|Bid||115.42 x 1100|
|Ask||115.62 x 800|
|Day's Range||115.52 - 117.29|
|52 Week Range||110.42 - 127.34|
|Beta (5Y Monthly)||1.02|
|PE Ratio (TTM)||16.58|
|Earnings Date||Jan 30, 2020|
|Forward Dividend & Yield||4.76 (4.07%)|
|Ex-Dividend Date||Nov 13, 2019|
|1y Target Est||136.29|
The U.S. Treasury Department on Saturday granted permission for Chevron Corp, the last major U.S. oil company operating in Venezuela, to continue working in the country until April 22. The United States last year imposed sanctions that barred imports of Venezuelan oil and transactions made in U.S. dollars with Venezuela's state-run oil company PDVSA. The move was designed to starve the country of oil dollars and oust President Nicolas Maduro.
(Bloomberg) -- Chevron Corp. and four oilfield service providers won U.S. government approval to continue working in Venezuela for 90 days, allowing the companies’ access to the world’s largest reserves of crude despite sanctions on the crisis-stricken country.The U.S. Treasury Department decision is the fourth waiver granted since sanctions were announced in November 2018 in what is becoming a fraught quarterly ritual for the companies. Along with Chevron, the waiver also exempts Baker Hughes Co., Halliburton Co., Schlumberger Ltd. and Weatherford International Ltd. from sanctions.The waiver was extended through 12:01 a.m. Eastern time on April 22. The previous waiver was due to expire on Jan. 22.Venezuela’s daily oil production slumped to a 75-year low of 792,000 barrels last year as sanctions crippled the economy and cut off access to U.S. refiners. As a result, the nation’s crude exports that bankroll the regime tumbled to the lowest since 1985.While Venezuela accounts for only about 1% of Chevron’s global crude production, it remains strategically important given the nation’s vast untapped reserves. Proponents of Chevron’s position argued that withdrawing would cede market share and influence to Russian and Chinese companies.Chevron is the last remaining major U.S. explorer in the country. Rivals Exxon Mobil Corp. and ConocoPhillips exited a decade ago after then-President Hugo Chavez seized control of their assets.\--With assistance from Fabiola Zerpa.To contact the reporters on this story: Lucia Kassai in Houston at firstname.lastname@example.org;Kevin Crowley in Houston at email@example.comTo contact the editors responsible for this story: David Marino at firstname.lastname@example.org, Brian Wingfield, Rachel GrahamFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The US government has given Venezuelan-owned, Texas-based oil refiner Citgo another three-month lifeline, protecting it from creditors who are trying to seize it in compensation for missed debt repayments. In a statement issued late on Friday, the Treasury also said it was giving Chevron and four oil service providers another three months to continue working in the crisis-wracked Opec nation.
