European Markets Wait for Oil Producers’ Meeting
The United Kingdom’s FTSE 100 index regained strength on May 24. On Thursday, the FTSE 100 index opened the day higher and traded at record price levels.
European markets opened May 24 with caution amid China’s downgrade by Moody’s. Germany’s market didn’t regain strength.
The Shanghai Composite Index opened lower and fell more than 1% in the early hours amid Moody’s debt rating. Moody’s downgraded China’s credit ratings.
Why Tesoro’s Valuations Are Higher Than the Historical Averages
From 1Q15 to 1Q17, Tesoro’s EV-to-adjusted-EBITDA ratio stood at an average of 5.4x.
The correlation coefficient of Tesoro (TSO) versus WTI stands at 0.24.
Tesoro (TSO) is now trading at a forward price-to-earnings ratio of 15.1x, above its peer average of 13.6x.
Have ExxonMobil’s Refined Trading Product Volumes Fallen?
ExxonMobil’s trading volumes accounted for ~20% of its sales volumes in 1Q17.
ExxonMobil sells 62% of its petrochemical products in international markets.
The US is the largest market for XOM, accounting for 40% of total refined products sold.
What ExxonMobil’s Sophisticated Investors Think of It
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.
Energy Transfer Equity (ETE) and Sonoco Logistics (SXL), which are part of the Energy Transfer group, have “buy” ratings from 88.9% and 73.3% of analysts surveyed, respectively.
Key Offshore Drilling Updates from Noble
According to its latest fleet status report, Noble secured two new contracts, but it also reported one contract termination.
Last week (ended June 16), Atwood Oceanics was the worst-performing offshore drilling stock, while Rowan was the only stock among peers to see gains.
Analysts had mixed reactions to the offshore drilling industry’s first merger since the downturn started.
How Did Drilling Permits Fare in April?
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.
In March 2017, no drilling permits were issued to drill new wells in the shallow water of the Gulf of Mexico.
In February, two drilling permits were issued to drill a new well in the shallow water of the Gulf of Mexico. In the previous month, one permit was issued.
What Analysts Are Recommending for Nabors Industries
On June 19, 2017, approximately 81.0% of analysts tracking Nabors Industries rated it a “buy” or some equivalent. About 19.0% rated it a “hold.”
The correlation coefficient between the price of crude oil and Nabors Industries stock from June 19, 2016, to June 19, 2017, is 0.65.
On June 20, 2017, Nabors Industries’ (NBR) implied volatility was 61.0% compared to 47.0% when it announced its 1Q17 financial results on April 26, 2017.
US Nuclear Power Producers Are Asking for State Help
If nuclear power plants shut down, that power generation share is expected to be eaten up by coal or natural gas.
Exelon (EXC), the largest nuclear power generator in the US, has warned it could close its Three Mile Island nuclear plant in Pennsylvania if it doesn’t receive state aid.
Hybrid utility stocks are currently offering very attractive potential upsides compared to utilities at large.
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.
Will Yingli Solar Keep Shining in Its Future Earnings?
For 4Q16, Yingli Solar expects its total PV module shipments to be in the range of 600 MW–670 MW—a ~64% quarter-over-quarter rise in its shipments.
For 3Q16, Yingli Solar’s (YGE) interest expenses came in at $24.0 million, as compared to $23.9 million in 2Q16 and $39.7 million in 3Q15.
In 3Q16, Yingli Solar reported a gross profit of $12.0 million, as compared to $69.2 million in 2Q16. On a YoY basis, this is a ~79% fall from 3Q15.
US Natural Gas Rig Count, Production, and Consumption
The EIA estimates that monthly US dry natural gas production rose by 6.8 Bcf per day or 19% to 73.9 Bcf per day in March 2017—compared to February 2017.
US natural gas inventories rose by 61 Bcf (billion cubic feet) to 2,770 Bcf on June 9–16, 2017. Inventories fell 10.5% from the same period in 2016.
Weather forecasting agencies predict that temperatures will be milder than normal next week in the Great Lakes and eastern parts of the US.