Diamondback Energy Inc
Are Oil’s Supply Concerns Rising?
On May 21, US crude oil July futures closed $5.97 above the July 2019 futures contract. On May 14–21, US crude oil July futures rose 1.9%.
How Wall Street Analysts Rate CNX Resources
The median target price on CNX Resources stock is $20.50, which is ~21% higher than its July 26 closing price of $17.01.
Did Occidental Petroleum Set a High Bar for 3Q16 Production?
For 3Q16, Occidental Petroleum expects its total production from ongoing operations to be in the range of 600–605 Mboe per day.
What Devon Energy’s Implied Volatility Could Say about Its Stock Price
On May 18, 2017, Devon Energy (DVN) had an implied volatility of ~33.9, which is ~14.9% below its 260-trading day historical price volatility of ~39.9%.
What’s Been Driving Diamondback Energy’s Stock Price Movement?
Diamondback Energy’s stock price saw uptrend from October 2012 to June 2014. When NYMEX WTI crude oil started falling in June 2014, FANG’s stock peaked.
Why Crude Oil Prices Don’t Impact Crude Producers the Same
For the past month, Energen had the highest correlation of ~0.94 with WTI crude oil (USO) prices. Occidental Petroleum had the lowest correction coefficient.
Could California Resources Report Lower Losses in Q2 2018?
California Resources (CRC) is expected to report its Q2 2018 results on August 2, after the market closes.
Can Marathon Oil Report Higher Profits in Q2 2018?
Marathon Oil (MRO) is set to report its Q2 earnings on August 1. Excluding one-time items, the net income estimate is ~$161 million.
Legacy Reserves: Top Upstream Gainer This Week
In the week starting on March 26, 2018, Legacy Reserves LP increased from last week’s close of $4.47 to $4.94 on March 26—an increase of ~11%.
WTI Cushing–WTI Midland Spread at Highest Level since August 2014
The Brent-WTI Midland spread reached $23.11 per barrel on May 31, which was its highest level since August 2014.
Crude Oil: Analyzing the Futures Spread
On August 20, US crude oil October futures closed ~$3.1 above the October 2019 futures contract.
Is Marathon Oil’s Debt Load Becoming Too Heavy for Its Declining Earnings?
As of June 30, 2016, Marathon Oil’s total debt was ~$7.3 billion. With ~$2.6 billion in cash and cash equivalents, MRO’s net debt was ~$4.7 billion.
Energy XXI Gulf Coast Leads Upstream Gainers from June 18–20
From June 18–20, Energy XXI Gulf Coast (EGC) rose from last week’s close of $7.49 to $8.97, an increase of 20%.
Marathon Oil’s Lifting Costs
In 2Q17, Marathon Oil’s (MRO) reported a lifting cost of ~$6.75 per boe (barrel of oil equivalent), which is ~28.0% lower than its 2Q16 lifting cost of ~$10.88.
A Look at E&P Stocks’ Rating Updates Last Week
Carrizo Oil & Gas (CRZO) saw a target price cut by SunTrust Robinson Humphrey last week.
WTI Crude Oil Charts: Will History Repeat This Time?
WTI crude oil futures for June delivery showed the rectangular trading range pattern. Oil prices have been fluctuating between $58 and $61 per barrel for the last ten days.
A Look into ConocoPhillips Institutional Holdings
ConocoPhillips has fallen 0.6% YTD, underperforming the S&P 500 Index’s 25.5% gain. Subdued energy commodity prices could explain its underperformance.
Why Inventory Data Might Boost Oil Prices
In the week ended August 31, 2018, US crude oil inventories were almost on par with their five-year average.
Why Did the WTI Cushing-WTI Midland Spread Drop?
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.
Weakest E&P Stocks for the Week Ending August 17
Alta Mesa Resources (AMR), which is primarily focused in the STACK region, was the weakest E&P company in the week ending August 17.
WTI Cushing–WTI Midland Spread Drops from Multiyear High
The WTI Cushing-WTI Midland spread was $11.25 per barrel on July 16, compared to $13.25 per barrel on July 9.
US Crude Oil Prices Could Fall More
On June 4, US crude oil July futures fell 1.6% and settled at $64.75 per barrel—the lowest closing level for active US crude oil futures since April 9.
Is Marathon Oil’s Debt Load Becoming Too Heavy for its Declining Earnings?
