BP Jun 2020 33.000 put

OPR - OPR Delayed Price. Currency in USD
0.0000 (0.00%)
As of 9:51AM EDT. Market open.
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Previous Close1.3300
Expire Date2020-06-19
Day's Range1.3300 - 1.3300
Contract RangeN/A
Open Interest1.28k
  • Moody's

    Midcoast Energy, LLC -- Moody's announces completion of a periodic review of ratings of Midcoast Energy, LLC

    Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Midcoast Energy, LLC and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.

  • The Zacks Analyst Blog Highlights: ExxonMobil, Chevron, BP, Royal Dutch Shell and Valero

    The Zacks Analyst Blog Highlights: ExxonMobil, Chevron, BP, Royal Dutch Shell and Valero

    The Zacks Analyst Blog Highlights: ExxonMobil, Chevron, BP, Royal Dutch Shell and Valero

  • Valuations: Where Do XOM, CVX, Shell, and BP Stand?
    Market Realist

    Valuations: Where Do XOM, CVX, Shell, and BP Stand?

    The valuations of integrated energy stocks ExxonMobil, Chevron, Shell, and BP have been slammed in Q3, led by volatile equity markets and oil prices.

  • U.S. Oil Industry Grabs Another Crown From Saudi Arabia
    Investor's Business Daily

    U.S. Oil Industry Grabs Another Crown From Saudi Arabia

    The U.S. topped Saudi Arabia in oil exports in June as Riyadh complies with the OPEC cuts, according to an industry report Wednesday.

  • U.S. Oil Ends Lower Even as EIA Reveals Drop in Inventories

    U.S. Oil Ends Lower Even as EIA Reveals Drop in Inventories

    While EIA reports the fourth straight weekly inventory decline, crude prices fall after OPEC cut its forecast for oil demand growth this year and next.

  • BP CEO Plans Sale of Some Oil Projects to Hit Climate Target

    BP CEO Plans Sale of Some Oil Projects to Hit Climate Target

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.BP Plc’s CEO plans to sell some oil projects and curb the development of others to align its business with the Paris accord, the latest sign climate concerns are starting to impact the investment decisions of the world’s largest fossil fuel producers.Senior BP executives met within the last few days to discuss how to cut carbon as it grapples with a shareholder resolution requiring the company to explain how its spending is aligned with Paris, Chief Executive Officer Bob Dudley said on a Wednesday conference call organized by JPMorgan Chase & Co.One proposal weighed up by BP’s management team was exiting the most carbon-intensive projects, though Dudley wouldn’t say which assets were targets because there are “governments and partners involved.”“We are certain we’ve got a path, it may not be linear, to being consistent with Paris goals,” Dudley said in conversation with JPMorgan’s head of European oil research Christyan Malek. “There are going to be projects that we don’t do, things that we might have done in the past. Certain kinds of oil, for example, that have a different carbon footprint.”His comments offer a response to increasingly severe criticism aimed at the entire oil industry over its contribution to man-made climate change. BP’s own shareholders sparred with company managers at its annual general meeting in May, before voting almost unanimously to require the company to issue a report about how each new investment is aligned with Paris. The report will be issued before its next AGM in May 2020.Still, the plan may prompt questions about how selling assets to another producer can help curb global emissions. For example, Dudley said on the call that the sale last month of BP’s oil and gas fields in Alaska helped it reduce its carbon footprint. But the buyer plans to invest more in the fields than BP would have, potentially increasing production and boosting emissions in the process.Dudley also pointed out the main driver of the Alaska sale was the fact those fields were struggling to compete for capital within BP because production there was unlikely to grow as much as at the company’s other projects. Dudley said he is driving down the entire company’s “break-even” point toward $50 a barrel, meaning projects will need to be cheap to stay within BP’s portfolio.Also read: BP Says Some of Its Oil ‘Won’t See the Light of Day’Dudley said he’s juggling with the challenge of investing in relatively low-return renewables businesses while maintaining the company’s large dividend. He took aim at those who didn’t acknowledge how beneficial it is when BP does invest in low-carbon technology, saying any assessment of its carbon footprint should probably include the emissions it avoids.“We’ll reduce the emissions from our operations, reduce the emissions from our products and come up with the new business models,” he said. “If you add all those figures up in reductions of greenhouse gas -- for example, we have a big solar business, a big biofuel, wind business -- you almost get no credit when you do those calculations.”While he has maintained the company’s business model already aligns with the Paris accord, he said having to issue a report to benchmark progress has caused BP to think further about its spending.Carbon TrackerA report by Carbon Tracker last week said BP’s most polluting investments are the Zinia 2 project in Angola and the Azeri-Chirag-Gunashli development in Azerbaijan, and that neither are compatible with the Paris goals.“Our strategy is to produce advantaged barrels, which involves considering factors like whether they are economic to produce, low risk to bring to market and lower carbon from an emissions standpoint,” a BP spokeswoman said in response to the Carbon Tracker assessment. These “could help to push other more costly and high-carbon barrels out of the mix, just as gas can help to push coal out of the power mix.”BP is also seeking to divest assets because its debt is too high, Dudley said on the call, constraining his spending power. It has announced about $7 billion of a $10 billion disposal program linked to the purchase of shale fields from BHP Group Ltd. last year. An earlier plan to meet that target by selling older onshore gas fields was complicated by the price of natural gas falling, he said.BP became the operator of the BHP fields in March, which has now caused other complications to the British company’s climate ambitions. Dudley said the level of flaring, the deliberate burning of methane at the place it’s produced, is “not right,” and he is working to reduce it. Earlier this week, the company announced it was adding new equipment to its projects to quantify and identify methane leaks.(Updates with comments on break-even price in seventh paragraph.)To contact the reporter on this story: Kelly Gilblom in London at kgilblom@bloomberg.netTo contact the editors responsible for this story: James Herron at jherron9@bloomberg.net, Helen Robertson, Amanda JordanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • 6 Guru Stocks With Negative Performances

