These 19 Oil & Gas Stocks Will Die Soon!

Size: px
Start display at page:

Download "These 19 Oil & Gas Stocks Will Die Soon!"

Transcription

1 These 19 Oil & Gas Stocks Will Die Soon! By David Fessler Energy & Infrastructure Strategist The Oxford Club

2 I have been passionate about the oil and gas industry since I began analyzing stocks in the early 1980s. When I wake up every day, I focus in on the energy sector. In my efforts to uncover the next hot stock, I also stumble upon those bubbling with toxicity. That is why I created this time-sensitive Oil Company Death List report. Members are constantly asking, I bought XYZ stocks due to somebody s recommendation. They are losing value. Will the companies make it? Will I get my money back? What should I do? These are great questions. But they are hard to deal with since the law won t allow us as a Club to provide personalized investment advice. Still, these questions are of the highest importance to us at The Oxford Club. So I created this special report to help answer the countless questions surrounding the hard-hit oil and gas sector coming in from our Members. Plummeting Oil Prices Unless you ve been living under a rock for the last few months, you know that oil prices have crashed. Domestic crude is currently trading at 5 1/2-year lows. I have been covering this extensively in our daily e-letter Investment U and our newsletter Oxford Resource Explorer. For many companies operating in the energy sector, these beaten down equities represent a once-in-a-decade opportunity to pick up shares of high quality companies at dirt-cheap prices. And we have been actively recommending the best value plays to our Members. These are high-quality stocks that will easily shake off lower priced oil. And they are primed to lift off when prices start to rebound. But not all companies are in the same boat. Barely Staying Afloat Right now the situation is serious for certain oil companies. These are oil and gas companies who are extremely overleveraged. With oil prices trading in the $40 to $50 range, these 19 stocks are in extreme danger of going belly-up. And some of them are still being recommended by reputable analysts. Most of these companies have very little chance of survival in this lower-priced oil environment. 2

3 The Key to Survival Oil Company Death List For oil and gas companies to survive, they have to reduce spending. That is why many have slashed budgets by double-digit percentages. They know the key to surviving the energy crash in the short term is cash flow. But you can live on cash flow for only so long. In the long run, earnings are what matter. Every day, more and more exploration projects and drilling sites are being axed. And most of their cash reserves are exhausted. Plus, the chance of fresh capital coming in is close to zero! In the beginning of January, Texas-based WBH Energy L.P. was the first oil company to file for bankruptcy protection in The private company stated that its lender refused to advance money. For WBH Energy, the cash flow well had already dried up. And unfortunately, there are many more to come. Swimming in Debt Since the energy boom took off in the U.S., many oil and gas companies took on loads of debt in an effort to leverage their returns. Since 2010, American oil and gas companies have increased their borrowings by 55% to almost $200 billion. The higher risk players acquired leases and drilled wells even if that meant outspending their incomes. At the time, that was a working business model. They used debt to bridge shortfalls in cash so they could keep building up their oil field portfolios. But today, the overleveraging game is coming back to bite them in the butt. Ugly Balance Sheets The oil industry is capital intensive. It requires a lot of equipment to pull black gold out of the ground. That is why you tend to see higher debt loads on oil companies balance sheets compared to the software sector. But there are both companies with healthy levels of debt for the sector and those that are barely on life support. The companies who overextended themselves are now starting to face the music. Defaults are clearly on the horizon. That is why I created the Oil Company Death List, to focus in on those who over-borrowed. It contains publically traded companies listed on U.S. exchanges. These companies are directly involved in oil drilling and/or provide services to the sector. 3

4 High Debt Ratios Spell Toxicity Oil Company Death List To make the death list, a company needs to have a debt to EBITDA (earnings before interest, taxes, depreciation and amortization) ratio of over four. The higher the ratio, the more likely a company won t be able to service its debt. For example, if a company has a debt/ebitda ratio of four, it means that its current total debt is four times greater than the earnings it brought in over the last 12 months. In comparison, the oil and gas industry is averaging a ratio closer to two. Ratios above four should always sound off alarms. Companies above this range are less likely capable of handling their debt burdens. As a result, they are also less likely to be able to take on the additional debt required to grow the business. And that is assuming lenders are even willing to provide more cash. As an added barrier, companies on the death list also have debt to equity ratios above 100%. Higher debt/equity ratios signal that companies have been aggressive in financing their growth with debt. And if the costs of financing debt begin to outweigh the return a company earns on that debt, bankruptcy is right around the corner. Dynamic Duo Both leverage ratios combined tell us that previous earnings might have been inflated thanks to outside financing and that earnings coming in have a long way to go to service that debt. With oil trading down over 50% from its summer highs, it will be even harder for debtsaddled companies to boost income and meet debt obligations. Clearly you know what this means. Any capital you have invested (or might invest) in these 19 overleveraged companies is at extreme risk. So without further ado, I present you with the Oil Company Death List. Companies are listed in alphabetical order for your convenience so you can quickly check your portfolio for death candidates. Investors beware and take action quickly if you own any one of the positions below... this is truly a list of horror. Good investing, David Fessler Energy and Infrastructure Strategist, The Oxford Club 4

5 Oil Company Death List Caution: These 19 Oil & Gas Stocks Are Toxic to Your Portfolio 1. Antero Resources Corp. (NYSE: AR) Founded in Headquartered in Denver, Colorado. Debt/EBITDA: Debt/Equity: %. Return on equity: -5.70%. Profit margins: -9.89%. $4.14 billion in debt with only $6.31 million in cash. Levered free cash flow over the last 12 months: -$2.35 billion. 2. Energy XXI Ltd. (Nasdaq: EXXI) Founded in Headquartered in Houston, Texas. Debt/EBITDA: Debt/Equity: %. Negative earnings projected over the next five quarters. $3.84 billion in debt with only $119.5 million in cash. Stagnant cash flow growth projected for the foreseeable future. 3. EV Energy Partners L.P. (Nasdaq: EVEP) Founded in Headquartered in Houston, Texas.. Debt/EBITDA: Debt/Equity: %. Return on equity: -2.35%. Profit margins: -6.57%. $1.15 billion in debt with only $11.2 million in cash. Levered free cash flow over the last 12 months: -$76.27 million. 4. EXCO Resources Inc. (NYSE: XCO) Founded in Headquartered in Dallas, Texas. Debt/EBITDA: Debt/Equity: %. Return on equity: -23.7%. Profit margins: %. $1.55 billion in debt with only $47.95 million in cash. Negative sales growth in the last quarter. Negative EPS over the last 12 months. Suspended dividend in mid- December Exterran Partners L.P. (Nasdaq: EXLP) Founded in Headquartered in Houston, Texas. Industry: Oil & Gas Equipment and Services Debt/EBITDA: Debt/Equity: %. $1.23 billion in debt with only $275,000 in cash. Levered free cash flow over the last 12 months: -$ million. 5

