61.10 +3.76 (6.56%)
Pre-Market: 4:43AM EDT
|Bid||0.00 x 900|
|Ask||61.00 x 2200|
|Day's Range||56.87 - 57.70|
|52 Week Range||50.13 - 80.24|
|Beta (3Y Monthly)||0.80|
|PE Ratio (TTM)||9.25|
|Earnings Date||Oct 29, 2019|
|Forward Dividend & Yield||1.22 (2.17%)|
|1y Target Est||74.05|
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.
A World Bank arbitration panel lowered an initial $8.7 billion award to U.S. oil company ConocoPhillips as compensation for Venezuela's 2007 expropriation of its assets to $8.5 billion, according to a decision dated Aug. 29 posted online. The new award will represent savings of $200 million from the first award in April, Venezuelan opposition leader Juan Guaido's overseas legal representative said on Twitter on Monday. A ConocoPhillips spokesman said the rectification lowered the award by $227 million and that the company "does not challenge" the action.
Details the 52-week lows of the following companies: Altria Group, ConocoPhillips, Simon Property Group, Bank of New York Mellon, Occidental Petroleum and Carnival Corp Continue reading...
East Timor is looking to real in some serious upstream investment from China in order to develop its potentially $50 billion in oil & gas reserves
Liquefied natural gas producer ConocoPhillips announced new production sharing contracts with East Timor for the ageing Bayu Undan gas field on Saturday, following the implementation of a new maritime border with Australia. The gas condensate deposit in the Timor Sea, 250 km (155 miles) south of East Timor and 500 km (311 miles) north of Australia, now falls within the small Pacific nation's jurisdiction, after it ratified the Maritime Boundary Treaty on Friday.
The Zacks Analyst Blog Highlights: ExxonMobil, Chevron, ConocoPhillips, Valero Energy and Marathon Petroleum
The decline in oil inventories was the largest in the U.S.in five weeks, and came in tandem with a fall in gasoline and distillate supplies.
ConocoPhillips (COP) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
(Bloomberg Opinion) -- Given a sad history of exploitation by foreigners, the young democracy of Timor-Leste can hardly be blamed for being hell-bent on self-sufficiency. But its current drive to cement its independence risks squandering the faltering progress the country has made. If the government doesn’t tread carefully, a future of debt peonage to China beckons.Friday marks the 20th anniversary of the final dark episode in Timor-Leste’s 24-year occupation by Indonesia, which killed about 100,000 Timorese and came after centuries of colonial neglect by Portugal. On Aug. 30, 1999, a referendum delivered an overwhelming majority in favor of independence for the half-island also known as East Timor, but unleashed a wave of retaliation from Indonesian forces and militias that left more than 1,400 dead and destroyed public infrastructure.Australia, the most forthright defender of Timor-Leste in that period, turned around to betray its new neighbor five years later. During negotiations over how to divide the oil and gas reserves along the undersea boundary between the two nations, Canberra used the cover of a foreign aid project to install listening devices in the office of Timor-Leste’s prime minister and eavesdropped on negotiating tactics, thus winning a larger share of resources for itself.Timor-Leste has nonetheless managed to pick itself up. Gross domestic product per capita more than tripled in the first decade after formal independence in 2002, before slumping with oil prices in the years since. Infant mortality rates have been cut nearly in half, while secondary school enrollment has roughly doubled.More to the point, the nation’s mineral wealth has been managed with more foresight than is normally the case with poor, newly independent states.The country’s Petroleum Fund has assets of around $15.8 billion, equivalent to more than eight years’ worth of non-petroleum GDP. Relative to the size of the economy, that’s larger than the sovereign wealth funds of Saudi Arabia, Kuwait or Norway. Drawing on fund surpluses to finance budget deficits has left Timor-Leste with minimal levels of public debt. In terms of corruption, the country scores around the same levels as Brazil, Thailand and Colombia, and ahead of Vietnam – not a terrible result, given the circumstances.It’s not all so positive. Half of employment is in agriculture, mostly at subsistence levels, and the country struggles to feed itself. Levels of undernourishment have declined only slightly and remain among the world’s highest.Worse lies ahead. The Bayu-Undan offshore gasfield which has provided Timor-Leste’s petroleum wealth for the past few decades will run out by 2023. The Petroleum Fund will be exhausted a few years later, according to one 2014 study. Further revenues will depend on developing the nearby Greater Sunrise field – and there the problems of self-sufficiency become most apparent.Bayu-Undan’s gas was brought ashore in the Australian city of Darwin, but Timor-Leste’s government is determined that Greater Sunrise product will be processed at home as the heart of a major new industrial zone, known as Tasi Mane. For all the powerful nation-building symbolism and potential revenue from such a plant, Tasi Mane may never be viable – especially given the collapse in gas prices and extreme difficulty around the world in financing major new projects. Building a whole new facility on Timor-Leste’s coast will cost around $12 billion, according to a 2016 report, even making the dubious assumption that it’s physically possible to build a pipeline through the seismically unstable Timor Trough to get there. A far better option would be to hook into the ready-made export terminal in Darwin or use a floating LNG plant instead – but those have been ruled out by Timor-Leste’s government.