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Axial Vector Energy Corp. (AXVC.PK) Describes Dual Technologies of Petrosonics

QualityStocks — Mon, 21 Sep 2009 18:57:48 +0000

Axial Vector Energy Corp., developer of advanced, high-efficiency energy engines, has access to two important fuel purification technologies associated with Petrosonics LLC, the privately held development stage oil refining technology company that is part of the PETROAVEC joint venture between Axial Vector and Petrosonics. The first technology uses ultrasound at moderate temperature and atmospheric pressure [...]

Dow Sells Refinery – Analyst Blog

Zacks Market Commentaries — Wed, 02 Sep 2009 18:25:27 +0000

Dow Chemical Co. (DOW) completed the sale of its Netherlands-based crude oil refinery to Paris-based Total SA (TOT), one of the six major global oil companies, for about $800 million. The refinery is a key supplier of refined products, including diesel, to the European market. The move is in line with Dow’s strategy of divesting non-core assets. The deal received regulatory approval last month.

The Midlands, Michigan-based chemical company stated that the divestiture will increase its financial flexibility, improve cash flow and will help pay down debt. The company plans to use the proceeds from the deal to pay down debt, which was raised for the Rohm and Haas acquisition.

The Rohm and Haas acquisition increased Dow’s net debt from $8 billion to $22 billion in the first half of 2009. This resulted in a significant net cash deficit of $19 billion during the period. However, Dow Chemical has become the world’s leading specialty chemicals and advanced materials company after acquiring Rohm and Haas for a total investment of $16.3 billion.

Dow Chemical also noted that it expects to close its sale of the salt producing company, Morton Salt under Rohm and Haas to the Germany-based K+S AG for $1.68 billion in second half of 2009. K+G AG is an agricultural chemical and salt company and the largest supplier of Potash in Europe. The company is also divesting its stake in Optimal Group of Companies to Malaysia's state-controlled oil company for $660 million by the end of the year.

This apart, media reported that Dow Chemical and Saudi Aramco are expecting cost synergies of about $4 billion on their joint petrochemical complex as the slowing economy reduces project cost. The estimated cost of the plant was at least $20 billion before reduction. Saudi Aramco is the state-owned national oil company and the biggest oil corporation in the world with the largest proven crude oil reserves and production.

We maintain our Neutral recommendation on the stock.

Read the full analyst report on "DOW"
Read the full analyst report on "TOT"
Zacks Investment Research

EOG: Mixed Bag in Second Quarter – Analyst Blog

Zacks Market Commentaries — Fri, 07 Aug 2009 17:56:00 +0000

EOG Resources Inc. (EOG) reported second quarter earnings of 73 cents per share, compared with the Zacks Consensus Estimate of 43 cents per share and a year-ago profit of $2.52 per share.

The severe year-over-year downfall in earnings was due to a significant decrease in commodity-price realizations, partially offset by sound domestic volumes. Including one-time items, EOG posted a loss of 7 cents per share versus 71 cents per share in the year-earlier quarter.

Production

Total volumes during the quarter increased more than 8% year-over-year to 189 billion cubic feet equivalent (Bcfe) or 2,077 million cubic feet equivalent per day (MMcfe/d) (79% natural gas, 21% liquids). Natural gas volumes grew 4% year-over-year, led by an approximately 5% increase in Canadian volumes to 225 MMcf/d and nearly 23% increase in Trinidad volumes to 266 MMcf/d. The U.S. volume was essentially flat year-over-year.

The increase in Canada can be attributable to the British Columbia Horn River Basin production, while in Trinidad, volume growth was driven by increased contractual demand.

Crude oil and condensate production during the quarter was 48.9 thousand barrels per day (MBbl/d), up nearly 19% from the year-ago level. This was primarily driven by a 21% growth in domestic volumes, reflecting increased production in North Dakota. Natural gas liquids (NGL) volumes increased almost 53% from the year-ago quarter to 23.1 MBbl/d on the back of higher volumes from the Fort Worth Basin Barnett Shale.

Management guided towards third-quarter 2009 production in the range of 1,987 - 2,129 MMcfe/d. Full-year production guidance is between 2,050 MMcfe/d and 2,145 MMcfe/d.

Realizations

Average realized natural gas prices decreased roughly 67% year-over-year to $3.07 per Mcf. Prices decreased across all the geographical segments, with domestic realizations down nearly 68% year-over-year to $3.37 per Mcf. Average realized prices for crude oil and condensates decreased approximately 55% year-over-year to $52.47 per barrel.

Prices decreased across all the geographical segments, with domestic realizations down nearly 55% year-over-year to $52.82 per barrel. Quarterly NGL prices were $25.60 per barrel, down approximately 60% year-over-year.

