Perfect Storm for Natural Gas—What Are the Top Stock Picks?
Chevron Corporation: A must-know brief overview
Chevron Corporation is currently trading at EV-to-2014E EBITDA of 5x, has an approximately $239 billion market cap, and ~$245 billion enterprise value.
Drop in US Crude Oil Production Supported WTI Prices
The EIA estimates that US crude oil production fell by 40,000 barrels per day to 9.096 million barrels per day in the week ending September 25.
Where Does Chevron’s Dividend Yield Stand?
Chevron’s dividend payments have been increasing over the past several years. In the fourth quarter, Chevron paid a dividend of $1.12 per share.
Permian Basin activity: A key indicator of energy sector health
This was the seventh straight weekly decline in the Permian Basin oil rig count. Overall, the weekly US crude oil rig count was down 4%.
The WTI-Brent crude oil discount narrows
The divergence between WTI and Brent narrowed last week, as a slowdown in Cushing offered a glimmer of hope, causing WTI to rise.
In-Depth Look: Debt Servicing Eating into Operations Cash
With large reductions in cash from operations and heavy burdens of fixed debt repayments, the ratio of debt servicing to operating cash flow rose in 2015.
How Have Depressed Oil Prices Impacted Total’s Stock Performance?
In 2015, sinking oil prices impacted earnings of integrated energy companies. This reflects on the stock performance of these companies.
What Analysts Recommend for CVX after 2Q17 Earnings
Out of 26 analysts currently covering Chevron, 17 have assigned “buy” or “strong buy” ratings.
Plosser on the use of Taylor-like rules in systematic guidance
In this part, we will discuss Dr. Plosser’s views on the use of systematic tools, for example, Taylor-like rules for setting policy rates and communicating these to markets.
No Wonder Energy Companies Are Targeting Asia-Pacific Demand
No wonder integrated energy companies with gas projects in Asia and Australia are targeting the demand in the Asia-Pacific zone.
Petrobras’s Upcoming 3Q16 Results: Where Are Earnings Headed?
Petrobras (PBR) is expected to post its 3Q16 results on November 10, 2016. In 2Q16, it had adjusted EPS of $0.03 compared to analysts’ estimates of $0.12.
Shell Plans to Sell Iraqi Oil Fields: Focus on Divestments
Royal Dutch Shell (RDS.A) plans to sell its oil fields in Iraq. The sale could be due to Shell’s restricted authority on the fields.
MPC-ANDV Merger Could Create Massive Refining Capabilities
The merged entity would have 16 refineries with around 3 million barrels per day (or MMbpd) of capacity spread across the US.
Why Chevron’s Valuations Command a Premium over the Peer Averages
Chevron (CVX) is currently trading at a forward EV-to-EBITDA of 6.8x, above the peer average of 5.5x.
Why Chevron Trades at a Premium to Peers
Chevron’s valuation In the previous part, we discussed Chevron’s (CVX) historical valuation. In this part, we’ll compare Chevron’s forward valuation with peers’. Chevron (CVX) is now trading at a forward PE (price-to-earnings) ratio of 22.7x, above the peer average of 15.7x. ExxonMobil (XOM), PetroChina (PTR), and Petrobras (PBR) are also trading above the average. On […]
How Chevron’s 3Q16 Segmental Earnings Trended
Chevron’s (CVX) earnings improved in 3Q16 compared to 3Q15. In fact, the upstream segment turned profitable in 3Q16.
Suncor Energy: The Only Integrated Energy Loser This Week
Suncor Energy (SU) is the only losing stock in the current week from the integrated energy sector. It fell from last week’s close of $34.67 to $34.52 on October 11, 2017.
Turkey Shoots Down Russian Warplane, Sparking Global Market Turmoil
Global markets fell as Turkey shot down a Russian warplane near the Turkey-Syria border today. Turkish officials alleged that they repeatedly warned the jet to leave Turkish airspace.
US Stock Indices Plunge after Oil Prices Rebound
The three US equity indices that we review in this weekly series fell from December 8 to December 15, 2015, after a rebound in oil prices.
