European Markets Opened Lower on March 22
After a weak performance on Tuesday, European markets opened lower and fell in the morning session on March 22.
After gaining for two consecutive trading days, China’s Shanghai Composite Index pulled back and gave up gains on March 22.
The United Kingdom’s FTSE 100 index is stable in the early hours on Tuesday. Weaker Eurozone industrial production is weighing on the markets.
Chart in Focus: The Correlation of Phillips 66 Stock with WTI
The correlation coefficient of Phillips 66 (PSX) versus WTI stands at 0.40.
Institutional holdings in Phillips 66 (PSX) currently stand at ~71%.
Phillips 66 (PSX) has the lowest implied volatility among the downstream American refiners.
Could Chevron’s Cash Flow Situation Change?
Chevron’s cash flow In 2016, Chevron’s (CVX) cash flow from operations stood at $12.9 billion, compared with $19.5 billion in 2015. Chevron’s cash outflow from investing stood at $16.9 billion…
Chevron’s leverage position In this part, we’ll evaluate Chevron’s (CVX) leverage position. Chevron’s net debt-to-adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) stood at 2.6x in 4Q16. Chevron’s ratio is…
Chevron’s trading of refined products Let’s look at Chevron’s (CVX) trading volumes as a percentage of its refined product sales. The company’s trading percentage has been measured as the difference…
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.
Seadrill May File for Chapter 11 Bankruptcy
Debt profile Seadrill (SDRL) has total interest-bearing debt of $9.8 billion. Of this, $3 billion is short-term debt. The remaining $6.6 billion is long-term debt. The company has a cash balance of…
Analyst revisions On February 28, 2017, Seadrill (SDRL) released its fourth-quarter earnings results. The next day, analysts revised its target price. Danske Bank reduced its target price to 10 Norwegian kroner.…
Seadrill’s orderbook Seadrill (SDRL) has 13 newbuilds in its pipeline. Of these, one is semi-submersible, four are drillships, and eight are jack-ups. Since the start of the industry downturn, Seadrill…
What’s the Outlook for Oil and Energy in 2017?
Despite skepticism about the efficacy of OPEC’s agreement, we think that oil (USO) (UCO) is set to rise in the medium term.
OPEC’s output cuts helped buoy oil prices in a big way. Oil prices enjoyed a steady increase in December. It’s expected to breach $60 per barrel in 1H17.
As in October 2016, no drilling permits were issued to drill new wells in the shallow water of the Gulf of Mexico in November.
PTEN on the Street: What the Analysts Are Saying
On March 20, 2017, ~57% of the analysts tracking Patterson-UTI Energy (PTEN) rated it a “buy” or some equivalent. About 40% rated the company a “hold.”
The correlation coefficient between Patterson-UTI Energy’s stock price and crude oil prices from March 2016 to March 20, 2017, is 0.64.
The short interest in Patterson-UTI Energy (PTEN) as a percentage of its float was 14.1% on March 20, as compared to 15.7% on December 30, 2016.
Will Natural Gas Take Merchant Stocks for a Ride Again This Year?
US power generation is dominated by natural gas since gas-fired generation has become more economical in the last few years.
According to Wall Street analysts, NRG Energy’s (NRG) price target for the next year is $20.36. That implies an estimated rise of nearly 12.0%.
NRG Energy (NRG) stock seems to be trading at a fair valuation compared to the industry average and its historical average.
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.
Analyzing Wall Street’s Targets for COP, MRO, SWN, and ECA
All the stocks we’ve looked at in this series are trading below their Wall Street analyst targets and have upside potentials of 28.0%–48.0%.
For 2017, Encana’s (ECA) capital spending program will be $1.6 billion–$1.8 billion. That represents a midpoint rise of ~55.0% compared to 2016.
In its 4Q16 earnings call, Southwestern Energy (SWN) said it has raised its 2017 capital spending program to $1.2 billion–$1.4 billion.