Apache Authors: Elizabeth White, Pat Romanski, Liz McMillan, Christopher Harrold, Janakiram MSV

News Feed Item

The Zacks Analyst Blog Highlights: BP, Chesapeake Energy, Apache, Forest Oil and EOG Resources

CHICAGO, March 5, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the BP plc (NYSE:BP-Free Report), Chesapeake Energy Corp. (NYSE:CHK-Free Report), Apache Corp. (NYSE:APA-Free Report), Forest Oil Corp. (NYSE:FST-Free Report) and EOG Resources Inc. (NYSE:EOG-Free Report).

Zacks Investment Research, Inc., www.zacks.com.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday's Analyst Blog:

Oil & Gas Stock Roundup

Crude prices remained flat last week, as encouraging economic data was offset by a negative Q4 GDP revision and a climb in distillate inventories, while natural gas declined by a hefty 25% amid a bearish supply report and predictions of warmer weather.

Among the newsmakers, British major BP plc (NYSE:BP-Free Report) lost its bid to block seafood claims payments associated with the 2010 Gulf of Mexico oil spill settlement.     

Crude Oil:

Crude prices got a boost from upbeat U.S. manufacturing and consumer-spending reports that painted a positive picture of the economy. This has fueled hopes for robust fuel and energy demand in the world's biggest oil consumer. The commodity got some more support from the renewed political tensions in Ukraine that rattled global energy markets.

However, the bulls were offset by lower-than-expected fourth quarter GDP growth, concerns about an economic slowdown in China and forecasts for warmer weather conditions over much of the country. Crude prices were also pressured by a surprise rise in distillate stockpiles.  

As a result of these factors, by close of trade on Friday, West Texas Intermediate (WTI) oil settled at around $102.5 per barrel, essentially flat for the week. 

Natural Gas:

Natural gas crashed last week from its highest level in 5 years on the back of a tepid decrease in supplies and forecasts of a break in cold weather conditions.

The EIA's weekly inventory release showed that natural gas stockpiles held in underground storage in the lower 48 states fell by 95 billion cubic feet (Bcf) for the week ended Feb 21, below the guided range (of 102–106 Bcf drawdown). Moreover, the decrease was considerably lower than both last year's withdrawal of 165 Bcf and the 5-year (2009–2013) average reduction of 125 Bcf for the reported week.

To make things worse, milder weather forecasts – in bulk of the country over the next few days – are likely to limit natural gas' demand for heating. Additionally, with the commodity's price topping $6 recently, many utilities may switch to coal from the more costly natural gas, denting its prospects further.

Influenced by these factors, natural gas prices ended Friday at $4.61 per million Btu (MMBtu), down 25.0% over the week.

Energy Week That Was:

The week's energy coverage was dominated by the following news:

BP's Claim to Delay Spill Payments Rejected

Oil giant BP plc's request to a federal judge to delay oil spill compensation payments to seafood workers was denied. BP had appealed to U.S. District Judge Carl Barbier to put on hold the second phase of payments under the $2.3 billion Seafood Compensation Fund.

Per the lawsuit, alleged Texas lawyer Mikal Watts fraudulently claimed to represent 40,000 deckhands in the seafood compensation program, apart from using fake Social Security numbers and other fake documents that calls for prompt suspension of all payments. However, the judge was unconvinced and commented it would be several months before a second phase of payment is distributed if the seafood compensation plan is rejected at present.

Chesapeake Earnings Miss, Mulls Rig Unit Future

Natural gas producer Chesapeake Energy Corp. (NYSE:CHK-Free Report) slid 5% following fourth quarter earnings that miss analyst expectations by a wide margin, as it grapples with high spending in the face of constrained production. To assuage investors' concerns and raise much-needed cash, the company is considering plans to spin off or sell its oilfield services unit, Chesapeake Oilfield Services.

Apache to Focus '14 E&P on North America

U.S. energy firm Apache Corp. (NYSE:APA-Free Report) announced that it plans to invest $8.5 billion in exploration and production activities in 2014. A major chunk (about 64%) of this investment will be focused on onshore North America. However, this capex is considerably lower than the $10.0 billion spent last year on account of a smaller asset base.

Apache expects North America onshore liquids production to grow 15–18% in 2014. This will be a significant growth factor for the company considering the fact that the region's onshore assets comprise nearly 60% of Apache's total production. The company also projects a two-figure global liquids expansion and 5–8% global oil and gas production growth in 2014.

Forest Oil Plunges on Disappointing Q4

Shares of Denver-based oil and gas company Forest Oil Corp. (NYSE:FST-Free Report) plummeted almost 38% on Wednesday following a disappointing earnings announcement. The Hamilton, Bermuda-based company's underperformance was primarily due to lower volumes and realized prices. To make matters worse, Forest announced a significant decline in its year-end estimated proved reserves.

Stellar Result for EOG Resources

Independent energy explorer EOG Resources Inc. (NYSE:EOG-Free Report) delivered stellar fourth quarter results on the back of a striking improvement in its crude and liquids production. During the Oct-Dec period, EOG's total volume expanded 16.7% from the year-earlier level to 48.9 million barrels of oil equivalent, or 531.8 thousand barrels of oil equivalent per day. Crude oil and condensate production was 244.3 thousand barrels per day, up approximately 50.2% from the year-ago level.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on BP - FREE

Get the full Report on CHK - FREE

Get the full Report on APA - FREE

Get the full Report on FST - FREE

Get the full Report on EOG - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
The challenges of aggregating data from consumer-oriented devices, such as wearable technologies and smart thermostats, are fairly well-understood. However, there are a new set of challenges for IoT devices that generate megabytes or gigabytes of data per second. Certainly, the infrastructure will have to change, as those volumes of data will likely overwhelm the available bandwidth for aggregating the data into a central repository. Ochandarena discusses a whole new way to think about your next...
CloudEXPO | DevOpsSUMMIT | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
All in Mobile is a place where we continually maximize their impact by fostering understanding, empathy, insights, creativity and joy. They believe that a truly useful and desirable mobile app doesn't need the brightest idea or the most advanced technology. A great product begins with understanding people. It's easy to think that customers will love your app, but can you justify it? They make sure your final app is something that users truly want and need. The only way to do this is by ...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...
DXWorldEXPO LLC announced today that Big Data Federation to Exhibit at the 22nd International CloudEXPO, colocated with DevOpsSUMMIT and DXWorldEXPO, November 12-13, 2018 in New York City. Big Data Federation, Inc. develops and applies artificial intelligence to predict financial and economic events that matter. The company uncovers patterns and precise drivers of performance and outcomes with the aid of machine-learning algorithms, big data, and fundamental analysis. Their products are deployed...
Cell networks have the advantage of long-range communications, reaching an estimated 90% of the world. But cell networks such as 2G, 3G and LTE consume lots of power and were designed for connecting people. They are not optimized for low- or battery-powered devices or for IoT applications with infrequently transmitted data. Cell IoT modules that support narrow-band IoT and 4G cell networks will enable cell connectivity, device management, and app enablement for low-power wide-area network IoT. B...
The hierarchical architecture that distributes "compute" within the network specially at the edge can enable new services by harnessing emerging technologies. But Edge-Compute comes at increased cost that needs to be managed and potentially augmented by creative architecture solutions as there will always a catching-up with the capacity demands. Processing power in smartphones has enhanced YoY and there is increasingly spare compute capacity that can be potentially pooled. Uber has successfully ...
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...