|Bid||0.00 x 4000|
|Ask||0.00 x 800|
|Day's Range||68.21 - 68.97|
|52 Week Range||64.65 - 83.49|
|Beta (3Y Monthly)||1.00|
|PE Ratio (TTM)||19.93|
|Earnings Date||Jan 30, 2020 - Feb 3, 2020|
|Forward Dividend & Yield||3.48 (5.07%)|
|1y Target Est||79.20|
Saudi Aramco is expected to be valued at $1.7 trillion dollars with an IPO price of 32 riyals per share, according to Reuters. Lami Ajibesin, Anchin Managing Director joins Yahoo Finance's On the Move to discuss.
The U.S. shale patch is showing serious signs of financial distress, but a few companies continue to drill profitably for oil & gas in America’s most prolific shale basins
Generating safe, regular income and preserving capital are two primary objectives in retirement. The best retirement stocks to buy, then - whether you're buying in 2019 or any other year - must be quality dividend payers that can help meet both of those goals in the long-term.Unlike many fixed-income investments, numerous dividend stocks offer relatively high yields, grow their payouts each year and appreciate in price over time as their businesses generate more profits and become more valuable.Not all dividends are safe, however. From General Electric (GE) and Owens & Minor (OMI) to L Brands (LB) and Buckeye Partners LP (BPL), several high-profile dividend-payers slashed their payouts in 2018, sending their stock prices tumbling. So the dividend stocks you depend on must be chosen with care.These are the 19 best retirement stocks to buy for 2019. Research firm Simply Safe Dividends developed a Dividend Safety Score system that has helped investors avoid more than 98% of dividend cuts, including each of those companies listed above. The 19 stocks on this list have solid Dividend Safety Scores and generous yields near 4% or higher, making them appealing retirement stocks for income. Importantly, they also have strong potential to maintain and grow their dividends in all manner of economic and market environments. SEE ALSO: 101 Best Dividend Stocks to Buy for 2019 and Beyond
EIA's Weekly Petroleum Status Report shows a much bigger-than-expected drawdown in oil inventories, ending several consecutive weeks of builds.
Authorities on Thursday lifted a second evacuation order in a week for thousands of people in a Texas city as U.S. safety officials began examining what caused the latest in a series of chemical plant fires in the state. The about 14,000 residents of Port Neches 95 miles (153 km) east of Houston were told to flee late on Wednesday when air monitors detected high levels of cancer causing petrochemicals butane and butadiene following an explosion last week. Butadiene is the main product of the TPC Group's facility in the city struck by last week's blast and fire, which injured three workers and prompted an initial, two-day evacuation.
ExxonMobil (XOM) has gone through an extensive study to gauge demand interests for the proposed LNG import facility in Australia, which yield lesser-than-expected commitments.
(Bloomberg Opinion) -- Now that Saudi Aramco is finally about to become a public company, it will have to start acting like one. And that means the share price of the state-owned oil giant will be of primary consideration to its executives and its shareholders. The kingdom’s monarchy, which will still control nearly all of Aramco’s shares after the IPO, will have particular interest in the stock price as it seeks to sell additional shares following the lock-up period. But because Aramco is a unique oil company, this could lead to unexpected OPEC oil policies.The widely held perception is that the Saudi monarchy will seek higher oil prices to bolster the share price for a publicly traded Aramco (the company’s formal name is Saudi Arabian Oil Co). The accepted forecast calls for Saudi Arabia’s Oil Ministry to act to limit OPEC production at this week’s meeting or those in the future, to achieve these higher oil prices — and indeed, there are reports that the kingdom is pushing for a three-month extension of current production cuts, through June 2020. However, the best way for Saudi Arabia to boost Aramco’s share price is actually to increase its own oil production, even if that leads to lower prices for crude. As such, the oil market needs to be prepared for the possibility that Saudi Arabia may employ this strategy prior to any future sales of Aramco shares.The Aramco IPO is only the beginning of Saudi Arabia’s attempt to monetize its national oil company. Various members of the Saudi government have suggested that more shares of Aramco will be sold in the future, either on the local Saudi stock exchange or possibly on an international bourse. Crown Prince