125.55 -0.17 (-0.14%)
After hours: 5:37PM EDT
|Bid||125.56 x 1000|
|Ask||125.90 x 800|
|Day's Range||125.27 - 126.40|
|52 Week Range||100.22 - 128.55|
|Beta (3Y Monthly)||0.80|
|PE Ratio (TTM)||17.38|
|Forward Dividend & Yield||4.76 (3.78%)|
|1y Target Est||N/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 email@example.comTo contact the editors responsible for this story: David Scanlan at firstname.lastname@example.org, 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 email@example.com;Alex Longley in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Mike Jeffers, Carlos CaminadaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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.
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...
While China's efforts to increase output may offset production decline from aging oilfields, it is not likely to reduce its dependence on foreign oil and gas imports.
The Strait of Hormuz, where the BP-operated oil tanker was "harassed," is touted as the most important global passageway for transporting crude.
Exxon Mobil (NYSE:XOM) stock is up 14% year-to-date, and that's a disappointment. First because it is lagging the S&P 500, which is up 20%. Second, because it's even worse when you consider that the United States Oil Fund, LP (NYSEARCA:USO) is up a whopping 30%-plus for the same period.Source: Shutterstock Clearly the XOM stock price needs to catch up. Today we discuss the opportunity that could help it do just that.First let's do our due diligence and eliminate the possibility that there is something wrong with the company. Spoiler alert: The company is fine, it's the stock that is slightly sick.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFundamentally, Exxon Mobile stock sells at an 18 trailing price-to-earnings ratio and 1.2 times sales. Those levels are in line with Chevron (NYSE:CVX). So it's definitely not bloated. Owning it here is reasonable just from that perspective alone. This is before noting the fact that it also pays 4.5% yield to reward its shareholders while they wait.Crude oil price have been on fire of late. Higher oil prices usually translate into favorable price action for the major oil companies. Today's point is that there is a technical opportunity in the Exxon stock that could have a 5% rally brewing. XOM Stock Beyond the NumbersNow that we established that the Exxon fundamentals are solid, we can move on to the real opportunity today which is the technical one. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The Exxon chart looks like a breakout waiting to happen. The simplest way of seeing this is through a series of higher lows knocking on a neckline. What makes this interesting is the location of that line.XOM stock had a similar setup in April, but from the much higher $84 per share level. That opportunity failed miserably in late April and the stock tumbled 15%. But some of that was also the fact that oil prices in general also collapsed. Light sweet crude fell to $50 per barrel and negative sentiment there capitulated. That was the opportunity to go long oil stocks.The good news there is that the bulls held the higher-lows trend. XOM stock found support exactly where it needed it. The cluster of prices around $72 per share was the consolidation area from January and it held.And as such, XOM bottomed late May. The June rally so far brings it back to half-back test of the April stock accident. This week, Exxon Mobil stock made its third attempt at this breakout from $78 per share. The reason this is important is because it's not only the halfway mark of a major correction, but it also coincides with a pivot level that dates back to 2015. Click to Enlarge Such significant levels are usually pivotal, so they offer resistance. But when that fails, then the bulls can overwhelm the sellers and overshoot higher. In this case, the first target is $82 per share, which would close the gap that happened on the last earnings report for Exxon. Above $82 per share, there are more technical opportunities but they are resistance first until they, too, fail.XOM stock can do this, but it will need the help of not just the markets in general, but also the price for crude oil. And those prices rebounded hard off of the recent drop and when that happens they tend to hit some resistance. Looking at the price of crude oil of late there are important levels to note and the shape of the chart is very similar to XOM. So this stock is not alone in this fight as the opportunity is here for the whole energy sector.So in summary, although this opportunity is short-term in nature because it's based on the charts, it also works for the long-term. Chevron and Exxon are excellent energy companies and for the long-term have rewarded their shareholders well. First in terms of capital appreciation and second from their dividends. These are bulletproof companies where the dividend is not in question. This makes the institutional interest in these stocks a form of support for them. So I can own Exxon for the long-term even from here.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room free here. 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 Exxon Mobil Stock Has a Breakout Opportunity Here appeared first on InvestorPlace.
Chevron and ConocoPhillips look like the best bets among major U.S. oil companies as second-quarter earnings season approaches, according to Goldman Sachs.
The index endured a turbulent week but gained after the Fed Chair indicated that a rate was likely later this month.
