StockCall Scans Suncor and Southwestern: Oil & Gas Sector Looks to Make Comeback
by PR Newswire
LONDON, February 15, 2013 /PRNewswire/ --
Oil & Gas sector is reeling under the pressure of capacity build up and soft energy prices. The industry is further being bogged down by the disappointing quarterly figures posted by companies within its realm. Suncor Energy Inc. (NYSE: SU) reported double digit decline in its quarterly EPS. However, the company is planning to boost its operations. Similarly, Southwestern Energy Co. (NYSE: SWN) plans to focus on its Fayetteville assets. StockCall has taken an interest in these companies and you can now sign up to download the free technical research on Suncor Energy and Southwestern Energy Co. at http://www.stockcall.com/registration
Suncor Energy Reports Lower Revenue
Suncor Energy reported unsatisfactory results for its fourth quarter. The company suffered due to lower production and soft oil prices. Suncor Energy reported its net income at 65 cents per share, down 28.6 percent from its previous year's quarter. Similarly, its revenue also dropped 4.3 percent to $9.56 billion. However, it is not just the financial numbers that declined, its quarterly upstream production also dropped on a YoY basis. Sign up today to read the free research report on Suncor Energy Inc. at http://www.StockCall.com/SU021513.pdf
Suncor Energy is mostly invested in oil sands development and carries out its operations mainly in Canada. The stock lost 3 percent of its value in the past 52 weeks. However, despite its weak results, the company approved quarterly dividend of 13 cents per share, providing some value to its shareholders. On the positive side, Suncor Energy garnered good Hedge Fund interest, as Steve Cohen of SAC Capital substantially increased its holding in the second and third quarter of 2012.
Suncor Energy has refinery operations in both the U.S. and Canada. It is working towards boosting its production level. For this purpose, the company has a couple of projects in the pipeline. Apart from Firebag complex, it is also working on the Voyageur Upgrader project, which is likely to produce up to 102,000 barrels of oil per day. The company has good growth prospects. Though, lately its stock has not performed well, but all in all its future looks bright.
Southwestern Energy Focuses on Shale Play
Southwestern Energy stock is still at the same level as it was a year back. Soft energy prices took a toll on the company's performance. The company currently draws less 15 percent of its output from its Marcellus shale assets. However, Southwestern Energy plans to ramp up operations in the shale area as it had been building up capacity in the region. The company has also acquired frac fleet for the area which will help it in curtailing costs. Register to download the free technical analysis on Southwestern Energy Co. at http://www.StockCall.com/SWN021513.pdf
Its CEO stated, "In the Fayetteville Shale, we will continue to drive our costs and drilling time down as our newly acquired frac fleets become operational and our target is to invest within cash flow."
It also plans to allocate $2 billion for CAPEX in 2013, which is slightly lower than its outlay for 2012. The company mainly plans to invest in Fayetteville Shale region and Appalachia region. It also plans to boost its production in Marcellus Shale up to the capacity level. Southwestern Energy stands to benefit as and when the natural gas prices recover. The company's fortunes are tied to natural gas prices as natural gas drilling forms an important part of its operations. While the company's stock is stagnating, Southwestern Energy is looking to enter into new ventures including Smackover Brown Dense project. The stock is expected to respond positively to these happenings.
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