Mohammed bin Salman will likely be eager to sell more shares, especially since he was forced to scale back his original plan of selling 5% of the company at a $2 trillion valuation. The government will be forced to wait at least six months before it engages in most types of sales, though it can sell shares to foreign governments before that. In advance of future share sales, Saudi Arabia will want to maximize Aramco’s revenue and profit, just like any public company that wants to increase the attractiveness of its stock. The common view is that share prices for oil companies go up when oil prices rise, and this is generally true for companies such as Exxon Mobil Corp. or Total SA. But even those companies would tend to keep pumping even when oil prices are middling, like they are now, because they need to show revenue strength. Oftentimes, it is expected that Aramco and OPEC partners will be the producers that try to raise or maintain the price of oil by actively decreasing production. However, for Aramco, the sale of more oil, even at relatively low prices, offers a better opportunity to increase revenue and profit to look good at earnings time.Aramco has the lowest lifting cost per barrel of oil (production costs after drilling), at $2.80, and an exceedingly low upstream capital expenditure per barrel of $4.70. As a result, Aramco makes much more money per barrel of crude it sells than any other oil company and can make much more money per barrel at lower prices — though of course it wouldn’t benefit from a slump. As for the opposite scenario of tightened production, Saudi Arabia’s oil policy has been fairly ineffective at raising oil prices in a market that features lagging demand growth and rising supply from non-OPEC producers like the U.S. Thus, it is questionable as to how much OPEC could raise the price of oil if Saudi Arabia wanted it to.Even if Saudi Arabia was able to push up oil prices, profit growth would diminish. Under the new marginal royalty scheme in Saudi Arabia, the company currently only pays 15% to the kingdom on crude production at current price levels. But if the price rises above $70, the royalty rate hits 45%, and above $100 it hits an enormous 80%. At some point, the rise in oil price helps the Saudi government coffers much more than the company, and potential investors know that. One of the reasons Aramco is unique among oil producers is that it can significantly increase its production. In fact, Aramco is currently required, under the Saudi Hydrocarbons Law, to be able to produce 12 million barrels per day with three months’ notice. That would be an increase of 2.2 million barrels per day from its October levels. Most likely, Aramco could produce in excess of 12 million barrels, if the government directed. In addition to increased production, Aramco also maintains significant amounts of stored oil, which it can release to the market to increase its own revenue.In contrast, other major producers can’t increase their crude oil sales in any significant way. They don’t maintain large amounts of spare capacity, because they are producing to optimize revenue all of the time; after all, they have shareholders to appease. Aramco has left its production far below capacity for good reasons. Traditionally, Aramco and the Saudi government haven’t immediately needed more cash and have prioritized the health and long-term viability of Saudi Arabia’s oil reserves. Moreover, until now, Saudi Arabia hasn’t had to consider Aramco’s share price.Now, with a focus on share price and optimizing the amount of cash the monarchy can make from future share sales, Aramco has reason to enhance its revenue and profits in the short term. The best way to do this is for the company to increase oil production. As the de facto leader of OPEC, we can expect these new incentives to factor into Saudi Arabia’s preferred oil policies from here on out.To contact the author of this story: Ellen R. Wald at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Ellen R. Wald is president of Transversal Consulting and a nonresident senior fellow at the Atlantic Council's Global Energy Center.