Diversified Sector Trader’s Alert: Ivanhoe Energy (NASDAQ:IVAN), BPZ Resources, (NYSE:BPZ), CARBO Ceramics (NYSE:CRR), MRC Global (NYSE:MRC)
Oil prices undergo a little change in the early hours of Friday trade, around $51 a barrel, following U.S. crude cut down heavy losses Thursday on U.S. Energy Information Administration data that demonstrated inventories inclined by 7.7 million barrels last week—half of what the American Petroleum Institute had originally pointed out.
On Friday, for a third straight session, Canadian stocks ended lower, pulled down by energy stocks since crude oil prices kept on to trend lower as worries of a supply glut resurfaced, after data from the Energy Information Administration yesterday demonstrated crude supplies in the U.S. to have surged more than predictable last week to a record high, the heavyweight financial and mining sectors also under pressure.
The main index cut down some of the losses following the news disclosing a deal between Athens and the eurozone countries to widen Greeces financial aid program. The finance ministers of the eurozone countries meeting in Brussels decided to enlarge Greeces bailout funding program by four months after Athens assured to honor all its arrears.
U.S. crude oil stocks gained 7.7 million barrels in the week ended February 13, while analysts predicts a lift of 3.1 million barrels. The EIA report illustrated U.S. crude oil stocks at 425.6 million barrels end last week. Gasoline stocks raised by 0.5 million barrels last week, while analysts anticipated an raise of 0.4 million barrels.
The Energy Index dipped 0.66 percent with U.S. crude oil futures for March delivery, peeling $0.82 or 1.6 percent to settle at $50.34 a barrel on the New York Mercantile Exchange Friday.
Among energy stocks, Ivanhoe Energy Inc. (NASDAQ:IVAN), dipped -39.43% to settle at $0.424, hitting new 52-week low of $0.35, in its last trade following the news release that an independent international heavy-oil exploration and development company, declared that, with the authorization and approval of its board of directors, the company has made a determination to file a Notice of Intention to Make a Proposal (Notice of Intention) following the provisions of Part III of the Bankruptcy and Insolvency Act (BIA) (Canada).
Following the Notice of Intention, Ernst & Young Inc. (EY) has been designated as the trustee in the companys proposal proceedings (the Proposal Trustee) and in that capacity will monitor and assist the company in its restructuring efforts.
It was determined by the companys board of directors that as a result of the companys current financial situation, seeking protection under the BIA would be in the best interests of the company and all of its stakeholders. While under BIA protection, the company will continue with its efforts to pursue planned alternatives, counting restructuring its existing debt obligations and pursuing the sale of assets.
Ivanhoe Energy Inc. (NASDAQ:IVAN), is an independent international heavy-oil exploration and development company focused on pursuing long-term growth using advanced technologies, counting its proprietary heavy-oil upgrading process (HTL®).
BPZ Resources, Inc. (NYSE:BPZ), dropped -12.41% to settle at $0.25, in its last trade. The company holds the market capitalization of $28.52M. The stock traded on below 20-day moving average of -6.99%, below 50-day moving average of -0.15%, and below 200-day moving average of -85.83%. The stock has the beta value of 1.66, and is 19.12% volatile for the week, and 17.86% for the month.
A mining company, formerly on February 9, declared the results of an independent evaluation of the Companys certified year-end 2014 oil reserves at offshore Block Z-1.
The following discussion comprises BPZ Energys 51% interest in oil reserves and associated production for the Albacora and Corvina fields at Block Z-1. Oil reserves are presented under the usual categories of proved developed producing (PDP), proved developed non-producing (PDNP), proved undeveloped (PUD), total proved (P1), probable (P2), and possible (P3) reserve estimates. These oil reserve estimates were prepared by the Companys independent reserve auditors Netherland Sewell & Associates, Inc. (NSAI). No gas reserves have been certified by the Company under U.S. Securities and Exchange Commission (SEC) standards, as a commercial market is still under development. The Company continues to develop a gas strategy to supply natural gas to the regional market and for a multi-country project.
BPZ Energy stated net proved reserves of 13.6 million barrels of oil (Mmbo) as of December 31, 2014. The 2014 reserve report used a $99.65 per barrel price, which is the 12-month unweighted arithmetic average of the first-day-of-the month contract price for each month in the period January through December 2014. A Form 8-K is being filed which will comprise a copy of this release and the NSAI reserve letter.
BPZ Resources, Inc. (NYSE:BPZ), is an independent oil and gas exploration and production company with license contracts covering 1.9 million net acres in four blocks located in northwest Peru. Current operations in these blocks range from early-stage exploration to production.
