|Bid||124.94 x 1400|
|Ask||124.99 x 800|
|Day's Range||124.60 - 125.41|
|52 Week Range||100.22 - 128.55|
|Beta (3Y Monthly)||0.80|
|PE Ratio (TTM)||17.29|
|Earnings Date||Aug 2, 2019|
|Forward Dividend & Yield||4.76 (3.82%)|
|1y Target Est||137.67|
As oil prices get volatile, it's imperative to know integrated energy stocks' outlook. Analysts’ mean price targets for Chevron (CVX), Royal Dutch Shell (RDS.A), ExxonMobil (XOM), BP (BP), Total (TOT), and Suncor Energy (SU) suggest that SU has the highest upside potential of 36%. TOT and RDS.A follow with 32% and 29% upside potential. This […]
Exxon Mobil (NYSE: XOM) stock is treading water. After rallying from roughly $69 in January up to over $83 in April, shares in the oil and gas giant have dipped below the $75 level.Source: Shutterstock While offering a solid dividend yield, a lack of catalysts means the XOM stock price will likely stay within the $70 to $80 trading range. Read on to see why Exxon Mobil stock continues to be a hold. Downstream Business Facing ChallengesFor the first quarter of 2019, the big oil firm saw quarterly earnings fall from $6 billion to $2.35 billion. Downstream (refining) was the biggest cause of the earnings decline.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOne-time events such as asset sales in Q4 can explain some of the downstream earnings decline. But the lion's share was due to lower refining margins. The downstream segment went from a $2.7 billion profit in Q4 2018 to a $256 million loss in Q1 2019. * 7 Stocks Top Investors Are Buying Now Scheduled maintenance was another factor in the downstream unit's weak performance. Moreover, the company expects to spend similar amounts on maintenance in Q2. Upstream Offers Stability in XOM StockWhile the downstream business faces headwinds, upstream provides some positives for the XOM stock price. The company continues to increase production in the Permian Basin. Exxon Mobil's exploration off the coast of Guyana has also yielded strong production opportunities.In their June 2019 JP Morgan Energy Conference presentation, Guyana and other projects provide a high internal rate of return with a low breakeven rate. The company's expertise in developing new production partially outweighs the cyclicality of the downstream refining business.The relative strength of the exploration and production segment has blunted refining challenges. But additional weakness across Exxon Mobil's other business lines could hurt Q2 results. Q2 Earnings OutlookExxon Mobil is scheduled to release Q2 earnings in early August. While the company expects improved refining margins, this may not be enough to counter additional issues. Analysts project the oil firm's natural gas and chemical businesses to lower operating earnings.A decline in natural gas prices offsets an estimated $400 million to $600 million boost to Exxon Mobil's profitability from increased crude oil prices. Low margins and continued maintenance negatively impact the chemical unit.While earnings growth does not appear to be in the cards, there is a positive takeaway: Exxon Mobil stock continues to pay out a solid dividend, providing income-oriented investors a strong reason to consider a position. XOM Remains a Dividend AristocratExxon Mobil stock has seen annual dividend increases for 37 consecutive years. The five-year average growth rate of the dividend is 5.6%. With a current dividend yield of 4.6%, XOM stock is a solid opportunity for passive-income investors.The XOM stock price receives strong price support from the dividend. This somewhat coerces Exxon Mobil to continue the payouts to keep shareholders happy.Without a long-time rise in oil prices, it may be tough for XOM to continue growing the dividend. However, thanks to continued global