6 6. Goodrich Petroleum Corp. (NYSE: GDP) Founded in Headquartered in Houston, Texas. Debt/EBITDA: Debt/Equity: %. Return on equity: %. Profit margins: %. $ million in debt with only $2.21 million in cash. Levered free cash flow over the last 12 months: -$ million. Negative sales growth in the last quarter. Negative EPS over the last 12 months. 7. Halcón Resources Corp. (NYSE: HK) Formerly known as RAM Energy Resources Inc. Changed its name to Halcón Resources Corporation in February Headquartered in Houston, Texas. Debt/EBITDA: Debt/Equity: %. Return on equity: %. Profit margins: %. $3.53 billion in debt with only $94.69 million in cash. Levered free cash flow over the last 12 months: -$1.18 billion. Negative EPS over the last 12 months. 8. Hercules Offshore Inc. (Nasdaq: HERO) Founded in Headquartered in Houston, Texas. Debt/EBITDA: Debt/Equity: %. Return on equity: %. Profit margins: %. $1.21 billion in debt with only $ million in cash. Levered free cash flow over the last 12 months: -$136.4 million. Negative sales growth in the last quarter. Negative EPS over the last 12 months. 9. Legacy Reserves L.P. (Nasdaq: LGCY) Founded in Headquartered in Midland, Texas. Debt/EBITDA: Debt/Equity: %. $1.2 billion in debt with only $3 million in cash. Levered free cash flow over the last 12 months: -$4.34 million. Negative EPS over the last 12 months. 10. Linn Energy (Nasdaq: LINE) Founded in Headquartered in Houston, Texas. Debt/EBITDA: Debt/Equity: %. Return on equity: %. Profit margins: %. $12.31 billion in debt with only $59.16 million in cash. Levered free cash flow over the last 12 months: -$2.16 billion. Negative EPS over the last 12 months. Heavily cutting 2015 budget. 6

7 11. LRR Energy L.P. (NYSE: LRE) Founded in Headquartered in Houston, Texas. Debt/EBITDA: Debt/Equity: %. Return on equity: %. Profit margins: %. $ million in debt with only $10.75 million in cash. Negative sales growth in the last quarter. Negative EPS over the last 12 months. 12. Magnum Hunter Resources Crop. (NYSE: MHR) Founded in Headquartered in Houston, Texas. Debt/EBITDA: Debt/Equity: %. Return on equity: %. Profit margins: %. $ million in debt with only $50.90 million in cash. Levered free cash flow over the last 12 months: -$ million. Negative EPS over the last 12 months. 13. Parsley Energy Inc. (NYSE: PE) Founded in Headquartered in Midland, Texas. Debt/EBITDA: Debt/Equity: %. Return on equity: -1.12%. Profit margins: -6.01%. $ million in debt with only $ million in cash. Levered free cash flow over the last 12 months: -$ million. Negative EPS over the last 12 months. 14. Rex Energy Corp. (Nasdaq: REXX) Founded in Headquartered in State College, Pennsylvania. Debt/EBITDA: Debt/Equity: %. $ million in debt with only $87.62 million in cash. Levered free cash flow over the last 12 months: -$ million. Already made 43% cut to 2015 capital expenditure (CAPEX) plans. 15. Sanchez Energy Crop. (NYSE: SN) Founded in Headquartered in Houston, Texas. Debt/EBITDA: Debt/Equity: %. $1.75 billion in debt with only $ million in cash. Levered free cash flow over the last 12 months: -$1.15 billion. Slashed 2015 CAPEX budget by 60%. 16. TETRA Technologies (NYSE: TTI) Founded in Headquartered in The Woodlands, Texas. Industry: Oil & Gas Equipment and Services 7

8 Debt/EBITDA: Debt/Equity: %. Return on equity: -3.81%. Profit margins: -3.07%. $ million in debt with only $36.22 million in cash. Levered free cash flow over the last 12 months: -$55.14 million. Negative EPS over the last 12 months. 17. Vanguard Natural Resources (Nasdaq: VNR) Founded in Headquartered in Houston, Texas. Debt/EBITDA: Debt/Equity: %. $1.92 billion in debt with only $43.96 million in cash. Levered free cash flow over the last 12 months: -$1.18 billion. 18. Vantage Drilling Company (NYSE: VTG) Founded in Headquartered in Houston, Texas. Debt/EBITDA: Debt/Equity: %. $2.79 billion in debt with only $81.32 million in cash. Downgraded earnings estimates. 19. Warren Resources Inc. (Nasdaq: WRES) Founded in Headquartered in New York, New York. Debt/EBITDA: Debt/Equity: %. $ million in debt with only $1.78 million in cash. Levered free cash flow over the last 12 months: -$316.2 million. 8

9 From time to time, The Oxford Club will discuss investment ideas that will not be included in the Club s various portfolios. There are certain situations where we feel a company may be an extraordinary value but may not necessarily fit within the selection guidelines of these existing portfolios. In these cases, the recommendations are to be considered speculative and should not be considered part of any of the Club s portfolios. Also, by the time you receive this report, there is a chance that we may have exited a recommendation previously included in one of our portfolios. Occasionally, this happens because we use a disciplined trailing stop philosophy with our investments, meaning that any time a company s share price falls 25% from its high, we sell the stock. If you have any questions about your Oxford Club membership, subscription status please contact us at Monday Friday between 9 a.m. and 5 p.m. Eastern Time. Or if calling internationally please call present The Oxford Club, LLC All Rights Reserved The Oxford Club 105 West Monument Street Baltimore, MD North America: International: Question? Comment? Need help? Contact us at oxfordclub.com/contact-us. The Oxford Club is a financial publisher that does not act as a personal investment advisor for any specific individual. Nor do we advocate the purchase or sale of any security or investment for any specific individual. Club Members should be aware that although our track record is highly rated by an independent analysis, and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. Likewise, our past performance does not assure the same future results. All of the recommendations communicated to members during the life of this service may not be reflected here. The stated returns may also include option trades. We will send all our members regular communications with specific, timely strategies and updated recommendations; however, you should not consider any of the communications by our company and employees to you as personalized investment advice. Note that the proprietary recommendations and analysis we present to members is for the exclusive use of our membership. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. This newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the worldwide web), in whole or in part, is strictly prohibited without the express written permission of The Oxford Club, LLC. 105 W. Monument Street, Baltimore MD The Oxford Club 105 West Monument Street Baltimore, Maryland

