CVX - Chevron Corporation

NYSE - NYSE Delayed Price. Currency in USD
+0.08 (+0.07%)
At close: 4:04PM EDT
Stock chart is not supported by your current browser
Previous Close121.42
Bid121.66 x 1100
Ask121.55 x 900
Day's Range121.24 - 122.32
52 Week Range100.22 - 127.60
Avg. Volume5,435,393
Market Cap230.658B
Beta (3Y Monthly)0.84
PE Ratio (TTM)15.74
EPS (TTM)7.72
Earnings DateOct 31, 2019 - Nov 4, 2019
Forward Dividend & Yield4.76 (3.92%)
Ex-Dividend Date2019-08-16
1y Target Est138.00
Trade prices are not sourced from all markets
  • U.S. Biofuels Policy: Oil & Corn Industries Fight It Out

    U.S. Biofuels Policy: Oil & Corn Industries Fight It Out

    Farm groups and ethanol organizations are angered by the sharp increase in exemptions provided by the Andrew Wheeler-led Environmental Protection Agency to the oil refiners.

  • Chevron Stock Falls in Q3: Where’s It Headed?
    Market Realist

    Chevron Stock Falls in Q3: Where’s It Headed?

    Chevron (CVX) stock has fallen 1.4% since July 1, 2019, the beginning of the current quarter. Prices of WTI crude oil have fallen 6.0% in the quarter.

  • The Zacks Analyst Blog Highlights: ExxonMobil, Chevron, BP, Royal Dutch Shell and Valero

    The Zacks Analyst Blog Highlights: ExxonMobil, Chevron, BP, Royal Dutch Shell and Valero

    The Zacks Analyst Blog Highlights: ExxonMobil, Chevron, BP, Royal Dutch Shell and Valero

  • Valuations: Where Do XOM, CVX, Shell, and BP Stand?
    Market Realist

    Valuations: Where Do XOM, CVX, Shell, and BP Stand?

    The valuations of integrated energy stocks ExxonMobil, Chevron, Shell, and BP have been slammed in Q3, led by volatile equity markets and oil prices.


    Can Argentina's Shale Boom Survive?

    Argentina’s shale boom is falling behind expectations, and as high upfront costs are adding to the already ultra-high debt, the South American country might have to rethink its strategy

  • U.S. Oil Industry Grabs Another Crown From Saudi Arabia
    Investor's Business Daily

    U.S. Oil Industry Grabs Another Crown From Saudi Arabia

    The U.S. topped Saudi Arabia in oil exports in June as Riyadh complies with the OPEC cuts, according to an industry report Wednesday.

  • U.S. Oil Ends Lower Even as EIA Reveals Drop in Inventories

    U.S. Oil Ends Lower Even as EIA Reveals Drop in Inventories

    While EIA reports the fourth straight weekly inventory decline, crude prices fall after OPEC cut its forecast for oil demand growth this year and next.

  • MoneyShow

    Two Ways to Play Big Oil for Income

    If you want to stay put and collect cash, these highly rated stocks are amongst the dividend payers to consider right now, explains income specialist Brett Owens, editor of Contrarian Outlook.

  • Chevron Stock May Complete Multi-Year Breakout Pattern

    Chevron Stock May Complete Multi-Year Breakout Pattern

    Dow component Chevron could rally above tough resistance near $126 and complete a multi-year cup and handle pattern.

  • WPX Energy (WPX) Prices Notes Worth $600M to Refinance Debts

    WPX Energy (WPX) Prices Notes Worth $600M to Refinance Debts

    WPX Energy (WPX) is set to issue $600 million senior notes to refinance outstanding debt and for general corporate purposes.

