Investor Relations

Nasdaq Advisory Services Energy Commentary May 5, 2016

Thursday, May 5, 2016

SECTOR COMMENTARY

The energy space is set for a higher opening following two straight days of heavy losses as crude oil prices jump more than 4%. Earnings headlines were dominated by the many small and mid-cap E&Ps that reported results, which showed losses that were mainly in-line with expectations while production figures continued to surprise to the upside.

Oil prices rallied as a huge wildfire near Canada's oil sands region and escalating tensions in Libya caused the market to price in supply disruptions. The volume of the decline in Canada remains unclear, but some pipelines in the region have already been shut as a precaution, disrupting output at several facilities. Further support for oil prices came from the EIA data showing U.S. production continues to fall, with the latest official figures showing a decline by over 8 percent since mid-2015 to 8.825 million bpd. Additionally, Iran signaled that they were ready to join when OPEC members adopt a quota on oil production, potentially within 1-2 months, but also noted continued acceleration in production.

Natural gas futures are higher by 1% ahead of the EIA storage report with consensus showing a build of +66 Bcf, roughly in-line with the 5 year average of +64 Bcf.

U.S. INTEGRATEDS

  • Reuters - Chevron appointed a new chief executive for its Australian operations after starting production at its $54 billion Gorgon liquefied natural gas project, which last month ran into trouble after shipping one cargo.
  • Reuters - Exxon Mobil and FuelCell Energy announced an agreement to pursue novel technology in power plant carbon dioxide capture through a new application of carbonate fuel cells, which could substantially reduce costs and lead to a more economical pathway toward large-scale application globally.
  • (Late Wednesday) Reuters - Exxon Mobil has cut back gasoline production at its 560,500 barrel-per-day Baytown, Texas refinery. The refinery's 90,000-bpd Fluidic Catalytic Cracking Unit 2 and 125,000-bpd Fluidic Catalytic Cracking Unit 3 have reduced production because of a malfunction on the Light Ends Unit.

INTERNATIONAL INTEGRATEDS

Reuters - Repsol on Thursday posted a 38 percent fall in first quarter adjusted net profit from a year ago to 572 million euros, hit by low crude prices which offset a solid activity in the refining business. Europe's fifth biggest oil company by market value also said refining margins were $6.3 per barrel in the first quarter, down from $7.3 in the fourth quarter of 2015. Production was worth 714,000 barrels per day in the first three months of the year, up from 697,000 barrels per day in the October-December period.

CAnadian INTEGRATEDS

  • (Late Wednesday) Reuters - Husky Energy reduced Sunrise oil sands production by 20,000 bpd after diluent pipeline to project shut down because of wildfire.
  • TD Securities upgraded Imperial Oil to ‘Buy’ from ‘Hold.’

U.S. E&PS

  • APA reported 1Q’16 EPS of ($0.40) versus Thomson Reuters I/B/E/S estimate of ($0.89).
  • AREX reported 1Q’16 EPS of ($0.32) versus Thomson Reuters I/B/E/S estimate of ($0.32).
  • CHK reported 1Q’16 EPS of ($0.10) versus Thomson Reuters I/B/E/S estimate of ($0.10).
  • CLR reported 1Q’16 EPS of ($0.41) versus Thomson Reuters I/B/E/S estimate of ($0.37).
  • CPE reported 1Q’16 EPS of ($0.00) versus Thomson Reuters I/B/E/S estimate of ($0.03).
  • CWEI reported 1Q’16 EPS of ($2.53) versus Thomson Reuters I/B/E/S estimate of ($2.39).
  • CXO reported 1Q’16 EPS of ($0.05) versus Thomson Reuters I/B/E/S estimate of $0.00.
  • DNR reported 1Q’16 EPS of ($0.03) versus Thomson Reuters I/B/E/S estimate of ($0.07).
  • ECR reported 1Q’16 EPS of ($0.18) versus Thomson Reuters I/B/E/S estimate of ($0.18).
  • EPE reported 1Q’16 EPS of $0.19 versus Thomson Reuters I/B/E/S estimate of $0.01.
  • GPOR reported 1Q’16 EPS of $0.14 versus Thomson Reuters I/B/E/S estimate of $0.09.
  • LPI reported 1Q’16 EPS of $0.08 versus Thomson Reuters I/B/E/S estimate of $0.06.
  • MRO reported 1Q’16 EPS of ($0.43) versus Thomson Reuters I/B/E/S estimate of ($0.46).
  • MUR reported 1Q’16 EPS of ($0.66) versus Thomson Reuters I/B/E/S estimate of ($0.69).
  • OXY reported 1Q’16 EPS of ($0.56) versus Thomson Reuters I/B/E/S estimate of ($0.40).
  • RICE reported 1Q’16 EPS of $0.02 versus Thomson Reuters I/B/E/S estimate of ($0.09).
  • SGY reported 1Q’16 EPS of ($0.79) versus Thomson Reuters I/B/E/S estimate of ($0.76).
  • WPX reported 1Q’16 EPS of ($0.21) versus Thomson Reuters I/B/E/S estimate of ($0.19).
  • WTI reported 1Q’16 EPS of ($0.95) versus Thomson Reuters I/B/E/S estimate of ($0.90).
  • XEC reported 1Q’16 EPS of ($0.40) versus Thomson Reuters I/B/E/S estimate of ($0.38).