How to Select the Right Financial Advisor

How to Select the Right Financial Advisor Q3 2013 Oxford Communiqué Investor Report: How to Select the Right Financial Advisor By The Oxford Club Research Team NOTE: The Oxford Club is not a broker, dealer or licensed investment advisor. No person

More information

How to Collect Reverse Income Tax Payouts Four Times a Year

How to Collect Reverse Income Tax Payouts Four Times a Year Q2 2013 Oxford Communiqué Investor Report: How to Collect Reverse Income Tax Payouts Four Times a Year By Chris Mathai, Research Team, The Oxford Club NOTE: The Oxford Club is not a broker, dealer or licensed

More information

How to Turn Your Stocks into ATMs

How to Turn Your Stocks into ATMs A Publication of The Sovereign Society How to Turn Your Stocks into ATMs By Chad Shoop The Sovereign Society 55 NE 5th Avenue, Suite 200 Delray Beach, FL 33483 USA USA Toll Free Tel: (888) 272-0413 Contact:

More information

How to Turn Your Brokerage Account Into an ATM

How to Turn Your Brokerage Account Into an ATM A Publication of The Sovereign Society How to Turn Your Brokerage Account Into an ATM By Jeff D. Opdyke, Executive Editor The Sovereign Society 55 N.E. 5th Avenue, Suite 200 Delray Beach, FL 33483 USA

More information

Three Hot Commodity Stocks For 2016

Three Hot Commodity Stocks For 2016 $49.00 $49.00 Three Hot Commodity Stocks For 2016 Energy Markets In Distress Ask anyone who watches the energy markets religiously, and they ll tell you the same thing... The price of oil and natural gas

More information

January 2009. The 12% Letter. The World s Greatest Income Secret

January 2009. The 12% Letter. The World s Greatest Income Secret January 2009 The 12% Letter The World s Greatest Income Secret The World s Greatest Income Secret By Jeff Clark I want to introduce you to an income secret that could easily give you all the money you

More information

Today s Agenda. DFR1 and Quiz 3 recap. Net Capital Expenditures. Working Capital. Dividends. Estimating Cash Flows

Today s Agenda. DFR1 and Quiz 3 recap. Net Capital Expenditures. Working Capital. Dividends. Estimating Cash Flows Today s Agenda DFR1 and Quiz 3 recap Net Capital Expenditures Working Capital Dividends Estimating Cash Flows Net Capital expenditures Net capital expenditures = capital expenditures - depreciation Depreciation

More information

Global Growth Strategist Trading Manual

Global Growth Strategist Trading Manual A Publication of The Sovereign Society Global Growth Strategist Trading Manual How to Access Investment Opportunities in the Very Best of America s Emerging Baby Multinationals By Jeff Opdyke, Editor,

More information

For high-yield bonds, market volatility can bring new opportunities

For high-yield bonds, market volatility can bring new opportunities Investment Perspectives For high-yield bonds, market volatility can bring new opportunities Kevin Lorenz and Jean Lin, portfolio managers for TIAA-CREF High-Yield Fund Article Highlights: The decline in

More information

Leveraged Buyout Model Quick Reference

Leveraged Buyout Model Quick Reference Leveraged Buyout (LBO) Model Overview A leveraged buyout model shows what happens when a private equity firm acquires a company using a combination of equity (cash) and debt, and then sells it in 3-5 years.

More information

Protect Your Portfolio

Protect Your Portfolio 1 Protect Your Portfolio 2013 Phoenix Capital Research, OmniSans Publish, LLC. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This newsletter may only

More information

WE live in times of unprecedented scientific advances and expanded predictability. Yet most

WE live in times of unprecedented scientific advances and expanded predictability. Yet most WE live in times of unprecedented scientific advances and expanded predictability. Yet most economists, politicians, businessmen and investors fail to recognize the most powerful insight in modern times:

More information

The One Indicator to Find the Best Income and Dividend Stocks

The One Indicator to Find the Best Income and Dividend Stocks The One Indicator to Find the Best Income and Dividend Stocks A Special Research Report from The Dividend Hunter Introduction By Tim Plaehn We are in a period of time when more and more investors are moving

More information

Types of Debt & Debt Lingo Quick Reference. http://breakingintowallstreet.com. Here s the 10-second version of everything you need to know about debt:

Types of Debt & Debt Lingo Quick Reference. http://breakingintowallstreet.com. Here s the 10-second version of everything you need to know about debt: Here s the 10-second version of everything you need to know about debt: Debt Type Revolver Term Loan A Term Loan B Senior Notes Subordinated Notes Mezzanine Interest Rate: Lowest Low Higher Higher Higher

More information

Various Rating Actions Taken On 23 U.S. Oil And Gas Exploration And Production Companies

Various Rating Actions Taken On 23 U.S. Oil And Gas Exploration And Production Companies Various Rating Actions Taken On 23 U.S. Oil And Gas Exploration And Production Companies Primary Credit Analyst: Carin Dehne-Kiley, CFA, New York (1) 212-438-1092; carin.dehne-kiley@standardandpoors.com

More information

Chapter 8 Financial Statement Analysis

Chapter 8 Financial Statement Analysis Chapter 8 Financial Statement Analysis rue/false Questions F 1. Balance sheet items are carried at original cost or market value at the discretion of the individual firm. F 2. A primary use of the sources

More information

Strategic Advisors. Marketing Presentation Recapitalizations May 2005. Middle Market Investment Bankers