  • The Bull Case for Exxon Stock Is Strong, but It’s Not Perfect

    The Bull Case for Exxon Stock Is Strong, but It’s Not Perfect

    There's a nice bull case for Exxon Mobil (NYSE:XOM) at the moment. Earnings are set to grow at a nice clip going forward. Exxon stock pays an attractive dividend. Downstream and chemical operations provide a hedge to oil price weakness.Source: Jonathan Weiss / Indeed, XOM stock has rallied nicely since touching a 2019 low last month. Thanks in part to the generous dividend, I predicted in July that $70 would hold as a floor for Exxon stock.That didn't quite play out, as XOM went to $66, but the dip below $70 - and to a 5%+ yield - proved to be short-lived.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBack at $72, Exxon Mobil stock still looks attractive, but it's not perfect. There are reasons why XOM stock has been dropping for the past five years. And there are plays elsewhere in energy that might be more compelling. XOM still looks like the easiest play in energy. But easiest isn't always the best. The Case for Exxon StockThe case for Exxon stock has two pillars. First, earnings are set to grow sharply over the next few years. CEO Darren Woods said last year that Exxon Mobil would double its profits by 2025. * 10 Stocks to Sell in Market-Cursed September The company said in May that the plan remained on track. It noted at its March Investor Day that it could reach those goals with flattish oil prices and even assuming demand was cut to meet climate change targets.The second, related, pillar is that the earnings growth can support continuing increases in the dividend, which can further support Exxon Mobil stock. To be sure, I'm not a fan of buying a stock for its dividend. That's a dangerous play, a lesson learned by shareholders of General Electric (NYSE:GE) and CenturyLink (NYSE:CTL), to name just two.But Exxon Mobil has some internal protections to its earnings thanks to its downstream and chemical operations. When oil prices fall, profits in upstream (exploration and production) drop. But they usually increase elsewhere in the business. Even as oil absolutely collapsed in the middle of the decade, XOM stock held up - and the dividend kept growing.In an environment where 10-year Treasuries yield less than 2%, it's difficult to believe that Exxon can yield 5% or more for very long. Last month's move to under $70, as noted, was short-lived.So Exxon Mobil stock is probably safer than some investors realize. Given its growth potential going forward, it's cheaper than some investors realize. That's a nice combination.And it suggests a path to $100 or more, given plans to move EPS above $8 and the dividend potentially to $4+. Give Exxon a mid-teen P/E multiple or a 4% yield and the stock gains 50% or so from current levels: including dividends, likely double-digit annual returns. The RisksThat said, even if risks are lower here than elsewhere in energy, risks aren't zero. Climate change worries could drive lower energy demand amid both government regulation and changing consumer behavior. It's not just Tesla (NASDAQ:TSLA) pushing electric vehicles, after all.Lower gasoline demand doesn't send Exxon Mobil profits to zero, as oil has other uses. But it does pressure Exxon Mobil earnings, and thus the XOM stock price.Another factor is the role of ESG (environmental, social and governance) investing. Those funds may avoid Exxon stock, lowering demand in the market and potentially keeping a modest ceiling on performance going forward.Finally, Exxon Mobil has to actually hit its targets - and get some help from oil prices in the process. Lower oil prices, too, don't send Exxon Mobil earnings to zero. But if EPS is $6 in 2025 instead of $8+, Exxon's next five years could look like the last five. Over that time, shareholders have lost about 10% of their investment, even including dividends. The Bottom Line on Exxon StockThe other question is whether there are other more attractive plays in the energy sector. It's worth remembering that the same internal hedge that protects earnings in a lower oil-price scenario also makes XOM stock a notably poor play on oil prices.Investors bullish on oil should look elsewhere, particularly with prices cheaper across the space. Both Exxon and Chevron (NYSE:CVX) have said that they expect shale M&A to continue, after Occidental Petroleum (NYSE:OXY) acquired Anadarko Petroleum earlier this year.Concho Resources (NYSE:CXO) has been considered a logical acquisition target and is much cheaper after a post-earnings plunge. Other shale plays have fallen steadily since spiking after the Oxy-Anadarko bidding war.Even in integrated oil, there are some intriguing plays. Chevron has been a better stock in recent years. BP (NYSE:BP) has a higher dividend.Again, XOM the simplest play in the space. It's likely, given its dividend, to preserve capital even if oil prices move to a so-called "lower for longer" scenario. But there are intriguing options as well. Oil bulls should look elsewhere. Income investors should take a look at BP. Exxon stock is a good option, but it's likely it won't turn out to be the best one.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post The Bull Case for Exxon Stock Is Strong, but It's Not Perfect appeared first on InvestorPlace.