Can floundering Chesapeake Energy (NYSE:CHK) catch a break in 2020? CHK stock is worth less than a third of what it was this time last year.Source: Casimiro PT / Shutterstock.com Natural gas, Chesapeake's bread-and-butter, remains in a slump. The Iran incident briefly pushed oil up above $60/barrel, but prices fell back after tensions cooled down. With the company dependent on factors outside its control (energy prices), it's tough to see how they can get themselves back on track.The company's high leverage also doesn't help. A recent debt exchange may keep the company out of bankruptcy in the coming year, but in the long-term, the company's work is cut for them with regard to de-leveraging. Based on quotes from the Finra/Morningstar Bond Screener, much of the company's publicly-traded debt trades far below par value.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs a recent analysis from InvestorPlace's Ian Bezek discussed, it's telling that bondholders took 30%+ losses in the refinancing. And if the bonds aren't worth their par value, that doesn't bode well for Chesapeake's equity. * 10 Cheap Stocks to Buy Under $10 In other words, even though shares trade around $0.70/share (down 80% from their 52-week high), they could go to zero. On the other hand, investors willing to risk a complete loss could see significant upside if energy prices rebound in the coming year.Increased energy prices would improve the valuation of the company's underlying assets. With asset sales, Chesapeake could pay down much of its debt, get out of the hole, and become a more stable enterprise. With natural gas prices depressed, Chesapeake's highly-leveraged balance sheet, and asset impairment charges hitting the energy space, the stock's near-term prospects do not look promising. Handicapping Natural GasChesapeake is not only overleveraged debt-wise. The company's future prospects are all-too-dependent on natural gas prices. Even with cuts, the company's production split remains heavily weighed towards natural gas.There currently is oversupply in the natural gas market. This isn't helped by the abundance of associated gas, that is, natural gas found with crude oil deposits. But some oil producers are opting to burning off the unprofitable natural gas, in lieu of selling it. However, this alone may not make up for the glut.Much of Chesapeake's production this year is hedged at higher prices ($2.75/MMBtu). This covers the company for 2020, but 2021 is another matter. Based on forecasts by the Energy Information Administration (EIA), estimates call for natural gas prices to be about $2.54/MMBtu. This is a rebound from their 2020 average price estimates ($2.33/MMBtu), but still far from prices seen in prior years.Natural gas prices are the main catalyst to make or break Chesapeake. This plays into another factor with the company, which is the value of its underlying reserves. The company needs the market value of these assets to sustain in order to execute much-needed asset sales. Asset Sales and CHK StockChesapeake Energy is very dependent on factors outside its control. Yet, there are ways for the company's management to work through these headwinds, helping reverse the stock's downward trend.Asset sales remain a big option for Chesapeake. The company was in talks to sell $1 billion in assets to Comstock Resources (NYSE:CRK). However, December's refinancing deal has delayed talks on this proposed transaction.Even if Chesapeake can find buyers for some of its assets, what types of prices do they expect to fetch? Chevron's (NYSE:CVX) recent impairment charges were discussed in InvestorPlace contributor Mark Hake's January 3 CHK stock analysis. However, Chevron is not the only big energy player writing-down oil and gas assets. Royal Dutch Shell (NYSE:RDS.A RDS.B) has also announced a big impairment charge.Chesapeake's oil and gas reserves are on the books at $14.9 billion. But with an estimated $8.76 billion in debt (post-debt exchange), and a current market cap of $1.32 billion, investors are implying these reserves are worth just around $10 billion. Unless the natural gas situation improves, the company's margin for error is becoming thinner and thinner. If natural gas assets see further valuation impairments, Chesapeake's assets may be worth less than its outstanding debt. In other words, CHK stock would truly have zero underlying value. The Bottom Line on CHK StockIt's impossible to tell when or even if Chesapeake Energy will rebound. So much of the bull case hinges on "predicting the unpredictable." How good are you at handicapping the natural gas markets? Unless you can develop a high-conviction case for higher gas prices in 2020 and 2021, I wouldn't try to tackle this hot mess of a company.You could speculate, and see big gains if a black swan event pushes natural gas prices back up to prior levels. But if you prefer to invest, and not gamble, Chesapeake is not your play. Look elsewhere for opportunity.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 Cheap Stocks to Buy Under $10 * 5 Retail Stocks Placer.ai Thinks Can Win Big in 2020 * 6 Cheap Stocks to Buy Under $7 The post Low Natural Gas Prices and High Debt Still Weigh Down CHK Stock appeared first on InvestorPlace.