Strategic Advisors. Marketing Presentation Recapitalizations May 2005. Middle Market Investment Bankers Marketing Presentation Recapitalizations May 2005 Strategic Advisors Middle Market Investment Bankers 400 Southpointe Blvd. Plaza I, Suite 120 Canonsburg, PA 15317 (724) 743-5800 www.strategicad.com An

More information

Investing Versus Gambling (03/02/2015)

Investing Versus Gambling (03/02/2015) Stock Market Barometer The Most Influential Financial Newsletter Read By Over 500 Hedge Fund Managers and Thousands of Elite Investors ~ March 2,2015 Investing Versus Gambling (03/02/2015) TREND ALERT

More information

Memorial Production Partners LP Announces Second Quarter 2015 Results, Cash Distribution Update, Updated Hedges and Updated 2015 Guidance

Memorial Production Partners LP Announces Second Quarter 2015 Results, Cash Distribution Update, Updated Hedges and Updated 2015 Guidance August 5, 2015 Memorial Production Partners LP Announces Second Quarter 2015 Results, Cash Distribution Update, Updated Hedges and Updated 2015 Guidance HOUSTON, Aug. 5, 2015 (GLOBE NEWSWIRE) -- Memorial

More information

What Do Short-Term Liquidity Ratios Measure? What Is Working Capital? How Is the Current Ratio Calculated? How Is the Quick Ratio Calculated?

What Do Short-Term Liquidity Ratios Measure? What Is Working Capital? How Is the Current Ratio Calculated? How Is the Quick Ratio Calculated? What Do Short-Term Liquidity Ratios Measure? What Is Working Capital? HOCK international - 2004 1 HOCK international - 2004 2 How Is the Current Ratio Calculated? How Is the Quick Ratio Calculated? HOCK

More information

SMG... 2 3 4 SMG WORLDWIDE

SMG... 2 3 4 SMG WORLDWIDE U S E R S G U I D E Table of Contents SMGWW Homepage........... Enter The SMG............... Portfolio Menu Page........... 4 Changing Your Password....... 5 Steps for Making a Trade....... 5 Investor

More information

FREQUENTLY ASKED QUESTIONS March 2015

FREQUENTLY ASKED QUESTIONS March 2015 FREQUENTLY ASKED QUESTIONS March 2015 Table of Contents I. Offering a Hedge Fund Strategy in a Mutual Fund Structure... 3 II. Fundamental Research... 4 III. Portfolio Construction... 6 IV. Fund Expenses

More information

www.optionstradingresearch.com

www.optionstradingresearch.com Top Three Options Trades For 2016! Introduction Welcome to our free report, "The Top 3 Options Trades For 2016". Options have changed the way both professionals and casual market participants trade and

More information

Business Value Drivers

Business Value Drivers Business Value Drivers by Kurt Havnaer, CFA, Business Analyst white paper A Series of Reports on Quality Growth Investing jenseninvestment.com Price is what you pay, value is what you get. 1 Introduction

More information

Short Selling Tutorial

Short Selling Tutorial Short Selling Tutorial http://www.investopedia.com/university/shortselling/ Thanks very much for downloading the printable version of this tutorial. As always, we welcome any feedback or suggestions. http://www.investopedia.com/investopedia/contact.asp

More information

Subject Company: LRR Energy, L.P. Commission File No. 001-35344

Subject Company: LRR Energy, L.P. Commission File No. 001-35344 Filed by Vanguard Natural Resources, LLC Commission File No. 001-33756 Pursuant to Rule 425 Under the Securities Act of 1933 And Deemed Filed Pursuant to Rule 14a-12 Under the Securities Exchange Act of

More information

Quarterly NEWS GHP. Investment Advisors, Inc. GHP Investment Advisors, Inc. is a member of The GHP Financial Group. Fourth Quarter 2009

Quarterly NEWS GHP. Investment Advisors, Inc. GHP Investment Advisors, Inc. is a member of The GHP Financial Group. Fourth Quarter 2009 Quarterly GHP Investment Advisors, Inc. NEWS Fourth Quarter 2009 by Brian J. Friedman, CFA Will Deteriorating Commercial Real Estate Cause Financial Crisis Aftershocks? Some investors are jittery because

More information

Margin investing. A guide for Vanguard Brokerage clients

Margin investing. A guide for Vanguard Brokerage clients Margin investing A guide for Vanguard Brokerage clients Please read this brochure carefully before you apply for a margin account. This complex, high-risk strategy isn t appropriate for all investors.

More information

VALUATIONS I Financial Metrics, Ratios, & Comparables Analysis. Fall 2015 Comp Week 6

VALUATIONS I Financial Metrics, Ratios, & Comparables Analysis. Fall 2015 Comp Week 6 VALUATIONS I Financial Metrics, Ratios, & Comparables Analysis Fall 2015 Comp Week 6 CODE: COMPS Timeline Date Topic 9/10/15 Introduction to Finance 9/17/15 Qualitative Analysis: SWOT and Porter s Five

More information

Trxade Group, Inc. (TCQB: TRXD): Record Revenues in Q3

Trxade Group, Inc. (TCQB: TRXD): Record Revenues in Q3 Siddharth Rajeev, B.Tech, MBA, CFA Analyst November 5, 2015 Trxade Group, Inc. (TCQB: TRXD): Record Revenues in Q3 Sector/Industry: E-commerce Market Data (as of November 5, 2015) Current Price $1.15 Fair

More information

Financial ratio analysis

Financial ratio analysis Financial ratio analysis A reading prepared by Pamela Peterson Drake O U T L I N E 1. Introduction 2. Liquidity ratios 3. Profitability ratios and activity ratios 4. Financial leverage ratios 5. Shareholder

More information

Sales increased 15 percent to $4.5 billion Earnings per Share increased 37 percent to $0.96 Operating Cash Flow increased 22 percent to $319 million

Sales increased 15 percent to $4.5 billion Earnings per Share increased 37 percent to $0.96 Operating Cash Flow increased 22 percent to $319 million Contact: Mark Polzin (314) 982-1758 John Hastings (314) 982-8622 EMERSON REPORTS RECORD FIRST-QUARTER 2006 RESULTS Sales increased 15 percent to $4.5 billion Earnings per Share increased 37 percent to