  • 9 Stocks That Every 20-Year-Old Should Buy

    9 Stocks That Every 20-Year-Old Should Buy

    [Editor's note: "9 Stocks That Every 20-Year-Old Should Buy" was previously published in July 2019. It has since been updated to include the most relevant information available.]Investing in your 20s is not only smart, it's exciting. The best part about creating a long-term portfolio, whether while going back to school or taking time off, is having the time to invest in undervalued companies.When looking at stocks to buy in your 20s, it's all about opportunity cost, which is spent in spades throughout your late-teens and as an aimless 20-something. Long-term investors have the benefit of time, allowing them to ride out turbulence others can't.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYour 20s are a time of future-gazing, and as an investor, you should choose adaptable companies capitalizing on current trends. Just remember, no matter how solid the investment, it will go through periods of ups and downs.Centering your portfolio around risky stocks, however, isn't a brick-by-brick blueprint toward retirement wealth -- you should also consider faithful, dividend-paying stocks. Just like knowledge, wealth grows slowly and steadily. * 7 Stocks to Buy In a Flat Market While analysts claim there are some stocks you can hold "forever," it's important to keep up with what's in your portfolio and make changes according to how each company develops.If you're a 20-something looking to capitalize on long-term growth and dividends, then the following 10 stocks to buy are worth a look. TripAdvisor (TRIP)Source: Shutterstock Shares of travel review site TripAdvisor (NASDAQ:TRIP) took a beating in 2017 and 2018 mostly on investor concerns about new entrants like Airbnb and new search tools from powerhouses like Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) disrupting the space.However, TRIP stock has since made a significant comeback.Part of this comeback is the fact that TripAdvisor has something no other site in the online travel industry does: extensive data. Knowledge is power and TRIP definitely has that going for itself. The company is home to one of the largest online collections of traveler reviews, boasting over 500 million reviews encompassing seven million hospitality businesses.What's that mean exactly? For starters, access to mounds of data means TripAdvisor can better optimize the experience it offers its 415 million monthly users. That means pricing optimization, special offers tailored individually and stronger insights than competitors into their customers' needs.And that's only just scratched the surface of what it can do with such a robust database. Global tourism generated $7.6 trillion in 2014, and so long as it continues to grow, TRIP will continue beefing up its user database.For comparison's sake, Expedia (NASDAQ:EXPE) only brings in 84.5 million monthly users, while Priceline (NASDAQ:PCLN) has a fraction at 16 million.Having access to such robust data informs TripAdvisor's strategy, as the company recently reined in its InstantBooking feature in favor of giving users the superior experience of price comparisons that direct bookings to partner sites.According to Forbes, 70% of millennials say they're working just to pay for vacations and travel. Gen Z is becoming increasingly obsessed with travel from a social perspective. They want to go places and share their experience with others. TripAdvisor not only operates in the travel space, but its primary function is helping people find experiences others have enjoyed.Further, TRIP is expanding the functionality of its mobile site and app, both of which should help the firm gain traction with millennials. With the firm about to turn a corner, now would be a great time to add the stock to your long-term portfolio. Chevron (CVX)Source: Shutterstock While your 20s are definitely a time to make risky bets on growth stocks, it's important to round out your portfolio with stocks to build wealth slowly and steadily. That's why dividend stocks are attractive, particularly if they're consistent and sustainable. To that end, we have Chevron (NYSE:CVX), which is a dividend aristocrat.That doesn't mean it's walking around in fancy robes with its nose up, it means Chevron has increased its dividend annually without interruption for the past 25 years.Dividend aristocrats typically do whatever they can to maintain their status and that's certainly true in Chevron's case.Chevron currently yields just shy of 4%, which management continued to pay out even when crude prices were scraping the bottom of the barrel. With the firm on the rebound, investors will benefit from Chevron's cost-cutting measures and increased efficiency.Meanwhile, management is focused on improving profitability, even during the down cycle, which should be a boon for CVX stock as crude prices increase.Another thing to like about CVX is that it has a relatively small debt load with a quarterly debt-equity ratio of just 24%. Compare that to BP (NYSE:BP), for example, which has a debt ratio of 63%, and you can see that CVX is on the low end of debt accumulation in the oil sector.Chevron is a tightly run ship, giving the firm the ability to thrive in difficult times. That's good for long-term investors who might see oil cycle through another down period in the years to come. * 7 Deeply Discounted Energy Stocks to Buy Looking toward future growth, CVX is expecting to see its production rise to nearly three million barrels per day over the next 10 years. That figure takes into account Chevron's anticipated shale and capital projects as well as the firm's cost-cutting measures, which significantly reduced the firm's exploration potential.The firm's $200 billion market cap makes it one of the largest companies in the U.S. and a solid pick in the oil and gas sector. CVX offers stability and income growth, both of which will be useful to investors in their 20s. Facebook (FB)Source: Ink Drop / Investing in Facebook (NASDAQ:FB) now doesn't sound like an entirely new idea, but Zuckerberg & Co.'s days as merely a social media site are ending. I'm expecting to see the firm morph into an even larger tech powerhouse in the decades to come.Facebook has size and scale on its side, which is a huge advantage in the tech space. The company owns the two most popular messaging services in the world, Messenger and WhatsApp, and has yet to do anything about monetizing them.Simply allowing businesses to communicate directly with customers through these platforms would be a big moneymaker for FB advertising wise, but most expect that Facebook has bigger plans to harness the potential Messenger and WhatsApp hold.FB has also developed payment platforms, which would allow businesses to charge for services they offer via Facebook.Not only would that make Facebook's advertising business all the more profitable, because advertisements could more easily be converted into sales, but it would open up a new revenue stream for FB if the firm collects a fee for processing. Baidu (BIDU)Source: StreetVJ / Remember what I said about having time to absorb the ups and downs? Well, Baidu (NASDAQ:BIDU) is one of those stocks that you may have to absorb some downs with. The Chinese tech company has been compared to Google because the firm's search engine dominance resembles Google's early days.There is a huge amount of growth potential ahead for Chinese tech firms, especially a search engine like BIDU. Just over half of China's population has access to the internet, so the market is relatively new when you compare it to that of the U.S. Since the trade war can't last forever if time is your ally you have to at least consider BIDU stock.Not only that, but Baidu has been working to expand its autonomous driving technology in the race