Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Caesars Entertainment (NASDAQ: CZR ) jumped 15% today after saying it was continuing a plan to offer shares in a spinoff.
So what: The company said it plans to offer as much as $1.18 billion in stock in Caesars Acquisition Co., which will eventually own Caesars' online gaming assets as well as Planet Hollywood in Las Vegas and a future project in Baltimore. Caesars Entertainment is using the spinoff and share offering to bolster its balance sheet and stave off a potential bankruptcy because of deteriorating financial results.
Now what: This isn't a new announcement, and people buying shares today are buying the old Caesars assets and only the opportunity to pay $9.43 per share for the new "growth" company. Unless you want to own both, I think the prudent move would be to wait for the new company to trade publicly and then buy shares; otherwise you're just buying into a dilutive offering, which is all this is. I don't think this is any reason to buy the stock, and retail investors should examine this deal carefully so they know exactly what they're buying today.
Interested in more info on Caesars Entertainment? Add it to your watchlist by clicking here.
Transocean Ltd. (Transocean) is an international provider of offshore contract drilling services for oil and gas wells. The Company operates in two segments: contract drilling services and other operations. Contract drilling services, the Company�� primary business, includes contracting Transocean�� mobile offshore drilling fleet, related equipment and work crews primarily on a day rate basis to drill oil and gas wells. Its other operations segment includes drilling management services, and oil and gas properties. It participates in oil and gas exploration and production activities. In November 2010, it purchased a PPL Pacific Class 400 design High-Specification Jackup, which is under construction at PPL Shipyard Pte Ltd. in Singapore. Subsequent to the year ended December 31, 2010, it completed the sale of the High-Specification Jackup Trident 20. On October 4, 2011, the Company acquired, through Transocean Services AS, Aker Drilling ASA.
During 2010, the Company completed the sale of two Midwater Floaters, GSF Arctic II and GSF Arctic IV. As of February 10, 2011, Transocean owned, had partial ownership interests in or operated 138 mobile offshore drilling units. As of February 10, 2011, Transocean�� fleet consisted of 47 High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh Environment semisubmersibles and drillships), 25 Midwater Floaters, nine High-Specification Jackups, 54 Standard Jackups and three Other Rigs. In addition, the Company had one Ultra-Deepwater Floater and three High-Specification Jackups under construction. During 2010, the Company completed construction of five Ultra-Deepwater newbuilds, four of which have commenced their respective contracts. As of December 31, 2010, it held 50% interest in Transocean Pacific Drilling Inc. (TPDI), 65% interest in Angola Deepwater Drilling Company Limited (ADDCL) and a 50% interest in Overseas Drilling Limited (ODL).
Drilling Fleet
Transocean principally operates three types of drilling rig! s: drill ships, semisubmersibles and jackups. Also included in its fleet are barge drilling rigs and a coring drillship. Its fleet includes High-Specification Floaters, which consists of the Company�� Ultra-Deepwater Floaters, Deepwater Floaters and Harsh Environment Floaters; Midwater Floaters, High-Specification Jackups, Standard Jackups and Other Rigs. High-Specification Floaters are specialized offshore drilling units that it categorizes into three sub-classifications. Ultra-Deepwater Floaters are equipped with high-pressure mud pumps and are capable of drilling in water depths of 7,500 feet or greater. Deepwater Floaters include other semisubmersible rigs and drillships capable of drilling in water depths between 7,200 and 4,500 feet. Harsh Environment Floaters are capable of drilling in harsh environments in water depths between 5,000 and 1,500 feet and have greater displacement, which offers variable load capacity, useable deck space and better motion characteristics. Midwater Floaters consist of non-high-specification semisubmersibles that have a water depth capacity of less than 4,500 feet. High-Specification Jackups consist of its jackups, and Standard Jackups consist of the Company�� remaining jackup fleet.
