SAExploration Holdings, Inc. (NASDAQ:SAEX) at Top of Sector Performance

SAExploration Holdings, Inc. (NASDAQ:SAEX)

SAExploration Holdings, Inc. (NASDAQ:SAEX) stock is up over 12.5% in early trading on a volume six times higher than the pro-rated daily average. This morning, SAEX shares are the best performers in the “Oil & Gas Equipment & Services” sector.

SAExploration Holdings, Inc. (NASDAQ:SAEX)

SAExploration Holdings, Inc. (NASDAQ:SAEX), headquartered in Houston TX, is an oilfield services company offering vertically-integrated seismic data acquisition and logistical support services in remote and complex environments. SAE operates crews around the world, performing major projects for major integrated oil companies, national oil companies, and large independent oil and gas exploration companies. Operations are supported through a presence in Houston, Alaska, Canada, Peru, Colombia, Bolivia, Brazil, and New Zealand.

Circumstances, possibly hurricane related, forced the company to reschedule its Q2 2017 earnings report for almost three weeks. However, last week the company announced plans to release its unaudited consolidated Q3 2017 financial results on Wednesday, November 8, 2017 after close of trading.

SAEX Stock Performance

With a market capitalization of $18 million, SAExploration Holdings, Inc. (NASDAQ:SAEX) is considered a nano-cap company. However, as a company in the energy sector, it has a large operating cashflow in the neighborhood of $160 million annually.

Earnings have been historically poor for the company. After posting a per share profit of $234.59 in 2012, they followed that stellar performance up with an EPS loss of (-$283.89) in 2013, and (-$383.52) in 2014. Those massive losses were followed by smaller EPS losses of (-$84.55) in 2015, and (-$6.13) in 2016. In 2016, the company also increased the number of outstanding shares, and diluted shareholder equity, from 120,000 to 4.08 million.

Institutions have decreased their shareholdings in SAEX stock by over 30%. Year-to-date, the stock is down almost 75%.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $SAEX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Torchlight Energy Resources Inc (NASDAQ:TRCH)

Oil Price Bring Traders to Torchlight Energy Resources Inc (NASDAQ:TRCH)

Torchlight Energy Resources Inc (NASDAQ:TRCH)

Torchlight Energy Resources Inc (NASDAQ:TRCH) shares are up over 7% to $1.49, and trading on a volume that is over 11 times their 30-day, daily average. Shares may be moving higher on the news from the European oil markets that the price of crude oil is rising in an environment where additional production is far from a certainty.

Ten-day chart for TRCH stock:

Torchlight Energy Resources Inc (NASDAQ:TRCH)

Plano, TX-based Torchlight Energy Resources Inc (NASDAQ:TRCH) is a high-growth oil and gas exploration and production (E&P) company with a focus on acquisition and development of highly profitable domestic oil fields. The company has assets focused in West and Central Texas where the company targets established plays such as West Texas’ Permian Basin and Eagle Ford Shale.

On October 18, Torchlight Energy Resources Inc (NASDAQ:TRCH) provided an update to the flowback process underway on its Flying B Ranch #3H well. At that time, the company said it was producing ~2500 barrels of fluid per day and experiencing increasing oil cuts and gas production. Most recent measurements reflected an oil cut of roughly 6% reaching ~150 BO/d and 30 MCF/d.

TRCH Stock Performance

TRCH shares have done well this year – up over 36%. However, this week alone the shares have skyrocketed and are up over 27%. That move pushed their Relative Strength Index (RSI) figure above 70 to 75. Accordingly, they are now trading in an area (above 70) that many traders consider to be in “overbought” condition, but given the recent upward trajectory in global oil prices, more may be left to the upside for this energy stock.

As demonstrated by the increase in share volume, traders may be moving quickly in this stock to capture any quick moves. Long-term investors have been rewarded but they also are skittish of the fact that Torchlight Energy Resources Inc (NASDAQ:TRCH) had increasing per share losses from 2012 through 2015 when the company posted a loss of (-$1.56) per share. That loss shrank to (-$0.18) for 2016. Another area of concern for long-term holders is the shareholder’s equity dilution. In 2014 15.73 million TRCH shares were outstanding. That number increased almost three-fold by the end of 2016 to 43.12 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $SMIT and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

W&T Offshore Inc. (NYSE:WTI) Could be on the Launch Pad

W&T Offshore Inc. (NYSE:WTI)

W&T Offshore Inc. (NYSE:WTI) is up for the mast month after the independent oil and gas drilling company posted 4th quarter and 2016 results. WTI shares closed at $2.62 on Wednesday but have reached $3.08 in inter-day trading – a gain of over 17%. Volumes have already doubled yesterday’s total.