to create self-driving cars. The firm has already made its driverless car technology available for automakers to use and test in a bid to become somewhat of an autonomous car "operating system." * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off It's also likely that Chinese companies will get their cars on the road sooner because fewer people own cars in China. That makes for a higher adoption rate, as 75% of Chinese respondents indicated they would ride in a self-driving taxi, while only 52% of Americans would.What's more, China has a bigger auto industry and its government is hungry for large-scale projects. And while it seems counterintuitive considering China's complex system of roads, the real advantage is with navigation.The difficult conditions necessary to debut an autonomous vehicle in China means it will have a far easier time "porting" the system to the United States than the other way around. That means, for Baidu, international expansion will likely be much faster and less costly. Starbucks (SBUX)Source: monticello / Starbucks (NASDAQ:SBUX) is one of my favorite long-term buys because the company has proven itself to be an adaptable staple in markets all over the world. The company has weathered shifting consumer preferences toward independent, non-chain restaurants by incorporating local goods in their restaurants and revamping store appearances to reflect local cities.SBUX has also capitalized on the craft beer trend by creating its own Reserve Roastery where coffee lovers can sample different types of coffee and learn about the process. But all of that pales in comparison to SBUX's dominance in mobile.The Starbucks app is a textbook lesson in how to use mobile to enhance your business. Customers are able to upload money to the app and order and pay for their coffee in advance to avoid waiting in line; 30% of the firm's transactions take place on the app, a figure likely to grow even more as SBUX continues to invest in its mobile technology.Starbucks maintained an image millennials are comfortable with as the rest of the fast food industry struggled and the firm's focus on mobile has made it convenient to frequent. Netflix (NFLX)Source: Flickr via Mike K.Cutting the cable cord is gaining popularity in large part due to the growing popularity of streaming services like Netflix (NASDAQ:NFLX). The firm has already seen exponential growth over the past 10 years, causing some to wonder whether we're at the beginning of the end of NFLX stock's dominance.However, with a market cap under $1 billion, NFLX still has room to grow. If NFLX gains roughly 10% per year for the next 15, the firm would have a market cap of less than $150 billion, which isn't unreasonable when you consider Netflix still has a lot of room to run in foreign markets.Netflix is only just beginning to ramp up in countries around the world and the firm hasn't been able to turn out the kind of profit investors are looking for because it has to pay for content licensing and new content creation. * 7 Best Tech Stocks to Buy Right Now With that in mind, streaming is still a relatively new concept and as it becomes more common, NFLX will be establishing itself as a market leader around the globe. Waste Management (WM)Source: rblfmr / While admittedly not as shiny and new as stocks like NFLX, Waste Management (NYSE:WM) is a great stock to buy and hang on to because it operates in an industry almost certain to keep growing.Waste Management owns and operates landfills and collection trucks and negotiates contracts with local governments to collect and dispose of rubbish in the area. What's good about WM is the company's ownership of local refuse sites means the company doesn't suffer from a lot of customer turn-over.Not only that, we appear to be a long way off from changing the way we dispose of and recycle our garbage. Consumers are going to keep on consuming and producing waste companies like WM will deal with.Unlike tech firms, WM is unlikely to suffer from a major industry disruptor anytime soon, so it makes for a good stock to hold on to. Not to mention that WM offers a 1.74% dividend yield, so keeping it in the long-term is a great way to build wealth. General Motors (GM)Source: Linda Parton / U.S. automaker General Motors (NYSE:GM) is another good bet for a long-term investor because the company has a stake in all of the industry-changing trends on the horizon. GM bought up 9% of Lyft last year in an effort to get in on ride-sharing, a trend threatening to change the way people buy and use their cars.GM has also been a major player in the electric vehicle space, specifically designing mass-appeal cars like its Chevy Bolt. The car is eligible for a tax credit that brings its price down to the $30,000 level, making it accessible to a wider audience than most electric cars cater to.GM has also been working to develop driverless cars, and the firm's acquisition of Cruise Automation last year is proof it is a top priority. * 7 Tech Industry Dividend Stocks for Growth and Income GM has plans to create an autonomous electric car, a testament to management's belief that electric cars are the future of the auto industry. According to now-President Mark Reuss, creating a gas-powered autonomous vehicle is a wasted step. He believes that electric cars will soon dominate the roads, so autonomous driving software should be designed with that in mind.Reuss said that GM may be slower to develop autonomous driving software, but that's only because the firm is hoping to create technology that is designed for use in electric vehicles. International Business Machines (IBM)Source: JHVEPhoto / When you're in your 20s and looking for hot tech stocks to buy, International Business Machines Corp. (NYSE:IBM) doesn't exactly spring to mind, but the firm's tumultuous few years as a washed-up hardware firm have made IBM stock a bargain.IBM is doing some big things in the machine learning space and its Watson supercomputer has the potential to disrupt a wide variety of industries, from cybersecurity to health analytics. While IBM has yet to break out figures for Watson, its potential to slash healthcare costs and improve personalized medicine makes IBM a potential powerhouse.Watson may eventually be able to use massive databases of patient information to make connections between symptoms and diseases that medical professionals would have overlooked. This could revolutionize the way healthcare professionals diagnose, as well as save the healthcare industry loads of money by correctly identifying treatable conditions early on.But Watson isn't the only reason to scoop up IBM stock. The company has been successful so far in orchestrating its turnaround, and the company appears to be returning to growth as well as to have rounded a corner away from hardware and on to cloud computing and analytics.Those two segments make up more than half of IBM's revenue at this point, a good sign that the firm is on track to shift away from its legacy hardware business. The fact that its quickly growing strategic imperatives arm is becoming a much more substantial part of the firm's business is a good sign for future growth.Not only will shareholders reap the rewards of an IBM turnaround over the next decade, but the firm also pays out a 5.2% dividend yield, a sweet reward for riding out the turbulence. IBM generates an impressive amount of free cash flow and its 47% payout ratio means that dividend is stable and likely to increase in the years to come.At the time of this writing, Laura Hoy was long SBUX, FB and NFLX stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monthly Dividend Stocks to Buy to Pay the Bills * 7 Heavily Discounted Stocks to Buy Today * My 7 Worst Stock Picks of 2018 The post 9 Stocks That Every 20-Year-Old Should Buy appeared first on InvestorPlace.

