Institutional investors analyze Chevron
Chevron (CVX) announced its third quarter earnings on October 30, 2015. This series covers institutional investors’ activity in energy stocks in fiscal 3Q15—focusing specifically on Chevron. Let’s look at Chevron’s fiscal 3Q15 aggregate earnings. Institutional investors’ filings reveal that most of the asset managers were bearish on energy companies like ExxonMobil (XOM), BP (BP), ConocoPhillips (COP), Valero Energy (VLO), Marathon Petroleum (MPC), and Royal Dutch Shell (RDS).
Chevron saw new positions in 870 institutional investors’ portfolios in fiscal 2Q15. It saw position decreases or liquidations from 712 asset management companies.
Most of the energy companies—ExxonMobil, BP, ConocoPhillips, Royal Dutch Shell, Marathon Petroleum, and Valero Energy—have been delivering negative returns since fiscal 1Q15. The industry suffered due to lower crude oil prices, current subdued macro economy factors all over the world, and more crude oil in the international market. The S&P 500 Energy Index delivered a negative 13.9% return YTD (year-to-date).
The above chart shows the performance of energy companies in the US. Energy companies that experienced double-digit falls in share prices include ExxonMobil, BP, ConocoPhillips, Valero Energy, Marathon Petroleum, and Royal Dutch Shell. In the contrast, the S&P 500, the barometer equity index, delivered positive returns compared to the S&P 500 Energy Index.
As a whole, the sector is under pressure—driven by a glut of crude oil in the international market and the US oil production. The Dow Jones S&P 500 Energy (SPN) fell by 15.20% YTD—compared to the SPDR Energy Select Sector ETF (XLE). It fell 13.3% over the same period.
Energy companies include other industries like oil and gas exploration and production, oil extraction, Oil & Gas Equipment & Services, Oil & Gas Drilling, Oil & Gas Storage & Transportation, and refining. Lower crude oil prices impacted the sector. The S&P Oil & Gas Exploration & Production Select Industry Index delivered -22.4% returns YTD compared to the S&P 500. It provided a 0.79% return for the same period.
In the next part of the series, we’ll look at the Chevron’s YTD performance.