W&T Offshore Inc. (NYSE:WTI) total annual production was down 1.7 million barrels of oil equivalent (“MMBoe”) in Q4 2016 – down 9.9% from Q4 2015. The lower production was due to natural production declines, well performance, pipeline outages along with field and platform maintenance.  This under-performance was partially offset by new oil production from the development of certain deepwater fields. For the quarter, revenues were $115.2 million, 72% of which was from oil and NGLs, and were up $11.1 million compared to Q4 2015.

Houston, TX-based W&T Offshore, Inc. (NYSE:WTI) is an independent oil and natural gas producer. The company acquires, explores, and develops oil and natural gas fields in the Gulf of Mexico. W&T holds working interests in approximately 54 offshore fields in federal and state waters. W&T has reserves of 76.4 million barrels of oil equivalent.

For the year, W&T Offshore, Inc. (NYSE:WTI) was downgraded by three firms in 2016. WTI performance lags behind oil exploration and drilling ETFs such as $XOP and $IEO. $WTI is up 12%, while XOP is up 44%, and $IEO has gained 30%. It should be noted that the constituents in these ETFs are larger and have access to more favorable financing in an industry that relies heavily on its ability to manage cashflows against volatile pricing.

3/2/2017
Ticker Symbol WTI
Last Price a/o 1:15 PM EST  $                      3.01
Average Volume                2,320,000
Market Cap (mlns)  $                  367.51
Sales (mlns) $388.80
Shares Outstanding (mlns) 140.27
Share Float (mlns) 91.79
Shortable Yes
Optionable Yes
Inside Ownership 32.90%
Short Float 10.17%
Short Interest Ratio 4.02
Quarterly Return 63.75%
YTD Return -5.42%
Year Return 20.74%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy. 

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.

Seadrill LLC (NYSE:SDLP) Prospects Looking Dim

Seadrill LLC (NYSE:SDLP)

Seadrill LLC (NYSE:SDLP) might be filing for bankruptcy. Seadrill is a UK-based limited liability company formed by Seadrill Limited (NYSE:SDRL) to own, operate and acquire offshore drilling rigs. The company’s drilling rigs are under long-term contracts with major oil companies such as Chevron, Total, BP and ExxonMobil. Yearly performance looks good – up 47%. However that number needs to be put in the context that the previous year was when SDLP shares were hitting all-time lows. When the downturn in the -off-shore drilling sector began in 2014, SDLP was trading above $20.

Wall St. analysts projected Seadrill LLC (NYSE:SDLP) Q4 revenues at $353 million – actual was $353.3 million. It is a small win for the company but that figure still represents a 24% YoY drop. Operating income dropped about 20% from the previous quarter and operating expenses increased around 3% from the prior quarter. However deeper in their earnings announcement was what cause SDLP shares to plummet:

The short to medium term outlook for the offshore drilling market continues to be challenging… We continue to expect utilization to get worse before it gets better as more units become available than are required… Discussions continue with stakeholders and potential new money investors, however given the status of those discussions, Seadrill Limited has indicated that it will be challenging to finalize a fully consensual agreement before April 30, 2017. In the event a consensual restructuring agreement is not concluded or an agreement to an extension is not reached, Seadrill Limited is also preparing various contingency plans, including potential schemes of arrangement or chapter 11 proceedings.”

On the release of this ominous press release, Seadrill LLC (NYSE:SDLP) shares dropped over 20%. Given the political landscape and the expectation that barriers to oil drilling will be dropping off faster than they were enacted, it is not unrealistic to believe that energy prices will remain flat or lower. Seadrill LLC (NYSE:SDLP) would, in that case, probably need to review alternatives.

3/1/2017
Ticker Symbol SDLP
Last Price a/o 4:44 PM EST  $                      3.62
Average Volume                    807,630
Market Cap (mlns)  $                  329.06
Sales (mlns) $1,710.00
Shares Outstanding (mlns) 90.9
Share Float (mlns) 49
Shortable Yes
Optionable Yes
Inside Ownership 0.00%
Short Float 1.40%
Short Interest Ratio 0.85
Quarterly Return 9.02%
YTD Return -11.74%
Year Return 46.84%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy. 

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

Why Stone Energy Corp. (NYSE:SGY) Rocketed Today

Stone Energy Corp. (NYSE:SGY)

Stone Energy Corp. (NYSE:SGY) SGY shares closed Tuesday at $6.95 and opened today at $30.00 on the back of a 1-for-5.674558 reverse stock split. The shares quickly rose to $32.39 before retreating to the $27 handle. Prior to today’s price action, the independent oil and gas firm had not traded at these levels for about a year.

