Analyst: Market Undervalues Oil & Gas Firm with Canadian Assets

Source: Streetwise Reports   08/15/2019

A Mackie Research Capital Corp. report provided the reasons why the cheap price of this company’s stock is unwarranted.

In an Aug. 9 research note, Bill Newman, an analyst with Mackie Research Capital Corp., reported that after having a “solid” Q2/19, Prairie Provident Resources Inc.’s (PPR:TSX) stock is still “incredibly cheap.”

Mackie has a target price on Prairie Provident of CA$0.70 per share, which reflects a potential eight-fold gain as the company’s current share price is around CA$0.08.

Newman reviewed the energy firm’s highlights from Q2/19. Quarterly production was a record high, averaging 6,386 barrels of oil equivalent per day (6,386 boe/day). It also was 24% higher than Q2/18 production of 5,146 boe/day. In terms of average production for 2019, management reiterated its guidance, between 6,100 and 6,500 boe/day.

Also noteworthy, indicated Newman, was that Prairie Provident’s adjusted funds flow in Q2/19 was about $6.6 million, which exceeded Mackie’s estimate of $5.9 million. It also was more than double the Q2/19 capital expenditures of $3.2 million, which means the oil & gas company is “living within cash flow.”

Given its current status and near-term developments, Prairie Provident should be valued higher, Newman purported. For one, it is generating free cash flow. Two, its most recently drilled well at Princess is “highly economic” and could pay out in under 10 months’ time. Three, the company is likely to drill two more wells this year. Four, it could have a “cash windfall from the Quebec asset arbitration process,” added the analyst.

Mackie maintains its Buy recommendation, Newman wrote, “on the company’s long-term growth potential from its large inventory of development oil locations and expanding waterflood programs.”

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Mackie Research, Prairie Provident Resources Inc., August 9, 2019

RELEVANT DISCLOSURES APPLICABLE TO COMPANIES UNDER COVERAGE
Relevant disclosures required under Rule 3400 applicable to companies under coverage discussed in this research report are available on our web site at www.mackieresearch.com.

ANALYST CERTIFICATION
Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

Mackie Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein.

Bill Newman: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. Within the last two years, Mackie Research Capital has managed or comanaged an offering of securities for, and received compensation for investment banking and related services from Prairie Provident Resources Inc. Bill Newman has research coverage on Prairie Provident Resources Inc.

( Companies Mentioned: PPR:TSX,
)

Source: Streetwise Reports   08/15/2019

A Mackie Research Capital Corp. report provided the reasons why the cheap price of this company's stock is unwarranted.

In an Aug. 9 research note, Bill Newman, an analyst with Mackie Research Capital Corp., reported that after having a "solid" Q2/19, Prairie Provident Resources Inc.'s (PPR:TSX) stock is still "incredibly cheap."

Mackie has a target price on Prairie Provident of CA$0.70 per share, which reflects a potential eight-fold gain as the company's current share price is around CA$0.08.

Newman reviewed the energy firm's highlights from Q2/19. Quarterly production was a record high, averaging 6,386 barrels of oil equivalent per day (6,386 boe/day). It also was 24% higher than Q2/18 production of 5,146 boe/day. In terms of average production for 2019, management reiterated its guidance, between 6,100 and 6,500 boe/day.

Also noteworthy, indicated Newman, was that Prairie Provident's adjusted funds flow in Q2/19 was about $6.6 million, which exceeded Mackie's estimate of $5.9 million. It also was more than double the Q2/19 capital expenditures of $3.2 million, which means the oil & gas company is "living within cash flow."

Given its current status and near-term developments, Prairie Provident should be valued higher, Newman purported. For one, it is generating free cash flow. Two, its most recently drilled well at Princess is "highly economic" and could pay out in under 10 months' time. Three, the company is likely to drill two more wells this year. Four, it could have a "cash windfall from the Quebec asset arbitration process," added the analyst.

Mackie maintains its Buy recommendation, Newman wrote, "on the company's long-term growth potential from its large inventory of development oil locations and expanding waterflood programs."

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Mackie Research, Prairie Provident Resources Inc., August 9, 2019

RELEVANT DISCLOSURES APPLICABLE TO COMPANIES UNDER COVERAGE
Relevant disclosures required under Rule 3400 applicable to companies under coverage discussed in this research report are available on our web site at www.mackieresearch.com.

ANALYST CERTIFICATION
Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst's personal views and (ii) no part of the research analyst's compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

Mackie Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein.

Bill Newman: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. Within the last two years, Mackie Research Capital has managed or comanaged an offering of securities for, and received compensation for investment banking and related services from Prairie Provident Resources Inc. Bill Newman has research coverage on Prairie Provident Resources Inc.

( Companies Mentioned: PPR:TSX, )

U.S. Energy Firm’s Stock at ‘Good Entry Point,’ Rating Upgraded to Outperform

Source: Streetwise Reports   08/15/2019

An update on this company’s valuation is provided in a Raymond James report.

In an Aug. 13 research note, analyst Pavel Molchanov reported that Raymond James boosted its rating on Chart Industries Inc. (GTLS:NASDAQ) to Outperform from Market Perform, “taking a positive stance for the first time since December 2016.”

The stock, currently trading near a 52-week low, “is no longer in priced-for-perfection territory,” Molchanov indicated. The stock was trading at $58.67 when the report was released and is currently at $59.36; Raymond James’ target price is $72 per share; when.

Molchanov highlighted that Chart management’s anticipated 2020 upside, equivalent to an earnings per share of about $8.00–8.75, is not only uncertain but also likely unattainable. The upside is based on the company landing large liquefied natural gas (LNG) contracts, thereby generating revenue of $300–370 million.

Yes, Chart will most probably land at least one of the expected contracts, acknowledged Molchanov. Yet the “U.S.-China trade war (and resulting tariff on U.S. LNG) is a headwind that will likely delay certain final investment decisions, above and beyond the macro LNG market uncertainty.”

However, Chart no longer needs to attain that upside “for the stock to work,” Molchanov pointed out. This is due to its revenue mix and expected future oil prices. About 60% of the company’s revenue is linked to the energy sector and the remaining roughly 40% to non-energy industrials. Oil prices forecasted for 2020 by Raymond James at $92.50 West Texas Intermediate and $100 Brent translate to “positive readthrough for Chart’s base energy revenue, (i.e.) everything other than large LNG projects.”

Also, because the market’s previous excitement around large LNG projects is no longer attached to Chart’s stock, the LNG “opportunity is an essentially free option at the current entry point,” added Molchanov.

He concluded, “Chart is a one-of-a-kind company with no direct public comps.” What differentiates it from specialty industrials is its high sensitivity to commodities. Thus, “the higher the commodity, the more room for upside surprises.”

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Raymond James, Chart Industries Inc., August 13, 2019

ANALYST INFORMATION

Analysts Holdings and Compensation: Equity analysts and their staffs at Raymond James are compensated based on a salary and bonus system. Several factors enter into the bonus determination, including quality and performance of research product, the analyst’s success in rating stocks versus an industry index, and support effectiveness to trading and the retail and institutional sales forces. Other factors may include but are not limited to: overall ratings from internal (other than investment banking) or external parties and the general productivity and revenue generated in covered stocks.

The analyst Pavel Molchanov, primarily responsible for the preparation of this research report, attests to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers and (2) that no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views in this research report. In addition, said analyst(s) has not received compensation from any subject company in the last 12 months.

RAYMOND JAMES RELATIONSHIP DISCLOSURES
Certain affiliates of the RJ Group expect to receive or intend to seek compensation for investment banking services from all companies under research coverage within the next three months.

Raymond James & Associates, Inc. makes a market in the shares of Chart Industries, Inc.

Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available here.

( Companies Mentioned: GTLS:NASDAQ,
)

Source: Streetwise Reports   08/15/2019

An update on this company's valuation is provided in a Raymond James report.

In an Aug. 13 research note, analyst Pavel Molchanov reported that Raymond James boosted its rating on Chart Industries Inc. (GTLS:NASDAQ) to Outperform from Market Perform, "taking a positive stance for the first time since December 2016."

The stock, currently trading near a 52-week low, "is no longer in priced-for-perfection territory," Molchanov indicated. The stock was trading at $58.67 when the report was released and is currently at $59.36; Raymond James' target price is $72 per share; when.

Molchanov highlighted that Chart management's anticipated 2020 upside, equivalent to an earnings per share of about $8.00–8.75, is not only uncertain but also likely unattainable. The upside is based on the company landing large liquefied natural gas (LNG) contracts, thereby generating revenue of $300–370 million.

Yes, Chart will most probably land at least one of the expected contracts, acknowledged Molchanov. Yet the "U.S.-China trade war (and resulting tariff on U.S. LNG) is a headwind that will likely delay certain final investment decisions, above and beyond the macro LNG market uncertainty."

However, Chart no longer needs to attain that upside "for the stock to work," Molchanov pointed out. This is due to its revenue mix and expected future oil prices. About 60% of the company's revenue is linked to the energy sector and the remaining roughly 40% to non-energy industrials. Oil prices forecasted for 2020 by Raymond James at $92.50 West Texas Intermediate and $100 Brent translate to "positive readthrough for Chart's base energy revenue, (i.e.) everything other than large LNG projects."

Also, because the market's previous excitement around large LNG projects is no longer attached to Chart's stock, the LNG "opportunity is an essentially free option at the current entry point," added Molchanov.

He concluded, "Chart is a one-of-a-kind company with no direct public comps." What differentiates it from specialty industrials is its high sensitivity to commodities. Thus, "the higher the commodity, the more room for upside surprises."

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Raymond James, Chart Industries Inc., August 13, 2019

ANALYST INFORMATION

Analysts Holdings and Compensation: Equity analysts and their staffs at Raymond James are compensated based on a salary and bonus system. Several factors enter into the bonus determination, including quality and performance of research product, the analyst's success in rating stocks versus an industry index, and support effectiveness to trading and the retail and institutional sales forces. Other factors may include but are not limited to: overall ratings from internal (other than investment banking) or external parties and the general productivity and revenue generated in covered stocks.