    6 Guru Stocks With Negative Performances

    Exxon Mobil tops the list Continue reading...

  • The Bull Case for Exxon Stock Is Strong, but It’s Not Perfect

    The Bull Case for Exxon Stock Is Strong, but It’s Not Perfect

    There's a nice bull case for Exxon Mobil (NYSE:XOM) at the moment. Earnings are set to grow at a nice clip going forward. Exxon stock pays an attractive dividend. Downstream and chemical operations provide a hedge to oil price weakness.Source: Jonathan Weiss / Shutterstock.com Indeed, XOM stock has rallied nicely since touching a 2019 low last month. Thanks in part to the generous dividend, I predicted in July that $70 would hold as a floor for Exxon stock.That didn't quite play out, as XOM went to $66, but the dip below $70 - and to a 5%+ yield - proved to be short-lived.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBack at $72, Exxon Mobil stock still looks attractive, but it's not perfect. There are reasons why XOM stock has been dropping for the past five years. And there are plays elsewhere in energy that might be more compelling. XOM still looks like the easiest play in energy. But easiest isn't always the best. The Case for Exxon StockThe case for Exxon stock has two pillars. First, earnings are set to grow sharply over the next few years. CEO Darren Woods said last year that Exxon Mobil would double its profits by 2025. * 10 Stocks to Sell in Market-Cursed September The company said in May that the plan remained on track. It noted at its March Investor Day that it could reach those goals with flattish oil prices and even assuming demand was cut to meet climate change targets.The second, related, pillar is that the earnings growth can support continuing increases in the dividend, which can further support Exxon Mobil stock. To be sure, I'm not a fan of buying a stock for its dividend. That's a dangerous play, a lesson learned by shareholders of General Electric (NYSE:GE) and CenturyLink (NYSE:CTL), to name just two.But Exxon Mobil has some internal protections to its earnings thanks to its downstream and chemical operations. When oil prices fall, profits in upstream (exploration and production) drop. But they usually increase elsewhere in the business. Even as oil absolutely collapsed in the middle of the decade, XOM stock held up - and the dividend kept growing.In an environment where 10-year Treasuries yield less than 2%, it's difficult to believe that Exxon can yield 5% or more for very long. Last month's move to under $70, as noted, was short-lived.So Exxon Mobil stock is probably safer than some investors realize. Given its growth potential going forward, it's cheaper than some investors realize. That's a nice combination.And it suggests a path to $100 or more, given plans to move EPS above $8 and the dividend potentially to $4+. Give Exxon a mid-teen P/E multiple or a 4% yield and the stock gains 50% or so from current levels: including dividends, likely double-digit annual returns. The RisksThat said, even if risks are lower here than elsewhere in energy, risks aren't zero. Climate change worries could drive lower energy demand amid both government regulation and changing consumer behavior. It's not just Tesla (NASDAQ:TSLA) pushing electric vehicles, after all.Lower gasoline demand doesn't send Exxon Mobil profits to zero, as oil has other uses. But it does pressure Exxon Mobil earnings, and thus the XOM stock price.Another factor is the role of ESG (environmental, social and governance) investing. Those funds may avoid Exxon stock, lowering demand in the market and potentially keeping a modest ceiling on performance going forward.Finally, Exxon Mobil has to actually hit its targets - and get some help from oil prices in the process. Lower oil prices, too, don't send Exxon Mobil earnings to zero. But if EPS is $6 in 2025 instead of $8+, Exxon's next five years could look like the last five. Over that time, shareholders have lost about 10% of their investment, even including dividends. The Bottom Line on Exxon StockThe other question is whether there are other more attractive plays in the energy sector. It's worth remembering that the same internal hedge that protects earnings in a lower oil-price scenario also makes XOM stock a notably poor play on oil prices.Investors bullish on oil should look elsewhere, particularly with prices cheaper across the space. Both Exxon and Chevron (NYSE:CVX) have said that they expect shale M&A to continue, after Occidental Petroleum (NYSE:OXY) acquired Anadarko Petroleum earlier this year.Concho Resources (NYSE:CXO) has been considered a logical acquisition target and is much cheaper after a post-earnings plunge. Other shale plays have fallen steadily since spiking after the Oxy-Anadarko bidding war.Even in integrated oil, there are some intriguing plays. Chevron has been a better stock in recent years. BP (NYSE:BP) has a higher dividend.Again, XOM the simplest play in the space. It's likely, given its dividend, to preserve capital even if oil prices move to a so-called "lower for longer" scenario. But there are intriguing options as well. Oil bulls should look elsewhere. Income investors should take a look at BP. Exxon stock is a good option, but it's likely it won't turn out to be the best one.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post The Bull Case for Exxon Stock Is Strong, but It's Not Perfect appeared first on InvestorPlace.

