In today’s briefing:
- DNG: Q1 Financials; Large Beat on Earnings
- EOG Resources Inc.: Continued Focus on Utica Play! – Major Drivers
- Nippon Paint (4612 JP): Strong 1Q24; Overlooked Proxy For China Property
- SDRL: Drilling for Cash Flow
- Coterra Energy: Balanced Portfolio and M&A Strategy
- Vulcan Materials Company: A Tale Of Strategic Dominance In The Aggregates Industry! – Major Drivers
DNG: Q1 Financials; Large Beat on Earnings
- DNG took advantage of the elevated gold price in Q1, posting significant beats on revenue and profitability.
- This sets the Company up well for another record year and boosts its cash balance for growth initiatives.
- Dynacor continued to return capital to shareholders, buying back 927K shares ($2.7M) during the quarter.
EOG Resources Inc.: Continued Focus on Utica Play! – Major Drivers
- EOG Resources delivered a solid first quarter 2024 performance thanks to a range of factors, among them solid operational execution, underlining future value creation potential.
- EOG’s commitment to capital discipline, operational excellence, and pioneering sustainability initiatives have set the company up to deliver significant returns.
- It reported a strong financial performance during the quarter, with adjusted net income totaling $1.6 billion and free cash flow generation of $1.2 billion.
Nippon Paint (4612 JP): Strong 1Q24; Overlooked Proxy For China Property
- According to public news, China is considering asking local governments to purchase significant amount of unsold homes in the country.
- Nippon Paint Holdings (4612 JP) is a good proxy for exposure to China property with downside protection.
- China made up 40% of Nippon Paint’s operating profit (1Q24 numbers). Nippon Paint is the absolute leader in decorative paint in China, with 25% market share in 2023 (TUC).
SDRL: Drilling for Cash Flow
- SDRL reported first quarter results updating investors on the state of offshore drilling market that has shown little signs of change. Day rates have slowly climbed since last year
- SDRL disclosed a new contract for Sevan Louisiana. There was a considerable amount of time spent on the earnings call for the vessel and it’s 45-day contract.
- SDRL has entered a definitive contract to sell its three jack-up rigs and the joint venture stake that operates them for $338 million.
Coterra Energy: Balanced Portfolio and M&A Strategy
- Coterra Energy Inc. reported strong first quarter 2024 results, with total equivalent production reaching the high end of guidance at 686,000 barrels of oil equivalent per day.
- This was driven by well performance that exceeded expectations and optimal production timing.
- The company increased its full year oil guidance while holding its natural gas guidance unchanged.
Vulcan Materials Company: A Tale Of Strategic Dominance In The Aggregates Industry! – Major Drivers
- After the first-quarter 2024 earnings of Vulcan Materials Company, Vulcan confirmed it is on track to deliver a fourth consecutive year of double-digit adjusted EBITDA growth, despite challenging weather conditions during the quarter.
- Adjusted EBITDA for the quarter stood at $323 million, showcasing the durability of the Aggregates business and robust cash generation.
- The pricing environment remains optimistic and gross profit-per-ton expanded, driven by the Vulcan Way of Selling and Vulcan Way of Operating disciplines.
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