Chevron’s 3.6% Dividend Yield Ranks Sixth with High Valuations
Chevron (CVX) is the sixth stock on our list of the top eight dividend-yielding stocks.
G20 leaders are emphasizing fiscal policies
The G20 finance ministers and central bank governors emphasized the role of fiscal policy in building confidence and supporting domestic demand.
ExxonMobil’s rising investment cash flow isn’t necessarily good
In this part, we’ll discuss XOM’s cash flow from investing activities (or CFI). We say “from,” but items under this type of cash flow are usually negative.
Why was there a surprise in the EIA’s last crude inventory report?
On December 24, the US Energy Information Administration (or EIA) released its crude inventory report for the week ended December 19.
Assessing BP’s Debt Position
Comparing BP’s debt position with peers’ In this part, we’ll assess whether BP’s (BP) debt position has improved. Let’s begin by looking at how BP’s debt position compares with peers’. In the second quarter, BP’s total debt-to-capital ratio was 37%, higher than the industry average of 33%. The industry average considers 13 integrated energy companies worldwide. […]
BP’s Upstream Earnings: What to Expect in Q1
According to BP’s guidance, its hydrocarbon production is expected to stay flat sequentially in the first quarter.
How BP’s Debt Position Compares
In this part, we’ll review whether BP’s (BP) debt position has improved. Let’s begin by comparing BP’s debt position with peers’.
How RPM International’s Valuation Compares
Forward price-to-earnings ratio Previously, we discussed analysts’ views on RPM International (RPM). In this part, we’ll compare RPM’s forward PE (price-to-earnings) ratio with peers’. As of December 20, 2017, RPM’s one-year forward PE ratio stood at 17.5x, while peer PPG Industries (PPG) had a PE ratio of 17.6x. Forward PE ratios consider a company’s estimated EPS (earnings […]
Key Analysis of Chevron’s Fiscal 3Q15 Earnings
Chevron (CVX) announced its third quarter earnings on October 30, 2015. Chevron saw new positions in 870 institutional investors’ portfolios in fiscal 2Q15.
Why the latest oil inventory report affects crude prices
Every week, the U.S. Energy Information Administration (or EIA) reports figures on crude inventories, or the amount of crude oil stored in facilities across the U.S.
Luxor Capital Establishes New Stake in Cheniere Energy
In February 2015, Cheniere Energy announced that its 4Q14 and full-year results reported a net loss attributable to common stockholders of $158.6 million, or $0.70 per share.
Subdued Inflation in Japan: A Case for More Stimulus?
Inflation in Japan, as measured by the consumer price index, rose just 0.2% in July from a year ago. The Bank of Japan has a target of 2% for inflation in Japan.
What Analysts Recommend for Integrated Energy Stocks
BP has the most “hold” ratings among the four stocks we’ve discussed in this series.
Institutional Holdings in BP Today: Behind the Trend
Institutional holdings in BP currently stand at ~10%, which has fallen ~1% in the past six months.
A Look at Shell’s Stock in 4Q15 Prior to Its Earnings Release
In 2015, Royal Dutch Shell’s stock fell. Shell’s stock lost 38% in the trailing twelve months to January 26, 2016.
Chevron’s Downstream Margin Trends in 4Q17
In this series, we provided an update on Chevron’s latest financial and operational performance.
Why Chevron is cutting spending on some projects
Chevron has cut spending on the Kitimat liquefied natural gas project (or LNG) in Canada due to falling crude prices.
Why inventory figures buoyed crude oil prices
On February 5, the DOE reported an increase in crude oil inventories of 0.44 million barrels—much lower than analysts’ expectations of a build of 2.27 million barrels.
Shell’s Upstream Portfolio: Is it Poised to Grow?
Royal Dutch Shell (RDS.A) produced 3.8 MMboepd in 1Q17 from its worldwide operations, compared to 3.7 MMboepd in 1Q16.
How Was ExxonMobil’s Upstream Performance in Q2 2018?
ExxonMobil (XOM) produced 3.7 MMboepd (million barrels of oil equivalent per day) from its worldwide operations in the second quarter.