Yesterday Stone Energy Corp. (NYSE:SGY) announced that it had closed on its sale of its Appalachia properties to EQT Production Company for $527 million. The sale was forced by its plans to restructure itself and successfully come out of bankruptcy. Accordingly, yesterday the company also announced that it successfully completed the conditions precedent to emerging from chapter 11 reorganization. The reorganization includes pre-petition unsecured noteholders receiving common shares equivalent to 95% of the total outstanding shares. Pre-petition common shareholders are receiving 5% of the total outstanding shares. Additionally, the pre-petition stockholders are receiving warrants to purchase 3,529,412 new common shares, or approximately 3.529412 warrants for each 1 new common share.

The real news that sent shares skyrocketing was the release of the production report which revealed that Q4 production was about 12% better than Q3 production but a whopping 81% better than Q4 of the previous year. The market seems to have been surprised by the productivity yielded from the resumption of production at the company’s “Mary” field. Overall, Stone Energy Corp. (NYSE:SGY) reported Q4 revenues of $113 million which was about 2% better than analyst expectations.

This morning, Stone Energy Corp. (NYSE:SGY) shares were upgraded one level by both National Securities and Capital One. This follows a tough 2016 for the company when eight firms downgraded SGY shares. Prior to today, not a single analyst have the firm a rating better than “Hold”.

3/1/2017
Ticker Symbol SGY
Last Price a/o 12:30 PM EST  $                    27.83
Average Volume                1,390,000
Market Cap (mlns)  $                    37.25
Sales (mlns) $374.90
Shares Outstanding (mlns) 5.36
Share Float (mlns) 4.65
Shortable Yes
Optionable No
Inside Ownership 3.50%
Short Float 22.98%
Short Interest Ratio 0.77
Quarterly Return 63.92%
YTD Return -2.80%
Year Return -55.16%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy. 

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

Smart Sand Inc (NASDAQ:SND)

Southcross Energy Partners, L.P. (NYSE:SXE) Shares Pushing Back Against Analysts

Southcross Energy Partners, L.P. (NYSE:SXE)

Southcross Energy Partners, L.P. (NYSE:SXE) shares are up over 15% on heavy volumes. SXE ended yesterday’s trading at $2.26 but hit a high today of $2.74 – a 20% move. The uptick came in conjunction with volumes nearing 880k thousand shares – average daily volumes are under $200k.

Dallas, TX-based Southcross Energy Partners, L.P. (NYSE:SXE) is a master limited partnership that provides natural gas gathering, processing, treating, compression and transportation services and NGL fractionation and transportation services. It also sources, purchases, transports and sells natural gas and NGLs. Its assets are located in South Texas, Mississippi and Alabama and include two gas processing plants, one fractionation plant and approximately 3,100 miles of pipeline.

Southcross Energy Partners, L.P. (NYSE:SXE) did not fare well in 2015. SXE shares dropped from just over $20 to less than $1. In 2016, four notable financial firms downgraded the shares. However for the past quarter, SXE is up over 66%; for the past year SXE is up 276%; and for year-to-date SXE shares are up over 67%.

On January 9, 2017 Southcross Energy Partners, L.P. (NYSE:SXE) announced a change in leadership. Bruce A. Williamson, currently the Executive Chairman of Holdings and a director of the Southcross general partner, was been named President and Chief Executive Officer of both Holdings and Southcross’ general partner. Mr. Williamson has over 35 years of experience encompassing all facets of the energy value chain with Shell Oil Company, PanEnergy Corporation, Duke Energy, Dynegy, and Cleco Corporation.  He also brings a strong record of accomplishment as a CEO delivering shareholder value through transformation, restructuring, capital allocation, asset transactions and mergers.

Southcross Energy Partners, L.P. (NYSE:SXE) sales dropped from 2014 ($848.5 million) to 2015 ($698.5 million) but are still above levels experienced between 2011 and 2013. Earnings on a per share basis have been negative for the past five years with 2015 reporting a loss of $1.32.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/16/2017
Ticker Symbol SXE
Last Price a/o 3:22 PM EST  $                      2.66
Average Volume                    198,800
Market Cap (mlns)  $                  140.05
Sales (mlns) $554.80
Shares Outstanding (mlns) 61.97
Share Float (mlns) 10.27
Shortable Yes
Optionable Yes
Inside Ownership 0.50%
Short Float 1.40%
Short Interest Ratio 0.72
Quarterly Return 66.18%
YTD Return 67.41%
Year Return 276.67%

Eco-Stim Energy Solutions (Nasdaq: ESES) Shares Rocket on Massive Volumes

Eco-Stim Energy Solutions, Inc. – Nasdaq: ESES 

Houston, TX-based nano-cap Eco-Stim Energy Solutions Inc. shares are up over 85% on massive volumes. Shares of ESES, traded on the Nasdaq, normally have an average daily volume of just over 55,000 but in early morning trading over 1.4 million shares have traded hands. The catalyst appears to be an announcement that the Eco-Stim has executed a one-year contract, with an option for a second year, with a well-capitalized and established US exploration and production company to expand its pressure pumping operations into one of the fastest growing and most active oil and gas regions in Oklahoma. 

