iShares US Energy

On October 27, Antero Resources Corporation announced the initial public offering of Antero Midstream Partners LP.

Antero Resources’ current acreage is focused in the Marcellus Shale in West Virginia and the Utica Shale in Ohio.

Cheniere Energy, Inc.’s MLP company’s Sabine Pass liquefaction project has already secured four fixed-price, 20-year sales and purchase agreements with third parties.

Chevron Corporation is currently trading at EV-to-2014E EBITDA of 5x, has an approximately $239 billion market cap, and ~$245 billion enterprise value.

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.

The EIA estimates that Iran’s crude oil production was flat at 3.81 MMbpd in April 2017—compared to March 2017. Production rose 8.8% YoY.

Analysts estimate that Cushing inventories could have declined on March 2–9. The EIA is scheduled to release its crude oil inventories report on March 14.

In 4Q15, according to Wall Street analyst estimates, Valero is expected to post EPS of $1.40, which would be 23% lower than its 4Q14 adjusted EPS.

Noble Corporation’s (NE) contract drilling revenue was $354.0 million in 1Q17 compared to $591.0 million in the same period last year.

Despite COG’s recent negative stock market movement, the fact that it was able to hold its own and sustain significant levels of production should ensure that it maintains relatively high stock market returns.

What are Schlumberger’s views on North America?  Schlumberger (SLB) expects the North American onshore market to continue to improve in 2017. In Schlumberger’s 1Q17 earnings press release, chairman and CEO Paal Kibsgaard stated that “at present, the region in the world showing clear signs of increased E&P[1.exploration and production] investments in 2017 is North America […]

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.

Short interest in Schlumberger (SLB) stock as a percentage of its float was ~1.2% on March 3, 2017, a marginal fall compared to December 30, 2016.

Total (TOT), an integrated energy major, has three main segments: upstream, refining and chemicals, and marketing and services.

Regional chemical margins where Royal Dutch Shell’s (RDS.A) chemical operations are carried out are indicators of Shell’s chemical margins.

In its weekly Petroleum Status Report released on Thursday, the EIA announced a decrease of 2.8 MMbbls in crude oil inventories for the week ending May 22.

Rate cut transmissions by commercial banks, inflation, and monetary policy actions by the Fed will have the largest influence on India’s future.

Although not considered safe haven assets, in the current context of high geopolitical risk and consequently volatility, investors could consider investing in sectors like energy and large cap companies.

The RBI had headroom to make a further rate reduction in August, but then the bank resisted, citing the rise in core inflation.

After analyzing BP’s (BP) 2Q15 performance by segment, we’ll now discuss its year-to-date (or YTD) revenues and earnings.

On Friday, August 29, prices closed at $95.96 per barrel. On Tuesday, prices dropped to $92.88—a 3% decrease. On Wednesday, prices came back to $95.54 per barrel, again ~3% higher than the previous day’s market close.

Devon plans to rapidly grow production in the Eagle Ford over the next few years.

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.

Valero’s total refining capacity is 3.0 MMbpd (million barrels per day), of which 1.7 MMbpd is located in the US Gulf Coast.

November WTI (West Texas Intermediate) crude oil futures contracts rose 1.4% to $51 per barrel in electronic trade at 5:20 AM EST on October 19, 2016.

A Reuters survey estimates that Libya’s crude oil production rose by 50,000 bpd to 930,000 bpd in September 2017—compared to the previous month.

April gasoline futures fell 2.4% to $1.65 per gallon on March 8, 2017. Prices fell despite the massive fall in US gasoline inventories.

Wall Street’s forecasts for Halliburton include ~76% of analysts rating the company as a “buy” or some equivalent.

Crude oil prices were $54.1 per barrel on December 28—the highest since July 14, 2015. As of January 16, 2017, crude oil prices are 3.4% below their highs.

Exxon Mobil has three major business segments: Upstream, Downstream, and Chemical. Upstream contributes the most to XOM’s earnings.

Of the 32 analysts covering Ensco (ESV), 44% recommend a “buy” or equivalent for the stock.

On February 9, 2017, US crude oil futures contracts for March delivery closed at $53.00 per barrel—an ~1.3% rise compared to the previous trading session.

Cushing crude oil inventories have fallen 10% in the last ten weeks. A better-than-expected fall in Cushing inventories could support US crude oil prices.

Cheniere Energy, Inc., is a Houston-based energy company engaged in the liquefied natural gas business.The Sabine Pass liquefaction project is one of the first projects to receive the necessary government permits to export liquefied natural gas.

Crude oil prices fell due to the API’s bearish crude oil inventory report. Prices have been trading between $50 per barrel and $54 per barrel since January.

