Thirteen out of the 18 analysts covering Tesoro (TSO) have rated it as a “buy” so far in March 2017. Another five analysts have rated TSO as a “hold.”
Since January 3, 2017, Tesoro stock has fallen 8%, more than its peers Marathon Petroleum and Valero Energy, the leading American downstream companies.
For Seadrill, Danske Bank reduced its target price to ten Norwegian kroner. Evercore reduced its target price to $1 from $2 and maintained a “sell” rating.
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.
For the week ending March 17, 2017, the US offshore rig count fell to 19 from 20 in the prior week. The offshore rig count continued to sway.
Although oil prices are expected to rise in 2017, it won’t benefit the offshore drilling industry. It will be the third year that spending hasn’t risen.
March couldn’t keep up the pace. Contracting activity fell compared to the previous month. As of mid-March, six new contracts had been announced.
Since the beginning of 2017, Seadrill stock has been hit hard among offshore drilling stocks. The company is having a hard time surviving the downturn.
Global implications such as interest rate hikes, political stability, and market uncertainty play big roles in determining the prices of mining shares.
Precious metal funds like GLD and SLV have seen significant correlations to their respective precious metals.
Funds like GDX and RING)are closely linked to the performance of precious metals—especially to gold and silver.
All four precious metals witnessed a rise in price on Monday, March 20, as the US dollar slipped to its six-week low.
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.
For fiscal 2017, Marathon Oil (MRO) plans to spend ~$2.2 billion in capex, which is ~100.0% more than fiscal 2016.
For fiscal 2017, ConocoPhillips (COP) expects capex of $5.0 billion, which is marginally higher by $100.0 million compared to $4.9 billion in fiscal 2016.
The falling trend in crude oil (USO) and natural gas (UNG) prices from June 2014 to February 2016 caused their values to fall ~76.0% and ~75.0%, respectively.
US power generation is dominated by natural gas since gas-fired generation has become more economical in the last few years.
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…