96.71 -0.47 (-0.48%)
Pre-Market: 8:33AM EDT
|Bid||96.52 x 1000|
|Ask||96.95 x 800|
|Day's Range||95.75 - 97.73|
|52 Week Range||51.60 - 127.00|
|Beta (5Y Monthly)||1.02|
|PE Ratio (TTM)||13.94|
|Earnings Date||Jul 31, 2020 - Aug 04, 2020|
|Forward Dividend & Yield||5.16 (5.31%)|
|Ex-Dividend Date||May 18, 2020|
|1y Target Est||97.00|
During Tuesday night's Mad Money program, Jim Cramer spoke about the recovery in oil prices which have rebounded from -$37 a barrel to $37. Cramer said he continues to believe that the future does not belong to fossil fuels. Cramer cautioned that investors cannot count on the dividends of oil producers, with the single exception of Chevron Corp. .
The Zacks Analyst Blog Highlights: Exxon Mobil, Verizon Communications, Chevron, Pfizer and 3M Company
Remote working takes off big time and is becoming the new normal amid coronavirus-induced lockdown. If this trend continues even in the post-pandemic environment, then oil usage could decline for good.
Occidental Petroleum Corp is removing non-essential workers from some central Gulf of Mexico facilities ahead of Tropical Storm Cristobal, the company said on Wednesday. The company's Gulf of Mexico operations are continuing uninterrupted, the company said. Other Gulf of Mexico operators, including Chevron Corp , Exxon Mobil Corp, BHP Petroleum and Hess Corp , said on Wednesday they are monitoring the storm but have not evacuated workers so far.
Hedge fund Citadel, whose flagship portfolio is posting double-digit gains this year, has hired for its investment teams even as many corporations cut staff after the coronavirus outbreak shuttered large parts of the U.S. economy. Chicago-headquartered Citadel, which invests $32 billion, recruited four portfolio managers from other funds for its credit and equity teams, a Citadel spokeswoman said on Wednesday. Michael Gorun and Daniel Shatz will join the credit business in late June, working from New York.
Chevron (CVX) is trimming about 6,000 positions from its total payroll of 45,000 at its non-gas station for an organizational rejig.
Dogs of the Dow have large customer base, sustainable business model, a long track of profitability and strong liquidity, which allow them to offer sizable yields regardless of market conditions.
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.
Chevron Corp (CVX) plans to cut 10 to 15% of its worldwide workforce as part of restructuring by the second-largest US oil producer. This represents the biggest headcount cut yet among global oil producers following the Covid-19 pandemic.The company previously disclosed a 30% reduction in its 2020 spending and voluntary job cuts amid this year’s plunge in oil prices and lower demand for oil and gas due to the virus pandemic.Chevron was among the first to make significant budget cuts as oil demand plummeted. The company expects to remove about 10 to 15 per cent of its global staff to “match projected activity levels”, a spokeswoman confirmed.The 4,500 to 6,750 job cuts are to “address current market conditions” with different impacts on each business unit and region. Most reductions will take place this year. Chevron currently has 45,000 non-gas station employees. Chevron also said it would reduce planned US shale output by about 125,000 bpd.US crude oil prices have nearly halved this year to about $33 a barrel as the pandemic hurt travel demand and led to stay-at-home orders. Oil demand has been hit by as much as two million barrels per day.On Wednesday, top US oil producer Exxon Mobil Corp (XOM) said it had not yet taken steps to reduce its workforce, although it has cut its planned spending for the year by 30%.Chevron's cuts will be "across the board but heavy on the corporate functions and the support functions," said CFO Pierre Breber in an interview.Jon Rigby, analyst at UBS, recently downgraded Chevron from Buy to Hold, noting that it had gained some 70% from its March lows. The rally speaks to the "leading reputation for capital discipline and the highly resilient, yet flexible financial model that CVX is running," according to Rigby.Chevron stock fell sharply with the onset of the coronavirus pandemic, but in the last two months has gained back most of its losses. Overall the stock is down 21% for the year and currently trades for $92.Analysts are strongly bullish on the stock. In the last 3 months, out of 16 analyst ratings, 4 have been Holds and 12 have been Buys, for an average analyst price target of $101. This represents 10% upside from Chevron's current stock price over the next 12 months. (See Chevron stock analysis on TipRanks).Related News: Ryanair Cuts Traffic Target By Almost 50% For Coming Year, Seeks To Reduce Boeing Plane Deliveries Uber In Partnership With MoneyGram For Driver Discount During Pandemic Colombian Carrier Avianca Files for Bankruptcy Protection Due to Coronavirus Woes More recent articles from Smarter Analyst: * Southwest Airlines Prices Two-Tranche $1.8 Billion Debt Offering * AstraZeneca Partners With Accent To Develop Novel Cancer Treatments * Nio Rising On Record-High Monthly Deliveries, Goldman Sachs Upgrade * Inovio Suing Suppliers Over Covid-19 Vaccine Production