  • Top 5 Companies Owned by British Petroleum (BP, OJSCY)

    Top 5 Companies Owned by British Petroleum (BP, OJSCY)

    British petroleum giant BP owns many companies that increase its earnings through the sale of its fuel products around the world.

  • BP (BP) Outpaces Stock Market Gains: What You Should Know

    BP (BP) Outpaces Stock Market Gains: What You Should Know

    BP (BP) closed the most recent trading day at $37.84, moving +0.91% from the previous trading session.

  • These High Forward Dividend Yield Companies Will Outperform

    These High Forward Dividend Yield Companies Will Outperform

    The stocks represent profitable investments Continue reading...

  • Is BP p.l.c.'s (LON:BP.) High P/E Ratio A Problem For Investors?
    Simply Wall St.

    Is BP p.l.c.'s (LON:BP.) High P/E Ratio A Problem For Investors?

    This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios...

  • ExxonMobil to Divest Oil & Gas Resources in Norway For $4B

    ExxonMobil to Divest Oil & Gas Resources in Norway For $4B

    ExxonMobil's (XOM) decision to sell Norway oil & natural gas assets reflects strong focus on boosting oil equivalent volumes from American onshore shale resources.

  • China and Tariffs, Oil Patch Stocks, Lockheed Martin a Winner: Market Recon

    China and Tariffs, Oil Patch Stocks, Lockheed Martin a Winner: Market Recon

    About the upcoming U.S./China talks, call me skeptical, but I trade the environment, and not my starchy views on what is versus what should be.

  • BP aims to sell more U.S. crude to Asia, boost LNG supplies in early 2020s

    BP aims to sell more U.S. crude to Asia, boost LNG supplies in early 2020s

    Oil major BP plans to sell more U.S. crude to Asia as its shale oil production grows, seeking to capitalise on growth in the world's key demand region. The strategy, outlined in a Reuters interview with company executives, follows BP's move to acquire giant miner BHP's assets in the United States' prolific Permian shale basin last year, expected to give its portfolio a boost in light-sweet crude production. "This (Asia) is a key growth region" for energy demand, said Sharon Weintraub, BP's chief executive officer of supply and trading for the eastern hemisphere.