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Although December is usually a good month for stocks, that historical precedent wasn't followed yesterday. And defiance of that trend got much, much worse today as all three major equity benchmarks were slammed on the renewal of trade tensions between the U.S. and China.Source: Provided by Finviz * The S&P 500 slid 0.66% * The Dow Jones Industrial Average plunged 1.01% * The Nasdaq Composite tumbled 0.55% * In late trading, trade-sensitive names Intel (NASDAQ:INTC) and Dow (NYSE:DOW) were fighting for the dubious distinction of worst-performing Dow stock today as both were flirting with losses of more than 2.5%Riskier assets were roiled today as President Trump dialed back expectations that Phase I of a trade deal with China will soon be signed, prompting speculation that tariffs scheduled to go into effect on Chinese imports on Dec. 15 will proceed."I like the idea of waiting until after the election for the China deal. But they want to make a deal now and we'll see whether not the deal is going to be right," said the president earlier today.InvestorPlace - Stock Market News, Stock Advice & Trading TipsChina wasn't the only major economy drawing Trump's ire today. The president is threatening $2.4 billion worth of trade levies on French imports, something the Eurozone's second-largest economy is already promising retaliatory action on.All that just a day after the White House pledged to implement tariffs on Argentine and Brazilian steel imports to protect domestic producers. * 7 Exciting Biotech Stocks to Buy Now All that got the Dow Jones Industrial Average to a situation where in late trading today, Merck (NYSE: MRK) was the only member of the index in the green and only modestly so. Exxon Excellence … Sort OfPredictably, oil equities were weak today on the back of the aforementioned trade jitters and Dow component Exxon Mobil (NYSE:XOM) was not immune from that scenario. However, on a day when good news was hard to come by, there was actually some of that for Exxon.Bank of America Merrill Lynch named Exxon as its top big oil pick for 2020, noting the largest U.S. oil company offers significant upside potential."BAML said the stock was its top U.S. oil major pick for 2020 and that counter cyclical investments and asset sales should vanquish market skepticism over whether it can outperform its peers," reports Barron's.The bank has a $100 price target on Exxon, which traded around $68 today. Affirming GuidanceUnderscoring the rough sledding for stocks today, shares of UnitedHealth (NYSE:UNH) lost more than 1%. As was the case with Exxon, there was some decent news flow out for UNH today even though the stock lost ground.The company said it expects net earnings per share for 2019 to hover around $15. The managed care provider previously forecast earnings of $14.90 to $15 per share.UNH, which hosted its investor day today, forecast earnings of $16.25 and $16.55 per share in 2020. Bad Action On Good NewsAdding to the theme of stocks slumping today even with some positive headlines, there's Nike (NYSE:NKE), one of the Dow's more trade-sensitive names. The athletic apparel giant was sporting a loss of more than 1% in late trading.Morgan Stanley's Kimberly Greenberger revealed a new price target of $118 on Nike today, implying upside of more than 25% from the stock's Tuesday close."We continue to believe NKE is in the early innings of transition from a traditional wholesale business to a digitally-driven, direct-to-consumer brand," said the analyst in a note to clients. Dow DownerAs noted earlier, chemicals maker Dow was one of the worst-performing names in the blue-chip index today due to its trade sensitivity. That's bad news because the stock declined yesterday as well after Morgan Stanley downgraded it to "equal weight" from "outperform." If Dow falls another 3%, it'll violate its 50-day moving average, potentially accelerating declines from there. * 10 of the Best Stocks to Buy Right Now From the JUST 100 List Bottom Line on the Dow Jones TodayHindsight is 20/20, but a day like today was probably brewing for some time given the inability of the U.S. and China to come to trade terms. Sure, there are plenty of musings about Phase I of a trade deal, but the longer it took to put that plan into action, the greater the risk that President Trump would lose patience. That's where we arrived at today.Over the near-term, the White House can help stocks get back on track by delaying the tariffs set to go into effect on Dec. 15. However, there are no guarantees that will happen.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Biotech Stocks to Buy Now * 10 of the Best Stocks to Buy Right Now From the JUST 100 List * 4 Marijuana Stocks to Own If the U.S. Legalizes Pot The post Dow Jones Today: A Terrible Tuesday appeared first on InvestorPlace.
Exxon Mobil’s stock could surge by 47% as production ramps up and growth accelerates, according to Bank of America Merrill Lynch.
The Energy Select Sector SPDR (NYSEArca: XLE), the largest equity-based energy ETF, is up less than three percent this year, underscoring the point that energy is one of the worst-performing groups in ...