US crude oil refinery inputs averaged 17.029 million barrels per day (or MMbpd) during the week ended August 7.

The US is the world’s third-largest crude oil producer. US crude oil production rose by 15,000 bpd to 9,320,000 bpd on May 12–19, 2017.

October US crude oil futures contracts fell 0.3% to $46.31 per barrel in early electronic trading on August 30, 2017.

But XOM managed to generate positive segment revenue and earnings in 2016, which places XOM in a better position than CVX for dividend chasers.

Cushing crude oil inventories have fallen for the ninth time in ten consecutive weeks. Any fall in Cushing inventories is bullish for crude oil prices.

Industrials, utilities, and telecommunications have much higher leverage, as these sectors have massive capital needs.

Hedge funds increased their net long positions in US crude oil futures and options by 43,861 contracts or 18.4% to 282,362 contracts on July 25–August 1.

On July 2, a Reuters survey showed that OPEC’s crude oil production increased by 320,000 bpd (barrels per day) to 32,320,000 bpd in June.

Saudi Arabia’s crude oil production increased by 60,000 bpd to 10,120,000 bpd in May—compared to the previous month.

On June 11, US crude oil July futures rose 0.5% and settled at $66.10 per barrel.

Reuters estimates that Saudi Arabia’s crude oil production increased by 700,000 bpd to 10,700,000 bpd in June—compared to the previous month.

In 3Q15 and 4Q15, Total’s valuation was higher due to lower EBITDA (earnings before interest, tax, depreciation, and amortization) and cash flows.

US crude oil production rose 0.3% week-over-week and 5.3% year-over-year. US crude oil production is near the highest level since August 21, 2015.

It’s very apparent that the historical beta of XOP is higher than that of its peers, as it’s closer to 1.6 than the average of 1.2.

As of January 11, 2017, Petrobras (PBR) has been rated by 18 analysts. Four of them rated the company a “buy” or “strong buy.”

Despite development of factors that could have lended support to WTI oil prices, oil prices failed to recover and in fact were trading close to $86 on Thursday.

So far, crude oil prices and broader markets such as the S&P 500 (SPY) (SPX-INDEX) are diverging in 2017. SPY has risen 4% YTD (year-to-date).

Iraq is home to the fifth-largest oil deposits in the world and currently produces about 4% of the global oil supply. Iraq is now the second-biggest producer in the OPEC exporters’ cartel, after Saudi Arabia.

Occidental Petroleum Corporation (OXY) engages in oil and gas exploration and production in the U.S., Latin America, and the Middle East.

Due to its superior performance, Wall Street expects YPF to fetch the highest returns over the next 12 months among other integrated energy companies.

November WTI (West Texas Intermediate) crude oil futures contracts rose 0.32% to $50.97 per barrel in electronic trade at 5:10 AM EST on October 12, 2016.

September US crude oil prices are on a rollercoaster ride in 2017 due to bullish and bearish drivers. US crude oil prices are near a two-month high.

It’s important to note that ~69% of analysts tracking EOG Resources rate it a “buy” or some equivalent, while ~24% rate the company a “hold.”

According to the EIA, global crude oil supply outages increased by 208,000 bpd or 14% to 1,738,000 bpd in December 2017—compared to November 2017.

Carl Icahn mentions the use of credit default swaps as a form of protection against credit events. He implies that investors should possess sophisticated knowledge of the fixed income markets to enter that playing field.

Transocean’s drilling revenue for 1Q16 was $1.34 billion, ~28% lower than the $1.85 billion in 4Q15 and 34% lower than the $2 billion in revenue in 1Q15.

Of the 34 analysts covering Transocean, 44% recommend a “buy” or some equivalent for the stock, while 32% recommend a “hold.”

On April 28, 2017, the Ministry of Energy of Russia said the country’s oil production fell 300,000 bpd to meet the targeted production cut in April 2017.

US crude oil production rose by 290,000 bpd (barrels per day) or 3.1% to 9,481,000 bpd in September 2017—compared to the previous month.

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.

Hess Corp. is one of the largest companies to operate in the Bakken, and it has stated that the area will be the primary driver of its production growth for 2013–2017.

Revenues for Denbury Resources Inc. (DNR) have almost doubled in the six years to 2014. They rose from ~$1.3 billion in 2008 to ~$2.4 billion in 2014.

