Coal Prices Remained Steady in the Week Ended October 13
The spot price for Central Appalachian coal was reported at $55.50 per short ton, remaining constant compared to the week ended October 6, 2017.
The coal shipments for the week ended October 7, 2017, totaled 15.1 MMst (million short tons).
On October 13, 2017, Brent crude oil prices settled at $57.17 per barrel, 3% higher than $55.60 reported during the previous week.
Short Interest in Phillips 66 ahead of 3Q17 Earnings
Short interest in Phillips 66 (PSX) expressed as a percentage of outstanding shares has fallen from 1.6% at the end of August to the current level of 1.4%.
Phillips 66 has been rated by 19 analysts. Of those, eight analysts (or 42.0%) have assigned the stock a “buy” or “strong buy” rating.
Implied volatility in Phillips 66 has fallen from 17.9% on July 3, 2017, to the current level of 15.9%. PSX stock rose 13.3% in the same period.
How Has Short Interest in CVX Trended?
Chevron (CVX) has seen a rise in its short interest (as a percentage of outstanding shares) from 1.2% on July 3, 2017, to the current level of 1.5%.
CVX is trading at a forward PE (price-to-earnings ratio) of 25.4x above its peer average of 18.9x.
In October 2017, 25 analysts rated CVX. Of the total, 16 analysts have assigned a “buy” or “strong buy” rating.
A Look at Key Trends in M&A Activity in the Permian
Upstream companies Occidental Petroleum (OXY), Carrizo Oil & Gas (CRZO), and Marathon Oil (MRO) all purchased Permian acreage for $600 million, $648 million, and $700 million, respectively.
ExxonMobil’s (XOM) institutional holdings currently stand at ~55%.
In this series, we’ll look at Energy Transfer Partners’ 2Q15 operating results, contrast actual numbers against analyst estimates, and compare individual segment contributions.
HSBC Initiates Coverage on Ensco with ‘Buy’ Rating
On October 19, 2017, HSBC initiated coverage on Ensco with a “buy” rating and a target price of $7.3.
Ensco’s (ESV) estimated $457 million in revenues in 3Q17 would be a 16.6% fall year-over-year, similar to 2Q17 revenue of $457 million.
Ensco (ESV) released its quarterly fleet status report on October 19, 2017, its first fleet report since it acquired Atwood Oceanics (ATW).
How Many Offshore Drilling Permits Were Issued in August?
In August 2017, not a single drilling permit was issued in the shallow waters of the Gulf of Mexico.
In May 2017, three drilling permits were issued in the shallow waters of the Gulf of Mexico compared to only one in April 2017.
In April 2017, only one drilling permit was issued in the shallow water of the Gulf of Mexico. Not a single permit was issued in March.
Wall Street’s Forecasts for Baker Hughes after Its 3Q17 Earnings
On October 20, 2017, ~39% of the sell-side analysts surveyed by Reuters that track Baker Hughes rated it as a “buy” or some equivalent.
Baker Hughes (BHGE) released its 3Q17 results on October 20. Immediately following its earnings release, BHGE stock rose 0.3% to $33.26 from the previous day’s close.
In the first nine months of 2017, Baker Hughes’s revenues increased 18% over the first nine months of 2016.
A Look at Top Utilities’ Price Targets This Week
According to Wall Street analyst estimates, renewables giant NextEra Energy (NEE) stock has a mean price target of $155.7 against its current market price target of $154.16, which implies an estimated gain of 1% going forward.
US utility stocks are currently trading at an average dividend yield of 3.5% against the broader market’s 2%.
The Utilities Select Sector SPDR ETF (XLU) is currently trading above both its 50-day and 200-day simple moving averages, which is a sign of strength.
How Much Do Ethanol Prices Impact Pacific Ethanol?
Ethanol prices can have a significant impact on ethanol stocks. That’s known as price risk. Companies can mitigate price risk with futures contracts.
In 2014, about half of the corn produced in the United States was used for the production of alcohol for fuel use, primarily ethanol.
Fossil fuels are non-renewable, and a shortage can wreak havoc on the economy. It was the desire for alternative energy that gave rise to the ethanol industry.
What’s Next for SunEdison?
SunEdison (SUNEQ) stock, which is trading OTC (over-the-counter), has fallen ~68.0% since April 5, 2017.
On December 2, 2016, GlobalWafers completed the acquisition of SunEdison Semiconductor for $683.0 million.
SunEdison (SUNEQ) formed TerraForm Global in early 2015 to own and operate renewable energy assets in emerging markets.
This Could Likely Impact Energy Prices This Week
The EIA’s oil inventory data, which scheduled to be released on October 25, 2017, will likely be important for oil prices this week (ended October 27).
Between October 13 and October 20, 2017, the United States Natural Gas Fund LP (UNG) fell 2.2%, and natural gas November futures fell 2.8%.
Between October 13 and October 20, 2017, the United States Oil Fund LP (USO) rose 0.6%, and US crude oil (OIIL) (DBO) active futures rose 0.2%.