PXP Energy Corporation (PXP) was incorporated in 2007 as Philex Petroleum Corporation. On August 8, 2016, the Securities and Exchange Commission allowed the change of name.
The company is primarily engaged in the exploration and production of natural gas and crude oil. This was made possible through the interests in various private petroleum contracts in resource companies and petroleum service contracts (SC).
Market Cap: PHP 18.33 billion
Sector: Mining and Oil
Subsector: Oil
Subsidiaries:
- Brixton Energy& Mining Corporation
- Forum Energy Limited
- Pitkin Petroleum Limited
Earnings Highlights:
- Revenues rose by 2.82 percent to PHP 104.44 million in 2017 versus PHP 101.58 million in 2016
- The company booked a net loss attributable to parent of PHP 39.13 million last 2017
PXP released a statement about its financial performance and operating highlights for the first half of the year. The company suffered yet another net loss attributable to the parent of PHP 20.1 million.
This figure is 77.87 percent higher than the recorded loss of PHP 11.3 million in 2017. The consolidated net loss totaled PHP 32.8 million, almost double than the loss of PHP 17.2 million in 2017.
Petroleum revenues were higher this year totaling PHP 66.7 million, compared to PHP 52.6 million in 2017. It was mainly because of the improved prices of crude oil rising by 33 percent. However, there was an offset of minus 2 percent in production.
What cost the net loss was the higher cost and expenses totaling to PHP 110.50 million. It is 42 percent higher than the PHP 77.8 million in 2017.
Apparently, the loss was due to higher depletion cost in Galoc and the decommissioning of the Tara and Libro wells in SC 14.
PXP also made a provision for income tax totaling to PHP 1.6 million. However, the company was able to book gain on Foreign Exchange amounting to PHP 23.3 million.
On January 10, 2018, a Farm-in Agreement was executed by Karoon with Tullow Peru Limited, a wholly-owned subsidiary of Tullow Oil Plc. It stated that Tullow would acquire a 35 percent interest in the block on the following terms:
- The cost of the first exploration well will be 43.75 percent funded by Karoon but is capped at USD 27.5 million. Tullo will pay the excess as its 35 percent share.
- Upon completion of the exploration well, Tullow will pay Karoon USD 1 million. If the well is declared commercially viable, Tullow will pay an additional USD 7 million.
After the above agreement, the interest in Z-38 will be as follows:
Tullow – 35 percent
Karoon – 40 percent
Pitkin Petroleum Limited – 25 percent
Pitkin is a subsidiary of the company, which holds 53.43 percent nterest.
PXP also owns 78.98 percent interest in Forum Energy Limited. It is seen to take guidance soon from the Philippine Government with respect to any future activity in SC 72 and SC 75.
The company is aware that the Malampaya gas resource could be exhausted in the next decade. Malampaya supplies around 40 percent of power to Luzon.
Seeing this threat, the exploration of SC 72 is a high priority of the government. However, SC 72 and SC 75 research has not yet resumed as the Department of Energy imposed force majeure.
PXP is trying to buck the downtrend that started on March 1, 2018. The 15 EMA and 20 SMA are still providing support for the price.
The 50 SMA is poised for a bearish crossover. Moreover, the 200 SMA is acting as stiff resistance for the stock right now.
Volume profile is thin suggesting consolidation. MACD appears to be trying to be bullish. RSI is also trending bullishly but is currently at neutral levels. Support is estimated at 9.82 while resistance is expected at 11.00.
Volume
As of July 26, 2018, at 03:30 PM, the volume of PXP is 30.73% of the previous trading day.
Remember the correlation between price and volume.
- bullish price + high volume = high sustainability (price)
- bullish price + low volume = low sustainability (price)
- bearish price + high volume = high sustainability (price)
- bearish price + low volume = low sustainability (price)
Risk Level
PXP has a MODERATE-RISK level due to its risk percentage of 50.79%.
Foreign Fund Flow
PXP registered a Net Foreign Selling worth P91,128.00 as of July 26, 2018.
On a 30-day trading period, PXP is on a Net Foreign Buying worth PHP1,659,927.00.
Top 10 Players’ Sentiment
Trading participants of PXP with a 100% Buying and Selling Activity as of Jul-26-2018 at 03:30 PM:
4 out of 22 participants or 18.18% of all participants registered a 100% BUYING activity
12 out of 22 participants or 54.55% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 10.7670
Top 10 Players’ Selling Average: 10.7968
The psychological average price of the top 10 players as of Jul-26-2018 is from 10.7670 to 10.7968.
What Is the Importance of Knowing the Top 10 Players’ Sentiment?
You need to know the psychological average price of the top 10 brokers who have traded a specific stock within a specific time period.
You need to know the buying average of the top 10 brokers who have traded a specific stock within a specific time period.
You need to know the selling average of the top 10 brokers who have traded a specific stock within a specific time period.
You need to know how many brokers, out of all the brokers who have traded a specific stock within a specific time period, registered a 100% buying activity.
You need to know how many brokers, out of all the brokers who have traded a specific stock within a specific time period, registered a 100% selling activity.
The buying and selling averages of the top 10 brokers are a sneak preview of the range of their collective average price.
If you know the psychological average price of the top 10 brokers who have traded a stock, you can calculate in your mind how much more can they probably afford to hold, relative to their collective risk tolerance, should the stock’s price go south.
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