|Bid||63.96 x 1200|
|Ask||64.24 x 1800|
|Day's Range||63.93 - 64.65|
|52 Week Range||56.75 - 80.24|
|Beta (3Y Monthly)||0.70|
|PE Ratio (TTM)||12.02|
|Forward Dividend & Yield||1.22 (1.83%)|
|1y Target Est||N/A|
ConocoPhillips (COP) closed at $63.97 in the latest trading session, marking a -1.13% move from the prior day.
High margins and a huge footprint were the reasons behind energy giant Chevron (NYSE:CVX) finally pulling the trigger and buying independent rival Anadarko (NYSE:APC) last week. The deal seemed to be a match made in heaven for CVX stock and its investors. It had everything that Chevron could want. And APC stock investors were also smiling after a few years of scraping by. Yep, everything seemed to be going just right for CVX.Source: Bureau of Safety and Environmental Enforcement via FlickrThat is, until another buyer stepped up to the plate.It turns out that Anadarko would be a great fit for another integrated oil giant. No, not Exxon (NYSE:XOM). We're talking about often-forgotten Occidental Petroleum (NYSE:OXY). For OXY, Anadarko represents a chance for it to finally join the supermajors and gain access to even more land in its core areas.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor Chevron, the booming buyout battle represents a major headache as it'll be forced to step even further up to the plate. Chevron Gets OverbidAs we said, Anadarko features plenty of assets that fit under Chevron's umbrella perfectly. The key to CVX's $33 billion bid and 39% premium is the prolific Permian Basin. The Permian continues to be the hotbed of drilling activity in the U.S. as its geology makes it wonderful for fracking and horizontal drilling. Thanks to its low-costs, high-margins and abundance of oil, the Permian has cemented itself as the place to be in America's shale. * 7 Dividend Stocks That Could Double Over the Next Five Years Both Anadarko and Chevron have been very active in the Permian and the deal would connect their acreage together -- with CVX controlling more than 1.4 million net acres. The synergies write themselves.But Chevron isn't the only one with massive holdings in the Permian. OXY isn't no slouch either. The firm is one of the largest acreage owners, holding about 2.7 million net acres in the region. It produces about 10% of the Permian's total oil production. All in all, the Permian represented about 57% of OXY's total production last year.Anadarko would represent a great addition to OXY's overall system in the area.For starters, APC's production would boost Occidental's overall output to more than 1.5 million barrels per day. This would instantly push OXY to the top chunk of the E&P pack. For example, ConocoPhillips (NYSE:COP) only produces about 1.3 million barrels per day. And there's an opportunity to boost that further with Occidental's expertise of enhanced oil recovery/CO2 injection in the area. Analysts peg that OXY could pull a potential to 1 million barrels per day from APC's assets by the late 2020s.Secondly, like with Chevron, Anadarko's assets would represent a chance to pull costs lower and improve margins. This includes APC's midstream assets -- which OXY pays to use already. The cost savings alone would help OXY's bottom line. Occidental estimates that the buyout can increase free cash flow by $3.5 billion over the next two years through these synergies and CAPEX reductions.Finally, many of Anadarko's other assets -- such as global deepwater and liquefied natural gas -- would represent new areas of operation for Occidental. However, OXY has a rich global portfolio and can spin-off/sell these non-core items to help pay for the deal and bring in extra cash.All in all, OXY and APC makes as much sense as the combination for Chevron. So, it's no wonder why OXY topped Chevron's bid by about $11 per share. Chevron Will Need To Buckle DownFor Chevron, this poses a big problem. As we said, it takes a take boost in production to move the needle at such a giant energy stock. And with production flatlining for most the majors, CVX has to buy someone the size of Anadarko to make a real dent in its production issues. And the assets here are just perfectly matched to suit CVX's needs.That means CVX is going to be forced to up its bid in order to get what it wants.Chevron has deep pockets, so scoring APC won't be a problem. But it's going to have to cough up plenty of extra cash to do so. Analysts estimate that CVX will need to add between $5 to $10 per share to its bid just to have a chance to score Anadarko. But that still might be enough as APC shares have traded above the price OXY is willing to offer. Meanwhile, Occidental has hinted that it will challenge the buyout if Chevron wins and their offer isn't marginally better.All of this could hinder the appeal of the deal for Chevron. The original buyout is already large. Tacking on extra cash and shares to sweeten the pot could hurt some of the synergies and benefits as well as stretch out the time until the deal truly pays off. That's something to consider. Chevron? OXY? The Real Winner Is AnadarkoBidding wars like this in the energy sector are very rare. In fact, they never happen. So, it'll be interesting to see how this plays out. Both OXY and Chevron are moving into unknown territory and the costs to play could be high. The real winner in this situation could be Anadarko.After suffering for a few years, APC stock is on fire because of the buyout potential. And no matter who buys it out, the premium is certainly nice for shareholders. And we can't forget about the other majors like Exxon who could make the love triangle a foursome. * 5 Hot Dividend Stocks to Buy as the Weather Heats Up In the end, APC stock could be the way to play the most exciting M&A opportunity in the energy patch in a long time. Disclosure: At the time of writing, Aaron Levitt did not hold a position in any stock mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks That Could Double Over the Next Five Years * 6 S&P 500 Stocks Ready to Break Out * 5 Mining ETFs to Dig Into Compare Brokers The post Occidental Petroleum Fires Back at Chevron, Starting a Bidding War for Anadarko appeared first on InvestorPlace.
