12.94 -0.06 (-0.46%)
Pre-Market: 8:13AM EDT
|Bid||12.93 x 1000|
|Ask||13.05 x 3000|
|Day's Range||11.51 - 14.20|
|52 Week Range||9.00 - 68.83|
|Beta (5Y Monthly)||1.75|
|PE Ratio (TTM)||N/A|
|Earnings Date||May 03, 2020 - May 07, 2020|
|Forward Dividend & Yield||0.44 (3.45%)|
|Ex-Dividend Date||Mar 08, 2020|
|1y Target Est||15.48|
Last year’s oil and gas merger mania seems to have stopped in its tracks as crashing oil prices and the coronavirus crisis weighs on the industry
NEW ORLEANS, April 03, 2020 -- Kahn Swick & Foti, LLC (“KSF”) and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors of pending.
Occidental disclosed two executive changes this week, shortly after a deal with Carl Icahn shook up the company's board of directors.
President Donald Trump on Friday met with chiefs of major oil companies and vowed that the U.S. energy sector will revive and he reiterated he saw a Russia-Saudi Arabia deal in the offing.
Oil prices rose ahead of President Trump's meeting with U.S. oil executives Friday and OPEC's emergency meeting on output cuts Monday.
With global infections topping 1 million and more U.S. states implementing stay-at-home orders, economists have slashed their forecasts for U.S. real GDP. Morgan Stanley now expects U.S. real GDP to plunge 38% in the second quarter. At 07:04 a.m. EDT, Dow e-minis were down 203 points, or 0.95%, S&P 500 e-minis were down 21.25 points, or 0.84% and Nasdaq 100 e-minis were down 64.25 points, or 0.84%.
STOCKSTOWATCHTODAY BLOG All eyes will be on the U.S. jobs number reported at 8:30 a.m. Eastern time. Economists foresee a drop in the number of people employed, although the data isn’t expected to capture the full impact of the Covid-19 outbreak.
Oil's collapse has become more of a demand issue, making a potential deal between Russia and Saudi Arabia less impactful, says oil analyst and editor of The Schork Report Stephen Schork.
Energy stocks soared Thursday, after President Donald Trump tweeted that he expects Saudi Arabia and Russia to cut oil production by about 10 million barrels, and "maybe substantially more." The SPDR Energy Select Sector ETF shot up 11.5% in morning trading, with all 27 components gaining ground, including 23 that were up by a double-digit percentage. Just before the tweet, the ETF was up about 5%. The ETF's biggest gainer was Diamondback Energy Inc.'s stock , which was vaulted 25.8% higher. Among the most-active ETF components, shares of Occidental Petroleum Corp. shot up 21.0%, Marathon Oil Corp. ran up 14.9%, Apache Corp. surged 21.4%, Exxon Mobil Corp. rallied 9.3%, Chevron Corp. climbed 11.9%, Halliburton Co. rallied 15.3% and Schlumberger N.V. gained 15.1%. Meanwhile, crude oil futures hiked up 27.7% and the Dow Jones Industrial Average tacked on 315 points, or 1.5%.
Sentiment was earlier lifted by a recovery in oil prices as U.S. President Donald Trump said he expected Saudi Arabia and Russia to reach an agreement to cut output to cope with plunging demand. Exxon Mobil Corp and Chevron Corp jumped more than 6% in premarket trading, while Occidental Petroleum , ConocoPhillips and Apache jumped more than 9%, leading gains among S&P 500 components.
Investors can create “conditional dividends” by selling downside put options or upside call options on stocks that they own.
