The Zacks Analyst Blog Highlights: Steel Dynamics, MarkWest Energy Partners,
PDC Energy, Helmerich & Payne and Range Resources
CHICAGO, March 21, 2013
CHICAGO, March 21, 2013 /PRNewswire/ --Zacks.com announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include Steel Dynamics, Inc.
(Nasdaq:STLD), MarkWest Energy Partners LP (NYSE:MWE), PDC Energy Inc.
(Nasdaq:PDCE), Helmerich & Payne Inc (NYSE:HP) and Range Resources Corporation
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from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Wednesday's Analyst Blog:
Steel Dynamics Gives 1Q Outlook
Steel producer Steel Dynamics, Inc. (Nasdaq:STLD) provided its first quarter
2013 earnings guidance in the range of 17 cents to 21 cents per share. The
company reported earnings of 20 cents per share in the first quarter of 2012.
Steel Dynamics expects overall steel shipments for the first quarter 2013 to
be considerably flat sequentially due to an expected fall in galvanized sheet
volumes, partially offset by increased long product shipments, including
engineered special-bar-quality products, standard railroad rail and wide
Steel Dynamics expects its metals recycling operation's financial results to
deteriorate slightly in the first quarter 2013 on a sequential basis, as a
projected increase in shipping volumes will be more than offset by decreased
Steel fabrication operations segment of Steel Dynamics is anticipated to be
profitable for the fifth consecutive quarter, due to the slow improvement in
the non-residential construction activity.
Steel Dynamics believes that its performance will be positively impacted by
strong residential construction market, automotive and manufacturing markets
and improvements in the non-residential construction demand. However, there is
an apprehension that Steel Dynamics may be negatively impacted by the global
economic uncertainty, which affects customer confidence and buying patterns.
Steel Dynamics released its fourth-quarter 2012 results on Jan 28. The company
reported adjusted earnings (excluding positive tax adjustments) of 20 cents
per share in the fourth quarter compared with 14 cents in the same period last
year. Earnings surpassed the Zacks Consensus Estimate of 15 cents. Profit for
the quarter doubled to $60.5 million from $30.2 million in the prior-year
Revenues decreased 8.3% year over year to $1,705 million in the fourth
quarter, but surpassed the Zacks Consensus Estimate of $1,674 million.
Steel Dynamics expects continued demand in the automotive, manufacturing,
energy and residential construction sectors and sees signs of improvement in
the nonresidential construction sector. Steel Dynamics believes their current
capital projects will deliver products that surpass customer's expectations.
Steel Dynamics prospects are to execute its strategic growth plans.
MarkWest Inks Deal with PDC Energy
MarkWest Utica EMG – a joint venture between pipeline operator MarkWest Energy
Partners LP (NYSE:MWE) and energy infrastructure private equity fund The
Energy and Minerals Group – has entered into a deal with PDC Energy Inc.
(Nasdaq:PDCE) – an independent energy firm.
Per the agreement, MarkWest will purvey gathering, processing, fractionation
and marketing services in Utica Shale region for PDC Energy. Utica Shale is
basically a rock unit and has a huge potential of becoming a natural gas
resource. Utica Shale underlies parts of Kentucky, Maryland, New York, Ohio,
Pennsylvania, Tennessee, West Virginia and Virginia in the U.S.
By the end of the second quarter of 2013, MarkWest is expected to start
gathering and processing of PDC Energy's liquids-rich gas that will be
produced from Guernsey County, Ohio. The initial production from PDC Energy's
operation in the Utica Shale is planned to be processed at Cadiz complex of
MarkWest, situated in Harrison County, Ohio.
PDC Energy's gas will then be carried to the Seneca complex for further
processing, by the second half of 2013. The Seneca complex is based in the
Noble County, Ohio.
Along with developing high-grade processing and gathering infrastructure for
PDC Energy, MarkWest also plans to finish the installation of fractionation
facility in Harrison County, Ohio, by the first quarter of 2014. The facility
is expected to have a fractionation capacity of 100,000 barrels of liquid per
Denver, Colorado-based MarkWest Energy is a master limited partnership (MLP).
The firm is engaged in the gathering, processing and transmission of natural
gas, transportation, fractionation and storage of natural gas liquids (NGLs),
and the gathering and transportation of crude oil. MarkWest Energy Partners
conducts its operations in four segments: Southwest, Northeast, Liberty and
Acquisitions have historically played a major role in the partnership's growth
profile and are expected to remain significant. MarkWest Energy may find it
difficult to complete accretive transactions in the future, which could
negatively impact its growth rate.
MarkWest Energy currently carries a Zacks Rank #5 (Strong Sell), implying that
it is expected to significantly underperform the broader U.S. equity market
over the next one to three months.
In the energy sector, Helmerich & Payne Inc (NYSE:HP) and Range Resources
Corporation (NYSE:RRC) display better fundamentals and currently carry a Zacks
Rank #1 (Strong Buy).
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