Q2 sees 50-54 BCFE. (Q1 BCFE was 50.7 vs 48.5-52.0 company consensus).

EPD: beats expectation --

Net income rose to $656 million, or 73 cents per unit, from $435 million, or 49 cents per unit, a year earlier.

Revenue rose 11 percent to $11.3 billion.

Enterprise shares have gained nearly 20 percent of their value in the last year.

Devon: production climbs; profit dips; 

Parker Drilling:

For the 2012 first quarter that include net income of $26.4 million, or $0.22 per diluted share, on revenues of $176.6 million, compared with 2011 first quarter net income of $4.8 million, or $0.04 per diluted share, on revenues of $156.2 million.

MRO: significant decrease in earnings. 

First-quarter profit fell to $417 million, or 59 cents a share, from $996 million, or $1.39 a share, in the year-ago period prior to the spin-off of its refining unit. Adjusted profit fell to 67 cents a share, from 88 cents a share.

GMXR misses by 1 cents (no link, Yahoo!InPlay):

GMX Resources misses by $0.01, beats on revs: Reports Q1 (Mar) loss of $0.20 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of ($0.19); revenues fell 40.8% year/year to $17.4 mln vs the $15.55 mln consensus.

For Investors Only: CVX

April 13, 2019: CVX makes offer for Anadarko: here; and, here.


July 3, 2013: CVX moves 400 employees from its HQ in San Ramon (CA) to Houston; building a new building in Houston; says they are keeping HQ in San Ramon (CA). Sure. 

June 17, 2013: CVX to sell $6 billion in bonds; one of the largest deals this year; largest deal for CVX since at least 1995.

May 29, 2013: highlights of CVX 2013 Annual Stockholder Meeting.

January 28, 2013: ex-judge says he was bribed by the Equadorians who are suing CVX. I think I've heard this before.

October 10, 2012: share price of CVX is taking a real hit today after CVX said it's 2Q12 earnings would be significantly lower due to Hurricane/Tropical Storm Isaac. More concerning to me was the refusal of the US Supreme Court to rule in favor of CVX vs Ecuador. I assume these things will take care of themselves over time but it's hard to say. If one is optimistic about the company, this provides another entry point for CVX. It goes ex-dividend around November 15, and will be paying a nice dividend. It has increased its dividend in both May, 2012, and November, 2011. If the company does not have plans for its cash horde, and feels comfortable despite the US Supreme Court ruling, it's very possible CVX could reward its shareholders for sticking with them during this minor setback in production goals. Smile. Perhaps wishful thinking. [Note the disclaimer for this site: it is not an investment site; make no investment decisions on what you read here.]

October 7, 2012: strong dividend growth should continue. Link to a SeekingAlpha.com article.

CVX had about $253.7 billion in revenue in 2011, up 24% from 2010. However this growth is not projected to continue into 2012 and 2013 when analysts target about $252 billion and $262 billion respectively. CVX has a market capitalization of $230.6 billion and an enterprise value of $219.3 billion, shows almost no debt. CVX has about $10.2 billion in debt, but over $21 billion in cash and equivalents. CVX has a strong track record of paying dividends. For 2011, its payout ratio to net income was 23% and its payout to operating cash flow was 15%. While CVX primarily returns capital to shareholders through dividends, CVX did repurchase over $3 billion of shares in 2011, up substantially from the two previous years.

September 11, 2012: Cash horde. The article mentioned only Hess and CHK as possible takeover candidates. I doubt either.

Having checked the balance sheet of its bigger competitor Exxon Mobil, I could plainly see that Chevron has more cash on hand. This could be seen by the end of 2011, when Chevron had increased the cash carried on the balance sheet by nearly 13 percent over the previous year.

As of June 30, Chevron was sitting on a $21.46 billion war chest in total cash and had a staggering $10.65 billion in levered free cash flow (trailing 12 months). In comparison, Exxon Mobil had $17.8 billion in total cash and $15.58 billion in levered free cash flow (trailing 12 months). 

As recently as Aug. 28, The Wall Street Journal, in a story titled “Chevron Cash Fuels Deal Talk,” reported the investment community has been buzzing about what Chevron is planning to do with all that cash. “Even if Chevron used the money to retire its debt,” the Journal mused, “it would still have about $11 billion left over.” 

May 1, 2012, link here -- SeekingAlpha.com.

The company's earnings per share rose (from $3.09 to $3.27) as have the total earnings, from $6.2 to $6.5 billion (1Q12).

These earnings fell short of analysts' expectations of $3.31 per share. The main reason for the setback is the decreased production of oil from 2.76 million barrels a day to 2.63 million barrels of oil per day, but we think the setback is temporary. 

Chevron is also raising its yield (up by 11% to 90 cents a share). These excellent gains are definitely a cause for excitement, but should be closely watched until the company is able to boost its oil production. 

