Monthly Archives: June 2014

Miller Energy says new well better than expected

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Miller Energy Resources has had its share of troubles, but on Monday the Knoxville oil and natural gas company announced that a new sidetrack well is producing better than expected.
The WMRU-2 sidetrack well in Alaska began producing on June 7 and it’s initial seven day average production is approximately 630 barrels of oil equivalent, the company said in a news release.
The well is expected “to continue to exceed our original assessment as it stabilizes,” said David Hall, Miller’s chief operating officer.
CEO Scott Buruff said the well should be “a substantial revenue generator for Miller.”
The company’s share price was up 37 cents, or more than 7 percent, to $5.62 in early afternoon trading.
Miller is an oil and natural gas exploration and production company with operations in Alaska and East Tennessee.
The new well’s performance offers a bit of good news following recent shareholder complaints.
Early this year the company settled a lawsuit brought by a group of dissident shareholders who complained about “excessive compensation and unacceptable self-dealing” at Miller.
Click here for more on the shareholders complaint.

Regal Entertainment shares hit 52-week high

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Shares of movie theater operator Regal Entertainment Group hit a 52-week high today — $21.08.
The Knoxville based company has seen its stock price climb slowly but steadily over the last 12 months. Since Jan. 1, shares have gained more than 8 percent.
In early afternoon trading, the price had slipped back from the 52-week high, trading at $21.02, up 11 cents from Tuesday’s closing price.
At least one analyst thinks Regal, the largest movie theater operator in the country, could see its shares hit $23 by the end of this year.
Writing for the financial website Seeking Alpha, research analyst Gary Bourgeault says:
“If it is able to sustainably trade above $20.00 per share, I believe the company will be rewarded by investors. With the summer season upon us, and the holiday season to follow, I see the share price of Regal breaking the $23.00 mark by the end of 2014, as blockbusters like The Hunger Games and The Hobbit are released, along with the ongoing benefit of an increase in adjusted EBITDA to $137 million in the first quarter, with expectations that should continue to grow through the end of the year.”
Click here for Bourgeault’s full report.

Malibu Boats looks to expand international footprint

0814_KCLO_Malibu04_SYLoudon-based performance sport boat manufacturer Malibu Boats Inc. said today it plans to buy the equity interests of the Malibu Boats licensee in Australia.
Terms of the proposed deal were not disclosed.
The Australian business is operated by Malibu Boats Pty Ltd. and includes distribution rights in Australia and New Zealand.
“The planned acquisition of our Australian licensed business represents an important next step in our international growth strategy,” Malibu CEO Jack Springer said in a news release. “Australia is an important region to the boating industry not only because of the size of the market but its proximity to Southeast Asia and its ability to serve that region of the world. Acquiring our Australian licensed business will give us ownership of our brand world-wide and a platform in which to continue growing our business in Australia and New Zealand and developing a bigger presence in Asia.”
The proposed acquisition is expected to close the first half of 2015.
“The global unification of Malibu Boats that will result from the proposed acquisition of the Australian business makes perfect sense for the brand moving forward,” Xavier West, director of Malibu Boats Pty., said in a statement.
The letter of intent is not binding and the proposed purchase is subject to due diligence by Malibu Boats Inc., the release said.
Malibu Boats Inc. designs, makes and manufacturers Malibu and Axis Wake Research brand boats.
Shares of Malbibu Boats Inc. were up 52 cents to $19.54 in late morning trading.