  • Press Release - Apache reported a net loss of $489 million, or $1.29 per diluted common share, which included noncash, after-tax ceiling test write-downs of $325 million driven primarily by low commodity prices. When adjusted for these and certain additional items that impact the comparability of results, Apache's first-quarter net loss totaled $152 million, or $0.40 per share. Net cash provided by continuing operating activities was approximately $276 million. Cash flow from continuing operations, before changes in operating assets and liabilities, was $435 million, and adjusted EBITDA was $541 million.
  • (Late Wednesday) Press Release - Approach Resources reported net loss for first quarter 2016 was $13.7 million, or $0.33 per diluted share, on revenues of $17.6 million. Net loss for first quarter 2016 also included an unrealized loss on commodity derivatives of $1.0 million and a realized gain on commodity derivatives of $3.5 million. Excluding the unrealized loss on commodity derivatives, adjusted net loss for first quarter 2016 was $13.0 million, or $0.32 per diluted share. EBITDAX for first quarter 2016 was $8.7 million, or $0.21 per diluted share. Its production for first quarter 2016 totaled 1,165 MBoe, made up of 31% oil, 31% NGLs and 38% natural gas.
  • (Late Wednesday) Press Release - Cabot Oil & Gas announced that its Board of Directors declared a regular dividend of two cents per share on the Company's common stock. The dividend will be paid May 31, 2016 to all shareholders of record as of the close of business May 16, 2016.
  • (Late Wednesday) Press Release - Callon Petroleum reported total revenues including cash-settled derivatives of $38.4 million, comprised of oil revenues of $35.0 million, and natural gas revenues of $3.4 million including the $7.7 million impact of settled derivative contracts. Average daily production for the quarter was 12,440 BOE/d compared to average daily production of 10,598 BOE/d in the fourth quarter of 2015.
  • Press Release - Newfield Exploration signed a definitive purchase and sale agreement with a subsidiary of Chesapeake Energy to acquire approximately 42,000 net acres in the Anadarko Basin STACK play for $470 million. The transaction will have an effective date of April 1, 2016 and closing is subject to customary adjustments. Newfield expects to fund the transaction with cash on hand and closing is planned for the second quarter of 2016.
  • Press Release - Chesapeake Energy reported a net loss available to common stockholders of $964 million, or $1.44 per fully diluted share. The primary driver of the net loss was a noncash impairment of the carrying value of Chesapeake's oil and natural gas properties of approximately $853 million, largely resulting from decreases in the trailing 12-month average first-day-of-the-month oil and natural gas prices as of March 31, 2016, compared to December 31, 2015. Adjusting for items that are typically excluded by securities analysts, including the impairment discussed above, the 2016 first quarter adjusted net loss available to common stockholders was $120 million, or $0.10 per fully diluted share.
  • (Late Wednesday) Press Release - Cimarex Energy reported a first quarter 2016 net loss of $186.1 million, or $2.00 per share, primarily the result of a non-cash charge related to the impairment of oil and gas properties. The adjusted first quarter net loss was $36.9 million, or $0.40 per share. First quarter 2016 adjusted cash flow from operations was $81.6 million versus $186.9 million a year ago.
  • (Late Wednesday) Press Release - Clayton Williams Energy reported a net loss for the first quarter of 2016 of $35.3 million, or $2.90 per share, as compared to a net loss of $18.2 million, or $1.50 per share, for the first quarter of 2015. Adjusted net loss1 for 1Q16 was $30.7 million, or $2.53 per share, as compared to adjusted net loss1 of $20.5 million, or $1.69 per share, for 1Q15. Cash flow from operations for 1Q16 was $0.5 million as compared to $20.1 million for 1Q15. EBITDAX2 for 1Q16 was $9.5 million as compared to $26.1 million for 1Q15.