The analyst Pavel Molchanov, primarily responsible for the preparation of this research report, attests to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers and (2) that no part of the research analyst's compensation was, is, or will be directly or indirectly related to the specific recommendations or views in this research report. In addition, said analyst(s) has not received compensation from any subject company in the last 12 months.

RAYMOND JAMES RELATIONSHIP DISCLOSURES
Certain affiliates of the RJ Group expect to receive or intend to seek compensation for investment banking services from all companies under research coverage within the next three months.

Raymond James & Associates, Inc. makes a market in the shares of Chart Industries, Inc.

Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available here.

( Companies Mentioned: GTLS:NASDAQ, )

Canadian Solar Shares Shine on Sunny Quarterly Earnings

Source: Streetwise Reports   08/15/2019

Canadian Solar, which operates a portfolio of utility-scale solar operated power plants, reported higher Q2 earnings.

This morning one of the world’s largest solar power companies, Canadian Solar Inc. (CSIQ:NASDAQ), announced financial results for the second quarter ended June 30, 2019.

In the release the firm reported significantly higher net revenue in Q2/19 of $1,036.3 million compared to $484.7 million in Q1/19, and $650.6 million in Q2/18. The company advised that the sequential increase was primarily due to higher solar module shipments and higher revenue from the sale of solar power plants. Total solar module shipments in Q2/19 were 2,143 MW, compared to 1,575 MW in Q1/19 and prior Q2/19 guidance provided of 1.95–2.05 GW.

Gross profit in Q2/19 was $182.6 million, compared to $107.4 million in Q1/19 and $159.4 million in Q2/18. Income from operations in Q2/19 was $60.7 million, compared to $6.6 million in Q1/19, and $53.9 million in Q2/18. Net income in Q2/19 was $62.7 million, or $1.04 per diluted share, compared to a net loss of $17.2 million, or $0.29 per diluted share in Q1/19 and net income of $15.6 million, or $0.26 per diluted share in Q2/18. As of June 30, 2019, the company had $981.0 million of cash, cash equivalents and restricted cash on its balance sheet, compared to $912.3 million on March 31, 2019.

Q2/19 accounts receivable turnover in Q2/19 improved to 41 days, compared to 91 days in Q1/19, and inventory turnover in Q2/19 was 40 days, compared to 81 days in Q1/19.

Dr. Shawn Qu, chairman and CEO of Canadian Solar, commented, “The company’s strong Q2/19 financial performance is principally due to the resiliency of our business model and our team’s solid execution of the business plan. Our focus on achieving improved operating efficiencies with reduced manufacturing costs across global operations, while continuing to invest in R&D to ensure long-term success, puts us in the most competitive position in the Company’s history. Overall, we are incrementally more positive in the outlook for H2/19 based on the improved visibility, healthy demand levels in key markets, more stable average selling prices and higher capacity utilization levels.”

Dr. Huifeng Chang, SVP and CFO, added, “Our solid execution resulted in the better than expected profitability for Q2/19. We improved the gross margin to 17.6% and delivered a net income of $1.04 per diluted share on a GAAP basis, compared to a loss of $0.29 per diluted share in Q1/19…Importantly, we generated $225.8 million in cash from operations, which allowed us to further reduce total debt and strengthen the balance sheet.”

As of July 31, 2019, the company’s late-stage, utility-scale solar project pipeline, including those in construction, totaled approximately 3.6 GWp, with 1,565 MWp in the U.S., 508.2 MWp in Brazil, 368 MWp in Mexico, 311.8 MWp in Japan, 385 MWp in China and additional 465.2 MWp in total in Australia, Canada, Israel, Taiwan, the Philippines, Malaysia, Italy and South Korea. In the report the company cautioned that some late-stage projects may not reach completion due to such factors as failure to secure permits and grid connection, and changes of political and economic conditions in host countries, among others.

The firm also updated its business outlook. For the full year 2019, the company raised its guidance for total module shipments to the range of approximately 8.4–8.5 GW from the previous guidance of 7.4–7.8 GW. Total revenue for the year is expected to be in the range of $3.5–3.8 billion.

Canadian Solar is a global energy provider based in Ontario, Canada, with subsidiaries in 19 countries on six continents. The company states that it is both a global leading manufacturer of solar photovoltaic modules (PV) and a provider of solar energy solutions. The firm indicates that it has over 13,000 employees globally, and operates state-of-the-art manufacturing facilities in Canada, China, Brazil and Southeast Asian countries. The firm has module manufacturing capacity and has delivered more than 36 GW of premium quality solar modules to customers in over 150 countries in the past 18 years.

The firm’s (CSIQ) shares opened today at $21.35 (+$0.75, +3.64%) versus the prior day’s close of $20.60. Today, the stock has traded between $21.12–24.25 and at present is priced at $23.19 (+$2.59, +12.57%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: CSIQ:NASDAQ,
)

Source: Streetwise Reports   08/15/2019

Canadian Solar, which operates a portfolio of utility-scale solar operated power plants, reported higher Q2 earnings.

This morning one of the world's largest solar power companies, Canadian Solar Inc. (CSIQ:NASDAQ), announced financial results for the second quarter ended June 30, 2019.

In the release the firm reported significantly higher net revenue in Q2/19 of $1,036.3 million compared to $484.7 million in Q1/19, and $650.6 million in Q2/18. The company advised that the sequential increase was primarily due to higher solar module shipments and higher revenue from the sale of solar power plants. Total solar module shipments in Q2/19 were 2,143 MW, compared to 1,575 MW in Q1/19 and prior Q2/19 guidance provided of 1.95–2.05 GW.

Gross profit in Q2/19 was $182.6 million, compared to $107.4 million in Q1/19 and $159.4 million in Q2/18. Income from operations in Q2/19 was $60.7 million, compared to $6.6 million in Q1/19, and $53.9 million in Q2/18. Net income in Q2/19 was $62.7 million, or $1.04 per diluted share, compared to a net loss of $17.2 million, or $0.29 per diluted share in Q1/19 and net income of $15.6 million, or $0.26 per diluted share in Q2/18. As of June 30, 2019, the company had $981.0 million of cash, cash equivalents and restricted cash on its balance sheet, compared to $912.3 million on March 31, 2019.

Q2/19 accounts receivable turnover in Q2/19 improved to 41 days, compared to 91 days in Q1/19, and inventory turnover in Q2/19 was 40 days, compared to 81 days in Q1/19.

Dr. Shawn Qu, chairman and CEO of Canadian Solar, commented, "The company's strong Q2/19 financial performance is principally due to the resiliency of our business model and our team's solid execution of the business plan. Our focus on achieving improved operating efficiencies with reduced manufacturing costs across global operations, while continuing to invest in R&D to ensure long-term success, puts us in the most competitive position in the Company's history. Overall, we are incrementally more positive in the outlook for H2/19 based on the improved visibility, healthy demand levels in key markets, more stable average selling prices and higher capacity utilization levels."

Dr. Huifeng Chang, SVP and CFO, added, "Our solid execution resulted in the better than expected profitability for Q2/19. We improved the gross margin to 17.6% and delivered a net income of $1.04 per diluted share on a GAAP basis, compared to a loss of $0.29 per diluted share in Q1/19...Importantly, we generated $225.8 million in cash from operations, which allowed us to further reduce total debt and strengthen the balance sheet."

As of July 31, 2019, the company's late-stage, utility-scale solar project pipeline, including those in construction, totaled approximately 3.6 GWp, with 1,565 MWp in the U.S., 508.2 MWp in Brazil, 368 MWp in Mexico, 311.8 MWp in Japan, 385 MWp in China and additional 465.2 MWp in total in Australia, Canada, Israel, Taiwan, the Philippines, Malaysia, Italy and South Korea. In the report the company cautioned that some late-stage projects may not reach completion due to such factors as failure to secure permits and grid connection, and changes of political and economic conditions in host countries, among others.

The firm also updated its business outlook. For the full year 2019, the company raised its guidance for total module shipments to the range of approximately 8.4–8.5 GW from the previous guidance of 7.4–7.8 GW. Total revenue for the year is expected to be in the range of $3.5–3.8 billion.

Canadian Solar is a global energy provider based in Ontario, Canada, with subsidiaries in 19 countries on six continents. The company states that it is both a global leading manufacturer of solar photovoltaic modules (PV) and a provider of solar energy solutions. The firm indicates that it has over 13,000 employees globally, and operates state-of-the-art manufacturing facilities in Canada, China, Brazil and Southeast Asian countries. The firm has module manufacturing capacity and has delivered more than 36 GW of premium quality solar modules to customers in over 150 countries in the past 18 years.

The firm's (CSIQ) shares opened today at $21.35 (+$0.75, +3.64%) versus the prior day's close of $20.60. Today, the stock has traded between $21.12–24.25 and at present is priced at $23.19 (+$2.59, +12.57%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: CSIQ:NASDAQ, )

First Vanadium Achieves Critical Process Flow Sheet Milestone for Carlin Project

Source: Peter Epstein for Streetwise Reports   08/14/2019

Peter Epstein profiles recent developments with this company that has a large vanadium deposit in Nevada, with a PEA on the way.

First Vanadium Corp. (FVAN:TSX.V; FVANF:OTCQB) has a large, near-surface vanadium resource (303 million pounds, Indicated category only), with a very good grade (0.615% V2O5) in the great mining jurisdiction of Nevada. The company has 42.4 million shares outstanding & $1.7 million in cash. Its enterprise value (EV) [market cap + debt – cash] = $12.5 million = US$9.4 million. First Vanadium is fully funded through delivery of a preliminary economic assessment (PEA), expected by Q1 2020.

The technical team is nothing short of world class. I can’t imagine a better team to optimize a greenfield project than this one. The company’s board, management and technical team’s core competence is in the exploration, permitting, development, construction and operation of mining projects around the globe, with over 400 years combined experience. Not only are these highly experienced professionals good at what they do, they’re passionate about it. {see August corporate presentation}

The Carlin vanadium project, one of the best in North America

The Carlin Vanadium project is situated on 3,608 acres in mining-friendly Elko County, in north-central Nevada, and surrounded by exceptional infrastructure. It’s road accessible from the towns of Carlin and Elko. Carlin, 7 miles away, is a major rail hub to both coasts. A power line runs within five miles of the property. There are nearby mining communities, a skilled workforce, mining services, suppliers and venders, and an airport.

