Why Peabody Energy, Baytex Energy, and Aegean Marine Petroleum All Made Massive Moves This Week
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Transcript of Why Peabody Energy, Baytex Energy, and Aegean Marine Petroleum All Made Massive Moves This Week
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Why Peabody Energy, Baytex Energy, and Aegean Marine Petroleum All Made Massive
Moves This Week
![Page 2: Why Peabody Energy, Baytex Energy, and Aegean Marine Petroleum All Made Massive Moves This Week](https://reader035.fdocuments.net/reader035/viewer/2022062823/587984551a28ab6c358b6165/html5/thumbnails/2.jpg)
It was an absolutely wild week in the market as the Dow plunged triple digits several days in a row. Meanwhile, crude oil remained very weak with its price touching $40 per barrel. This caused extreme volatility among energy stocks, with dozens down double digits for the week.
However, there were three energy stocks, in particular, which made huge double-digit moves not related to oil prices. These big movers, according to S&P Capital IQ data, were Peabody Energy (NYSE: BTU), Baytex Energy
(NYSE: BTE), and Aegean Marine Petroleum (NYSE: ANW).
Here’s a look at the news that moved these stocks.
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What:Marine fuel logistics company Aegean Marine Petroleum (NYSE: ANW) fell more
than 26% this week.
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So What: Key driver: Second-
quarter results badly missed expectations
EPS of $0.15 per share missed estimates by $0.11 per share
Revenue of $1.2 billion was down 29.8% year over year
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Now What: Company is facing stiff
headwinds from the energy market downturn
Key takeaway: Investors didn’t like the big earnings miss and voted by selling off shares
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What:Canadian oil producer Baytex Energy’s (NYSE: BTE) stock plunged more than 32%
this week.
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So What: Key driver: Decision to
suspend its dividend indefinitely
Company is also cutting 2016 capex by 25% leading to flat year-over-year production
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Now What: As oil prices continue to
weaken, Baytex Energy is digging in for what looks to be a long downturn by reducing all unnecessary cash outflows
Key takeaway: Dividend investors didn’t like the move as they were relying on the company’s previously generous dividend
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What:Coal producer Peabody Energy’s (NYSE: BTU) stock rocketed 60% higher this week.
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So What: Key driver: Reports surfaced
that Peabody was looking to sell its Australian assets to raise cash
It was also revealed that well-known investor George Soros disclosed a small stake in the company
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Now What: Asset sales could improve the
company’s balance sheet and renew its focus on its U.S. asset base
Meanwhile, Soros’ disclosure suggests he doesn’t expect Peabody to go bankrupt, which is a big vote of confidence
Key takeaway: With bankruptcy worries starting to abate, investors are piling in
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