More information

Corporate Credit Analysis. Arnold Ziegel Mountain Mentors Associates

Corporate Credit Analysis. Arnold Ziegel Mountain Mentors Associates Corporate Credit Analysis Arnold Ziegel Mountain Mentors Associates I. Introduction The Goals and Nature of Credit Analysis II. Capital Structure and the Suppliers of Capital January, 2008 2008 Arnold

More information

I m going to cover 7 key points about FCF here:

I m going to cover 7 key points about FCF here: Free Cash Flow Overview When you re valuing a company with a DCF analysis, you need to calculate their Free Cash Flow (FCF) to figure out what they re worth. While Free Cash Flow is simple in theory, in

More information

Loan Disclosure Statement

Loan Disclosure Statement ab Loan Disclosure Statement Risk Factors You Should Consider Before Using Margin or Other Loans Secured by Your Securities Accounts This brochure is only a summary of certain risk factors you should consider

More information

Chapter 5: Business Valuation (Market Approach)

Chapter 5: Business Valuation (Market Approach) Chapter 5: Business Valuation (Market Approach) This methodology values larger companies based upon the value of similar publicly traded For smaller companies, otherwise known as micro businesses (e.g.,

More information

Finance Master. Winter 2015/16. Jprof. Narly Dwarkasing University of Bonn, IFS

Finance Master. Winter 2015/16. Jprof. Narly Dwarkasing University of Bonn, IFS Finance Master Winter 2015/16 Jprof. Narly Dwarkasing University of Bonn, IFS Chapter 2 Outline 2.1 Firms Disclosure of Financial Information 2.2 The Balance Sheet 2.3 The Income Statement 2.4 The Statement

More information

THE STOCK MARKET GAME GLOSSARY

THE STOCK MARKET GAME GLOSSARY THE STOCK MARKET GAME GLOSSARY Accounting: A method of recording a company s financial activity and arranging the information in reports that make the information understandable. Accounts payable: The

More information

SIX RED FLAG MODELS 1. Fraud Z-Score Model SGI Sales Growth Index x 0.892 GMI Gross Margin Index x 0.528 AQI Asset Quality Index x 0.

SIX RED FLAG MODELS 1. Fraud Z-Score Model SGI Sales Growth Index x 0.892 GMI Gross Margin Index x 0.528 AQI Asset Quality Index x 0. SIX RED FLAG MODELS Six different FFR detection models and ratios were used to develop a more comprehensive red flag approach in screening for and identifying financial reporting problems in publicly held

More information

How to Estimate the Effect of a Stock Repurchase on Share Price

How to Estimate the Effect of a Stock Repurchase on Share Price How to Estimate the Effect of a Stock Repurchase on Share Price By Dilip D. Kare and C. Don Wiggins Management Accounting May 1987 What is the smallest amount of stock you need to repurchase in order to

More information

Contacts: Investor Relations Evan Black & Kristina Carbonneau 800.493.8219 InvestorRelations@santanderconsumerusa.com

Contacts: Investor Relations Evan Black & Kristina Carbonneau 800.493.8219 InvestorRelations@santanderconsumerusa.com Contacts: Investor Relations Evan Black & Kristina Carbonneau 800.493.8219 InvestorRelations@santanderconsumerusa.com Media Relations Laurie Kight 214.801.6455 LKight@santanderconsumerusa.com Santander

More information

Venture Debt Overview

Venture Debt Overview Venture Debt Overview Introduction When utilized appropriately, venture debt can reduce dilution, extend a company s runway or accelerate its growth with limited cost to the business If utilized poorly

More information

Review for Exam 3. Instructions: Please read carefully

Review for Exam 3. Instructions: Please read carefully Review for Exam 3 Instructions: Please read carefully The exam will have 25 multiple choice questions and 5 work problems. You are not responsible for any topics that are not covered in the lecture note

More information

HOW THE COMING LBO BOOM WILL AFFECT YOUR BONDS

HOW THE COMING LBO BOOM WILL AFFECT YOUR BONDS FIXED INCOME HOW THE COMING LBO BOOM WILL AFFECT YOUR BONDS Krishna Memani CIO Fixed Income Wall Street s animal spirits are coming back, judging by the amount of leveraged buyout (LBO) activity across

More information

The Advisors Inner Circle Fund. Westwood LargeCap Value Fund. Summary Prospectus March 1, 2015 Ticker: Institutional Shares WHGLX

The Advisors Inner Circle Fund. Westwood LargeCap Value Fund. Summary Prospectus March 1, 2015 Ticker: Institutional Shares WHGLX The Advisors Inner Circle Fund Westwood LargeCap Value Fund Summary Prospectus March 1, 2015 Ticker: Institutional Shares WHGLX Before you invest, you may want to review the Fund s complete prospectus,

More information

Petro River Oil Corp. Reports Second Quarter 2015 Financials. Net Income of $6,293,845 ($0.74 per share)

Petro River Oil Corp. Reports Second Quarter 2015 Financials. Net Income of $6,293,845 ($0.74 per share) Petro River Oil Corp. Reports Second Quarter 2015 Financials Net Income of $6,293,845 ($0.74 per share) NEW YORK, NY, December 16, 2015 Petro River Oil Corp. (OTCBB: PTRCD) ( Petro River or the "Company"),

More information

Understanding Bank Ratios

Understanding Bank Ratios The Directors Education Series Understanding Bank Ratios Bankers Insight Group, LLC JEFFERY W. JOHNSON What Banking Factors Should be Measured? Asset Quality Capital Adequacy Earnings Liquidity 1 Asset

More information

Actuarial Society of India

Actuarial Society of India Actuarial Society of India EXAMINATIONS November 2004 SUBJECT - 108: Finance and Financial Reporting Indicative Solution S-108 Page 1 of 7 1 D 2 C 3 B 4 D 5 D 6 A 7 B 8 C 9 B 10 D 11 Trade credit is short-term

More information

Test3. Pessimistic Most Likely Optimistic Total Revenues 30 50 65 Total Costs -25-20 -15

Test3. Pessimistic Most Likely Optimistic Total Revenues 30 50 65 Total Costs -25-20 -15 Test3 1. The market value of Charcoal Corporation's common stock is $20 million, and the market value of its riskfree debt is $5 million. The beta of the company's common stock is 1.25, and the market

