118.20 +0.30 (0.25%)
After hours: 4:36PM EDT
|Bid||118.26 x 1200|
|Ask||118.20 x 1000|
|Day's Range||117.40 - 118.70|
|52 Week Range||100.22 - 131.08|
|Beta (3Y Monthly)||0.78|
|PE Ratio (TTM)||15.23|
|Earnings Date||Apr 26, 2019|
|Forward Dividend & Yield||4.76 (3.86%)|
|1y Target Est||140.67|
is expected to report quarterly earnings of $1.30 a share on sales of $38.4 billion before the market opens Friday, April 26, based on a FactSet survey of 12 analysts. Chevron is currently trading at a price-to-forward-earnings ratio of 15.2 based on the 12-month estimates of 19 analysts surveyed by FactSet. Jim Cramer and the AAP team are watching the energy sector.
Investors are betting that Chevron will win the bidding war for Anadarko Petroleum. Chevron must lift its offer, the reasoning goes, but it doesn’t have to match one from Occidental Petroleum.
While being meet with skepticism from analysts -- who have called the bid “ill-advised” and “a very bad idea” -- the proposal shows the appetite of Chief Executive Officer Vicki Hollub, 59, who took over in 2016 as only the fourth CEO in the company’s history and is one of the few women leading a major oil producer. The price of the deal is only about $8 billion less than Occidental’s total market value. The move is fitting for a company that for decades was led by larger-than-life characters, including Ray Irani, who was for a time the industry’s highest-paid leader, pulling in $80 million in average compensation over several years.
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.
Assets in the Permian Basin are the US oil industry’s equivalent of the Iron Throne in the TV show Game of Thrones: they are the prize that everyone covets. for Anadarko Petroleum, in an attempt to break up the agreed $50bn takeover by Chevron that it had announced on April 12. The contest is likely to be won by the side that is the most effective in convincing shareholders that it would be the best owner of Anadarko’s Permian assets.
Will Shell’s Q1 Earnings Meet Wall Street Estimates?(Continued from Prior Part)Shell’s dividend payment Royal Dutch Shell (RDS.A) has paid steady dividends over the past few years. In Q1 2019, Shell paid a dividend of $0.94 per share (or ADS),
Whether or not Chevron wins its bid to acquire Anadarko, there's no doubting the oil giant has a long history of M&A. Take a deeper dive into the history of Chevron.
Chevron reports earnings on Friday. Investors, meanwhile, are wondering whether it might be about to get itself into a bidding war.
STOCKSTOWATCHTODAY BLOG Three numbers to start your day: $38 billion is how much energy company (OXY) has offered to pay for (APC) That’s 21% more than oil giant Chevron offered to pay for Anadarko earlier this month.
(Bloomberg) -- Chevron Corp.’s largest producing joint venture with Venezuela is still struggling to resume normal operations after rolling blackouts temporarily knocked oil output to zero.
for Anadarko Petroleum, Wall Street dealmakers were not surprised. Occidental has forged close relationships with both banks, particularly Bank of America, where it has regularly poached high-level talent. It is also a reflection of how Occidental has approached the deal — at first hoping to strike a friendly merger before being outmanoeuvred by oil giant Chevron — and how symbiotic its relationship has become with Bank of America, where it has repeatedly relied on high-level talent as part of its strategic decision-making.
The following are the top stories in the Wall Street Journal. - Occidental Petroleum Corp offered to buy Anadarko Petroleum Corp for $38 billion, launching a potential bidding war for a company that agreed earlier this month to be purchased by Chevron Corp for about $33 billion. - Merger talks between Deutsche Bank AG and Commerzbank AG have gotten bogged down over questions ranging from a lack of investor support to opposition from powerful labor unions, according to people familiar with the matter.
Exxon Mobil and Chevron are expected to report lower quarterly earnings per share when compared with last year's first quarter, though their stocks have outperformed smaller companies with both in the midst of aggressive expansion plans in shale oil. A combination of lower oil prices, weakness in liquefied natural gas (LNG) portfolios and lacklustre refinery margins could hurt integrated oil companies across the board, analysts said ahead of results announcements on Friday. "We're not looking for a great first quarter for the group," said Blake Fernandez, senior research analyst with Piper Jaffray & Co's Simmons Energy.
FT premium subscribers can click here to receive Due Diligence every day by email. Tom Barrack was barely in his forties when his boss, the oil heir Robert Bass, entrusted him with the assignment that would launch him on the path to power and fortune. The Plaza occupied an even more prestigious stretch of the ego-driven imaginations of New York’s tycoon class, and Barrack, whose job was to sell it, managed to fetch $400m — more than anyone had previously paid for a single hotel.
A bidding war broke out for Anadarko Petroleum. Small caps moved higher while the S&P 500 paused. Dollar strength could be worrisome.
Occidental Petroleum Corp on Wednesday started the first takeover battle for a major oil company in years, offering $38 billion (29.4 billion pounds) for Anadarko Petroleum Corp, a bid that topped a $33 billion offer by Chevron Corp. Both suitors are offering a premium for Anadarko's holdings in the Permian Basin of West Texas and New Mexico. Occidental's surprise $76-per-share bid is valued at $57 billion, including debt.
After being rebuffed several times, Occidental Petroleum Corp. on Wednesday made public a $38 billion offer to buy Anadarko Petroleum Corp., seeking to break up a proposed takeover by Chevron Corp. The $76 per share cash-and-stock bid for The Woodlands, Texas-based oil and natural gas producer is 20 percent more than Chevron’s $33 billion April 12 agreement. For Occidental, which has a market value of about $46 billion, the acquisition would be its largest ever and the biggest purchase of an oil producer anywhere in at least four years. It would pull together two second-tier oil and natural gas producers, as opposed to Chevron’s bid to create another "ultramajor" to rival Exxon Mobil Corp. It would require Anadarko to pay a $1 billion breakup fee to Chevron.
The bidding war for Anadarko Petroleum (APC) has begun and no one is happier than APC investors. OXY and CVX are fighting for control of the Permian Basin and Anadarko is the golden ticket.
Hollub, the first woman to become chief executive officer of a major oil company, rose through the ranks after earning a degree in mineral engineering. By challenging Chevron for a takeover of Anadarko, she is betting she can convince investors that she is able to run a much bigger business. Anadarko has deep-water fields and is moving into liquefied natural gas, two areas where Occidental has no experience.