As of February 10, 2011, Transocean�� fleet was located in the Far East (29 units), Middle East (17 units), West African countries other than Nigeria and Angola (16 units), United States Gulf of Mexico (14 units), United Kingdom North Sea (13 units), India (11 units), Brazil (10 units), Nigeria (seven units), Norway (five units), Angola (five units), the Mediterranean (three units), the Netherlands (three units), Australia (three units) and Canada (two units). As of February 10, 2011, its four rigs under construction included Deepwater Champion, Transocean Honor, High-Specification Jackup TBN1 and High-Specification Jackup TBN2. As of February 10, 2011, the Company�� Midwater Floaters included Sedco 700, Transocean Amirante, Transocean Legend, GSF Arctic I, C. Kirk Rhe! in, Jr. a! nd GSF Rig 135. As of February 10, 2011, its High-Specification Jackups included GSF Constellation I, GSF Constellation II, GSF Galaxy I, GSF Galaxy II, GSF Galaxy III and GSF Baltic. As of February 10, 2011, the Company�� Standard Jackups included Trident IX, GSF Adriatic II, GSF Adriatic IX, GSF Adriatic X, GSF Key Manhattan, GSF Key Singapore, GSF Adriatic VI and GSF Adriatic VIII.
Contract Drilling Services
Transocean�� primary business is to contract its drilling rigs, related equipment and work crews on a dayrate basis to drill oil and gas wells. Transocean�� contracts to provide offshore drilling services are individually negotiated and vary in their terms and provisions.
Drilling Management Services
The Company provides drilling management services primarily on a turnkey basis through Applied Drilling Technology Inc., its wholly owned subsidiary, which primarily operates in the United States Gulf of Mexico, and through ADT International, a division of one of its United Kingdom subsidiaries, which primarily operates in the North Sea (together, ADTI). ADTI provides oil and gas drilling management services on a dayrate basis or a completed-project, fixed-price (or turnkey) basis, as well as drilling engineering and drilling project management services. As part of its turnkey drilling services, the Company provides planning, engineering and management services. Under turnkey arrangements, it designs and executes of a well and delivers a logged or cased hole to an agreed depth. In addition to turnkey drilling services, Transocean participates in project management operations that include providing certain planning, management and engineering services, purchasing equipment and providing personnel and other logistical services to customers.
Integrated Services
Transocean provides well and logistics services in addition to its normal drilling services through third party contractors and the Company�� employees. These o! ther serv! ices include integrated services. As of February 10, 2011, it was performing such services in India.
Oil and Gas Properties
The Company conducts oil and gas exploration, development and production activities through its oil and gas subsidiaries. It acquires interests in oil and gas properties principally in order to facilitate the awarding of turnkey contracts for Transocean's drilling management services operations. The Company�� oil and gas activities are conducted through Challenger Minerals Inc. and Challenger Minerals (North Sea) Limited (together, CMI), which hold property interests primarily in the United States offshore Louisiana and Texas and in the United Kingdom sector of the North Sea.
Advisors' Opinion: Best Gas Companies To Buy Right Now: VAALCO Energy Inc (EGY)
VAALCO Energy, Inc. (VAALCO), incorporated in 1985, is an independent energy company principally engaged in the acquisition, exploration, development and production of crude oil and natural gas. VAALCO owns producing properties and conducts exploration activities as operator in Gabon, West Africa, conducts exploration activities as an operator in Angola, West Africa, and has conducted exploration activities as a non-operator in the British North Sea. The Company owns minor interests in production activities as a non-operator in the United States. During the year ended December 31, 2011, the Etame, Avouma, South Tchibala and Ebouri fields produced approximately 8.1 million barrels of oil (2.3 million barrels of oil net to the Company).
Offshore Gabon
The Company�� primary source of revenue is from the Etame Production Sharing Contract related to the Etame Marin block located offshore the Republic of Gabon. VAALCO operates the Etame Marin block on behalf of a consortium of companies. As of December 31, 2010, VAALCO owned a 30.35% interest in the exploration acreage within the Etame Marin block. The Company owns a 28.1% interest in the development areas surrounding the Etame, Avouma, South Tchibala and Ebouri fields, each of which is located on the Etame Marin block. The Company produces from the Etame, Avouma, South Tchibala and Ebouri fields on the block.
Onshore Gabon
The Mutamba Iroru block is ocated onshore near the coast in central Gabon. The Mutamba Iroru block contains an exploration area of approximately 270,000 acres.
