On Friday, Following U.S. Stocks were among the “Top Losers”: Bonanza Creek Energy, Inc. (NYSE:BCEI), Midstates Petroleum Corporation, Inc. (NYSE:MPO), Comstock Resources Inc. (NYSE:CRK), Globalstar Inc. (NYSEMKT:GSAT)
Bonanza Creek Energy Inc (NYSE:BCEI), with shares declined -6.73%, closed at $24.24.
Midstates Petroleum Company Inc (NYSE:MPO), with shares dropped -7.08%, settled at $0.765.
Comstock Resources Inc (NYSE:CRK), with shares dipped -6.58%, and closed at $4.26.
Globalstar, Inc (NYSEMKT:GSAT), plummeted -6.38%, and closed at $3.08.
Latest NEWS regarding these Stocks are depicted underneath:
Bonanza Creek Energy, Inc. (NYSE:BCEI)
According to Zacks Equity Research report, The U.S. Energy Department’s weekly inventory release showed a larger-than-predictable decrease in natural gas supplies. Importantly, the storage draw was higher than the benchmark 5-year average withdrawal for the week. However, the commodity’s stockpiles still remain plentiful, thereby pressuring prices.
As per the analysts surveyed by Platts, the energy information arm of McGraw-Hill Financial Inc., for the week ended Feb 27, 2015, Stockpiles held in underground storage in the lower 48 states dropped down by 228 billion cubic feet (Bcf), above the guided range (of 222–226 Bcf draw). The decrease was also more than the 5-year (2010–2014) average withdrawal of 115 Bcf for the stated week and also exceeded last year’s drop of 144 Bcf.
Despite past week’s healthy withdrawal, the current storage level – at 1.71 trillion cubic feet (Tcf) – is up 492 Bcf (40.4%) from last year though it is 143 Bcf (7.7%) below the five-year average.
Nevertheless, with production from the major shale plays remaining strong and the commodity’s demand failing to keep pace with this supply surge, natural gas prices remain in check, presently around $2.8 per million Btu (MMBtu).
From a peak of about $13.50 per MMBtu in 2008 to around $2.8 now – sinking in between to a 10-year low of under $2 in 2012 – the plummeting value of natural gas represents a decline of about 80% over seven years. In the absence of major production cuts, we do not expect much upside in gas prices in the near term.
This translates into limited upside for natural gas-weighted companies. In particular, those with Zacks Rank #4 (Sell) or Zacks Rank #5 (Strong Sell) like Chesapeake Energy Corp. CHK, Carrizo Oil & Gas Inc. CRZO, Penn Virginia Corp. PVA, Bonanza Creek Energy Inc. BCEI, Southwestern Energy Co. SWN, EOG Resources Inc. EOG look to be in the most trouble.
Bonanza Creek Energy, Inc., an independent energy corporation, engages in the attainment, exploration, development, and production of onshore oil and associated liquids natural gas in the United States.
Midstates Petroleum Corporation, Inc. (NYSE:MPO)
Midstates Petroleum Corporation, Inc. (MPO), declared that its wholly-owned partner, Midstates Petroleum Corporation LLC, has executed a Purchase and Sale Contract (“PSA”) with Pintail Oil and Gas LLC, a portfolio corporation of Ridgemont Equity Partners, for the sale of its Dequincy assets located in Beauregard and Calcasieu Parishes, Louisiana for total consideration of $44 million, subject to customary purchase price adjustments. The PSA comprises Midstates’ ownership interest in developed and undeveloped acreage totaling about 12,700 net mineral acres in the Dequincy area. At year-end 2014, the properties produced about 1,300 barrels of oil equivalent per day. The transaction does not comprise Midstates’ acreage and interests in the Fleetwood area of Louisiana. The net proceeds from the sale will be used to pay down a portion of the outstanding borrowings under the Corporation’s revolving credit facility and for general corporate purposes. The transaction has an effective date of March 1, 2015 and is predictable to close on or before April 30, 2015, subject to customary closing conditions. RBC Richardson Barr acted as advisors to the Corporation on the transaction.
Mark E. Eck, Midstates’ Executive Vice President and COO commented, “This sale of our Dequincy assets is another step forward in our overall planned plan to add liquidity and focus on our premier position in the Mid-Continent. We will continue to evaluate all options that maximize value for our stakeholders and best position Midstates to succeed in the future.”
Midstates Petroleum Corporation, Inc. is engaged in the exploration, development, and production of oil, natural gas liquids, and natural gas in the United States.
Comstock Resources Inc. (NYSE:CRK)
On March 9, Comstock Resources Inc. (CRK), submitted a Form 8-K for Entry into a Material Definitive Contract.
Upstream energy player Comstock Resources Inc. CRK declared the pricing of secured notes worth $700 million. The notes, which are due to mature in 2020, carry an interest rate of 10%. The offering is closed on Mar 13, 2015. In connection with the pricing of the notes, the Corporation has reached a new $50 million bank revolving credit facility.
Comstock Resources, Inc., an independent energy corporation, attains, develops, explores, and produces oil and natural gas properties in the United States.
Globalstar Inc. (NYSEMKT:GSAT)
According to , a Guggenheim Securities analyst, Globalstar Inc. (GSAT), triumphed the last hurdle to U.S. approval of its plan to carry mobile signals on satellite airwaves, with tests showing no interference with other wireless traffic.
Globalstar’s tests on March 6 and 9 showed Its planned service assisted Wi-Fi traffic move faster, and the results are “a positive development,” Paul Gallant, a Washington-based analyst with Guggenheim, said in a note Wednesday.
Gallant said the tests “represent the final major hurdle” to win approval from the Federal Communications Commission, which he anticipates in the coming months.
Globalstar, based in Covington, Louisiana, needs FCC approval to change how it’s using the airwaves that are licensed to carry signals to and from satellites. Kim Hart, an FCC spokeswoman, couldn’t right away comment.
The new service will raise Wi-Fi capacity in the U.S. by one-third and improve wireless service for millions of consumers, Globalstar said in a Web presentation.
Globalstar in a March 10 FCC filing said tests showed its service to be a “good neighbor” to other Wi-Fi operations.
Globalstar, Inc. provides mobile voice and data communications services through satellite worldwide. The corporation offers duplex two-way voice and data products, counting mobile voice and data satellite communications services and equipment for remote business continuity, recreational, emergency response, and other applications; fixed voice and data satellite communications services and equipment in rural villages, ships, industrial and commercial sites, and residential sites; and satellite data modem services comprising asynchronous and packet data services.
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