iShares North American Natural Resources

On February 15, 2018, approximately 92% of the Wall Street analysts tracking Halliburton rated it a “buy” or some equivalent.

Halliburton’s operating cash flow Between 4Q16 and 4Q17, Halliburton’s (HAL) CFO (cash from operating activities) deteriorated marginally by 5%, to $1.01 billion from $1.06 billion. Although HAL’s revenue increased, adverse changes in working capital led to its CFO falling in 4Q17. Halliburton makes up 2.4% of the iShares North American Natural Resources ETF (IGE). Since February […]

Halliburton’s net debt Between 4Q16 and 4Q17, Halliburton’s (HAL) total debt decreased 12%, while its cash and marketable securities decreased 42%. In effect, its net debt increased 3% to ~$8.6 billion. Although HAL’s total debt decreased, a steep decline in its cash and marketable securities prevented a fall in net debt. Net debt is aggregate short- and […]

Halliburton’s net debt In 3Q17, Halliburton’s (HAL) total debt fell 11% from the year prior, while its cash and marketable securities fell 42%. Its net debt remained at ~$9.0 billion. Despite a decrease in total debt, a steep decline in cash and marketable securities prevented any sharp fall in HAL’s net debt. Is HAL’s credit rating changing? Moody’s maintained Halliburton’s […]

Nabors Industries’ (NBR) cash from operating activities (or CFO) turned negative in 3Q17, compared to a positive CFO a year ago.

In this article, we’ll look at Wall Street analysts’ recommendations for TechnipFMC (FTI) on November 9.

National Oilwell’s valuation, expressed as the TTM PE (price-to-earnings) multiple, isn’t available due to its negative adjusted earnings.

On September 5, 2017, 89.0% of Wall Street analysts who are tracking Halliburton stock rated it a “buy” or some equivalent.

Halliburton’s (HAL) CFO (cash from operating activities) in 2Q17 showed a remarkable improvement over 2Q16. HAL’s CFO was a $346 million in 2Q17.

In 2Q17, Halliburton’s (HAL) total debt fell 14% from 2Q16, while its cash and marketable securities fell 31%.

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

Chesapeake Energy stock (CHK) has fallen for most of this year. It picked up slightly in April but wasn’t able to hold those levels.

Nabors Industries’ PE multiple was not meaningful in 2015 and 2016 as a result of negative adjusted earnings during this period.

Nabors Industries’ (NBR) CFO (cash from operating activities) turned positive in 2Q17, compared with its negative CFO in 1Q17.

On July 18, 2017, Cabot Oil & Gas’s (COG) short interest ratio was ~4.7%. At the beginning of the year, its short interest ratio was 4.2%.

On March 31, 2017, Nabors Industries (NBR) stock was 20.0% lower than it was on December 30, 2016. In 1Q17, NBR’s adjusted earnings were negative.

Nabors Industries’ (NBR) cash from operating activities (or CFO) turned negative in 1Q17, compared to its positive CFO a year earlier.

On June 12, 92% of the analysts tracking Halliburton rated it as a “buy,” ~3% of the analysts rated it as a “sell,” and the other 5% rated it as a “hold.”

Halliburton’s cash from operating activities (or CFO) in 1Q17 was an improvement over 1Q16, although it was a steep deterioration compared to 4Q16.

In 1Q17, Halliburton’s (HAL) total debt fell 29% compared to a year earlier, while its cash and marketable securities fell 78%.

Schlumberger’s EBITDA margin was impacted negatively as upstream companies slashed their budgets. From 1Q16 to 1Q17, Schlumberger’s EBITDA margin fell.

Marathon Petroleum’s correlation with WTI stands at 0.34. This value shows that the two have a positive but relatively weak correlation.

On April 19, Cabot Oil and Gas’s short interest as a percentage of its float was ~4.5%. At the beginning of the year, its short interest ratio was 4.2%.

MPC’s operating income rose 64% YoY to $553 million in 4Q16. The Refining segment’s operating income rose to $219 million in 4Q16 from $179 million in 4Q15.

The implied volatility of Valero Energy (VLO) stock now stands at 24%. This level is equal to VLO’s 30-day average implied volatility.

The correlation coefficient between VLO and WTI stands at 0.08.

Short interest in Continental Resources’ stock On April 4, 2017, Continental Resources’ (CLR) short interest as a percentage of its float (or its short interest ratio) was ~22.8%. Its short interest ratio on December 30, 2016, was 21.5%. CLR closed at $51.54 on December 30, 2016, and $46.20 on April 4, 2017. Peers Concho Resources […]

Refining stocks’ implied volatilities have witnessed falls in 1Q17. Marathon Petroleum’s (MPC) implied volatility fell 7% to 27.9% from January 2 to March 31, 2017.

On March 24, 92% of the analysts tracking Halliburton rated it as a “buy,” ~5% rated it as a “hold,” and 3% rated it as a “sell.”

