Archive for Energy

Crude Stocks Fall More Than Expected, Build In Gasoline Stocks Skews Sentiment

By Orbex

Crude oil prices were able to recover initial losses this week as the latest data from the Energy Information Administration showed a larger than forecast draw in stockpiles.

The EIA data for the week ending January 11th, showed US crude inventories falling by 2.7 million barrels versus the expected drawdown of 1.3 million barrels. In Oklahoma, inventories at the Cushing delivery hub were down 743k barrels, while on the East Coast crude stocks hit their lowest levels since 2014.

Following the protracted period of excessive inventory builds last year, bulls strongly welcome news of such a drawdown. However, the report was not all positive as gasoline and distillate inventories were seen rising again.

Gasoline Inventories Exploding

The report showed gasoline stocks rising 7.5 million barrels over the week, versus an expected increase of 255.6 million barrels, marking the largest weekly increase since February 2017. On the Gulf Coast, gasoline stocks rose to 90.96 million barrels, marking fresh record highs for a third consecutive week.

Distillate stockpiles, including diesel and heating oil, were seen higher also. Over the week, stockpiles rose by 3 million barrels, almost double the forecast 1.6 million barrel increase.

US Production Hits New High

US crude production was also seen rising further last week by 200k barrels a day to average 11.9 million barrels per day for the week, marking a new record high.

EIA: OPEC Cuts Won’t Be Enough To Boost Oil Prices

In its latest Short-Term Energy Outlook, the EIA said that it expects OPEC’s combined oil production to be roughly 1 million barrels per day lower, in line with OPEC’s arranged production cuts. However, the EIA feels that this still won’t be enough to cause higher prices given the trend among non-OPEC producers, specifically the US, which are seeing heavy increases in production.

The EIA forecasts oil production from non-OPEC producers to rise 2.4 million barrels per day this year which will more than offset the cuts in OPEC production, keeping oil prices weighted.

Some OPEC Members To Increase Production

Furthermore, while OPEC is trying to enforce production cuts this year, the EIA forecasts that some of its members will actually see increased production.

Angola and Nigeria are both forecast to step up their oil output with Angola having begun production at two new sites last year which will be expanded this year. In Nigeria, the offshore Egina site began production at the start of the year and at peak capacity is expected to deliver around 200k barrels per day, roughly 10% of Nigeria’s current production rate.

Technical Perspective

The weekly chart in Oil shows the severity of the decline over the last three months of 2018 as well as the many key resistance levels sitting just above.

forex oil

Price is now rebounding higher and approaching resistance at the 55.45 level which was key resistance over 2016 and 2017. Above that, we have the 59.12 level, which was the closing low in February 2018. Higher still we have the 62.52 level, which was the 2015 high, along with a retest of the broken bullish trend line from 2015 lows and a raft of prior swing lows made last year before the decline.

If we see price stalling around the 55.45 – 59.13 level, this could prove to be the right shoulder of a large head and shoulders pattern, suggesting further and deeper downside for oil prices over the coming year.

By Orbex

 

Target Price Raised on U.S. Oil & Gas Company on ‘Positive Q4 Ops Update’

The Energy Report

Source: Streetwise Reports   01/15/2019

A Raymond James report reviewed the Q4/18 numbers and its 2019 projections.

In a Jan. 10 research note, analyst John Freeman reported that Raymond James increased its target price on Chesapeake Energy Corp. (CHK:NYSE) to $4 per share from $3.50 following reports of a positive Q4/18 and accounting for the Wildhorse acquisition in its model. The stock’s current share price is about $2.84.

Freeman noted that Q4/18 figures beat expectations primarily on lower-than-expected capex. Spending for Q4 should be around $545 million, lower than consensus’ projection of $597 million and Raymond James’ estimate of $629 million.

As for production during Q4/18, management said it should range from 462,000 to 464,000 barrels of oil equivalent per day (Mboe/d), with oil volumes between 86 and 87 million barrels per day (Mbpd). The latter compares to the Street’s estimate of 85 Mbpd and Raymond James’ forecast of 86 Mbpd.

Freeman relayed that in 2019, Chesapeake plans to reduce activity due to commodity price weakness. It will eliminate three rigs in the Haynesville play, taking the total number of rigs on all of its properties to 18.