  • Bolton Exit Shifts Outlook in Oil Market Roiled by Sanctions

    Bolton Exit Shifts Outlook in Oil Market Roiled by Sanctions

    (Bloomberg) -- The firing of U.S. National Security Advisor John Bolton gave oil markets some near-term supply comfort, while analysts were divided on whether the move will lead to a longer term softening in U.S. foreign policy toward Iran and Venezuela.Brent crude oil prices fell more than 2% after President Donald Trump announced via Twitter that he’d fired Bolton, widely held as one of his more hawkish foreign policy voices. Oil production in Iran has dropped by 40% and in Venezuela by 48% since Bolton took office in April 2018.The firing “could be a catalyst for a material de-escalation in the Iran standoff” and could bring back around 700,000 barrels a day of Iranian crude, possibly by the first quarter, Helima Croft, global head of commodity strategy for RBC Capital Markets LLC, said in a note Tuesday.At a White House news conference following the Bolton announcement, Secretary of State Michael Pompeo and Treasury Secretary Steven Mnuchin said they remain committed to the “maximum pressure” campaign against Iran and that they are in lockstep with Trump on the issue. The administration has repeatedly stated its intention to reduce oil exports from the OPEC producer to zero.“Secretary Pompeo is now the clear leader of the Trump national security team, and you would be hard-pressed to find a bigger hawk on both Venezuela and Iran,” Joseph McMonigle, an energy analyst for Hedgeye Research, said in a note Tuesday.Oil prices recovered a bit from their initial drop, settling down just 21 cents for the day at $62.38 a barrel.Eurasia Group said in an email that without Bolton -- who “has been ‘Dr. No’ when it comes to talks with Iran” -- there’s a better chance that Trump will meet with the Iranian president at the UN General Assembly.Trump withdrew from a nuclear agreement between Iran and world powers in the month following Bolton’s appointment. That decision squeezed the producer’s oil exports as its leading customers shunned purchases to avoid being subject to U.S. sanctions. America’s withdrawal also caused tensions within the Organization of Petroleum Exporting Countries, which is pursuing output curbs to prop up prices. Iran has accused fellow members including Saudi Arabia of seeking to usurp market share while its exports are under pressure.Bolton was also seen as a vocal opponent of extending waivers for U.S. companies that continue to do business in Venezuela, as the administration tightens financial pressure on President Nicolas Maduro. Last month, the U.S. extended waivers for Chevron Corp. and several drillers doing work in that nation, where oil output has fallen from a high of 3.7 million barrels a day in 1970 to 742,000 now. The 90-day waivers currently in place are due to expire on Oct. 25.“We remain hopeful that the license will be extended,” Ray Fohr, spokesman for San Ramon, California-based Chevron, said in an email. “If Chevron is forced to leave Venezuela, non-U.S. companies will fill the void and oil production will continue.”On Venezuela, “Trump had become very frustrated that Bolton’s maximum pressure gambit to get rid of Maduro wasn’t bearing fruit,” according to Eurasia Group. “Special Envoy Elliott Abrams is more open to some form of compromise.”“It’s possible but not likely that Bolton’s departure could open the door for another extension,” said David Goldwyn, a Washington-based energy consultant and former U.S. State Department special envoy under the Obama administration. “I would probably give it a 40% chance.”Others were less optimistic on waiver extensions amid the wait for Bolton’s replacement. Trump said he would name a successor next week.“The present position that the waiver’s going to end in two months is probably the position that will be maintained,” Russ Dallen, managing partner at consultant Caracas Capital, said in a phone interview from Miami. “The wheels are grinding that way. But it’s just going to depend on who steps up to handle that position now.”\--With assistance from Rachel Adams-Heard, Kevin Crowley and Pratish Narayanan.To contact the reporters on this story: Lucia Kassai in Houston at;David Wethe in Houston at dwethe@bloomberg.netTo contact the editors responsible for this story: David Marino at, Tina Davis, Pratish NarayananFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Big Oil Circles Permian Riches as Shale Stocks Collapse

