|Bid||0.00 x 900|
|Ask||0.00 x 3100|
|Day's Range||72.12 - 72.95|
|52 Week Range||40.40 - 76.23|
|Beta (3Y Monthly)||1.56|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 28, 2019 - Nov 1, 2019|
|Forward Dividend & Yield||1.20 (1.65%)|
|1y Target Est||71.24|
Edward Jones Analyst Jennifer Rowland joins Yahoo Finance's Julie Hyman, Adam Shapiro, and Brian Cheung to discuss how oil companies Exxon and Chevron did on their earnings
Occidental Petroleum Corp expects to quickly reduce the $40 billion in debt it took on with its purchase of Anadarko Petroleum, the company's finance chief said on Monday. Cedric Burgher, in his first public remarks since the $38 billion acquisition closed last week, told an EnerCom energy conference audience, the resulting debt burden was "not too bad," and pledged Occidental would be selective in choosing assets to sell. "When the smoke clears, people will start to see what we've done," Burgher said to an overflow crowd.
The energy explorer’s stock is falling on Monday, following a downgrade from Evercore ISI, which argues that Occidental’s acquisition of Anadarko Petroleum destroyed value.
Shares of energy giant Occidental fall after an Evercore ISI analyst downgrades his outlook for the company in the wake of its acquisition of Anadarko.
Billionaire activist investor Carl Icahn appeared on CNBC on Thursday and discussed several important topics on Wall Street, including the Occidental Petroleum Corporation (NYSE: OXY ) buyout of Anadarko ...
Shareholders of Anadarko Petroleum Corp on Thursday voted overwhelmingly to sell the company for $38 billion to rival Occidental Petroleum Corp , ending a short-lived contest that pitted two of the most storied names in the oil industry against one another. Occidental in May beat out Chevron Corp to grab a major oil industry prize: Anadarko's nearly quarter million acres in the Permian Basin, the top U.S. shale field, where low-cost output has helped turn the United States into the world’s top oil producer at more than 12 million barrels per day. Anadarko's shareholders voted 99% in favour of the deal that gives them $72.34 per share based on Wednesday's closing price for Occidental.
Shareholders of Anadarko Petroleum Corp on Thursday voted overwhelmingly to sell the company for $38 billion to rival Occidental Petroleum Corp , ending a short-lived contest that pitted two of the most storied names in the oil industry against one another. Occidental in May beat out Chevron Corp to grab a major oil industry prize: Anadarko's nearly quarter million acres in the Permian Basin, the top U.S. shale field, where low-cost output has helped turn the United States into the world’s top oil producer at more than 12 million barrels per day.
Occidental Petroleum Corporation (“Occidental” or “the Company”) (OXY) today announced the successful completion of its acquisition of Anadarko Petroleum Corporation (“Anadarko”) (APC) in a transaction valued at $55 billion, including the assumption of Anadarko’s debt. “With Anadarko’s world-class asset portfolio now officially part of Occidental, we begin our work to integrate our two companies and unlock the significant value of this combination for shareholders,” said Vicki Hollub, President and Chief Executive Officer.
Ormat Technologies (ORA) posts better-than-expected second-quarter 2019 results. Both earnings and revenues increase on a year-over-year basis.
Devon Energy (DVN) reports better-than-expected Q2 earnings. High efficiency in drilling and completion process allows it to lower planned capital expenditure for 2019.