demand for oil, the company may have the long-term earnings growth necessary to sustain approximately six annual dividend increases.But can investors count on the dividend yield alone to deliver value? Is the current valuation sustainable, or could the XOM stock price see additional declines? Let's see how Exxon Mobil compares to its peers: Exxon Mobil Stock Overvalued Relative to PeersAt the current XOM stock price, the company trades for 20.2-times forward earnings, and an enterprise value (EV)/EBITDA ratio of 9.7. This valuation appears stretched relative to the company's integrated oil and gas rivals:BP (NYSE: BP): 13-times trailing earnings, EV/EBITDA of 6Chevron (NYSE: CVX): 16.9-times forward earnings, EV/EBITDA of 8ConocoPhillips (NYSE: COP): 12.4-times forward earnings, EV/EBITDA of 4.8Royal Dutch Shell (NYSE: RDS.A): 11-times earnings, EV/EBITDA of 5.9One may think that the XOM stock premium is the result of a high dividend. But Exxon Mobil stock does not have the highest yield: For instance, BP has a 6.26% yield, while Royal Dutch Shell sports a 5.94% yield. And Chevron and ConocoPhillips aren't too far behind at 3.83% and 2.04%, respectively.Therefore, looking at both earnings power and dividend yield, it is crystal clear Exxon Mobil stock is not an outstanding opportunity for value or dividend investors. Bottom Line: Exxon Mobil Stock Is a HoldExxon Mobil stock has been hammered by weak refining margins. Despite these risks, XOM stock trades at a premium to its fellow integrated oil and gas companies.The company continues to be a dividend aristocrat, raising the payout for the 37th consecutive year. The dividend yield is solid, but not as high as those paid by BP and Royal Dutch Shell.With improved refining margins, Q2 earnings (anticipated for early August) could satisfy investors. However, weakness in natural gas and chemicals could outweigh a rebound in refining margins.With upside questionable but downside protected by the dividend play, XOM stock is a hold. Investors should consider entering a position if the company starts trading at a discount to its peers.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 * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Stable Dividend, Minimal Growth Makes Exxon Mobil Stock a Hold appeared first on InvestorPlace.
Production shut-in and loss of imports forced by Hurricane Barry led to the stockpile draw with the world's biggest oil consumer even as lower refinery crude runs capped the decline.
Total SA (TOT) is scheduled to announce its second-quarter results on July 25. Analysts expect the company to post 2% lower earnings YoY in the second quarter.
Zach Jonson, senior portfolio money manager at Stack Financial Management, selected Chevron (GE) as his top investment idea for 2019. The stock has since risen 15%. Here's his update on the large cap energy firm.
Shale producer Callon Petroleum (CPE) agreed to buy smaller E&P player Carrizo Oil & Gas (CRZO) for $3.2 billion, while McDermott International (MDR) clinched twin contracts from Saudi Aramco.
The Energy Select Sector SPDR (NYSE: XLE ), the largest equity-based energy exchange traded fund, is up almost 4% this month and ahead of the sector's big-name earnings reports, some traders see opportunity ...
If the plan to modify Chevron's (CVX) Kitimat facility to an 'all-electric' design materializes, the project will boast the lowest emission intensity among all large-scale LNG projects in the world.
The latest Permian Basin play is a ‘merger of equals’ between Callon Petroleum and Carrizo Oil & Gas, the first after Chevron Corp. lost out in the battle for Anadarko Petroleum Corp.
Jefferies has cut its target prices for integrated energy stocks ExxonMobil (XOM), Chevron (CVX), and Royal Dutch Shell (RDS.A).
