Shares of CSX Corporation jump subsequent to Chief Executive Michael Ward’s chat with Jim Cramer. Ward says that domestic coal shipments are down 33 percent from 2011 to 1 million carloads this year, but 80 percent of other industries are either stable or gaining, including lumber, which is closely linked to housing development. Auto shipments are up 27 percent; and chemicals, natural gas and oil shipments are also increasing.
Exxon Mobil Corporation’s second quarter figures got a bump from one-time gains, but Barron’s remains confident that the energy major will reward patient investors. The company’s long-term earnings growth rate of 9 percent is robust compared to negative analyst estimates for CVX and COP. It also provides the highest return on equity of all three, more than 25 percent, and its $15.35 billion in free cash blows away that of its peers.
BP announces that it might build a railroad loading system at its Cherry Point, Washington refinery, to transport inexpensive Bakken crude oil rather than theAlaskan North Slope crude currently processed there, and export other fuels and chemicals as well. Meanwhile, Tesoro Corporation is constructing a rail unloading system at its Pacific Northwest refinery to the same effect.
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