Nt4.zacks.com
| Taipan Resource |(TAIPF-OTC) |
|Current Recommendation |Neutral |
|Prior Recommendation |Outperform |
|Date of Last Change |02/23/2015 |
| | |
|Current Price (05/29/15) |$0.03 |
|Six- Month Target Price | |
OUTLOOK
|Analyst must write |
SUMMARY DATA
|52-Week High |$0.49 |
|52-Week Low |$0.02 |
|One-Year Return (%) |-94.12 |
|Beta |-3.03 |
|Average Daily Volume (sh) |12,845 |
| | |
|Shares Outstanding (mil) |107 |
|Market Capitalization ($mil) |$3 |
|Short Interest Ratio (days) |N/A |
|Institutional Ownership (%) |0 |
|Insider Ownership (%) |N/A |
| | |
|Annual Cash Dividend |$0.00 |
|Dividend Yield (%) |0.00 |
| | |
|5-Yr. Historical Growth Rates | |
| Sales (%) |N/A |
| Earnings Per Share (%) |N/A |
| Dividend (%) |N/A |
| | |
|P/E using TTM EPS |N/A |
|P/E using 2015 Estimate |-0.4 |
|P/E using 2016 Estimate |N/A |
| | |
|Zacks Rank |3 |
| | |
|Risk Level |High, |
|Type of Stock |N/A |
|Industry |Oil-C$ Exp&Prod |
|Zacks Rank in Industry |8 of 17 |
KEY POINTS
➢ Analyst must write
OVERVIEW
Analyst must write
INDUSTRY OUTLOOK
INDUSTRY OUTLOOK - NEUTRAL
Our outlook for the U.S. oil and gas E&P industry is Neutral. Through 2003, strength in commodity prices has enabled the group to post impressive year over year operating results. In addition, cash flows and earnings have generally enabled most of the E&P companies to strengthen their balance sheets. However, sequentially we believe the comparisons are going to become much more difficult.
Looking ahead, 2004 consensus commodity price forecasts are considerably lower than today's pricing. Additionally, finding and development costs and production costs have been increasing at an accelerating rate. Fortunately for the E&P players the current high commodity prices have shielded the cost increases. To some degree the market has priced this in, as forward multiples are lower than prior up cycles. However, the risks are considerable, especially given the relative volatility in natural gas prices that has occurred over the last few years and are likely to occur into the future.
The economics of oil and gas supply and demand is the fundamental driver of the E&P industry. Currently oil inventories are modestly lower than average, and prices have remained high and actually relatively stable over the past year. This is a direct result of OPEC's discipline. However, over the next year we still expect the price of crude oil to fall into the mid 20's. We expect political forces to continue to stabilize and Iraq gradually, though slower than originally anticipated, to increase its production to pre-war levels. The expected increase in supply forces will exert downward pressure on price.
Natural gas is a bigger question. Storage levels are currently below their 5 year average, however the injection season has been very strong, and few expected storage levels to reach its current level. Demand destruction has been high, given the high prices, and a relatively mild summer enabled gas storage levels to reach almost normal levels. Demand has become increasingly susceptible to pricing, creating a ceiling and floor to natural gas pricing. However, a mild to normal winter coupled with the high rig count, could cause significant downward pressure to natural gas prices. It is this risk that has pressured E&P companies to continue to focus on easy land drilling and delay more complicated drilling. However, as time goes on easy finds will be more difficult to find, and eventually E&P players will have to look to more complicated, and more costly drilling in order to even maintain production. These forces will likely exaggerate the cyclical nature of the natural gas focused E&P players.
INDUSTRY POSITION
Analyst must write
RECENT NEWS
Analyst must write
VALUATION
Analyst must write
RISKS
➢ Analyst must write.
INSIDER TRADING AND OWNERSHIP
Analyst must write.
PROJECTED INCOME STATEMENT & BALANCE SHEET
HISTORICAL ZACKS RECOMMENDATIONS
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DISCLOSURES
The following disclosures relate to relationships between Zacks Small-Cap Research (“Zacks SCR”), a division of Zacks Investment Research (“ZIR”), and the issuers covered by the Zacks SCR Analysts in the Small-Cap Universe.
ANALYST DISCLOSURES
I, Steven Ralston, CFA, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report. I believe the information used for the creation of this report has been obtained from sources I considered to be reliable, but I can neither guarantee nor represent the completeness or accuracy of the information herewith. Such information and the opinions expressed are subject to change without notice.
INVESMENT BANKING, REFERRALS, AND FEES FOR SERVICE
Zacks SCR does not provide nor has received compensation for investment banking services on the securities covered in this report. Zacks SCR does not expect to receive compensation for investment banking services on the Small-Cap Universe. Zacks SCR may seek to provide referrals for a fee to investment banks. Zacks & Co., a separate legal entity from ZIR, is, among others, one of these investment banks. Referrals may include securities and issuers noted in this report. Zacks & Co. may have paid referral fees to Zacks SCR related to some of the securities and issuers noted in this report. From time to time, Zacks SCR pays investment banks, including Zacks & Co., a referral fee for research coverage.
Zacks SCR has received compensation for non-investment banking services on the Small-Cap Universe, and expects to receive additional compensation for non-investment banking services on the Small-Cap Universe, paid by issuers of securities covered by Zacks SCR Analysts. Non-investment banking services include investor relations services and software, financial database analysis, advertising services, brokerage services, advisory services, equity research, investment management, non-deal road shows, and attendance fees for conferences sponsored or co-sponsored by Zacks SCR. The fees for these services vary on a per client basis and are subject to the number of services contracted. Fees typically range between ten thousand and fifty thousand USD per annum.