It would be hard to overstate the importance of potentially developing a vanadium project in the U.S., with the president having named V2O5 a “strategic mineral,” and the very significant and growing need for vanadium in steel, the backbone of global growth. Not to mention the emerging Vanadium Redox Flow Battery (VRB) market.

The U.S. Department of Energy (DOE) has pledged to streamline and cut red tape from permitting and approval processes. And don’t forget, last year the federal tax rate was slashed from 35% to 21%.

The Carlin Vanadium project is one that I think could be up and running within five years. Especially if permitting and environmental protocols are reset for critical minerals in light of the escalating trade war between the U.S. and China.

A large, near-surface, high-grade resource

The high-grade, primary vanadium resource at Carlin consists of 303 million pounds V2O5 in the NI 43-101 compliant Indicated category. At a cut-off grade of 0.30%, the Indicated resource (80% of total resource) is 0.615% V2O5. There is also 75 million pounds in the Inferred category. Management believes there’s room to grow the resource if or when needed.

On August 7, First Vanadium announced that ongoing metallurgical test work on samples from the Carlin project resulted in a preliminary process flow sheet delineating extraction and recovery of vanadium as high-quality vanadium pentoxide (V2O5).

In my view, a very important and necessary milestone has been achieved, at reasonable cost, paving the way for a (fully funded) PEA by Q1 2020. The fact that management has announced a flow sheet signals confidence that they are well on the way to a viable PEA.

Paul Cowley, president & CEO, commented in the press release,

“The Company is very pleased at achieving this major metallurgical milestone for the project. With a preliminary flow sheet defined, the Company will now initiate Requests for Proposals from qualified engineering firms for a Preliminary Economic Assessment (PEA).”

And, here’s a great summary of the process flow sheet,

“The flow sheet follows four steps, 1) crushing & grinding, 2) pre-concentration to reduce the volume of feed to the pressure oxidation circuit, 3) acid leach & pressure oxidation to extract vanadium into solution, and 4) solvent extraction to generate a high-value, pure vanadium pentoxide (V2O5) flake product.”

The press release emphasized that the flow sheet uses conventional, off-the-shelf technology,

“The extraction process uses conventional unit operations (crushing, grinding, flotation, leaching, solid-liquid separation, solvent extraction & ion exchange, precipitation & calcination) and common chemicals (oxygen, sulfuric acid, ammonium carbonate & ammonium sulfate).

A lot of the work to date has been aimed at driving capital and operating costs lower through optimization of the flow sheet. An example is the pre-concentration step that captures the bulk of the vanadium in a smaller volume of feed to the autoclave. This means a smaller autoclave could be constructed, which would be cheaper to build and operate. Importantly, additional test work to refine and optimize the process is expected to lower costs even further, in time for the PEA.

There are some very smart and talented metallurgists and engineers working on First Vanadium’s flow sheet! (see image below).

Regarding vanadium pricing, I’m not one to predict or forecast. I thought the price would remain close to $15/lb. Still, at the current vanadium pentoxide (China) price of US$9.5/lb, the in-situ value of the Indicated-only portion of the resource (303 million pounds) is ~US$2.9 billion = ~C$3.8 billion. Compare that to First Vanadium’s EV of US$9.4 million. This is the largest, high-grade primary vanadium resource in North America.

VRBs are coming on strong, VRB technology advances will help a lot

Vincent Sprenkle, a lead researcher at the U.S. DOE’s Pacific Northwest National Laboratory, recently said, “Vanadium Redox Flow Battery costs could be lowered by another 50%.” I think that sentiment speaks to the inevitability of additional technological advancements, which will be bullish for the vanadium market, as it will allow for more widespread adoption of utility scale VRBs outside of China, where VRB projects already have a strong foothold.

There are hundreds of battery metals juniors out there: vanadium, cobalt, lithium, nickel, graphite, but very few are moving the ball forward as rapidly and prudently as First Vanadium. Moving towards a PEA with the quoted (V2O5)—China—price at US$9.5/lb signals a strong belief in both the flow sheet and the project. The vanadium price dipped to US$8.1/lb in mid-July, but it’s up 17.3% since then.

First Vanadium Corp., (TSXV: FVAN) / (OTCQX: FVANF) with a PEA in hand early next year, a tremendous management, board, technical team and retained consultants, and a strong (high-grade primary vanadium)/sizable (303 million pounds Indicated) project, in a top mining jurisdiction, is worth a closer look.

Corporate Presentation.

Latest Press Releases.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University’s Stern School of Business.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosures: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about First Vanadium Corp., including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of First Vanadium Corp. are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this article was posted, Peter Epstein owned no shares of First Vanadium Corp. and the Company was an advertiser on [ER].

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
1) Peter Epstein’s disclosures are listed above.
2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Graphics provided by the author.

( Companies Mentioned: FVAN:TSX.V; FVANF:OTCQB,
)

Source: Peter Epstein for Streetwise Reports   08/14/2019

Peter Epstein profiles recent developments with this company that has a large vanadium deposit in Nevada, with a PEA on the way.

First Vanadium Corp. (FVAN:TSX.V; FVANF:OTCQB) has a large, near-surface vanadium resource (303 million pounds, Indicated category only), with a very good grade (0.615% V2O5) in the great mining jurisdiction of Nevada. The company has 42.4 million shares outstanding & $1.7 million in cash. Its enterprise value (EV) [market cap + debt – cash] = $12.5 million = US$9.4 million. First Vanadium is fully funded through delivery of a preliminary economic assessment (PEA), expected by Q1 2020.

The technical team is nothing short of world class. I can't imagine a better team to optimize a greenfield project than this one. The company's board, management and technical team's core competence is in the exploration, permitting, development, construction and operation of mining projects around the globe, with over 400 years combined experience. Not only are these highly experienced professionals good at what they do, they're passionate about it. {see August corporate presentation}

The Carlin vanadium project, one of the best in North America

The Carlin Vanadium project is situated on 3,608 acres in mining-friendly Elko County, in north-central Nevada, and surrounded by exceptional infrastructure. It's road accessible from the towns of Carlin and Elko. Carlin, 7 miles away, is a major rail hub to both coasts. A power line runs within five miles of the property. There are nearby mining communities, a skilled workforce, mining services, suppliers and venders, and an airport.

It would be hard to overstate the importance of potentially developing a vanadium project in the U.S., with the president having named V2O5 a "strategic mineral," and the very significant and growing need for vanadium in steel, the backbone of global growth. Not to mention the emerging Vanadium Redox Flow Battery (VRB) market.

The U.S. Department of Energy (DOE) has pledged to streamline and cut red tape from permitting and approval processes. And don't forget, last year the federal tax rate was slashed from 35% to 21%.

The Carlin Vanadium project is one that I think could be up and running within five years. Especially if permitting and environmental protocols are reset for critical minerals in light of the escalating trade war between the U.S. and China.

A large, near-surface, high-grade resource

The high-grade, primary vanadium resource at Carlin consists of 303 million pounds V2O5 in the NI 43-101 compliant Indicated category. At a cut-off grade of 0.30%, the Indicated resource (80% of total resource) is 0.615% V2O5. There is also 75 million pounds in the Inferred category. Management believes there's room to grow the resource if or when needed.

On August 7, First Vanadium announced that ongoing metallurgical test work on samples from the Carlin project resulted in a preliminary process flow sheet delineating extraction and recovery of vanadium as high-quality vanadium pentoxide (V2O5).

In my view, a very important and necessary milestone has been achieved, at reasonable cost, paving the way for a (fully funded) PEA by Q1 2020. The fact that management has announced a flow sheet signals confidence that they are well on the way to a viable PEA.

Paul Cowley, president & CEO, commented in the press release,

"The Company is very pleased at achieving this major metallurgical milestone for the project. With a preliminary flow sheet defined, the Company will now initiate Requests for Proposals from qualified engineering firms for a Preliminary Economic Assessment (PEA)."

And, here's a great summary of the process flow sheet,

"The flow sheet follows four steps, 1) crushing & grinding, 2) pre-concentration to reduce the volume of feed to the pressure oxidation circuit, 3) acid leach & pressure oxidation to extract vanadium into solution, and 4) solvent extraction to generate a high-value, pure vanadium pentoxide (V2O5) flake product."

The press release emphasized that the flow sheet uses conventional, off-the-shelf technology,

"The extraction process uses conventional unit operations (crushing, grinding, flotation, leaching, solid-liquid separation, solvent extraction & ion exchange, precipitation & calcination) and common chemicals (oxygen, sulfuric acid, ammonium carbonate & ammonium sulfate)."

A lot of the work to date has been aimed at driving capital and operating costs lower through optimization of the flow sheet. An example is the pre-concentration step that captures the bulk of the vanadium in a smaller volume of feed to the autoclave. This means a smaller autoclave could be constructed, which would be cheaper to build and operate. Importantly, additional test work to refine and optimize the process is expected to lower costs even further, in time for the PEA.

There are some very smart and talented metallurgists and engineers working on First Vanadium's flow sheet! (see image below).

Regarding vanadium pricing, I'm not one to predict or forecast. I thought the price would remain close to $15/lb. Still, at the current vanadium pentoxide (China) price of US$9.5/lb, the in-situ value of the Indicated-only portion of the resource (303 million pounds) is ~US$2.9 billion = ~C$3.8 billion. Compare that to First Vanadium's EV of US$9.4 million. This is the largest, high-grade primary vanadium resource in North America.

VRBs are coming on strong, VRB technology advances will help a lot

Vincent Sprenkle, a lead researcher at the U.S. DOE's Pacific Northwest National Laboratory, recently said, "Vanadium Redox Flow Battery costs could be lowered by another 50%." I think that sentiment speaks to the inevitability of additional technological advancements, which will be bullish for the vanadium market, as it will allow for more widespread adoption of utility scale VRBs outside of China, where VRB projects already have a strong foothold.

There are hundreds of battery metals juniors out there: vanadium, cobalt, lithium, nickel, graphite, but very few are moving the ball forward as rapidly and prudently as First Vanadium. Moving towards a PEA with the quoted (V2O5)—China—price at US$9.5/lb signals a strong belief in both the flow sheet and the project. The vanadium price dipped to US$8.1/lb in mid-July, but it's up 17.3% since then.

