42.29 +0.04 (0.09%)
After hours: 5:36PM EDT
|Bid||42.24 x 2200|
|Ask||42.40 x 1400|
|Day's Range||41.47 - 42.50|
|52 Week Range||30.11 - 75.18|
|Beta (5Y Monthly)||1.34|
|PE Ratio (TTM)||25.16|
|Earnings Date||Oct 30, 2020 - Nov 03, 2020|
|Forward Dividend & Yield||3.48 (8.27%)|
|Ex-Dividend Date||Aug 12, 2020|
|1y Target Est||47.38|
On Monday, shares of Exxon Mobil (NYSE: XOM) saw unusual options activity. After the option activity alert, the stock price moved down to $42.01. * Sentiment: BEARISH * Option Type: TRADE * Trade Type: PUT * Expiration Date: 2020-09-18 * Strike Price: $40.00 * Volume: 409 * Open Interest: 120183 Ways Options Activity is 'Unusual'Extraordinarily large volume is one indication of unusual option activity. Volume refers to the total shares contracts traded in a day when discussing options activity. Contracts that have been traded, but not closed by a counter-party, are called open interest. A purchased contract cannot be considered closed until there exists both a buyer and seller for the option.A contract with an expiration date in the distant future is another tell of unusual activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. Time value is important in this context because it represents the difference between the strike price and the value of the underlying asset.Contracts that are "out of the money" are also indicative of unusual option activity. "Out of the money" contracts occur when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made with the expectation that the value of the underlying asset is going to change dramatically in the future, and buyers and sellers will benefit from a greater profit margin.Bullish and Bearish Sentiments * Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price * Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask priceAlthough the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish option activity.Using These Strategies to Trade Options Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.For more information to understand options alerts, visit https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alertsSee more from Benzinga * Morning Market Stats in 5 Minutes * How Does Exxon Mobil's Debt Look? * Earnings Scheduled For July 31, 2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Chevron is growing its presence in the Permian Basin while the oil recovery falters. So, is Chevron stock a good buy?
Exxon Mobil is considering more cuts while protecting its dividend as oil prices remain low. Is Exxon stock a good buy?
At the cusp of $2,000 an ounce, gold’s front-month contract on Comex looks set to sail past the barrier again in the trading week beginning Aug 3. Rick Rule, president of Sprott U.S., also tells Lin that he doesn’t think Oliver’s call is over the top, though he thinks a correction will be necessary before that.
(Bloomberg Opinion) -- Trading saved European Big Oil from the full impact of this year’s oil crisis. It’s not the first time that massive profits from in-house trading desks ameliorated poor operating results from the core business of finding and producing hydrocarbons — and it won’t be the last. But the companies may struggle to carry this safety net into the era of decarbonization.As my Bloomberg Opinion colleague Chris Hughes wrote this week, Royal Dutch Shell Plc proved it could make a profit even amid the carnage of the oil market in the April-June quarter. The slump in oil and gas production — down 7% year on year and 11% quarter on quarter — and collapse in prices was offset by aggressive cost and capital-expenditure reductions, plus a “very strong” trading result.The company’s American peers, Exxon Mobil Corp. and Chevron Corp., largely avoid pure trading, sticking instead to marketing their own production. That deprived them of the safety net enjoyed by Shell and Italy’s Eni SpA (and presumably also BP Plc, which reports earnings on Tuesday).It showed in their second-quarter results. On Friday Chevron reported its worst quarterly loss in at least three decades and warned that the global Covid-19 pandemic may continue to drag on earnings. With the recovery in oil demand running out of steam, that’s not a big surprise. Exxon followed hard on its heels with its biggest-ever loss, as the collapse in crude prices hit upstream earnings, while the slump in demand hit its refining and chemical businesses. Exxon was probably glad to not have a big trading operation, as it managed to lose money there too.As Bloomberg News’s Javier Blas explains here, Shell profited from the sharp drop in the price of crude for prompt delivery relative to that for future supplies, allowing it to lock in a profit by buying and storing oil, while selling forward in the derivatives market. With low borrowing costs and plentiful cheap storage capacity throughout its supply chain, the company enjoyed advantages over the independent trading companies.But the gap in prices has narrowed since the end of April. Now the profit that can be locked in, less than $2 a barrel, probably won’t even cover Shell’s storage and financing costs. Will the gap widen again? Almost certainly, at some point. Will it get as wide as it was at the end of March or late April? Maybe not, as that was the widest it’s been in the data going back to October 2007. The last big blow-out was during the great oil disruption in January 2009, which was triggered by the financial crisis.Of course, trading profits don’t just rely on extreme and rare events. They have made significant contributions to the incomes of European oil majors in what might be termed “more normal” times too. And that raises a longer-term question for these companies as they become less reliant on oil.Although oil trading is well established, with a vast array of derivative contracts that can be utilized to generate profits, trading in natural gas is much less mature and may never develop in the same way as oil markets. Despite the growing volume of gas transported around the world in super-chilled liquid form, most supplies are still delivered through pipelines that tie buyers and sellers into long-term relationships and multi-year contracts. Trading instruments in electricity and renewable energy sources are even less well developed.Over the past decade, the “oil” companies, whose profits were mostly derived from pumping crude out of the oil fields they discovered, transformed themselves into “oil and gas” companies. Now they are evolving once again to become “energy” companies. Shell’s latest report shows that almost half of its production was natural gas, compared with less than 40% in 2005.The swing is likely to become even more pronounced. Companies like Shell aren’t going to stop producing oil, but it will become less important as the world increasingly embraces less carbon-intensive forms of energy. As they become more focused on natural gas, electricity and, very likely, hydrogen, their ability to offset any weaknesses in their core activities through trading profits are likely to be severely curtailed.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Julian Lee is an oil strategist for Bloomberg. Previously he worked as a senior analyst at the Centre for Global Energy Studies.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.