May 1, 2012, link here -- Motley Fool.com.

With earnings season essentially having been relegated to history for the major oil companies, it's difficult not to be impressed by the scope and direction of Chevron, the second-largest of the U.S.-based integrated companies, and Royal Dutch Shell, its Anglo-Dutch peer.  

In an overall evaluation of all the companies, including their relative approaches to their businesses and their geographic concentrations, one is likely to find the California-based company about as compelling as is Shell. 

Disclaimer: this is not an investment site; this is not a recommendation to buy, sell, or hold any shares mentioned in these articles.

I am placing this here for future reference.

Ten (10) New Permits -- The Williston Basin, North Dakota, USA

Daily activity report, May 1, 2012 --

Operators: Denbury (3), Whiting (2), Hess (2), CLR (2), Petro-Harvester

Fields: Battleview (Williams), Robinson Lake (Mountrail), Charlson (McKenzie), Renville (Bottineau), Bell (Stark), East Fork (Williams)

Permit canceled:

• 21175, PNC, Whiting, Rodney Olson Federal 42-8TFH, Mountrail

Fifteen wells released from "tight hole" status:

• 19882, 1,197, Zavanna, Bruce 5-8 1H, Crazy Man Creek, Bakken; t1/12; cum 59K 3/12;
• 19964, 592, EOG, Hardscrabble 4-3427H, Sixmile, Bakken, t11/11; cum 48K 3/12;
• 20429, 337, XTO, Leslie 42X-13, wildcat, t2/12; cum 2,634 3/12;
• 20432, 282, EOG, Sidonia 41-2017H, t11/11; cum 38K 3/12;
• 20781, DRL, ERF, Pine 148-94 12D-01-3H, McGregory Buttes, Bakken,
• 20851, 782, ERF, Forge 148-94 11B-3H, McGregory Buttes, Bakken; t1/12; 38K 3/12;
• 20857, 358 (1,312 according to the sundry form), KOG, Pankowski 4-6H, Truax, Three Forks; t2/12; cum 11K 3/12; 23 stages; 1 million lbs proppant; ("ten stages this frac"on sundry form; I do not know what that meant)
• 20954, 208, Petro-Hunt, Setterlund 159-94-28B-33-1H, North Tioga, Bakken, t2/12; cum 6K 3/12;
• 21261, 94, Oasis, Clark 5602 12-13H, Tyrone, Lodgepole Formation -- not a Bakken;
• 21499, DRL, BEXP, Dominek 13-24 1H, Todd, 25K in 1.5 months; going to be a nice well;
• 21576, 454, Hunt, Halliday 2-12-1H 1, Wolf Bay, t3/12; cum 31K 3/12;
• 21593, DRL, Hess, SC-Jean 157-99-0904H-1, wildcat,
• 21594, 702, Zenergy, Paulson 13-14H, Assiniboine, Bakken, t12/11; cum 21K 3/12
• 21679, 42, CLR, Running 1-4H, Wildcat, Bakken,
• 90179, Salt water disposal, SBG Grassy Butte LLC

One producing well completed:

• 20841, 2,005, BR, Taylor 31-1H, Bully field, Bakken, t12/11; cum 13K 3/12;

Another well name change suggesting new target:

• 22586, BEXP, Bratcher 10-3 4H (was Bratch...4TFH)

Liberty Resources: Water Injection -- Two Wells

Earlier today I transcribed 35 wells that Liberty Resources acquired recently. I didn't think they would do anything with these wells, that they had just acquired these wells in the process of acquiring Bakken acreage, but in fact it looks like they are going to see how much life these old wells still have:

These two wells were on the daily activity report today, converted to water injection:

• 10881, 200, Liberty Resources, G. A. Meyers 1, t12/84; Madison, sporadic production; Glass Bluff; 
• 10923, 74, Liberty Resources, Lassey-Lindsley 1, t10/84; Madison, Duperow (DRY), Birdbear (DRY); minimal production since 2010; Glass Bluff

Absolutely Nothing To Do With The Bakken: USS North Dakota

A new Virginia-class nuclear submarine, the USS North Dakota.

Former North Dakota senator Byron Dorgan led the effort for the Navy to name a new USS North Dakota. According to a news release that his office issued in 2009, Dorgan invited Sen. Kent Conrad, D-N.D., now former representative Earl Pomeroy and other distinguished North Dakotans to form the USS North Dakota Committee. Former Secretary of State Warren Christopher, who was born in Scranton, was convinced to be honorary chairman. In July 2008, the effort paid off.

The state of North Dakota will miss Senator Byron Dorgan.  But my hunch is that our current reps (Senators and Representative) will also serve the state well.

SSN-784 is the first of eight submarines in Block III of the program.