(Bloomberg Opinion) -- There are a couple of ways of summarizing what’s happened with Occidental Petroleum Corp. since CEO Vicki Hollub went all-in on buying Anadarko Petroleum Corp. last year. One would be that the deal trashed Oxy’s relationship with shareholders and saddled it with too much debt, leading to chronic underperformance and, when disaster struck, a massive dividend cut. An alternative take might be:Ms. Hollub enhanced the value of Occidental’s portfolio of assets through the Anadarko acquisition, which strengthened Occidental’s long-term value proposition.That second one comes from Oxy’s preliminary proxy statement, filed this week.Here’s a quick sanity check by way of a chart. See which of the two assessments most closely aligns with this set of squiggles:One detects some uneasiness on Oxy’s part. It took the trouble to lay out “realizable” pay for executives in its proxy; the idea being that the actual value of stock-based awards plummeted with Oxy’s price. Hence, while Hollub’s headline total compensation for 2019 clocks in at almost $16 million, the company calculates its value as of March 24 was a mere $4.4 million. Salaries for 2020 have been slashed (although these typically account for only 10-15% of total compensation). Plus, the proxy discloses that Oscar Brown, the head of strategy who played a leading role in the Anadarko deal, is no longer with the company.Clearly, Hollub’s pay package isn’t worth what it was a couple of months ago. On the other hand, compared with a shareholder who just had most of their dividend taken away, the CEO is still being paid to wait. After all, the board presumably expects Hollub to preside over some sort of recovery in the share price (and, thereby, connected stock-based awards).Moreover, while realizable pay may now be worth a fraction of what it was when the board met in February, the more pertinent question is why was it worth so much in February? It was clear by then, even before the corona-crash, that Oxy’s gamble had inflicted big losses on shareholders and forced it to cut spending and growth targets. Total shareholder return in 2019 was negative 28% — worse than the sector, the market and the year before. Yet Hollub’s headline compensation rose by 13%.Then there are bonuses, typically adjusted to some percentage of a target level based on company performance. Oxy’s percentage for 2019: 175%. As is usual with these things, that number derives from a Rube Goldberg-esque set of performance metrics and weightings. In this case, it was complicated further by being split between pre- and post-acquisition objectives.Astoundingly, the executives were deemed to have exceeded expectations even more on the latter bit. Defined in exceedingly narrow terms, I suppose one could have argued back in February that, judged on things like realizing synergies or whatnot, the executives were hitting their marks. But context is everything, and the context here is a debacle. So perhaps stuff like realizing synergies should have been redefined as the bare minimum rather than bonus-worthy. Again, one detects a certain uneasy recognition of the dissonance here with the majority of Hollub’s bonus being paid in restricted stock units rather than cash.Oxy isn’t alone in setting executive compensation at odds with investors’ experience (see this). The same day it filed its proxy, Whiting Petroleum Corp. filed for chapter 11. While this Bakken-basin fracker cited Covid-19 and the Saudi-Russian oil price war, it already had an underlying (and familiar) condition of rising leverage and weak or negative free cash flow. Announcing its bankruptcy, the company also disclosed bonuses for its top executives, approved just days before, worth $14.6 million. That is actually two-thirds higher than Whiting’s cash balance at the end of December.Doug Terreson, an analyst at Evercore ISI who has been beating the drum on this misalignment for years, calculates that 15 CEOs of the integrated oil and exploration and production companies he covers were paid more than $2 billion in aggregate over the past decade. In exchange, shareholders netted a total return of zero, while the S&P 500 generated a positive total return of more than 250%. “This pay for performance disconnect has not gone unnoticed by the buy-side and is part of the reason why investors avoid energy stocks. The deck is stacked against them,” he writes.Still, the sheer drama of Oxy’s past year marks it out. Consider that the same filing lauding Oxy’s “enhanced” value after swallowing Anadarko also details the company’s recent agreement with one Carl Icahn under the award-worthy euphemism of “Board Refreshment.” The dissonance is deafening.This column does not necessarily reflect the opinion of 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.
NEW ORLEANS, April 01, 2020 -- ClaimsFiler, a FREE shareholder information service, reminds investors of pending deadlines in the following securities class action lawsuits:.
The Wall Street Journal reported Wednesday that President Trump is set to meet with U.S. oil industry executives to discuss ways to revive the industry.