POLICY DISCLOSURES
Zacks SCR Analysts are restricted from holding or trading securities placed on the ZIR, SCR, or Zacks & Co. restricted list, which may include issuers in the Small-Cap Universe. ZIR and Zacks SCR do not make a market in any security nor do they act as dealers in securities. Each Zacks SCR Analyst has full discretion on the rating and price target based on his or her own due diligence. Analysts are paid in part based on the overall profitability of Zacks SCR. Such profitability is derived from a variety of sources and includes payments received from issuers of securities covered by Zacks SCR for services described above. No part of analyst compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in any report or article.
ADDITIONAL INFORMATION
Additional information is available upon request. Zacks SCR reports are based on data obtained from sources we believe to be reliable, but are not guaranteed as to be accurate nor do we purport to be complete. Because of individual objectives, this report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed by Zacks SCR Analysts are subject to change without notice. Reports are not to be construed as an offer or solicitation of an offer to buy or sell the securities herein mentioned.
ZACKS RATING & RECOMMENDATION
ZIR uses the following rating system for the 1124 companies whose securities it covers, including securities covered by Zacks SCR: Buy/Outperform: The analyst expects that the subject company will outperform the broader U.S. equity market over the next one to two quarters. Hold/Neutral: The analyst expects that the company will perform in line with the broader U.S. equity market over the next one to two quarters. Sell/Underperform: The analyst expects the company will underperform the broader U.S. Equity market over the next one to two quarters.
The current distribution is as follows: Buy/Outperform- 24.3%, Hold/Neutral- 58.5%, Sell/Underperform – 14.6%. Data is as of midnight on the business day immediately prior to this publication.
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Month Day, Year
[pic]Small-Cap Research Steven Ralston
312-265-xxxx
email@
scr. 10 S. Riverside Plaza, Chicago, IL 60606
ZACKS ESTIMATES
Revenue
(in millions of $)
| |Q1 |Q2 |Q3 |Q4 |Year |
| |(Jan) |(Apr) |(Jul) |(Oct) |(Oct) |
|2013 |0 A | | | | |
|2014 | | | | | |
|2015 | | | | | |
|2016 | | | | | |
Earnings per Share
(EPS is operating earnings before non recurring items)
| |Q1 |Q2 |Q3 |Q4 |Year |
| |(Jan) |(Apr) |(Jul) |(Oct) |(Oct) |
|2013 |-$0.04 A |-$0.09 A |-$0.02 A |-$0.05 A |-$0.19 A |
|2014 |$0.00 A |$0.00 A |-$0.02 A | |-$0.04 E |
|2015 | | | | |-$0.07 E |
|2016 | | | | | |
|Zacks Projected EPS Growth Rate - Next 5 Years % |N/A |
|N/A |N/A |
| Top 5 Public Companies in the industry |
| | | | |
|Ticker |Company |Market Share |Zacks |
| | | |Rec |
|CNQ |Cdn Ntrl Rsrcs |33.13545 |Neutral |
|ECA |Encana Corp |15.57543 |Neutral |
|PEGFF |Pac Rubiale Egy |9.61446 |N/A |
|TLM |Talisman Energy |9.32894 |Underperform |
|CPG |Crescent Pt Egy |6.44595 |Neutral |
| Taipan Resource | |
|Income Statement and Balance Sheet | |
|(Dollars in millions, except EPS data) | |
| | | | | | | | | |
| |10/10 |10/11 |10/12 |10/13 |10/14E |10/15E |
|Sales | |N/A |N/A |0 |0 |N/A |N/A |
| |Cost of Goods Sold |N/A |N/A |0 |0 |N/A |N/A |
| |SG&A |N/A |N/A |1 |3 |N/A |N/A |
| |Other operating expenses |N/A |N/A |1 |12 |N/A |N/A |
| |Interest and other |N/A |N/A |0 |0 |N/A |N/A |
|Zacks Adjusted Income before NRI |N/A |N/A |-2 |-16 |-4 |-7 |
|Net Income |N/A |N/A |-2 |-16 |-4 |-7 |
|Diluted EPS before NRI |N/A |N/A |-0.05 |-0.19 |-0.04 |-0.07 |
|Reported EPS |N/A |N/A |-0.05 |-0.19 |-0.04 |-0.07 |
| | | | | | | |
|Cash & Marketable Securities |N/A |N/A |6 |0 |0 |0 |
|Current Assets |N/A |N/A |6 |0 |0 |0 |
|Current Liabilities |N/A |N/A |2 |7 |7 |7 |
|Long Term Debt |N/A |N/A |0 |0 |0 |0 |
|Shareholder's Equity |N/A |N/A |20 |9 |5 |-2 |
Industry Comparables
| |Pr Chg |P/E CurrFY |EPS Gr |Price/ |Price/ |Price/ |
| |YTD | |5Yr Est |Book |Sales |CF |
|TAIPAN RESOURCE |-87.9 | | | | | |
| | | | | | | |
|Industry Mean |-14.5 |100.2 |12.4 |0.9 |3.4 |17.1 |
|Industry Median |-14.1 |65.8 |8.0 |0.9 |1.5 |3.3 |
|S&P 500 |2.4 |17.5 | |9.1 |3.5 |14.9 |
| | | | | | | |
|ANTRIM ENERGY |-13.0 | | |0.4 | | |
|SONDE RESOURCES |-86.7 | | |0.0 |0.0 | |
|AFRICA OIL CORP |0.5 | |38.9 |0.9 | | |
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TAIPF: Zacks Company Report - NEUTRAL
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