“We believe this is a prudent measure that, given our capital spending outlook for 2019, should help to lower cash flow outspend to a palatable level while allowing Chesapeake to continue its pivot to a more oily operator (oil cut should rise from 17% in 2018 to about 30% in 2020),” wrote Freeman.

Raymond James estimates Chesapeake’s oil production will be about 122,000 barrels per day (122Mbbl/d), lower than previous guidance of 125–130 Mbbl/d. Exploration and production capex in 2019 should be about $2.25 billion. The company will announce formal guidance for 2019 later in the quarter.

On a final note, Freeman commented it is likely that this year Chesapeake will divest of further assets, particularly ones that are undeveloped or generating little cash flow, to boost its balance sheet even though near-term liquidity is good.

Raymond James has an Outperform rating on Chesapeake.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Raymond James, Chesapeake Energy Corp., January 10, 2019

ANALYST INFORMATION

Analyst Compensation: Equity research analysts and associates at Raymond James are compensated on a salary and bonus system. Several factors enter into the compensation determination for an analyst, including i) research quality and overall productivity, including success in rating stocks on an absolute basis and relative to the local exchange composite Index and/or a sector index, ii) recognition from institutional investors, iii) support effectiveness to the institutional and retail sales forces and traders, iv) commissions generated in stocks under coverage that are attributable to the analyst’s efforts, v) net revenues of the overall Equity Capital Markets Group, and vi) compensation levels for analysts at competing investment dealers.

The analyst John Freeman, primarily responsible for the preparation of this research report, attests to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers and (2) that no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views in this research report. In addition, said analyst(s) has not received compensation from any subject company in the last 12 months.

RAYMOND JAMES RELATIONSHIP DISCLOSURES
Certain affiliates of the RJ Group expect to receive or intend to seek compensation for investment banking services from all companies under research coverage within the next three months.

Raymond James & Associates, Inc. makes a market in the shares of Chesapeake Energy Corporation and WildHorse Resource Development Corporation.

Raymond James & Associates received non-securities related compensation from WildHorse Resource Development Corporation within the past 12 months.

( Companies Mentioned: CHK:NYSE,
)

Natural Gas Analysis: Cold snap is expected in the US. Will natural gas prices rise?

By IFCMarkets

Cold snap is expected in the US

U.S. National Weather Service forecasts cold snap in the United States. Will natural gas prices rise?

The growth of natural gas prices may be due to an increase in demand for heating amid cold weather. Let us not that the volume of trades of natural gas on the New York Mercantile Exchange updated the historical high in November-December 2018. This may indicate an increase in liquidity. The beginning of cold snap in the US is expected on January 19 and it can last several weeks. According to forecasts, the demand for natural gas may increase next week to 125.9 billion cubic feet per day from 116.5 billion cubic feet per day in the current week. Gas supply in the US should amount to 95.6 billion cubic feet per day. The difference between supply and demand will be covered at the expense of reserves. According to the U.S. Energy Information Administration, at the beginning of this week, they amounted to 2.614 trillion cubic feet in the US, which is 15% less than the average level for the last 5 years. Data on US gas reserves are published weekly on Thursdays and may affect the dynamics of Natgas prices.

Natgas

On the daily timeframe, Natgas: D1 has breached up the resistance line of the downtrend and is correcting upwards. A number of technical analysis indicators formed buy signals. The further price growth is possible in case of an increase in demand amid cold snap in the US.

  • The Parabolic indicator gives a bullish signal.
  • The Bollinger bands have widened, which indicates high volatility. Both Bollinger bands are titled upwards.
  • The RSI indicator is near 50. No divergence.
  • The MACD indicator gives a bullish signal.

The bullish momentum may develop in case Natgas exceeds its last high at 3.5. This level may serve as an entry point. The initial stop loss may be placed below the last fractal low and the Parabolic signal at 2.84. After opening the pending order, we shall move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we are changing the potential profit/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place there a stop loss moving it in the direction of the trade. If the price meets the stop level (2.84) without reaching the order (3.5), we recommend to close the position: the market sustains internal changes that were not taken into account.

