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Houston Field Trip CC
Posted: Fri Jun 25, 2010 10:11 am
by dan_s
Citi Investment Research & Analysis held a conference call this morning (June 25) to discuss their visit to ten E&P companies based in Houston. Sweet 16 member Newfield Exploration (NFX) was on the tour.
Replay of the call will be available this afternoon:
1-888-203-1112
Pass Code: 9411324
Re: Houston Field Trip CC
Posted: Sun Jun 27, 2010 3:14 pm
by dan_s
I just listened to the CC and it sounds like HP could be a big winner as capital moves from the GOM to onshore. Demand for HP "Flex Rigs" has increased sharply already. IMO HP is a "Core of the Core" quality company.
Sweet 16 Core Holding Newfield (NFX) is rated a Buy with a $66 price target by Citi Research. NFX is well positioned to post 10% year-over-year production growth for the next three years, with more capital going to oil prone shale plays. NFX may exit the GOM and focus entirely onshore. They could use the money to aggressively develop their Monument Butte oil field, liquids rich Granite Wash, Bakken and Eagle Ford.
HAL, Exxon and MOR all rated Buys.
Anadarko (APC): This is risky as they are on the hook for up to 25% of the BP Blowout. There is a 50/50 chance that APC can cut a deal with Washington & BP to write a big check (up to $5 Billion) and get resolved of future liabilites so the company can move on. This kind of stuff is a "bet" not an investment so be careful if you want to play this game. APC is a very good company.
Citi does think the Federal Moritorium on GOM deepwater drilling will be lifted by year-end but will make GOM drilling much more expensive. Lot of confusion out their now. Many rigs will leave the GOM and not return. Permanent job losses.
Dan