Other named executives will also take home tens of millions of dollars after Occidental's acquisition of Anadarko closes.
The past several months have proven tough on Exxon Mobil (NYSE:XOM) shareholders. Indeed, Exxon stock has proven tough to own for the past several years.Source: Shutterstock While rivals like Chevron (NYSE:CVX) and BP (NYSE:BP) have, for the most part, fought their way back from their 2015 funk, Exxon Mobil hasn't been able to do the same.It's upcoming Q2 report isn't expected to be a barn-burner either, with weakness from its gas and chemical business expected to offset renewed strength from its downstream arm.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Stocks for 2019: A Volatile First Half So far, Exxon has been the disappointment investors and analysts alike expected it to be when it took a more aggressive path coming out of 2015's oil rout.That is, rather than act conservatively and defensively, Exxon Mobil is ramping up its bets on hydrocarbons. Next year's capital expenditures are budgeted 16% higher than this year's as part of an eye-popping plan to double 2017's income of $15 million by 2025.There may be a method to the madness, however, that current and would be XOM stock owners have to embrace. Exxon Stock in the Long TermMost oil companies, and other types of companies for the matter, seek a balance of short-term and long-term success. Exxon Mobil is far more concerned about the latter, and much less concerned about the former.The company has never explicitly said this. Rather, one must read between the lines.Exxon repeatedly has featured outlooks like this one, presented at the recent JP Morgan Energy Conference. In it the company claims that 2025 is a key milestone in terms of results. Simultaneously, Exxon is imagining what the oil market will look like not in 2020, but in 2040.Rivals are doing the same, to be fair, albeit nowhere near to the same extent.And, contrary to many hopes and dreams for a carbon-free world by then, we're likely to be burning more gas and oil then rather than less. The IEA report Exxon is relying on suggests we'll need, globally, on the order of 110 million barrels of oil per day within two decades. That's up from around 90 million barrels now.As for natural gas, the same forecasters anticipate the world will need around 450 billion cubic feet per day. We're presently using roughly 350 billion barrels per day.We're also depleting known gas and oil reserves in the meantime, forcing us to continue the hunt for more.That's where Exxon Mobil's capital expenditure plan, as big it feels, is actually dwarfed. The $150 billion or so the company will have laid out on new projects and improvements to existing properties is only a fraction of the $21 trillion the IEA says will need to be invested in order to meet that demand. Bottom Line on Exxon StockIt's worth noting that not every observer expects the consumption of oil to continue growing through 2040 and perhaps beyond. Bank of America analysts expect demand to peak in 2030 and then slide lower at a brisk clip after that.The paradigm shift's cause? The adoption of electric cars could force the energy market past its tipping point.If B of A is right, then Exxon Mobil's spending is largely for naught and XOM stock itself could face even greater pressure than it's faced in recent years.That's an oversized 'if' though. As uncertain as oil's future may be, the plausible supply of lithium needed to make the batteries that power EVs is even more obscured.Like any other commodity, the greater the demand for lithium on a so-far-strained supply, the more possible it becomes that electric vehicles become unaffordable.At the very least, all the infrastructure needed to refine oil and fill up vehicles with gasoline already exists.Whatever the reason, Exxon Mobil is in many regards going for broke. It's only given biologically-made fuels a modest look, while other names in the business appear to assume alternatives to drilling are the inevitable future.While Exxon's rivals are cautious about taking on new drilling prospects, Exxon is forging ahead as if little will change over the course of the coming two decades. It's made a huge bet on conventional oil and gas drilling in Guyuna.If the foreseeable future is indeed one that still relies on oil, Exxon Mobil will be at least five years ahead of its rivals.That's another big 'if' though.The only real certainty here is that investors won't be getting clear answers about the wisdom of the decision for at least a few more years. That makes XOM stock a tough name to bet on in the meantime, though perhaps the only game in town if the bets pay off.Either way, Exxon has to be viewed through a long-term lens.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post Exxon Stock Is the Best Long-Term Oil Dependency Bet appeared first on InvestorPlace.
Had Chevron's Anadarko deal closed, the acquired North American assets would have come under Green’s care. But even without them, he’s still the head of a massive portfolio of upstream oil and gas assets.
The companies have partnered on other similar projects as well — including a recently announced project in Qatar.
As Tropical Storm Barry eyes the Louisiana coast, some crude oil producers and refiners aren't taking any chances with safety, shutting down operations until the storm passes. SONAR Critical Events: Forecast ...