62.50 -0.15 (-0.24%)
Pre-Market: 4:29AM EDT
|Bid||0.00 x 900|
|Ask||66.00 x 1400|
|Day's Range||62.53 - 64.60|
|52 Week Range||56.83 - 87.67|
|Beta (3Y Monthly)||1.15|
|PE Ratio (TTM)||11.62|
|Earnings Date||May 6, 2019|
|Forward Dividend & Yield||3.12 (4.71%)|
|1y Target Est||78.07|
Will Oil Extend Its Gains following China's Latest Data Release?(Continued from Prior Part)EIA inventory data On April 17, the EIA (U.S. Energy Information Administration) reported a fall of 1.396 MMbbls (million barrels) in US crude oil
Early last week, M&A; activity for the year was lagging. Then came the $33 billion sale of Anadarko to Chevron. With that deal, everything changed – at least statistically. The equity and debt markets continue to be stingy, so what do companies do for new capital?
Today we will run through one way of estimating the intrinsic value of Occidental Petroleum Corporation (NYSE:OXY) by taking the expected future cash flows and discounting them to today's value. I will be using the Discounted...
Shares of drillers with positions in the Permian Basin are on the rise following Chevron's $33 billion deal to acquire Anadarko Petroleum. Analysts say the rally in drilling stocks is largely a bet on more mergers and acquisitions in the space. Chevron's $33 billion deal to buy Anadarko Petroleum APC is having a halo effect for U.S. oil drillers, as investors place bets on the next acquisition target in the U.S. shale oil space.
What to Expect from ConocoPhillips' Q1 Earnings(Continued from Prior Part)ConocoPhillips On April 12, Morgan Stanley increased its target price for ConocoPhillips (COP) by $5 to $83. On March 21, Simmons changed its rating on ConocoPhillips from
Clashes in Libya drove oil prices to multi-month highs last week. Pullbacks in these three energy sector ETFs provide a trading opportunity.
Chesapeake Energy (NYSE:CHK) stock is a popular name, partly due to its low price tag. After its latest breakdown, though, CHK stock is changing hands for just over $3 per share. After trading below $2 in December and north of $5 last summer, CHK stock has had quite a volatile ride, to say the least.But should investors should have faith in Chesapeake Energy stock? That question is particularly relevant, considering Chevron (NYSE:CVX) surprisingly bought Anadarko Petroleum (NYSE:APC) for $33 billion, edging out Occidental Petroleum (NYSE:OXY) . Some investors are now searching for the next M&A candidate in the space, and many are likely wondering if it's worth holding CHK stock in the wake of the Anadarko deal. * 7 Dental Stocks to Buy That Will Make You Smile Is Chesapeake Energy Stock a Buyout Candidate?Given the Anadarko deal, some may be thinking that CHK is an M&A candidate. While CHK stock price may be low , and the market cap of Chesapeake Energy stock is below $5 billion, those numbers are low for a reason. While CHK stock currently has a market cap of $4.97 billion, it has an enterprise value of more than $15.6 billion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat doesn't mean a deal is out of the picture, but because of CHK's debt load, the number of companies that might be interested in buying it is limited. The company has more than $7 billion of long-term debt, and its current liabilities are almost double the value of its current assets.CHK has reported strong net income, totaling $949 million and $873 million, for the last two years. But its cash flows are not attractive, and Chesapeake has some rather obvious balance-sheet issues. That's not to say management isn't trying or that CHK can't improve. But CHK stock has been below $10 for almost four years, and it's been a sub-$5 stock for most of the last two, years. That wouldn't be the case if things were going well for CHK.Acquirers can do the math, too. Trading Chesapeake Energy Stock So is CHK stock breaking down at this point? The action isn't promising, but we're not wheeling out the coffin just yet. From its December lows, Chesapeake Energy stock has done a great job reclaiming its 20-day and 50-day moving averages and riding uptrend support (depicted by the purple line) higher. When Chesapeake Energy stock hit $3.50 earlier this month, the shares were up about 75% on the year.However, that level acted as resistance, which is no surprise given that it has been a relevant support level in the past. When a notable level of support breaks down, it generally turns into resistance and vice versa. The recent pullback from $3.50 was more than just a stall, though. CHK stock quickly tumbled through uptrend support and its 20-day moving average.As a result, those interested in CHK should watch the 50-day moving average and the $3 level. If these levels fail, CHK stock will be flailing around looking for support, and could fall to $2.50.If the 50-day and $3 level hold though, Chesapeake Energy stock could rally. The first test will be if it can reclaim its uptrend support and the 20-day moving average.Bulls' sights are clearly set on $3.50. It will be critical for CHK stock to get through that level, but the 200-day moving average is also key for CHK. That is where bulls need to be careful with their expectations. In addition to the $3.50 hurdle, CHK stock also has the 200-day overhead, as well as downtrend resistance (depicted by the blue line). Clearing all of those marks will be difficult for Chesapeake Energy stock, to say the least. The Bottom Line on CHK StockMany investors love the fact that CHK stock is a sub-$5 stock with almost $10 billion in sales and a positive bottom line.But it doesn't matter, nor does it matter that Chesapeake Energy stock trades at just over five times its earnings. CHK has balance-sheet issues, and investors who buy CHK stock need to realize this is a speculative holding.Investors who want a safer energy holding should consider Exxon Mobil (NYSE:XOM), BP plc (NYSE:BP), or Chevron, especially if the latter stock drops down near $108.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Is Chesapeake Energy Stock an Acquisition Target? appeared first on InvestorPlace.
