Citigroup (NYSE:C) started covering Petrohawk Energy (NYSE:HK), starting them off with a "Hold" rating.
Citigroup analyst Robert Morris said in a note to clients that the downward pressure on natural gas prices will continue, and until that changes, there won't be much happening to change the rating.
While Morris likes the move away from conventional natural gas sources in North America to shale projects, especially Eagle Ford and Haynesville, until the supply and demand scenario changes, gas prices will continue to be low in the midst of an abundant supply.
Consequently, Petrohawk has the right production pieces in place, but until the fundamentals for gas prices improve, conditions will stay the same no matter how much resources a company may have.
This is why many natural gas companies have added oil assets recently in order to offset their exposure to natural gas pricing.
It's hard to see anything that will change this for some time.
Petrohawk closed Thursday at $14.95, gaining $0.24, or 1.63 percent. Citigroup has a price target of $19 on them. Not bad in these types of circumstances.
Showing posts with label Petrohawk. Show all posts
Showing posts with label Petrohawk. Show all posts
Friday, September 24, 2010
Wednesday, May 26, 2010
UBS (NYSE:UBS) Raises Petrohawk (NYSE:HK) Estimate
Shares of Petrohawk Energy (NYSE:HK) rose after UBS AG (NYSE:UBS) raised their estimates for the oil and gas company. UBS has a buy rating on the company and a price target of $28 through 2011.
Petrohawk is primarily a natural gas exploration, development and production company, although they do engage in oil production to a lesser degree.
The traded as high as $18.50 a share today, but has dropped back to near its opening of $17.87 a share as I write.
UBS said volume next year should increase for Petrohawk.
Petrohawk is primarily a natural gas exploration, development and production company, although they do engage in oil production to a lesser degree.
The traded as high as $18.50 a share today, but has dropped back to near its opening of $17.87 a share as I write.
UBS said volume next year should increase for Petrohawk.
Wednesday, April 14, 2010
Petrohawk Energy (NYSE:HK), Kinder Morgan (NYSE:KMP) in Joint Venture
Petrohawk Energy (NYSE:HK) announced it'll be selling its 50 percent stake in its Haynesville Shale project to Kinder Morgan Energy Partners (NYSE:KMP). The Haynesville Shale project include the extracting and processing side of the business.
As a result of the $875 million deal, the two companies will form a partnership for the project.
Petrohawk has been selling off some of its assets this year, which so far has reached $1.4 billion in order to increase its liquidity, in order to focus on this very Haynesville property, along with the Eagle For shale project.
Capital raised from the deal will be used by Petrohawk to work on and expand its drilling programs, according to CEO and Chairman Floyd Wilson.
Wilson said this will probably be the last deal like this for 2010, possibly because it exceeded expectations by over $200 million.
Separate from this deal, Petrohawk has also been migrating capital toward the Eagle Ford project to increase oil production in order to diversify its assets because of the abundance of natural gas which is bringing prices down.
The new company, named KinderHawk Field Service, will be valued at close to $1.75 billion at the close of the deal. Until then, Petrohawk will continue to operate the business.
As a result of the $875 million deal, the two companies will form a partnership for the project.
Petrohawk has been selling off some of its assets this year, which so far has reached $1.4 billion in order to increase its liquidity, in order to focus on this very Haynesville property, along with the Eagle For shale project.
Capital raised from the deal will be used by Petrohawk to work on and expand its drilling programs, according to CEO and Chairman Floyd Wilson.
Wilson said this will probably be the last deal like this for 2010, possibly because it exceeded expectations by over $200 million.
Separate from this deal, Petrohawk has also been migrating capital toward the Eagle Ford project to increase oil production in order to diversify its assets because of the abundance of natural gas which is bringing prices down.
The new company, named KinderHawk Field Service, will be valued at close to $1.75 billion at the close of the deal. Until then, Petrohawk will continue to operate the business.
Wednesday, March 24, 2010
Exco Resources (NYSE:XCO) Marcellus Shale Joint Venture
Exco Resources Marcellus Shale
According to CEO Douglas Miller, within a couple of weeks Exco Resources Inc. (NYSE:XCO) could announce a joint venture in the Marcellus shale.
Increased drilling in the region by companies like Chesapeake Energy Corp. (NYSE:CHK), Encana Corp. (NYSE:ECA) and Petrohawk Energy Corp. (NYSE:HK) has raised costs, making it more profitable to attract a partner than bear the cost themselves.
Miller didn't release any potential partners in the Marcellus shale play, although he's looking at a number of options before making a final decision.
Exco Resources Marcellus Shale
According to CEO Douglas Miller, within a couple of weeks Exco Resources Inc. (NYSE:XCO) could announce a joint venture in the Marcellus shale.
Increased drilling in the region by companies like Chesapeake Energy Corp. (NYSE:CHK), Encana Corp. (NYSE:ECA) and Petrohawk Energy Corp. (NYSE:HK) has raised costs, making it more profitable to attract a partner than bear the cost themselves.
Miller didn't release any potential partners in the Marcellus shale play, although he's looking at a number of options before making a final decision.
Exco Resources Marcellus Shale
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