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Methanex Inks Natural Gas-Supply Deal With Painted Pony
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Methanex Corporation (MEOH - Free Report) signed a 14-year agreement with Painted Pony Energy Ltd. Per the deal, Painted Pony will supply the bulk of the natural gas required for Methanex’s 600,000-ton methanol plant in Medicine Hat, Alberta. The agreement will come into effect in 2018.
Contracted quantities will be lower in the initial years in order to facilitate Methanex’s pre-existing natural gas forward purchase contracts. This will then increase to roughly 50,000 MMbtu/day or roughly 80-90% of the plant’s natural gas requirements from 2023.
Methanex has outperformed the industry it belongs to over the last three months. The company’s shares have moved up around 18.6% over this period compared with roughly 14.9% gain recorded by the industry.
Methanex recorded net profit (attributable to Methanex shareholders) of $32 million or 38 cents per share in the third quarter of 2017 as against a loss of $11 million or 12 cents logged a year ago.
Adjusted (barring one-time items) earnings per share for the reported quarter was 60 cents per share, beating the Zacks Consensus Estimate of 55 cents. Revenues rose roughly 41.2% year over year to $720 million.
The company expects global methanol prices to improve in the fourth quarter supported by healthy demand. Methanex anticipates production, sales of produced products and EBITDA to be higher in the fourth quarter compared with the third.
Methanex currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the basic materials space are BHP Billiton Limited (BHP - Free Report) , FMC Corporation (FMC - Free Report) and Koppers Holdings Inc. (KOP - Free Report) .
FMC Corporation has expected long-term earnings growth of 11.3% and flaunts a Zacks Rank #1.
Koppers Holdings has expected long-term earnings growth of 18% and carries a Zacks Rank #2 (Buy).
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Methanex Inks Natural Gas-Supply Deal With Painted Pony
Methanex Corporation Price and Consensus | Methanex Corporation Quote
Zacks Rank & Key Picks
Methanex currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the basic materials space are BHP Billiton Limited (BHP - Free Report) , FMC Corporation (FMC - Free Report) and Koppers Holdings Inc. (KOP - Free Report) .
BHP Billiton has expected long-term earnings growth of 5.3% and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FMC Corporation has expected long-term earnings growth of 11.3% and flaunts a Zacks Rank #1.
Koppers Holdings has expected long-term earnings growth of 18% and carries a Zacks Rank #2 (Buy).
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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