Summary of technical analysis

Position Buy
Buy stop Above 3.5
Stop loss Below 2.84

Market Analysis provided by IFCMarkets

Oil & Gas Firm Revamps 2019 Guidance, Resulting in ‘More Moderate Production Outlook’

The Energy Report

Source: Streetwise Reports   01/11/2019

Changes to this Colorado-based company’s 2019 projections were reviewed in a Stifel report.

In a Jan. 8 research note, analyst Jane Trotsenko reported that Antero Resources Corp. (AR:NYSE) revised its 2019 guidance to reflect a more dour outlook, lowering expected production and raising cash costs and marketing expenses.

As for projected commodity prices for 2019, the company decreased projection for natural gas liquids (NGL) as a percent of West Texas Intermediate to 62.5% from 72%. It increased the anticipated differential for crude oil prices to $7.50 per barrel from $5.50.

Trotsenko explained that less favorable NGL pricing looking forward led the company to lower its expected 2019 production by 3% to 3.2 billion of cubic feet equivalent per day from 3.3 at the midpoint. In 2019 versus 2018, Antero’s NGL production is forecasted to increase 28% year whereas crude oil production is expected to decrease 5%, ultimately resulting in a “slightly higher amount of revenue in 2019 than in 2018,” the analyst wrote.

Regarding capex in 2019, Antero guides to about $2 billion, consistent with that of 2018. However, Trotsenko commented, “the company plans to continue to focus on liquids-rich assets, as those still deliver stronger economics despite the recent decline in liquids pricing.”

Not all the news is negative, Trotsenko indicated. For one, Antero expects to garner a greater premium to Henry Hub pricing, $0.15–0.20 per million cubic feet as opposed to its previous $0.00–0.10 per million cubic feet, due to its now greater Gulf Coast and Midwest exposure.

Also, two of Antero’s peers, Cabot and EQT, also revised production guidance downward, Trotsenko pointed out. “Should other natural gas (and crude oil) producers follow suit, the natural gas (crude oil and NGL) macro outlook for 2019+ could improve substantially.”

Stifel has a Buy rating and a $21.60 per share target price on Antero. The company’s share price (currently about $10.58) could face pressure, Trotsenko noted, when consensus decreases its estimates on the company.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Stifel, Antero Resources Corp., January 8, 2019

I, Jane Trotsenko, certify that the views expressed in this research report accurately reflect my personal views about the subject securities or issuers; and I, Jane Trotsenko, certify that no part of my compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. Our European Policy for Managing Research Conflicts of Interest is available at www.stifel.com.

For a price chart with our ratings and any applicable target price changes for LBRT click here.

Prior to March 22, 2017, a different Stifel research analyst provided research coverage of Antero Resources Corporation and its securities. Antero Resources Corporation’s price chart for the period prior to March 22, 2017 reflects the rating and price target history of the former Stifel research analyst for such issuer and its securities.

Prior to May 22, 2018, a different Stifel research analyst provided research coverage of Antero Resources Corporation and its securities. Antero Resources Corporation’s price chart for the period prior to May 22, 2018 reflects the rating and price target history of the former Stifel research analyst for such issuer and its securities.

Stifel or an affiliate expects to receive or intends to seek compensation for investment banking services from Antero Resources Corporation in the next 3 months.

Stifel or an affiliate is a market maker or liquidity provider in the securities of Antero Resources Corporation.

The equity research analyst(s) responsible for the preparation of this report receive(s) compensation based on various factors, including Stifel’s overall revenue, which includes investment banking revenue.

As a multi-disciplined financial services firm, Stifel regularly seeks investment banking assignments and compensation from issuers for services including, but not limited to, acting as an underwriter in an offering or financial advisor in a merger or acquisition, or serving as a placement agent in private transactions.

( Companies Mentioned: AR:NYSE,
)

Solar Energy Solutions Firm Awarded Contract for New York Installation

The Energy Report

Source: Streetwise Reports   01/13/2019

This project will be in the form of a community-distributed generation model.

UGE International Ltd. (UGE:TSX.V; UGEIF:OTC) signed a contract to develop a community solar power project on New York’s Staten Island, it announced in a news release.

How this type of project works is UGE pays rent to a building owner for roof space on which UGE installs a solar power generation system. The energy created is then sold to community members at a price lower than the current utility rate.

