|Bid||63.42 x 3200|
|Ask||64.35 x 900|
|Day's Range||63.92 - 64.59|
|52 Week Range||40.40 - 76.70|
|Beta (3Y Monthly)||1.34|
|PE Ratio (TTM)||53.33|
|Forward Dividend & Yield||1.20 (2.64%)|
|1y Target Est||N/A|
Fear of missing out on oil assets in the Permian Basin is overblown, says Janus Henderson analyst Noah Barrett.
The board also eliminated a provision that would have reduced Walker’s potential payout because he hasn’t yet reached age 65, according to an April 17 regulatory filing. The tweaks, approved on April 11, also included a vow to cover excise taxes on golden parachute payments to Anadarko’s top bosses -- a type of benefit that many shareholders have criticized for years. In addition to Walker, 62, President Robert Gwin, Chief Financial Officer Ben Fink and three executive vice presidents will receive 200 percent of their target bonuses for 2019 just before the deal is completed, according to the filing, which was reported earlier by the Wall Street Journal.
Kenneth has top winds of 52 miles (84 kilometers) per hour, and could reach 104 mph before it makes landfall between Palma, where Anadarko Petroleum Corp. is building a $20 billion LNG project, and Pemba on Mozambique‘s coast, according to the U.S. Joint Typhoon Warning Center in Pearl Harbor, Hawaii. Kenneth would be the equivalent of a Category 2 storm on the five-step Saffir Simpson scale. Anadarko doesn’t anticipate major impacts at its site in Mozambique but will continue to monitor the situation and adjust plans to meet new conditions, the company said in a statement.
As of last Thursday, Kinder Morgan (NYSE:KMI) shares looked to be in real trouble. Already fading from a big January-February rally, KMI stock plunged below its pivotal 50-day moving average line in response to a lackluster full-year outlook.Things have changed dramatically so far this week, with Kinder Morgan stock bouncing back in a pretty convincing way.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAgainst a backdrop of still-impressive fiscal progress even with the dialed-back 2019 outlook, last week's sizable plunge followed by Monday's rebound may actually hint of a major renewal of an uptrend that at least one analyst expects to take shape from here. Kinder Morgan EarningsKinder Morgan's first quarter of 2019 was solid enough. Revenue of $1.37 billion produced 60 cents per share worth of distributable cash flow, up 7% year-over-year. Both were better than the guidance of $1.35 billion and 59 cents the company had previously offered. * 5 Dividend Stocks Perfect for Retirees Ordinary net income was up 14.6%, growing from $485 million in the first quarter of 2018 to $556 million last quarter.The rest of the year, however, may not be as impressive.In January, Kinder Morgan had forecast full-year core earnings of $7.8 billion. That figure has since been dialed back to $5 billion, or $2.20 per share of KMI stock. Lower interest expenses won't be able to fully offset ramped-up spending plans. That spending may include the development of a third Permian Basin gas pipeline to abate a glut of natural gas waiting to be shipped elsewhere.During the first quarter, completed $200 million worth of expansion projects, and added $600 million worth of infrastructure growth plans to bring the backlog to $6.1 billion. Decisive ReversalThe knee-jerk response to the contracted guidance makes sense. A stock's valuation is a relatively arbitrary matter, impacted as much by headlines as results. Changes to plans can rattle investors, even without them knowing exactly why. Mere whispers of lowered core-earnings guidance was enough to shake the stock off of its perch.Thursday's big KMI stock setback, however, may have actually served as a sort of capitulation, hitting the reset button on a much bigger rally.It's Monday's bullish action that puts the finishing touches on Thursday's partial intraday reversal though. Boosting by rebounding oil prices, Monday's bounce has carried KMI stock back above its 50-day moving average line (purple) as well as the 20-day moving average line (blue). The budding downtrend has been quelled, if it was ever actually taking shape at all.Raymond James analyst Justin Jenkins doesn't think it was.On Thursday, in the midst of the selling, Jenkins maintained an "Outperform" rating on Kinder Morgan stock, and reiterated the firm's target price of $21. Jenkins argues that returns are actually more important to investors than raw growth is right now, suggesting Kinder Morgan is smartly deploying capital.Monday's big gain suggests investors see Jenkins' point. Looking Ahead for KMI StockThere's not been a highly touted difference between Kinder Morgan and other energy names, but it's one worth noting. Some oil and gas outfits are spending heavily