More information

Integrated Case. 4-25 D Leon Inc., Part II Financial Statement Analysis

Integrated Case. 4-25 D Leon Inc., Part II Financial Statement Analysis Integrated Case 4-25 D Leon Inc., Part II Financial Statement Analysis Part I of this case, presented in Chapter 3, discussed the situation of D Leon Inc., a regional snack foods producer, after an expansion

More information

Denbury Resources Inc. BUY Price Target: $9.82 Key Statistics as of 4/27/2015. Thesis Points: Company Description: NYSE:DNR

Denbury Resources Inc. BUY Price Target: $9.82 Key Statistics as of 4/27/2015. Thesis Points: Company Description: NYSE:DNR Denbury Resources Inc. NYSE:DNR Analyst: Sector: Ryan Ahlers Energy BUY Price Target: $9.82 Key Statistics as of 4/27/2015 Market Price: Industry: Market Cap: 52-Week Range: Beta: $8.10 Oil and Gas E&P

More information

Financial Ratio Cheatsheet MyAccountingCourse.com PDF

Financial Ratio Cheatsheet MyAccountingCourse.com PDF Financial Ratio Cheatsheet MyAccountingCourse.com PDF Table of contents Liquidity Ratios Solvency Ratios Efficiency Ratios Profitability Ratios Market Prospect Ratios Coverage Ratios CPA Exam Ratios to

More information

APX GROUP HOLDINGS, INC. REPORTS FIRST QUARTER 2015 RESULTS

APX GROUP HOLDINGS, INC. REPORTS FIRST QUARTER 2015 RESULTS APX GROUP HOLDINGS, INC. REPORTS FIRST QUARTER 2015 RESULTS First Quarter 2015 Financial and Portfolio Highlights APX Group Reports Total Revenue of $149.9 Million, up 14.9% Year over Year Adjusted EBITDA

More information

Oceaneering Announces Record Quarterly Earnings

Oceaneering Announces Record Quarterly Earnings PRESS RELEASE Oceaneering International, Inc. 11911 FM 529 Houston, Texas 77041 Telephone: (713) 329-4500 Fax: (713) 329-4951 www.oceaneering.com Oceaneering Announces Record Quarterly Earnings October

More information

Chief Financial Officer Greenhill & Co., Inc. (212) 389-1800

Chief Financial Officer Greenhill & Co., Inc. (212) 389-1800 Contact: John D. Liu, Chief Financial Officer Greenhill & Co., Inc. (212) 389-1800 For Immediate Release GREENHILL & CO. REPORTS RECORD QUARTERLY REVENUES AND EARNINGS; FIRST QUARTER EARNINGS PER SHARE

More information

Media Contact: Mike Conway Director, Corporate Communications Sherwin-Williams Direct: 216.515.4393 Pager: 216.422.3751 mike.conway@sherwin.

Media Contact: Mike Conway Director, Corporate Communications Sherwin-Williams Direct: 216.515.4393 Pager: 216.422.3751 mike.conway@sherwin. The Sherwin-Williams Company Reports First Quarter 2012 Financial Results Consolidated net sales increased 15.1% to a record $2.14 billion Diluted net income per common share increased 50.8% to a record

More information

RETIREMENT INCOME PLANS

RETIREMENT INCOME PLANS The formula for successful investing RETIREMENT INCOME PLANS PERFORMANCE PROTECTION EFFICIENCY CHOOSE YOUR FUNDS AND INCOME IN RETIREMENT OR BUY A GUARANTEED INCOME FOR LIFE Discovery Invest is an award

More information

BUSINESS VALUATION 101. Business Valuation 101: Demystifying the Multiple

BUSINESS VALUATION 101. Business Valuation 101: Demystifying the Multiple 2015 Business Valuation 101: Demystifying the Multiple 1 Business Valuation 101: Demystifying the Multiple 2 When it comes to succession planning for business owners, the two most common questions asked

More information

Morningstar Highlights

Morningstar Highlights Morningstar Highlights Second quarter Data as of June 30, 2015 Invesco offers funds that have competitive performance relative to their peers across most style boxes. Below are Invesco funds with four-

More information

Creating a Treasured Family Legacy

Creating a Treasured Family Legacy Q3 2013 Oxford Communiqué Investor Report: Creating a Treasured Family Legacy By The Oxford Club Research Team NOTE: The Oxford Club is not a broker, dealer or licensed investment advisor. No person listed

More information

expertise for nonprofit organizations

expertise for nonprofit organizations Vanguard Asset Management Services expertise for nonprofit organizations To help you manage and administer your organization s assets Contents Sharing our strengths: Benefits of a partnership with Vanguard

More information

Mapping Financial Planning to Exit Strategies

Mapping Financial Planning to Exit Strategies Bank of America Merrill Lynch White Paper Mapping Financial Planning to Exit Strategies As your business changes, your exit strategy should change with it. And planning should start now. Executive summary

More information

The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument

The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument Featured Solution May 2015 Your Global Investment Authority The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument In today s low yield environment, an active investment

More information

Welcome to your new 401(k) home

Welcome to your new 401(k) home Welcome to your new 401(k) home Introducing Vanguard... your new 401(k) partner We are excited to welcome Vanguard to the Anheuser-Busch 401(k) Savings and Retirement Plan as our new investment manager,

More information

Financial Terms & Calculations

Financial Terms & Calculations Financial Terms & Calculations So much about business and its management requires knowledge and information as to financial measurements. Unfortunately these key terms and ratios are often misunderstood

More information

SPDR S&P 400 Mid Cap Value ETF

SPDR S&P 400 Mid Cap Value ETF SPDR S&P 400 Mid Cap Value ETF Summary Prospectus-October 31, 2015 Before you invest in the SPDR S&P 400 Mid Cap Value ETF (the Fund ), you may want to review the Fund's prospectus and statement of additional

More information

FLY LEASING REPORTS SECOND QUARTER 2010 FINANCIAL RESULTS AND REPURCHASE OF 1.4 MILLION SHARES

FLY LEASING REPORTS SECOND QUARTER 2010 FINANCIAL RESULTS AND REPURCHASE OF 1.4 MILLION SHARES FLY LEASING REPORTS SECOND QUARTER FINANCIAL RESULTS AND REPURCHASE OF 1.4 MILLION SHARES Dublin, Ireland, August 4, FLY Leasing Limited (NYSE: FLY) ( FLY ), a global lessor of modern, fuel-efficient commercial