Investors fortunate enough to have bought Chevron (NYSE:CVX) stock at its March 23 low of $54.22 per share have made a very nice return. Since then, Chevron stock rebounded nicely to trade in the low-$90s for the past month. At $91.70, there's a lot of upside between here and $120, which is where CVX traded for basically all of 2019.Source: Jeff Whyte / Shutterstock.com Share prices may very well rise to meet those pre-pandemic levels. And investors will continue to pile on considering its potential upside. But even if they do, I'd stay away from Chevron for several reasons.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Chevron Stock Revenue Per Share Continues SlidingInvestors like to see revenue per share within a given company rise. After all, they give their money to companies for shares of stock. The underlying premise is that companies will invest it wisely, producing increasing revenue, and ultimately, rising stock prices.But Chevron stock's revenue per share has been doing the opposite for the past five years. And that should make investors think twice. Chevron does not have the ability to make money as easily as it did in the past. The dual shocks of recent oil price wars and coronavirus put that truth in stark contrast for the entire oil industry. Not just Chevron. But even before the recent shocks, signs like Chevron's sliding revenue per share year-after-year pointed to the same conclusion … Oil's heyday has likely passed. * 10 Penny Stocks to Buy Under $5 That Might Be Worth the Risk Fossil fuel pundits will point to alternative energy, and its inability to thus far supplant oil, to counteract the idea that oil is on the decline. They'll also project that oil will have a resurgence in the coming years because crude prices are near decade lows. And while oil may rise again, the trend toward a more varied energy landscape is an irreversible one. Chevron's stock will feature heavily in this conversation. Gross Margins Are SlippingTo be fair, oil has been having a rough go of it over the last several years. So, Chevron does deserve some leeway in that its industry faces strong external headwinds. But gross margins have been decreasing 5.7% long-term. That means the cost of goods sold has increased relative to revenue. Put another way, it has cost Chevron more and more to make a dollar, each of the past five years. Investors want to buy shares in companies that adapt efficiently, finding new revenue in changing times. Chevron hasn't been able to do that. Being an Aristocrat Isn't Always GreatThe company is a member of the so-called dividend aristocrats. As per Investopedia, the dividend aristocrats are companies distinguished by having paid increasing annual dividends for the past 25 years.>Being a dividend aristocrat is viewed positively by the market. The expectation is that these companies will continue to do what they have done for such a long period of time -- consistently increase their dividends.Part of the reason such established companies pay dividends is as an enticement to investors. Dividend aristocrats are not companies that are going to grow at a fast pace. Such days are well behind these companies. Investors do not purchase a Chevron or a Procter & Gamble (NYSE:PG) with the expectation of making a significant return on investment via stock price appreciation. Rather, investors purchase these companies under the assumption that dividend income will flow therefrom. And it does -- but this predictability comes at a cost. Chevron Stock's Payout Ratio Is UnhealthyChevron's dividend payout ratio is among the weakest in the oil and gas industry over the past decade-plus. This puts Chevron's management between a rock and a hard place. Investors love Chevron's dividends, but management is hamstrung by them. InvestorPlace's Thomas Neil sees the same inherent dividend problem facing Chevron, adding that recent stock gains are likely to taper off.The problem for Chevron and the other dividend aristocrats is simple. These companies must prioritize dividends each quarter, no matter the circumstances. That gets expensive, and it means that Chevron has to sacrifice that cash for the dividend even when there are other needs within the company. Because the market will react swiftly to punish