(Bloomberg) -- Since 1980, the year Saudi Aramco was fully nationalized, the world’s largest oil producer has pumped about 116 billion barrels of crude oil from giant fields below the kingdom’s desert and the waters of the Persian Gulf.At today’s rate of consumption that crude would keep the world going for more than three years without using a single drop from any other oil-producing country. Put it through a refinery and you’d get enough gasoline to fill the tanks of more than 70 billion Chevy Suburban SUVs.And then there’s the carbon. All that oil has released more than 30 billion tons of carbon dioxide into the atmosphere in the last four decades, more than double China’s annual emissions. An analysis published in the Guardian newspaper last month reckoned Aramco’s oil was responsible for more emissions than any other single company.On one level that’s not surprising -- the modern global economy runs on petroleum and Aramco has been the prime supplier. But as Aramco makes the transition to becoming a publicly listed company, environmental concerns are one reason global investors have proved reluctant to embrace the world’s largest oil producer.Exxon Mobil Corp., Royal Dutch Shell Plc and other large oil and gas producers are already being pressed by a cohort of fund managers moving environmental, social and governance concerns up the agenda. Before Saudi Arabia decided to concentrate the IPO on local investors, one of the world’s largest sovereign wealth funds, Singapore’s Temasek, had decided to pass on Aramco because of environmental concerns.Big Oil is already under pressure “due to excessive carbon emissions, environmental footprint, social and community disruption, corruption exposure, health and safety and the now ubiquitous ‘stranded asset risk,”’ said Oswald Clint, an analyst at Sanford C. Bernstein Ltd. “Clearly then, the undisputed No.1 oil producer globally, Saudi Aramco, will come under a lot of scrutiny from investors as it embarks upon the public chapter of its life.”But Aramco is convinced it has a good story to tell on emissions. It goes like this: as the energy transition freezes and then shrinks demand for oil the complex, expensive, high-carbon supply sources like the Canadian oil sands will be increasingly abandoned. At the end of the story, only fields that are profitable in a world with strict emissions laws and depressed prices will remain, and from there this world will draw its last drop of oil.In Aramco’s 658-page IPO prospectus, the company explains why it possesses that last drop. There’s a table showing drilling a ton of Saudi oil takes half the energy of producing a barrel in the U.S. It shows that last year its lifting costs, expenses associated with bringing crude to market, were far lower than at each of the five oil majors -- Exxon, Shell, BP Plc, Chevron Corp. and Total SA -- even after those competitors worked vigorously for years to eliminate bloat.Aramco “is uniquely positioned as the lowest cost producer globally,” according to the prospectus. That’s “due to the unique nature of the kingdom’s geological formations, favorable onshore and shallow water offshore environments in which the company’s reservoirs are located.”An analysis from the influential consultant Carbon Tracker backed that up, saying the company was probably going to be “one of the last oil producers standing” in a carbon-constrained future.Mixed ObjectivesBut it isn’t likely to be that simple.While each individual barrel of Aramco oil was produced at a competitively low volume of CO2, much of the company’s value is derived from the sheer number of barrels at its disposal. The company has five times the amount of proved liquids reserves than the five largest oil majors combined, according to the Aramco prospectus.It has so much crude that even in a case where Saudi Aramco is the last oil company on earth, it still can’t produce all its barrels in a world that limits global warming to less than 2 degrees Celsius, according to an analysis from Rob Barnett at Bloomberg Intelligence.Under that scenario, a good chunk of Aramco’s reserves -- set to last more than 50 years -- may well end up as stranded assets.Governance is also likely to be a concern for potential investors. Just 1.5% of Aramco shares will be listed, leaving the Saudi state in a totally dominant position. Aramco will remain the main source of revenue for the kingdom, already running a larget fiscal deficit.“Governance issues will be a concern for investors,” analysts at Jefferies wrote in a research note. “The kingdom controls the board, is the resource owner and dictates production objectives.”Saudi Aramco has implemented some programs to cut its net carbon footprint, such as pledging to plant 1 million trees by 2025. It also is a founding member of the Oil and Gas Climate Initiative, which funds carbon-reduction technology and has made pledges to cut flaring. However, its oil major competitors have been listening to environmental complaints for decades also do that, and have gone further.An analysis from Bernstein showed the full-cycle emissions of Exxon, Shell and BP have trended downwards since about 2000. They are expected to keep falling as they implement measures suggested to them by