    Big Oil Circles Permian Riches as Shale Stocks Collapse

    (Bloomberg) -- A bloodbath in energy stocks is creating a rich opportunity for Big Oil to dominate America’s hottest shale play.Independent producers in the Permian Basin of Texas and New Mexico are trading much lower than when Chevron Corp. bid for Anadarko Petroleum Corp. in April. Royal Dutch Shell Plc and ConocoPhillips have expressed interest in bulking up in shale at the right price. Exxon Mobil Corp.’s chief said Wednesday his company is keeping a “watchful eye” on the Permian for potential deals.Oil’s drop to near $55 a barrel, from $75 in October, is putting pressure on shale producers at a time when investors are losing faith in an industry that has burned about $200 billion of cash in a decade. Despite record U.S. output, the S&P index of independent exploration and production companies is trading near its troughs of 2008 and 2015, when crude prices sank south of $35 a barrel. The producers are now worth just 4.5 times their earnings before certain items, compared with 9 times about a year ago.“It’s clear there are many E&Ps trading well below the Chevron valuation watermark from April,” said Michael Roomberg, who helps manage $4.4 billion at Miller/Howard Investments Inc. He expects “several additional deals over the next several quarters, and wouldn’t be surprised if the majors are involved.”Pioneer Natural Resources Co. or Concho Resources Inc., which have both struggled this year, would be a good fit for Exxon, while Shell may look at smaller players like WPX Energy Inc. and Cimarex Energy Co., according to Tudor, Pickering, Holt & Co.The collapse in valuations has been so severe that the biggest shale producers may also come into play. EOG Resources Inc. and Occidental Petroleum Corp. could also be targeted, Ben Cook, a portfolio manager at BP Capital in Dallas, said earlier this year. Activist investor Carl Icahn is pushing for a shakeup of the board at Occidental.After a slow start in shale, Exxon and Chevron have expanded in the Permian at prodigious rates over the past two years and now see onshore exploration in the U.S. as a key part of their global growth plans. They expect to more than double output to roughly 1 million barrels a day each by the early 2020s.The two heavyweights are betting their ability to fund enormous drilling programs and build associated infrastructure like pipelines and gas terminals means they won’t encounter the growing pains the independents are currently experiencing.“If there is the opportunity to acquire something that brings unique value to Exxon Mobil, we’ll be in a position to transact on that,” Exxon CEO Darren Woods said at a Barclays Plc conference Wednesday.But he’s willing to let potential targets struggle for some time to get a better price.“Time’s on our side to let that play itself out,” Woods said. “I think people need to recalibrate what they’re experiencing in that unconventional space, and that will have an impact on how people value companies.”Chevron will be “opportunistic” in making acquisitions, the company’s North America head Jeff Gustavson said at the same conference. Any deal would have to be a strategic fit and be good value, he said.BP Plc entered the fray a year ago, acquiring BHP Group Ltd.’s onshore oil and gas assets for $10.5 billion. In hindsight, the timing looks bad given the slump in shale valuations since then.Waiting for too long could be risky as well. On the day Chevron bid for Anadarko (which it ended up losing to Occidental Petroleum Corp.), major shale producers surged as much as 12% as investors bet on a buyout frenzy.So far, Exxon, Chevron and Shell are looking smart.Some shale producers are struggling to pay creditors, with Sanchez Energy Corp. and Halcon Resources Corp. recently filing for bankruptcy protection.The majors “are going to go out there and run these guys into bankruptcy,” Mark Rossano, CEO of C6 Capital Holdings, said on Bloomberg TV. “They’re going to look to pick up acreage at significant discounts.”(Corrects Pioneer’s Permian output in chart titled ‘Major Rivalry’ in story published Sept. 4)To contact the reporter on this story: Kevin Crowley in Houston at kcrowley1@bloomberg.netTo contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.netFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Dow Jones Today: Apple Didn’t Save the Market

