Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on VERESEN INC. We currently have 31 research reports from 1 professional analysts.
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HOSTS 2016 INVESTOR DAY
27 Sep 16
Impact: Neutral. Veresen's Investor Day on September 27, 2016, provided the investment community with an indepth review of Veresen's historic, current, and future business operations. Senior management took the opportunity to discuss relevant issues and situations that impact each business and how the team intends to navigate its way forward. Veresen's future growth program is fully funded, assuming a sale of the Power business. Potential positive catalysts for the stock include a sale of the Power business in 1Q17e (to close in 1H17e) and incremental projects within Veresen midstream to be announced over the next 12 months.
SECURES $650 MM OF NEW CREDIT FACILITIES WITHIN VERESEN MIDSTREAM
07 Sep 16
Impact: Positive. Veresen Midstream has increased its borrowing capacity to fund its contracted capital growth program without the need of further financing. The majority of this available capital will be directed towards Veresen Midstream's contracted capital projects under construction, including the Sunrise, Tower and Saturn processing facilities. We estimate that Veresen Midstream, and its partners, have ~$1.5 bn left to spend on its capital projects under construction as it had incurred ~$1 bn of capital expenditures when it reported its 2Q16 financials. Veresen expects that with the funds from the pending power asset divestiture and this additional access to capital will fully fund the Company's $1.4 bn contracted capital growth program.
Releases Strong 2Q16 Results; Looks to Divest Power Business; Suspends DRIP
05 Aug 16
Veresen reported Distributable Cash Flow (DCF) of $94 mm compared to our estimate of $79 mm; in particular, the Pipeline division outperformed our estimates. Veresen has increased its previously announced Distributable Cash Flow guidance range of $0.94/share to $1.08/share up to a range of $1.03/share to $1.13/share. In an effort to focus on its core natural gas and NGL infrastructure business, Veresen has announced its intention to divest the power business. Veresen’s Board of Directors has elected to suspend the Premium Dividend and Dividend Reinvestment Plan. Our Outperform ranking and 12-MTP of $14.25/share remains unchanged.
RELEASES STRONG 2Q16 RESULTS; LOOKS TO DIVEST POWER BUSINESS; SUSPENSION OF DRIP
03 Aug 16
Impact: Positive. On its cash-based results, Veresen reported Distributable Cash Flow (DCF) of $94 mm compared to our estimate of $79 mm; in particular, the Pipeline division outperformed our estimates. Management expects to be able to achieve its FY2016 targets with distributable cash in the range of $1.03 to $1.13 per share (FCCe: $0.98/share prior to 2Q results).
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
Focused on the long term
08 Dec 16
These are rare events but it is nice to see a management use its public listing advantageously to trade short-term dilution in EPS for the optionality of asymmetric upside in the long term. With over £10m already in the balance sheet, ABD has successfully raised £5.4m gross in a placing and expects to raise another £1m from an offer. We were not surprised to learn that the placing was over 3.5x oversubscribed. How many listed UK companies are positioned to take advantage of the digital revolution in the automotive industry? The additional investment in new people, facilities, products & services should be dilutive to FY2017-18 EPS but this is small price to pay to establish the leading supplier of integrated test, measurement and simulation solutions to the autonomous vehicle industry. Our forecasts assume that growth will accelerate from FY2019. We raise our target price to 575p based on 15x FY2019 EPS, equivalent to Ricardo, the only other UK stock which has embraced the optionalities offered by the technological changes in the automotive industry.
07 Dec 16
Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
N+1 Singer - Waterman Group - Encouraging AGM statement in line with expectations
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.