Normally, I would gladly recommend Exxon Mobil (NYSE:XOM) stock at $38, especially when the dividend is over 9%. But of course, we are not in normal times. And it is unclear when things will get better with the novel coronavirus pandemic. But this is not the only problem. Exxon Mobil stock will likely be weighed down even after the virus is conquered.Source: Jonathan Weiss / Shutterstock.com That is, with Saudi Arabia's relentless policy of driving down the price of oil, the energy markets will take considerable time to get back on track. The country's plan is to produce 12.3 million barrels a day for April, up from 9.7 million in February.And as supply soars, there will be a precipitous drop in global spending. According to analysts at Bank of America, the demand will drop by a grueling 12 million barrels per day. This would be a record, actually.InvestorPlace - Stock Market News, Stock Advice & Trading TipsJust yesterday, the price of U.S. West Texas Intermediate crude sunk by 6.6% to $20.09. It's at the lowest point since early 2002. Just this month, the price of crude is off by more than 50%. * 30 Stocks on a Deathwatch So how far may it drop? It's far from clear. But many analysts continue to be quite bearish. For example, Raymond James' John Freeman is forecasting $10 a barrel. Major RestructuringIn mid-march, Exxon CEO Darren Woods announced the following: "Based on this unprecedented environment, we are evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term … We will outline plans when they are finalized."He did not provide any specific details. But then again, there is lots of room to cut back on the capital spending. Note the original plan was for $30 to $35 billion from 2020 to 2025. As for operating expenses, there will likely be shutdowns of various operations as well as layoffs.Granted, the company does have the benefit of a diversified platform, which includes refineries, retail operations and chemicals. But even these businesses are likely to quickly decelerate as economic activity stalls.So what about Exxon's liquidity?For the most part, I think the company should be OK. Even though S&P Global cut the rating on the company's bonds, the credit rating is still a standout AA. In other words, there should be deep lending capacity.Yet I think the dividend could be in jeopardy. It's really difficult to justify shelling out $15 billion to shareholders every year. After all, other companies in the oil industry have already either eliminated or cut back their dividends, such as Occidental Petroleum (NYSE:OXY). Bottom Line on Exxon Mobil StockOne encouraging sign is that there has been increased insider buying for Exxon Mobil stock. One purchase came from senior vice president and principal financial officer Andrew Swiger, who paid $1 million for 30,000 shares (his total is now 1.2 million). Then there is Neil Duffin, who is Exxon's president of the Global Projects company. He bought $1.1 million of Exxon Mobil shares (he owns a total of 571,150).While insider buying is certainly a positive sign, it is far from fool-proof. It also tends to be early. The main reason is that insiders need to hold onto their shares for six months before realizing gains.Thus, in the near-term, it's probably best to wait on Exxon Mobile stock. There is just too much uncertainty right now.Tom Taulli (@ttaulli) is the author of various books on investing and technology, including Artificial Intelligence Basics, High-Profit IPO Strategies and All About Short Selling. He is also the founder of WebIPO, which was one of the first platforms for public offerings during the 1990s. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Donat Expect Exxon Mobil Stock to Be a Gusher Any Time Soon appeared first on InvestorPlace.
President Donald Trump will meet with top U.S. oil-company executives on Friday to discuss possible aid for the industry amid plummeting oil prices, according to a report in The Wall Street Journal that cited people familiar with the matter. The meeting will take place at the White House and executives invited include Exxon Mobil Corp. Chief Executive Darren Woods, Chevron Corp. Chief Executive Mike Wirth, Occidental Petroleum Corp. Chief Executive Vicki Hollub, and Continental Resources Inc. Chief Executive Harold Hamm, the newspaper said. Oil prices have fallen precipitously in recent weeks, hit by surging supply from a price war between Russia and Saudi Arabia and sharply lower demand because of the coronavirus pandemic. U.S.-traded crude oil prices have hovered around $20 a barrel in recent sessions, the lowest in nearly two decades.
By Stephen Page As corporate boards work to navigate companies through this unprecedented time, directors can leverage digital governance solutions to optimize their communication as they respond to the virus and prepare for the proxy and AGM season. As businesses are actively responding to the COVID-19 pandemic, corporate boards are working to navigate their companies […]
Being an “investment-grade” borrower has never been more important in corporate America, thanks to the Federal Reserve. If only corporate America had better credit.
Dear Readers, CorpGov is pleased to invite you to a Webinar on Thursday, April 2, at 2pm EST: Best Corporate Governance Practices During the Coronavirus Crisis and Beyond, sponsored by Vinson & Elkins LLP. Please register at this link: https://icrinc.zoom.us/webinar/register/WN_ls6q2vd_SCitYWWNjOK8Dw We will discuss a range of topics related to corporate governance including recent activist investor behavior, poison […]
CEDARHURST, N.Y. , March 31, 2020 -- The securities litigation law firm of Kuznicki Law PLLC issues this alert to shareholders of the following publicly traded companies. Six.