Michael D. Bodino, Brian M. Corales and Michael A. Glick have resurfaced—they’re now running energy research for Houston-based investment banker SMH Capital out of the Metairie, La., office. Bodino can be reached at firstname.lastname@example.org and 504-799-3565; Corales at email@example.com, 504-799-3570; and Glick at firstname.lastname@example.org, 504-799-3569. SMH Capital is a business of Sanders Morris Harris.
The triumvirate left Jackson, Miss.-based Coker & Palmer Investment Securities in late September, resulting in that firm’s suspension of its energy-securities research. Bodino and several colleagues, including Corales, left Sterne Agee in August 2005 to join Coker Palmer and launch the research practice. Bodino was previously with Southcoast Capital, now Capital One Southcoast Inc., from 1999-2003, Sterne Agee from 2003-05. Prior to joining Southcoast, he was with San Jacinto Securities Inc.
“Although most market pundits may not consider this a propitious time to launch coverage on the E&P sector, we vehemently disagree,” Bodino reports. “Given the steep market correction, oil and gas company equities now reflect a combination of lower oil and gas prices, lower growth rates and a higher implied equity return. Thus, the risk/reward pendulum for investing in the group has oscillated.
“While current 2009 economic outlooks do not support a strong fundamental oil and gas demand picture, reduced 2009 capital budgets should impact natural gas production in 2010, and, as the U.S. economy recovers, rising consumption could ameliorate another secular industry upturn that could materially buoy energy equities. Until then, there should be ample seasonal trading opportunities. Below are our initial ratings and price targets for 26 E&P companies.”
For SMH Capital’s institutional clients, he has launched coverage of ATP Oil & Gas (target: $13; rating: Neutral); Bill Barrett Corp. ($35; Accumulate); Brigham Exploration Co. ($10; Buy); Cabot Oil & Gas Corp. ($38; Buy); Carrizo Oil & Gas ($56; Buy); Chesapeake Energy Corp. ($40; Accumulate); CNX Gas Corp. ($40; Buy); Comstock Resources Inc. ($55; Buy); Continental Resources Inc. ($35; Buy); Delta Petroleum Corp. ($8; Neutral); Encore Acquisition Corp. ($35; Accumulate); Energy XXI Ltd. ($4; Accumulate); GMX Resources Inc. ($42; Neutral); Goodrich Petroleum Corp. ($44; Buy); Harvest Natural Resources ($17; Accumulate); Helix Energy Solutions Group ($20; Accumulate); Parallel Petroleum Co. ($9; Neutral); Penn Virginia Corp. ($41; Accumulate); Petrohawk Energy Corp. ($30; Buy); PetroQuest Energy Inc. ($14; Accumulate); Plains Exploration & Production Co. ($46; Buy); Quicksilver Resources Inc. ($18; Accumulate); Range Resources Corp. ($50; Buy); Southwestern Energy Inc. ($44; Buy); Ultra Petroleum Corp. ($77; Accumulate); and XTO Energy Inc. ($60; Buy).
The group covered 20 E&Ps at Coker Palmer. New to their coverage list are Brigham, Cabot, Comstock, Continental, Encore and Penn Virginia at SMH Capital. They have not resumed coverage of Cano Petroleum, Foothills Resources and Storm Cat Energy Corp. The lattermost is in Chapter 11 bankruptcy protection.
Keeping Cybersecurity Top of Mind in the Geophysical World
2023-01-19 - IoT enables geophysical workflows but also introduces vulnerability to cyber attacks.
How Much is a Digital Twin Worth?
2023-01-17 - HUVRdata and VEERUM partnered to engineer digital twin technology that contextualizes inspection data in virtual facilities and asset models.
Raising the Bar for ROV Operator Performance by Lowering the Bar for Entry
2023-01-31 - Technology companies Greensea and Blue Ring’s partnership helps ROV operators become situationally aware without having to “context switch” from task to task.
E&P Tech Trends: Universal's Cementing Sector is Growing Rapidly - Here's Why [WATCH]
2023-02-28 - In this week's episode of Hart Energy LIVE's E&P Tech Trends, Hart Energy technology reporter Jaxon Caines explores the future of Universal's cementing business with director of cementing Deepak Khatri.
E&P Tech Trends: Patterson-UTI's Cortex Automation Sensation [WATCH]
2023-02-14 - In this week's inaugural E&P Tech Trends episode, join Hart Energy senior technology editor Jennifer Pallanich as she explores Patterson-UTI's Rig 567.