Nov. 19–Bloomberg is out with an analysis of 50 companies to watch in 2019 and two North Texas firms made the list.
Analysts at Bloomberg Intelligence, who track more than 1,900 companies in industries including energy, technology, retail and finance, identified companies that either face unusual challenges in the coming year or are poised to release products or services with blockbuster potential.
They put Dallas-based pipeline company Energy Transfer and Fort Worth-based oil and gas exploration company Range Resources among the 50 to watch.
The analysts considered revenue growth, margins, market share, debt and other factors such as economic conditions.
Background: In October, Energy Transfer Partners merged with its parent company Energy Transfer Equity to simplify the pipeline giant’s structure. It also spent much of 2018 working to expand capacity along the controversial Dakota Access pipeline and complete a 162-mile-long pipeline across south Louisiana.
What Bloomberg analysts see for 2019: “It was a question of when, not if. By uniting Energy Transfer Partners with Energy Transfer Equity in August, founder Kelcy Warren has made the natural gas and propane company a far more formidable player. The change lowers capital costs and boosts project returns, setting Energy Transfer up for what’s likely to be a year of aggressive expansion.”
Background: Range Resources, largely focused on Pennsylvania’s Marcellus shale play, spent $3.3 billion in 2016 to buy up a competitor that’s big in the northern Louisiana shale play.
What Bloomberg analysts see for 2019: “Investors have lost their enthusiasm for Range Resources, an oil and natural gas exploration and production company, since its 2016 purchase of Memorial Resources. Range’s share price has fallen from a high of $46.45 in June 2016 to $17.16 on Oct. 18. Management’s commitment to spending its cash more efficiently, boosting productivity, and shedding some assets to cut debt may renew optimism.”
See Bloomberg’s full list of 50 companies to watch.
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