Chesapeake Energy Corp. (NYSE: CHK): Closing price $26.44
Analyst Amir Arif at Stifel has downgraded the rating on Chesapeake shares from Buy to Hold, and removed the $26 price target. In a report, Stifel noted in part that “We are downgrading CHK from a Buy to a Hold on fair valuation, expectations for no production growth heading into 2014, and a view that ongoing efficiency improvements and additional potential noncore asset sales will not add enough meaningful upside potential to the stock to offset EBITDA multiple and production growth concerns. We believe that investors will begin to shift their investment focus from P/NAV discounts to EBITDA multiples and growth outlook for CHK and as that shift happens, this name looks fairly valued on an absolute basis and will relatively underperform its peers.” However, shares closed up by 0.23 percent Friday at $26.47.
Statoil ASA (NYSE:STO): Closing price $22.56
It is feared that a frontier wildcat to be drilled by Statoil in the northernmost part of Norway’s Barents Sea might run the risk of a territorial dispute with other countries if a discovery is made in the sea off the Svalbard archipelago. The explorer is aiming at a well likely to be drilled early in 2014 with Seadrill semi-submersible West Hercules at the Apollo prospect, some 50 kilometers north of OMV’s recent Wisting find that has opened up a new play in the so-called Hoop area. The probe is one of two to be drilled next year, with a second planned at the Atlantis prospect, in Statoil-operated production license 615 that is adjacent to the 74th latitude and is thus close to an area governed by the 1920 Svalbard Treaty.
Seadrill Partners LLC (NYSE:SDLP): Closing price $32.00
Seadrill Partners said Friday that as part of a resolution agreement, it has agreed to non-payment for 37 days during the recent mobilization period resulting from the time needed for the ultra-deepwater harsh environment semi-submersible West Aquarius to finish modifications and repairs, so as to meet the regulatory requirements for operations in Canadian waters and for the operator to receive authorization from the Canadian authorities to begin operation. This loss will negatively impact third quarter results.
Enbridge Inc. (NYSE: ENB): Closing price $41.51
Financial Post says that Enbridge is working to open a new pathway to the United States Gulf Coast for Alberta bitumen, securing a commercial link between the world’s number-three crude deposit and the Texas refining corridor that has so far escaped industry planners. Canada’s biggest pipeline firm is shelling out $2.8-billion to “twin” its Spearhead pipeline from Flanagan, Illinois, to Cushing, Oklahoma, and another $1.1 billion to almost triple capacity on its Seaway system between the Midwest storage hub and the Houston area. The Enbridge route is developing as TransCanada Corp.’s rival Keystone XL project struggles into its sixth year of review by the U.S. government.