Chevron’s refining capacity Before we analyze Chevron’s (CVX) refining margin trends, le’s quickly look at its refining capacity. Chevron’s total refining capacity stands at 1.8 MMbpd (million barrels per day). Most of Chevron’s capacity, around ~1 MMbpd, is in the United States. In the international arena, Chevron has combined refining capacity of 0.3 MMbpd in South […]

On March 14, 2017, Cabot Oil and Gas’s (COG) short interest as a percentage of its float (or its short interest ratio) was ~3.5%.

Cabot Oil and Gas’s (COG) current implied volatility is ~36.4%, ~3% lower than its 15-day average of 37.4%.

In this article, we’ll analyze how Halliburton’s (HAL) operating cash flows have trended over the past few quarters. We’ll also discuss its free cash flow (or FCF).

Valero’s Midcon crack indicator rose to $11.90 per barrel in 1Q17 from $10.90 per barrel in 4Q16.

ExxonMobil (XOM) produced 4.1 MMboepd (million barrels of oil equivalent per day) from its worldwide operations in 4Q16.

Marathon Petroleum’s implied volatility currently stands at 28%—the highest level among peers Valero, Tesoro, and Phillips 66.

On March 2, 2017, Marathon Petroleum’s 90-day beta stood at 2.0—the highest among peers Valero, Tesoro, and Phillips 66.

On February 24, ~14% of the analysts tracking National Oilwell Varco rated it as a “buy,” ~74% rated it as a “hold,” and 12% rated it as a “sell.”

In the past couple of years, some major US upstream and integrated companies have reduced their capital expenditures (capex) following crude oil’s sharp fall.

The correlation coefficient of Marathon Petroleum and WTI stands at 0.35—a positive but feeble correlation.

On February 13, 2017, Nabors Industries (NBR) had an implied volatility of 43%.

In the past couple of years, some of the major US upstream and integrated companies have reduced capital expenditure following crude oil prices’ sharp decline.

Implied volatility in Royal Dutch Shell (RDS.A) currently stands at 16%, which is the highest compared to peers ExxonMobil (XOM), Chevron (CVX), and BP (BP).

Six analysts gave ExxonMobil a “buy” rating, 13 analysts gave it a “hold” rating, and seven analysts gave it a “sell” rating after its 4Q16 earnings.

Marathon Petroleum’s (MPC) operating income fell 72% over 3Q15 to $435 million in 3Q16.

Chevron’s (CVX) Downstream segment saw its earnings fall 52% YoY to ~$1.1 billion in 3Q16.

ExxonMobil (XOM) produced 3.8 MMboepd (million barrels of oil equivalent per day) from its worldwide operations in 3Q16.

Crude oil prices have witnessed an uptrend in 2016, recovering from their downfall in 2015. Prices saw weakness in mid-August 2016, but since September 20, 2016, they’ve risen 22%.

ExxonMobil (XOM) has found oil in the Payara-1 Well in the Stabroek Block, positioned 120 miles offshore Guyana. This is the company’s second discovery in the block.

After its production update news, Petrobas’s forward PE and EV-to-EBITDA stood at 18.7x and 6.3x, respectively.

The correlation coefficient of Valero (VLO) and WTI stands at 0.15. The correlation value for Valero’s stock and oil price show that they have a positive but feeble correlation.

On January 6, 2017, ~70% of the analysts tracking SPN recommended a “buy” or some equivalent for the stock, while ~30% of the analysts issued a “hold.”

Callon Petroleum (CPE) has been focusing on strengthening its Permian position—specifically, on ramping up its rig count in 2016 and 2017.

Callon Petroleum (CPE) is an independent exploration and production company with operations focused entirely in the Permian—a pure-play Permian company.

On January 3, 2017, 90% of the analysts tracking Halliburton (HAL) rated it a “buy” or some equivalent.

After MPC proposed the dropdown plan, MPC’s forward price-to-earnings (or PE) and EV-to-EBITDA stood at 15.7x and 8x, respectively.

In December so far, 90% of the analysts tracking Halliburton rated it a “buy” or some equivalent.

Halliburton’s cash from operating activities (or CFO) turned positive in 3Q16.

On December 13, 2016, Continental Resources’ (CLR) short interest as a percentage of its float (or its short interest ratio) was ~23.4%.

On December 12, 2016, Chevron (CVX) was rated by a total of 26 analysts, 17 of whom assigned “buy” or “strong buy” ratings on the stock.

Bill Barrett (BBG) has been focusing on lowering costs in the Denver-Julesburg (or DJ) Basin. LOE (lease operating expenses) for 3Q16 was $2.45 per boe.

In 3Q16, BP’s total debt-to-capital ratio stood at 38.9%, higher than the industry average of 36%. Its net debt-to-adjusted EBITDA ratio rose from 0.77x in 3Q14 to 2.3x in 3Q16.

BP (BP) plans to rebalance its sources and uses of cash by 2017 at an oil price level of $50–$55 per barrel.

