|Bid||51.30 x 1400|
|Ask||51.68 x 900|
|Day's Range||50.80 - 51.79|
|52 Week Range||50.59 - 80.24|
|Beta (3Y Monthly)||0.72|
|PE Ratio (TTM)||8.30|
|Forward Dividend & Yield||1.22 (2.40%)|
|1y Target Est||N/A|
A U.S. government report reveals that crude inventories rose by 1.6 million barrels for the week ending Aug 9, very different to the 2.7 million barrels drawdown that energy analysts had expected.
The South Texas Drilling Permit Roundup is a weekly review of new drilling permit applications filed with the Railroad Commission of Texas for a 67-county area of South Texas.
Oil prices fell to their lowest levels since January last week as trade war fears returned. Energy stocks fell in sympathy and remain one of the weakest sectors heading into the new week. Today we'll analyze the downside reversal and identify three energy stocks to sell.Source: Shutterstock The easiest way to spot the bears' emergence in oil stocks is by using the Energy Sector ETF (NYSEARCA:XLE). We saw downside momentum surge during last week's whack suggesting the downtrend should have staying power. Volume surged alongside the slide revealing mass distribution and an environment where rallies should be suspect. The mid-week recovery was cut short ahead of the weekend. Friday's bearish reversal candle is seeing follow through this morning making now a prime time to deploy short trades in the sector. * 10 Real Estate Investments to Ride Out the Current Storm I've scoured its constituents and discovered three high-quality stocks to sell. Let's take a closer look.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Conoco Phillips (COP)Source: ThinkorSwim ConocoPhillips (NYSE:COP) carries one of the best characteristics for bearish candidates: relative weakness. This year's descent has far outpaced the energy sector making it one of the weakest large-gaps in the space. Last week's plunge pushed COP stock to a 52-week low, and it's now down 14% year-to-date.Thursday's rally was quickly reversed on Friday showing just how fast sellers are to reject any strength. With all major moving averages pointing lower and buyers unable to muster together more than a one-day rally, the path of least resistance remains lower.To bank on further weakness, buy the Nov $55/$50 bear put spread for $2.20. The risk is limited to the initial cost, and the reward is $2.80. Schlumberger (SLB)Source: ThinkorSwim Schlumberger (NYSE:SLB) also slipped to a 52-week low last week and found itself down 5% year-to-date. While the damage isn't as severe as what we've seen in COP stock, SLB remains in a secular decline with countless failed rallies. Thursday's rebound attempt was pathetic and rapidly reversed by Friday's slide.I see zero reasons to be bullish here or fight the trend, which is pointing lower across all time frames.Implied volatility sits at a lofty 40% or the 56th percentile of its one-year range so short premium plays are attractive right now. This should allow us to build a cash flow trade with robust metrics. * 7 Large-Cap Stocks to Sell Right Now If you're willing to bet SLB sits below $35 at September expiration then sell the $35/$37.50 bear call spread for 70 cents. The reward is 70 cents, and the risk is $1.80. Halliburton (HAL)Source: ThinkorSwim Halliburton (NYSE:HAL) rounds out our trio of bearish beauties. From a performance perspective, it's the worst of the three with a year-to-date loss of 27%. It has been poison to portfolios. Last week's oil drop didn't just push HAL stock to a new 52-week low; it knocked to its lowest level since 2009.As you would expect with such atrocious performance, everything on the chart points to lower prices. The trend on all time frames is cruising lower, moving averages are falling, and relative weakness has followed the stock like a hellhound.Implied volatility is sky-high at the 77th percentile of its one-year range. To combat the expensiveness of option premiums, spreads are a must.Buy the Oct $20/$17.50 bear put spread for around $1.05. The risk is limited to $1.05, and the reward is limited to $1.95.As of this writing, Tyler Craig didn't hold positions in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Large-Cap Stocks to Sell Right Now * 7 Stocks Under $7 to Invest in Now * 7 Marijuana Stocks With Critical Levels to Watch The post 3 Energy Stocks to Sell Now appeared first on InvestorPlace.
Integrated majors ExxonMobil (XOM), Chevron (CVX) and Royal Dutch Shell (RDS.A) were able to grow their production in the second quarter from a year ago.
US president Donald Trump has announced a near total economic embargo on Venezuela in an effort to force its president Nicolás Maduro out of office. Mr Trump on Monday signed an executive order freezing all Venezuelan government assets in the US. It also bars foreign nationals from undertaking financial transactions with the regime as Washington dramatically ratchets up pressure on Mr Maduro.