BP’s Upstream Segment: Large Upcoming Gas Projects
BP has a strong pipeline of projects in its upstream portfolio. These projects are expected to result in 800,000 barrels per day of new production by 2020.
Analyzing Integrated Oil and Gas Companies’ Moving Averages
ExxonMobil, Chevron, and Occidental Petroleum were trading at an average of 0.6% below their respective 100-day moving averages.
USO Is a Better Trade Compared to XOP in Week of July 2
Shares of USO trade on the NYSE like company stock. The fund lost ~5.3% in the week ended July 2.
Must-know: Insight into ExxonMobil’s earnings
A large portion of ExxonMobil’s earnings come from “non-operating” sources. This reflects the sheer scope of the company’s operations.
Cheniere Energy Partners: Wall Street Recommendations ahead of Q2
We’ll take a look at recent recommendations that brokers have provided for Cheniere Energy Partners (CQP) ahead of its 2Q15 earnings release on July 29.
Tesoro’s Big Bet on Building Crude-by-Rail Infrastructure
An important part of Tesoro’s business, crude-by-rail allows refiners to cover maximum accessibility and to gain from price differentials.
Why US oil rigs have been trending downward since mid-year
Oil rig counts decreased last week, down ~4% since June Last week, the Baker Hughes oil rig count decreased from 1,367 to 1,361. Oil rig counts have been on a slight downward trend since mid-year. Rigs drilling for oil peaked this year in June, at 1,413, but have since fallen about 4%. Though the drop […]
What’s the Forecast for Shell Stock for the Next 7 Days?
Implied volatility in Royal Dutch Shell (RDS.A) has fallen 4.9% since July 3, 2017, to the current level of 12.8%.
Chevron’s Upstream Segment: Production Growth on the Horizon?
Chevron (CVX) produced 2.7 MMboepd (million barrels of oil equivalent per day) from its worldwide operations in 1Q17.
Refinery Inputs Fall Again: What It Means for WTI Crude Oil
In its weekly report on June 3, the EIA reported that US crude oil refinery inputs averaged ~16.4 MMbpd during the week ending May 29.
What Might Spook Natural Gas in Early 2019?
On December 31, natural gas February futures fell 11% and settled at $2.94 per million British thermal units.
Energy Stocks’ Historical Averages in Focus
In 2Q16, ExxonMobil (XOM), Chevron (CVX), and Royal Dutch Shell (RDS.A) traded at EV-to-EBITDA multiples above their historical averages.
Chevron: Short Interest Has Been Volatile in Q2
The short interest in Chevron (CVX) has been very volatile in the second quarter. While the short interest in the stock rose from 0.90% on April 1 to 1.49% on April 30, it has fallen to 0.86%.
Must-know: Petroleum doing well, but potash is slow
Total petroleum production increased by 4% in fiscal year 2014 (or FY14). However, the highlight was the increase in liquids production. It was supported by a 73% increase in Onshore U.S. liquid volumes and nearly doubled production at Atlantis. This is important to note because liquid volumes are more profitable.
What Put Pressure on the Energy Sector in February 2018?
The US energy sector was badly affected by the recent market sell-off in February 2018.
Why the Permian Basin has been driving horizontal rig count records
Out of the current 1,575 oil rigs at work, the majority—roughly 552—are in the Permian Basin. The Eagle Ford has 196 rigs, the Williston and Bakken have 192 rigs, and the Mississippian has 79 rigs.
Will the API Inventory Report Lead the Crude Oil Price Drop?
Rising refinery utilization and declining US output will support crude oil prices. This is positive for crude oil prices.
Why perspective on Southwestern Energy’s performance is a plus
SWN’s actually done a great job operationally. It’s grown its production and kept costs down to ensure steady margins. This means that if natural gas prices start rising, the gains would drop straight into the company’s net earnings.
Will the US Crude Oil Output Rise in November?
The EIA (U.S. Energy Information Administration) published that the US crude oil output rose by 48,000 bpd to 9.2 MMbpd for the week ending October 30, 2015.