(Bloomberg) -- Chevron Corp. is seeking approval to modify its plans for a liquefied natural gas export facility on Canada’s Pacific Coast to an all-electric design that it says will result in the lowest greenhouse-gas emissions per ton of LNG of any large project in the world.Chevron and its partner Woodside Petroleum Ltd. earlier this year had announced they’d applied to expand the capacity of their LNG project in Kitimat, British Columbia, by as much as 80% to 18 million metric tons a year.That triggered a new federal screening of the project that’s expected to “commence shortly,” according to a July 8 letter filed by Chevron to the provincial environmental assessment office. As part of the fresh round of approvals sought, the project is proposing to become an “all-electric plant” powered by hydroelectricity, allowing expanded capacity without the corresponding increase in emissions of a traditional LNG facility, the letter said.LNG is created by cooling gas to minus 260 degrees Fahrenheit (minus 127 degrees Celsius) in an energy-intensive process typically powered by burning natural gas. Kitimat LNG instead proposes electric motor drives totaling 700 megawatts to run all liquefaction, utility compressors, pumps and fans with hydro-power bought from the provincial utility, according to its revised project description dated July 8. It will have backup diesel power generators on site for emergencies.The proposed plant “will achieve the lowest emissions intensity of any large-scale LNG facility in the world,” according to the project description. Kitimat LNG will produce less than 0.1 ton of carbon dioxide equivalent for every ton of LNG compared with a global average of more than 0.3 ton of CO2 equivalent, according to the document.All-electric LNG plants are still uncommon, according to Alex Munton, principal analyst for Americas LNG at Wood Mackenzie in Houston. The only large-scale, electric-drive LNG plant under construction in North America is Freeport LNG in Texas, he said.Kitimat LNG’s decision to go with an electric design may increase the project’s costs. “If you’re installing turbines that are gas-fired and your fuel is very low-cost gas -- and the outlook for Canadian gas prices if very low long term -- then it’s difficult to beat that using electricity,” said Munton. “But clearly there’s a consideration around carbon taxation and how that affects the economics.” The carbon tax on LNG projects in British Columbia will rise to C$50 ($38) a ton by 2021 from C$40 at present.Chevron and Woodside expect to make a final investment decision in 2022 to 2023 with production starting by 2029, according to the project description. The revised proposal may trigger the need for a federal environmental assessment, according to the document.(Updates with analyst comment starting in sixth paragraph)To contact the reporter on this story: Natalie Obiko Pearson in Vancouver at firstname.lastname@example.orgTo contact the editors responsible for this story: David Scanlan at email@example.com, Carlos Caminada, Catherine TraywickFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Oil tumbled below $60 a barrel as a tropical storm that shut almost three-quarters of U.S. Gulf of Mexico production moved inland while China fueled concerns about demand growth.Futures closed 1.1% lower in New York, the biggest loss in almost two weeks. With Hurricane Barry now ashore and weakening, drillers have begun restaffing offshore installations in the Gulf. About 69% of crude output remained shuttered, the U.S. government said Monday, down from 73% over the weekend.Chinese government data, meanwhile, showed the world’s second-largest economy slowed to a three-decade low in the second quarter amid a prolonged trade dispute. While prices held near $60 for much of the session, they crossed below that key psychological mark around noon. That triggered automatic selling orders that then accelerated the slide, said Bob Yawger, director of futures at Mizuho Securities USA.Crude has rallied this month thanks to shrinking U.S. stockpiles and rising tensions in the Middle East. Still, there are concerns over the longer term outlook, with OPEC warning of a glut in 2020 while the International Energy Agency points to a surprise increase in oil inventories in this year’s first half.“Near term, the trend is still higher,” Tyler Richey, co-editor at Sevens Report Research in Florida, wrote in a note to clients. “But formidable technical resistance in the mid-$60s and persistent demand concerns due to the trade war will likely prevent prices from making new highs for the year.”West Texas Intermediate for August delivery fell 63 cents to $59.58 on the New York Mercantile Exchange. Brent for September settlement was 24 cents lower at $66.48 on the ICE Futures Europe Exchange and traded at a premium of $6.80 to WTI for the same month.Exxon Mobil Corp. and Chevron Corp. are among companies returning workers to offshore platforms and restarting output in the Gulf of Mexico. The region accounts for 16% of total American crude production, according to the Department of Energy.With Barry’s impact waning, the gasoline “crack" \-- an estimate of profitability for producing the motor fuel -- fell more than 5% on Monday. That further undercut the appeal of WTI, said Thomas Finlon, director of Energy Analytics Group Ltd.“In the final analysis, the storm wasn’t that bad and gasoline cracks are in a huge profit-taking mode," he said.The IEA said Friday that production cuts by OPEC and its allies failed to prevent the return of a surplus in the first half of 2019. China’s gross domestic product rose 6.2% in the second quarter from a year earlier, below the 6.4% expansion in the first quarter.\--With assistance from James Thornhill and Saket Sundria.To contact the reporters on this story: Alex Nussbaum in New York at firstname.lastname@example.org;Alex Longley in London at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Mike Jeffers, Carlos CaminadaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investors that want the benefit of steadily rising dividends while gaining some defensive exposure via the consumer staples sector do not have to turn to dedicated staples exchange traded funds. Some dividend ...
