Strong 2Q2021 operating results masked by FFA losses. Call with management today at 8am EST—number is 844-282-441 and code is 3636539. After backing out FFA hedges and other items of $31.6 million, adjusted EBITDA of $62.8 million was well ahead of expectations. TCE revenue of $93 million and TCE rates of $21.6k/day were above expectations, while opex were in line.Moving 2021 EBITDA to $255 million (from $216 million) based on TCE rates of $22.1k/day to reflect higher 2Q2021 results and high forward cover with about 75% of 3Q2021 available days are booked at TCE rates of $28.3k/day. 2022 EBITDA also moves higher to $267.2 million (from $233 million) based on TCE rates of $22.0k/day.Fleet renewal update. In 2Q2021, two 2011-built Supras (Sankaty Eagle and Montauk Eagle) and one 2017-built Ultra (Rotterdam Eagle) were delivered. In 3Q2021, a third 2011-built Supra (Newport Eagle) and two 2015-built Ultras (Antwerp Eagle and Valencia Eagle) should be added. In addition, a 2003-built Supra (Tern) will be sold for $9.7 million.Refinancing of high cost debt likely by yearend 2021. ATM equity offerings fund acquisitions and expand public float. It seems likely that the Eagle Bulk Shipco 8.25% bonds due in November 2022 will be refinanced by year-end 2021. The ATM program raised $27.4 million, which combined with sales by a large shareholder, expanded the public market float to 66%.Maintain Outperform rating and price target of $65/share. EGLE's execution on the fleet renewal program has been impressive, and the fleet will expand to the highest level ever once the the pending transactions close. EGLE is well positioned to benefit from strong dry bulk market fundamentals with expanded operating leverage and scrubbers that could add value if/when fuel spreads expand. While the YTD gain of 100% fully erased last year’s loss of 41% and partially discounts the strong dry bulk market fundamentals, we view the recent pullback of ~23% from the 2021 high of $56.47/share in June as unwarranted. We believe that the outlook remains bright and the risk/reward profile remains attractive. Read More >>