“The Timorese leadership has thrown all their economic eggs in this one basket because it has limited other options,” said Bec Strating, an expert on the country at Melbourne’s La Trobe University, “but I’ve never met an oil or gas expert who thinks this is a workable project.”The original commercial partners in Greater Sunrise are voting with their feet. Timor-Leste spent $650 million over the past year buying ConocoPhillips and Royal Dutch Shell Plc out of the venture, leaving only Woodside Petroleum Ltd. and Osaka Gas Co. The former has been adamant it won’t put significant amounts into developing Tasi Mane. With commercial finance steering clear, the most likely option increasingly looks like China’s Belt and Road Initiative. National oil company Timor Gap earlier this year signed a $943 million construction contract with a unit of state-owned China Railway Construction Corp. Countries in the region “go where they can to obtain either grants or soft loans,” former Timorese President Jose Ramos-Horta said in an interview with SBS News last year. “And that, today, is China.”Such a prospect risks a tragic waste of Timor-Leste’s potential. The Belt and Road is already notorious for building costly bridges to nowhere that leave governments with little to show beyond hefty interest bills. China’s growing presence in the Indo-Pacific via the Belt and Road has raised concerns that military and strategic aims, rather than purely commercial logic, underlie many of the projects. A $500 million highway built for Tasi Mane by a Chinese consortium in recent years and a $120 million airport are looking like white elephants.Gas-export plants are in any case too narrow a base for a national economy, with just 350 local employees at the ConocoPhillips terminal in Darwin. More likely, the orgy of contracts that a multi-billion-dollar infrastructure project would kick off will offer a potent temptation for the sort of public corruption that Timor-Leste has so far mostly been spared. It’s understandable that this young country feels betrayed by its neighbors. Entering a new abusive relationship with Beijing isn’t likely to be the right way to secure its future.To contact the author of this story: David Fickling at email@example.comTo contact the editor responsible for this story: Patrick McDowell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Enbridge Inc.’s proposed shift to long-term crude shipping contracts on its Mainline pipeline network is drawing the ire of a growing number of producers, and now Canada’s energy regulator is getting involved, which could delay the process.After ConocoPhillips and Canadian Natural Resources Ltd. became the latest companies to object to Enbridge’s search for long-term shipping commitments, the regulator on Tuesday asked all involved to present their views. It’s asking for arguments on whether the so-called open season should be delayed until the new system has been approved by the regulator. Enbridge has argued that it needs the commitments before it seeks approval.The tussle is just the latest outcome of a pipeline bottleneck that’s dogging the Canadian oil industry as producers await major projects like Keystone XL and the Trans Mountain expansion to be built. With a dearth of options, producers fear a shift from the current monthly sign-up system will leave them less room to maneuver.Enbridge says that long-term contracts, which would only apply to Canadian segments of the system, would be the best way to balance the needs of all shippers. The change could also lend an advantage to some of the largest refiners in the U.S. Midwest, such as BP Plc and Exxon Mobil Corp., who source crude on the Mainline, according to Mike Walls, an analyst at Genscape Inc.“Producers are concerned that if a relative few large refiners in the U.S. control a large portion of the Mainline space, their access to customers will be limited as well as their ability to get to more diverse markets like the Gulf Coast,” Walls said in an email. “They would have less spot capacity and in the end would have to sell to the owners of the committed capacity.”Exxon declined to comment. BP didn’t immediately respond to a request for comment.Enbridge wants to reserve as much as 90% of space on the Mainline to companies with multiyear contracts, charging them whether they ship oil on the line or not. The 2.8 million barrel-a-day Mainline has seen heavy rationing as surging production has run into nationwide pipeline bottlenecks. Enbridge aims to start sending contracted volumes down the line in 2021.