Majority recommends “sell” Currently, 28 analysts give recommendations on Seadrill (SDRL). Of these, none have given a “buy” recommendation on the stock. Six analysts have given a “hold” recommendation, and 22 have a “sell” recommendation. The consensus target price is $1.78, which implies a downside of 17%. Like Seadrill, Ocean Rig (ORIG) does not have […]

The EIA (U.S. Energy Information Administration) reported that US crude oil production rose by 13,000 bpd (barrels per day) to 9,265,000 bpd on April 14–21.

On December 28, the API released its weekly crude oil inventory report. US crude oil inventories rose by 4,200,000 barrels from December 16–23, 2016.

The continued oil price drop, coupled with the impact of Western sanctions that are fueling inflation in the economy, is wreaking havoc on Russia’s economy.

Schlumberger’s (SLB) management expects its capital spending in the North American onshore market to improve in 2017.

A Bloomberg survey estimates that US crude oil inventories could have risen by 3 MMbbls from March 3–10. US crude oil inventories are at an all-time high.

A Reuters survey estimates that Saudi Arabia’s crude oil production fell by 40,000 bpd to 9.98 MMbpd in August 2017—compared to the previous month.

US stocks appear unattractive despite the recent correction. A stronger dollar (UUP) and a slowing world has negatively affected large-cap earnings.

WTI crude oil prices fell 8.2% on June 29–July 17. August WTI oil futures contracts rose 0.03% to $68.08 per barrel on July 17.

On August 22, Seadrill reported that it received a contract termination notice for its contract with Pemex Exploration Servicios on the rig West Pegasus.

Global crude oil supply outages increased by 208,000 bpd (barrels per day) to 1,738,000 bpd in December 2017—compared to the previous month.

US WTI crude oil prices were at $54.45 per barrel on February 23—the highest level since June 2015. As of April 10, prices were 2.5% below their high.

The US Energy Information Administration estimates that global crude oil supply outages fell by 247,000 bpd (barrels per day) to 2.0 MMbpd (million barrels per day) in June 2017.

December WTI (West Texas Intermediate) crude oil futures contracts fell 1.4% to $44.3 per barrel in electronic trade at 2:40 AM EST on November 9, 2016.

US crude oil inventories fell 15% from their peak in March 2017 for the week ending November 3, 2017, which helped oil (USO) (UCO) prices.

April WTI (West Texas Intermediate) crude oil (BNO) (IXC) (IYE) futures contracts rose 1.6% and settled at $54.45 per barrel on February 23, 2017.

On July 24, 2017, Saudi Arabia’s energy minister stated that the country would cut crude oil exports to 6.6 MMbpd in August 2017.

US crude oil refinery inputs averaged ~16.5 million barrels per day (or MMbpd) during the week ended June 26.

Over the last 12 quarters, Denbury’s operating costs have been drifting upward. They rose from $21.19 per BOE in 1Q12 to $22.64 per BOE in 4Q14.

On July 30, a Reuters survey showed that OPEC’s crude oil production increased by 70,000 bpd (barrels per day) to 32.64 MMbpd in July.

On a combination of several factors such as its earnings, share buybacks, and XTO acquisition, XOM’s balance sheet has grown.

The EIA estimated that four-week average US gasoline demand rose by 210,000 bpd (barrels per day) to 9,312,000 bpd from March 17–24, 2017.

November WTI (West Texas Intermediate) crude oil futures contracts rose 0.5% and settled at $50.44 per barrel on October 13.

In this article, we’ll discuss how natural gas liquids prices have moved relative to crude oil and natural gas prices.

The EIA estimates that OECD’s oil inventories rose by 2.5 MMbbls to 2.98 MMbbls in September 2017—compared to August 2017.

Event-driven strategy is designed to make an investment in special situations, including mergers and acquisitions, restructuring, split-offs, bankruptcy, and other major events.

The EIA reported that US crude oil production fell by 11,000 bpd to 8,681,000 bpd from November 4–11, 2016. Production fell 5.5% year-over-year.

The demand from China’s teapot refineries is expected to fall between June 2017 and August 2017 due to strict import quotas and tax policies.

On September 27, the API released its weekly crude oil inventory report. It reported that US crude oil inventories fell by 752,000 barrels from September 16–23.

It’s important to note that 66.7% of analysts rated Cheniere Energy Partners as “buy,” while the remaining 33.3% rated the company as “hold.”

Many oilfield equipment and services (or OFS) companies’ cash flows have taken a beating following the energy price weakness in the past two years.

The wider the crack spread, the more profitable it is for refiners such as Valero Energy (VLO), Phillips 66 (PSX), Marathon Petroleum (MPC), and Tesoro (TSO).

A Bloomberg survey estimated that the crude oil inventories at Cushing could have fallen by 1.5 MMbbls between December 29, 2017, and January 5, 2018.