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%

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%