Offshore Angola
The Company has 40% working interest in Offshore Angola. The four year primary term with an optional three year extension awards the Company exploration rights to 1.4 million acres offshore central Angola.
Onshore Domestic-Texas
In July 2011, the Company acquired a 480 acre lease in the Granite Wash formation in North Texas. In November 2011, the Company commen! ced drilling a second well on the initial Granite Wash formation lease.
Onshore DomesticMontana
In May 2011, the Company acquired a 70% working interest in approximately 5,200 acres (3,640 net acres) in Sheridan County, Montana in the Middle Bakken formation. In September 2011, it acquired a 65% working interest in approximately 22,000 gross acres covering the Middle Bakken and deeper formations in the East Poplar unit and the Northwest Poplar field in Roosevelt County, Montana.
DomesticOutside Operated
The Company has minor interests in Brazos County, Texas producing from the Buda/Georgetown formations. The Company also owns certain minor non-operated interests in the Ship Shoal area of the Gulf of Mexico and in Pickens County, Alabama.
Advisors' Opinion: - [By Eric Volkman]
Vaalco Energy (NYSE: EGY ) hopes to put some power into its common stock by repurchasing a chunk of outstanding shares. The company's board has authorized a repurchase program for up to $25 million worth of stock. The initiative will be in force for one year.
- [By Laura Brodbeck]
Friday
Earnings Expected From: Covidien plc. (NYSE: COV), Eldorado Gold Corporation (NYSE: EGO), Vaalco Energy Inc. (NYSE: EGY) Economic Releases Expected: �US Wholesale Trade, US non-farm payrolls Posted-In: Bank Of England European Central Bank Federal ReserveNews Eurozone Previews Global Economics Federal Reserve Markets Trading Ideas Best of Benzinga
Best Gas Companies To Buy Right Now: BG Group PLC (BRGYY.PK)
BG Group plc (BG Group), incorporated on December 30, 1998, is a natural gas company. The Company is engaged in the exploration, development and production of natural gas and oil. he Company operates in two business segments: Exploration and Production (E&P) and Liquefied Natural Gas (LNG). The Company manages its business on an integrated basis across the Americas, Europe, Africa, Central and South Asia, and Australia. The Company has interests in more than 20 countries on five continents.
Exploration and Production
E&P consists of exploration, development, production and marketing of hydrocarbons with a focus on natural gas. BG Group�� Upstream segment covers exploration and production activities for gas, oil and liquids, plus liquefaction operations associated with integrated LNG projects.
Liquefied Natural Gas
BG Group�� LNG activities combine liquefaction and regasification facilities with the purchasing, shipping, marketing and sale of LNG. The Company has interest in liquefaction facilities in Egypt and Trinidad and Tobago. BG Group�� LNG Shipping & Marketing segment covers the purchasing, shipping, marketing and sale of LNG, as well as the Group�� interests and capacity in regasification facilities.
Advisors' Opinion: - [By Heather Ingrassia]
On Thursday, August 15, GasLog (GLOG) announced that it had ordered two new 174K cbm Tri-Fuel Diesel Electric LNG carriers from Samsung Heavy Industries. These carriers are expected to be delivered in 2016 which is the same year the company will begin seven-year charters with BG Group (BRGYY.PK) (BRGXF.PK).
Best Gas Companies To Buy Right Now: KNOT Offshore Partners LP (KNOP)
KNOT Offshore Partners LP, incorporated on February 21, 2013, is a limited partnership formed to own, operate and acquire shuttle tankers under long-term charters. Its initial fleet of shuttle tankers contribute to the Company by Knutsen NYK Offshore Tankers AS (KNOT), which is jointly owned by TS Shipping Invest AS, (TSSI), and Nippon Yusen Kaisha (NYK). NYK is a Japanese public company with a fleet of approximately 800 vessels, including bulk carriers, containerships, tankers and specialized vessels. The Company is a holding entity and is conduct its operations and business through subsidiaries KNOT is an independent owner of crude oil shuttle tankers. Its general partner is KNOT Offshore Partners GP LLC. In August 2013, KNOT Offshore Partners LP's wholly owned subsidiary KNOT Shuttle Tankers AS completed its acquisition of all interests in Knutsen Shuttle Tanker 13 AS that owns and operates the Carmen Knutsen from KNOT Offshore Tankers AS.