On September 30, MRO’s total debt was ~$7.3 billion. With ~$1.95 billion in cash and cash equivalents, MRO’s net debt was ~$5.3 billion at the end of 3Q16.
Doji pattern: Crude Oil Prices Settle Below $60 per Barrel
Massive supply and a strong dollar will continue to put pressure on oil prices. On the other hand, slowing US output could support crude oil prices.
Iran Running Out of Options: Could Oil Spike?
From June 29 to July 6, US crude oil August futures fell 0.5%. On July 6, US crude oil August futures settled at $73.80 per barrel.
Did Oil ETFs Diverge from Oil Prices Last Week?
On November 23–30, the United States Oil ETF (USO) and the United States 12-Month Oil ETF (USL) fell 0.9% and 1.2%, respectively.
Oil-Weighted Stocks Could Be Impacted by Oil’s Fall
On April 4, 2018, US crude oil May futures fell 0.2% and closed at $63.37 per barrel. On March 28–April 4, 2018, US crude oil May futures fell 1.6%.
What Wall Street Analysts Are Saying about Diamondback Energy
As of March 4, 2016, about 85% of Wall Street analysts have rated Diamondback Energy (FANG) as a “buy,” and ~12% of analysts have rated it as a “hold.”
Should Investors Worry about ConocoPhillips’s Increased Debt Load?
As of September 30, 2016, ConocoPhillips’s (COP) total debt stood at ~$28.7 billion.
US Crude Oil Is near a 3-Year High
On March 21, 2018, US crude oil May futures rose 2.6% and closed at $65.17 per barrel.
Why Loeb Cut Exposure to Netflix, Microsoft, and Alibaba in Q4
In its third-quarter letter to investors, Third Point told investors that it reduced its “tech exposure meaningfully.”
Could ConocoPhillips Report Higher Profits in Q2 2018?
ConocoPhillips (COP) plans to report its Q2 2018 earnings on July 26. Its consensus net income estimate is ~$1.18 billion.
What Are the Key Drivers for Devon Energy’s Stock?
In this final part, we’ll study Devon Energy’s (DVN) stock price movement with respect to energy prices, the US dollar index, and the broader market.
PDC Energy’s 2Q15 Net Income Plummets after Spiking in 4Q14
In 2Q15, PDC Energy recorded a $47 million adjusted net loss. In 1Q15, it recorded $17 million in net income. Its 4Q14 net income of $132 million was the highest in the past 13 quarters.
S&P 500 Stocks: Analysts Bullish on Diamondback
Diamondback Energy (FANG) has the second-highest percentage of “buy” ratings among the constituents of the S&P 500 Index (SPY). Here’s why.
Will Carl Icahn’s Fears Come True in October?
Carl Icahn’s fears could come true in October. According to Goldman Sachs, the market might exhibit higher volatility next month.
Analyzing the Top 5 MLPs That Analysts Recommend
In this article, we’ll look at five MLPs with at least 90% buy ratings: EPD, MPLX, Energy Transfer, Viper Energy Partners, and Black Stone Minerals.
Analyzing the EIA’s Oil Inventory Data and Key Spreads
Since the EIA released its inventory data last Wednesday, US crude oil August futures have risen 0.6%.
Why Diamondback Energy Has Been an Outperformer This Quarter
Despite a higher correlation, FANG’s stock prices were insulated from the fall in US crude oil prices to a larger extent. On May 7, FANG reported its Q1 2019 earnings results, and on the next trading day, FANG stock rose 7.7% and extended its gains in the subsequent trading days.
ConocoPhillips Might Have the Most Moderate Upside
ConocoPhillips (COP) might have an upside of 8.9% in the next 12 months based on analysts’ mean target price.
Devon Energy: Analysts Expect More than 70% Upside
Devon Energy (DVN) might have an upside of 75.1% in the next 12 months based on analysts’ mean target price.
Analysts Still Bullish on Permian-Based Upstream Stocks
In this series, we’ll look at the top seven upstream companies that Wall Street analysts like the most.
Diamondback Energy’s Pro Forma Permian Production versus Peers
Diamondback Energy expects its 2018 production to lie between 115.0 Mboepd and 119.0 Mboepd.
Will EOG Resources Report Higher Profits in Q2 2018?
EOG Resources (EOG) is expected to report its second-quarter earnings results after the market closes on August 2.
VNOM and BSM: A Comparative Analysis of Two Mineral Interest MLPs
In this series, we’ll perform a comparative analysis of Viper Energy Partners (VNOM) and Black Stone Minerals (BSM).