Liquidity and capex

At the end of the quarter, EOG had cash and cash equivalents of $707 million and long-term debt of $2.8 billion, representing a net debt-to-capitalization ratio of approximately 23.2%. During the quarter, EOG generated approximately $787.4 million ($3.14 per share) in discretionary cash flow (DCF), compared to a DCF of $1.37 billion ($5.47 per share) in the year-ago quarter.

The company has set a full-year target of $2.90 billion (excluding acquisitions) for exploration and development activities. Additionally, the company has allocated $280 million for natural gas gathering, processing and other expenditures.

Outlook

We continue to believe that EOG remains better positioned than most of its peers to navigate the current downturn, given its growing resource-play focus and balance sheet strength. The company saw production growth of 15%, 11% and 9% in 2008, 2007 and 2006, respectively.

EOG's deep inventory of natural gas prospects, horizontal drilling expertise and excellent drilling results make it a premier North American producer. Its operating track record is particularly exceptional in the Barnett Shale play. Through its growing Bakken play in North Dakota, EOG's crude oil reserves and volumes are steadily increasing.

Given the company's industry leading organic production-growth profile, strong inventory of drilling opportunities, attractive cost and return metrics, and impressive long-term growth prospects, we see EOG as a core holding in the large-cap E&P space. Therefore, we recommend an Outperform rating for EOG shares.
Read the full analyst report on "EOG"
Zacks Investment Research

Oil Prices Due for a Short-Term Setback, Although Long-Term Outlook Remains Bullish

Contrarian Profits — Mon, 06 Jul 2009 16:01:40 +0000

div class="entry" pWhile the long-term outlook for oil prices remains bullish, don’t be surprised to see a near-term correction. After tumbling to a low of $33.98 a barrel on Feb. 12, crude oil more than doubled in price, soaring to $69.82 on the New York Mercantile Exchange (Nasdaq: a href="http://www.google.com/finance?q=NASDAQ%3ACME" target="_blank"CME/a) – before tumbling nearly 4% on Thursday on a worse-than-expected jobs report./p pIndeed, strongema href="http://www.moneymorning.com" class="alinks_links"Money Morning/a/em/strong predicted precisely that kind of a run-up for crude oil, a href="http://www.moneymorning.com/2008/12/29/oil-2009/" target="_blank"first in January/a and then a href="http://www.moneymorning.com/2009/04/16/opec-oil-prices/" target="_blank"again on April 16/a./p pAs a basis for those previous analyses of the oil market, we cited the declining value of the U.S. dollar, falling production, and the possibility that demand for oil would soar as the global economy emerges from the worst financial crisis since World War II. And those factors#8230;/p/div

Axial Vector Energy Corp. (AXVC.PK) JV’s Recently Announced Russian Patent for Oil Technology

QualityStocks — Fri, 12 Jun 2009 16:55:02 +0000

In May, Axial Vector Energy Corp. announced that its PETRO AVEC Joint Venture partner, Petrosonics LLC, recently received a Russian patent protecting the purification process that removes sulfur and nitrogen compounds from diesel oil, FCC cycle oil, FCC slurry oil, light/heavy gas oil and coker gas oil fractions. The patent will remain in effect for [...]

Axial Vector Energy Corp. (AXVC.PK) Recruits Muse Stancil for Independent Review of Crude Oil Upgrading Technology

QualityStocks — Wed, 27 May 2009 17:26:31 +0000

Axial Vector Energy Corp. (AVEC) focuses on the international engine and global energy markets by providing technology solutions for military, industrial and commercial applications. The company earlier this month announced that Muse Stancil will execute an independent review for AVEC’s Oxidating Desulphurization and Heavy Crude Oil Upgrading technology, which the company acquired through its joint [...]

Axial Vector Energy Corp. (AXVC.PK) JV Partner Granted Patent in Russia, the Second Largest Crude Oil Producer

QualityStocks — Mon, 18 May 2009 12:45:23 +0000

Axial Vector Energy Corporation announced this morning that its PETRO AVEC Joint Venture partner, Petrosonics LLC, was recently awarded a Russian patent that protects the process by which sulfur and nitrogen bearing compounds are removed from diesel oil, FCC cycle oil, FCC slurry oil, light gas oil, heavy gas oil and coker gas oil fractions, [...]

My Three Top Asian Energy Companies …

Larry Edelson — Thu, 04 Sep 2008 07:30:00 +0000

I'm writing this while on a short holiday in Macau, Asia's booming Las Vegas. And let me tell you (again) — judging by what I'm seeing in Macau, there are very few signs of a slowdown in ...