  • (Late Wednesday) Press Release - Concho Resources reported net loss for the first quarter of 2016 was $1.0 billion, or $7.95 per diluted share, compared to net income of $7.5 million, or $0.06 per diluted share, for the first quarter of 2015. Adjusted net loss, which excludes non-cash and unusual items, for the first quarter of 2016 was $7.0 million, or $0.05 per diluted share, compared with adjusted net income of $42.1 million, or $0.36 per diluted share, for the first quarter of 2015. EBITDAX for the first quarter of 2016 totaled $382.2 million, compared to $407.5 million for the first quarter of 2015.
  • Raymond James upgraded Continental Resources to ‘Strong Buy’ from ‘Buy.’
  • (Late Wednesday) Press Release - Continental Resources reported a net loss of $198.3 million, or $0.54 per diluted share, for the quarter ended March 31, 2016. Adjusted net loss for first quarter 2016 was $150.5 million, or $0.41 per diluted share.
  • Press Release - Denbury Resources announced an adjusted net loss of $9 million for the first quarter of 2016, or $0.03 per diluted share. On a GAAP basis, the Company recorded a net loss of $185 million, or $0.53 per diluted share. Adjusted net loss for the first quarter of 2016 differs from the GAAP measure of net loss primarily due to the exclusion of (1) a $256 million write-down of oil and natural gas properties, (2) a $95 million gain on debt extinguishment, and (3) a $95 million loss on noncash fair value adjustments on commodity derivatives.
  • (Late Wednesday) Press Release - Eclipse Resources reported revenues for the first quarter of 2016 totaled $49.6 million, representing a 13% increase as compared to revenues for the first quarter of 2015. Adjusted Revenue, which includes the impact of cash settled derivatives, and excludes brokered natural gas and marketing revenue, totaled $58.9 million, representing a 12% increase over Adjusted Revenue of $52.4 million in the first quarter of 2015. The net loss for the first quarter of 2016 was $40.7 million, or $0.18 per share. Adjusted EBITDAX was $25.3 million for the first quarter of 2016, or $0.11 per share.
  • (Late Wednesday) Press Release - EP Energy reported $0.19 Adjusted EPS and $0.80 Discretionary Cash Flow Per Share for the first quarter of 2016. Adjusted EBITDAX for the first quarter of 2016 was $278 million, down from $366 million in the first quarter of 2015, due primarily to lower oil production volumes and lower realized pricing, partially offset by lower operating costs. Total adjusted cash operating costs for the quarter ended March 31, 2016 were $8.71 per Boe, well below $11.44 per Boe for the first quarter of 2015, due primarily to lower general and administrative costs, lower production taxes, and lower lease operating costs related to continued operational efficiencies and cost reductions.
  • (Late Wednesday) Press Release - Gulfport Energy reported its first quarter of 2016 net loss of $242.3 million, or $2.17 per diluted share, on oil and natural gas revenues of $157.0 million. For the first quarter of 2016, EBITDA was $58.3 million and cash flow from operating activities before changes in operating assets and liabilities was $83.2 million. Gulfport`s net daily production for the first quarter of 2016 averaged approximately 692.2 MMcfe per day. For the first quarter of 2016, Gulfport`s net daily production mix was comprised of approximately 85% natural gas, 9% natural gas liquids and 6% oil.
  • (Late Wednesday) Press Release - Laredo Petroleum announced its 2016 first-quarter results, reporting a net loss attributable to common stockholders of $180.4 million, or $0.85 per diluted share, which includes a pre-tax, non-cash full cost ceiling impairment charge of $161.1 million. Adjusted Net Income, a non-GAAP financial measure, for the first quarter of 2016 was $17.3 million, or $0.08 per diluted share. Adjusted EBITDA, a non-GAAP financial measure, for the first quarter of 2016 was $96.1 million.
  • (Late Wednesday) Press Release - Marathon Oil reported a first quarter 2016 adjusted net loss of $317 million, or $0.43 per diluted share, excluding the impact of certain items not typically represented in analysts' earnings estimates and that would otherwise affect comparability of results. The reported net loss was $407 million, or $0.56 per diluted share.
  • (Late Wednesday) Press Release - Murphy Oil announced its preliminary financial and operating results for the first quarter ended March 31, 2016, including a net loss of $198.8 million, or $1.16 per diluted share, during the quarter. The net loss during the first quarter includes a non-cash impairment of oil and natural gas properties of $95.1 million, or $68.9 million net of tax, and restructuring charges of $9.3 million, or $6.2 million net of tax.