“The offering that we’ve got in that open season is responding to the needs of our customers and is supported by shippers representing the majority of the volume on our system,” Guy Jarvis, Enbridge’s executive vice president for liquids pipelines, said by phone. In his objection Tuesday, Canadian Natural President Tim McKay argued that the plan disadvantages non-integrated producers in favor of “shippers who can supply their own downstream” facilities.Separately, ConocoPhillips Canada President Kirk Johnson said the plan creates uncertainty for companies with contracts to ship on connecting pipelines such as the Flanagan South system that runs from Illinois to Oklahoma. The plan already has drawn objections from Suncor Energy Inc., Canada’s largest integrated energy producer, as well as oil-sands driller MEG Energy Corp. and the Explorers & Producers Association of Canada, which represents small- and medium-sized producers.To contact the reporters on this story: Robert Tuttle in Calgary at email@example.com;Kevin Orland in Calgary at firstname.lastname@example.orgTo contact the editors responsible for this story: David Marino at email@example.com, Carlos Caminada, Simon CaseyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- There goes the other pipeline. Back in the day, BP Plc was sometimes dismissed as a “two-pipelines company.” This referred to two of its biggest positions: The Forties field and pipeline system in the North Sea and the Trans Alaska Pipeline bringing oil south from the Prudhoe Bay wells in Alaska. Forties was sold off in 2003 (the field) and 2017 (the pipes). Now, BP is leaving Alaska.In some respects, the $5.6 billion sale of the company’s Alaska portfolio is par for the course. BP has been selling assets for much of this decade in order to fund compensation and reshape the business after 2010’s Macondo blowout. More generally, selling mature oil and gas fields to smaller, independent companies planning to squeeze out more is a standard part of the development cycle. In 2003, Apache Corp. took Forties; the Alaska sale is to privately held Hilcorp Energy Co. To be an oil major is to be constantly ranking projects in terms of potential and deciding if you’re better off keeping them or flogging them.Yet the symbolism is inescapable. Alaska is embedded deeply in BP’s history and identity. Former CEO Lord John Browne, who led the late 20th-century mega-mergers that transformed BP from a two-pipeline company, kicked off his career there in 1969, just after BP struck oil. One of those big deals he ended up doing, the $33 billion acquisition of Atlantic Richfield Co. in 2000, was predicated in part on consolidating BP’s position in Alaska – only for antitrust regulators to force the sale of those particular assets to Phillips Petroleum Co. (now ConocoPhillips).Back then, BP was on the hunt for “elephants,” or giant oil and gas fields that typically took many years – and country-sized balance sheets – to develop. Hence Browne’s acquisition spree.The world has moved on. While producers still relish big discoveries, the intervening boom and bust in oil prices has made investors leery of big-ticket investments and more demanding in terms of payouts. Apart from, by and large, holding capex budgets in check, oil majors have been retreating from traditional strongholds, with Royal Dutch Shell Plc virtually leaving the Canadian oil sands, Chevron Corp. recently exiting the U.K. North Sea and Exxon Mobil Corp. putting its Norwegian assets up for sale. BP put its own Norwegian business into a joint venture in 2016.Meanwhile, they have been diverting cash to dividends and buybacks in order to keep investors onside – BP’s stock yields almost 7% – as well as directing more of their capex to shorter-cycle shale development.BP paid BHP Group Plc $10.5 billion in cash for its shale assets last year. Besides reducing BP’s leverage at a dicey time for oil prices, the Alaska deal can be seen as swapping out of an old, conventional position to help fund expansion in unconventional oil and gas. In that sense, selling Alaska throws the spotlight on these new assets where, like several of its peers, BP is trying to prove that the majors’ scale – which worked in such places as Alaska – can also be an advantage in shale.Alaska is viewed by some as a growth area, particularly – with grim irony – as climate change and the energy-dominance aspirations of the current U.S. administration open up more of it for potential development. However, as a sensitive, remote and challenging environment, it carries extra risks and costs for producers, including the potential for future administrations to restrict activity there again. The state’s oil boom truly began when the panic of the 1973 oil shock swept aside opposition to the construction of the Trans Alaska Pipeline. Its future from here will be shaped at least in part by the challenges of excess oil and associated emissions.Faced with this much change and the need to adapt, there really can be no sacred cash cows.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.
Today, the API plans to release its oil inventory data for the week ended August 23. Reuters suggests a decline of 2.5 million barrels in oil inventories.