First Vanadium Corp., (TSXV: FVAN) / (OTCQX: FVANF) with a PEA in hand early next year, a tremendous management, board, technical team and retained consultants, and a strong (high-grade primary vanadium)/sizable (303 million pounds Indicated) project, in a top mining jurisdiction, is worth a closer look.

Corporate Presentation.

Latest Press Releases.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University's Stern School of Business.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosures: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about First Vanadium Corp., including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of First Vanadium Corp. are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this article was posted, Peter Epstein owned no shares of First Vanadium Corp. and the Company was an advertiser on [ER].

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he's diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
1) Peter Epstein's disclosures are listed above.
2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Graphics provided by the author.

( Companies Mentioned: FVAN:TSX.V; FVANF:OTCQB, )

Scoping Study for U.S. Lithium Project Confirms ‘Robust Economics’

Source: Streetwise Reports   08/12/2019

The pros and cons of the parameters outlined within it were addressed in a ROTH Capital Partners report.In an Aug. 8 research note, ROTH Capital Partners analyst Joe Reagor reported t…

Source: Streetwise Reports   08/12/2019

The pros and cons of the parameters outlined within it were addressed in a ROTH Capital Partners report.

In an Aug. 8 research note, ROTH Capital Partners analyst Joe Reagor reported that Piedmont Lithium Ltd.'s (PLL:NASDAQ; PLL:ASX) updated scoping study for its North Carolina lithium project is "supportive of our positive outlook for the project as it confirmed robust project economics." Accordingly, ROTH reiterated its Buy rating on Piedmont.

At the same time, though, ROTH lowered its target price on the energy firm to $36 per share from $38. In comparison, Piedmont is currently trading at around $9.56 per share. The reasons for the cut were a higher estimated initial capex for the lithium project and the continued weakening of the Australian dollar against the U.S. dollar.

Reagor reviewed the highlights of the scoping study released Aug. 7. The positives, he pointed out, are the increased mine life, the operation's low cost (below ROTH's expectation), the estimated 34% after-tax internal rate of return and $1.45 billion net present value. "We continue to believe Piedmont's lithium project is a world-class asset on the fast track to development," commented the analyst.

As for the study's negatives, noted Reagor, one is the now $168 million upfront capex required, up from $130 million, even though most of that is due to the larger project size, and the lower-than-expected operational costs do offset some of it.

The Australian dollar's weakening trend is another dampening factor. As such, ROTH raised its estimate of Piedmont's future development equity financing need to AU$95 million from AU$75 million. This resulted in a higher share count estimate and a reduced price target.

Reagor concluded the report, "We remain positive on Piedmont Lithium."

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from ROTH Capital Partners, Piedmont Lithium Ltd., Flash Note, August 8, 2019

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

ROTH makes a market in shares of Piedmont Lithium Limited and as such, buys and sells from customers on a principal basis.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.

( Companies Mentioned: PLL:NASDAQ; PLL:ASX, )

From Gold to Vanadium to Uranium, the Mercenary Geologist Has His Preferences

Source: Maurice Jackson for Streetwise Reports   08/08/2019

Mickey Fulp, the Mercenary Geologist, and Maurice Jackson of Proven and Probable discuss the resurgent precious metals markets, as well as base metals, critical metals and energy metals.

Maurice Jackson: Joining me for a conversation today is Mickey Fulp, the Mercenary Geologist. Glad to have you here today to share your market insights, which are quite remarkable. And, I want to get your thoughts right now on the gold price. The market seems to be quite exuberant at the current price of $1,400 per ounce. Is $1,400 the new floor or is it a head fake?

Mickey Fulp: I’m being increasingly convinced it’s a floor because no matter what the U.S. dollar seems to do—I mean the U.S. dollar’s up 150 points or more over the last month or so. And, despite its perturbations on a daily basis, gold’s hanging in there. Hasn’t even gotten close to breaching $1,400 for quite some time. So, it was a bit iffy. So, there’s certainly resistance on the downside in the $1,385 range. What’s the resistance on the upside? Well, probably $1,450. We’re pushing that this morning.

Maurice Jackson: We certainly are.

Mickey Fulp: We keep establishing new six-year highs, and it was six years ago since gold even approached these sorts of values. You know, as a geologist, exploration geologists do have to have an eternally optimistic side. Maybe that’s coming out. But [it’s] looking better—if we can get through to Labor Day and then through the return of everybody to the market, let’s say by the Precious Metals Summit in Beaver Creek, Colorado, in late September.

If we can get through that, then I think it could be onward and upward for gold because then you have seasonal factors coming into the equation—Indian wedding and festivals specifically. And then the love trade comes into the Western world—those two or three weeks before Christmas where we all tend to buy our loved ones gold-bearing bling.

Maurice Jackson: I don’t know if my wife would agree with that but, honey, I will get you something this year. Mickey, how about silver? Any thoughts on silver?

Mickey Fulp: Well, silver’s lagging behind and the gold-silver ratio is starting to go down. But, a month ago it was well above 92, and that is extremely rare territory. I think about 2% of the time since Nixon took us off the gold standard in 1970 has the gold-silver ratio been that high. It’s about 87 right now. You noticed overnight or yesterday, when gold popped a little bit, or even this morning when it’s kind of gone another leg up, [that] silver hasn’t participated in this last little run here.

Maurice Jackson: I know you’re not the biggest fan of silver, if I’m not mistaken, but would you actively be buying silver right now?

Mickey Fulp: Well, if I had a choice of buying gold or silver right now, I’d be buying silver because it’s undervalued with respect to gold. That ratio, the mean, the median and the average are both about 55 to 56, and so you know, that ratio will come into play at some point, again. If you buy silver now and that ratio normalizes, then you trade in your silver for your gold. The other thing that’s going on right now is numismatic gold coins are selling at not much over the markup for a current bullion coin from the government. I actually picked up a couple of numismatics yesterday, so I’ve already got the bling for my girl.

Maurice Jackson: I have as well. Regarding gold numismatic coins. I like divisibility so I don’t usually go for the one-ounce. I like the half-ounce gold numismatic and one-tenth platinum, which the one-tenth actually leads to my next question for you. And, that is platinum. What are your thoughts on platinum?

Mickey Fulp: Well, I bought some platinum back in January, I think when it went below $800/ounce. It’s now made triple bottoms below $800 in the last year. So, triple bottoms, as the chartists will tell you, that’s when you want to buy. When it made its last little foray under $800 was month or five weeks ago, if memory serves, and now it’s at $850 again. That’s another buy. It’s good time to buy platinum.

Palladium dropped $100 bucks overnight or yesterday. I think that must solely be due to a bunch of longs [getting] shaken out of market when Trump put those additional tariffs on, because palladium is an industrial metal. It’s not a precious metal. So it lost, dropped like a rocket yesterday.

Maurice Jackson: Now, I would be remiss if I didn’t ask you, because my e-mail box will be inundated with why didn’t you ask Mickey [if] he’s going to buy silver or platinum? Of the two, which one would you prefer to buy?

Mickey Fulp: Oh, I don’t know. I just buy silver coins kind of willy nilly. I bought bags of junk silver in 2008–2009, so for me, buying silver, I just buy a few coins here and there. But, if I was going to buy a significant amount of precious metals right now personally, I like those platinum philharmonic coins. Some beautiful coins.

Maurice Jackson: And, just a little insight for those [reading] as well, if you’re looking at silver. I get this question asked as well: What has the lowest premium right now? The answer is junk silver. Junk silver right now has the lowest premium.

Mickey Fulp: I was unaware of that.

Maurice Jackson: Yes.

Mickey Fulp: So, it’s always good to have a bag of junk silver around.

Maurice Jackson: It certainly is. When silver is out of favor—most people don’t realize this—it is junk silver that has the lowest premium. When silver is in favor, it’s the junk silver that has the highest premium.

Mickey Fulp: Oh, you should know, as a dealer for our buddies at Miles Franklin.

Maurice Jackson: Absolutely. Let’s switch the conversation. Let’s go to base metals. What has your attention in base metals?

Mickey Fulp: Well, copper always does. And copper’s gotten knocked down again on the trade tariffs, and some of the copper companies are on sale right now. The base metal complex overall, from the supply-demand, fundamentals viewpoint, looks very bullish, but nothing’s going to happen in the base metal complex. There’s not much upside that’s going to occur until something happens with China and the U.S.—some positive resolution or something. Some news that actually is of substance indicates this is going to get better before it gets worse. And we haven’t had that.

Maurice Jackson: So, what do you say to someone who says they’re ecstatic about battery metals right there. They’re going to say, “Mickey, you’re crazy; we’re going lithium; we’re going electric.” What do you have to say about that?

Mickey Fulp: Well, I’d say you can’t go electric without copper. So, if you want to look at a battery metal, an electric metal, look at copper. The so-called battery metals—which would include lithium and cobalt and vanadium—just when those prices go exponential, they go parabolic.

And that’s happened over the last year on all those metals. Lithium’s lost 45% value from 14 months ago. Cobalt’s less—lost 75% of its value in the last year—and vanadium’s lost 70% of its value since December. So, do you want to be involved with those metals? I don’t know. If you’re a speculator in the metals market, [you] can’t really trade them because, with lithium [and] vanadium, those aren’t traded with futures and options market on the world exchanges. Cobalt is, but it’s such a very small market, you know, that would individual speculator want to get into those sorts of things? I don’t think so.

So, then, how can you play them? Well, you can play them through the exploration or development companies, but they tend to go exponential with the prices, and they go screaming down the other side and oftentimes never recover when the metals go down. I mean these are parabolic spikes over the last year or so on all three of these metals.

Personally, I run away from these things. If you’re going to play any of these specialty metals—and that would include the rare earths and the battery metals and tungsten and antimony and it just goes on and on and on—realize that those markets are mainly controlled by the Chinese. If you’re going to play any of those stocks, do your due diligence early, get in early and take your profits and get out.