eco-conscious shareholders, the report showed. Aramco’s full-cycle emissions have meanwhile increased sharply, reaching about double the volume of the three largest oil majors combined in 2015.Other oil companies are starting to take more radical action as pressure from governments, investors and customers to tackle the climate crisis builds. On Monday, Spain’s Repsol decided to promise zero net carbon emissions by 2050, while writing down the value of the business to reflect lower long-term oil prices Ben van Beurden, chief executive officer of Shell, said in an interview at the sidelines of the Oil & Money Conference in London in October that if he had any advice for Aramco at its IPO, it’s to learn to work with the oil industry’s climate critics. After all, they aren’t going anywhere.“When you get out in the market, you will get a lot of advice, a lot of conflicting advice, a lot of opinions and everything else,” van Beurden said. I think the IPO “is the opportunity for Aramco to plug into much more of the opinions of the world. To have their thinking shaped by that as well, rather than by events in the kingdom.”To contact the reporters on this story: Will Kennedy in London at firstname.lastname@example.org;Kelly Gilblom in London at email@example.comTo contact the editors responsible for this story: Will Kennedy at firstname.lastname@example.org, Rakteem KatakeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Exxon Mobil, AT&T, Apple, and Microsoft are among the companies that paid out the most in dividends in terms of total dollars paid. Their yield and growth rates, however, say different things.
(Bloomberg Opinion) -- In a week when oil stocks seem stuck in the familiar (if somewhat erratic) steps of a Viennese waltz, Apache Corp. is dancing to a different tune. And falling over.With OPEC+ meeting this week, Saudi-ology, along with Kremlinology, Iraqi-ology and all the other -ologies, dominate. Rumors the group would agree to deeper production cuts proved more soothing to oil markets than a slice of sachertorte on Monday morning. Except for Apache.The exploration and production company issued an update on an exploratory well it has been drilling off the coast of Suriname. Needless to say, it wasn’t a barnstormer. Apache essentially said the well had reached its target depth and the company was evaluating two distinct plays and planned on drilling a bit further to assess a third. No mention of hitting a significant deposit of hydrocarbons. On the other hand, no mention of it being a dry hole either. Ambiguity reigns — and, as monarchs go, ambiguity faces some decidedly restless subjects.This is the kind of thing for which people used to own oil stocks. The binary outcome of a well that could make or break an E&P company was what really got the punters going, not debates about whether OPEC could manage to get Brent toward $65 rather than $60 a barrel.Indeed, this is Apache’s problem. Block 58 in Suriname’s waters sits very close to Exxon Mobil Corp.’s wildly successful Stabroek discoveries offshore Guyana. A little geographic extrapolation has offered support to Apache’s stock in recent months; a stock which otherwise isn’t exactly brimming with reasons to own it. The company lost its head of exploration in October, sparking a big sell-off. Its latest big bet, the Alpine High play in Texas, ran into a one-two punch of consistently moribund natural gas prices and the collapse in natural gas liquids pricing over the past year. Beyond this, its portfolio of onshore U.S., Egyptian and North Sea assets is something of an acquired taste in investor circles. Just as its peer Hess Corp. has been given a new lease on life by its non-operated stake in Exxon’s Guyanese success, so Suriname has offered a potential catalyst for Apache.Clearly, Monday’s announcement doesn’t close the door on success there. With the stock hitting its lowest level in more than 17 years — when Brent was trading at $25 — those willing to bet Apache is simply being overly cautious in a sector that usually errs the other way could find the wildcatter bet ultimately pays off. However, even after this latest sell-off, there may yet be a long way further down. Apache’s characteristic discount to the sector had closed as a result of anticipation over Suriname. And while that’s widened out again to about 10% as of Monday morning, the average for the past decade has been 21%.Assuming all else equal, putting Apache on a 21% discount would mean a stock price of about $17 and, thereby, a dividend yield of about 6%. It would need that, though, given the lack of growth embedded in consensus forecasts. Apache is a relatively small yet diversified E&P stock with a history of bold moves and which is exposed to a binary exploration outcome in world where investors now tend to prize either focus or scale and dependable free cash flow rather than big bets. Dancing to a different tune, prized when the crowd is enthusiastic, can be a liability when the mood music has changed this much.To contact the author of this story: Liam Denning at email@example.comTo contact the editor responsible for this story: Mark Gongloff at firstname.lastname@example.orgThis 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.