UGE will install the Staten Island project on the roof of a family-owned kitchen cabinetry business. “At 304 kilowatts, the project’s value exceeds $600,000,” the release noted.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: UGE International. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports (including members of their household) own securities of UGE International, a company mentioned in this article.

( Companies Mentioned: UGE:TSX.V; UGEIF:OTC,
)

Cobalt Company Finds Way to Boost Production, Improve Project Economics

The Energy Report

Source: Streetwise Reports   01/10/2019

The implications of efforts to improve production for this pure play are discussed in a Canaccord Genuity report.

In a Jan. 2 research note analyst Eric Zaunscherb reported that eCobalt Solutions Inc. (ECS:TSX; ECSIF:OTCQX; ECO:FSE), while working on an optimized feasibility study for its Idaho Cobalt Project, “identified an opportunity to increase its targeted production rate by 50% from 800 tons per day to 1,200 tons per day.”

He pointed out that “this increase in production should also offer greater cobalt production earlier in the mine life and an increase in cash flow at the beginning of the mine life.”

The extra effort needed to boost the production rate will delay delivery of the feasibility study by “several months,” which investors may be unhappy with, but it is “worth a more robust Idaho Cobalt Project,” Zaunscherb noted. “The work being done by new president Michael Callahan and his growing technical team is essential to getting this project ‘right’ from a technical and financial perspective. So be it.”

Those additional required tasks include modifying the mining sequence, timeline and cost, and conducting necessary engineering for a mill expansion, both to accommodate the higher production level. The company will also need to get quotes to determine feasibility study level costs and define concentrate specifics that will be commercially competitive for offtake agreements. Additional permits for any of this are not needed.

Management said the delay should not affect the timeline for reaching full production, which Canaccord Genuity estimates will be in 2022, Zaunscherb relayed. This milestone will come following underground mine development this year and a ramp-up next year.

Canaccord Genuity has a Speculative Buy rating and a CA$0.90 per share target price on eCobalt Solutions, whose stock is currently trading at around CA$0.53 per share. “We see the sentiment around battery materials correcting in 2019 and this optimized feasibility study as a potential rerating opportunity for the company,” Zaunscherb indicated.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: eCobalt Solutions. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Canaccord Genuity, eCobalt Solutions Inc., Flash Update, January 7, 2019

Analyst Certification: Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research.

Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons of Canaccord Genuity Inc. and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Required Company-Specific Disclosures (as of date of this publication):

eCobalt Solutions Inc. currently is, or in the past 12 months was, a client of Canaccord Genuity or its affiliated companies. During this period, Canaccord Genuity or its affiliated companies provided investment banking services to eCobalt Solutions Inc.

In the past 12 months, Canaccord Genuity or its affiliated companies have received compensation for Investment Banking services from eCobalt Solutions Inc.

Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Investment Banking services from eCobalt Solutions Inc. in the next three months.

Disclosures are available here.

( Companies Mentioned: ECS:TSX; ECSIF:OTCQX; ECO:FSE,
)

Sand Producer to Halt Distribution on Weakening Market Conditions

The Energy Report

Source: Streetwise Reports   01/10/2019

The reasons behind the oilfield services company’s move, along with projections for 2019, are explored in a Raymond James research report.

In a Jan. 7 research note, Raymond James analyst J. Marshall Adkins reported Hi-Crush Partners L.P. (HCLP:NYSE) decided to suspend its quarterly distribution, likely long term, due to the decreased volumes and price deterioration it is experiencing along with oil price uncertainty.

The drop in the company’s volumes was 25% in Q4/18 compared to Q3/18, lower than expected. It is attributed to a reduction in the number of completions due to a declining oil price, operators maxing out their year’s budget and a resulting “significant” sand oversupply, Adkins explained.

“One of the more significant investor concerns regarding Hi-Crush has been the potential for contracts to be renegotiated during the current bout of weakness,” he added. For example, management is currently renegotiating its Kermit mine contracts. With margins per ton falling by about $20 per ton at Kermit, sales of Kermit sand will yield about $96 million of EBITDA in 2019, Raymond James estimates.

