Energy Stock Updates: Entergy Corporation (NYSE:ETR), CONSOL Energy Inc. (NYSE:CNX), MarkWest Energy Partners LP (NYSE:MWE)

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By David Scouts on July 29, 2014 Energy & Solar

Entergy Corporation (NYSE:ETR) grew its earnings for Q2 ended June 30, driven by strong sales in its utility and wholesale commodities segments. It also reiterated its operational earnings guidance for 2014, in line with analyst forecast.

The integrated energy company said earnings on an operational basis were $200.3 million, or $1.11 per share, compared with $179.7 million, or $1.01 per share, in Q2 2013. Analysts were expecting $1.10, according to Capital IQ. Earnings, as reported, were $189.4 million, or $1.05 per share, compared with $163.7 million, or $92 cents per share, last year.

Revenue stood at $3 million, up from last year’s $2.7 million, in line with the Capital IQ consensus. Entergy affirmed its previously issued 2014 operational earnings guidance to be in the range of $5.55 to $6.75 per share. Analysts are calling for $6.20, as compiled by Capital IQ.

CONSOL Energy Inc. (NYSE:CNX) reported a wider loss from the same period a year ago, missing analyst estimates, but beat the Street view on total revenues, fueled by production growth in the E&P division.

The company has reported a Q2 net loss of $0.11 per share, wider than the loss of $0.05 per diluted share from the year-earlier quarter and missing analyst estimates of $0.24 per share in earnings. Total revenue of $937.37 million was up from $828.16 million in Q2 2013 and beat analyst projections of $923.28 million.

“Our quarterly gas production came in toward the upper end of our guidance range, our gas pricing held steady with last year’s quarter while our unit costs dropped meaningfully, especially in the Marcellus Shale, where cash costs below $2 per Mcfe were achieved,” said Nicholas J. DeIuliis, president and CEO. “Our strategic focus, however, remains on NAV per share accretion. The latest example of that focus is our recently-announced gas midstream MLP that we intend to have up and running in the next few months.”

Production in CONSOL’s E&P Division was a record 51.9 Bcfe, an increase of 34% from the 38.6 Bcfe produced in the year-earlier quarter. Average realized prices of $4.44 per Mcfe, when combined with declining unit costs of $3.44 per Mcfe, resulted in a margin of $1.00 per Mcfe, up from the $0.69 per Mcfe margin achieved in the year-earlier quarter. Q3 gas production, net to CONSOL, is expected to be 59 — 61 Bcfe, while annual 2014 production guidance was recently raised to 225 — 235 Bcfe, from 215 — 235 Bcfe. The company expects its 2015 and 2016 annual gas production to grow by 30%.

CONSOL has increased thermal guidance for 2014 due to the strong start in both sales and production. In coal, the low volume guidance range for 2014 has again been lowered from that shown three months ago to reflect a deterioration in pricing.

The company has also announced a $200 million offering of 5.875% senior notes due 2022, a follow-on to a $1.6 billion offering of the same series of notes completed April 16, 2014. CONSOL intends to use the net proceeds of the sale of the additional notes, together with cash on hand, to fund a purchase of up to $200 million principal amount of its 8.25% senior notes due 2020 pursuant to a modified “Dutch Auction” cash tender offer.

MarkWest Energy Partners LP (NYSE:MWE), a natural gas gathering, processing and transportation company, has been upgraded by analysts at Wunderlich Securities to a buy rating from a hold.

The firm also boosted its price target on the stock to $83 from $68 a share, which marks a potential upside of 15% from its Monday close.