(Bloomberg) -- Occidental Petroleum Corp. sold $13 billion of debt to help finance its acquisition of Anadarko Petroleum Corp. after receiving over $75 billion in orders for the deal at the peak, according to people familiar with the matter.It was the biggest demand for a debt sale since Saudi Arabia’s Aramco received more than $100 billion in orders in April, and a sign that investors were willing to take risk again just a day after the trade-war induced volatility shook global markets. Occidental issued bonds to fund the $38 billion takeover in 10 parts, according to data compiled by Bloomberg. The longest portion of the offering, a 30-year security, yields 2.25 percentage points more than Treasuries, down from initial price talk of 2.7 percentage points, said a person familiar with the sale, who asked not to be identified as the details are private.Four other investment-grade borrowers sold debt Tuesday as issuers regained their confidence after the latest flareup in the U.S.-China trade war brought sales to a near halt on Monday. The combined deals brought $16.05 billion of new debt to market, more than half of the projected $30 billion in high-grade supply expected to price this week.The order book for Occidental’s offering swelled to above $75 billion before retreating to about $71 billion as the deal launched, according to the people familiar with the demand. Order books can overstate actual demand for a security. Saudi Aramco received $100 billion of orders for a $12 billion bond sale this year, but the notes sank soon after the bonds were sold, implying that at least some investors were looking to sell out fast.The bond sale came after the Houston-based company won the battle for the Anadarko assets. Chevron Corp. elected not to sweeten its $33 billion offer for Anadarko, walking away with a $1 billion breakup fee in May.Activist investor Carl Icahn recently criticized Occidental for agreeing to take on a $10 billion investment from billionaire Warren Buffett in order to increase the cash portion of its bid.The company has also agreed to sell Anadarko assets in four African countries to France’s Total SA for $8.8 billion, as part of a $10 billion to $15 billion divestment plan to help it pay down debt. Occidental is seeking a buyer to take majority control of Western Midstream Partners LP, the pipeline operator that it’s poised to inherit through the Anadarko takeover, people familiar with the matter said in June.The acquisition, the largest seen in the oil and gas industry since Royal Dutch Shell Plc acquired BG Group Ltd. in 2016, adds over $40 billion of debt to Occidental’s capital structure, according to Moody’s Investors Service. That’s a significant increase that leaves the company “with less flexibility to confront commodity price volatility,” Andrew Brooks, Moody’s analyst, wrote in a statement last week.The rating company downgraded Occidental’s senior unsecured rating three notches to Baa3, the lowest investment-grade level. S&P Global Ratings has the energy producer at A and said on Aug. 1 that it will likely cut that rating to BBB, its second-lowest high-grade level, after the Anadarko transaction closes.Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. managed the bond sale, the person said.A representative for Occidental declined to comment on the bond sale.\--With assistance from Molly Smith, Michael Gambale, Brian Smith and Allan Lopez.To contact the reporter on this story: Caleb Mutua in New York at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, Christopher DeRezaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Brent oil slid into bear-market territory, as the U.S.-China trade spat threatened to expand into a currency war and investors despaired about the damage to crude demand.The rout for London-traded futures picked up speed as Tuesday’s session drew to a close, with Brent ending the day down 1.5%. The global benchmark has now fallen more than 20% since a late-April peak, meeting the common definition of bear market.Futures held their losses despite an industry report that U.S. crude stockpiles fell for an eighth straight week, which would be the longest run of declines in 19 months if confirmed by government data on Wednesday. The Trump administration had earlier declared China a currency manipulator, opening the potential for even harsher impacts on global trade.“We shouldn’t underestimate the potential impact of a full-blown trade war between the world’s two biggest economies,” said Bart Melek, head of global commodity strategy at TD Securities. “This could very well mean we as a market significantly overestimated demand growth for oil and we could easily be in a surplus situation in 2020.”Brent crude prices are down more than 9% this month as global economic worries eclipse the threat of supply disruptions in the Middle East. Iran could step up its operations against tankers passing through the Strait of Hormuz, the world’s most important oil chokepoint, Foreign Minister Javad Zarif said on Monday.Brent for October settlement fell 87 cents to settle at $58.94 a barrel on the London-based ICE Futures Europe Exchange.West Texas Intermediate for September delivery lost $1.06, or 1.9%, to $53.63 a barrel on the New York Mercantile Exchange. WTI for October traded at a discount of $5.35 to Brent for that month, a gap that’s narrowed markedly in recent days as trade fears undercut the outlook for global oil prices.Brent fell to $58.86 at 4:47 p.m., after the oil stockpiles report; WTI was at $53.53.Declining crude supplies have offered a partial counterbalance to the economic outlook. The American Petroleum Institute on Wednesday said inventories fell by 3.43 million barrels last week, according to people familiar with the data. Gasoline stockpiles also fell.The U.S. Energy Department is due to release official figures on Wednesday.