As for the future direction of Hi-Crush’s Northern White sand margins, it remains unclear, Adkins noted. On one hand, they are decreasing due to the overall slowing. Raymond James forecasts less overall Northern White tonnage this year, at 5.6 million tons compared to 7.4 million in 2018. “Overall, we currently model in-basin sand pricing falling about 20% in 2019 year over year, compared to a roughly 40% drop in Northern White pricing,” he wrote.

On the other hand, the company continues to benefit from its larger scale and nonsand offerings, including last mile and storage. Those could add further value this year, Adkins indicated, as Hi-Crush continues its expansion into “a rapidly maturing market, where displacing legacy equipment has largely ended and competition amongst silo companies is leading to more aggressive pricing from competitors.” Raymond James forecasts these silo entities could contribute as much as $30 million to Hi-Crush’s EBITDA in 2019.

Raymond James has a Market Perform rating on the company with a current share price of $3.86.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Raymond James, Hi-Crush Partners LP, Company Comment, January 7, 2018

ANALYST INFORMATION

Analysts Holdings and Compensation: Equity analysts and their staffs at Raymond James are compensated based on a salary and bonus system. Several factors enter into the bonus determination, including quality and performance of research product, the analyst’s success in rating stocks versus an industry index, and support effectiveness to trading and the retail and institutional sales forces. Other factors may include but are not limited to: overall ratings from internal (other than investment banking) or external parties and the general productivity and revenue generated in covered stocks.

The analysts J. Marshall Adkins and Praveen Narra, primarily responsible for the preparation of this research report, attest to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers and (2) that no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views in this research report. In addition, said analyst(s) has not received compensation from any subject company in the last 12 months..

RAYMOND JAMES RELATIONSHIP DISCLOSURES
Certain affiliates of the RJ Group expect to receive or intend to seek compensation for investment banking services from all companies under research coverage within the next three months.

Limited Partnerships may generate unrelated business taxable income (UBTI), which can create a tax liability that must be paid from a retirement account. To the extent that Raymond James is your IRA custodian, and there is potential tax liability for UBTI generated by the fund, Raymond James will take the necessary steps to pay the tax from the retirement account by working with a third party to compute the tax liability and prepare the IRS form 990-T for submission to the IRS.

Raymond James & Associates makes a market in shares of HCLP.

Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available here.

( Companies Mentioned: HCLP:NYSE,
)

Lithium Explorer Expands North Carolina Properties by More Than 600 Acres

The Energy Report

Source: Streetwise Reports   01/10/2019

A lithium-focused company adds land at its major projects and submits permit applications.

Piedmont Lithium Ltd. (PLL:NASDAQ; PLL:ASX), a lithium-focused energy company, recently announced that it has increased its exploration land position, bringing it to a total of 1,383 acres.

The company’s flagship project is the Piedmont Lithium Project in North Carolina. Piedmont Lithium’s goal is to become “a strategic domestic supplier of lithium to the increasing electric vehicle and battery storage markets in the U.S.”

According to management, the property expansion highlights are as follows:

  • Properties within the Carolina Tin Spodumene Belt (122 acres).
  • Preferred locations for its concentrator and mine infrastructure (49 acres).
  • Land position at Piedmont Lithium Project increased by 15% to 1,383 acres.
  • Core Property expanded by 93 acres or 18% to a total of 622 acres.
  • Contiguous land acquisitions are along strike.
  • Mineral resource drill targets are being finalized and will be incorporated in upcoming Phase 4 Drill Program.
  • All deals structured as options or deferred purchases to minimize upfront cash outlay.

In the map below, the navy blue areas reflect the Piedmont Lithium project. The red areas represent the company’s new land holdings.

Map
Source: Piedmont Lithium

In additional to the expansion, Piedmont Lithium also controls a 60-acre parcel in Kings Mountain, North Carolina, for the site of its planned chemical plant.

“Piedmont is ideally positioned to deliver leverage on rising lithium prices.” – Brien Lundin, Gold Newsletter

President and CEO Keith Phillips said, “We continue to pursue our strategy of adding to our dominant land position in the Carolina Tin-Spodumene Belt (TSB). We have found high-grade mineralization in over 90% of the holes we’ve drilled on the TSB, and our expectation is that the larger our land position the larger our ultimate resource and mine life will be. We are particularly excited to add 18% to the size of our Core Property and are hopeful that we will be able to expand our mineral resource and mine life proportionately.”