(Bloomberg) -- Microsoft Corp. unveiled plans to invest $1 billion to back companies and organizations working on technologies to remove or reduce carbon from the earth’s atmosphere, saying efforts to merely emit less carbon aren’t enough to prevent catastrophic climate change.The company’s Climate Innovation Fund will provide money over the next four years for equity investments, debt financing and other support for the development of carbon-removal technology. The fund won’t be used for Microsoft's philanthropic efforts on climate, although those will continue separately. The software maker is also pledging to be “carbon negative”, meaning it will remove more carbon than it emits, by 2030. “This is the decade for urgent action for Microsoft and all of us,” Microsoft Chief Executive Officer Satya Nadella said at an event Thursday at the company’s Redmond, Washington, campus.Engineers have devised ways to capture carbon dioxide, either pulling it from the exhaust of smokestacks or sucking it directly from open air. The gas can be stored underground or put to use — for example, it can be incorporated into products such as cement. Because most governments don’t impose a penalty or tax for carbon emissions, there’s currently no monetary incentive for companies to buy the technologies, and developers have struggled to turn them into viable businesses. Most remain stuck at the demonstration stage, building showcase projects that illustrate what could be done, if someone were willing to pay for it.“A billion dollars is a lot and a little at the same time when you think about the investment level that's probably going to be needed,” Microsoft President and Chief Legal Officer Brad Smith said Monday in a meeting with editors in New York previewing the event. It’s not clear what efforts or companies Microsoft will back — it will now start to consider options for deploying the fund. But there are various ideas and efforts already under development. Switzerland's Climeworks, for example, employs a reusable membrane to capture CO2 pulled through machinery by fans. It then sells the concentrated gas, marketing it to beverage companies and plastic makers. Carbon Engineering, based in Canada, uses a chemical reaction to remove carbon dioxide directly from the air, with the gas either stored underground or used to make fuel.Carbon capture, the vacuum cleaner the climate needs: QuickTakeAs it cuts its emissions, Microsoft plans to tackle the amount of carbon it generates and the emissions released into the environment by suppliers and customers. The company said it will use 100% renewable energy for all its buildings and data centers by 2025, and electrify all campus vehicles by 2030. That’s part of Microsoft’s plan to be carbon negative in 10 years, meaning it will remove more carbon from the atmosphere than it emits. Two decades after that, the software maker said it will have removed from the environment all the carbon it has emitted either directly or by electrical consumption since its founding in 1975.Some companies and local governments have been stepping up action on the environment, following the U.S. withdrawal from the Paris climate accord and amid rising concern about the pace of climate change. Companies like Microsoft and Amazon.com Inc. are also under pressure from employees to do more, with Amazon facing vocal protests from a group called Amazon Employees for Climate Justice. In September, Amazon announced what it called the Climate Pledge, a commitment to meet the goals of the Paris agreement 10 years early, and invited other companies to sign on. Microsoft last year joined the Climate Leadership Council to advocate for a carbon tax. And on Jan. 14, BlackRock Inc. Chief Executive Officer Larry Fink said climate change is “almost invariably the top issue that clients around the world raise with BlackRock.” Microsoft co-founder and board member Bill Gates is increasingly focusing on climate issues and plans a book on the topic later this year.Microsoft and Amazon, along with other technology companies, have also been criticized for supplying software and cloud services to large oil and gas companies like Chevron Corp. and BP Plc. BlackRock’s Fink has been trailed to work and public engagements by protesters decrying the investment firm for inaction on global warming and other issues. Greenpeace praised Microsoft for its pledge Thursday, but said the software maker needs to do more.