Of all the cobalt in the world, 60%+ comes from the Democratic Republic of Congo. Vanadium? There are three standalone vanadium mines in the world, and most of the vanadium supply is by steel smelters, a byproduct of uranium production, a byproduct from fly ash waste from coal-burning power plants, and finally, residues from petroleum cracking. So, what happened last year? All those byproduct producers said, “Oh, vanadium’s at (whatever it was, can’t remember how high) $34 a pound for vanadium pentoxide.” And, what happened? Well, all those by-product guys said, “Oh, we need to make more vanadium.” They made more vanadium and they created a vanadium market. Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.American) starts recovering vanadium from the White Mesa Mill. You know, so, a standalone vanadium project in northern or central Nevada is not going to make it.

Maurice Jackson: Now, you and I have discussed uranium in previous interviews. We love the value proposition of uranium and one of the catalysts for it is section 232. Give us some of your insights on that.

Mickey Fulp: Trump punted and it really surprised the market because we thought that was going to have actions of substance, if you will, [in July]. He kicked the can down the road 90 days and the market was not expecting that. The market expected a resolution that [would] run these uranium stocks, uranium producers, developers in the U.S.—run them up. They cratered them. [Trump] has 90 days from mid-July; that would be mid-November to act on this. It’s probably a good time to buy uranium stocks right now—specific uranium stocks and for a trade.

Maurice Jackson: If you were a betting man, how do you think the outcome’s going to be?

Mickey Fulp: Well, I’ve already gone on record with four scenarios I thought he could do to support the uranium mining industry. And they were all categorically wrong because he punted. He could put on subsidies, he could put on tariffs, he could give tax credits; [there are] a variety of things they can do to help the domestic uranium mining industry. He could require quotas from U.S. producers. We’ll just have to see.

Maurice Jackson: I love having this discussion with you because I learn so much from you. Mickey, if someone else wants to learn more from you, what’s the website?

Mickey Fulp: MercenaryGeologists.com is the website. We put out something on the order of four pieces of content, including this interview, on the website every week. And, you will get a notice if you’re a subscriber. Best thing about becoming a subscriber is it’s free. So, the price is right. And, we’re very active on Twitter @mercenarygeo, with something a little less than 52,000 Twitter followers.

Maurice Jackson: Well, our subscription price—we match with yours. It’s free, so we welcome you; please to visit us at www.provenandprobable.com. Mickey Fulp, it’s always an honor to have you on our show. Thanks for joining us today.

Mickey Fulp: Thanks a lot, Maurice.

Maurice Jackson is the founder of Proven and Probable, a U.S. based media company that has a dual prong approach. The first prong identifies undervalued junior mining opportunities, conducts site visits around the world, and interviews CEOs of companies that are on major world stock exchanges and some of the most respected names in the natural resource space. The second prong, Proven and Probable is an independent licensed representative of Miles Franklin to sell physical precious metals in a number of options to expand a precious metals portfolio, offering physical delivery to home or business of gold, silver, platinum, palladium and rhodium, a fully insured offshore depository, as well as precious metals IRAs, and ledger private blockchain distributed ledger technology stored at the Royal Canadian Mint.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. Proven and Probable disclosures are listed below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Energy Fuels. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Proven and Probable LLC receives financial compensation from its sponsors. The compensation is used is to fund both sponsor-specific activities and general report activities, website, and general and administrative costs. Sponsor-specific activities may include aggregating content and publishing that content on the Proven and Probable website, creating and maintaining company landing pages, interviewing key management, posting a banner/billboard, and/or issuing press releases. The fees also cover the costs for Proven and Probable to publish sector-specific information on our site, and also to create content by interviewing experts in the sector. Monthly sponsorship fees range from $1,000 to $4,000 per month. Proven and Probable LLC does accept stock for payment of sponsorship fees. Sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

The Information presented in Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. You should not make any decision, financial, investments, trading or otherwise, based on any of the information presented on this forum without undertaking independent due diligence and consultation with a professional broker or competent financial advisor. You understand that you are using any and all Information available on or through this forum at your own risk.

Source: Maurice Jackson for Streetwise Reports   08/08/2019

Mickey Fulp, the Mercenary Geologist, and Maurice Jackson of Proven and Probable discuss the resurgent precious metals markets, as well as base metals, critical metals and energy metals.

Maurice Jackson: Joining me for a conversation today is Mickey Fulp, the Mercenary Geologist. Glad to have you here today to share your market insights, which are quite remarkable. And, I want to get your thoughts right now on the gold price. The market seems to be quite exuberant at the current price of $1,400 per ounce. Is $1,400 the new floor or is it a head fake?

Mickey Fulp: I'm being increasingly convinced it's a floor because no matter what the U.S. dollar seems to do—I mean the U.S. dollar's up 150 points or more over the last month or so. And, despite its perturbations on a daily basis, gold's hanging in there. Hasn't even gotten close to breaching $1,400 for quite some time. So, it was a bit iffy. So, there's certainly resistance on the downside in the $1,385 range. What's the resistance on the upside? Well, probably $1,450. We're pushing that this morning.

Maurice Jackson: We certainly are.

Mickey Fulp: We keep establishing new six-year highs, and it was six years ago since gold even approached these sorts of values. You know, as a geologist, exploration geologists do have to have an eternally optimistic side. Maybe that's coming out. But [it's] looking better—if we can get through to Labor Day and then through the return of everybody to the market, let's say by the Precious Metals Summit in Beaver Creek, Colorado, in late September.

If we can get through that, then I think it could be onward and upward for gold because then you have seasonal factors coming into the equation—Indian wedding and festivals specifically. And then the love trade comes into the Western world—those two or three weeks before Christmas where we all tend to buy our loved ones gold-bearing bling.

Maurice Jackson: I don't know if my wife would agree with that but, honey, I will get you something this year. Mickey, how about silver? Any thoughts on silver?

Mickey Fulp: Well, silver's lagging behind and the gold-silver ratio is starting to go down. But, a month ago it was well above 92, and that is extremely rare territory. I think about 2% of the time since Nixon took us off the gold standard in 1970 has the gold-silver ratio been that high. It's about 87 right now. You noticed overnight or yesterday, when gold popped a little bit, or even this morning when it's kind of gone another leg up, [that] silver hasn't participated in this last little run here.

Maurice Jackson: I know you're not the biggest fan of silver, if I'm not mistaken, but would you actively be buying silver right now?

Mickey Fulp: Well, if I had a choice of buying gold or silver right now, I'd be buying silver because it's undervalued with respect to gold. That ratio, the mean, the median and the average are both about 55 to 56, and so you know, that ratio will come into play at some point, again. If you buy silver now and that ratio normalizes, then you trade in your silver for your gold. The other thing that's going on right now is numismatic gold coins are selling at not much over the markup for a current bullion coin from the government. I actually picked up a couple of numismatics yesterday, so I've already got the bling for my girl.

Maurice Jackson: I have as well. Regarding gold numismatic coins. I like divisibility so I don't usually go for the one-ounce. I like the half-ounce gold numismatic and one-tenth platinum, which the one-tenth actually leads to my next question for you. And, that is platinum. What are your thoughts on platinum?

Mickey Fulp: Well, I bought some platinum back in January, I think when it went below $800/ounce. It's now made triple bottoms below $800 in the last year. So, triple bottoms, as the chartists will tell you, that's when you want to buy. When it made its last little foray under $800 was month or five weeks ago, if memory serves, and now it's at $850 again. That's another buy. It's good time to buy platinum.

Palladium dropped $100 bucks overnight or yesterday. I think that must solely be due to a bunch of longs [getting] shaken out of market when Trump put those additional tariffs on, because palladium is an industrial metal. It's not a precious metal. So it lost, dropped like a rocket yesterday.

Maurice Jackson: Now, I would be remiss if I didn't ask you, because my e-mail box will be inundated with why didn't you ask Mickey [if] he's going to buy silver or platinum? Of the two, which one would you prefer to buy?

Mickey Fulp: Oh, I don't know. I just buy silver coins kind of willy nilly. I bought bags of junk silver in 2008–2009, so for me, buying silver, I just buy a few coins here and there. But, if I was going to buy a significant amount of precious metals right now personally, I like those platinum philharmonic coins. Some beautiful coins.

Maurice Jackson: And, just a little insight for those [reading] as well, if you're looking at silver. I get this question asked as well: What has the lowest premium right now? The answer is junk silver. Junk silver right now has the lowest premium.

Mickey Fulp: I was unaware of that.

Maurice Jackson: Yes.

Mickey Fulp: So, it's always good to have a bag of junk silver around.

Maurice Jackson: It certainly is. When silver is out of favor—most people don’t realize this—it is junk silver that has the lowest premium. When silver is in favor, it's the junk silver that has the highest premium.

Mickey Fulp: Oh, you should know, as a dealer for our buddies at Miles Franklin.

Maurice Jackson: Absolutely. Let's switch the conversation. Let's go to base metals. What has your attention in base metals?

Mickey Fulp: Well, copper always does. And copper's gotten knocked down again on the trade tariffs, and some of the copper companies are on sale right now. The base metal complex overall, from the supply-demand, fundamentals viewpoint, looks very bullish, but nothing's going to happen in the base metal complex. There's not much upside that's going to occur until something happens with China and the U.S.—some positive resolution or something. Some news that actually is of substance indicates this is going to get better before it gets worse. And we haven't had that.

Maurice Jackson: So, what do you say to someone who says they're ecstatic about battery metals right there. They're going to say, "Mickey, you're crazy; we're going lithium; we're going electric." What do you have to say about that?

Mickey Fulp: Well, I'd say you can't go electric without copper. So, if you want to look at a battery metal, an electric metal, look at copper. The so-called battery metals—which would include lithium and cobalt and vanadium—just when those prices go exponential, they go parabolic.

And that's happened over the last year on all those metals. Lithium's lost 45% value from 14 months ago. Cobalt's less—lost 75% of its value in the last year—and vanadium's lost 70% of its value since December. So, do you want to be involved with those metals? I don't know. If you're a speculator in the metals market, [you] can't really trade them because, with lithium [and] vanadium, those aren't traded with futures and options market on the world exchanges. Cobalt is, but it's such a very small market, you know, that would individual speculator want to get into those sorts of things? I don't think so.

So, then, how can you play them? Well, you can play them through the exploration or development companies, but they tend to go exponential with the prices, and they go screaming down the other side and oftentimes never recover when the metals go down. I mean these are parabolic spikes over the last year or so on all three of these metals.

