Energy & Utilities

November US crude oil (DWT)(UWT)(USO) futures are above their 20-day, 50-day, and 100-day moving averages at $49.25, $48.77, and $48.11 per barrel as of September 25.

As of July 25, 2017, Transocean (RIG) had a backlog of $10.2 billion—compared to $10.8 billion in April 2017.

The power sector is the backbone of any economy. All of the other industries depend on it. In the U.S., the power utilities business is characterized by steady dividends and stable earnings.

PointLogic estimates that US natural gas consumption rose ~2.1% to 57.8 Bcf (billion cubic feet) per day from May 31 to June 6.

The graph above shows that eight out of the 24 analysts covering XOM have rated it a “buy” in April 2018.

On February 27, Chesapeake Energy might report an adjusted net income of $0.18 per diluted share based on analysts’ consensus estimates.

Kansas City Southern reported a YoY (year-over-year) 4.4% rise in railcars in the week ended July 15, 2017.

Halliburton’s (HAL) cash from operating activities (or CFO) in 2Q17 was a huge improvement over 2Q16 as well as an increase over 1Q17.

In the week ended August 31, 2018, US crude oil inventories were almost on par with their five-year average.

US active crude oil (PXI) (ERY) (FXN) futures hit $26.21 per barrel on February 11, 2016—the lowest level in more than 13 years.

Range Resources had the highest correlation of 77.4% with US crude oil active futures in the last five trading sessions among natural gas–weighted stocks.

In this series, we’ll look at the MLPs that have the highest correlations with natural gas amid the volatility in natural gas prices.

Halliburton’s (HAL) CFO (cash flow from operating activities) in 2017 was a significant improvement over 2016.

The WTI Cushing-WTI Midland spread was at $4.12 per barrel on June 25—compared to $9.7 per barrel on June 18. The spread fell 58% on June 18–25.

Libya is an OPEC member but was exempt from the production cut deal due to political and economic instability.

In January, 23 analysts rated Chevron (CVX). Among the analysts, 17 (or 74%) recommended a “buy” or “strong buy.”

Approximately 66% of the Wall Street analysts tracking Nabors Industries rated it as a “buy” or some equivalent.

Natural gas supplies depend on US crude oil prices. In fact, the energy sector as a whole can follow trends set by crude oil.

In this series, we’ll analyze the top five OFS (oilfield equipment and service) companies by net debt-to-equity ratio in fiscal 2017.

MLPs recovered slightly in the week ending August 25—possibly due to an overcorrection in the first three weeks of the month.

On May 31, US crude oil July futures fell 1.7% and closed at $67.04 per barrel. That day, the United States Oil ETF (USO) fell 2%.

WTI crude oil prices have fallen almost 12.0% year-to-date due to the rise in production for the United States, Libya, Nigeria, Brazil, and Canada in 2017.

Industry analysts suggest that investors should avoid Frontline because of the bankruptcy risk. Currently, the company is facing bankruptcy. This is led by the $190 million bond that’s due in April 2015.

California-based Sempra Energy (SRE) has emerged as the largest utility by market cap in the state after PG&E Corporation’s (PCG) wildfire fiasco.

At the end of 2Q17, PG&E had a total debt of $18.5 billion, while Sempra Energy had total debt of $18.1 billion. Its debt might increase going forward.

Tesoro Logistics’ (TLLP) operations are organized into the Crude Oil Gathering segment and the Terminalling and Transportation segment.

Between July 27 and August 3, 2016, natural gas futures rose by ~6.7%, and the US Dollar Index fell by ~1.5%.

The dry bulk shipping industry is cyclical mainly due to economic or business cycles as well as a long lead time between the placement of orders and the delivery of new vessels.

While REITs started trading in 1951 and MLPs started off in 1981, the first yieldco was floated in 2005 by Seaspan Corporation, a shipping company.

The top four utilities have failed to generate positive free cash flows in the last few years.

Powder River Basin coal settled at $11.75 per short ton, while Illinois Basin spot coal prices closed at $32.60 per short ton.

In the week ended March 3, 2018, Norfolk Southern saw a ~2% fall in carload traffic. It hauled ~67,700 carloads in the week.

On June 14, Russia and Saudi Arabia announced a bilateral framework to increase cooperation and manage the oil market.

In 2013, Phillips 66 generated 67%, 13%, and 6% of its revenues from the United States, the United Kingdom, and Germany, respectively. The company’s other foreign operations contributed ~16%.

Article focus In this article, we’ll discuss analysts’ target price revisions for offshore drilling companies in Week 8 of 2018 (ended February 23). Revisions in Week 8 Jefferies revised its target prices for two offshore drillers. On February 21, 2018, it reduced the target price for Transocean (RIG) to $12 from 413 and maintained a […]

Athlon is an independent oil and gas exploration and production company. Its activities include the acquisition, exploration, and development of oil and liquids-heavy gas resources in the Permian Basin.

Utility stocks seem overvalued. Utilities have reached record levels. They have been trading at inflated valuations for months.

Weatherford International (WFT) stock fell 16.0% in the week ended November 17, 2017. The VanEck Vectors Oil Services ETF (OIH) generated a return of -6.0% during this period.

Schlumberger’s yearly price-to-earnings ratio is in line with the group. Haliburton has the lowest price-to-earnings ratio.

A Bloomberg survey estimates that the crude oil inventories at Cushing could have declined by 2.3 MMbbls (million barrels) on January 12–19, 2018.