“While there is a lot to celebrate in Microsoft’s announcement, a gaping hole remains unaddressed: Microsoft’s expanding efforts to help fossil fuel companies drill more oil and gas with machine-learning and other AI technologies,” Greenpeace’s Elizabeth Jardim said in an emailed statement. “To truly become carbon negative, Microsoft must end its AI contracts with Big Oil.”Part of Microsoft’s announcement Thursday addresses the actions of customers, and the company will begin a plan to have clients and suppliers use Microsoft technology to reduce their own carbon footprints. Starting next year, Microsoft will make carbon reduction part of its procurement deals. The company is announcing an Azure Sustainability Calculator that lets cloud customers look at their own carbon output and shows the benefits of moving to the cloud from in-house server farms—a shift that could benefit Microsoft’s Azure business."Microsoft is at the helm of what could be a new movement towards negative emissions; it’s a big step beyond what most companies have committed to. But to really shift the needle on climate change, we need 1,000 other Microsofts to follow-suit and turn rhetoric into action," the Environmental Defense Fund said in a statement.The company said it intends to take action on several types of emissions, including direct and electrical and heat use, but also the indirect carbon emissions that come from things like manufacturing, materials in its buildings and the electricity consumers use when deploying Microsoft products. At Microsoft, that indirect category is about three times the others combined. While the company said it has been “carbon neutral” since 2012, “our recent work has led us to conclude that this is an area where we’re far better served by humility than pride. And we believe this is true not only for ourselves, but for every business and organization on the planet,” Smith wrote in a blog post announcing the plans. Microsoft accomplished carbon neutrality, like most companies, by reducing and avoiding emissions, Smith said, but that’s no longer enough.“We will not solve this problem by doing nothing,” Smith said. (Updates with comments from Greenpeace in 10th paragraph.)\--With assistance from David R Baker and Max Chafkin.To contact the author of this story: Dina Bass in Seattle at email@example.comTo contact the editor responsible for this story: Jillian Ward at firstname.lastname@example.org, Andrew PollackFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Microsoft Corp said on Thursday it aims to remove more carbon from the atmosphere than it emits by 2030 and that by 2050, it hopes to have taken out enough to account for all the direct emissions the company has ever made. The focus on removing existing carbon from the atmosphere sets Microsoft's climate goals apart from other corporate pledges which have focused on cutting ongoing emissions or preventing future ones. “If the last decade has taught us anything, it’s that technology built without these principles can do more harm than good,” Chief Executive Satya Nadella said at a media event at Microsoft’s headquarters in Redmond, Washington.
What is a dividend and which companies have the best-yielding dividends? Read on for a primer on how best to approach this method of investing.
Wall Street rallied following the first phase of the U.S.-China trade pact, with Dow Jones Industrial Average and S&P 500 closing at record highs.
In a newly released interview, longtime environmental advocate and lawyer Robert Kennedy Jr. sounds the alarm about the climate crisis.
Chevron Corporation (NYSE: CVX) today announced it has joined the Hydrogen Council, a global advisory body providing a long-term vision for the role of hydrogen in the energy transition.
EQT Corporation (EQT) estimates its fourth-quarter net sales volumes in the band of 370-375 Bcfe, indicating a narrower outlook from the earlier guided the earlier guided range of 355-375 Bcfe.
The oil market may seem complicated to those not in the industry, but what impacts oil prices is fairly simple. Three major factors--supply, demand, and geopolitics--drive the price of oil.
DOW UPDATE Shares of Apple Inc. and Exxon Mobil are seeing declines Tuesday afternoon, sending the Dow Jones Industrial Average into negative territory. The Dow (DJIA) was most recently trading 12 points lower (0.