    Dow Jones Today: Apple Didn’t Save the Market

    Technology bellwether Apple (NASDAQ:AAPL) held its highly anticipated new products reveal today in California (plenty more on that later), and while the iPhone maker announced some interesting enhancements, markets barely moved on the news.Source: DW labs Incorporated / Market participants seemingly glossed over a report in the South China Morning Post out earlier this morning saying that China is finally readying to buy more agricultural products from the U.S., a sign that scheduled trade talks next month could actually happen and do so in an amicable fashion.Likely adding to weakness in stocks is ongoing momentum for value stocks, which will plague growth fare. Count me among those that need a little more convincing that value is "back," but the factor has been topping growth since early August.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell in Market-Cursed September Today, the Nasdaq Composite lost 0.04% while the S&P 500 rose 0.03%. The Dow Jones Industrial Average gained 0.28%. In late trading, 17 of the Dow's 30 components were higher. Apple Talk on the DowLots to get into with Apple, so let's get to it. As expected, iPhone enhancements (the new iPhone 11) were modest, revolving mostly around the camera and better battery life ahead of what is expected to be a more significant refresh of the popular smartphone ahead of the 5G rollout next year.The lower end iPhone 11 will go for $699, $50 below the iPhone XR launched last year, but the next two higher-up models are priced inline with the versions launched in 2018. So Apple is making modest efforts to get more cost-conscious consumers into the iPhone, but not a major effort.Speaking of costs, Apple said it's gaming service will launch later this month and cost just $4.99 per month. That's also the monthly fee on Apple TV+, which is big news because the $4.99 streaming monthly is well-below prior expectations and undercuts existing rivals in the streaming space.Shares of Netflix (NASDAQ:NFLX) and Dow components Walt Disney (NYSE:DIS), both of which offer streaming services or bundles at $13 per month, were lower by an average of 3% in late trading, the indicating the Apple + news pinched those stocks. Oil IssuesExxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), the Dow's two energy members, traded higher today, although oil retreated after President Donald Trump fired national security adviser John Bolton."I informed John Bolton last night that his services are no longer needed at the White House," said the president on Twitter (NYSE:TWTR). "I thank John very much for his service. I will be naming a new National Security Advisor next week." Interesting Dow WinnerIn today's unusual column, I submit to you Boeing (NYSE:BA). The largest member of the Dow gained 2.97% after it said August passenger jet deliveries slid 72% due in large part to the grounding of the 737 MAX plane.Troubles with the 737 MAX are, at this point, baked into Boeing stock, and the shares showed some resilience today after Barclays said it's likely to be early next year before the 737 MAX is back in the air, disappointing some on Wall Street that expected the jet to be operational again late this year. Unusual Dow LoserShares of McDonald's (NYSE:MCD), one of the Dow's best-performing stocks this year, slid nearly 4% on light news. McDonald's said it's acquiring Apprente, a company that develops voice technology that could help the fast food chain make its drive-thru lanes more efficient. Financial terms of the deal weren't disclosed, but earlier this year, McDonald's spent $300 million on Dynamic Yield Ltd., a data collector that helps retailers enhance product pitches.It's unlikely McDonald's is spending an alarming sum on Apprente, but the stock was decked today. Bottom Line on Dow Jones TodayRecently, the recession chorus has grown a bit louder. Whether the forecasts are proven accurate remains to be seen, but investors can mitigate risk with already high-flying, which could a significant price target boost today from Citigroup."We expect spot gold prices to trade stronger for longer, possibly breaching US$2,000 an ounce and posting new cyclical highs at some point in the next year or two," said the bank in a note out today.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Dow Jones Today: Apple Didn't Save the Market appeared first on InvestorPlace.

  • MarketWatch

    Dow flat despite gains for shares of Dow Inc., Chevron

    DOW UPDATE Shares of Dow Inc. and Chevron are trading higher Tuesday morning, sending the Dow Jones Industrial Average into positive territory. The Dow (DJIA) was most recently trading 13 points, or 0.

  • Chevron Rises 3%

    Chevron Rises 3% - Chevron (NYSE:CVX) rose by 3.01% to trade at $122.96 by 11:32 (15:32 GMT) on Tuesday on the NYSE exchange.

  • Is Chevron Corporation's (NYSE:CVX) High P/E Ratio A Problem For Investors?
    Simply Wall St.

    Is Chevron Corporation's (NYSE:CVX) High P/E Ratio A Problem For Investors?

    This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll apply a...

  • Chevron (CVX) Gains As Market Dips: What You Should Know

    Chevron (CVX) Gains As Market Dips: What You Should Know

    Chevron (CVX) closed at $119.38 in the latest trading session, marking a +0.95% move from the prior day.