Has Oil Lost Its Uptrend?(Continued from Prior Part)Changes in inventory levelsOn April 17, the EIA (U.S. Energy Information Administration) is scheduled to announce last week’s US crude oil inventory data. A fall by more than 4.77 MMbbls (million
Has Oil Lost Its Uptrend?(Continued from Prior Part)Futures spread On April 15, the US crude oil May 2019 futures closed ~$2 above the May 2020 futures. On April 8, the futures spread was at a premium of $3.5. On April 8–15, US crude oil May
Beta Crude Connector is going to aid in the transportation of Concho's (CXO) growing production in the Northern Midland Basin in the Permian play.
FT premium subscribers can click here to receive Due Diligence every day by email. The duo, who are cousins, were in town for the annual get-together of KKR partners. Japan, said the two veterans of some of the greatest PE derring-do of the past four decades, is now KKR’s “highest priority” outside the US.
were cut short on Friday after Chevron announced it would acquire Anadarko for $33 billion, stopping Occidental in its tracks from potentially raising its offer price. CNBC reported on Monday that Friday's mega-energy merger announcement between Chevron and Anadarko cut Occidental's ongoing overtures to Anadarko short.
As of Monday morning, Chevron shares have dropped 4.6 percent since the oil major announced an agreed-upon offer for Anadarko of $65 a share. The second warning is the drubbing Occidental has taken. It suffered one of the biggest drops in the sector Friday — when most oil stocks were up — though not as much as Chevron’s. By lunchtime Monday, though, it was down more than 6 percent from Thursday’s close.
Chevron Corp. (NYSE: CVX ), the second-largest U.S. oil company, set the energy sector buzzing Friday when it announced a billion deal to acquire Anadarko Petroleum Corp. (NYSE: APC ). Some market observers ...
Merger talks between Occidental Petroleum and Anadarko Petroleum were ongoing when Chevron announced it would acquire Anadarko, sources say.
The early years of the US shale oil and gas industry, documented well in both Russell Gold’s The Boom and Gregory Zuckerman’s The Frackers, were a colourful era, full of big personalities, inspired visionaries and dubious chancers. will accelerate the process of the shale industry being absorbed into Big Oil, and there are fundamental financial reasons why we can expect that trend to continue. in the Permian Basin, thanks largely to an accident of history.
** S&P 500 posts 0.5% weekly gain, comes within 1% of record high, as market on Fri cashes in on bank earnings ** Indeed, the SPX is striving for its high as the DJI holds the line ** Though, when it comes ...
Oil major Chevron Corp's $33 billion deal on Friday to acquire Anadarko Petroleum Corp has some investors and industry executives asking whether it is time for other U.S. shale oil and gas producers to consider selling themselves. Anadarko has been one of the pioneers of the shale revolution, which turned the United States into the world's biggest oil producer, overtaking Russia and Saudi Arabia. The Houston-based company's willingness to ink a sale, rather than capitalize on oil prices rebounding, illustrates the significant challenges facing many U.S. shale producers.
The $65-a-share offer for Anadarko represents a 39 percent premium to Thursday’s price, but the stock traded at about $77 less than a year ago. “I don’t necessarily feel like they overpaid even with the premium embedded in the deal,” said Noah Barrett, who helps manage $328 billion at Janus Capital Management in Denver. Like other U.S. explorers, Anadarko had been punished by investors for participating in a shale boom that has delivered record crude production but little in the way of cash returns.
Pioneer, Concho and Noble Energy Inc. surged Friday after Chevron unveiled plans to buy Anadarko, a deal that expands the supermajor’s presence in the Permian region, Gulf of Mexico and East Africa. The transaction vaults Chevron into the rarefied air of rivals Exxon Mobil Corp. and Royal Dutch Shell Plc, which in turn may be roused to make acquisitions of their own.
Shares of the Houston-based petroleum firm fell quickly in morning trading after news that its higher bid wasn't enough to capture Anadarko. CNBC reported that the OXY bid more than $70 a share for Anadarko in cash and stock. The Chevron deal does not include that requirement.
The "Halftime Report" traders answer viewer questions on Delta Airlines and Occidental Petroleum.