The Company's initial fleet consists of four shuttle tankers, which are vessels designed to transport crude oil and condensates from offshore oil field installations to onshore terminals and refineries. The shuttle tankers include , Fortaleza Knutsen, Recife Knutsen, Bodil Knutsen and Windsor Knutsen. Its shuttle tankers are equipped with loading systems and dynamic positioning systems that allow the vessels to load cargo safely and reliably from oil field installations, even in harsh weather conditions.
Advisors' Opinion: Best Gas Companies To Buy Right Now: Northern Tier Energy LP (NTI)
Northern Tier Energy LP, formerly Northern Tier Energy, Inc., incorporated in October 21, 2011, is an independent downstream energy company with refining, retail, and pipeline operations that serves the PADD II region of the United States. The Company operates its assets in two business segments: the refining business and the retail business. The Company owns three pipelines. The Company's operations will be conducted through, and its operating assets will be owned by, its wholly owned subsidiary, Northern Tier Energy LLC, and its subsidiaries. Effective November 12, 2013, Western Refining Inc acquired a 38.681% interest in Northern Tier Energy LP.
Refining Business
The Company�� refining business primarily consists of a 74,000 barrels per calendar day (84,500 barrels per stream day) refinery located in St. Paul Park, Minnesota. Its location allows it to distribute its refined products throughout the midwestern United States. The Company�� refinery produces a slate of refined products, including gasoline, diesel, jet fuel and asphalt, which are then marketed to resellers and consumers primarily in the PADD II region. It also owns various storage and transportation assets, including a light products terminal, a heavy products terminal, storage tanks, rail loading/unloading facilities and a Mississippi river dock. The Company�� refining business also includes its 17% interest in the Minnesota Pipe Line Company, which owns and operates the Minnesota Pipeline, a 455,000 barrels per calendar day crude oil pipeline system that transports crude oil (primarily from Western Canada and North Dakota) for approximately 300 miles from the Enbridge pipeline hub at Clearbrook, Minnesota to its refinery.
As of March 31, 2012, the Company's storage assets included 84 hydrocarbon storage tanks with a total capacity of 3.7 million barrels (156 million gallons), 0.8 million barrels of crude oil storage and 2.9 million barrels of feedstock and product storage. The Company�� r! efinery supplies all of the gasoline and diesel sold in its company-operated and franchised convenience stores, as well as all of the gasoline and diesel sold in 90 independently owned and operated Marathon branded stores in its marketing area. The Minnesota Pipe Line Company owns the Minnesota Pipeline, a crude oil pipeline system in Minnesota that transports crude oil to the St. Paul area. The Minnesota Pipeline system has multiple lines that run approximately 300 miles from Clearbrook in Clearwater County, Minnesota to Dakota County, Minnesota, transporting crude oil received through the Enbridge pipeline connections at Clearbrook from Western Canada and North Dakota to our refinery and Koch Industries�� Flint Hills Resources refinery in Minnesota.
Retail Business
As of March 31, 2012, the Company�� retail business operated 166 convenience stores under the SuperAmerica brand and also supported 67 franchised convenience stores, which are also operated under the SuperAmerica brand. These convenience stores are located primarily in Minnesota and Wisconsin and sell various grades of gasoline and diesel, tobacco products and immediately consumable items, such as non-alcoholic beverages, beer, prepared food and a range of snacks and prepackaged items. It also owns and operates SuperMom�� Bakery, which prepares and distributes baked goods and other prepared food items for sale in its company-operated and franchised convenience stores and other third party locations.