Many oil majors have now pledged some form of carbon neutrality in the coming decades in an effort to transform their brands from fossil fuel companies to all-encompassing energy companies. There are many questions surrounding the feasibility of carbon neutrality for an industry that is inherently carbon-emitting -- but one technology has the potential to make oil and gas relevant for the long term. Each oil major is handling the energy transition from fossil fuels to renewables a little differently.
Strong earnings from U.S. technology firms drove Wall Street higher but shares in Europe slid on Friday on doubts about the economic recovery from the coronavirus pandemic, while the dollar rose but still posted its worst month in a decade. The dollar has been weakening amid expectations the U.S. Federal Reserve will be forced to maintain its ultra-loose monetary policy for years, a policy seen as debasing the currency. Apple Inc shares surged to a record closing high of $425, a gain of 10.5% on the day, after blowout quarterly results on Thursday and a four-for-one stock split announcement.
Chevron and Exxon both reported disappointing losses, while the S&P 500 energy sector tumbled nearly 1% on Friday. It was the worst-performing corner of the market as all three major U.S. indexes closed with gains.
The Nasdaq jumped more than 1% on Friday, powered by strong earnings from some of the largest U.S. companies, but the Dow and S&P finished with smaller gains as uncertainty about the government's next round of coronavirus aid kept economic worries on the radar. Apple Inc shares surged 10.5% to close at a record $425.04 in the wake of blowout quarterly results and a four-for-one stock split announcement. Google parent Alphabet Inc fell 3.3% though, the biggest drag on the S&P 500 and Nasdaq, as it posted the first quarterly sales dip in its 16 years as a public company.
Exxon and Chevron reported worse-than-expected losses and indicated headwinds from low oil prices will continue as the recovery stalls.
The Nasdaq jumped more than 1% on Friday, powered by strong earnings from some of the largest U.S. companies, but the Dow and S&P finished with smaller gains as uncertainty about the government's next round of coronavirus aid kept economic worries on the radar. Apple Inc shares surged to reach a high in the wake of blowout quarterly results and a four-for-one stock split announcement. Google parent Alphabet Inc fell though, one of the biggest drags on the S&P 500 and Nasdaq, as it posted the first quarterly sales dip in its 16 years as a public company.
Global stock markets fell on Friday as doubts about the economic recovery from the coronavirus pandemic overshadowed strong earnings from U.S. technology firms, while the dollar rose but was still set for its worst month in a decade. The dollar has been weakening amid expectations the U.S. Federal Reserve will be forced to maintain its ultra-loose monetary policy for years, a policy seen as debasing the currency.
The Nasdaq rose on Friday, lifted by strong earnings from some of the largest U.S. companies, but gains were curbed and the Dow and S&P lost ground as uncertainty about the government's next round of coronavirus aid exacerbated economic worries. Apple shares surged to reach a high of $413.33 and were last up 7.36% at $413.09 in the wake of blowout quarterly results and a four-for-one stock split announcement. Google parent Alphabet Inc, however, fell 4.79%, and was among the biggest drags on the S&P 500 and Nasdaq, as it posted the first quarterly sales dip in its 16 years as a public company.
