COVERAGE REITERATED: PetroQuest Energy (PQ) reiterated by Stifel. Reiterated rating Buy.
BRIEFING.COM 7:57 AM ET 4/4/2014
PQ
Re: PQ
The made a presentation at the conference I attended in The Woodlands yesterday. It was a macro view of the U.S. gas market, so not much about the company. I will add it to my long list of companies we need to profile in April or May.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
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lumpygravy
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Re: PQ
PQ also has a 6.875% convertible preferred PTQEP which is currently trading well below par with a yield of 8.8%.
The stock is rather illiquid with very low daily trading volume. No maturity, but the stock is 3 1/2 years past the call date.
Details can be found here:
http://www.quantumonline.com/search.cfm ... opt=symbol
The stock is rather illiquid with very low daily trading volume. No maturity, but the stock is 3 1/2 years past the call date.
Details can be found here:
http://www.quantumonline.com/search.cfm ... opt=symbol
Re: PQ
We are going to publish a profile on PQ late this month.
I got this from Stifel's energy team this morning.
Investment summary. Monday after the close, PQ lowered its 1Q production
guidance, from 3% sequential growth to a 3% sequential decline, and announced a
disappointment on its Pelican Point exploration well. The production revision is
primarily caused by a month lag from expectations in getting Woodford wells
online; however, the wells are performing in line or slightly above the company’s
type curve expectation. As a result of lowering 1Q volumes, we are lowering our
full year volumes forecast, from 130 bcfe to 125 bcfe, versus the existing 2014
production guidance range of 125-140 bcfe, which was not revised. With Woodford
well results performing in line or slightly better and current production running back
on track with guidance, we maintain our Buy rating and $6.25 target price, which
reflects 5.0x 2014 EV/EBITDA.
Lowering 1Q14 estimates due to deferrals in the GOM and Woodford. PQ
forecasts that 1Q14 production volumes will range from 107-109 mmcfe/d, down
3% Q/Q, at the midpoint of the range, and down about 6% from the previous 1Q
guidance range of 112-117 mmcfe/d. Production is coming in lighter than expected
as a result of new Woodford wells that are coming online a month later than
expected, and due to a third party pipeline shut-in in the GOM. Due to the lower
than expected 1Q volumes, we are lowering our 1Q14 CFPS/EPS estimates from
$0.50/$0.11 to $0.45/$0.05, versus the current consensus of $0.49/$0.12.
GOM operations update a negative; positive Woodford wells. PQ’s attempt at
deepening the Pelican Point prospect was unsuccessful, as a casing failure
rendered the existing well bore unusable. The Eagle Creek prospect in the GOM is
set to spud in about one month, and a sell-down to a 55% stake has been
completed at the Thunder Bayou prospect, with an estimated spud date of June
1st for the well. The five-well pad on PQ’s West Relay field, targeting the
liquids-rich Woodford, achieved an average per well 24-hour IP rate of 1,146 boe/d
(51% liquids), while a one well pad achieved an average 24-hour IP rate of 1,240
boe/d (45% liquids). Both results exceed PQ’s type curve for the play, and help to
de-risk a newly acquired block of acreage.
I got this from Stifel's energy team this morning.
Investment summary. Monday after the close, PQ lowered its 1Q production
guidance, from 3% sequential growth to a 3% sequential decline, and announced a
disappointment on its Pelican Point exploration well. The production revision is
primarily caused by a month lag from expectations in getting Woodford wells
online; however, the wells are performing in line or slightly above the company’s
type curve expectation. As a result of lowering 1Q volumes, we are lowering our
full year volumes forecast, from 130 bcfe to 125 bcfe, versus the existing 2014
production guidance range of 125-140 bcfe, which was not revised. With Woodford
well results performing in line or slightly better and current production running back
on track with guidance, we maintain our Buy rating and $6.25 target price, which
reflects 5.0x 2014 EV/EBITDA.
Lowering 1Q14 estimates due to deferrals in the GOM and Woodford. PQ
forecasts that 1Q14 production volumes will range from 107-109 mmcfe/d, down
3% Q/Q, at the midpoint of the range, and down about 6% from the previous 1Q
guidance range of 112-117 mmcfe/d. Production is coming in lighter than expected
as a result of new Woodford wells that are coming online a month later than
expected, and due to a third party pipeline shut-in in the GOM. Due to the lower
than expected 1Q volumes, we are lowering our 1Q14 CFPS/EPS estimates from
$0.50/$0.11 to $0.45/$0.05, versus the current consensus of $0.49/$0.12.
GOM operations update a negative; positive Woodford wells. PQ’s attempt at
deepening the Pelican Point prospect was unsuccessful, as a casing failure
rendered the existing well bore unusable. The Eagle Creek prospect in the GOM is
set to spud in about one month, and a sell-down to a 55% stake has been
completed at the Thunder Bayou prospect, with an estimated spud date of June
1st for the well. The five-well pad on PQ’s West Relay field, targeting the
liquids-rich Woodford, achieved an average per well 24-hour IP rate of 1,146 boe/d
(51% liquids), while a one well pad achieved an average 24-hour IP rate of 1,240
boe/d (45% liquids). Both results exceed PQ’s type curve for the play, and help to
de-risk a newly acquired block of acreage.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group