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 michael.bodino@smhcapital.com and 504-799-3565; Corales at brian.corales@smhcapital.com, 504-799-3570; and Glick at michael.glick@smhcapital.com, 504-799-3569. SMH Capital is a business of Sanders Morris Harris.
Bodino is director of research and senior E&P analyst, covering E&P with Corales. Mark Reichman is covering MLPs, and Bill Conroy is covering oilfield services.
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.
–Nissa Darbonne, Executive Editor, Oil and Gas Investor, A&D Watch, OilandGasInvestor.com Today, OilandGasInvestor.com, A-Dcenter.com; ndarbonne@hartenergy.com
Recommended Reading
Haynesville to Lead Gas Production Growth in 2023
2023-03-30 - Enverus expects the Haynesville to lead gas production growth in 2023 and then fall thereafter before growing again between 2025 and 2027, Bernadette Johnson, the firm’s general Manager, said at Hart Energy’s DUG Haynesville conference in Shreveport, Louisiana.
Southwestern’s Haynesville Chief on M&A, Gulf Coast Advantages and RSG [WATCH]
2023-03-30 - Andy Huggins, senior vice president of the Haynesville division at Southwestern Energy Co. discusses M&A, how the company’s Appalachia and Haynesville assets complement each other and efforts to certify its natural gas as responsibly sourced, particularly for utilities and end-users in Europe.
Public, Private E&Ps Split on Permian Basin Drilling Strategies
2023-03-29 - The Permian led the nation in drilling rig activity in the past year, with data showing much of that growth coming from large, public upstream operators as private companies such as CrownQuest Operating, Iskandia Energy and Mack Energy have downshifted.
McDermott Wins Manatee FEED
2023-03-28 - The Trinidad and Tobago Manatee field is planned to start production in 2027.
Electrifying the Permian: BPX Energy Touts Emissions Reductions in the Basin
2023-03-28 - BPX Energy’s electrification efforts in the Permian Basin and the installation of centralized handling facilities are part of the operator’s roadmap to net zero emissions.