  • BP Sees Worldwide Oil Demand to Grow at a Slower Pace in '19

    BP Sees Worldwide Oil Demand to Grow at a Slower Pace in '19

    BP reportedly announces that the escalating tariff war between the United States & China, and growing fears of recession have been denting demand for oil and refined petroleum products.

  • BP (BP) Gains But Lags Market: What You Should Know

    BP (BP) Gains But Lags Market: What You Should Know

    BP (BP) closed the most recent trading day at $37.31, moving +0.97% from the previous trading session.

  • Financial Times

    BP’s sacking of worker over Nazi parody video upheld by tribunal

    BP’s decision to sack a worker who posted on Facebook a parody video of the war film Downfall , which compared the UK oil company’s senior management to Nazis, has been upheld by Australia’s industrial ...

  • Oil & Gas Stock Roundup: BP Out of Alaska, Equinor Speeds Up Oil Field Start Up

    Oil & Gas Stock Roundup: BP Out of Alaska, Equinor Speeds Up Oil Field Start Up

    BP plc (BP) farmed out of Alaska, selling its entire business to Hilcorp Energy for $5.6 billion, while Equinor (EQNR) indicated an earlier-than-expected start up of the giant Johan Sverdrup field.

  • Institutional Holdings in XOM, CVX, BP, and RDS.A
    Market Realist

    Institutional Holdings in XOM, CVX, BP, and RDS.A

    Institutional holdings in Chevron, ExxonMobil, Royal Dutch Shell, and BP stand at levels ranging from 10% in Shell to 68% in Chevron.