Commodities and the S&P 500 Are Feeling the Heat
The SPDR S&P 500 ETF (SPY) fell ~0.5% to $268.8 on April 19, 2018. SPY targets to follow the S&P 500 Index’s performance.
Chevron’s Debt Fell in 4Q17: What to Expect in 2018
In this series, we’ll look at Chevron’s (CVX) current financial position and growth prospects.
Key analysis: Why Mexico desperately needed energy reforms
Things were going pretty well for Mexico until 2004 when its oil production started declining. The decline was as a result of Cantarell’s—Mexico’s largest oilfield— depleting reserves.
Where Do Institutional Holdings in Integrated Energy Stocks Stand Now?
Institutional holdings in integrated energy stocks like ExxonMobil (XOM), Royal Dutch Shell (RDS.A), BP (BP), and Chevron (CVX) have varied from 13% to 63%.
Shell’s Second-Quarter Earnings Rose but Still Missed Estimates
Royal Dutch Shell (RDS.A) reported its Q2 2018 earnings on July 26. The company’s earnings missed estimates.
Where Integrated Energy Companies’ Dividends Stood in 1Q17
Integrated energy companies such as ExxonMobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS.A), and BP (BP) are steady dividend-paying companies.
How Chevron’s 1Q17 Segmental Earnings Trended
Chevron’s (CVX) Upstream segment, which posted a loss in 1Q16, saw its earnings rise to ~$1.5 billion in 1Q17.
Growing Conflict in the Middle East Pushes Crude Oil to New Lows
Growing conflict in the Middle East between Saudi Arabia and Iran, the major oil-producing countries of OPEC, has become a threat for crude oil prices.
ExxonMobil: Wall Street analysts call it
Approximately 35% of Wall Street analysts tracking ExxonMobil (XOM) rate it a “buy.” Approximately 10% of the analysts recommend a “sell.”
India’s Consumer Price Index Is Tethered but Risky
The RBI had headroom to make a further rate reduction in August, but then the bank resisted, citing the rise in core inflation.
Chevron Ranks Second-Last in Terms of Its Dividend Yield
In terms of its dividend yield, Chevron (CVX) is the fifth-best performer among the six stocks under review.
Lower Fuel Prices Led to a Decline in Import Prices in December
According to the Bureau of Labor Statistics, US import prices fell 1.2% month-over-month in December as compared to a 0.5% decline in November 2015.
Do Crude Oil Prices Hold the Key to a Rate Hike in the US?
Cushing, Oklahoma WTI prices fell to $41.93 a barrel on August 17—the lowest since early March 2009. Iran flooding the market with its oil is one of the reasons for this fall.
How Will Shell Stock Move after Earnings?
Considering Shell’s implied volatility of 21.0%, Shell stock could close between $63.7 and $59.8 per share in the next eight days.
Crude Oil Prices Fall Due to Possible Panic Selling
NYMEX-traded WTI crude oil futures contracts for September delivery fell by 2.47% and settled at $42.23 per barrel on Thursday, August 13, 2015.
Crude Oil Market: Will Bullish Oil Traders Control 2017?
January WTI crude oil futures fell for the third straight day yesterday. Prices fell below the key psychological levels of $42 per barrel on November 30.
Has Chevron’s Earnings Mix Changed?
Chevron’s overall adjusted earnings rose from $1.6 billion in the third quarter of 2017 to $4.7 billion in the third quarter of 2018.
Permian Basin activity signals changes to oil rig count
Rig counts in the Permian Basin can gauge drilling activities for upstream companies. The Permian Basin rig count is now at its lowest since May 2011.
Could BP’s Cash Flow Position Improve?
In the first quarter, BP’s (BP) cash flow from operations rose 72% YoY (year-over-year) to $3.7 billion, and its cash outflow from investing was flat YoY at $3.8 billion.
How Institutional Holdings in Shell Are Trending
Institutional holdings show the percentage of a company’s shares owned by institutions like mutual funds and banks.
