Hess Corp. (NYSE:HES) shares climbed 9.22% to $68.24 after the company said it would pursue the sale of 20 oil storage terminals in the United States and the Caribbean, and exit its refining business, freeing up $1 billion of capital that will be deployed in its oil and gas business. The terminal network located along the U.S. East Coast has storage capacity of 28 million barrels. The St. Lucia oil storage terminal in the Caribbean has 10 million barrels of capacity.
D.R. Horton, Inc. (NYSE:DHI) shares climbed 10.28% to $23.50 in the early hour after the company reported that first-quarter net income rose to $66.3 million, or 20 cents per diluted share, from $27.7 million, or 9 cents a share, during the same period in the prior year. Analysts had expected per-share earnings of 14 cents for the home builder. Net sales orders for the first quarter rose 39% to 5,259 homes from 3,794 homes during the same period in the prior year.
Cal Dive International, Inc. (NYSE:DVR) shares jumped 7.87% to $1.92 on no official news. The 52 week trading range for the company is $1.00 – $4.00. The shares of the company fell 36% in the last one year. The company is a marine contractor that provides manned diving, pipelay and pipe burial, platform installation and platform salvage services to a diverse customer base in the offshore oil and natural gas industry.
Valero Energy Corporation (NYSE:VLO) stock jumped 9.35% to $42.44 after the company reported a fourth quarter profit of $1.01 billion, or $1.82 a share, up from $45 million, or eight cents a share, a year earlier. The latest period included asset write-downs of six cents a share. Revenue increased 0.1% to $34.7 billion. Analysts most recently projected earnings of $1.18 on revenue of $31.01 billion.
FreeSeas Inc. (NASDAQ:FREE) shares gained 7.30% to $0.290. The company, last month, announced that, at the annual meeting of the Company, the Company’s shareholders elected Xenophon Galinas to the Board of Directors for three years, approved a reverse split of the Company’s issued and outstanding common stock at a ratio of up to one (1) for every twelve (12) shares outstanding and ratified the appointment of Sherb & Co., LLP as the Company’s independent registered public accounting firm for the year ending December 31, 2012.
Biotech movers: Pfizer Inc. (PFE), Celgene Corporation (CELG)
Pfizer Inc. (PFE) said on Thursday it received a request for documents as part of a U.S. investigation related to quality issues involving the manufacture of auto-injectors at its Meridian Medical Technologies site.
Pfizer, in a regulatory filing, said it would be producing records in response to the civil investigative demand from the U.S. Attorney’s office for the Southern District of New York.
Meridian, a unit of Pfizer that manufactures EpiPen injectors used to deliver an emergency allergy antidote, has been hit by a series of manufacturing problems in recent years. Mylan NV, which markets EpiPens, has recalled tens of thousands of the devices after complaints that some had failed to activate.
Bristol-Myers Squibb has been meeting with shareholders in Boston and New York over the last two weeks to try to salvage its $74 billion purchase of cancer drugmaker Celgene Corporation (CELG), the biggest acquisition announced so far this year.
The deal, announced in January, was hard sell to Bristol shareholders from the start. The acquisition adds about $32 billion in fresh debt to Bristol’s balance sheet while assuming $20 billion in Celgene’s debt, the companies said at the time. After factoring in debt, the acquisition was the largest health-care deal on record, according to data compiled by Refinitiv.
Now, hedge funds Wellington Management and Starboard Value say the deal doesn’t sit well with them. Bristol has sent executives to New York to meet with institutional investors several times over the last two weeks and met with investors in Boston on Wednesday and Thursday, according to a person who briefed on the meetings.
Bristol-Myers declined to comment.
Big Losers: Corbus Pharmaceuticals Holdings, Inc. (CRBP), Petróleo Brasileiro S.A. – Petrobras (PBR)
Corbus Pharmaceuticals Holdings, Inc. (CRBP)’s shares slumped as much as 16% to $6.94 on huge volume. The stock has been showing intense sell off suddenly after a bearish article on seekingalph.com by Alpha Exposure.
The article stated that Corbus has ties to investors convicted of or alleged to have committed securities fraud. We believe lenabasum has failed its major trials in SSc and CF. Lenabasum was also denied Breakthrough Therapy Designation in SSc. We believe lenabasum will fail in its pivotal SSc and Phase 2b CF trials. We are short Corbus with a price target of $0.50.
Petróleo Brasileiro S.A. – Petrobras (PBR) is expanding its ambitious divestment program and has “bold” plans for sales, the Brazilian state-run oil company’s chief executive said after the firm posted its first annual profit in five years.
On a conference call with analysts to discuss fourth-quarter results, CEO Roberto Castello Branco said selling non-core assets will be key to deleveraging.
Petrobras, as the company is known, can reduce its ratio of net debt to earnings before interest, taxes, depreciation and amortization, or EBITDA, to 1.5 or even to 1, he added.
The University of Chicago-educated CEO, who took the reins in early January, has long been vocal about the need to slim down the sprawling firm and focus on core activities such as exploration and production. Thursday’s comments were some of his most assertive on the matter.
Chesapeake Energy Corporation (CHK), Best Buy Co., Inc. (BBY) Are Top Early-Market Movers
Shares of Chesapeake Energy Corporation (CHK) shot up 8% in first hour Wednesday, after the oil and gas production company reported fourth-quarter earnings and revenue that beat expectations, and provided an upbeat outlook. Net income rose to $486 million, or 49 cents a share, from $309 million, or 33 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted EPS fell to 21 cents from 30 cents but beat the FactSet consensus of 18 cents.
Total revenue rose 22% to $3.07 billion, as oil, natural gas and natural-gas equivalent revenue jumped 38% to $1.73 billion. The FactSet consensus for total sales was $2.28 billion for oil and gas sales was $1.10 billion. Average daily production fell 7% to 464,000 barrels of oil equivalent (BOE) while production expenses increased 15% to $2.87 BOE. The company projects 2019 average daily oil production to increase about 32%, capital expenditures are expected to be flat and cash flow is expected to be “meaningfully stronger.” The stock has lost 12% over the past three months through Tuesday, while the SPDR Energy Select Sector ETF has gained 1.5% and the S&P 500 has advanced 4.2%.
Best Buy Co., Inc. (BBY)jumped after the gadget retailer lent a spark to what had been a gloomy earnings season by delivering holiday sales that outpaced projections and a full-year profit outlook that topped analysts’ estimates.
Comparable-store sales in the U.S. — the retailer’s most-watched metric — rose 3 percent in the fourth quarter, beating projections. The midpoint of its profit forecast for the current fiscal year also topped estimates, sending the shares up as much as 16 percent.
The shares climbed as high as $69.85 in New York Wednesday, the biggest intraday gain since May 2017. The shares had already been up 14 percent this year through Tuesday’s close, outpacing the S&P 500 Index.