(Bloomberg) -- Oil traders will be paying for President Donald Trump’s tariffs on steel.On Friday, Plains All American Pipeline LP issued tariff rates to ship on its 670,000 barrel-a-day Cactus II pipeline moving oil from the prolific Permian Basin to Corpus Christi, Texas.While the tariff detailed the difference in rates between those with long-term volume commitments and those looking to ship on a monthly, spot basis, it also included a small footnote that outlined an additional peculiar surcharge.This additional surcharge, at 5 cents a barrel, will be effective April 1 of next year and is in connection to “increased construction costs as a result of governmental regulation and tariffs.” The filing with the Federal Energy Regulatory Commission adds that this fee will be assessed until such capital expenditures have been recovered by the owner.Trump’s tariffs on metal were put into place last year to aid the domestic steel industry as it competes with imports from abroad.It’s not the first time the oil industry has been impacted by steel tariffs. Last year, ConocoPhillips said that prices for steel used in pipes, valve fittings and other equipment rose by 26% since the start of 2018.Plains All American had earlier requested the federal government for relief from higher ferrous prices for Cactus II, citing that the duties will add $40 million to the cost of its Permian pipeline. The request was denied, however.To contact the reporter on this story: Catherine Ngai in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: David Marino at email@example.com, Joe CarrollFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
It's official. The United States' base interest rate, the Fed funds rate, has fallen for the first time in over a decade. The last time the Federal Reserve ratcheted interest rates lower was in 2008, when the subprime mortgage meltdown still was in full swing. The nation's central bank was willing to try almost anything to kickstart the recovery that finally took shape in 2009.The Fed's governors aren't nearly as desperate now as they were then. In fact, the country's economy remains surprisingly robust. Despite the measurable impact of an expanding tariff war with China and a handful of other trade partners, last quarter's initial GDP growth estimate of 2.1% topped expectations. While S&P; 500 corporate earnings for the second quarter are off 2.6% year-over-year so far, they're still expected to grow through at least 2020. The nation's unemployment rate remains near multiyear lows, too."The trajectory of growth is really turning a corner, and the Fed is trying to be proactive," Glenmede Investment Strategy Officer Michael Reynolds told Bankrate ahead of the decision. "The way we view an insurance rate cut is, it's a proactive move to protect against what seems to be potential but unpredictable risks."The Federal Reserve may not be done pushing interest rates lower, either. Futures traders are betting on another quarter-point cut being put in place in September, when the FOMC is slated to make such a decision again.Interest-rate cuts have a slew of effects that in turn help bolster some companies while chipping away at others. With a new lower-rate paradigm starting to gel, here are 10 stock picks that are perfectly positioned to get the most out of this environment of cheaper money. SEE ALSO: 50 Top Stocks That Billionaires Love
The International Chamber of Commerce's arbitration tribunal has dismissed U.S. oil company ConocoPhillips' $1.5 billion claim against Venezuelan state oil company PDVSA, according to a copy of the ruling seen by Reuters on Friday. The case related to Venezuela's breaking of a contract with Conoco regarding its stake in an offshore oil project called Corocoro. Under the arbitration ruling, PDVSA will have to pay only $33.7 million, plus interest, for an outstanding loan to Conoco, according to the ruling.
Investing in large-cap energy titans can add value and diversity to your portfolio. Luckily, the stock market is packed full of big energy companies that pay top dividends and regularly outperform.