More information

CHG Companies, Inc. Employee 401(k) Plan

CHG Companies, Inc. Employee 401(k) Plan CHG Companies, Inc. Employee 401(k) Plan There are many great benefits to being part of the CHG Companies, Inc. Employee 401(k) Plan. Among those benefits is exceptional customer service online, by phone,

More information

FNCE 3010 (Durham). HW2 (Financial ratios)

FNCE 3010 (Durham). HW2 (Financial ratios) FNCE 3010 (Durham). HW2 (Financial ratios) 1. What effect would the following actions have on a firms net working capital and current ratio (assume NWC is positive and current ratio is initially greater

More information

Wells Fargo Energy Capital

Wells Fargo Energy Capital Wells Fargo Energy Capital IPAA Private Capital Conference Mark M. Green January 21, 2014 Table of Contents I Overview of the Wells Fargo Energy Group II Wells Fargo Energy Capital III Market Activity

More information

Waste Management Announces Second Quarter Earnings

Waste Management Announces Second Quarter Earnings FOR IMMEDIATE RELEASE Waste Management Announces Second Quarter Earnings Collection and Disposal Income from Operations Grows 3.4% HOUSTON July 26, 2012 Waste Management, Inc. (NYSE: WM) today announced

More information

EASTGROUP PROPERTIES ANNOUNCES THIRD QUARTER 2015 RESULTS

EASTGROUP PROPERTIES ANNOUNCES THIRD QUARTER 2015 RESULTS FOR MORE INFORMATION, CONTACT: David H. Hoster II, Chief Executive Officer Marshall Loeb, President and Chief Operating Officer N. Keith McKey, Chief Financial Officer (601) 354-3555 EASTGROUP PROPERTIES

More information

Atrium Mortgage Investment Corporation (TSX: AI) Record Year / Shares at Attractive Entry Levels. Sector/Industry: Mortgage Investment Corporation

Atrium Mortgage Investment Corporation (TSX: AI) Record Year / Shares at Attractive Entry Levels. Sector/Industry: Mortgage Investment Corporation Siddharth Rajeev, B.Tech, MBA, CFA Analyst February 17, 2016 Atrium Mortgage Investment Corporation (TSX: AI) Record Year / Shares at Attractive Entry Levels Sector/Industry: Mortgage Investment Corporation

More information

so sodexo Welcome to Your Sodexo Retirement Program Your future P L A N O V E R V I E W A valuable benefit that lets you share in Sodexo s success

so sodexo Welcome to Your Sodexo Retirement Program Your future P L A N O V E R V I E W A valuable benefit that lets you share in Sodexo s success P L A N O V E R V I E W Your future so sodexo Welcome to Your Sodexo Retirement Program A valuable benefit that lets you share in Sodexo s success SOD_Enroll_Guide Mar_09 09IAS-03-003 2009 ING Institutional

More information

Oil and Gas Exploration & Production (E&P) Incentive Plan Design Report. Analysis of Annual and Long-Term Incentive Arrangements

Oil and Gas Exploration & Production (E&P) Incentive Plan Design Report. Analysis of Annual and Long-Term Incentive Arrangements Oil and Gas Exploration & Production (E&P) Incentive Plan Design Report Analysis of Annual and Long-Term Incentive Arrangements at 100 of the Largest U.S. E&P Companies 2015 Contents Introduction... 3

More information

FINANCING THE BUSINESS

FINANCING THE BUSINESS 51 FUNDING 5 BASIC FINANCIAL PLANNING Financing The Business Financial Planning Financial Statements Calculating Cost-Values And Negotiating To Win Exercise P 159 FINANCING THE BUSINESS All businesses

More information

October 21, 2015 MEDIA & INVESTOR CONTACT Heather Worley, 214.932.6646 heather.worley@texascapitalbank.com

October 21, 2015 MEDIA & INVESTOR CONTACT Heather Worley, 214.932.6646 heather.worley@texascapitalbank.com October 21, 2015 MEDIA & INVESTOR CONTACT Heather Worley, 214.932.6646 heather.worley@texascapitalbank.com TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES OPERATING RESULTS FOR Q3 2015 DALLAS - October 21, 2015

More information

Short Selling Australian Stocks

Short Selling Australian Stocks Short Selling Australian Stocks What is Short Selling? The best way to explain short selling is to show the difference between going long and going short. Going Long and Making a Profit To go long means

More information

to Wealth Management resources of one of the world s largest financial services firms. The Caribbean Group

to Wealth Management resources of one of the world s largest financial services firms. The Caribbean Group A Defined Approach to Wealth Management Giving UWI access to the combined resources of one of the world s largest financial services firms. The Caribbean Group The information in this presentation is intended

More information

Limited Immediate Benefit from SEBI-RBI Initiatives of Debt to Equity Conversion

Limited Immediate Benefit from SEBI-RBI Initiatives of Debt to Equity Conversion Corporate Stress Limited Immediate Benefit from SEBI-RBI Initiatives of Debt to Equity Conversion Debt at 8x Market Capitalisation, Even Full Equity Conversion to Not Help Special Commentary Known Stress

More information

April 29, 2015 INVESTOR NEWS. Fresenius Medical Care reports first quarter 2015 results and confirms guidance for full year 2015

April 29, 2015 INVESTOR NEWS. Fresenius Medical Care reports first quarter 2015 results and confirms guidance for full year 2015 April 29, 2015 INVESTOR NEWS Fresenius Medical Care reports first quarter 2015 results and confirms guidance for full year 2015 First quarter performance fully on track to achieve full year guidance Strong

More information

Oil & Gas Exploration & Production Bank Re-determinations: A Primer

Oil & Gas Exploration & Production Bank Re-determinations: A Primer October 13, 2015 Oil & Gas Exploration & Production Bank Re-determinations: A Primer Oil and gas companies will come under financial duress this October, when banks re-determine the borrowing base of oil

More information

Morningstar Document Research

Morningstar Document Research Morningstar Document Research FORM8-K Houston Wire & Cable CO - HWCC Filed: May 05, 2016 (period: May 05, 2016) Report of unscheduled material events or corporate changes. The information contained herein

More information

Spectra Energy Reports Second Quarter 2008 Results, Net Income Up 51 Percent from Prior Year

Spectra Energy Reports Second Quarter 2008 Results, Net Income Up 51 Percent from Prior Year Media: Analysts: Molly Boyd (713) 627-5923 (713) 627-4747 (24-hour media line) John Arensdorf (713) 627-4600 Date: August 6, 2008 Spectra Energy Reports Second Quarter 2008 Results, Net Income Up 51 Percent

More information

2015 Fourth Quarter Results Conference Call February 18, 2016. Welcome to the 2015 Fourth Quarter Conference Call for Genesis Energy.