  • 7 Deeply Discounted Energy Stocks to Buy

    7 Deeply Discounted Energy Stocks to Buy

    2019 has been a rotten, no-good year for energy stocks. While the stock market as a whole has prospered, energy stocks have missed the boat. The price of crude oil hasn't been particularly favorable and natural gas prices have sunk like a rock. On top of that, investors have been favoring growth while shying away from value stocks. This has left the energy sector orphaned; in fact, energy's share of the S&P 500 has fallen to its lowest level in many years.For investors willing to buy what others are selling, however, energy stocks offer many rewards here. For one, these are the stocks to buy now if you want strong dividend yields. Across the sector, leading energy firms are offering their highest dividend yields in decades. This, while rates on fixed income in general have plummeted. * 7 Best Tech Stocks to Buy Right Now Additionally, expect a wave of M&A to help reignite interest in the energy stocks. For example, Blackstone (NYSE:BX) just announced a takeover for pipeline operator Tallgrass Energy (NYSE:TGE). That led to a 35% surge for TGE stock last Wednesday. And as we'll see, that's not the only dealmaking activity going on in the sector right now. With everyone abandoning energy stocks, this could be the time to take advantage of the general pessimism.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Energy Stocks to Buy: BP (BP)Source: AVM Images / Shutterstock.com Tallgrass wasn't the only company making headlines this week. BP (NYSE:BP) also caused a stir with its announcement that it is selling its Alaskan oil interests to Hilcorp, a privately-owned company. Hilcorp will pay BP $5.6 billion; $4 billion of that goes to BP immediately, and Hilcorp will deliver the rest gradually in coming years.It seems that BP drove a fair bargain. Its Alaskan properties produce roughly 74,000 barrels of oil a day, and have been declining in production in recent years. Figuring an average oil price in the low $50s per barrel, Alaska was generating around $1.4 billion annually for BP in revenues. Thus, it sold a mature oil field for around 4x annual revenues, even given the poor industry sentiment at the moment.Additionally, this sale helps with BP's promised transformation. BP said that it will divest $10 billion in assets as it transitions to more growth and green energy opportunities. With this deal, they have now reached more than half of their overall target.Management is delivering on its corporate strategy. The asset sales also help strengthen the balance sheet. This should give investors more confidence in BP's gigantic 6.71% dividend yield. In a market starved for yield, it's hard to think BP stock will stay unloved for too long. ExxonMobil (XOM)Source: Michael Gordon / Shutterstock.com Speaking of dividend yields, ExxonMobil (NYSE:XOM) is another income champion that the market is paying no respect right now. ExxonMobil has raised its dividend for 36 consecutive years, making it one of the few companies to manage that feat. Incredibly, it was able to keep raising its dividend even through the oil and gasoline price doldrums in the late 1990s. The great financial crisis didn't break its streak either.XOM stock is now offering a 5.1% dividend yield. That's amazing; it's the most that ExxonMobil has offered since 1990. Particularly with interest rates plunging ever lower, XOM stock is a fantastic alternative to bank CDs or government bonds yielding 2% or less.Is the dividend sustainable? Yes. In fact, ExxonMobil still has one of the highest-quality balance sheets in corporate America and is rated a sterling AA+. Even with the slump in oil and natural gas prices, ExxonMobil has still been able to cover its dividend payments out of free cash flow. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off And after years of lying low, XOM is pushing the accelerator. It has plans to double its earnings and cash flow over the next five years or so. While the competition has had to retrench due to the slump in energy, ExxonMobil is ready to pick up the slack. With a huge new oil field coming online soon in Guyana, ExxonMobil is prepared for the next decade and more. Throw in any recovery in oil prices, and XOM stock should soar. Suncor (SU)Source: Shutterstock A lot of investors, Americans in particular, have some faulty perceptions of the Canadian oil sands. Often disparagingly called "tar sands," oil sands -- primarily located in the province of Alberta -- are an emerging power play in global crude oil production. Many years ago, this type of production was extremely expensive and damaging to the environment. Over the years, however, operators have gotten much better on both fronts.Oil sands are now one of the cheapest sources of crude in North America. There's still another issue, however. The oil sands have huge upfront development costs to launch production. That's in stark contrast to, say, fracking another well in the Permian in Texas. Some investors have been put off on oil sands projects because of these capital costs.Here's the thing they're missing: When you drill a new well in the Permian, for example, most of the production comes within the first couple years. By year ten or so of operation, that well will be kicking out only a few barrels of oil a day. Thus, for frackers, it's a constant and expensive treadmill to keep production rolling. With the oil sands, however, once it's built, you can produce for decades at a low cost. Your production doesn't fall off a cliff -- rather you get stable sweet returns for many years.Suncor (NYSE:SU) has become the leader in this space in Canada. It has several other attractive features as well. The most important right now is