The Zacks Analyst Blog Highlights: Schlumberger, ConocoPhillips, Chevron, Exxon Mobil and Imperial Oil
(Bloomberg Opinion) -- One word to describe this week in energy stocks is “painful.” Another is prologue.Energy stocks were not particularly popular coming into this week anyway. To one degree or another, they were losing the confidence of investors that they will manage their capital responsibly and profitably.Now their deserved reputation for squeezing ever more oil and gas out of shale has also taken a big knock. Concho Resources Inc. plunged 22% on Thursday, to its lowest level since the panic of early 2016, after it cut guidance and revealed weak results from an experimental project of drilling wells much closer together than usual. Other Permian producers, such as Diamondback Energy Inc., also took a hit on fears this reflects a shale-productivity issue, rather than just a Concho issue. It’s sobering to think that Concho, valued at more than $23 billion in the spring of 2018 and having since absorbed the $7.6 billion purchase of RSP Permian Inc., now sports a market cap of less than $16 billion.Meanwhile, the industry also has a problem with a man who is nominally its champion: President Donald Trump. His offhand tweet-threat of more tariffs on Chinese goods on Thursday afternoon took what was already a flaming dumpster fire, hitched it to a truck and took it straight over a precipice (the Federal Reserve’s quarter-point rate cut fading quickly in the rear-view).Trust, trip-ups, Trump. They seem like separate problems for the sector, but they actually add up to the same problem: cost of capital.Equity and bond issuance has faltered across the energy sector. Services giant Schlumberger Ltd., which has talked consistently of a recovery for several years, just changed its CEO, and its stock languishes around levels plumbed during the financial crisis. The pipeline sector, meanwhile, is undergoing a painful transformation away from the once-dominant (and so hot) master limited partnership structure. Missed expectations there are punished swiftly, while good behavior is rewarded with a stable, rather than surging, stock price.Concho’s problems with its “Dominator” project affected only a small minority of the wells it has drilled so far this year. But investor tolerance for wasted capital – as well as sharp revisions to guidance given only a few months ago – has evaporated. When Pioneer Natural Resources Co. surprised in mid-2017 with a snafu of its own, its stock was trading at parity with the market and a one-third premium to the sector in terms of Ebitda multiple. It never recovered that poise. Today, it trades below both.Many companies in an industry predicated on growth are struggling to make the pivot to prioritizing return on capital and shareholder payouts. It has traditionally been a sector that took in capital rather than spat it out. This is a particular problem for smaller and mid-cap companies, which tend to carry higher unit costs and struggle to attract attention and investors (though not, of late, activists). And a new report from Rystad Energy, a research and analytics firm, suggests smaller is worse when it comes to productivity too(1):The basic equation here – rising cost of capital and flat-but-volatile oil prices – demands radical change. There’s really no reason why dozens and dozens of companies should be cheek-by-jowl in the Permian basin, other than a steady flow of external capital that has dried up.If, as seems likely, 2020 hosts a confluence of weaker economic growth – with added Twitter trade-war frisson – and high non-OPEC production growth, this week’s wash-out will have been a mere prologue to what’s coming. The cure is consolidation, which would cut costs and rein in the barrels pushing into an already oversupplied market. However, it appears we still aren’t quite there yet.One obvious potential acquirer, ConocoPhillips, was asked on this week’s earnings call whether falling E&P valuations had piqued its interest. In response, the COO said:We still believe that there is a mismatch between what people expect for their assets and what we compete as a use of capital for our capital, and that may change over time.Translation: Stuff isn’t cheap enough yet.One obstacle to deals is, paradoxically, something that also lies behind the sector’s chronic de-rating: misaligned incentives for management vis-a-vis shareholders. In a new report, Evercore ISI analyst Doug Terreson calculates that, for a sample of nine large E&P companies, the average value of the pool of stock and option awards held by their CEOs at the end of 2016 was $26 million. By the end of 2018, that had risen by $21 million – of which just $1 million reflected higher share prices; the rest was new awards. The total return of the E&P sector in that time was negative 35%.As long as the corner office enjoys a more positive outcome than shareholders do, it suppresses any willingness to negotiate a deal that could change the occupant of that corner office. As this week demonstrates, though, pressure for change is building inexorably. The cost of capital is getting just too damn high.(1) In the accompanying chart, 'Majors' refers to BP, Chevron, Exxon Mobil, Occidental Petroleum and Royal Dutch Shell. The 'Top-10' public companies are Anadarko Petroleum, Apache, Cimarex Energy, Concho Resources, Devon Energy, Diamondback Energy, Encana, EOG Resources, Parsley Energy, and Pioneer Natural Resources. These are the top 10 operators bynumber of horizontal unconventional well-completions in the Permian shale basin, according to Rystad Energy's figures.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 Energy sector is poised to see two consecutive quarters of earnings deterioration, after strong earnings growth in each of the four quarters of 2018.
Australian oil and gas explorer FAR Ltd on Wednesday said that a tribunal ruling is expected by the end of 2019 for its arbitration with Woodside Petroleum Ltd over the latter's stake in the SNE oil project off Senegal. FAR is currently in arbitration over the sale by ConocoPhillips of a 35 percent interest in the SNE project to Woodside for $350 million in 2016. FAR had contended that it should have had pre-emptive rights over the ConocoPhillips stake, which was sold for what it considered a cheap price.