Will Devon Energy Report Higher Profits in Q2 2018?
Devon Energy (DVN) is expected to report its Q2 2018 earnings on July 31 after the market closes. Here’s what you need to know.
Rising Permian Production Has Been Straining Price Differentials
The Midland-WTI crude oil price differential and the Waha–Henry Hub natural gas price basis differential have widened since the beginning of 2018.
US Tight Oil Growth Driven by Increasing New Well Productivity
According to the EIA (U.S. Energy Information Administration), US tight oil production has increased in part due to the increasing productivity of new wells.
CXO, SM, FANG, NBL, and SRCI’s Stock Performances
SRC Energy (SRCI) was clearly the outperformer among its peers. SRC Energy has risen 78% YoY (year-over-year).
Upstream Companies with the Highest Operating Margins
In the first quarter, Concho Resources (CXO) reported operating margins of ~108%—compared to 173% in the first quarter of 2017.
Analyzing XEC, PXD, FANG, PVAC, and EOG’s Stock Prices
Penn Virginia has risen ~48.2% YoY. EOG Resources and Diamondback Energy have increased ~37% and 33.8%, respectively, during the same period.
Will There Be More Upside in the Oil Rig Count?
In the week ending May 4, the oil rig count rose by nine to 834—the highest level in more than three years.
Oil Rig Count: Is More Upside Possible?
In the week ending April 20, the oil rig count rose by five to 820—the highest level in more than three years.
Why the Oil Rig Count Could Concern Energy Investors
In the week ending March 30, 2018, the oil rig count fell by seven to 797. US crude oil prices and the oil rig count usually move in a pattern.
Comparing Stock Performance: LPI, EQT, FANG, SRCI, and CXO
Stock performance In this part, we’ll compare Laredo Petroleum’s (LPI), EQT’s (EQT), Diamondback Energy’s (FANG), SRC Energy’s (SRCI), and Concho Resources’ (CXO) stock performance. As we saw in the previous part, these stocks reported the widest net profit margins in fiscal 2017. Outliers and underperformers Diamondback Energy (FANG) outperformed its peers, rising 27% YoY (year-over-year). Meanwhile, […]
These Upstream Companies Had the Widest Net Margins in 2017
Top five upstream companies based on net margins Let’s now look at the five upstream companies with the widest net profit margins in fiscal 2017. Profit margins are helpful in gauging a company’s profitability and operational efficiency. Profit margin growth shows that a company is increasing its operational efficiency and making more money on each unit […]
Performance Comparison: FANG, XEC, PVAC, PXD, and NFX
Stock performance In this part, we’ll look at the stock performance of Diamondback Energy (FANG), Cimarex Energy (XEC), Penn Virginia (PVAC), Pioneer Natural Resources (PXD), and Newfield Exploration (NFX). These stocks reported the highest earnings per share in fiscal 2017, as we discussed in Part 3. Outliers and underperformers As shown above, Diamondback Energy (FANG) outperformed […]
These Upstream Companies Reported the Highest Earnings in 2017
Top five upstream companies based on earnings In this part, we’ll look at the five upstream companies with the highest adjusted EPS (earnings per share) in fiscal 2017. The top five were Diamondback Energy (FANG), Cimarex Energy (XEC), Penn Virginia (PVAC), Pioneer Natural Resources (PXD), and Newfield Exploration (NFX). Diamondback Energy Diamondback Energy reported adjusted EPS of $5.18 in fiscal […]
Some Energy Stocks Gained More than Oil Last Week
Tallgrass Energy Partners (TEP) was the fourth-highest gainer on our list of energy stocks last week.
Where Southwestern Energy Could Trade in the Next Year
The median target price on Southwestern Energy stock is $7.00, which is ~73% higher than its closing price of $4.05 on February 2.
Are Institutional Investors Accumulating CNX Resources Stock?
In 4Q17, 135 funds were buyers of CNX Resources (CNX) stock, and 112 funds were sellers.
CNX Resources: Pre-Earnings Wall Street Ratings
As of January 30, 2018, Reuters reported 13 analysts having recommendations on CNX Resources (CNX) stock. Of those, 25% have given it a “strong buy” recommendation.
What Does Wall Street Predict for WPX Energy?
In the last one month, WPX Energy stock’s median target price has risen from $16.00 to $16.50.
