Actionable news
All posts from Actionable news
Actionable news in CVE: CENOVUS ENERGY Inc,

The Zacks Analyst Blog Highlights: Cheniere Energy, Jones Energy, Sanchez Energy, Cenovus Energy and Petrobras

For Immediate Release

Chicago, IL – June 28, 2017 – 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 Cheniere Energy Inc. (NYSEMKT: LNG – Free Report ), Jones Energy Inc. (NYSE: JONE – Free Report ), Sanchez Energy Corp. (NYSE: SN – Free Report ), Cenovus Energy Inc. (NYSE: CVE – Free Report ) and Petrobras (NYSE: PBR – Free Report ).

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: Cheniere Starts Korea Gas Export, Jones Energy Sells Non-Core Assets

It was a week where oil prices plunged into bear territory amid continued U.S. production boom, while natural gas futures slipped below the psychologically important $3 threshold.

On the news front, Cheniere Energy Inc. (NYSEMKT: LNG – Free Report ) announced the dispatch of the first cargo of liquefied natural gas under its 20-year contract with South Korean government-owned KOGAS, while oil and gas explorer Jones Energy Inc. (NYSE: JONE – Free Report ) struck a deal to offload several non-core assets in Arkoma basin to pay down debt.

Overall, it was a brutal week for the sector. West Texas Intermediate (WTI) crude futures lost 4.4% to close at $43.01 per barrel, while natural gas prices fell 3.6% to $2.929 per million Btu (MMBtu). (See the last ‘Oil & Gas Stock Roundup’ here: EQT-Rice Energy Tie-Up, Chevron's $9.5B Legal Reprieve & More )

Oil prices sank to their lowest finish since Aug 10, spooked by the U.S. Energy Department's inventory release. The report once again brought to the forefront the steady trend of rising domestic oil production that continues to be the biggest headwind for the market. At around 9.35 million barrels a day, domestic output has increased to the highest since Aug 2015. Investors also fretted over the burgeoning rig count – pointing to the ever-increasing shale drilling activities – and rising output from Libya.

Meanwhile, natural gas futures fell to its lowest since March following a larger-than-expected increase in supplies and tepid cooling demand with forecasts of milder temperature across the country over the next few days.

Recap of the Week’s Most Important Stories

1. U.S.-based natural gas exporter Cheniere Energy Inc. recently commenced work under its long-term supply contract with South Korean natural gas utility Korea Gas Corp., aka, KOGAS. The first shipment – loaded on Jun 3 – is in transit from Sabine Pass to South Korea’s Tongyeong and is likely to arrive on Jul 1.

The 20-year supply contract, inked in Jan 2012, aims to supply U.S.-sourced LNG from the Sabine Pass Liquefaction facility in Louisiana to KOGAS. Per the deal, Cheniere Energy is expected to deliver about 3.5 million tons of LNG per year which is 10% more than South Korea’s total annual demand.

South Korea depends heavily on Middle Eastern countries including Oman and Qatar for its import requirements through state-run KOGAS. The country is the second-largest LNG importer in the world due to the paucity of domestic resources to meet its energy demands.

With the energy production boom in U.S., the nation is likely to become the world’s largest LNG supplier by 2035, transcending Australia and Qatar. Cheniere Energy, which is the only LNG exporter of U.S., is expected to ship 200 LNG vessels this year. The company exports natural gas to around 20 countries. The gas contract with KOGAS is likely to generate over $548 million of revenues for Cheniere Energy per year. (Read more: Cheniere Energy Initiates Work under KOGAS LNG Supply Deal )

2. Texas-based upstream company Jones Energy Inc. recently entered into divestment agreements to offload its non-core properties in Arkoma Basin to undisclosed buyers in order to augment its balance sheet. With the divestment deal, the company –currently carrying a Zacks Rank #3 (Hold) – will exit the Arkoma...