Occidental Petroleum: What to Expect from Its Q1 EarningsOccidental Petroleum’s earnings Occidental Petroleum (OXY) is scheduled to announce its first-quarter results on May 6. Analysts expect the company’s core earnings per diluted share to
Oil: There Might Be another Rally in the Cards(Continued from Prior Part)Oil-weighted stocks On April 17–24, our list of oil-weighted stocks rose 1%—compared to the 3.2% rise in US crude oil June futures. On average, our list of oil-weighted
I am not a fan of this administration, but its recent efforts to force Iran and Venezuela out of the oil markets are having an effect: It's bringing some dead oil stocks back to life.Source: Shutterstock The big winners are domestic producers that, as in the Princess Bride, weren't all dead … just mostly dead. These are companies like Extraction Oil & Gas (NYSE:XOG) and Devon Energy (NYSE:DVN).What they have in common are steady production and balance sheets that let them put their new gains into something other than paying back old debt. If they can buy their own stock instead, it can float upward and that gives them a currency with which to do new deals.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Speculators WinThis has been a play for speculators, not investors, because if you were buying and holding these stocks over the last year or two, you're wondering what the excitement is about.Take Extraction Oil as an example. This stock is up 30% since the start of the year. Much of that gain has been achieved in just the last week, before April 23, as the price of West Texas Intermediate (WTI), the primary U.S. grade, has gone from $60 per barrel to $65. * 10 Oversold Stocks to Run From Extraction has had been profitable since last spring, but its balance sheet still shows $1.4 billion in debt, against a market cap of $946 million, when the stock opened for trade April 23. Over the last year, it is down 60%. It's only this month that it has started to pay off.Devon is in much better financial shape. It remained profitable during the worst of the oil bust, which started in 2014, reporting 2018 net income of $1.14 billion. The balance sheet shows debts of just $5.8 billion on a market cap of $15.4 billion.Yet if you have been in this name for a year, you have just broken even, and over two years, the return is a negative 10%. The dividend, currently at 9 cents per share, a yield of 1.14%, doesn't make up that loss. What you needed to do was time your trade to the start of the year. If you bought early in January, you have a gain of over 50% in Devon.This is a game for traders and speculators, not investors.What the small fry hope for is a bailout, from a major oil stocks player like Chevron (NYSE:CVX).Chevron recently announced it will buy Anadarko Petroleum (NYSE:APC) for $33 billion. Or try Conoco Philips (NYSE:COP), which has sold assets to firm up its balance sheet. It could now buy back stock or a smaller domestic producer. Analysts are pounding the table for these stocks.But what they're pushing are sellers, not buyers. Conoco Philips has been a net seller of assets. Anadarko is trading above the Chevron bid because Occidental Petroleum (NYSE:OXY) may still launch a hostile bid for the company.In any case, what analysts are praying for is consolidation. Fewer players, more concentrated in the Permian, could become "swing producers" that can hold prices steady, and increase production when the market is tight, limiting it when the market is glutted. The Bottom Line on Oil StocksIran is going to come back online. Venezuela is going to come back online. Huge new pools of oil, like the one Exxon Mobil (NYSE:XOM) has found off Guyana, are going to come online.Production will rise, and demand will fall, because there are now alternatives to oil in the market. Efficiency, technology, and renewable energy are still the market drivers. The Permian "control" of the market has a sell-by date, and you don't want to be long when it comes.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Oversold Stocks to Run From * 7 Red-Hot E-Commerce Stocks to Consider * 4 Stocks Surging on Earnings Surprises Compare Brokers The post Why Dead Oil Stocks Are Rising From the Grave appeared first on InvestorPlace.
ConocoPhillips' (COP) first-quarter earnings will likely get a boost from rising liquids production. However, lower oil prices may affect its results.
ConocoPhillips' (COP) contract includes the delivery and installation of a subsea production system as well as the installation of umbilical, rigid flowlines and related subsea equipment.
Juniper (JNPR) is likely to report lower y-o-y revenues in the first quarter due to challenges within the cloud vertical and risks related to the partial U.S. federal government shutdown.
Sony (SNE) is likely to report lower-than-expected sales in Financial Services, Semiconductors, Mobile Communications, and Imaging Products & Solutions segment in the fiscal fourth quarter.
Hess' (HES) first-quarter results will likely get a boost from rising production. However, lower worldwide average selling prices are concerning.
Shell's (RDS.A) decision to offload stakes in SASREF refinery is part of its divestment drive in a bid to streamline its portfolio and slash debt.
While pricing and output gains are likely to fuel Chevron's (CVX) upstream unit in Q1, the downstream segment is expected to feel the heat of weak margins.
ConocoPhillips (COP) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
While the North America business environment remains challenging, both Schlumberger (SLB) and Halliburton (HAL) expect international drilling activity to continue with the broad-based recovery.
US Crude Oil Is Heading for a New HighUS crude oilOn April 22, US crude oil prices rose 2.3% and settled at $65.55 per barrel—the highest closing level for active US crude oil futures since October 31, 2018. On April 22, the US announced that the
What Might Impact US Oil Exports in the Coming Days?(Continued from Prior Part)Brent-WTI spread and US upstream companiesThe widening gap between Brent and WTI crude oil prices could benefit US crude oil exporters. Any rise in the spread could help
TechnipFMC : * Awarded a Significant Integrated EPCI Contract for the ConocoPhillips TOR II Development * For TechnipFMC, a “significant” contract ranges between $75 million and $250 million.
Why Apache’s Earnings May Halve in Q1 2019Apache’s earningsApache (APA) is set to announce its first-quarter results on May 1. Analysts expect its adjusted EPS to fall ~52% sequentially in the quarter. Meanwhile, they
In fiscal Q2, slowdown in domestic onshore drilling activity could impact Helmerich & Payne's (HP) largest segment - U.S. Land.