Posts Tagged ‘Energy Stocks’

Layne Christensen Co. (LAYN) surges on Q1 results

Wednesday, June 8th, 2011

Layne Christensen Co. (Nasdaq: LAYN) shares rose 13.8% to $31.19, after the provider of drilling and construction services reported first-quarter results that beat estimates. Volume of more than 127,000 has already outdistanced its daily average of 104,264.

The company, based in Mission Woods, Kansas, today announced net income for the first quarter ended April 30, 2011, of $13,066,000, or $0.66 per diluted share, compared to net income of $6,571,000, or $0.34 per diluted share last year.

Revenues for the three months ended April 30, 2011, increased $36,656,000, or 15.9%, to $267,371,000 compared to $230,715,000 for the same period last year.

Company CEO Andrew Schmitt led off the June 8, 2011 press release announcing the improved bottom line by commenting, “Layne Christensen Company had an all-time record first quarter in revenues and the third best first quarter in earnings, excluding the gain on sale of our Fontana, California facility.

“The Mineral Exploration Division was up significantly over last year in both revenues and earnings and the Water Infrastructure Division improved in an environment of continued weakness in municipal spending. Our Energy Division remains profitable despite very weak natural gas pricing. The markets in which we operate outside the U.S. still look very strong.”

For well over a century, Layne Christensen has been drilling deep to bring vital natural resources to the surface. Today, it claims to use the 21st century’s most advanced technologies to locate and produce water, minerals and energy – all essential to people’s lives every day.

El Paso Corp. (EP) perks on higher earnings outlook

Tuesday, May 24th, 2011

El Paso Corp. (NYSE: EP) shares climbed 7.2% to $20.35 Tuesday, after the natural-gas producer and pipeline operator hiked its 2011 earnings forecast and announced plans to split into two publicly traded companies. Volume for the stock was 27.9 million shares, dwarfing an all-day average of 10.4 million.

El Paso Corporation announced today that it is raising its financial and operational guidance for 2011 as results to date have exceeded expectations. Among the highlights: $1.00-$1.10 adjusted diluted earnings per share (Adjusted EPS); $2.3-$2.5 billion Adjusted Segment Earnings Before Interest and Taxes; $3.4-$3.6 billion Adjusted Segment Earnings Before Interest, Taxes and Depreciation, Depletion and Amortization (Adjusted Segment EBITDA) and; $2.2-$2.4 billion cash flow from operations.

El Paso CEO Doug Foshee, commented, “El Paso is on its way to another great year with improved earnings and operating cash flow. We are particularly excited about our drilling results in the Eagle Ford shale, where our oil production will grow significantly this year. We are also very pleased with the pace of dropdowns to El Paso Pipeline Partners, L.P. (NYSE: EPB). Our MLP has already issued more equity than we anticipated for all of 2011, and we will continue to accelerate our balance sheet improvement with the proceeds from future transactions.”

Moreover, El Paso announced today that its Board of Directors has granted initial approval of a plan to separate the company into two publicly traded businesses by year end 2011.

Following the completion of the proposed spinoff, El Paso Corporation will be comprised of El Paso’s Pipeline Group, its Midstream Group, and its general and limited partner interests in El Paso Pipeline Partners, L.P. It will be the premier pipeline company in North America, uniquely integrated in the major U.S. supply and market regions. With a planned 2012 annual dividend of $0.60 per share and a targeted low double-digit dividend growth rate, it is positioned to be a very attractive corporate yield investment.

Silver Bull Resources Inc. (SVBL) leaps on outside investment

Wednesday, May 18th, 2011

Silver Bull Resources Inc. (Amex: SVBL) shares rocketed higher 10.3% to 75 cents after announcing that Coeur d’Alene Mines Corporation (NYSE: CDE) has executed a term sheet to make a $5-million U.S. investment in Silver Bull. Volume for Silver Bull was 172,100 shares, compared to an all-day average 675,232.

Coeur d’Alene intends to purchase 7,352,941 shares of Silver Bull common stock at $0.68 per share in a private placement transaction. Closing of the transaction is subject to the execution of a definitive agreement, and approval of the NYSE Amex Stock Exchange and the Toronto Stock Exchange.