The company explained that in to minimize the use of cash, all of the land additions are controlled via lease/option or deferred purchase contracts with local landowners.

Not only is the surface property included in these contracts but so are the associated mineral rights from the local landowners.

As of June 2018, the current resource has 16.2 million tons @ 1.12% Li2 on the flagship Core Property. Two properties purchased under the recent land expansion have significant potential to add to this resource, according to management.

Late phase 3 drilling results suggest more mineralization on the newly acquired land. Namely, within the 55-acre tract, “one area of subcrop of spodumene bearing pegmatite has been identified, with a grab sample from this subcrop assayed 1.21% Li2O.”

Permit Applications

On January 9, Piedmont announced that it submitted a Section 404 Standard Individual Permit application to the U.S. Army Corps of Engineers, the lead federal agency for the permits, for the Piedmont Lithium Project. At the same time, it submitted a Section 401 Individual Water Quality Certification application to the North Carolina Division of Water Resources.

The company noted that it intends to “submit the balance of permit applications required to commence mining operations to various state and local agencies within the first half of 2019.”

Brand-New Funds and Symbol

To support its flagship project, Piedmont Lithium announced mid-December 2018 that it had completed the first tranche of its placement of 111 million shares at an issue price of AU$0.11 per share.

The company noted that it plans to use the funds to continue exploration and infill drilling at the Piedmont Lithium Project. Management also stated the funds will go toward “permit applications, pilot-scale metallurgy, additional engineering studies, and ongoing land consolidation.”

The second tranche of the placement (3.4 million shares to directors for gross proceeds of AU$0.4 million) will be issued subject to shareholder approval.

Piedmont has also changed its NASDAQ ticker symbol. In mid-December, the company announced that NASDAQ had approved the change of the ticker symbol for the company’s American Depositary Receipts (ADRs) to PLL from PLLL.

The change means the ADRs on the NASDAQ will now match the ticker symbol for the company’s shares on the Australian Securities Exchange.

Piedmont Lithium has caught the attention of industry analysts. Brien Lundin, in the December-January issue of Gold Newsletter, noted, “According to a recent PEA Piedmont produced on its lithium project, it offers a low-cost supply of spodumene. Its $193/tonne net cash costs put it at the low end of cost curve for the world’s lithium concentrate projects. That’s also true of the cash production costs for lithium hydroxide from the project. Those are estimated at $3,111/tonne versus about $5,300/tonne for a typical spodumene mine and $6,165 for a lithium brine operation. . .To give you a sense of the potential here, the PEA pegged the project’s after-tax NPV at $888 million, or more than 17 times Piedmont’s current market cap.

“With the advantages that accrue to an infrastructure-intensive locale like North Carolina, an upcoming expansion drill program and more targets available for testing on a large land position, Piedmont is ideally positioned to deliver leverage on rising lithium prices,” Lundin concluded.

Piedmont’s shares on the NASDAQ currently sit at about $8.24, while its shares on the ASX currently trade at around AU$0.093.

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Disclosure:
1) Nikia Wade compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Piedmont Lithium. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Piedmont Lithium, a company mentioned in this article.

Disclosures from Gold Newsletter, December 2018 – January 2019

The publisher and its affiliates, officers, directors and owner actively trade in investments discussed in this newsletter. They may have positions in the securities recommended and may increase or decrease such positions without notice. The publisher is not a registered investment advisor. Authors of articles or special reports are sometimes compensated for their services.

( Companies Mentioned: PLL:NASDAQ; PLL:ASX,
)

Crude Prices Surge Among Crude Stocks Drawdown, Saudi Arabian Production Cut & US/China Trade Talk Optimism

By Orbex.com

Crude oil prices soared higher this week as a combination of factors boosted prices. Having fallen by around 40% since the high levels seen in 2018, crude oil has come under increasing attention with many market players voicing their concerns over the potential for an extended collapse similar to what was seen in 2014.

The latest industry data released by the energy information administration showed that US crude oil inventories fell again in the week up to Jan 4th, marking the third consecutive week of declines. The EIA report showed that crude stocks were down 1.7 million barrels over the week, though this figure was below the forecast 2.8 million barrel decline that the market was looking for.