J. Chris Boswell, EcoStim’s President and Chief Executive Officer commented, “We have said for some time that we would not enter the U.S. pressure pumping market without some type of technology advantage, a contract and better market conditions. We now believe we have met these criteria and while the work contemplated under this contract is not expected to be executed solely with the TPU technology, we will utilize this equipment as part of the service offering. In addition, we believe that this region is poised for significant growth and this contract will position the Company in an attractive region with an anchor customer.” 

Eco-Stim’s reported sales were $800k in 2014 and $13.8 million in 2015. ESES shares have not yet produced a positive EPS for shareholders. However, losses have narrowed since 2012 when ESES reported a loss of $2.03 and in 20155 the loss was a smaller $1.36. Two firms follow Eco-Stim and both rate ESES as a “Strong Buy” with a consensus price target of $4. 

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

1/27/2017
Ticker Symbol ESES
Last Price a/o 9:56 AM EST  $                      1.47
Average Volume 55,120
Market Cap $11.4 million
Sales $8.8 million
Shares Outstanding 13.64 million
Share Float 13.18 million
Shortable Yes
Optionable No
Inside Ownership 5.80%
Short Float 0.23%
Short Interest Ratio 0.56
Quarterly Return -57.37%
YTD Return -15.62%
Year Return -64.00%
Smart Sand Inc (NASDAQ:SND)

Magellan Petroleum Corporation (Nasdaq: MPET) Up Despite Lawsuit Threat

Magellan Petroleum Corporation – Nasdaq: MPET

Despite the threat of a lawsuit being brought against Magellan Petroleum and its Board of Directors, shares have risen over the past two days. MPET, traded on the Nasdaq, On January 10 the shares began trading around $5, on January 11 the New York firm of Monteverde & Associates PC announced an investigation into Magellan, and MPET ended at $13.20 on January 12.

According to a press release, the investigation focuses on whether Magellan and/or its Board of Directors violated federal securities laws and/or breached their fiduciary duties to the Company’s stockholders by 1) failing to properly value the merger and 2) failing to disclose all material information in connection with the merger. Under the terms of the agreement, Tellurian Investments common stockholders will receive 1.30 shares of Magellan common stock for each share of Tellurian Investments common stock that they hold immediately prior to the effective time of the merger. The merger was valued at $207 million.

Magellan Petroleum has reported negative EPS since 2013 when it reported a loss of $2.83 EPS. In 2016 Magellan reported a narrower loss of $0.17. Magellan Petroleum has no reported sales for 2015 and 2016. Only one firm follows Magellan Petroleum and rates shares of MEPT as a “Hold”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

 

Update! ORIG Up 30% Since Covered by SNU

Shares of Ocean Rig UDW LLC are up almost 30% since we first covered the Nasdaq stock on December 6, 2016!

Here is our original story with updated data at the end:

The incoming Trump administration is believed to want to pursue an energy independent America policy. This will mean reversing many Obama-implemented regulations and asking Congress to pass laws that benefit the fossil fuel industry. One small cap Nasdaq stock that may benefit is Ocean Rig UDW LLC.

Ocean Rig UDW LLC, trading under Nasdaq ticker ORIG, is an international offshore drilling contractor providing oilfield services for offshore oil and gas exploration, development, and production drilling, and specializing in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. 

The company owns and operates 13 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 11 ultra deepwater drillships, two of which are scheduled to be delivered to the Company during 2017 and one in 2018.

However, with the incoming Trump administration and the new OPEC deal designed to regulate output, it may be time to consider another look at this former high-flier. In 2014, ORIG routinely traded over $15 with and EPS of $1.97. ORIG now trades under $2. Sales increased from $700 million in 2011 to $1.82 billion in 2014. In 2015, Ocean Rig UDW LLC reported sales of just $1.75 billion with earnings per share of $0.57.

Zacks research has recently given it a #1 rating based on their proprietary analytics. This is important because no investment bank analysts have yet upgraded their recommendations for ORIG. Should the investment bank analysts follow suit, we may see a price target more than double its current trading price of below $2.00. Prior to OPEC flooding the market ORIG was given price targets around $30 by bank analysts.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock.

Ticker Symbol ORIG
Last Price a/o 12:45 EST  $               2.60
Average Volume 2.7 million
Market Cap $160.2 million
Sales 1.87 Billion
Shares Outstanding 72.2 million
Share Float 72.2 million
Shortable Yes
Optionable Yes
Inside Ownership
Short Float 15.80%
Short Interest Ratio 4.16
Quarterly Return 192.11%
YTD Return 36.20%
Year Return 33.73%