Personally, I run away from these things. If you're going to play any of these specialty metals—and that would include the rare earths and the battery metals and tungsten and antimony and it just goes on and on and on—realize that those markets are mainly controlled by the Chinese. If you're going to play any of those stocks, do your due diligence early, get in early and take your profits and get out.

Of all the cobalt in the world, 60%+ comes from the Democratic Republic of Congo. Vanadium? There are three standalone vanadium mines in the world, and most of the vanadium supply is by steel smelters, a byproduct of uranium production, a byproduct from fly ash waste from coal-burning power plants, and finally, residues from petroleum cracking. So, what happened last year? All those byproduct producers said, "Oh, vanadium's at (whatever it was, can't remember how high) $34 a pound for vanadium pentoxide." And, what happened? Well, all those by-product guys said, "Oh, we need to make more vanadium." They made more vanadium and they created a vanadium market. Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.American) starts recovering vanadium from the White Mesa Mill. You know, so, a standalone vanadium project in northern or central Nevada is not going to make it.

Maurice Jackson: Now, you and I have discussed uranium in previous interviews. We love the value proposition of uranium and one of the catalysts for it is section 232. Give us some of your insights on that.

Mickey Fulp: Trump punted and it really surprised the market because we thought that was going to have actions of substance, if you will, [in July]. He kicked the can down the road 90 days and the market was not expecting that. The market expected a resolution that [would] run these uranium stocks, uranium producers, developers in the U.S.—run them up. They cratered them. [Trump] has 90 days from mid-July; that would be mid-November to act on this. It's probably a good time to buy uranium stocks right now—specific uranium stocks and for a trade.

Maurice Jackson: If you were a betting man, how do you think the outcome's going to be?

Mickey Fulp: Well, I've already gone on record with four scenarios I thought he could do to support the uranium mining industry. And they were all categorically wrong because he punted. He could put on subsidies, he could put on tariffs, he could give tax credits; [there are] a variety of things they can do to help the domestic uranium mining industry. He could require quotas from U.S. producers. We'll just have to see.

Maurice Jackson: I love having this discussion with you because I learn so much from you. Mickey, if someone else wants to learn more from you, what's the website?

Mickey Fulp: MercenaryGeologists.com is the website. We put out something on the order of four pieces of content, including this interview, on the website every week. And, you will get a notice if you're a subscriber. Best thing about becoming a subscriber is it's free. So, the price is right. And, we're very active on Twitter @mercenarygeo, with something a little less than 52,000 Twitter followers.

Maurice Jackson: Well, our subscription price—we match with yours. It's free, so we welcome you; please to visit us at www.provenandprobable.com. Mickey Fulp, it's always an honor to have you on our show. Thanks for joining us today.

Mickey Fulp: Thanks a lot, Maurice.

Maurice Jackson is the founder of Proven and Probable, a U.S. based media company that has a dual prong approach. The first prong identifies undervalued junior mining opportunities, conducts site visits around the world, and interviews CEOs of companies that are on major world stock exchanges and some of the most respected names in the natural resource space. The second prong, Proven and Probable is an independent licensed representative of Miles Franklin to sell physical precious metals in a number of options to expand a precious metals portfolio, offering physical delivery to home or business of gold, silver, platinum, palladium and rhodium, a fully insured offshore depository, as well as precious metals IRAs, and ledger private blockchain distributed ledger technology stored at the Royal Canadian Mint.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. Proven and Probable disclosures are listed below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Energy Fuels. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Proven and Probable LLC receives financial compensation from its sponsors. The compensation is used is to fund both sponsor-specific activities and general report activities, website, and general and administrative costs. Sponsor-specific activities may include aggregating content and publishing that content on the Proven and Probable website, creating and maintaining company landing pages, interviewing key management, posting a banner/billboard, and/or issuing press releases. The fees also cover the costs for Proven and Probable to publish sector-specific information on our site, and also to create content by interviewing experts in the sector. Monthly sponsorship fees range from $1,000 to $4,000 per month. Proven and Probable LLC does accept stock for payment of sponsorship fees. Sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

The Information presented in Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. You should not make any decision, financial, investments, trading or otherwise, based on any of the information presented on this forum without undertaking independent due diligence and consultation with a professional broker or competent financial advisor. You understand that you are using any and all Information available on or through this forum at your own risk.

WPX Energy Raises Full-Year Oil Guidance by 4% and Initiates $400M Stock Repurchase Plan

Source: Streetwise Reports   08/06/2019

Shares of WPX Energy are trading higher after it released second quarter earnings and raised full-year oil guidance by 4%. The firm also announced it is initiating a 24-month, $400 million share repurchase program.

After the close of trading yesterday, WPX Energy Inc. (WPX:NYSE) reported unaudited second quarter earnings for the period ending June 30, 2019. The company registered total product revenues of $558 million in Q2/19, a 7% increase over Q2/18, with the quarterly oil sales component growing by 9% in the same period. Total product revenues were $1,065 million in H2/19, up 15% over the $927 million recorded in H2/18.

Total production in Q2/19 averaged 159.6 MBoe/day, which was 28% higher than a year ago, with oil and natural gas liquids volumes comprising 79% of total volumes. Oil sales of $511 million from 97.9 Mbbl/d accounted for 92% of Q2/19 product revenues.

Cash flow from operations in H2/19, inclusive of hedge impact, increased 48% over H2/18 to $634 million. The H2/19 results included $362 million realized in Q2/19.

The report indicated income available to common stockholders of $305 million, or income of $0.72 per share on a diluted basis in Q2/19. The firm advised that the results include a $247 million recorded gain related to WPX’s equity interest in the sale of the Oryx II pipeline project, and excluding the Oryx gain and other items, such as derivatives, WPX posted adjusted net income of $0.09 per share.

Additionally, WPX announced that its board of directors has authorized a plan for the company to repurchase up to $400 million of shares over the next 24 months. WPX’s Chairman and CEO Rick Muncrief commented, “This accelerates our original plan to return capital to shareholders in 2021…and the current market sentiment has created favorable circumstances for an action like this, and if the market remains irrational, we will be opportunistic. . .We expect to generate $100 million to $150 million in free cash flow in the back half of this year, which will help support our repurchase program.”

The company revised its 2019 full-year total production estimates to 160–165 Mboe/d in 2019, up from prior estimates of 149–161 Mboe/d, and now expects to produce 101–103 Mbbl/d of oil for full-year 2019, up from prior estimates of 96–100 Mbbl/d. The firm indicated that Q3/19 oil volumes are driving the upward revision.

WPX Energy is an independent oil and natural gas exploration and production company that focuses on exploiting, developing and growing its oil positions in the Delaware (Permian area sub-basin) and San Juan basins in Texas and New Mexico and in the Williston Basin in North Dakota. The firm states that it is engaged in the exploitation and development of long-life unconventional properties. In the company’s 2018 10-K report filed with the SEC the firm lists that its portfolio of proven oil and natural gas reserves as of December 31, 2018, was 479 MMboe reflecting a mix of 61% crude oil, 21% natural gas and 18% NGLs. The company operates 657 wells in the Delaware basin and also owns interests in 808 wells operated by others, and holds approximately 130,000 net acres there. Additionally, the firm operates 323 wells in the Williston Basin and also owns interest in 87 wells operated by others, and holds 85,087 net acres in the Williston Basin.

WPX shares opened up nearly 18% higher today at $10.53 (+$1.60, +17.92%) compared to yesterday’s close of $8.93. Shares have traded between $9.38-10.65 on greater than average volume. Currently shares are trading at $9.78 (+$0.85, +9.52%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: WPX:NYSE,
)

Source: Streetwise Reports   08/06/2019

Shares of WPX Energy are trading higher after it released second quarter earnings and raised full-year oil guidance by 4%. The firm also announced it is initiating a 24-month, $400 million share repurchase program.

After the close of trading yesterday, WPX Energy Inc. (WPX:NYSE) reported unaudited second quarter earnings for the period ending June 30, 2019. The company registered total product revenues of $558 million in Q2/19, a 7% increase over Q2/18, with the quarterly oil sales component growing by 9% in the same period. Total product revenues were $1,065 million in H2/19, up 15% over the $927 million recorded in H2/18.

Total production in Q2/19 averaged 159.6 MBoe/day, which was 28% higher than a year ago, with oil and natural gas liquids volumes comprising 79% of total volumes. Oil sales of $511 million from 97.9 Mbbl/d accounted for 92% of Q2/19 product revenues.

Cash flow from operations in H2/19, inclusive of hedge impact, increased 48% over H2/18 to $634 million. The H2/19 results included $362 million realized in Q2/19.

The report indicated income available to common stockholders of $305 million, or income of $0.72 per share on a diluted basis in Q2/19. The firm advised that the results include a $247 million recorded gain related to WPX's equity interest in the sale of the Oryx II pipeline project, and excluding the Oryx gain and other items, such as derivatives, WPX posted adjusted net income of $0.09 per share.

Additionally, WPX announced that its board of directors has authorized a plan for the company to repurchase up to $400 million of shares over the next 24 months. WPX's Chairman and CEO Rick Muncrief commented, "This accelerates our original plan to return capital to shareholders in 2021...and the current market sentiment has created favorable circumstances for an action like this, and if the market remains irrational, we will be opportunistic. . .We expect to generate $100 million to $150 million in free cash flow in the back half of this year, which will help support our repurchase program."

The company revised its 2019 full-year total production estimates to 160–165 Mboe/d in 2019, up from prior estimates of 149–161 Mboe/d, and now expects to produce 101–103 Mbbl/d of oil for full-year 2019, up from prior estimates of 96–100 Mbbl/d. The firm indicated that Q3/19 oil volumes are driving the upward revision.

WPX Energy is an independent oil and natural gas exploration and production company that focuses on exploiting, developing and growing its oil positions in the Delaware (Permian area sub-basin) and San Juan basins in Texas and New Mexico and in the Williston Basin in North Dakota. The firm states that it is engaged in the exploitation and development of long-life unconventional properties. In the company's 2018 10-K report filed with the SEC the firm lists that its portfolio of proven oil and natural gas reserves as of December 31, 2018, was 479 MMboe reflecting a mix of 61% crude oil, 21% natural gas and 18% NGLs. The company operates 657 wells in the Delaware basin and also owns interests in 808 wells operated by others, and holds approximately 130,000 net acres there. Additionally, the firm operates 323 wells in the Williston Basin and also owns interest in 87 wells operated by others, and holds 85,087 net acres in the Williston Basin.