  • Press Release - CONE Midstream Partners announced net income of $24.8 million as compared to $14.2 million and a verage daily throughput volumes of 850 billion Btu per day as
  • compared to 549 BBtu/d. Its adjusted EBITDA of $27.7 million as compared to $16.2 million. The company’s cash distribution coverage of 1.69x on an as declared basis. CONE Midstream Partners is a master limited partnership formed by CONSOL Energy and Noble Energy.
  • Press Release - Occidental Petroleum announced that operating cash flow from continuing operations before working capital for the first quarter of 2016 was more than $820 million, with total cash on the balance sheet at March 31, 2016, of $3.2 billion. Reported income was $78 million or $0.10 per diluted share for the first quarter of 2016. Core results for the first quarter of 2016 were a loss of $426 million or $0.56 per diluted share.
  • (Late Wednesday) Press Release - Rice Midstream Partners reported first quarter average throughput of 835 MDth/d, a 50% increase over the prior year quarter and a 19% increase relative to fourth quarter 2015. It increased Adjusted EBITDA by 239% over the prior year quarter to $42.2 million and by 122% as compared to fourth quarter 2015. The company’s distributable cash flow of $38.4 million for the first quarter, resulting in DCF coverage ratio of 2.58x and raised first quarter distribution to $0.2100 per common unit, an increase of 12% over the prior year quarter and 7% relative to fourth quarter 2015. Rice Midstream Partners is a fee-based, growth-oriented limited partnership formed by Rice Energy.
  • (Late Wednesday) Press Release - Rice Energy reported its first quarter net production averaged 675 MMcfe/d, a 53% increase over the prior year quarter and an 8% increase relative to fourth quarter 2015. It also increased Adjusted EBITDAX by 30% over the prior year quarter to $109 million. It also completed primary equity offering of 20.0 million shares providing $312 million net proceeds to fund potential Greene County acreage acquisition and for general corporate purposes.
  • Mitsubishi UFJ Securities downgraded SM Energy to ‘Underweight’ from ‘Neutral.’
  • (Late Wednesday) Press Release - Stone Energy reported first quarter of 2016 adjusted net loss of $44.1 million, or $0.79 per share, before impairment charges of $129.2 million. After impairment charges, the reported net loss was $188.8 million, or $3.39 per share, on oil and gas revenue of $80.2 million, compared to a net loss of $327.4 million, or $5.93 per share, on oil and gas revenue of $148.2 million in the first quarter of 2015. Discretionary cash flow totaled $28.1 million during the first quarter of 2016, as compared to $85.4 million during the first quarter of 2015.
  • (Late Wednesday) Press Release - W&T Offshore reported revenues for the first quarter of 2016 were $77.7 million compared to $127.9 million in the first quarter of 2015. The decrease in revenues was primarily due to the steep decline in commodity prices, combined with lower overall production. Our average realized crude oil sales price was down $16.31 per barrel, or 37.9%, between the two quarters.
  • (Late Wednesday) Press Release - Williams announced first quarter 2016 adjusted EBITDA of $1.056 billion, a $138 million, or 15 percent, increase from first quarter 2015. The increase was driven primarily by Williams Partners` adjusted EBITDA, which increased $143 million for the quarter. Cash distributions for the third and fourth quarters of 2015 and the first quarter of 2016 have been increased by $209 million, $209 million, and $10 million, respectively, in order to exclude the impact of the IDR waiver associated with the WPZ merger termination fee from the determination of coverage ratios.
  • IBERIA Capital Partners upgraded WPX Energy to ‘Outperform’ from ‘Sector Perform.’
  • (Late Wednesday) Press Release - WPX Energy reported an unaudited first-quarter 2016 net loss attributable to common shareholders of $17 million, or a loss of $0.06 per share on a diluted basis, including a $198 million gain on the sale of assets. The adjusted net loss from continuing operations in the first quarter was $59 million, or a loss of $0.21 per share. Adjusted EBITDAX for the first quarter was $131 million.