Why oil prices spiked on tensions in Gaza and Ukraine
Early last week, WTI crude oil had eased to close to $99 following Libya’s restarting exports from major ports and abating fears over supply disruptions in Iraq.
A snapshot of ExxonMobil’s declining returns
In this part, we’ll look at ExxonMobil’s (XOM) profitability at various levels and its returns in different contexts.
Where Chevron’s Dividend Yield Places It in the Top 8 Integrated Energy Stocks
Chevron (CVX) is the seventh top dividend-yielding stock on our list of the top eight integrated energy stocks.
Key Updates from the Energy Sector on July 17–21, 2017
Noble Energy (NBL) will report its 2Q17 earnings on August 3, 2017. The company’s revenue estimates for 2Q17 stand at $1.06 billion.
What is XLE? Exploring Upstream Energy Company Exposure
Companies in the E&P or upstream industry in the XLE portfolio include Anadarko (APC) and Pioneer Natural Resources (PXD).
Global Crude Oil Supply Outages Have Risen
The EIA estimates that global crude oil supply outages rose by 209,000 bpd to 1.9 MMbpd in August 2017—compared to July 2017.
Chevron’s Valuation Is Higher than Historical Averages
Let’s examine CVX’s valuation trend. CVX traded at an average PE of 11.7x from 1Q13 to 3Q15. The PE measures a company’s price per share as a multiple of EPS.
Commodity ETFs a Riskier Bet Last Week Than XOP
While retail investors don’t have easy access to the futures market, they can benefit from access to safer, low-cost avenues such as energy ETFs to bet on WTI crude prices.
Who’s the energy company achiever, and who are the laggards?
Let’s see which energy company stands out as the most efficient in reducing debt loads and improving leverage ratios and which ones are laggards.
Why Did CVR Refining’s Implied Volatility Rise?
CVR Refining’s implied volatility rose 2.1% on January 23, 2017. The stock rose 1.8%. Goldman Sach increased its target price on the stock to $12 from $7.
Must-know: Why oil traded flat on the latest inventory figures
Oil traded flat on the latest inventories data, with a large build in crude oil stocks but declines in gasoline and distillate stocks.
The US Gulf of Mexico Rig Count Falls through the Cracks
The Gulf of Mexico rig count was down by 11 rigs compared to the previous week, with 35 rigs for the week ending March 20, 2015.
Production is expected to increase, despite lower crude prices
The EIA expects 2015 production to touch 9.3 MMbbls/d—despite the low prices. In 2014, production averaged 8.6 MMbbls/d, according to the EIA’s estimates.
EIA projections: What to expect for crude prices in 2015
Plunging crude prices may cause crude production to decline.The EIA has scaled down its 2015 production growth forecast from 900,000 to 700,000 barrels.
Chevron Closes Slightly Higher following Its 4Q15 Results
Chevron announced its 4Q15 results on January 29, before the market opened. As Chevron missed its estimates for 4Q15, the stock received a weak opening.
Must-Know: World’s Top Oil Companies by Production
The US, Saudi Arabia, and Russia are the world’s top three crude oil producers. Let’s take a look at the world’s top oil players by production volumes.
Halliburton Company Led High-Grade Bond Issuance in November
Halliburton Company (HAL) issued A2/A rated high-grade bonds worth $7.5 billion in November.
XOM, CVX, RDS.A, BP: Are They Underperforming the S&P 500?
So far in 1Q18, Chevron (CVX) stock fell 13.9%, the highest among its peers ExxonMobil (XOM), BP (BP), and Royal Dutch Shell (RDS.A).
Lower Crude Oil Prices Are Behind the Layoffs at U.S. Steel
Lower crude oil prices are the primary reason behind falling oil rig counts. Leading energy companies have reduced their 2015 capital expenditure targets.
BP Trades above the Peer Average
Currently, BP trades at a forward PE ratio of 10.7x, which is above its peer average of 10.6x.
AstraZeneca Issued High-Grade Bonds to Acquire ZS Pharma
Last week, AstraZeneca issued A2/A rated high-grade bonds worth $6.0 billion to fund the acquisition of ZS Pharma (ZSPH).