dividend stocks that unexpectedly miss a dividend payout.There's little risk of Chevron reducing or missing a dividend soon. But that's not really what's important. The more cash Chevron has to earmark quarter after quarter to pay ever increasing dividends, the less it has to reinvest in the company. For Chevron (a company in a changing industry), such cash could otherwise be directed toward investments that improve efficiency, gross margin and revenue per share. Bottom Line on ChevronFundamental stock analysis views all of the problems listed above as red flags. These warning signs don't bode well for Chevron in the medium to long term. As an investor, such factors should give you pause when deciding whether to add Chevron to your portfolio.Technical analysts will view Chevron based much more on the movement of stock's recent price with less regard for underlying financial indicators. And neither school of thought is inherently wrong or right. Each investor views the market through their own particular lens.Personally though, in judging a mature stock like Chevron, I like to first see fundamentally sound financials, and then positive technical indicators. In this case, I see little of the former, giving me no reason to search for any of the latter.As of this writing, Alex Sirois did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post Chevron Stock's Fundamental Issues Outweigh Its Upside Potential appeared first on InvestorPlace.
U.S. pipeline operator Energy Transfer LP will begin cutting about 6% of its workforce next week, underscoring the spreading impact of weak oil and gas prices on the energy business. Marshall McCrea, chief commercial officer for the Dallas-based company, said in a recorded message to employees the cuts would begin Monday and affect about 6% of the company's staff, according to two people familiar with the recording. U.S. oil and gas producers have curtailed or shut in wells in response to crude prices down 45% since the start of the year, reducing deliveries to pipeline operators.
The recent oil price rally appears to have stalled as tensions between the U.S. and China weigh on energy markets and the rebound in global demand appears to slow
The energy sector is comprised of companies focused on the exploration, production, and marketing of oil, gas, and renewable resources around the world. Popular energy sector stocks include upstream companies that are primarily engaged in the exploration of oil or gas reserves. Well-known companies in the sector are Hess Corp. (HES) and Diamondback Energy Inc. (FANG).
Exxon Mobil (NYSE:XOM), the world's largest energy producer, hasn't had a great year. Exxon Mobil stock has shed 36.1% of its value since December, and it certainly isn't alone.Source: Shutterstock The novel coronavirus pandemic has wreaked havoc across all markets, but perhaps the most severely affected sector is the oil industry. Plummeting oil prices and oversupply has resulted in a 37% reduction in the Dow Jones Oil & Gas index since December.Exxon continues to pique the interest investors due to the consistent growth in its dividends and its long-term appeal. Unfortunately for Exxon's investors, their dividend and long term perspectives about the XOM stock are likely to take a hit this year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe company has already announced that it will be freezing its dividend for the first time in 13 years amidst the market uncertainty. Also, its significant debt load will significantly impact its long term outlook. Recent Performance of Exxon Mobil StockFor the first time in 32 years, Exxon reported a loss of $610 million, or $0.14 per share. Revenues were down 11.7% to the year-ago period and 16.4% for the past quarter. * 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure Production volumes rose during the quarter due to its Permian Basin and Guyana Oil resources. However, the increase in the production volumes was partly offset by the lower oil prices and refining margins. Additionally, its depreciation and depletion expenses rose by 28% since the previous quarter.These effects can be partly attributed to the crippling effects of the pandemic, but for the past five years, the company has been on a downward spiral as far as earnings are concerned.Its EPS and revenues peaked in 2011, and in 2012 when we witnessed the highest oil prices of the decade. For the next five years, revenues reduced by a considerable margin after recovering in 2018. However, since then the downward trend continues and it seems that it will carry-on for the foreseeable future.It seems as though, in maintaining its track record of increasing dividends, the company has compromised on its profitability and