This diversified energy co ($50B mkt cap) announced strong Q3 earnings Tues am (non-GAAP EPS of $6.46 beat by $1.43). Shares up 4% this am. The co generated $3.1B in op cash flow and returned $1.2B through dividends and share repurchases (div yield is 3.7%). Trading at 4.7x EV-to-EBITDA (fwd), the co is special b/c as it continues to expand midstream, it deserves a higher valuation multiple due to the steadier nature of that largely-fee-based business. During Q3, the co increased its economic interest in DCP Midstream. Long.
ServiceNow (NOW) Earnings Note
Business remains strong for this profitable SaaS company despite slowing economic growth. Shares jumped 13% on Thursday following earnings. Revenue grew at an impressive 21.2% y/y, and subscription revenue grew at 28.5%. The magic of this company is two-fold: (1) customers love the solution (98% renewal), and (2) land and expand. Long.