Eagle and Beagle

Eagle and Beagle
by Don Mecoy Published: May 13, 2012
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Eagle & Beagle

Eagle

Earnings drive share prices, except when they don't.

Our eagle, Tulsa-based petroleum pipeline and storage company SemGroup Corp., last week reported a first-quarter loss of $1.4 million on lower revenues.

The earnings were issued before the market opened Wednesday, at which point the stock soared. SEMG finished the week with an 8.8 percent gain, closing at $31.90 — one thin dime from its 52-week high.

Traders bought into CEO Norm Szydlowski's optimism as he reaffirmed the firm's full-year profit guidance of $125 million to $135 million and reported the company is on track to expand its crude oil operations to meet strong demand.

Sometimes — usually — you have to look deeper than the bottom line.

Beagle

No news is good news for this week's beagle.

Unfortunately, the stories kept coming last week about Chesapeake Energy Corp.

Based on the market's reaction, the Oklahoma City energy company's Friday disclosure that it may delay asset sales to preserve cash flow needed to comply with its corporate credit facility was the most damaging.

CHK shares fell sharply in heavy trading late Friday before closing at $14.81, its lowest price in more than three years.

The company and its shareholders continue to be battered by sustained low natural gas prices.

Eagle & Beagle is a weekly look at the state's high-performing (eagle) and low-performing (beagle) by Business Writer Don Mecoy.


by Don Mecoy
Business Editor
Business Editor Don Mecoy has covered business news for more than a decade after earlier working on The Oklahoman's city, state and metro news desks, including a stint as city editor. He has won state and regional journalism awards for business,...
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