What Wall Street Analysts Predict for ConocoPhillips
On November 24, 2017, of the 21 analysts covering COP, 28.6% recommended a “strong buy,” 42.9% recommended a “buy,” while the remaining 28.6% recommended a “hold.”
A Deep Drill into Occidental Petroleum’s 3Q17 Operational Performance
For 4Q17, Occidental Petroleum expects total production of 633–641 Mboepd, ~5% higher than its 3Q16 production of 607 Mboepd.
Where Wall Street Thinks Southwestern Energy Could Trade in a Year
On October 5, 2017, ~29.4% of analysts covering Southwestern Energy (SWN) gave “strong buy” or “buy” recommendations on the stock.
How Encana Stock Has Performed This Year
Year-to-date, Encana’s (ECA) stock has fallen ~19% to $9.53. The stock is trading below its 50-week and 200-week moving averages.
Devon Energy: Analysts’ Ratings after Its 2Q17 Earnings
As of August 2, eight analysts rated Devon Energy as a “strong buy,” 14 analysts rated it as a “buy,” and 12 analysts rated it as a “hold.”
Chart in Focus: ConocoPhillips’s Operating Netback
What is the operating netback? The operating netback (also referred as production netback) is oil and gas revenue realized per boe (barrel of oil equivalent) after all costs to bring one boe to the market are subtracted from the realized price. The operating netback is derived by subtracting production expenses (or field operating expenses), production taxes, […]
Marathon Oil’s Stock Outperformed Crude Oil and Peers Last Week
Last week, natural gas and crude oil producer Marathon Oil’s stock price outperformed crude oil prices, declining marginally from $12.54 to $12.52.
Devon Energy’s Operating Netbacks
In 1Q17, Devon Energy’s (DVN) reported operating netback was ~$16.68 per boe (barrel of oil equivalent), which is ~178% higher than in 1Q16.
Can Occidental Petroleum Report Net Profit in 1Q17?
For 1Q17, the current consensus EPS estimate for Occidental Petroleum (OXY) is $0.07 per share, based on an adjusted net income of ~$71 million.
Will Cobalt International Energy Reduce Net Losses in 1Q17?
Cobalt International Energy (CIE) is set to report its 1Q17 and 2016 earnings on May 1, 2017. Analysts expect it to report EPS of -$0.17 to -$0.04.
What Does MRO’s Implied Volatility Forecast for Its Stock Price?
On April 13, 2017, Marathon Oil (MRO) had an implied volatility of ~40.2%, ~20.8% lower than its 260-trading-day historical price volatility of ~50.8%.
Devon Energy’s Stock Price Range Forecast for the Week
As of March 30, 2017, Devon Energy had an implied volatility of ~32.2%, which is ~25.6% below its 260-trading day historical price volatility of ~43.2%.
Analyzing Marathon Oil’s Pro Forma Permian Details
On March 9, 2017, Marathon Oil acquired ~70,000 Permian net acres from BC Operating. On a pro forma basis, its Permian acreage will be ~91,000.
Encana’s Quarterly Production Hit a 2-Year Low
For fiscal 2016, Encana (ECA) reported production of 352.7 Mboepd (thousand barrels of oil equivalent per day), which is above the mid-point of its production guidance range of 340–360 Mboepd.
Marathon Oil’s Lease Operating Expense Guidance
North American exploration and production In August 2016, Marathon Oil (MRO) reduced its fiscal 2016 LOE (lease operating expenses) guidance for its North American E&P (exploration and production) operations by $1 per boe (barrel of oil equivalent) to $6–$7 per boe. In the first nine months of 2016, Marathon Oil’s LOE for North American E&P […]
Could Marathon Oil Have Reduced Net Losses in 4Q16?
Marathon Oil (MRO) is set to report its 4Q16 and fiscal 2016 earnings on February 15, 2017. For 4Q16, excluding one-time items, the current consensus earnings per share estimate for Marathon is -$0.15.
Could Devon Energy Beat 4Q16 Earnings Estimates?
Devon Energy (DVN) is set to report its 4Q16 and fiscal 2016 earnings on February 14, 2017, after the market closes.
Marathon Oil’s Debt Load Matters
For 3Q16, Marathon Oil (MRO) reported total debt of ~$197 per boe (barrel of oil equivalent) of production, which was ~4% lower than in with 3Q15.