on growth, perhaps without a great deal of regard to impact on profit.Exxon Mobil (NYSE:XOM) is arguably at the other end of this spectrum.In March it announced plans to ramp up capital spending by $4 billion this year, and increase it by roughly the same amount, with much of that CapEx aimed at improving its presence in the natural gas market. * 10 S&P 500 Stocks to Weather the Earnings Storm Neither analysts nor investors are convinced the new strategic direction is the wisest use of capital though. Cowen analyst Jason Gabelman noted of the news: "Exxon Mobil's counter-cyclical investment decision may look prescient in future years, but we do not believe the investor community is willing to place that same bet today and are downgrading the stock as a result."The more recently announced offer from Chevron (NYSE:CVX) to acquire Anadarko Petroleum (NYSE:APC) is a similarly questionable use of capital. Though Raymond James analysts don't believe Chevron is overpaying, they also don't believe it was necessary. The use of that cash and stock now may prevent the oil giant from being able to step into a more advantageous opportunity later.Kinder Morgan, meanwhile, is focusing its capital expenditures internally, which at least gives it the option to adjust spending plans as needed.In the meantime, KMI stock just appears to have new life, as investors celebrate its position against a backdrop of still-improving gas and crude oil prices.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Stocks With Too Much Risk, Not Enough Upside * 7 Companies That Are Closing the CEO-Worker Wage Gap * 7 Video Game ETFs That Will Make You a Winner Compare Brokers The post Kinder Morgan Stock Capitulates, Renews a Rally Fast Taking Shape appeared first on InvestorPlace.
Anadarko Petroleum changed the rules for the pay packages of its top executives, giving them millions of dollars more, a day before it announced it was accepting a takeover bid from Chevron, an analysis of the revisions has shown. In a filing to the Securities and Exchange Commission, Anadarko said that on April 11 its board’s compensation and benefits committee had approved several changes to executive pay, including revisions to bonuses and to severance agreements. The improvements in the pay package for Al Walker, Anadarko’s chief executive, are worth at least $6.7m, taking his total minimum payout following the takeover to about $43m, according to Equilar, a data company.
Anadarko updated terms determining severance payments for senior execs the day before Chevron's $33B buyout offer was announced.
Everyone thinks M&A in the Permian Basin is heating up. Some assets looks especially cheap. Here is a list of what producers to focus on.
Gordon Haskett analyst Don Bilson seems to have a crystal ball—but what he’s really looking at is an array of unconventional corporate characteristics.
Oil prices have risen more than 30% this year, but suppressing supply won’t be so easy as U.S. shale production grows more profitable and takes share from OPEC members and Russia.
"Anadarko was the first big oil deal this year, but I bet it won't be the last," CNBC's Jim Cramer says. "We've simply got too many publicly traded companies, something that's only going to get worse as more and more privately held unicorns, like Pinterest tonight, keep coming public," he says. CNBC's Jim Cramer on Wednesday said investors could expect to see more mergers and acquisitions in the energy and oil space in 2019.
Early last week, M&A; activity for the year was lagging. Then came the $33 billion sale of Anadarko to Chevron. With that deal, everything changed – at least statistically. The equity and debt markets continue to be stingy, so what do companies do for new capital?
Shares of drillers with positions in the Permian Basin are on the rise following Chevron's $33 billion deal to acquire Anadarko Petroleum. Analysts say the rally in drilling stocks is largely a bet on more mergers and acquisitions in the space. Chevron's $33 billion deal to buy Anadarko Petroleum APC is having a halo effect for U.S. oil drillers, as investors place bets on the next acquisition target in the U.S. shale oil space.
NOTE: On April 17, 2019, the press release was corrected as follows: The methodology paragraph was changed to: The principal methodology used in rating Chevron Corporation, Chevron Canada Funding Company, Chevron Capital U.S.A. Inc., Chevron Funding Corporation, and Texaco Capital Inc. was Global Integrated Oil & Gas Industry published in October 2016. The principal methodology used in rating Anadarko Petroleum Corporation, Kerr-McGee Corporation, Anadarko Finance Company, and Union Pacific Resources Group Inc. was Independent Exploration and Production Industry published in May 2017.