The Company has a retail-marketing network of 233 convenience stores, as of March 31, 2012, located throughout Minnesota, Wisconsin and South Dakota, of which it operates 166 stores and support 67 franchised stores. All of its company-operated and franchised convenience stores are operated under the SuperAmerica brand. It also owns and operates SuperMom�� Bakery, which prepares and distributes baked goods and other prepared items for sale in its retail outlets and for other third parties. Its refine! ry suppli! es all of the gasoline and diesel sold in its company-operated and franchised convenience stores. The Company has retail customers, which primarily include retail end-users, motorists and commercial drivers. It had a retail-marketing network of 233 convenience stores, as of March 31, 2012, located throughout Minnesota, Wisconsin and South Dakota, of which it operated 166 stores and support 67 franchised stores.
The Company competes with Koch Industries��Flint Hills Resources Refinery, Holiday, Kwik Trip and Wal-Mart.
Advisors' Opinion: - [By Ben Levisohn]
Delek US,�Western Refining and�Phillips 66 are most exposed to the consensus thinking Westlake and�Advani say. They kept Tesoro (TSO) and Northern Tier Energy (NTI) rated outperform.
- [By Igor Greenwald]
On November 12, Western Refining announced an agreement to pay $775 million to the private-equity sponsors of Northern Tier Energy (NTI) for the general partner interest in that MLP, along with the 38.7% of its limited partner units not held by the public.
- [By Jon C. Ogg]
Northern Tier Energy L.P. (NYSE: NTI) was raised to Outperform from Neutral and the price target was raised to $29 from $28 at Credit Suisse.
Phillips 66 (NYSE: PSX) was downgraded to Perform from Outperform at Oppenheimer.
- [By Mick Weinstein]
��Northern Tier Energy (NTI) �as a Bakken Shale proxy.
Best Gas Companies To Buy Right Now: Atlas Energy LP (ATLS)
Atlas Energy, L.P. (Atlas Energy), incorporated on December 15, 2005, is a limited partnership. The Company's assets consist of the Company's ownership interests in the Atlas Resource Partners, L.P. (ARP), an independent developer and producer of natural gas, crude oil and natural gas liquids (NGL), with operations in basins across the United States; Atlas Pipeline Partners, L.P. (APL) a midstream energy service provider engaged in natural gas gathering, processing and treating services in the Anandarko and Permian Basins of the United States, and Lightfoot Capital Partners, LP (Lightfoot LP) and Lightfoot Capital Partners GP, LLC (Lightfoot GP), the general partner of Lightfoot L.P. (collectively, Lightfoot), entities which incubate new master limited partnerships (MLPs) and invest in existing MLPs. As of December 31, 2012, the Company had an approximate 16% general partner interest and 12% limited partner interest in Lightfoot.
On April 30, 2012, ARP acquired 277 billion cubic feet equivalent of proved reserves, including undeveloped drilling locations, in the core of the Barnett Shale from Carrizo Oil & Gas, Inc. (Carrizo). The assets include 198 gross producing wells. On July 26, 2012, ARP acquired Titan Operating, L.L.C. (Titan), which owned approximately 250 billion cubic feet equivalent of proved reserves and associated assets in the Barnett Shale on approximately 16,000 net acres. Titan's assets are located in close proximity to the assets acquired from Carrizo in the Barnett Shale. On September 24, 2012, ARP acquired Equal Energy, Ltd�� (Equal) remaining 50% interest in approximately 8,500 net undeveloped acres. On December 20, 2012, ARP acquired 210 billion cubic feet equivalent of proved reserves in the Fort Worth basin from DTE Energy Company (DTE). The assets include 261 gross producing wells on over 88,000 net acres. The acreage position includes approximately 75,000 net acres prospective for the Marble Falls play, in which there are over 700 identified vertical drilling l! ocations..
In February 2012, APL acquired a gas gathering system and related assets, at its WestOK region. In June 2012, APL acquired a gas gathering system and related assets in the Barnett Shale in Tarrant County, Texas. In December 2012, APL acquired 100% interests held by Cardinal Midstream, LLC (Cardinal) in three wholly owned subsidiaries. The assets of these companies include gas gathering, processing and treating facilities in Arkansas, Louisiana, Oklahoma and Texas as the Tupelo plant, the East Rockpile treating facility, a fixed fee contract gas treating business, a 60% interest in Centrahoma Processing, LLC (Centrahoma), the Coalgate and Atoka plants, and the prospective Stonewall plant.
