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BATON ROUGE, La. - APTIM, in collaboration with BWX Technologies, Inc., has been selected by the US Department of Energy (DOE) to manage and operate the nation's Strategic Petroleum Reserve (SPR), a contract valued at $1.4 billion. The SPR, which is the world's largest emergency crude oil supply, plays a vital role in maintaining the United States' energy security.
The joint venture, named Strategic Storage Partners, LLC, will take over the responsibilities of the SPR, including its facilities and systems located in both Louisiana and Texas. The contract is set to commence on June 15 and spans a five-year period, with the DOE holding an option to extend for an additional five years.
APTIM CEO Mark Fallon, who also serves as Chairman of the Strategic Storage Partners board, expressed the company's commitment to the project. He emphasized the importance of the SPR's mission to safeguard the country's energy and economic security, particularly in times of international oil shortages.
The SPR currently holds approximately 714 million barrels of federally owned oil, stored in vast underground salt caverns across four sites along the Gulf Coast. This strategic reserve is a key element of the United States' commitment to the International Energy Program, designed to minimize disruptions in petroleum supplies.
APTIM is recognized for its expertise in providing integrated solutions in environmental and infrastructure sectors, aiming to enhance community resilience and sustainability. BWX Technologies, Inc., listed on the NYSE as BWXT, is a manufacturing and engineering company focused on nuclear solutions for a range of applications, including global security and clean energy. With a market capitalization of $8.72 billion, BWXT has demonstrated solid financial performance, achieving 8.31% revenue growth in the last twelve months. According to InvestingPro data, the company maintains a strong dividend track record, having raised its dividend for 9 consecutive years, and currently operates with a moderate level of debt.
This announcement is based on a press release statement, and it marks a significant development in the management of the United States' energy reserves. The partnership between APTIM and BWX Technologies brings together substantial experience and resources, setting the stage for the continued safe and effective operation of the SPR. Recent InvestingPro analysis shows BWXT maintaining strong financial health, with liquid assets exceeding short-term obligations and four analysts revising their earnings upward for the upcoming period. For detailed insights into BWXT's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.
In other recent news, BWX Technologies reported its fourth-quarter 2024 earnings, surpassing market expectations. The company achieved an earnings per share (EPS) of $0.92, exceeding the projected $0.81, and revenue of $746.3 million, which was higher than the anticipated $722.25 million. Additionally, BWXT provided optimistic guidance for 2025, projecting revenue of approximately $3 billion. Seaport Global Securities initiated coverage of BWXT with a Buy rating and a price target of $145, citing the company's strong position in supplying nuclear reactors to the U.S. Navy. Meanwhile, BofA Securities adjusted its price target for BWXT from $160 to $135 but maintained a Buy rating, highlighting the company's insulation from market fluctuations and strategic investments. These developments underscore BWXT's significant role in both government and commercial sectors, with ongoing expansions in nuclear and medical markets.
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