Shoppers everywhere like to find the best value; that’s a given. And investors? Well, investors are just a special case of shoppers – in this case, shopping for stocks. So, how can we define a good value when it comes to stocks? In short, we’re looking for high upside and high dividend yields.TipRanks, a platform that tracks and measures the performance of analysts, offers a set of tools to search the raw data collected from 5,700 Wall Street financial experts and 6,500 publicly traded companies. The basic tool, the Stock Screener, gives investors a set of filters to screen the data and find the stocks that fit the desired profile.Setting the filters to show us stocks with a price target upside above 10% and a dividend yield above 2.5% brings the list down to a manageable 46 companies – that will offer investors a true value for their stock purchase. Let’s look at three of them that have a top spot in the S&P 500.Broadcom, Inc. (AVGO)We’ll start with Broadcom, a stand-by of the semiconductor chip industry. Broadcom’s 2019 sales numbers are not in yet, but it finished 2018 as the sixth largest chip maker by revenues, bringing in $18.46 billion. Riding high from that sales figure, Broadcom stock gained 28% in 2019, matching the broader stock market figures.In December’s fiscal Q4 earnings report, AVGO showed revenue and earnings both above the forecasts. The top-line sales figure was $5.78 billion, up 6.25% year-over-year and up 5% sequentially from Q3. Earnings showed a less impressive gain, but the annual EPS of $5.39 beat the expectation by a half-percent.AVGO shares are well positioned for price appreciation; they are also one of the market’s true dividend champions. The company raised the December dividend payment, to $3.25 per quarter, making the annual payment $13 and the yield 4.34%. That yield is well above the 2% average among S&P-listed companies, and the December increase caps a three-year run of consistent dividend increases.Top analysts see AVGO as a healthy investment. Writing from Morgan Stanley, 5-star analyst Craig Hettenbach says, “We think the stock is poised to outperform after meaningfully lagging the past 2 years… If Broadcom is able to execute in software it would add to what we view as a very compelling franchise in semis (66% weighted market share across 60% of revenue in duopoly structures), creating a diversified and highly profitable and cash generative business.”Hettenbach accordingly rates the stock a Buy, and puts a price target of $367 on the shares, indicating an upside potential of 23%. (To watch Hettenbach’s track record, click here)Mark Lipacis, the eighth-ranked analyst overall in the TipRanks database, agrees that AVGO is poised for gains. Noting that the “company's dividend policy is to return 50% of previous year's FCF to shareholders in the form of a dividend,” he goes on to add, “AVGO expects 6-8% growth in Core Semiconductor business over the next few years. Software business is becoming more predictable and expected to be $7bn in F2020.”In line with his optimism and Buy rating, Lipacis bumped his price target here up by 8%, to $350, implying a 17%. (To watch Lipacis’ track record, click here)Broadcom’s Strong Buy consensus rating is based on 21 analyst reviews, including 16 Buys and 5 Holds. Shares are not cheap, at $299.22, but the average price target suggests room for a 18% upside growth potential this year. (See Broadcom stock analysis at TipRanks)Chevron Corporation (CVX)Chevron, one of the world’s largest oil producers, with a market cap of $220 billion, is facing rough market conditions. Prices in the oil markets are low – 2H19 saw market bottoms near $52 for WTI – while overhead costs remain high. The combination pushed revenue down from ~$14 billion in 2018 to ~$12 billion in 2019.In CVX’s most recent earnings report, for Q3 2019, the company showed a 6% miss on EPS, with the bottom-line number at $1.36 for the quarter. Revenues were down by 4%, at $36.12 billion. During the quarter, the price of crude oil and natural gas liquids fell 24%, from $62 one year ago to $47 per barrel equivalent. A 3% increase in total production helped mitigate the losses.Even though revenues and EPS are down, CVX has been able to maintain its high dividend payout. Oil is an essential commodity, so there will always be a market for it, and cash flow for the oil companies. CVX uses those facts to back up a 4.09% dividend yield, with an annualized payment of $4.76. This yield is approximately double the S&P’s average dividend yield, and well over double the yield of the 2-year and 10-year US Treasury bonds.Piper Sandler analyst Ryan Todd sees the bottom line on CVX supporting a Buy rating. He writes, “Despite the well-telegraphed headwinds, we continue to see CVX’s peer-leading portfolio breakeven and attractive FCF outlook as supporting leading growth in dividends/shareholder