free cash flows. Therefore, there are several question marks about its growth, profitability, and sustainability of its dividend model. The Dividend Problem Click to EnlargeSource: Muslim Farooque Exxon Mobil has a dividend history that is second to none, which has consistently grown in the past 37 years. However, the company recently announced that it was freezing its dividend for the first time in 13 years.Royal Dutch Shell already announced that it would slash its dividend by 66%, which has investors concerned about the future.Dividend yields in the oil industry have dipped but are still impressive in comparison to other sectors.XOM stock is currently ranked third in terms of its dividend yields in the industry. However, the main question that potential investors need to consider is how much of their dividend is being paid from cheap debt.Financial leverage for Exxon increased by 3% in its latest quarter, after raising an additional $8.5 billion on March 17. It has raised another $9.5 billion on April 13, which represents a total increase of 38% in its debt load since December last year.The majority of this debt is being used to cover its massive dividend payments. This a recipe for disaster considering how every company is looking to preserve its liquidity at this time. Long Term TroublesExxon Mobil is a riskier company than it was a few years ago and been a consistent underperformer. The oil industry is in a rut, and a market pull-back is uncertain at this point. Therefore, there is a lot to contemplate about Exxon's management in these testing times.Perhaps the best place to start is for the company to preserve its financial flexibility. In doing so, CEO Darren Woods announced a 30% reduction in its capital spending and a 15% reduction in operational expenses.Also, Exxon and Chevron Corp. (NYSE:CVX) have announced a collective shut-in of 800,000 barrels per day due to the depressed demand and plunging crude oil prices.However, the company remains adamant about protecting its dividend, but in doing so, it would have to consider massive reductions in capital expenditures and to take up additional debt. This is a risky strategy that might significantly hamper its operational capabilities in the future. Bottom Line on Exxon Mobil StockExxon Mobil finds itself in a precarious position, heading into the second quarter. Analysts expect the loss per share to further drop to $0.62 in the upcoming quarter.It seems that the company is still resolute about its dividend payouts, which continues to add to its debt load. Additionally, it's sacrificing its capital spending, which is a crucial element for success in the industry. Therefore, I'm bearish on XOM stock, considering its riskiness at this point.As of this writing, Muslim Farooque did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post Protecting the Dividend at Any Cost Is a Real Risk to Exxon Mobil Stock appeared first on InvestorPlace.
United Natural Foods, Ralph Lauren, ExxonMobil and Chevron highlighted as Zacks Bull and Bear of the Day
(Bloomberg Opinion) -- The big question haunting oil is how much Covid-19 has changed the world. Will more people give up on commuting or, conversely, drive into work? Has air travel peaked for good? Have Londoners and Angelenos been spoiled by a few haze-free months?Judging from the past week, though, maybe oil’s real problem is the world hasn’t changed enough.Last year, the big challenge confronting oil demand was the trade war. This eased somewhat in January with the “phase one” agreement committing China to buy more U.S. exports, including extra freedom molecules of energy. Even then, however, most of President Donald Trump’s tariffs were left in place, and sensitive issues such as Chinese subsidies were deferred. It was more ceasefire than treaty.The guns are silent no longer. China’s decision to effectively lop off the second half of Hong Kong’s “one country, two systems” rubric was met with Secretary of State Michael Pompeo’s announcement the U.S. would take Beijing at its word. No longer recognized as autonomous, Hong Kong’s trade could be hit with tariffs, and the U.S. could even impose sanctions.More importantly, this is a tangible breach after months of escalating tension, with tit-for-tat expulsions of journalists and Trump even floating the idea of China being “knowingly responsible” in the spread of Covid-19. The phase one agreement, meanwhile, was off to a slow start, with China taking just $14.4 billion of goods listed under the deal in the first quarter, versus the $34 billion implied by the targets, according to Bloomberg Economics.With November looming, and his presidency tainted by America’s Covid-19 death toll and joblessness, Trump may well