Understanding Marathon Oil’s Profitability Metrics in 3Q16
Marathon Oil (MRO) reported an operating income of about -$203 million in 3Q16, up from about -$1.1 billion in 3Q15.
Can ConocoPhillips Reduce Net Losses in 4Q16?
In its 3Q16 earnings release in October 2016, ConocoPhillips reported negative but sequentially higher adjusted net income in 3Q16 compared to 2Q16.
Can Consol Energy Report a Profit in 4Q16?
For 4Q16, excluding any one-time items, Wall Street analysts expect Consol Energy (CNX) to report EPS (earnings per share) of -$0.15–$0.13 per share.
How Did ConocoPhillips’s Profitability Metrics Look in 3Q16?
In 3Q16, ConocoPhillips reported higher operating income on a year-over-year basis.
Devon Energy’s Stock Price Range Forecast for the Week
Devon Energy’s implied volatility As of January 20, 2017, Devon Energy (DVN) had implied volatility of ~33.1%, which is ~42.4% below its 260-trading day historical price volatility of ~57.6%. Stock price range forecast for the week Assuming a normal distribution of prices and standard deviation of one, based on its implied volatility of ~33.1%, Devon […]
Murphy Oil’s Profitability Metrics: Analyzing 4Q16 Estimates
For 4Q16, excluding any one-time items, Wall Street analysts expect Murphy Oil to report higher net income on a YoY and sequential basis.
What’s Marathon Oil’s Price Range Forecast for the Week?
As of January 13, 2017, Marathon Oil (MRO) had an implied volatility of ~40.3%, which is ~39.0% below its 260-day historical price volatility of ~66.1%.
Here’s Why Crude Oil Prices Move ConocoPhillips Stock
Almost 67.0% of COP’s E&P revenues came from crude oil and bitumen sales. COP stock has a stronger correlation with crude oil prices.
Analyzing PDC Energy’s 3Q16 Production
In 3Q16, PDC Energy reported total production of ~65.3 Mboepd, ~39% higher compared to its total 3Q15 production of ~47 Mboepd.
Charts in Focus: CRC’s 3Q16 Production Costs and Margins
Excluding hedges, in 3Q16, California Resources (CRC) reported a positive cash margin and a negative total margin.
Chart in Focus: DVN’s Debt Normalized to Its Quarterly Production
In 3Q16, Devon Energy (DVN) reported total debt of ~$214 per boe (barrel of oil equivalent) of production, ~12% higher compared to 3Q15.
Chart in Focus: Marathon Oil’s Lifting Costs
In 3Q16, Marathon Oil’s (MRO) reported a lifting cost of ~$9.03 per boe (barrel of oil equivalent), which is ~9% lower than in 3Q15.
What Were W&T Offshore’s Production Costs and Margins for 3Q16?
Excluding hedges, in 3Q16, W&T Offshore (WTI) reported a positive cash margin but a negative total margin.
What Is Stone Energy’s Oil and Gas Revenue Mix?
In 3Q16, Stone Energy’s (SGY) operating revenue from crude oil (USO), natural gas (UNG), and natural gas liquids sales totaled ~$93 million.
Analyzing Recent Acquisitions in the Oil and Gas Industry
Recent acquisitions in the oil and gas industry In 2016, many upstream companies with strong balance sheets acquired low-cost acreage across different resource plays. In this part, we’ll study the acquisitions by S&P 500 companies Range Resources (RRC), EOG Resources (EOG), and Occidental Petroleum (OXY). Range Resources acquired Memorial Resource Development On May 17, 2016, […]
ConocoPhillips’s Production Mix Strategy for 2017–2018
ConocoPhillips’s (COP) current production mix is ~50% oil, ~10% natural gas liquids, ~22% international natural gas, and ~18% North American natural gas.
Understanding EOG Resources’ Cash Operating Cost Reduction in 2016
For first nine months of 2016, EOG Resources reported cash operating costs of $12.16 per boe, which is about 14% lower than its $14.11 per boe in 2015.
Denbury Resources’ Cash Operating Cost Reductions in 2016
For the first nine months of 2016, Denbury Resources reported cash operating costs of $33.31 per boe, ~8% lower than its 2015 cash operating costs of $36.16 per boe.
Marathon Oil’s Lease Operating Expenses in 3Q16
In 3Q16, Marathon Oil (MRO) reported North America LOE of $5.70 per boe (barrel of oil equivalent), which is ~23.0% less than 3Q15.