DOW UPDATE The Dow Jones Industrial Average is falling Friday morning with shares of Dow Inc. and Caterpillar facing the biggest setback for the blue-chip average. Shares of Dow Inc. (DOW) and Caterpillar (CAT) are contributing to the blue-chip gauge's intraday decline, as the Dow (DJIA) was most recently trading 84 points (0.
The federal government's EIA report revealed that crude inventories rose by 1.6 million barrels, compared to the 600,000 barrels decrease that energy analysts had expected.
(Bloomberg) -- Japan’s largest petroleum exploration company, Inpex Corp., is looking at expanding its natural gas business in Australia, even as U.S. energy majors Exxon Mobil Corp. and ConocoPhillips scale back their operations in the country.Both Exxon and Conoco are selling non-core assets to boost shareholder returns and fund more attractive growth elsewhere around the world. Inpex sees it differently, looking to snap up assets to feed its $45 billion Ichthys liquefied natural gas project off northwest Australia, which is just one year into its expected 40-year lifespan.“There are so many opportunities here in Australia,” said Hitoshi Okawa, head of Inpex’s Australia business, after the company earlier this month announced its 100th shipment from the project. “We’re here for the long haul.”Exxon said in September that it was seeking a buyer for maturing gas fields off southeast Australia, while Conoco last month announced a $1.4 billion deal to sell its LNG business in northern Australia to local company Santos Ltd. With Ichthys now in normal production, Okawa is turning his attention to finding fresh reserves to keep the huge project running at full capacity of 8.9 million tons a year.The Cash Maple field, owned by Thailand’s PTT Exploration & Production Pcl, and the Crux prospect are two options among several Okawa is considering because of their proximity to the Ichthys Field, which is connected via an 890-kilometer (550-mile) pipeline to the LNG plant near Darwin.PTTEP said in September it was seeking a partner for Cash Maple, while Inpex already cooperates with Royal Dutch Shell Plc, Crux’s majority owner, through a minority stake in Prelude LNG, the world’s largest offshore facility.Australia is preparing for what it hopes will be a second wave of LNG investment after local firms and global majors spent more than $200 billion over the past decade building enough plants to make the country the world’s leader in export capacity. That effort was led by U.S. major Chevron Corp.’s $88 billion Wheatstone and Gorgon LNG projects, the latter of which Exxon owns 25% in.Another question for Okawa is whether to double down on the separate Darwin LNG processing facility, soon to be operated by Santos after Conoco opted to sell its share. Inpex already holds an 11.4% stake in Darwin and Santos Managing Director Kevin Gallagher has said he would like partner “alignment” in the Barossa gas field, which Santos has earmarked to supply the Darwin plant.“That’s Kevin’s aspiration, he’s a good friend of mine” Okawa said, “Of course we think about the importance of alignment but a commercial decision is required.”Okawa also said he saw potential for collaboration between Ichthys and Darwin LNG. For now, he is keeping his options open as his company seeks to deepen its ties to the country.“We want to be an employer of choice, a partner of choice and a company that is indispensable to Australia’s economic development,” Okawa said. “Without having the proper awareness in the community and within government, it’s very difficult for us to expand the business here in Australia.”To contact the reporter on this story: James Thornhill in Sydney at email@example.comTo contact the editors responsible for this story: Ramsey Al-Rikabi at firstname.lastname@example.org, Rob Verdonck, Dan MurtaughFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.