Winning Stock Forecast: EP Energy Corporation (NYSE: EPE) Stock Increases By 77.30% Within Past 2 Weeks

Winning Stock Forecast: EP Energy Corporation (NYSE: EPE) Stock Increases By 77.30% Within Past 2 Weeks

 

[Source: PRNewswireFoto/EP Energy Corporation)

“In energy, I think there’s a massive opportunity for the U.S. to become a major supplier of energy to China. They have incredible amounts of demand at these prices for our shale and our liquid natural gas. I think we can easily get about $40 or $50 billion of energy, and if we can produce and send more with infrastructure, they can even take more.”

— U.S. Secretary of the Treasury, Steven Mnuchin

During the recent three weeks, EP Energy Corp (NYSE:EPE) has grabbed attention from analysts, when it saw a value increase of 80.91% reaching the current price of $3.31. The stock showed weekly performance of 13.89%, which was maintained for the month at 88.51%. Stocks are solidly higher as of Monday May 21, days after the U.S. and China appeared to make major progress in trade talks. The Chinese government says it will buy more goods and services and Treasury Secretary Steven Mnuchin says the U.S. postponed tariffs on up to $150 billion in goods from China after the two sides made “meaningful progress” toward a new trade agreement. Industrial companies and banks are making some of the biggest gains. A total of 2.09 Million shares exchanged hands during the intra-day trade compared with its average trading volume of 996.37 Million shares, while its relative volume stands at 2.09.

Likewise, the performance for the quarter was recorded as 86.36% and for the year was -24.60%. EP Energy Corp as of recent trade, has shown weekly upbeat performance of 11.07% which was maintained at 90.23% in 1-month period. During the past three months the stock gain was 92.44%, bringing the six months performance to 39.66%. The year-to-date (YTD) performance reflected a 40.25% positive outlook.

[Source: Yahoo Finance, May 22, 2018]

The U.S. and China concluded two days of trade negotiations with a contract not to impose tariffs on each other, while Beijing said it will buy more farm goods, energy and other products and services from U.S. companies. The two sides gave no indication of how much progress they had made toward ending their dispute entirely, as China said it can’t guarantee that trade tensions will be permanently avoided and Mnuchin said President Donald Trump could reintroduce the tariffs he’s projected if the countries don’t reach a contract. The dollar jumped to 111.15 yen from 110.68 yen late Friday. The euro dipped to $1.1757 from $1.1773. Benchmark U.S. crude oil rose 0.7 percent to $71.81 a barrel in New York. Brent crude, used to price international oil, added 0.4 percent to $78.81 per barrel in London.

Energy exports to play ‘massive’ role in any breakthrough in the US-China trade talks

Treasury Secretary Steven Mnuchin said there is a “massive opportunity” for U.S. energy exports to China, after the trade partners reached a truce. China has emerged as one of the biggest buyers of U.S. oil since the American government lifted an export ban on the raw material in 2015. The Trump administration has also facilitated increased shipments of U.S. natural gas to China. Energy will play a major role in a breakthrough in trade talks between the Trump administration and its Chinese counterparts, U.S. Treasury Secretary Steven Mnuchin told CNBC on Monday.

U.S. and Chinese trade negotiators agreed this weekend to put on hold tariffs that they have threatened against one another, after China agreed to purchase more American goods. The concession could move the needle on one of President Donald Trump’s major goals: reducing the U.S. trade deficit with China. To be sure, some economists have flagged challenges to increasing exports to China, from Beijing’s ability to facilitate the imports to American farmers and manufacturers producing at or near full capacity.

However, oil and natural gas production is one area of the U.S. economy that is indeed booming, especially EP Energy Corp. Meanwhile, China, the engine of the global economy, is hungry for more fossil fuels as more drivers take to the nation’s roads and the government seeks to generate more electric power from cleaner-burning natural gas.

“In energy, I think there’s a massive opportunity for the U.S. to become a major supplier of energy to China,” Mnuchin told CNBC on Monday. “They have incredible amounts of demand at these prices for our shale and our liquid natural gas. I think we can easily get about $40 or $50 billion of energy, and if we can produce and send more with infrastructure, they can even take more,” he said.

That would be an ambitious target. U.S. oil and gas exports to China were worth $4.3 billion in 2017, according to Reuters. The United States is already doing brisk trade with China, which has emerged as one of the largest purchasers of U.S. oil since the Obama administration reached a compromise with Congress to lift a 40-year export ban on raw crude.

“As the U.S. crude export trade evolves we’re seeing a growing trend of [very large crude carriers] being loaded, so that percentage of total exports is around 40-50 percent around any given month and the vast majority of those are heading to China,” said Matt Smith, director of commodity research at tanker tracking firm ClipperData.

Oil output from shale fields is soon projected to rise above 7 million barrels a day and has boosted total U.S. production to about 10.7 million barrels a day, according to preliminary government figures. The U.S. Energy Information Administration projects the United States will average 11.9 million barrels a day next year, surpassing No. 1 producer Russia. The boom in oil production from western Texas has created bottlenecks in the region, causing prices for regional crude to fall as drillers struggle to get their product to market. Consequently, that oil is now trading at a big discount to international benchmark Brent crude, making it attractive to foreign buyers. Mnuchin made clear on Monday that the trade will occur between companies, and it will have to be in the interest of both Chinese and U.S. firms. China has historically used its leverage as the world’s second-largest oil consumer to influence crude prices, taking advantage of discounts among different grades of crude from around the world. However, the type of light, sweet crude that comes from shale is ideal for many Chinese refineries. The Trump administration has already made progress opening the Chinese market to U.S. natural gas exporters. A year ago, the U.S. Commerce Department reached an agreement with Chinese authorities that allowed state-owned companies to negotiate long-term contracts with U.S. natural gas exporters, something Beijing had been hesitant to do.

Analyst Recommendations:

According to analyst recommendations from Yahoo Finance, the current consensus is a “Hold” in EPE Stock, with 8 advising a “Strong Buy”, 19 advising a “Buy” and 3 advising a “Hold”.

I Know First’s Success With EPE Stock:

On May 4th 2018, Know First issued a bullish 14-day forecast for EP Energy Corporation (NYSE:EPE). The forecast illustrated a signal  of 16.33 and a predictability of 0.2. In accordance with the forecast, EPE stock returned 77.30% over this period, highlighting the accuracy of the prediction produced by the I Know First algorithm.

Current I Know First subscribers received this bullish EPE forecast on May 4th 2018

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About EP Energy Corporation (NYSE:EPE):

EP Energy Corporation (NYSE:EPE),incorporated on August 8, 2013, is an independent exploration and production company. The Company is engaged in the acquisition and development of unconventional onshore oil and natural gas properties in the United States. The Company operates through a base of producing assets. It is involved in the development of its drilling inventory located in three areas: the Eagle Ford Shale (South Texas), the Wolfcamp Shale (Permian Basin in West Texas) and the Altamont Field in the Uinta Basin (Northeastern Utah). As of December 31, 2016, in its operating areas, the Company had identified 5,156 drilling locations (including 639 drilling locations to which it has attributed proved undeveloped reserves). As of December 31, 2016, the Company had proved reserves of 432.4 million barrels of oil equivalent (MMBoe) and an average net daily production of 87,641 barrel of oil equivalent per day (Boe/d). As of December 31, 2016, the Company had approximately 220 million barrels (MMBbls) of proved oil reserves, 91 MMBbls of proved natural gas liquids (NGLs) reserves and 732 billion cubic feet (Bcf) of proved natural gas reserves.

Disclaimer

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts. Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First subscribers.

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