that it is integrated; it has a ton of gasoline refining capacity as well. This allows Suncor to earn far higher prices for its oil than other Western Canadian operators who are dealing with a glut of oil locally.It's possible that upcoming elections will deliver a more pro-energy government in Canada, making way for more pipelines. Until then, however, Suncor, with its refining and decades of cheap oil reserves, is a standout pick for its refining edge. SU stock currently yields 4.53%, making it one of the better options in the energy stocks space. Canadian Natural Resources (CNQ)Source: Shutterstock Canadian Natural Resources (NYSE:CNQ) is another big player in oil sands, although it has oil operations around the world in addition to its Canadian holdings.The firm just made a huge power play, buying up $2.8 billion of oil sands assets from Devon Energy (NYSE:DVN). This deal appears to have been an absolute steal. Bankers estimated that Devon could fetch up to $5 billion for these assets; Canadian Natural grabbed them for barely half of that. * 7 Stocks to Buy Down 10% in the Past Week Canadian Natural doesn't have the same refining capacity as Suncor, however it has a huge asset base and nice diversity across its operations. At a $27 billion market cap, CNQ stock is also a huge player in Canada. When money comes flowing back into Canadian shares and the energy stocks in particular, CNQ stock should catch a solid bid. In the meantime, it also offers a generous 4.88% dividend yield. Enbridge (ENB)Source: Shutterstock Speaking of unloved Canadian stocks, let's turn our attention to pipeline giant Enbridge (NYSE:ENB). Enbridge is right up there with Kinder Morgan (NYSE:KMI) among the big midstream energy players. Unlike Kinder Morgan, Enbridge is not as popular with American investors; the company doesn't have the same sort of promotional management style you get from Rich Kinder. Nor has Enbridge made a history of big dividend hikes followed by painful dividend cuts.By contrast, Enbridge has built a reputation for stability, and has become a Canadian blue chip stock. ENB stock offers a current dividend yield of more than 6.5%. And unlike so many energy stocks, Enbridge offers a rock-solid yield. Even despite the difficult operating environment, the company is still able to grow its cash flow by around 5% per year, paving the way for more dividend increases in the future.Additionally, with 93% of its customers having investment-grade credit ratings, Enbridge has a quality group of clients using its pipelines and thus is largely insulated from more bankruptcies in the E&P space. Schlumberger (SLB)Source: Shutterstock Benjamin Graham, who is widely considered to be the "father of value investing" recommended an interesting strategy for profits in beaten down sectors. He said investors should look at the industry and find the biggest firm that has a strong balance sheet. That way, you know that your investment will survive the down cycle and perhaps even benefit as smaller competition goes bust. Then, when the cycle turns upward, you'll be poised to capture huge gains.With oil services, Schlumberger (NYSE:SLB) is that company today. Schlumberger has a long and storied history of shareholder value creation. Its stock soared from a split-adjusted $12 in 1995 to as high as $140 in 2014. Since then, with the plunge in oil prices, SLB stock has gotten hammered as well; it's down 75% to around $32 today. * 7 'Strong Buy' Stocks to Beat Volatility However, much of Schlumberger's competition has already gone bankrupt or is on life support at this point. Meanwhile, Schlumberger remains the global leader in its field, continues to generate profits even during these hard times, and offers a 6.3% dividend yield. When oil booms again, Schlumberger could make it all the way back to its old high of $140 per share; even this past October, it traded at $62, making the current $32 price quite a discount. Cullen/Frost Bankers (CFR)Source: Shutterstock You might be asking what a banking stock like Cullen/Frost Bankers (NYSE:CFR) is doing on a list of energy stocks to buy. That's a fair question. Cullen/Frost, however, is no ordinary bank. It's focused on the Texas economy and has substantial direct exposure to energy loans.The San Antonio-based bank, in fact, has all 134 of its branches and more than 1,300 ATMs located within Texas. On every earnings call, management devotes substantial time talking about the health of the Texas economy. Given its reliance on energy companies in Houston and fracking in West Texas, the local economy is heavily levered to oil. As a result, investors absolutely pummeled CFR stock in 2015 and 2016 when oil dropped.CFR stock plummeted from $80 to $45 during that oil crash. Despite that, Cullen/Frost's loan losses barely went up, and the bank came through unscathed. In fact, it has gone through a ton of obstacles without harm; it was the only major Texas bank to survive that state's massive bust in the 1980s oil collapse. On top of that, Cullen/Frost kept raising the dividend even during the financial crisis which took out so many banks. In 2016, after investors gave up on CFR stock, it soared back from $45 to $120 as oil prices normalized.However, with energy in retreat again, CFR has plunged back to $80 a share. At just 12x forward earnings, it is trading well below its normal valuation. The stock is also yielding more than 3.5%. It could come flying back up in a hurry -- as it did in 2017 -- once the tide turns for oil, gas, and the Texas economy.At the time of this writing, Ian Bezek owned shares of BP, CNQ, XOM, SLB, and ENB. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post 7 Deeply Discounted Energy Stocks to Buy appeared first on InvestorPlace.

