Investors are getting even more of what they say they want from Apache (NYSE:APA),
as this large independent oil and gas producer has reached an agreement
to sell down its stake in Egypt. Due in no small part to the
significant increase in political/operating risk in Egypt, many
shareholders and analysts had been vocal in calling for Apache to reduce
its exposure to the country. Although it sounds like Apache got a
reasonable deal, I am skeptical that it's really going to change
opinions on this company as it goes through a restructuring of its
operations.
Please read more here:
http://www.investopedia.com/stock-analysis/083013/apache-makes-another-move-reduce-business-risk-apa-snp-oxy-omvky.aspx
Showing posts with label OMV. Show all posts
Showing posts with label OMV. Show all posts
Friday, August 30, 2013
Monday, August 19, 2013
Seeking Alpha: OMV's Transformation Should Unlock Meaningful Value
One of the most rewarding things about writing about stocks is when
you write a piece, make certain specific predictions, and then see those
come to fruition. In contrast, one of the most frustrating things is to
have a piece all lined up and ready to go and then see one of your big
predictions come true before your piece gets published. That has
happened to me now on OMV (OMVKY.PK), as the company announced Monday that the company had reached a potentially transformative $2.7 billion deal with Statoil (STO).
The good news is that my basic thesis on OMV still holds - OMV looks like a significantly undervalued European energy major with catalysts to drive better performance in the coming years. Not only does the acquisition of North Sea assets from Statoil significantly improve the odds that the company will meet its long-term production growth goals (something the Street was incredibly skeptical about), but OMV remains a strong free cash flow-generating major with a low breakeven price and capacity for additional farm-ins as circumstances allow. All told, I believe these shares should trade more than 30% higher than they do today.
Please read more here:
OMV's Transformation Should Unlock Meaningful Value
The good news is that my basic thesis on OMV still holds - OMV looks like a significantly undervalued European energy major with catalysts to drive better performance in the coming years. Not only does the acquisition of North Sea assets from Statoil significantly improve the odds that the company will meet its long-term production growth goals (something the Street was incredibly skeptical about), but OMV remains a strong free cash flow-generating major with a low breakeven price and capacity for additional farm-ins as circumstances allow. All told, I believe these shares should trade more than 30% higher than they do today.
Please read more here:
OMV's Transformation Should Unlock Meaningful Value
Wednesday, November 10, 2010
McDermott's New Life
For McDermott (NYSE: MDR), it is now all about energy. With the completion of the Babcock and Wilcox (NYSE: BWC) spinoff at the end of July, McDermott is now an EPCI (engineering, procurement, construction, installation) company with a laser focus on the upstream energy market. In particular, the new company focuses on offshore projects in the Middle East and Asia. If Apache (NYSE: APA), Chevron (NYSE: CVX) or OMV want to build a new offshore installation (whether a production rig, subsea field or floating production system), they hire a company like McDermott to build it.
The First New Quarter In The Books
On the surface, this third quarter was not an auspicious beginning. Revenue dropped 28%, and operating income fell about 14%, though net income from continuing operations was actually up an encouraging 39%. Although there was weak order flow for the quarter, and the company's backlog declined on a sequential and year-over-year basis, McDermott has booked $1.2 billion in new orders for October.
Please follow the link to the full article:
http://stocks.investopedia.
The First New Quarter In The Books
On the surface, this third quarter was not an auspicious beginning. Revenue dropped 28%, and operating income fell about 14%, though net income from continuing operations was actually up an encouraging 39%. Although there was weak order flow for the quarter, and the company's backlog declined on a sequential and year-over-year basis, McDermott has booked $1.2 billion in new orders for October.
Please follow the link to the full article:
http://stocks.investopedia.
Subscribe to:
Posts (Atom)