Exxon Mobil (NYSE:XOM) stock needs something to move the needle. Shares in the oil and gas giant have been stagnant year-to-date. The stock opened 2019 at $67.35. At the market close Aug. 23, shares traded at $67.49. But in the long term, could investors see a material boost in the XOM stock price? The company is making big moves to ramp up production, with expectations to double earnings by 2025.Source: Jonathan Weiss / Shutterstock.com Should investors join the ride and buy XOM stock? Or with the specter of a recession looming, should they sit tight and buy at a better price?Let's take a closer look at XOM and see what's the verdict.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Increased Exploration Offers Opportunity (and Risk)As I discussed in July, the company is pursuing high-ROI exploration opportunities. So far, their Permian Basin project has been a large success. Based on the most recent earnings announcement, production is up 20% from the prior quarter, and up 90% year-over-year. The company's Guyana project is still in the early stages. But Exxon Mobil expects gross production could be over 750,000 barrels per day by 2025.Exxon Mobil stock needs exploration success to move the needle. The company's upstream operations are the current profit driver. Downstream (refining and marketing) operations continue to struggle. The refining unit swung from a $256 million loss in the first quarter of 2019 to $451 million in earnings for the second quarter. But quarterly earnings continue to be down from the prior year's quarter ($724 million).Refining margins are starting to improve, and the company is wrapping up required maintenance. XOM's chemical unit also continues to struggle. Unit earnings for the quarter were $188 million, down from $518 million in the first quarter of 2019. * 7 "Boring" Stocks With Exciting Prospects But it isn't all smooth sailing. A lot could change in the oil market between now and 2025. A global recession could cause oil prices to fall further. Even if Exxon's new exploration efforts have a low breakeven point, the return on investment would be impacted.As InvestorPlace contributor Will Ashworth discussed last week, the company is taking a big risk boosting exploration efforts. The potential payoff is significant. But when oil could potentially fall further in the coming years, their capital investments may not produce a significant return. In addition, cash flow could decline, threatening both the dividend and the XOM stock price.With this in mind, is XOM stock worth the risk? Let's take a look at valuation and see how Exxon Mobil stock stacks up to peers. XOM Stock ValuationExxon Mobil stock continues to trade at a premium to its integrated oil and gas peers. XOM stock trades at a forward price-to-earnings ratio of 14.4. The company's enterprise value/EBITDA ratio is 9.4. Here are the corresponding earnings multiples of the company's closest competitors:BP (NYSE:BP): Forward P/E of 9.4, EV/EBITDA of 5.8Chevron (NYSE:CVX): Forward P/E of 13.7, EV/EBITDA of 7.4ConocoPhillips (NYSE:COP): Forward P/E of 12.1, EV/EBITDA of 4.1Royal Dutch Shell (NYSE:RDS.A, NYSE:RDS.B): Forward P/E of 9.2, EV/EBITDA of 5.5The company's high dividend yield (5.2%) may help sustain the XOM stock price. With interest rates continuing to fall, it's tough to find a high-quality 5%+ yield in today's market. But is the company's dividend sustainable? Exxon's payout ratio is currently almost 80%. This means that the company needs increased earnings to grow the dividend. XOM is for now a dividend aristocrat. But a tougher oil market and increased capital expenditures could change that. Any sort of slowdown in the annual dividend increase (or a dividend cut) could materially impact the XOM stock price. Exxon Mobil Stock Is Stable, But Not a Big OpportunityExxon Mobil stock is not the biggest opportunity in the oil and gas space. While the company is making big moves with their Permian and Guyana projects, this ramp-up in capital investment is going on as global oil prices remain volatile. If oil sees a jump in price over the next five years, the XOM stock price will see a massive boost. But if oil prices continue to fall, the company may not be able to continue their long track record of growing the dividend.What does this mean for investors? Should they avoid Exxon Mobil stock? The other oil and gas names may be better buying opportunities. But a material drop in the XOM stock price could make it a screaming buy. However, with the stock's current high yield, it is doubtful the stock will start trading closer to the valuation of its peers.XOM stock is stable, but look elsewhere for big returns.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 "Boring" Stocks With Exciting Prospects * 15 Cybersecurity Stocks to Watch as the Industry Heats Up * 5 Healthcare Stocks to Buy for Healthy Dividends The post Don't Count on High Returns With Exxon Mobil appeared first on InvestorPlace.
Saudi Aramco, the state-run oil conglomerate of Saudi Arabia, has replaced its chairman as it gears up for an IPO after plans to go public faltered last year. Aramco has named Public Investment Fund head Yasir Al-Rumayyan, a known ally and a key adviser of Crown Prince Mohammed Bin Salman.
Crude is up after API reports an 11 million-barrel drop ahead of the Department of Energy's report. Within the oil space, BP is selling its operations in Alaska to HIllcorp for $5.6 billion, and as Saudi Aramco is prepping for its IPO, Aramco Trading has sold the first U.S. West Texas Light crude to South Korea's Hyundai.