WPX shares opened up nearly 18% higher today at $10.53 (+$1.60, +17.92%) compared to yesterday's close of $8.93. Shares have traded between $9.38-10.65 on greater than average volume. Currently shares are trading at $9.78 (+$0.85, +9.52%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: WPX:NYSE, )

Texas Oil & Gas Company’s Production Up, Costs Down in Q2/19

Source: Streetwise Reports   08/06/2019

A review of the firm’s quarterly operational and financial results is given in a Raymond James report.

In an Aug. 2 research note, Raymond James analyst John Freeman reported that Noble Energy Inc. (NBL:NYSE) delivered a “strong Q2/19.”

He provided the company’s Q2/19’s numbers and pointed out the highlights.

As for production, Noble produced 348,500 barrels of oil equivalent per day in Q2/19, up 4% quarter over quarter (QOQ), noted Freeman. This quantity exceeded consensus’ expectation by 2% and was in line with Raymond James’ forecast.

As for costs during Q2/19, capex was “a whopping 10% below our estimates due to reduced U.S. onshore well costs,” Freeman highlighted. Capital expenditures amounted to $618 million versus Raymond James $705 million and the Street’s $739 million projections. Q2/19 capex was down 10% from Q1/19.

Regarding well costs, they dropped 15% in the lower 48 states since Q4/18. Noble is beating its well cost estimates in both the Delaware and DJ basins, due to “a sharp increase in completion stages per day (up 50% compared to back half of 2018) and faster drilling times (down to five drilling days per well in the DJ),” Freeman explained.

In light of this cost landscape, he added, Noble decreased its 2019 capital spending guidance, specifically its projected lease operating expenses by 2% and its anticipated depreciation, depletion and amortization costs by 3%, both on a per barrel of oil equivalent basis.

As for finances, the energy company reported an adjusted EBITDA of $589 million, a 5% QOQ increase, Freeman relayed. It was in line with the Street’s projection but below Raymond James’ $600 forecast. Adjusted earnings per share was -$0.10, 11% higher than Q1/19. It exceeded both Raymond James and consensus’ estimates of -$0.11 and -$0.12, respectively.

In his report, Freeman also provided an update on Noble’s Leviathan project. About 88% complete, he wrote, the project is on time and on budget for starting production by year-end 2019. The company anticipates producing about 800 million cubic feet equivalent per day in gross volumes in 2020.

Raymond James has an Outperform rating but no target price on Noble Energy. The oil & gas company’s stock is currently trading at around $21.40 per share.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Raymond James, Noble Energy Inc., August 2, 2019

ANALYST INFORMATION

Analysts Holdings and Compensation: Equity analysts and their staffs at Raymond James are compensated based on a salary and bonus system. Several factors enter into the bonus determination, including quality and performance of research product, the analyst’s success in rating stocks versus an industry index, and support effectiveness to trading and the retail and institutional sales forces. Other factors may include but are not limited to: overall ratings from internal (other than investment banking) or external parties and the general productivity and revenue generated in covered stocks.

The analyst John Freeman, primarily responsible for the preparation of this research report, attests to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers and (2) that no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views in this research report. In addition, said analyst(s) has not received compensation from any subject company in the last 12 months.

RAYMOND JAMES RELATIONSHIP DISCLOSURES
Certain affiliates of the RJ Group expect to receive or intend to seek compensation for investment banking services from all companies under research coverage within the next three months.

Raymond James & Associates, Inc. makes a market in the shares of Noble Energy, Inc.

Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available here.

( Companies Mentioned: NBL:NYSE,
)

Source: Streetwise Reports   08/06/2019

A review of the firm's quarterly operational and financial results is given in a Raymond James report.

In an Aug. 2 research note, Raymond James analyst John Freeman reported that Noble Energy Inc. (NBL:NYSE) delivered a "strong Q2/19."

He provided the company's Q2/19's numbers and pointed out the highlights.

As for production, Noble produced 348,500 barrels of oil equivalent per day in Q2/19, up 4% quarter over quarter (QOQ), noted Freeman. This quantity exceeded consensus' expectation by 2% and was in line with Raymond James' forecast.

As for costs during Q2/19, capex was "a whopping 10% below our estimates due to reduced U.S. onshore well costs," Freeman highlighted. Capital expenditures amounted to $618 million versus Raymond James $705 million and the Street's $739 million projections. Q2/19 capex was down 10% from Q1/19.

Regarding well costs, they dropped 15% in the lower 48 states since Q4/18. Noble is beating its well cost estimates in both the Delaware and DJ basins, due to "a sharp increase in completion stages per day (up 50% compared to back half of 2018) and faster drilling times (down to five drilling days per well in the DJ)," Freeman explained.

In light of this cost landscape, he added, Noble decreased its 2019 capital spending guidance, specifically its projected lease operating expenses by 2% and its anticipated depreciation, depletion and amortization costs by 3%, both on a per barrel of oil equivalent basis.

As for finances, the energy company reported an adjusted EBITDA of $589 million, a 5% QOQ increase, Freeman relayed. It was in line with the Street's projection but below Raymond James' $600 forecast. Adjusted earnings per share was -$0.10, 11% higher than Q1/19. It exceeded both Raymond James and consensus' estimates of -$0.11 and -$0.12, respectively.

In his report, Freeman also provided an update on Noble's Leviathan project. About 88% complete, he wrote, the project is on time and on budget for starting production by year-end 2019. The company anticipates producing about 800 million cubic feet equivalent per day in gross volumes in 2020.

Raymond James has an Outperform rating but no target price on Noble Energy. The oil & gas company's stock is currently trading at around $21.40 per share.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Raymond James, Noble Energy Inc., August 2, 2019

ANALYST INFORMATION

Analysts Holdings and Compensation: Equity analysts and their staffs at Raymond James are compensated based on a salary and bonus system. Several factors enter into the bonus determination, including quality and performance of research product, the analyst's success in rating stocks versus an industry index, and support effectiveness to trading and the retail and institutional sales forces. Other factors may include but are not limited to: overall ratings from internal (other than investment banking) or external parties and the general productivity and revenue generated in covered stocks.

The analyst John Freeman, primarily responsible for the preparation of this research report, attests to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers and (2) that no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views in this research report. In addition, said analyst(s) has not received compensation from any subject company in the last 12 months.

RAYMOND JAMES RELATIONSHIP DISCLOSURES
Certain affiliates of the RJ Group expect to receive or intend to seek compensation for investment banking services from all companies under research coverage within the next three months.

Raymond James & Associates, Inc. makes a market in the shares of Noble Energy, Inc.

Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available here.

( Companies Mentioned: NBL:NYSE, )

MLP Achieves ‘Another Beat and Raise’ in Q2/19

Source: Streetwise Reports   08/04/2019

Performance during the quarter and guidance for the rest of 2019 are reviewed in a Raymond James report.

In an Aug. 1 research note, Raymond James analyst Justin Jenkins reported that Magellan Midstream Partners L.P.’s (MMP:NYSE) Q2/19 results are positive, as is the nearing completion of several growth projects.

Jenkins highlighted that the master limited partnership (MLP) beat adjusted EBITDA and distributable cash flow (DCF) estimates in Q2/19. Adjusted EBITDA was $378.3 million versus Raymond James’ $355.5 million estimate and consensus’ $356 million forecast. Strong performance in Magellan’s Crude and Refined Products segments and lower maintenance and interest expense drove this.

DCF came in at $314.8 million, well above Raymond James and consensus’ estimates of $284.3 million and $285.1 million, respectively.

As for performance by segment, Jenkins indicated that Refined Products and Crude did the best, each beating Raymond James’ projection. Refined Products returned a $238 million operating margin; Raymond James expected $205.5 million. Crude’s operating margin was $160.3 million, and Raymond James forecasted $148 million.

The Marine segment fared worse. Its Q2/19 operating margin was $30 million, below Raymond James’ $33.4 million forecast. Refined Products and Crude, however, more than offset Marine’s underperformance.

Jenkins noted that based on strong Q2/19 performance and a positive outlook for Q3/19 spot shipments on BridgeTex/Longhorn, Midstream’s management increased full-year 2019 EBITDA/DCF guidance by 3%, or $40 million, which still remains conservative, Jenkins indicated.

He added, “Further, if the market opportunity remains open (which we think is likely for at least some portion of Q4/19), continued spot shipments would add about $20 million per quarter to DCF based on prior guidance.” In addition, management remains committed to its goal of growing distribution by 5% this year.

Jenkins pointed out that several of Midstream’s growth projects are nearly finished, including the Galena Park marine terminal, the Pasadena joint venture, Seabrook and others. To complete them, management expects to outlay $1.1 billion in 2019 and $150 million in 2020.

Raymond James has an Outperform rating on Magellan Midstream. The MLP currently has a share price of around $66.64.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Raymond James, Magellan Midstream Partners L.P., August 1, 2019

ANALYST INFORMATION

Analyst Holdings and Compensation: Equity analysts and their staffs at Raymond James are compensated based on a salary and bonus system. Several factors enter into the bonus determination including quality and performance of research product, the analyst’s success in rating stocks versus an industry index, and support effectiveness to trading and the retail and institutional sales forces. Other factors may include but are not limited to: overall ratings from internal (other than investment banking) or external parties and the general productivity and revenue generated in covered stocks.

The analysts Justin Jenkins and J.R. Weston, primarily responsible for the preparation of this research report, attest to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers and that no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views in this research report. In addition, said analyst(s) has not received compensation from any subject company in the last 12 months.

RAYMOND JAMES RELATIONSHIP DISCLOSURES
Certain affiliates of the RJ Group expect to receive or intend to seek compensation for investment banking services from all companies under research coverage within the next three months.

Limited Partnerships may generate unrelated business taxable income (UBTI), which can create a tax liability that must be paid from a retirement account.