2015 Fourth Quarter Results Conference Call February 18, 2016. Welcome to the 2015 Fourth Quarter Conference Call for Genesis Energy. 2015 Fourth Quarter Results Conference Call February 18, 2016 Notice: This transcript contains references to non-gaap financial measures. A presentation of the most directly comparable GAAP measures and

More information

Financial Statement Analysis!

Financial Statement Analysis! Financial Statement Analysis! The raw data for investing Aswath Damodaran! 1! Questions we would like answered! Assets Liabilities What are the assets in place? How valuable are these assets? How risky

More information

investigating where the oil industry puts it money, then find programs that emulate that, i.e. follow the money.

investigating where the oil industry puts it money, then find programs that emulate that, i.e. follow the money. WHY SHOULD FINANCIAL PLANNERS CONSIDER DIRECT OIL & GAS INVESTMENT PROGRAMS FOR THEIR CLIENTS? BY Martin J. Cohen, Cfp tm And Steven King, President Petroinvest Llc Should asset allocation in direct participation

More information

Financial Analysis Project. Apple Inc.

Financial Analysis Project. Apple Inc. MBA 606, Managerial Finance Spring 2008 Pfeiffer/Triangle Financial Analysis Project Apple Inc. Prepared by: Radoslav Petrov Course Instructor: Dr. Rosemary E. Minyard Submission Date: 5 May 2008 Petrov,

More information

SYSCO AND US FOODS AGREE TO MERGE, CREATING A WORLD-CLASS FOODSERVICE COMPANY

SYSCO AND US FOODS AGREE TO MERGE, CREATING A WORLD-CLASS FOODSERVICE COMPANY SYSCO AND US FOODS AGREE TO MERGE, CREATING A WORLD-CLASS FOODSERVICE COMPANY Combination brings together the best of both companies to do more for our customers and invest in accelerating the transformation

More information

T. Rowe Price Target Retirement 2030 Fund Advisor Class

T. Rowe Price Target Retirement 2030 Fund Advisor Class T. Rowe Price Target Retirement 2030 Fund Advisor Class Supplement to Summary Prospectus Dated October 1, 2015 Effective February 1, 2016, the T. Rowe Price Mid-Cap Index Fund and the T. Rowe Price Small-Cap

More information

Measuring Financial Performance: A Critical Key to Managing Risk

Measuring Financial Performance: A Critical Key to Managing Risk Measuring Financial Performance: A Critical Key to Managing Risk Dr. Laurence M. Crane Director of Education and Training National Crop Insurance Services, Inc. The essence of managing risk is making good

More information

A Registered Investment Advisor

A Registered Investment Advisor A Registered Investment Advisor Summary Capco s investment approach Outperformance in the crash and rebound Our clients had the confidence to invest into the downturn, rather than panic Inflation risk

More information

RoD Canada 50 Tracking Index Methodology July 2014

RoD Canada 50 Tracking Index Methodology July 2014 RoD Canada 50 Tracking Index Methodology July 2014 Table of contents Introduction Introduction 3 Eligibility Criteria Additions RoD Canada 50 4 Deletions RoD Canada 50 5 Timing of Changes 6 Index Construction

More information

Small/Mid-Cap Quality Strategy (including FPA Paramount Fund, Inc. and FPA Perennial Fund, Inc.)

Small/Mid-Cap Quality Strategy (including FPA Paramount Fund, Inc. and FPA Perennial Fund, Inc.) Small/Mid-Cap Quality Strategy (including FPA Paramount Fund, Inc. and FPA Perennial Fund, Inc.) Investment Policy Statement OVERVIEW Investment Objective and Strategy The primary objective of the FPA

More information

PNC Target Date Funds. Making Saving for Retirement Simpler for You

PNC Target Date Funds. Making Saving for Retirement Simpler for You PNC Target Date Funds Making Saving for Retirement Simpler for You Walking With You on the Path to Retirement We understand that with the number and variety of retirement savings options available to you,

More information

Attorneys' Title Guaranty Fund, Inc. Savings Plan

Attorneys' Title Guaranty Fund, Inc. Savings Plan Attorneys' Title Guaranty Fund, Inc. Savings Plan There are many great benefits to being a participant in the Attorneys' Title Guaranty Fund, Inc. Savings Plan. Among those benefits is exceptional customer

More information

Tupras OUTPERFORM (M) 15 February 2010. Strong 2009 results on refining side...

Tupras OUTPERFORM (M) 15 February 2010. Strong 2009 results on refining side... Equity / Large Cap. / Petroleum and Energy 15 February 2010 Bloomberg: TUPRS TI Strong 2009 results on refining side... Reuters: TUPRS IS released its 2009 year end tax purpose financials. The main differences

More information

1 JULY 2015. Investment Guide INDUSTRY, CORPORATE AND PERSONAL DIVISIONS

1 JULY 2015. Investment Guide INDUSTRY, CORPORATE AND PERSONAL DIVISIONS 1 JULY 2015 Investment Guide INDUSTRY, CORPORATE AND PERSONAL DIVISIONS Your investment choice TWUSUPER was established in 1984 as the Industry SuperFund for people in transport and logistics. By understanding

More information

Readiness Activity. (An activity to be done before viewing the program)

Readiness Activity. (An activity to be done before viewing the program) Knowledge Unlimited NEWS Matters The Stock Market: What Goes Up...? Vol. 3 No. 2 About NewsMatters The Stock Market: What Goes Up...? is one in a series of NewsMatters programs. Each 15-20 minute program

More information