The Zacks Analyst Blog Highlights: ConocoPhillips, Exxon Mobil, Royal Dutch Shell and Chevron
If the waivers to operate in Venezuela are discontinued, it is likely to trigger huge losses for Chevron (CVX), which has spent billions in the Venezuelan business.
ExxonMobil (NYSE:XOM) stock has so far enjoyed a good 2019. Coming off the stock market selloff of last fall, Exxon stock has risen by about 15% since the first of the year.Source: Shutterstock However, the stock has remained on a long-term downtrend since oil prices peaked more than five years ago. Although oil trades much higher than its 2016 lows, sectors such as natural gas, refining, and chemicals continue to hold ExxonMobil down.Until more of its segments see better pricing, XOM stock will struggle to rally far beyond current levels.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Exxon Stock Keeps Moving SidewaysBy segments, I do not necessarily mean oil. Yes, XOM has experienced some disruption from Tropical Strom Barry in the Gulf of Mexico. The temporary shutdown in offshore drilling could have an impact on earnings and perhaps create a buying opportunity in the stock. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond However, that does not necessarily mean traders will want to take advantage. Admittedly, I liked Exxon when I covered it back in early January. It then traded at around $72 per share and had begun to recover from the stock slump that hit the market just before Christmas. Since that time, it has had ups and downs but now trades at $78 per share.Still, what concerns me most about XOM stock is the fact that it never recovered from the mid-decade slump in oil prices. In the spring of 2014, the XOM stock price had topped $100 per share. Granted, at that time, oil prices had often topped $100 per barrel. Since oil prices had fallen below $30 per barrel by 2016, one can understand the subsequent drop in ExxonMobil stock.However, oil prices have recovered to about $60 per barrel today. XOM stock remains at about the same high-$70s per share range where it traded in early 2016. In that same time, its closest peer, Chevron (NYSE:CVX) has risen by more than 50%. Chevron and Exxon StockXOM stock is clearly not a terrible investment. It remains a diversified business that can earn profits and increase dividends regardless of oil prices. The company generated just over $36 billion in free cash flow in 2018. Moreover, its 4.5% dividend yield and 36-year track record of payout hikes remain a testament to its stability.Furthermore, ExxonMobil leads the world in refining and polyethylene production. It also remains the leading natural gas producer in the country. With natural gas, Chevron lags much smaller players such as Chesapeake Energy (NYSE:CHK), Anadarko Petroleum (NYSE:APC), and Devon Energy (NYSE:DVN).However, except on dividend yield and production levels, it finds itself continuously outmatched by Chevron. Moreover, according to Barron's, ExxonMobil will have to spend 75% more to increase its oil-equivalent production. It also faces weak margins in refining and chemicals in addition to low natural gas prices.Furthermore, both Exxon stock and Chevron trade at about the same price-to-earnings (PE) ratio. ExxonMobil's PE ratio stands at about 17.9 compared with 17.3. Both will see shrinking profits this year.However, analysts forecast a 21.3% decline for XOM. They predict a drop of 4.4% for Chevron. Chevron also looks poised for higher growth when earnings begin to increase for both companies. Although holders of XOM stock may earn more dividend income, Chevron stock will probably benefit more from its comparatively higher growth. Final Thoughts on Exxon StockDespite a surge in recent months, underperformance continues to define XOM stock. ExxonMobil has risen this year. However, the equity remains in a long-term downtrend.Although a storm in the Gulf may have only temporary effects on drilling, XOM investors will probably have to worry about low price levels in segments such as natural gas and refining for a longer period. Moreover, its archrival Chevron continues to grow faster and outperform ExxonMobil on most financial metrics.At current levels, XOM can offer relative stability and a generous dividend payout, but little else.As of this writing, Will Healy is long CHK stock. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Despite Moving Higher, Exxon Stock Still Underperforms appeared first on InvestorPlace.
Chevron is seeking approval to modify its plans for a LNG export facility on Canada's Pacific Coast to an all-electric design.
It's a face-off with a small-market-cap midstream player with a bigger dividend on one side, and an energy giant with a less attractive payout on the other.
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also...