CANADIAN E&PS

  • CNQ-T reported 1Q’16 EPS of (C$0.50) versus Thomson Reuters I/B/E/S estimate of (C$0.57).
  • LTS-T reported 1Q’16 EPS of C$0.14 versus Thomson Reuters I/B/E/S estimate of C$0.00.

  • Press Release - Canadian Natural Resources reported a net loss of $105 million compared to a net loss of $252 million in Q1/15 and net earnings of $131 million in Q4/15. Adjusted net loss from operations was $543 million in Q1/16 compared to adjusted net earnings of $21 million in Q1/15 and adjusted net loss of $49 million in Q4/15. Changes in adjusted net earnings primarily reflect the changes in cash flow from operations. The company also declared a quarterly cash dividend on its common shares of C$0.23 per share payable on July 1, 2016.
  • FirstEnergy upgraded Encana to ‘Market Perform’ from ‘Underperform.’
  • (Late Wednesday) Press Release - Lightstream Resources reported first quarter average production was 26,350 boepd, a decrease of 7% from the previous quarter. The decline is mainly attributable to third party facility restrictions on non-operated production and reduced development capital spending, resulting in well declines exceeding new production additions. This quarter, benchmark oil prices reached their lowest point since this commodity cycle downturn began in 2014, resulting in an operating netback of $11.29/boe, prior to commodity hedges, a 40% decrease from the previous quarter. Including realized gains on commodity hedging contracts, our netback was $13.74/boe. Its funds flow from operations resulted in a deficit of $11 million, compared to positive funds flow of $30 million in the fourth quarter of 2015. This deficit is primarily due to lower operating netback, lower production volumes and ongoing interest expense. Adjusted EBITDA for the first quarter was $23 million.
  • (Late Wednesday) Press Release - Whitecap Resources Inc. is pleased to report its operating and unaudited financial results for the three months ended March 31, 2016. In the first quarter of 2016, Whitecap continued to demonstrate both strong operational performance and financial discipline. Record production of 43,024 boe/d was achieved on capital spending of $45.2 million which was within our forecast of 43,000 boe/d and at the low end of our anticipated capital spending of $45 to $55 million, respectively.

oil services

  • HOS reported 1Q’16 EPS of ($0.21) versus Thomson Reuters I/B/E/S estimate of ($0.29).
  • IO reported 1Q’16 EPS of ($3.30) versus Thomson Reuters I/B/E/S estimate of ($1.20).
  • TCW-T reported 1Q’16 EPS of (C$0.21) versus Thomson Reuters I/B/E/S estimate of (C$0.33).
  • WFT reported 1Q’16 EPS of ($0.29) versus Thomson Reuters I/B/E/S estimate of ($0.26).

  • (Late Wednesday) Press Release - Hornbeck Offshore Services, Inc. announced results for the first quarter ended March 31, 2016. The Company recorded a net loss for the first quarter of 2016 of $(7.5) million, or $(0.21) per diluted share, compared to net income of $35.9 million, or $0.99 per diluted share, for the year-ago quarter; and a net loss of $(2.7) million, or $(0.07) per diluted share, for the fourth quarter of 2015.
  • (Late Wednesday) Press Release - ION Geophysical Corporation reported a first quarter 2016 net loss of $35.0 million, or $(3.30) per share, on revenues of $22.7 million, compared to a net loss of $55.3 million, or $(5.04) per share, on revenues of $40.6 million in first quarter 2015.
  • (Late Wednesday) Press Release - Trican Well Service Ltd. reported consolidated revenue from continuing operations for the first quarter of 2016 was $111.8 million, a decrease of 34% compared to the fourth quarter of 2015. The adjusted loss for the period was $31.8 million and adjusted loss per share was $0.21 compared to an adjusted loss of $63.4 million and adjusted loss per share of $0.43 in the fourth quarter of 2015.
  • (Late Wednesday) Press Release - Weatherford International plc reported a net loss before charges and credits of $239 million ($0.29 net loss per share before charges) on revenues of $1.59 billion for the first quarter of 2016. GAAP net loss for the first quarter of 2016 was $498 million, or a net loss of $0.61 per share.

