why vanguard natural resources, cameron international, and peabody energy all skyrocketed this week

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Why Vanguard Natural Resources, Cameron International, and Peabody Energy All Skyrocketed This Week

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Page 1: Why Vanguard Natural Resources, Cameron International, and Peabody Energy All Skyrocketed This Week

Why Vanguard Natural Resources, Cameron International, and Peabody Energy All

Skyrocketed This Week

Page 2: Why Vanguard Natural Resources, Cameron International, and Peabody Energy All Skyrocketed This Week

It was another absolutely wild week in the market as the Dow opened the week down more than 1,000

points on Monday, only to recover by the end of the week. Meanwhile,

crude oil also enjoyed quite a recovery, as it bottomed out on

Monday below $38 a barrel, only to recover past $45 by Friday. This,

along with other news, led to some surging energy stock prices this

week.

Photo credit: TaxCredits.net

Page 3: Why Vanguard Natural Resources, Cameron International, and Peabody Energy All Skyrocketed This Week

What:Coal producer Peabody Energy’s (NYSE: BTU) stock jumped more than 36% this

week.

Page 4: Why Vanguard Natural Resources, Cameron International, and Peabody Energy All Skyrocketed This Week

So What: Key driver: A report by

Bloomberg that the company hired a bank to restructure its debt

Company currently has $6.3 billion in debt outstanding

Page 5: Why Vanguard Natural Resources, Cameron International, and Peabody Energy All Skyrocketed This Week

Now What: Peabody is said to be

considering debt-for-equity swaps or convertible notes

Potential transactions would be handled outside of bankruptcy

Key takeaway: With bankruptcy seemingly off the table, short-sellers are covering, which is sending shares higher

Page 6: Why Vanguard Natural Resources, Cameron International, and Peabody Energy All Skyrocketed This Week

What:Oil-field equipment-maker Cameron International (NYSE: CAM) leapt more than

48% this week.

Page 7: Why Vanguard Natural Resources, Cameron International, and Peabody Energy All Skyrocketed This Week

So What: Key driver: Cameron to be

acquired by Schlumberger in a $14.8 billion cash-and-stock deal

Merger premium is 56.3% higher than the company’s stock was trading prior to the announcement

Page 8: Why Vanguard Natural Resources, Cameron International, and Peabody Energy All Skyrocketed This Week

Now What: By combining, the companies

will be able to create the industry’s first complete drilling and production systems

Merger will drive significant deal synergies for Schlumberger, as well as deliver strong cost savings for its customers

Key takeaway: Investors like the deal and expect it to go through without any issues

Page 9: Why Vanguard Natural Resources, Cameron International, and Peabody Energy All Skyrocketed This Week

What:Upstream MLP Vanguard Natural Resources (NASDAQ: VNR) rocketed more than

56% this week.

Page 10: Why Vanguard Natural Resources, Cameron International, and Peabody Energy All Skyrocketed This Week

So What: Key driver: A significant surge

in oil prices drove all upstream MLPs higher, with Vanguard leading the way

Investors grew much more confident in the sector’s ability to weather the downturn now that oil prices have bottomed again and are starting to rally

Page 11: Why Vanguard Natural Resources, Cameron International, and Peabody Energy All Skyrocketed This Week

Now What: Investors also are seeing that

Vanguard has been one of the more proactive upstream MLPs as it has already agreed to acquire two smaller rivals

Key takeaway: With fears abating, investors piled into badly beaten down upstream MLPs, like Vanguard

Page 12: Why Vanguard Natural Resources, Cameron International, and Peabody Energy All Skyrocketed This Week

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