|Bid||40.90 x 1400|
|Ask||41.00 x 800|
|Day's Range||40.85 - 41.26|
|52 Week Range||39.97 - 75.79|
|Beta (3Y Monthly)||1.25|
|PE Ratio (TTM)||8.07|
|Earnings Date||Nov 4, 2019|
|Forward Dividend & Yield||3.16 (7.74%)|
|1y Target Est||53.15|
NEW YORK/HOUSTON, Oct 21 (Reuters) - UBS Group AG and the energy arm of Piper Jaffray Companies have cut staff in their oil and gas investment banking teams, three people familiar with the matter said on Monday, as U.S. dealmaking continues to dry up. Mergers and acquisitions activity within the shale business is at its lowest level in a decade, excluding Occidental Petroleum Corp's purchase of Anadarko Petroleum Corp, as shareholders squeeze producers to focus on returns and develop existing acreage rather than expansion. The decline has left investment bankers that advise on such transactions without enough work.
Bernstein Research published its latest Quant+Fundamental stock picks. Three names are holdovers from April: Philip Morris, CVS Health, and Southwest Airlines.
There is a song being played in the US economy, and those same baby boomers are rocking out on the lowest interest rates of the last 80 years Continue reading...
ANNOUNCES THIRD-QUARTER 2019 DISTRIBUTION AND EARNINGS CONFERENCE CALL HOUSTON , Oct. 17, 2019 /PRNewswire/ -- Today, Western Midstream Partners, LP (NYSE:WES) ("WES" or the "Partnership") ...
What is described as the world’s most progressive policy for capturing planet-warming carbon dioxide was backed by a leader who ridicules climate change. In February 2018, US President Donald Trump signed ...
(Bloomberg Opinion) -- Occidental Peteroleum Corp. is offering you the chance of a lifetime: to be just like Warren Buffett.Oxy’s stock yields 7.7% and hit 7.9% at one point on Monday. That is roughly four times what the S&P 500 pays. More importantly, it is within a whisker of 8% — the yield Oxy now also pays to one Berkshire Hathaway Inc. These two things are not unrelated.Recall that Oxy won this year’s battle for Anadarko Petroleum Corp. by outbidding Chevron Corp., partly with the aid of $10 billion from Berkshire. This came with the usual payday-loan accoutrements of that high yield, a takeout premium and warrants. Buffett’s cash also helped Oxy avoid putting the deal to its own shareholders — although many appear to have voted it down anyway, in a manner of speaking:Oxy’s stint in the doghouse partly reflects fear, with oil dropping just as Oxy’s debt ballooned. For at least the next year or so, the equity story looks yoked to the twists and turns of the trade war, which is as unsettling as it sounds.More importantly, though, Oxy’s bet on Anadarko has put it at loggerheads with what investors want from oil companies these days.What do they want? Dividends. More to the point, investors have reset the parameters of what’s acceptable in terms of how oil companies apportion cash flow. Poor returns on prior investment by the industry plus concerns about a looming peak in oil demand add up to investors wanting more of that cash directed into their own pockets rather than into drilling budgets. Oil majors have adjusted accordingly:Broadly, there are three claimants on cash flow: the company (capex), creditors (interest and principal) and shareholders (dividends). The sector zeitgeist is to minimize the first two to make more room for the latter.Oxy was an exemplar of this, but the Anadarko deal has changed the equation. Even allowing for disposals announced so far and a joint-venture payment from Ecopetrol SA, pro forma net debt has virtually tripled from Oxy’s standalone level. The extra leverage will haunt Oxy if 2020 turns out to be bad for oil prices – and based on the market’s remarkably sanguine reaction to the recent attack on Saudi Arabia, it might well be.To counter this, Oxy says a round of oil-price hedging means it can cover its dividend if West Texas Intermediate crude oil averages in the low $40s per barrel next year (it’s averaged about $57 so far in 2019). By 2021, Oxy says, it could break even at $40 a barrel without hedging as various efficiencies kick in. Consensus forecasts compiled by Bloomberg show Oxy generating just over $3 billion of free cash flow in 2020 versus a pro forma dividend payment (assuming it stays flat) of just over $2.8 billion.The caveat to this resilience case is that it would mean Oxy cutting back on capex to “maintenance” levels, implying little or no growth. Oxy raised its guidance for third-quarter production by 3% on Tuesday morning, which is positive. But if weak oil prices portend a flat line for the next year or so, then investors’ demand for that high dividend yield wouldn’t be going anywhere.The added fixed costs of higher interest payments and the Berkshire dividend have made Oxy more of a levered play on oil prices at a time when the latter look lifeless. Oxy’s most recent earnings presentation emphasized billions of excess cash (and growth) in 2021 if oil averages $60 or $70 a barrel. In the meantime, though, a big chunk of any value from the Anadarko deal accrues to Buffett. Of the $2 billion of annual pre-tax cost savings (“synergies”) from the deal, $800 million goes post-tax to servicing those preferreds. Indeed, factor in the warrants and take-out premium, plus the $1 billion break-up fee paid to Chevron — along with some other assumptions (1) — and while Oxy’s legacy shareholders get 50% of the net present value of the synergies, Berkshire takes 40%.