Silver Bull Tim Barry said, “We are extremely pleased to have a company with the reputation and stature of Coeur d’Alene invest in Silver Bull and this financing will allow us to complete our planned 2011 exploration program at Sierra Mojada.

“We feel this investment is a solid endorsement of the work we have completed to date, and of the potential at the Sierra Mojada project.”

Based in Vancouver, British Columbia, Silver Bull is focused on the acquisition, exploration and potential development of mineral properties. Silver Bull currently owns mineral concessions in the municipality of Sierra Mojada, Coahuila, Mexico and holds exploration licenses in Gabon, Africa.

Rosetta Resources (ROSE) stock propels higher on upbeat numbers and upgrades

Monday, May 9th, 2011

Rosetta Resources Inc. (Nasdaq: ROSE) shares advanced 19.7% to $49.20, after several analysts upgraded shares of the oil and natural-gas company. Volume for the stock topped 3.1 million shares Monday, or nearly five times its daily average.

Investment firm Cannacord Genuity was particularly bullish and placed a $53 price target on the stock, which represents about a 30% premium to its Friday closing price. On Friday, the Houston-based Rosetta announced, for the first quarter ended March 31, 2011, net income of $11.0 million, or $0.21 per diluted share, versus a net income of $7.3 million, or $0.14 per diluted share, for the same period in 2010. These results include a $1.8 million after tax gain related to the settlement of hedges associated with the divested DJ Basin property.

Revenues for the first quarter of 2011 were $97.1 million compared to $70.1 million for the same period in 2010. Compared to a year ago, higher product revenues from oil and liquids were partially offset by lower gas revenues.

Said CEO Randy Limbacher, “the first quarter of 2011 delivered strong results led by continued success in our Eagle Ford shale play. We have continued to shift our production base to a more balanced portfolio weighted towards liquids and are reaping the benefits of a lower operating cost structure.
“We successfully completed our asset divestiture program and the proceeds will provide additional flexibility to execute our growth plans. Rosetta entered 2011 a streamlined and more focused company that is positioned to deliver double-digit growth into the future.”

Rosetta Resources Inc. is an independent exploration and production company engaged in the acquisition and development of onshore energy resources in North America. The Company’s activities are primarily located in South Texas, including its largest producing region in the Eagle Ford shale and in the Southern Alberta Basin in northwest Montana.

International Coal Group Inc. (ICO) takeover target sees price soar

Monday, May 2nd, 2011

International Coal Group Inc. (NYSE: ICO) shares climbed 30.9% Monday to $14.44, after Arch Coal Inc. (NYSE: ACI) said it would buy the coal miner for $3.4 billion. Volume for International Coal stock was a towering 153.5 million shares, overwhelming a daily average of around 7.8 million.

The combined company will be the second largest U.S. metallurgical coal supplier and a top-five overall global coal producer and marketer. Arch will have a balanced metallurgical (“met”) and thermal coal portfolio with unparalleled operational diversification in every major U.S. supply basin and the No. 1 or No. 2 position in each of its three core operating regions.

“The acquisition of ICG is a significant strategic step that strengthens Arch’s position as a world-class, global coal franchise positioned for growth,” said Arch CEO Steven F. Leer.

“This transaction will greatly expand our participation in global met markets; provide a powerful platform for future organic met coal production growth; enhance and further diversify our met and thermal coal product slate; extend our operating portfolio into every major U.S. coal-producing basin; and solidify our position as one of the industry’s lowest cost producers.”

Ben Hatfield, president and CEO of International Coal Group, said, “ICG has assembled a high-quality portfolio of low-cost mining operations and reserves, and one of the industry’s most talented and productive workforces. By teaming up with Arch, we expect to realize tremendous value for the shareholders of both companies while ensuring that our operations achieve their full potential.”

ICG is a leading producer of coal in Northern and Central Appalachia and the Illinois Basin. The company has 13 active mining complexes, of which 12 are located in Northern and Central Appalachia and one in Central Illinois. ICG’s mining operations and reserves are strategically located to serve utility, metallurgical and industrial customers domestically and internationally.

Arch Coal is one of the world’s largest coal producers, with more than 160 million tons of coal sold in 2010. Arch’s national network of mines supplies cleaner-burning, low-sulfur coal to customers on four continents, including U.S. and international power producers and steel manufacturers. In 2010, Arch achieved record revenues of $3.2 billion.