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KBR and ConocoPhillips Team Up on Mid-Scale LNG Technology
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KBR, Inc. (KBR - Free Report) has collaborated with ConocoPhillips (COP - Free Report) to develop a low-cost mid-scale liquefied natural gas (“LNG”) train that should be accessible to new LNG projects starting in 2019.
The companies plan to complete a front-end engineering and design (“FEED”) quality reference design for a mid-scale capacity liquefied natural gas train. The train, with a capacity between 1.5 MTPA and 3 MTPA, will serve both Brownfield and Greenfield expansions seeking an off-the-shelf solution in order to reduce costs and shorten schedules for LNG facility installations.
Both the parties have agreed to apply the integrated design approach, utilizing ConocoPhillips’ Optimized Cascade process technology and constructed with integrated modularized construction. ConocoPhillips’ Optimized Cascade process is utilized in LNG plants and accounts for about 23% of the world's LNG supply.
Meanwhile, KBR has already been in the LNG industry for more than 40 years and has delivered about one third of the world's current LNG production capacity. Given higher market demand, both the companies have decided to focus on developing a cost effective but efficient mid-scale LNG solution. KBR and ConocoPhillips will also continue to cooperate on large-scale LNG trains, utilizing similar methodology and technology.
KBR has a diversified business portfolio, which helps combat cyclicality associated with any single market. The company’s backlog level of $13.5 billion (as of Jun 30, 2018) is a testimony to the fact. Notably, going forward, KBR believes that it will witness a mix of both Brownfield and Greenfield opportunities for the Hydrocarbons Services segment (especially consulting sector in the upstream area), largely attributable to rising commodity prices and underlying global demand. Selective opportunities in downstream petrochemical and ethylene projects, and a growing number of small-scale LNG projects in North America are expected to boost the growth of hydrocarbons.
Shares of KBR, currently sporting a Zacks Rank #1 (Strong Buy), have gained 16.4% in the past six months, outperforming its industry’s average growth of 9%. Estimates have also been trending upward, depicting analysts’ optimism over the stock’s future earnings potential. Earnings estimates for 2018 and 2019 have also moved upward by 3.6% and 3.8%, respectively, over the past 60 days.
Other Stocks to Consider
Other top-ranked stocks in the sector include Comfort Systems USA, Inc. (FIX - Free Report) and Jacobs Engineering Group Inc. . While Comfort Systems sports a Zacks Rank #1, Jacobs carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comfort Systems’ earnings are expected to increase 56.3% in 2018.
Jacobs surpassed earnings estimates in each of the trailing four quarters, resulting in an average positive surprise of 15.4%.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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KBR and ConocoPhillips Team Up on Mid-Scale LNG Technology
KBR, Inc. (KBR - Free Report) has collaborated with ConocoPhillips (COP - Free Report) to develop a low-cost mid-scale liquefied natural gas (“LNG”) train that should be accessible to new LNG projects starting in 2019.
The companies plan to complete a front-end engineering and design (“FEED”) quality reference design for a mid-scale capacity liquefied natural gas train. The train, with a capacity between 1.5 MTPA and 3 MTPA, will serve both Brownfield and Greenfield expansions seeking an off-the-shelf solution in order to reduce costs and shorten schedules for LNG facility installations.
Both the parties have agreed to apply the integrated design approach, utilizing ConocoPhillips’ Optimized Cascade process technology and constructed with integrated modularized construction. ConocoPhillips’ Optimized Cascade process is utilized in LNG plants and accounts for about 23% of the world's LNG supply.
Meanwhile, KBR has already been in the LNG industry for more than 40 years and has delivered about one third of the world's current LNG production capacity. Given higher market demand, both the companies have decided to focus on developing a cost effective but efficient mid-scale LNG solution. KBR and ConocoPhillips will also continue to cooperate on large-scale LNG trains, utilizing similar methodology and technology.
KBR has a diversified business portfolio, which helps combat cyclicality associated with any single market. The company’s backlog level of $13.5 billion (as of Jun 30, 2018) is a testimony to the fact. Notably, going forward, KBR believes that it will witness a mix of both Brownfield and Greenfield opportunities for the Hydrocarbons Services segment (especially consulting sector in the upstream area), largely attributable to rising commodity prices and underlying global demand. Selective opportunities in downstream petrochemical and ethylene projects, and a growing number of small-scale LNG projects in North America are expected to boost the growth of hydrocarbons.
Shares of KBR, currently sporting a Zacks Rank #1 (Strong Buy), have gained 16.4% in the past six months, outperforming its industry’s average growth of 9%. Estimates have also been trending upward, depicting analysts’ optimism over the stock’s future earnings potential. Earnings estimates for 2018 and 2019 have also moved upward by 3.6% and 3.8%, respectively, over the past 60 days.
Other Stocks to Consider
Other top-ranked stocks in the sector include Comfort Systems USA, Inc. (FIX - Free Report) and Jacobs Engineering Group Inc. . While Comfort Systems sports a Zacks Rank #1, Jacobs carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comfort Systems’ earnings are expected to increase 56.3% in 2018.
Jacobs surpassed earnings estimates in each of the trailing four quarters, resulting in an average positive surprise of 15.4%.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Click to see them right now >>