\--With assistance from Tsuyoshi Inajima and Sophie Caronello.To contact the reporters on this story: Alex Nussbaum in New York at email@example.com;Grant Smith in London at firstname.lastname@example.orgTo contact the editors responsible for this story: David Marino at email@example.com, Carlos CaminadaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- So, energy investors, to recap:The U.S. just branded China a currency manipulator in the latest escalation of the trade/currency/who-will-run-things-in-the-21st-century war; Venezuela – where, like fellow OPEC member Iran, Washington thinks some regime modification is in order – just got some new sanctions; The SPDR S&P Oil & Gas Exploration & Production ETF closed at its lowest level since March 9, 2009 (the week the S&P 500 hit bottom after the financial crisis).(1)Interesting times. And at such times, oil investors would typically run for the relative safety of the majors, and one in particular: Exxon Mobil Corp. Except that it is also interesting times, or timing, for Exxon.Today’s apparent reprieve in the currency war, with the Chinese yuan nudging back below 7 to the dollar, is far from an armistice. The long list of U.S. grievances against China, from FX to fentanyl, along with President Donald Trump’s November 2020 timetable and President Xi Jinping’s lack of one, portend a drawn-out conflict. This is why Brent dipped briefly below $60 this morning, even though the U.S. has not one but two OPEC producers under tightening sanctions.Oil majors, with their bigger balance sheets and diversification, usually do better than their smaller brethren at such times. And lately they have.The latest earnings from Exxon and Chevron Corp., however, suggest the smaller of the two may offer a better refuge this time around.Exxon missed the consensus earnings estimate (after stripping out a tax-related gain in Canada). The real issues lay beneath that number, starting with the nominally defensive chemicals business. Profits here collapsed by almost 80% compared to the same quarter in 2018, to their lowest in years. Exxon characterized this as a temporary problem of excess capacity, albeit one that was likely to weigh on pricing for the next 12 months. What’s tricky about this is (a) excess supply is always also a function of demand, and (b) the trade war could have something to say about that.Exxon’s real engine, the upstream business, isn’t suffering to nearly the same degree but isn’t firing on all cylinders either. Absent that tax benefit, earnings were flat with the first quarter, despite higher crude oil prices. Lower output and falling gas prices were to blame, but so too is Exxon’s weaker position vis-à-vis Chevron in their increasingly important shale portfolios. The latter’s U.S. upstream business has earned more than $2 for every one Exxon has earned over the past four quarters. If oil prices remain weak (or even weaken further), Exxon looks more vulnerable in this regard.There is an element of luck at play here, and timing is against Exxon. When oil prices first collapsed toward the end of 2014, Chevron was in the doghouse because it was locked into heavy spending on some major liquefied natural gas projects. It is now over that hump – just as Exxon has moved into spending mode.The result is that, while Exxon had to borrow to cover its dividend in the second quarter, Chevron’s free cash flow covered its own payout twice over; and it’s resuming buybacks after its brief pursuit of Anadarko Petroleum Corp. (which also netted it a break fee and plaudits for walking away).Those payouts are critical in keeping an already skeptical investor base onside. But while Exxon now yields almost 5% on dividends versus Chevron’s 4%, the latter’s buybacks chip another 2% or so of yield. In terms of trailing free cash flow yield, there’s no contest.Dividend yield aside, on every measure from earnings to book value, Exxon continues to trade at a premium. As insurance against what promises to be an ever more interesting year or so, that’s tough to justify.(1) A note on this ETF, the XOP, to use its ticker. Though it is billed as focused on exploration and production, it actually has a hefty weighting of refining stocks, too – six out of its top 10 holdings, in fact. Which means the E&P sector’s performance is worse than even the XOP suggests. Look at the Russell 3000 Crude Producers sub-index, for example, and it is actually substantially below the level of early 2009. (Hat-tip to Kevin Kaiser, @kfkaiser17, for pointing this out).To contact the author of this story: Liam Denning at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Gongloff at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The deal gives Occidental a chance to push forward development on assets that would otherwise probably languish for a while.
Occidental is selling $13 billion of debt to help finance its acquisition of Anadarko after receiving over $75 billion in orders for the deal at the peak, according to people familiar with the matter.
Chevron stock has moved with volatile oil prices amid geopolitical issues. But is it still worth buying? Find out what the expert analysis says
Dealmaking in oil and gas has tailed off in 2019, and it’s not clear what might kick the industry’s mergers and acquisitions back to life. Oil and gas producers have not been clinching deals at their historic rate, despite the $57 billion deal of Occidental Petroleum (NYSE: OXY) buying The Woodlands, Texas-based Anadarko Petroleum Corp., the biggest oil and gas producer in Colorado’s Denver-Julesburg Basin. Leaving out the Anadarko (NYSE: APC) deal, the $9.2 billion in mergers and acquisition activity so far this year amounts to less than a quarter of the $38 billion people could expect over that time based on quarterly averages the past two years, according to Drillinginfo.com.
The closing on the Anadarko deal earlier than originally expected will give Occidental a jump-start on capturing some of the benefits of the deal, Oxy's CEO said.