DRILLERS

  • RIG reported 1Q’16 EPS of $0.69 versus Thomson Reuters I/B/E/S estimate of $0.29.

  • (Late Wednesday) Press Release - Transocean reported net income attributable to controlling interest of $249 million, $0.68 per diluted share, for the three months ended March 31, 2016. First quarter 2016 results included net unfavorable items of $5 million, $0.01 per diluted share.

REFINERS

  • ALJ reported 1Q’16 EPS of ($0.42) versus Thomson Reuters I/B/E/S estimate of ($0.34).
  • CLMT reported 1Q’16 EPU of ($0.87) versus Thomson Reuters I/B/E/S estimate of ($0.92).
  • TSO reported 1Q’16 EPS of $1.19 versus Thomson Reuters I/B/E/S estimate of $1.02.

  • (Late Wednesday) Press Release - Alon USA Energy announced results for the first quarter of 2016. Net loss available to stockholders for the first quarter of 2016 was $(35.5) million, or $(0.51) per share, compared to net income available to stockholders of $26.9 million, or $0.39 per share, for the same period last year. Excluding special items, Alon recorded net loss available to stockholders of $(29.2) million , or $(0.42) per share, for the first quarter of 2016 , compared to net income available to stockholders of $20.9 million , or $0.30 per share, for the same period last year.
  • D.A. Davidson upgraded Calumet Specialty Products Partners to ‘Neutral’ from ‘Underperform.’
  • Press Release - Calumet Specialty Products Partners reported the following for the first quarter of 2016: (i) partnership anticipates total capital expenditures between $125.0 million and $150.0 million; (ii) to reduce costs, co made series of targeted workforce reductions: (iii) Qtrly net loss per unit $0.87; and (iv) Qtrly sales $713.0 million versus $1,018.6 million.
  • (Late Wednesday) Press Release - Phillips 66 Partners announced that it has reached agreement with Phillips 66 to acquire the Standish Pipeline and the remaining 75 percent interest in Phillips 66 Sweeny Frac, which owns the newly constructed Sweeny Fractionator One and Clemens Caverns storage facility, for total consideration of $775 million. The Partnership previously acquired a 25 percent interest in Sweeny Frac in March 2016. The Partnership expects to fund this acquisition with a combination of newly issued PSXP units to Phillips 66 and the assumption of notes payable to Phillips 66. The acquisition is expected to be immediately accretive to the Partnership and its unitholders and is anticipated to close later this month.
  • (Late Wednesday) Press Release - Tesoro reported first quarter net earnings from continuing operations of $58 million, or $0.48 per diluted share compared to net earnings from continuing operations of $145 million, or $1.15 per diluted share a year ago. First quarter 2016 earnings include a pre-tax charge of $147 million related to a lower of cost or market inventory adjustment, as well as a pre-tax benefit of $6 million for a legal settlement in Logistics. Earnings for the first quarter of 2015 included a pre-tax benefit of $42 million related to the LCM adjustment. Excluding these items, earnings from continuing operations for 2016 were $144 million or $1.19 per diluted share and $124 million or $0.98 per diluted share in the first quarter of 2015. Adjusted EBITDA for the first quarter of 2016 was $541 million compared to $489 million last year. The board of directors also approved a regular quarterly dividend of $0.50 per share payable on June 15, 2016, to all holders of record as of May 31, 2016.