  • Dow Jones Today: Looking for Direction

    Dow Jones Today: Looking for Direction

    Stocks struggled to find direction as traders took profits in some names that bounced higher last week with growth fare. Technology names got pinched today, but Monday's performances by the broader benchmarks were not too bad, nor where they impressive.Source: rafapress / Monday was a lethargic day, reminiscent of many during the summer months, but the S&P 500 entered the day just 1.80% below its all-time high and growth sectors, such as consumer discretionary and technology, were about 2% removed from records, so it wasn't surprising to see modest dips today.When all was said and done, the Nasdaq Composite was lower by 0.19% while the S&P 500 settled down by just 0.01%. The Dow Jones Industrial Average was the standout of the day, gaining 0.14%. In late trading, 17, or just over half the Dow's 30 members, were trading higher.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Industrial Stocks to Buy for a Strong U.S. Economy This week, barring any unexpected Twitter (NYSE:TWTR) activity from President Donald Trump, should be relatively quiet on the domestic headline front, but there are global considerations. The Organization of Petroleum Exporting Countries (OPEC) publishes its monthly demand forecasts on Wednesday, news that could move Dow components Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), two names that have recently steadied.On Thursday, the European Central Bank (ECB) is widely expected to reveal a rate cut, a move that could spark moribund European stocks and provide a lift to other riskier assets. Dow Dogs Have Their Day AgainWith ebullience for the Dow last week, some of the blue chip index's laggard names notched some nice gains. That group included trade-sensitive Caterpillar (NYSE:CAT). Importantly, there was follow-through as the industrial machinery maker added 3.74%, making it one of the best-performing Dow members to start the week.Slack global manufacturing data is a legitimate concern for shares of Caterpillar, but some analysts argue that investors have gotten too gloomy on the stock and that it may be pricing in more downside than is realistic.Caterpillar "could face another 1 to 2 quarters of negative [earnings per share] revisions due to dealer destocking in construction and weakness in upstream oil and gas," said Bank of America Merrill Lynch analyst Ross Gilardi in a note out today. "We advise investors to look through it because global [industrial indexes] are already below 50, central banks are stimulating, and the U.S. service economy (i.e. the consumer) is still humming."At the end of the resurgent dog spectrum is defensive name Walgreen Boost Alliance (NASDAQ:WBA), which has easily been one of the Dow's worst-performing components this year. Today, it was one of the best Dow stocks, posting a jaw-dropping (by its standards) gain of 5.76% on seemingly no news other than a recent decision by the company to tell shoppers to not enter its stores with firearms.There was some chatter out today that the recent bankruptcy of smaller rival Fred's could be beneficial to Walgreens, but a gain of this magnitude today seems to overshoot that news. Tech CheckTech was roughed up a bit today, but one day of weakness does not diminish the case for the largest sector in the S&P 500. Microsoft (NASDAQ:MSFT) was one of the tech names trading lower today. Over the weekend, Evercore ISI raised its price target on the stocks to $160 from $150, sparking some unusual (and bullish) option activity in the name today.Apple (NASDAQ:AAPL) traded modestly higher ahead of its Tuesday product reveal, which is expected to include some iPhone enhancements, though not of the stock moving variety. Yes, iPhone 11 will be impactful for Apple stock at some point, but for those watching tomorrow's event, the real near-term catalyst could be updates on Apple + streaming and other entertainment-related efforts. Dow Jones Bottom LineAs I noted above, this week should be light on headline risk, emphasis on "should be." Ebbing uncertainty could set the stage for more gains for stocks, albeit in incremental fashion, but there are other benefits to removing the overhang of doubt from investors' minds."Eventually, erratic policy and heightened uncertainty undermine confidence in a way that affects the real economy," notes BlackRock. "This could happen in a number of ways: a safe-haven bid that drives up the dollar and credit spreads and/or a sharp decline in business confidence that begins to impact spending and hiring plans. Should either start to occur, the risk is no longer just investor mood swings but a more pernicious slowdown and market correction. In the absence of those developments, while easy money cannot eliminate uncertainty it can mitigate the effects."Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post Dow Jones Today: Looking for Direction appeared first on InvestorPlace.


    Stocks - Wall Street Flat; Energy, Financial Stocks Vs. Tech Softness - Energy and financial stocks were higher Monday. But there were struggles among big tech stocks as well as the defensive stocks that have led the market in recent weeks.

  • Big Oil Is on the Prowl for Its Next Big Acquisition
    Motley Fool

    Big Oil Is on the Prowl for Its Next Big Acquisition

    ExxonMobil and Chevron both see consolidation ahead for the industry, especially in the Permian Basin.

  • 3 Top Oil Stocks to Buy Right Now
    Motley Fool

    3 Top Oil Stocks to Buy Right Now

    The industry has seen a downturn, but that may make this a good time to look for bargains.


    Oil Majors Go Bargain Hunting In The Permian

    The Permian used to be a place for wildcatters, but as investors are starting to lose patience with the so called ‘independents’, big oil is ready to go bargain hunting in America’s hottest shale basin

  • Oil Markets Bounce On Bullish Hopes

    Oil Markets Bounce On Bullish Hopes

    Bullish sentiment appears to be creeping back into oil markets as China and the U.S. agreed to hold trade talks in October while the EIA released another positive report