returns amongst its peers.”Todd’s $143 price target on CVX shares implies room for a 23% upside. (To watch Todd’s track record, click here.)Roger Read, reviewing CVX for Well Fargo, lays out an upbeat track for the company in 2020: “Driven by its unconventional plays, deepwater assets and LNG projects, [we see CVX bringing in] modest, returns-focused production growth expectations, expanding margins from high-grading and cost controls, dividend growth, potential share repurchases and solid balance sheet.”Read gives CVX a Buy rating with a $142 price target, showing his confidence in 22% forward growth. (To watch Read’s track record, click here)The difficulties of the oil market can be seen in Chevron’s analyst consensus, a Moderate Buy rating based on 6 Buys, 3 Holds, and 1 Sell. The average price target of $137 implies an upside of 18% from the $116 current trading price. (See Chevron’s stock analysis at TipRanks)International Business Machines (IBM)The last stock on our list is an old-name blue-chip standard of the markets, and a long-time component of the Dow Jones index, IBM. It’s a name that everyone knows – IBM got its start in business tech when that meant gear-driven mechanical calculators and card-punch time clocks. After WWII, IBM was at the forefront of the electronic computer revolution, evolving from punch card machines to magnetic tape drives to the early floppy disks. The ubiquitous PC got its start with an IBM operating system. Today, business tech is moving toward the cloud, and IBM acquired cloud innovator Red Hat last year, to get a foothold in the cloud market. With a market cap of $121 billion and annual revenues in the neighborhood of $80 billion, IBM has plenty of resources to change direction.Staying at the top isn’t cheap, though. IBM had to spend $34 billion on the Red Had acquisition, and saw a major bookkeeping loss in its most recent reported quarter, Q3 of 2019. The quarterly revenue hit was heavy – the top line was down $190 million to, to $18.03 billion. On the positive side, Red Hat, in its first quarter as a subsidiary, saw revenues rise 20%, and EPS was in line with the forecasts, at $2.68.While closing the Red Hat deal, IBM management announced that it would freeze the dividend at current levels for at least the next year. While this forestalls growth, the actual payment remains high - $1.62 per quarter. Annually, this translates to $6.48 and a yield of 4.74%. IBM has, since 2011, committed to maintaining the dividend payment, as a boon to investors.Matthew Cabral, 4-star analyst with Credit Suisse, is upbeat on IBM. He notes the “solid start” of Red Hat as part of the IBM parent company, and then adds, “[W]e think that inflection starts in 4Q, with an early boost from mainframe before passing the baton to Red Hat and the related pull-through of “core” IBM in CY20. Indeed, early progress on Red Hat is encouraging and we continue to believe the acquisition significantly improves IBM’s standing in the rapid push toward hybrid cloud.”Cabral backs his outlook with a Buy rating and a $173 price target. His target suggests room for 26% share appreciation in 2020. (To watch Cabral’s track record, click here)IBM’s Moderate Buy consensus rating reflects the company’s recent mixed results on revenues, and debt from the Red Hat purchase. The stock has an even split – 4 Buy ratings and 4 Holds. Shares sell for $136, and the average price target of $162.67 implies an upside potential of 19%. (See IBM stock analysis at TipRanks)
The company’s dividend “is safe with room for long-term growth under most scenarios,” Morgan Stanley says.
The Zacks Analyst Blog Highlights: Chevron, Accenture, Adobe Systems, Gilead Sciences and Honda Motor
CARACAS/PUNTO FIJO, Venezuela (Reuters) - Venezuela, its oil exports decimated by U.S. sanctions, is testing a new method of getting its crude to market: allocating cargoes to joint-venture partners including Chevron Corp, which in turn market the oil to customers in Asia and Africa. This would not violate sanctions as long as sale proceeds are used for paying off a venture's debts, according to three sources from joint ventures. Venezuela's oil exports fell 32% last year as the U.S. government blocked imports by American companies and transactions made in U.S. dollars.
Now we’re heading into the Energy sector reporting season with oil prices in a state of flux—having touched their highest levels since April of last year and then fallen back below $60—all within the same 24-hour period. This after what looked like an escalation of tensions between the U.S. and Iran—airstrikes against U.S. military facilities—followed by what appears to be cooler heads prevailing. Regardless of how crude oil prices react in the near term, it’s too late for them to impact the upcoming quarterly earnings reports—and what’s likely to be another set of disappointing numbers.