(2)Oxy expects another $1.5 billion of capex synergies from the Anadarko deal, although this figure came with lower growth guidance so the actual gain in value is less clear, especially if the budget gets slashed toward maintenance levels in the near term.An earnings call is due in three weeks, and Oxy will need to double down on the reassurance it gave in early August. Progress on disposals to cut debt would help. An obvious choice is the stake in Western Gas Partners LP inherited from Anadarko. But this hasn’t materialized yet, and the value of the common units held in Western Gas has dropped by $1.9 billion since the bidding for Anadarko got underway in April. Absent that, details on alternative candidates are needed.Perhaps more importantly, Oxy must make a robust case for synergies coming through sooner rather than later. The current narrative of resilience and leverage to higher oil prices offers some defense against worries about the dividend’s sustainability. However, the oil-price option gets little traction in the current environment where investors are focused on cash today rather than theoretical windfalls tomorrow. Having tilted the cash flow math toward interest and those Buffett payments, Oxy is in a race to show something tangible for its own shareholders coming through from this deal. Looking at that dividend yield, they require some convincing.(1) Assumespreferreds are redeemed for 105% of face value on the 10th anniversary of the deal and all dividends have been paid in full with no accruals. Warrants valued at $542 million using the Bloomberg options calculator as of August 9, 2019 (day of Anadarko acquisition's completion) and assumed to convert to a pro forma stake in Oxy of 8.1%. Tax rate of 21% and cash flows discounted at 10%.(2) Anadarko's legacy shareholders get just under 10%.To contact the author of this story: Liam Denning at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Gongloff at email@example.comThis 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/opinion©2019 Bloomberg L.P.
HOUSTON/NEW YORK/LONDON (Reuters) - Rates to charter oil tankers from the Arab Gulf, United Kingdom and the U.S. Gulf Coast to Asia surged to fresh highs on Friday as global oil traders grappled with a tanker shortage in the aftermath of U.S. sanctions on units of Chinese giant COSCO. Occidental Petroleum Corp tentatively chartered a supertanker to ship U.S. crude from the U.S. Gulf Coast to Asia for a record $15.8 million this week, three sources said on Friday. Royal Dutch Shell chartered the Suezmax vessel Amoureux this week for $9.2 million to ship crude from Teesport, U.K. to Dalian, China in early November, according to a shipping source and Refinitiv Eikon data.
Houston-based Occidental Petroleum Corp. hired CBRE to list the former ConocoPhillips campus after announcing in August that it would not move its operation to the site. The property is now officially on the market.
Hedge funds run by legendary names like George Soros and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the […]
HOUSTON, Oct. 10, 2019 -- Occidental Petroleum Corporation (NYSE:OXY) will announce its third quarter 2019 financial results after close of market on Monday, November 4, 2019,.
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll look at...
Chevron stock has moved with volatile oil prices amid geopolitical issues. But is it still worth buying? Find out what the expert analysis says
It pays to work at many of the largest public companies based in the Houston area. See how much the median employees at the 25 highest-paying local companies make.
European supermajors BP and Shell occupy the top spots on opposite sides of Rystad Energy’s M&A ranking for the oil and gas sector during the last five-year period
Occidental Petroleum Corp has put plans to divest part of its ownership in pipeline operator Western Midstream Partners on hold until next year, after failing to attract an offer it deemed attractive, people familiar with the matter said on Friday. The Houston-based oil and gas exploration and production company inherited Western Midstream earlier this year as part of its $38 billion acquisition of Anadarko Petroleum Corp, a move which gave it substantial Permian Basin acreage but also assets in areas it had previously exited or had little interest in. Occidental has moved to offload some of these superfluous positions.