have decided China makes a better pandemic scapegoat than economic buttress. But antipathy to Beijing extends beyond the president. In the same week Pompeo opened the door to sanctions over Hong Kong, the Democratic-controlled House voted almost unanimously to authorize sanctions against China for human-rights abuses against the country’s Uighur minority. For reasons extending back much further than the existence of the Chinese Communist Party, such prods into the country’s internal affairs will touch a nerve, potentially escalating a trade dispute into broader great-power rivalry.The unraveling of free trade has been apparent since at least the 2016 presidential campaign. As I wrote here a few years ago, this is particularly pernicious for an oil market built on the back of globalization and U.S. security guarantees.Far from provoking mass kumbaya in the face of a common enemy, Covid-19 elicited a more Darwinian response, even between supposedly united states. Besides attempts to tattoo a flag on the virus, its arrival threw a spotlight on countries’ vulnerability to shortages of imported medical supplies, providing fodder for economic nationalists seeking re-shoring and a general shortening of supply chains. Fragmentation means friction, which tends to suppress growth over time. In projections published last year, BP Plc ran a “less globalization” case that took a hefty chunk out of forecast oil and natural gas demand; in the latter case, even more than for a scenario of quicker de-carbonization.The world also hasn’t changed as much as it might seem when it comes to oil supply, either. The coronavirus world tour coincided with the breakdown of Saudi-Russia cooperation on production cuts — and then facilitated a rapid rapprochement as oil prices headed toward negative territory. The swinging supply cuts forced on OPEC+ members, along with signs of congestion resuming in Chinese cities especially, helped drag oil back into the $30s this month.But the underlying dynamics haven’t changed altogether. Russia has implemented big cuts but is reportedly keen to start unwinding these sooner rather than later. As when it broke with OPEC+ in March, Moscow is done ceding market share to U.S. frackers. The latter have cut production very quickly, but their instinct to get rigs and crews back to work remains strong. Holding them in check are low prices, particularly for longer-dated futures, weighed down by the glut of physical oil and spare OPEC+ capacity that’s built up over the past couple of months. Shale does at last seem poised for rationalization. However, supply’s defining characteristics of the past four years — excess inventory and OPEC+ versus shale competition — are for now accentuated rather than altered.Similarly, the International Energy Agency’s latest investment report, which dropped this week, was consumed with Covid-19 yet trod familiar ground. This showed the theme of excess supply extending into refining, where too much capacity was opening even before the pandemic showed up.Above all, that other force of nature confronting energy markets, climate change, pervaded the discussion. If anything, the pandemic is a reminder of why we should be tackling that threat head-on. Covid-19 has both spotlighted the risk and, if stimulus efforts are shaped properly, may catalyze a response. With uncanny timing, at Chevron Corp.’s (virtual) shareholder meeting this week, the only measure where a majority of investors voted against the board concerned aligning the oil major’s lobbying with efforts to address climate change.There is still so much we don’t know about the lasting impacts of Covid-19 or, indeed, the workings of the virus itself. One thing that seems clear, however, is its tendency to magnify pre-existing conditions. For oil, those were excess supply, fraying globalization and a looming climate emergency.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Dow Jones' journey past 25,000 points this week could mark the beginning of a series of gains ahead, owing to some major tailwinds.
The European Commission on Wednesday unveiled a historic plan to invest billions of euros into a greener future as part of its recovery from the coronavirus-induced economic crisis. In a budget proposal, the commission is seeking €750bn for a recovery programme that would dole out grants and loans to member states that prioritise spending for green projects.
DOW UPDATE Shares of Walt Disney and Goldman Sachs are trading lower Thursday afternoon, dragging the Dow Jones Industrial Average into negative territory. Shares of Walt Disney (DIS) and Goldman Sachs (GS) are contributing to the index's intraday decline, as the Dow (DJIA) was most recently trading 103 points (0.