mlpS

  • (Late Wednesday) Press Release - DCP Midstream Partners reported its distributable cash flow was $165 million in the first quarter of 2016, up 18 percent from the first quarter of 2015, resulting in a distribution coverage ratio of 1.36 times in the first quarter of 2016. The company’s adjusted EBITDA was $173 million in the first quarter of 2016, up 7 percent from $162 million in the first quarter of 2015. The Partnership announced a quarterly distribution of $0.78 per limited partner unit. This distribution remains unchanged from the previous quarter and the first quarter of 2015.
  • Press Release - Sunoco reported adjusted EBITDA (1) for the quarter totaled $158.9 million, compared with $128.2 million in the first quarter of 2015. The favorable year-over-year comparison primarily reflects stronger retail and wholesale fuel margins as well as increased merchandise sales and merchandise margins. Energy Transfer Equity owns Sunoco.
  • (Late Wednesday) Press Release - Energy Transfer Equity reported its distributable cash flow, as adjusted, for the three months ended March 31, 2016 was $349 million compared to $321 million for the three months ended March 31, 2015, an increase of $28 million. Distributable Cash Flow, as adjusted, per unit was $0.33 for the three months ended March 31, 2016, an increase of 10% compared to the three months ended March 31, 2015. ETE`s net income attributable to partners was $312 million for the three months ended March 31, 2016 compared to $284 million for the three months ended March 31, 2015, an increase of $28 million. ETE also announced a $0.285 distribution per ETE common unit for the quarter ended March 31, 2016, or $1.14 per unit on an annualized basis.
  • (Late Wednesday) Press Release - Energy Transfer Partners reported its financial results for the quarter ended March 31, 2016. Adjusted EBITDA for ETP for the three months ended March 31, 2016 totaled $1.41 billion, an increase of $46 million compared to the same period last year. Distributable Cash Flow attributable to the partners of ETP, as adjusted, for the three months ended March 31, 2016 totaled $793 million, a decrease of $51 million compared to the same period last year. Net income for the three months ended March 31, 2016 was $376 million, an increase of $108 million compared to the same period last year. ETP announced a quarterly distribution of $1.055 per unit on ETP Common Units for the quarter ended March 31, 2016.
  • RBC Capital Markets downgraded Gibson Energy to ‘Sector Perform’ from ‘Outperform.’
  • Stifel Nicolaus downgraded Magellan Midstream Partners to ‘Hold’ from ‘Buy.’
  • Credit Suisse downgraded Oneok Partners to ‘Neutral’ from ‘Underperform.’
  • Evercore suspended coverage of Phillips 66 Partners.
  • (Late Wednesday) Press Release - Phillips 66 Partners announced the pricing of its upsized underwritten public offering of 11,000,000 common units representing limited partner interests in the Partnership at $52.40 per common unit. In connection with the offering, the Partnership has granted the underwriters a 30-day option to purchase up to an additional 1,650,000 common units. This offering is expected to close on May 10, 2016, subject to customary closing conditions.
  • (Late Wednesday) Press Release - Phillips 66 Partners announced that it has reached agreement with Phillips 66 to acquire the Standish Pipeline and the remaining 75 percent interest in Phillips 66 Sweeny Frac, which owns the newly constructed Sweeny Fractionator One and Clemens Caverns storage facility, for total consideration of $775 million. The Partnership previously acquired a 25 percent interest in Sweeny Frac in March 2016. The Partnership expects to fund this acquisition with a combination of newly issued PSXP units to Phillips 66 and the assumption of notes payable to Phillips 66. The acquisition is expected to be immediately accretive to the Partnership and its unitholders and is anticipated to close later this month.
  • (Late Wednesday) Press Release - Plains All American Pipeline reported first-quarter adjusted EBITDA of $621 million, which was approximately $51 million or 9% above the midpoint of its first-quarter guidance. PAA ended the first quarter of 2016 with $3.8 billion of committed liquidity and an improved balance sheet as a result of the $1.6 billion preferred equity offering completed in January.
  • Press Release - Shell Midstream Partners reported net income attributable to the partnership of $55.3 million for the first quarter of 2016, which equates to $0.36 per common limited partner unit. Shell Midstream Partners also generated adjusted earnings before interest, income taxes, depreciation and amortization attributable to the partnership of $65.5 million and cash available for distribution of $59.7 million.
  • (Late Wednesday) Press Release - Spectra Energy Partners reported first quarter 2016 distributable cash flow of $371 million, compared with $354 million in the prior-year quarter. Distributions per limited partner unit for first quarter 2016 were $0.65125, compared with $0.60125 per limited partner unit in first quarter 2015.