Test your strategy on how Oil prices will fare – Open Your Orbex Account Now

Huge Rise in Distillate & Gasoline Inventories

However, the breakdown of the data wasn’t all positive as distillate inventories, which include diesel and heating oil, were seen building by 10.6 million barrels over the same period. This figure was over five times the 1.9 million barrel surplus that the market had forecast.

Gasoline inventories were also higher over the week rising by 8.1 million barrels, the largest weekly increase since December 2016,  again well above the market’s estimate of a 3.4 million barrel increase.

The combination of a smaller than expected decline in crude oil stocks as well as a dramatic increase in refinery products makes for a bearish report. Overall, however, the market seems happy to focus on yet a further drawdown in stocks.

Saudi Arabia Slashes Output

The general improvement in the landscape for the energy sector is what is creating the room for optimism here. Saudi Arabian energy minister Khalid al-Falih told the market on Wednesday that the Kingdom, which is in the top three largest oil producers globally, is on course to meet its target of slashing output by around 900k barrels per day to 10.2 million barrels per day over January.

These comments have boosted optimism in the planned OPEC cuts which are to start this month. The cut will see oil production reduced by around 1.2 million barrels per day among OPEC and a group of allied nations led by Russia. Al-Falih told reporters that he feels production cuts will work effectively to balance the market and also added that further action could be taken if supply once again starts to outstrip demand.

US/China Trade Talks Boosting Sentiment

Oil prices have also been bolstered by a second round of trade talks between the US and China which got underway in Beijing this week. While the market is waiting for details on how the talks progressed, there is a palpable sense of relief among investors visible across equity and commodity markets.

Concerns over a slowdown in China, the worlds largest importer of oil, due to the negative impact of the trade war, have been weighing on oil prices and signs of a potential deal between the US and China are sparking a relief rally.  The progress of these talks will be closely monitored due to Trump’s warning that should the talks fail to produce a deal, US tariffs on Chinese goods will rise to 25% from the current 10% which would weigh heavily on oil prices due to the damage to the Chinese economy.

Technical Perspective

After hitting the 2017 low, and the completion of the large ABCD pattern, the rally in oil prices continues, and price is now fast approaching the 55.31 level which was a key resistance level over 2016 and 2017 and will now be a key near term pivot for price. Above this level, the focus will be on the further upside with a retest of the broken bullish channel base as the next key level to watch.

By Orbex.com

Energy Company Produces Vanadium Concentrate in Utah

The Energy Report

Source: Streetwise Reports   01/07/2019

This miner discussed 2019 plans for its vanadium and uranium projects.

This month, Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.American) produced its first vanadium concentrate, or black flake, from the tailings pond solution at its White Mesa mill, it announced in a news release. “We are extremely pleased with the quality and purity of our initial batches of finished vanadium product,” which should meet or exceed the requirements of potential buyers, President and CEO Mark Chalmers said in the release.

After ramping up vanadium production during Q1/19, the company aims to reach full production of 200,000–225,000 pounds of vanadium by quarter’s end, provided the efforts remain economically viable.

In other news, Energy Fuels plans this year to institute $4.2 million worth of programs at its various projects in preparation for boosting uranium production once the market for the element improves.

These initiatives include continuing test mining at La Sal and potentially starting the same at the Pandora mine there, too, with the goal of determining the best mining method for selectively targeting areas of high-grade vanadium. The company will provide an update on the test mining in Q1/19 and a decision on whether or not it will expand the program.

At its Nichols Ranch in situ recovery plant, the miner will “install new ion exchange capacity” and upgrade other equipment to increase flow and decrease costs, according to the release.

At Alta Mesa, Energy Fuels plans a 200-hole surface drilling program to update and grow the uranium resources there and possibly increase the mine life.

At its Canyon mine, the company will evaluate the copper metallurgy and conduct other development work.

Lastly, Energy Fuels guided to producing 50,000–125,000 pounds of uranium in 2019, 50,000–75,000 pounds of it from Nichols Ranch. As for vanadium, management expects to sustain steady state production of 200,000–225,000 pounds per month, once reached, through the first half of 2020.

The energy firm does not have any sales commitments for uranium in 2019 but expects to sell its vanadium within one to three months of production.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Energy Fuels. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: EFR:TSX; UUUU:NYSE.American,
)