Raymond James & Associates, Inc. makes a market in the shares of Magellan Midstream Partners L.P.

Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available here.

( Companies Mentioned: MMP:NYSE,
)

Source: Streetwise Reports   08/04/2019

Performance during the quarter and guidance for the rest of 2019 are reviewed in a Raymond James report.

In an Aug. 1 research note, Raymond James analyst Justin Jenkins reported that Magellan Midstream Partners L.P.'s (MMP:NYSE) Q2/19 results are positive, as is the nearing completion of several growth projects.

Jenkins highlighted that the master limited partnership (MLP) beat adjusted EBITDA and distributable cash flow (DCF) estimates in Q2/19. Adjusted EBITDA was $378.3 million versus Raymond James' $355.5 million estimate and consensus' $356 million forecast. Strong performance in Magellan's Crude and Refined Products segments and lower maintenance and interest expense drove this.

DCF came in at $314.8 million, well above Raymond James and consensus' estimates of $284.3 million and $285.1 million, respectively.

As for performance by segment, Jenkins indicated that Refined Products and Crude did the best, each beating Raymond James' projection. Refined Products returned a $238 million operating margin; Raymond James expected $205.5 million. Crude's operating margin was $160.3 million, and Raymond James forecasted $148 million.

The Marine segment fared worse. Its Q2/19 operating margin was $30 million, below Raymond James' $33.4 million forecast. Refined Products and Crude, however, more than offset Marine's underperformance.

Jenkins noted that based on strong Q2/19 performance and a positive outlook for Q3/19 spot shipments on BridgeTex/Longhorn, Midstream's management increased full-year 2019 EBITDA/DCF guidance by 3%, or $40 million, which still remains conservative, Jenkins indicated.

He added, "Further, if the market opportunity remains open (which we think is likely for at least some portion of Q4/19), continued spot shipments would add about $20 million per quarter to DCF based on prior guidance." In addition, management remains committed to its goal of growing distribution by 5% this year.

Jenkins pointed out that several of Midstream's growth projects are nearly finished, including the Galena Park marine terminal, the Pasadena joint venture, Seabrook and others. To complete them, management expects to outlay $1.1 billion in 2019 and $150 million in 2020.

Raymond James has an Outperform rating on Magellan Midstream. The MLP currently has a share price of around $66.64.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Raymond James, Magellan Midstream Partners L.P., August 1, 2019

ANALYST INFORMATION

Analyst Holdings and Compensation: Equity analysts and their staffs at Raymond James are compensated based on a salary and bonus system. Several factors enter into the bonus determination including quality and performance of research product, the analyst's success in rating stocks versus an industry index, and support effectiveness to trading and the retail and institutional sales forces. Other factors may include but are not limited to: overall ratings from internal (other than investment banking) or external parties and the general productivity and revenue generated in covered stocks.

The analysts Justin Jenkins and J.R. Weston, primarily responsible for the preparation of this research report, attest to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers and that no part of the research analyst's compensation was, is, or will be directly or indirectly related to the specific recommendations or views in this research report. In addition, said analyst(s) has not received compensation from any subject company in the last 12 months.

RAYMOND JAMES RELATIONSHIP DISCLOSURES
Certain affiliates of the RJ Group expect to receive or intend to seek compensation for investment banking services from all companies under research coverage within the next three months.
Limited Partnerships may generate unrelated business taxable income (UBTI), which can create a tax liability that must be paid from a retirement account.
Raymond James & Associates, Inc. makes a market in the shares of Magellan Midstream Partners L.P.

Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available here.

( Companies Mentioned: MMP:NYSE, )

Renewable Energy MLP Achieves ‘Clean Results from Strong Hydrology’ in Q2/19

Source: Streetwise Reports   08/02/2019

The highlights of the quarterly update are presented in an iA Securities report.

In a July 31 research note, iA Securities analyst Jeremy Rosenfield reported that Brookfield Renewable Energy Partners L.P.’s (BEP.UN:TSX; BEP:NYSE) Q2/19 results were “roughly in line with estimates.”

Rosenfield reviewed the quarter’s numbers and the near-term outlook for the master limited partnership (MLP).

Strong output, including from hydroelectric assets in North America, which was about 7% higher than the long-term average, drove the quarterly results.

Consolidated EBITDA was $630 million, higher than iA Securities’ forecast of $602 million and consensus’ estimate of $598 million. Proportionate adjusted EBITDA was $400 million, between iA’s $365 projection and consensus’ $407 million forecast.

Q2/19 funds from operations came in at $0.74 per share, above both iA and consensus’ estimates of $0.72 and $0.68 per share, respectively.

Another highlight of the quarterly update, Rosenfield pointed out, is that the development pipeline of MLP “continues to support organic growth,” specifically an average annual 3–5% growth in funds from operations per share (FFO/share) and excluding mergers and acquisitions (M&A) activity. In the hopper are about 130 megawatts (MW) of under construction projects, another greater than 600 MW of construction-ready work and an additional roughly 220 MW of potential repowering jobs.

Supporting longer-term potential upside are the two recent investments, noted Rosenfield—Terraform Power’s acquisition of a generation portfolio for about $720 million along with Brookfield and co-investors’ acquisition of a 50% stake in X-Elio for about $500 million. These transactions could add about $30–40 million of incremental, annual run rate funds from operations beginning in 2020, “with upside from follow-on organic development.”

Overall, increased cash flow resulting from organic growth and M&A should translate to a lower payout in the future, indicated Rosenfield. The MLP aims for average annual FFO/share growth of 6–11% and total yearly shareholder returns of 12–15%. Simultaneously, it “continues to drive its payout downward toward management’s long-term sustainable 70% payout target (on FFO).”

Rosenfield concluded, “We continue to see Brookfield as a premium brand in the sector, supported by premium value hydro assets.”

iA Securities maintained its Hold rating and its US$37 per share price target on Brookfield, whose stock is currently trading at around $36.07 per share.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from iA Securities, Brookfield Renewable Partners L.P., Research Update, July 31, 2019

Conflicts of Interest: The research analyst and or associates who prepared this report are compensated based upon (among other factors) the overall profitability of iA Securities, which may include the profitability of investment banking and related services. In the normal course of its business, iA Securities may provide financial advisory services for the issuers mentioned in this report. iA Securities may buy from or sell to customers the securities of issuers mentioned in this report on a principal basis.

Analyst’s Certification: Each iA Securities research analyst whose name appears on the front page of this research report hereby certifies that (i) the recommendations and opinions expressed in the research report accurately reflect the research analyst’s personal views about the issuer and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst’s compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analyst Trading: iA Securities permits analysts to own and trade in the securities and or the derivatives of the issuer under their research coverage, subject to the following restrictions. No trades can be executed in anticipation of coverage for a period of 30 days prior to the issuance of the report and 5 days after the dissemination of the report to our clients. For a change in recommendation, no trading is allowed for a period of 24 hours after the dissemination of such information to our clients. A transaction against an analyst’s recommendation can only be executed for a reason unrelated to the outlook of the stock for the issuer and with the prior approval of the Director of Research and the Chief Compliance Officer.

Company Related Disclosures:
–In the past 12 months, Industrial Alliance Securities Inc. has managed or co-managed a public offering of securities for the issuer.

–Industrial Alliance Securities Inc. beneficially owned 1% or more of the common equity (including derivatives exercisable or convertible within 60 days) of the issuer as of the month end preceding this report.

–The analyst has visited the issuer’s operations. No payment or reimbursement was received from the issuer for the associated travel costs.

( Companies Mentioned: BEP.UN:TSX,
)

Source: Streetwise Reports   08/02/2019

The highlights of the quarterly update are presented in an iA Securities report.

In a July 31 research note, iA Securities analyst Jeremy Rosenfield reported that Brookfield Renewable Energy Partners L.P.'s (BEP.UN:TSX; BEP:NYSE) Q2/19 results were "roughly in line with estimates."

Rosenfield reviewed the quarter's numbers and the near-term outlook for the master limited partnership (MLP).

Strong output, including from hydroelectric assets in North America, which was about 7% higher than the long-term average, drove the quarterly results.

Consolidated EBITDA was $630 million, higher than iA Securities' forecast of $602 million and consensus' estimate of $598 million. Proportionate adjusted EBITDA was $400 million, between iA's $365 projection and consensus' $407 million forecast.

Q2/19 funds from operations came in at $0.74 per share, above both iA and consensus' estimates of $0.72 and $0.68 per share, respectively.

Another highlight of the quarterly update, Rosenfield pointed out, is that the development pipeline of MLP "continues to support organic growth," specifically an average annual 3–5% growth in funds from operations per share (FFO/share) and excluding mergers and acquisitions (M&A) activity. In the hopper are about 130 megawatts (MW) of under construction projects, another greater than 600 MW of construction-ready work and an additional roughly 220 MW of potential repowering jobs.

Supporting longer-term potential upside are the two recent investments, noted Rosenfield—Terraform Power's acquisition of a generation portfolio for about $720 million along with Brookfield and co-investors' acquisition of a 50% stake in X-Elio for about $500 million. These transactions could add about $30–40 million of incremental, annual run rate funds from operations beginning in 2020, "with upside from follow-on organic development."

Overall, increased cash flow resulting from organic growth and M&A should translate to a lower payout in the future, indicated Rosenfield. The MLP aims for average annual FFO/share growth of 6–11% and total yearly shareholder returns of 12–15%. Simultaneously, it "continues to drive its payout downward toward management's long-term sustainable 70% payout target (on FFO)."

Rosenfield concluded, "We continue to see Brookfield as a premium brand in the sector, supported by premium value hydro assets."

iA Securities maintained its Hold rating and its US$37 per share price target on Brookfield, whose stock is currently trading at around $36.07 per share.

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Disclosures from iA Securities, Brookfield Renewable Partners L.P., Research Update, July 31, 2019

Conflicts of Interest: The research analyst and or associates who prepared this report are compensated based upon (among other factors) the overall profitability of iA Securities, which may include the profitability of investment banking and related services. In the normal course of its business, iA Securities may provide financial advisory services for the issuers mentioned in this report. iA Securities may buy from or sell to customers the securities of issuers mentioned in this report on a principal basis.

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( Companies Mentioned: BEP.UN:TSX, )