In November, 34% of the analysts tracking FMC Technologies rated it a “buy,” ~55% rated it a “hold,” and only 3% of the analysts rated it a “sell.”

Now, let’s analyze the refining margin indicators published by Valero Energy (VLO). These indicators point toward VLO’s likely margin trend in 4Q16.

Marathon Petroleum’s (MPC) implied volatility currently stands at 37%, the highest among its peers.

In November, 83% of the analysts tracking Schlumberger rated it a “buy” or some equivalent. The other 18% of the analysts recommended a “hold” or a “sell.”

Cabot Oil & Gas’s stock price momentum has slowed, but its stock has recently been rising, mirroring natural gas prices.

2016 has been good for natural gas prices (UGAZ). Prices have risen ~34% year-over-year.

Phillips 66’s adjusted EBITDA from its Marketing segment fell 22% from 3Q15 to $429 million in 3Q16 due to weaker marketing margins and lower volumes.

After Elliott Management’s recommendations, Marathon Petroleum’s forward EV-to-EBITDA multiple stood at 23.1x.

In this article, we’ll look at Tesoro’s (TSO) and Western Refining’s (WNR) valuations following the news of TSO’s acquisition of WNR.

XOM trades at 8.3x forward EV-to-EBITDA and 21.2x forward price-to-earnings, both above its peer averages.

National Oilwell Varco’s TTM PE (price-to-earnings) multiple of ~15x is lower than its peer average in the group.

Refining margins are dependent on input crude oil cost, product slate, and prices of refined products and are indicators of overall profitability.

Shell’s highest and lowest 12-month price targets stand at $66 and $53. It indicates a 27% and 2% rise from its current levels, respectively.

Total’s net adjusted operating earnings from the Upstream segment fell 21% from 3Q15 to $877 million in 3Q16 due to lower crude oil prices.

An analyst survey shows that six out of eight companies surveyed rated Suncor Energy (SU) an “overweight” or “outperform.”

According to MPC, a dollar-per-barrel change in the blended LLS 6-3-2-1 crack spread affects its annual net income by $450 million.

Eight of the 11 firms rated Valero as a “buy,” “overweight,” or “outperform,” with a high 12-month price target of $73, indicating a potential 35% gain.

Delek US Holdings will be transformed if it succeeds in the acquisition of the remaining stake in Alon USA Energy.

Royal Dutch Shell (RDS.A) has witnessed a 56% rise in its short interest volumes since June’s end in 2016.

Falling crude oil prices have changed the segmental dynamics within integrated energy companies such as Royal Dutch Shell (RDS.A).

ExxonMobil’s (XOM) implied volatility rose from 16.7% on September 19, 2016, to 18% on September 20, 2016.

In a bid to foster its biofuels business, Tesoro (TSO) has agreed to acquire Virent. The company is expected to operate as Tesoro’s wholly owned subsidiary.

ExxonMobil (XOM) trades at an 8.1x EV-to-EBITDA multiple and a 20.2x price-to-earnings ratio, both above its peers’ averages.

A steeper earnings decline compared to the decline in its share price caused Halliburton’s (HAL) PE multiple to expand in 2015.

HAL’s capex declined 59% in the past one year until 2Q16. Lower capex, however, couldn’t offset its CFO shrinkage.

The correlation coefficient of Marathon Petroleum (MPC) and WTI stands at 0.34. The correlation value for MPC’s stock and oil price show that they have a positive but feeble correlation.

Analysts’ ratings for BP (BP) show that 31% of those covering the stock rate it as a “buy,” and 61% rate it as a “hold.”

Core Laboratories expects onshore energy production to fall by the end of 2016 and net production of legacy deepwater projects to offset onshore declines.

Nine out of the ten companies surveyed rated Royal Dutch Shell (RDS.A) a “buy,” “overweight,” or “outperform.”

Changing oil prices have changed the dynamics for Total’s segments. Although upstream earnings have declined in 2Q16 YoY, they stayed positive in the quarter.

Analyst surveys show that eight of the nine analysts surveyed rated Suncor (SU) a “buy,” “overweight,” or “outperform.”

Marathon Petroleum’s (MPC) refining segment’s operating income plunged to -$62 million in 1Q16 due to a fall in its gross refining and marketing margin.

The correlation value for Valero stock and the price of oil shows they have a positive but feeble correlation. Valero stock moves in line with WTI prices only to a certain extent.

CLB’s internal cash generation hasn’t been adequate. In 2015, its internal sources of funds as a percentage of external fund requirements was 37%.

Integrated energy companies such as ExxonMobil (XOM) are affected by volatility in crude oil prices. To what degree? This varies from company to company.

Shell’s upstream segment earnings, which were -$195 million in 1Q15, fell further to -$1.4 billion in 1Q16, excluding identified items.

Shell has witnessed a 49% fall in its short interest volumes since February 10, 2016. This indicates that the bearish sentiment for the stock is weakening.