  • (Late Wednesday) Press Release - Sunoco Logistics Partners announced results for the first quarter 2016. Adjusted EBITDA for the three months ended March 31, 2016 was $349 million, a $128 million increase compared to the first quarter 2015. The first quarter 2016 included approximately $52 million related to favorable LIFO inventory accounting. Net income attributable to partners for the first quarter 2016 was $145 million, compared to net income attributable to partners of $36 million for the first quarter 2015. Both periods included inventory adjustments resulting from the decrease in commodity prices. They also reported seventeen percent distribution increase to $0.489 compared to the first quarter 2015.
  • (Late Wednesday) Press Release - Tesoro Logistics reported first quarter 2016 net earnings of $92 million, or $0.64 per diluted common limited partner unit compared to net earnings of $70 million, or $0.63 per diluted common limited partner unit in the first quarter 2015. Adjusted EBITDA for the first quarter was $174 million, up $6 million or 4% from the first quarter 2015. The Company announced its quarterly cash distribution of $0.81 per limited partner unit or $3.24 on an annualized basis. The declared distribution represents a 17% increase over the first quarter 2015 distribution of $0.695 per limited partner unit paid in May 2015. This also represents the 20th consecutive quarterly increase of approximately 4% or more. The distribution coverage ratio was 1.31 times for the quarter.
  • (Late Wednesday) Press Release - TransCanada announced it has withdrawn and will refile on May 6 its pre-merger notification for the planned acquisition of Columbia Pipeline Group.
  • Press Release - Valero Energy Partners reported first quarter 2016 net income attributable to partners of $43 million, or $0.61 per common limited partner unit. The Partnership generated earnings before interest, income taxes, depreciation, and amortization of $56 million and distributable cash flow of $51 million. VLP`s coverage ratio for the first quarter was 2.0x. The board of directors of VLP`s general partner also declared a first quarter 2016 cash distribution of $0.34 per unit. This distribution represents a 6.25 percent increase from the fourth quarter of 2015.
  • (Late Wednesday) Press Release - Veresen reported adjusted net income attributable to common shares of $18 million or $0.06 per common share, reflecting the strength of the pipeline business, offset by higher project development spend to continue the advancement of the Jordan Cove LNG project. Distributable cash for the first quarter was $81 million or $0.27 per common share, compared to $81 million or $0.28 per common share for the same period last year. Increases from the pipeline business, reduced Corporate costs and lower cash taxes were offset by reduced cash flows from Aux Sable and higher preferred dividends.
  • (Late Wednesday) Press Release - Williams Partners reported first quarter 2016 adjusted EBITDA of $1.06 billion, a $143 million, or 16 percent, increase from first quarter 2015. The increase in adjusted EBITDA for first quarter 2016 is due to increases of $64 million from the Atlantic-Gulf operating area, $50 million from NGL & Petchem Services, $23 million from Northeast G&P and $8 million from the Central operating area. Adjusted EBITDA contributions from the West were down slightly compared with first quarter 2015. The company also regular quarterly cash distribution of $0.85 per unit for its common unitholders.

MARKET COMMENTARY

U.S. stock index futures were higher Thursday morning, helped by gains in oil prices as a huge wildfire near Canada's oil sands and escalating tensions in Libya raised concerns of a near-term supply shortage. In economic news, weekly jobless claims rose to 274,000. The U.S. dollar index tried for a third-straight day of gains, trading nearly 0.4 percent higher with the euro near $1.143 and the yen at 107.02 yen against the greenback as of 8:37 a.m. ET. The 2-year and 10-year Treasury yields held mostly higher after touching their lowest in at least two weeks on Wednesday. Several members of the Federal Reserve are scheduled to speak later in the day. St. Louis Fed President James Bullard is set to speak at 11:50 a.m. ET, while San Francisco Fed President John Williams will appear on CNBC at 1:40 p.m.


Nasdaq Advisory Services Energy Team is part of Nasdaq's Advisory Services -- the most experienced team in the industry. The team delivers unmatched shareholder analysis, a comprehensive view of trading and investor activity, and insights into how best to manage investor relations outreach efforts. For questions, please contact Tamar Essner.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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