Atlas Resource Partners
During the year ended December 31, 2012, ARP�� average daily net production was approximately 77.2 million cubic feet equivalent. As of December 31, 2012, ARP owned production positions, including the Barnett Shale and Marble Falls play in the Fort Worth Basin in northern Texas; the Appalachia basin, including the Marcellus Shale and the Utica Shale; the Mississippi Lime and Hunton plays in northwestern Oklahoma, and the Chattanooga Shale in northeastern Tennessee, the Niobrara Shale in northeastern Colorado, the New Albany Shale in southwestern Indiana, and the Antrim Shale in Michigan. ARP has ownership interests in over 525 wells in the Barnett Shale and Marble Falls play. ARP has ownership interests in over 10,200 wells in the Appalachian basin, including approximately 270 wells in the Marcellus Shale. The Chattanooga Shale in northeastern Tennessee, the Niobrara Shale in northeastern Colorado, the New Albany Shale in southwestern Indiana, and the Antrim Shale in Michigan.
Atlas Pipeline Partners
APL conducts its business in the midstream segment of the natural gas industry through two reportable segments: gathering and processing, and transportation, treating and other. The gathering and processing segment consist! s of the A! rkoma, WestOK, WestTX and Velma operations, which are comprised of natural gas gathering and processing assets servicing drilling activity in the Anadarko, Arkoma and Permian Basins, and natural gas gathering assets located in the Barnett Shale play in Texas and the Appalachian Basin in Tennessee. Gathering and processing revenues are derived from the sale of residue gas and NGLs and the gathering and processing of natural gas.
APL's gathering and processing operations, own, have interests in and operate 12 natural gas processing plants with aggregate capacity of approximately 1,090 million cubic feet per day located in Oklahoma and Texas; a gas treating facility located in Oklahoma, and approximately 10,100 miles of active natural gas gathering systems located in Oklahoma, Kansas, Tennessee and Texas. APL's gathering systems gather natural gas from oil and natural gas wells and central delivery points and deliver this gas to processing plants, as well as third-party pipelines.
APL's gathering and processing operations are located in Golden Trend, Mississippian Limestone and Hugoton field in the Anadarko Basin; the Woodford Shale; the Spraberry Trend, which is an oil play with associated natural gas in the Permian Basin, and the Barnett Shale. APL's gathering systems are connected to approximately 8,600 receipt points, consisting of individual well connections and secondarily, central delivery points, which are linked to multiple wells.
APL's transportation and treating operations consists of 17 gas treating facilities used to provide contract treating services to natural gas producers located in Arkansas, Louisiana, Oklahoma and Texas, and a 20% interest in West Texas LPG Pipeline Limited Partnership (WTLPG), which owns a common-carrier pipeline system, which transports NGLs from New Mexico and Texas to Mont Belvieu, Texas for fractionation. WTLPG is operated by Chevron Pipeline Company, an affiliate of Chevron Corporation (Chevron), which owns the remaining 80% i! nterest. ! The contract gas treating operations are located in various shale plays, including the Avalon, Eagle Ford, Granite Wash, Haynesville, Fayetteville and Woodford.
The Company competes with Access Midstream Partners, LP; Caballo Energy, LLC, Carrera Gas Company; Copano Energy, LLC; Crosstex Energy Services, L.P.; DCP Midstream, LLC; Energy Transfer Partners, LP.; Enogex, LLC; Lumen Midstream Partners, LLC; MarkWest Energy Partners, L.P.; Mustang Fuel Corporation; ONEOK Field Services Company, LLC; Scissor Tail Energy, LLC; SemGas, L.P.; Southern Union Company; Superior Pipeline Company, LLC; Targa Resources Partners LP, and West Texas Gas, Inc.
Advisors' Opinion: - [By Dividend]
Atlas Energy (ATLS) has a market capitalization of $2.72 billion. The company employs 832 people, generates revenue of $1.521 billion and has a net income of $-16.88 million. Atlas Energy�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $212.91 million. The EBITDA margin is 13.99 percent (the operating margin is 2.42 percent and the net profit margin -1.11 percent).