CARBO Ceramics Inc. (NYSE:CRR), dwindled -6.76% to settle at $36.95, in its last trade, as an oilfield services technology company, manufactures and sells ceramic proppants, resin-coated ceramic, and resin-coated sand proppants, formerly stated adjusted net revenue of $16.1 million, or $0.70 per share, not including certain asset write downs and other adjustments of $15.7 million, or $0.68 per share, on proceeds of $167.8 million for the quarter ended December 31, 2014. Stated net revenue for the fourth quarter of 2014 was $0.4 million, or $0.02 per diluted share.
Fourth Quarter Results:
Proceeds for the fourth quarter of 2014 raised 2 percent, or $3.3 million, contrast to the fourth quarter of 2013. The raise is mainly attributable to an raise in proppant sales volumes.
Operating profit for the fourth quarter of 2014 reduced 60 percent, or $18.8 million, contrast to the fourth quarter of 2013. The decrease is mainly attributable to a $10.2 million impairment to adjust the carrying value to estimated net realizable value of certain long-lived assets in China. The Company also recorded a $2.6 million adjustment in cost of sales to reduce the value of certain inventory in China down to lower market prices. In addition, operating profit was reduced by an raise in SG&A expense and a reduced contribution from some of the Companys other business units.
CEO Gary Kolstad commented, We achieved higher proppant sales volumes in the fourth quarter of 2014 contrast to the third quarter of 2014. However, we practiced a reduction in ceramic proppant demand later in the quarter due to the large drop in oil price and seasonality. During the second half of the year, we managed through a difficult environment that comprised of both E&P operators experimenting with the raised use of raw frac sand and an oversupply of ceramic proppant. We remained focused on our mission enhancing the production of our clients wells through differentiated technology and quality products.”
CARBO Ceramics Inc. (NYSE:CRR), is the supplier of ceramic proppant and the resin-coated sand. The Company is the provider of the fracture simulation software, and a provider of fracture design and consulting services, and a range of technologies for spill prevention, containment and countermeasures. The Company sells its products and services to operators of oil and natural gas wells, and to oilfield service companies.
MRC Global Inc. (NYSE:MRC), plummeted -6.59% to settle at $12.61, in its last trade, following the news release that the largest global distributor, based on sales, of pipe, valves and fittings (PVF) and related products and services to the energy industry, declared fourth quarter and annual 2014 results.
The companys sales were $1.512 billion for the fourth quarter of 2014, which were 12.5% higher than the fourth quarter of 2013. Net revenue for the fourth quarter of 2014 was $31.2 million, or $0.30 per diluted share, contrast to fourth quarter 2013 net revenue of $23.3 million, or $0.23 per diluted share.
Adjusted diluted earnings per share (EPS) were $0.33 per diluted share for the fourth quarter of 2014 as contrast to adjusted diluted EPS for the fourth quarter of 2013 of $0.32 per diluted share. Please refer to the reconciliation of adjusted net revenue (a non-GAAP measure) to net revenue (a GAAP measure) comprised of in this release.
MRC Globals fourth quarter 2014 gross profit was $248.5 million, or 16.4% of sales as contrast to gross profit of $226.0 million, or 16.8% of sales for the fourth quarter of 2013. Fourth quarter 2014 and fourth quarter 2013 gross profit reflected a charge of $5.9 million and $1.1 million to cost of sales regarding the use of the LIFO method of inventory cost accounting, respectively. Gross profit margins in the quarter were also influenced by lower margins in our International segment.
Selling, general and administrative (SG&A) expenses were $174.4 million for the fourth quarter of 2014, or 11.5% of sales, contrast to $167.4 million, or 12.4% of sales, in the same period of 2013. The raise of $7.0 million comprised of $19.7 million of incremental expense from attained businesses offset by the influence from cost reduction initiatives formerly declared.
Andrew R. Lane, MRC Globals chairman, president and chief executive officer stated, We had a good fourth quarter in light of the falling oil prices during the quarter. Fourth quarter proceed of $1.512 billion and adjusted EBITDA of $102 million was the second best fourth quarter in the companys history surpassed only by 2008. For 2014, the $5.933 billion in proceed was a record for our company, and the $424 million in adjusted EBITDA was the third best year surpassed only by 2012 and 2008, both years having much higher carbon pipe pricing than in 2014. On a net revenue basis, the $144 million was the third best in company history surpassed only by 2008 and 2013.
Headquartered in Houston, Texas, MRC Global Inc. (NYSE:MRC), a Fortune 500 company, is the largest global distributor, based on sales, of pipe, valves and fittings (PVF) and related products and services to the energy industry and supplies these products and services across each of the upstream, midstream and downstream sectors. More information about MRC Global can be found on our website mrcglobal.com.