|Bid||16.32 x 2200|
|Ask||16.33 x 800|
|Day's Range||15.84 - 16.39|
|52 Week Range||11.93 - 25.43|
|PE Ratio (TTM)||12.19|
|Earnings Date||Jul 30, 2018 - Aug 3, 2018|
|Forward Dividend & Yield||0.08 (0.57%)|
|1y Target Est||21.68|
The S&P 500’s top gainers on May 21 were: Range Resources (RRC) gained 6%. Kimco Realty (KIM) gained 4.2%. Newfield Exploration (NFX) gained 4%. Micron Technology (MU) gained 3.9%. Boeing Company (BA) gained 3.6%. Range Resources
The Dow Jones Industrial Average jumped nearly 300 points today. If the Dow Jones Industrial Average's slump from its January high was about the potential for a trade war, then one of the biggest impediments to further gains appears to have been removed today. In tweets and other reports, the White House appeared to suggest that it would hold off on placing tariffs on China in favor of negotiations.
For the week starting on May 14, crude oil (USO) prices increased ~1.1% or from last week’s close of $70.70 per barrel to $71.49 per barrel by Wednesday. Unleaded gasoline (UGA) and heating oil prices have risen ~2.8% and ~2.1% this week.
Resolutions passed by slim margins, but these proposals barely registered on investors’ radars only a few years ago.
Between May 10 and May 17, natural gas June futures rose 1.6%, and implied volatility rose 0.5%. Since March, these two variables have broadly diverged. Price forecast
Between May 9 and May 16, our list of natural gas–weighted stocks rose 6.6% compared to a 2.8% upside in natural gas June futures.
Between May 9 and May 16, none of the natural gas–weighted stocks on our list had a correlation of less than 46% with US crude oil June futures. Gulfport Energy (GPOR) had the least correlation of 46.7% with US crude oil futures in the past five trading sessions. In fact, it also had the most negative correlation with natural gas futures, which we looked at in the previous part of this series.
On May 16, the EIA released its weekly crude oil inventory report. The EIA reported that US crude oil inventories declined by ~1.4 MMbbls to 432.3 MMbbls on May 4–11. The inventories also declined by 88.4 MMbbls or ~17% from a year ago.
According to the EIA’s (U.S. Energy Information Administration) latest Drilling Productivity Report, US crude oil production from the seven key shale plays (Anadarko, Appalachia, Bakken, Eagle Ford, Haynesville, Niobrara, and Permian) will rise 144 Mboepd (thousand barrels of oil equivalent per day) in June to ~7.2 MMboepd (million barrels of oil equivalent per day) compared to May.
As of May 14, Southwestern Energy (SWN) had an implied volatility of 44.3%, which is lower than 62.2% at the end of the first quarter. Based on Southwestern Energy’s implied volatility of 44.3% and assuming a normal distribution of prices, 365 days in a year, and a standard deviation of one, SWN stock is expected to close between $4.69 and $4.15 in the next seven days.
On May 3, Occidental Petroleum (OXY) announced a quarterly dividend of $0.77 per share on its common stock. This would be the dividend payment for 2Q18. The indicated annual dividend rate is $3.08 per share.
Stelliam said compensation for the management team has "remained generous over the past four years while the stock has declined approximately 80 percent."
On May 2–9, our list of natural gas–weighted stocks rose 5.1%, while natural gas June futures fell 0.6% during this period. In the trailing week, natural gas–weighted stocks diverged from natural gas’s fall.
The natural gas–weighted stocks that could be the most sensitive to US crude oil’s moves based on the correlations in the past five trading sessions with US crude oil June futures include: Chesapeake Energy (CHK) at 77.6% Gulfport Energy (GPOR) at 56.8% Range Resources (RRC) at 22.3%
On May 9, natural gas June futures rose 0.2% and closed at $2.74 per MMBtu (million British thermal units). On May 2–9, natural gas June futures fell 0.6%. On May 10, the EIA’s (U.S. Energy Information Administration) inventory data could be an important factor for natural gas prices.
Denbury Resources (DNR) announced its 1Q18 earnings on May 8 before the market opened. The company reported a better-than-expected profit of ~$54 million in 1Q18. Wall Street analysts were expecting a lower profit of ~$43 million. On a year-over-year basis, DNR turned profitable after 1Q17’s loss of ~$7 million. Even excluding one-time items, DNR’s profits increased ~13% sequentially when compared with a profit of ~$48 million in 4Q17.
DENVER, May 9, 2018 /PRNewswire/ -- EnerCom, Inc. is pleased to update presenting exploration and production sector oil and gas companies for the 23rd annual edition of its popular The Oil & Gas Conference®, coming this summer to Denver, Colo. Conference Details: The Oil & Gas Conference® 23 offers investment professionals the opportunity to listen to senior management teams in the oil and gas industry present operational and financial strategies and learn about important energy topics affecting the global oil and gas industry.
As of May 7, Reuters reported ten analysts with recommendations on CNX. Of these, 40% have “strong buy” ratings, 20% have “buy” ratings, and the remaining 40% have “hold” ratings for CNX. There’s no “sell” or “strong sell” recommendation on the stock.
The EIA estimates that Cushing inventories increased by 0.4 MMbbls (million barrels) to 35.7 MMbbls on April 20–27. Cushing inventories also rose for the seventh time in eight weeks. However, the inventories dropped by ~31 MMbbls or 46% YoY (year-over-year).
For 1Q18, CNX Resources (CNX) reported total production of 129.5 Bcfe (billion cubic feet equivalent). CNX Resources’ 1Q18 production is ~36% higher than its 1Q17 production of 95 Bcfe. Sequentially, CNX Resources’ 1Q18 production is ~9% higher than 4Q17.
Marathon Oil (MRO) announced its 1Q18 earnings after the market closed on May 2. According to its earnings press release, MRO reported a better-than-expected profit of ~$154 million in 1Q18. Wall Street analysts were expecting a profit of ~$108 million.
As of May 3, Reuters reported that 29 analysts gave recommendations on Encana (ECA). Of the analysts, ~31% have “strong buy,” ~66% have “buy,” and ~3% have “hold” recommendations on Encana. There aren’t any “sell” or “strong sell” recommendations on the stock.
PointLogic, a market intelligence company, estimates that US natural gas consumption fell ~9% to 57.8 Bcf per day from April 26 to May 2. However, consumption has increased ~1.5% or by 0.9 Bcf (billion cubic feet) per day year-over-year.
Yahoo Finance's Jared Blikre joins Seana Smith from the floor of the New York Stock Exchange to discuss the latest market moves.