  • BP Alaska deal fits Hilcorp's past strategy: 'Their junk is our gold'
    American City Business Journals

    BP Alaska deal fits Hilcorp's past strategy: 'Their junk is our gold'

    The $5.6 billion deal between Hilcorp and BP is pretty well in keeping with both companies' strategies.

  • Can These 3 Oil Giants Survive the Latest Round of Tariffs?

    Can These 3 Oil Giants Survive the Latest Round of Tariffs?

    The trade war with China is waging on, with the latest escalation coming on September 1 as the U.S. began imposing 15% tariffs on some Chinese goods. On the same day, China started targeting U.S. crude with a 5% tariff being placed on oil imports. Following the escalation, the Crude Oil WTI Futures fell 0.15% to $55.02 by 7:24 AM ET on September 2. "Economic uncertainty will continue to dominate the oil market’s agenda as new U.S. and China trade measures come into effect," said head of commodity markets strategy at BNP Paribas SA Harry Tchilinguirian. With this in mind, investors have expressed concerns as to whether 3 of the largest players in the space will be able to survive the latest round of tariffs in the ongoing trade war.Let’s take a closer look to see if analysts believe these 3 oil giants can emerge from this trade war escalation unscathed. Chevron Corporation (CVX)With shares down almost 3% in the month following its August 2 Q2 earnings release, investors are worried that the situation won’t improve thanks to the new tariffs. However, one analyst argues that Chevron’s commitment to improving key areas of its business will keep it on the path towards long-term growth. After hosting investor meetings with CFO Pierre Breber, Cowen & Co. analyst Jason Gabelman believes CVX has made substantial progress in its efforts to improve its return on capital employed (ROCE) with its plan to increase activity in the Permian basin. This is on top of the 5% to 8% year-over-year ROCE improvement it already saw in 2018. CVX has also taken steps to reduce execution and financial risk by limiting simultaneous major capital projects. Gabelman adds that Chevron’s approach to corporate responsibility makes it an attractive buy. “On environmental, social and governance (ESG), Mr. Breber highlighted a tension between managing fiduciary duty with societal responsibility. The company will not invest in a business where it does not have a competitive advantage, but understands it needs to be part of the energy future and is taking other steps such as reducing methane emissions,” the analyst explained. Based on all of the above factors, the analyst reiterated his Buy rating and $140 price target on August 30. Gabelman thinks share prices could surge 19% over the next twelve months. All in all, the Street agrees with Gabelman. CVX boasts a ‘Moderate Buy’ analyst consensus and a $143 average price target, suggesting 21% upside potential.   Exxon Mobil Corporation (XOM)Since its August 2 Q2 earnings release, Exxon has been faring even worse than Chevron with shares falling about 5% in the last month. In spite of this, a few analysts say this oil stock is worth the risk.Exxon is one of the largest energy companies in the world with a market cap of $290 billion. It also doesn’t hurt that it sports a strong balance sheet, with long-term debt at less than 10% of the capital structure and has a 5% yield which falls at high end of the company's historical range.The company has a diverse product pipeline that includes upstream (drilling), midstream (pipeline) and downstream (refining and chemicals). To expand this even more, XOM plans to spend $35 billion per year on various growth projects through 2025. Management claims these efforts are already paying off. “We continue to make significant progress toward delivering our long-term growth plans. Our new U.S. Gulf Coast steam cracker is exceeding design capacity by 10 percent, less than a year after startup,” CEO Darren Woods stated.Some members of the Street have cited the weakness in its downstream and chemicals segments as a cause for concern. In Q2, income generated by both fell well below consensus estimates. That being said, Merrill Lynch analyst Doug Leggate stated that Exxon still has a lot to brag about. “Exxon clearly faced headwinds throughout the first half of 2019, but we believe it is a top pick within the major oil group based on its attractive valuation versus the stock's fair value of $100 per share, a dividend yield of 4.5% affords investors to wait and a growth story that's now starting to play out,” he explained. As a result, Leggate reiterated his Buy rating and $100 price target on August 5. The analyst’s price target indicates share prices can soar 46% in the next twelve months.  In general, Wall Street is less bullish on this oil stock. XOM has a ‘Hold’ analyst consensus as well as an $81 average price target, implying 18% upside potential. BP plc (BP)The last oil stock on our list is also down in the month following its Q2 earnings release on July 30. In the last month, shares have fallen almost 4%. However, analysts still believe that there’s plenty of upside to be had, with BP boasting more double that of CVX and XOM.According to management, BP is “right on target” at the midpoint of its five year growth plan. The company was able to post an underlying replacement cost profit, a proxy for net profit, of $2.8 billion, compared to the $2.5 billion consensus estimate. The beat was driven by solid upstream production of 2,625K Boep/d (not including Rosneft production of 1,127 K Boep/d), up 6.5% from the year-ago quarter.Adding to the good news, BP is expanding its products to include more sustainable forms of energy. The company is making large investments into renewable energy and has even agreed to pay incentives for 36,000 employees to further reduce its operational emissions.As part of its efforts to explore other opportunities, BP announced that it had sold its Alaska operations to Hilcorp Energy Co. for $5.6 billion on August 29, allowing it to increase its focus on shale.Based on all of these positive developments, BMO Capital analyst Daniel Boyd initiated his BP coverage with a Buy and set a $53 price target on August 20. He thinks the stock price could rise 44% over the next twelve months. BP boasts a ‘Moderate Buy’ analyst consensus as well as a $53 average price target, implying 43% upside. Discover the Street’s best-rated stocks with the Top Analysts’ Stocks tool

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