(Bloomberg) -- Wall Street expected Exxon Mobil Corp. and Chevron Corp. earnings to be bad, but not this bad.America’s biggest energy companies delivered their worst set of quarterly results of the modern era, weighed down by the slump in oil prices and the global collapse in demand due to Covid-19.But even so, the extent of what was disclosed Friday was at certain points almost breathtaking. Chevron announced multibillion dollar writedowns on its assets for the second time in a year, said it will cut the equivalent of 5% of its worldwide output during the current quarter and backtracked on plans to massively ramp up production from its prized Permian Basin shale holdings.Exxon, not so long ago considered an almost unassailable profit-making machine, told investors its ambitious slate of expansion projects will be delayed and revealed it had failed to generate any operating cash flow in the second quarter.“I was looking at the press release and was like, ‘Is that a typo?’” Jennifer Rowland, an analyst at Edward D. Jones & Co. in St. Louis, said of the lack of cash flow. “It’s mind-boggling for a company the size of Exxon.”The woes of the U.S. supermajors are emblematic of the broader threats -- economic, political and structural -- to the petroleum industry in what’s turning into to the most serious crisis of its 161-year history. Having raked in record-breaking profits during the first decade of the century, both companies have been reduced to widespread job cuts, belt-tightening and heavy borrowing to cover dividends and other outlays.Chevron’s shares dropped as much as 5.5% while Exxon fell by as much as 2.3%, in marked contrast to Friday’s rally by Big Tech following a set of bumper earnings from the likes of Facebook Inc. and Apple Inc. Energy is the worst investment in the S&P 500 Index this year.Exxon’s $1.1 billion second-quarter loss was the deepest since its 1998 merger with Mobil Corp. The crude price crash during the quarter bled the company’s production division while Covid-19 lockdowns lowered demand for everything from jet fuel to plastic wrap, hobbling the company’s refining and chemical units.The company had already announced this year it was taking steps to reduce its U.S. workforce, and on Friday it said it’s developing plans to further curtail operating expenses, without providing details. Exxon’s 26-cents per-share loss was better than the 64-cent average loss from analysts in a Bloomberg survey.The worst-ever oil crash came at a vulnerable time for Exxon because it had just embarked on an aggressive, multibillion-dollar rebuilding program. After slashing $10 billion in capital spending and freezing dividends, Chief Executive Officer Darren Woods may be running out of levers to pull. On Friday, Woods told investors and analysts on a conference call that, based on current projections, the company won’t take on any additional debt.What Bloomberg Intelligence SaysLeverage has gone to levels not seen in recent downturns and management’s comments that it doesn’t plan to take on more leverage could indicate that a protracted recovery would force the company to cut spending further, or even its vaunted dividend.\-- Fernando Valle, BI analystChevron meanwhile recorded its weakest performance in at least three decades and warned that the global pandemic wreaking havoc upon energy markets may continue to drag on earnings.Without the massive trading operations that shielded European oil explorers such as Royal Dutch Shell Plc and Total SE from losses, Chevron was exposed to the full force of this year’s oil price rout. Notably, Exxon’s nascent trading foray “experienced unfavorable mark-to-market derivative impacts,” the company said.Chevron fully erased the value of its Venezuela operations from its books, amounting to $2.6 billion, after they were effectively frozen by U.S. sanctions, and wrote down another $1.8 billion in assets due to lower commodities prices.Even stripping out the impairments, Chevron’s adjusted loss was $3 billion, more than twice the average analyst estimate in a Bloomberg survey and the deepest since at least 1989.“While demand and commodity prices have shown signs of recovery, they are not back to pre-pandemic levels, and financial results may continue to be depressed into the third quarter 2020,” Chevron said in a statement.Venezuela and low prices aside, Chevron also had a one-off charge of $780 million related to its plan to cut 6,000 jobs, or about 13% of its workforce.Despite the red ink, Chevron CEO Mike Wirth saw an opportunity for expansion amid the rout: The $5 billion, all-stock takeover of Noble Energy Inc. announced less than two weeks ago. The deal comes at a minuscule premium and plugs holes in Chevron’s long-term portfolio, analysts noted.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Steep quarterly losses at energy giants Exxon Mobil and Chevron weighed on indexes but are offset by impressive earnings from Apple and Amazon.com.
Everybody knew that Q2 2020 was going to be bad for oil companies. It was ExxonMobil's second quarterly loss in a row, worse than analysts' consensus of a loss of $0.63 a share. In a press release, ExxonMobil blamed "global oversupply and COVID-related demand impacts" for the poor performance.
U.S. stocks fell on Friday as uncertainty over the government's next coronavirus aid exacerbated economic worries related to the pandemic, countering early euphoria from stunning quarterly results by Apple, Amazon.com and Facebook. Google-parent Alphabet Inc fell 5.1%, and was among the biggest drags on the S&P 500 and Nasdaq, as it posted the first quarterly sales dip in its 16 years as a public company.
Exxon Mobil Corp. and Chevron Corp. report worse-than-feared second-quarter results on Friday, with Exxon’s commitment to preserving its dividend raising a few eyebrows on Wall Street.
Like a shadow in the background that could suddenly leap to the front depending on how the light is cast, OPEC’s looming supply increase is threatening to shroud any bright fundamentals left in a pandemic-hit oil market that ended July trading up just $1 a barrel. The Saudi-led Organization of Petroleum Exporting Countries is due to restore 2 million barrels of oil a day to world markets under the terms of its deal on output restraint with non-members allies steered by Russia. New York-traded West Texas Intermediate, the benchmark for U.S. crude futures, settled Friday up 35 cents, or 0.9%, at $40.27 per barrel.
Dow components Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) step into the earnings confessional today, potentially bringing with them increased activity for leveraged energy sector exchange-traded funds.What HappenedIn other words, Friday could be one of the ideal days for traders to embrace the Direxion Daily Energy Bull 2X Shares (NYSE: ERX) and the Direxion Daily Energy Bear 2X Shares (NYSE: ERY).The bullish ERX looks to deliver double the daily returns of the Energy Select Sector Index while the bearish ERY seeks performances that are double the daily inverse returns of that benchmark.Why It's ImportantWith 2020 likely to go down as one of the worst and most volatile years on record for the energy sector, it's not surprising that Wall Street is expecting losses from both Exxon and Chevron. Analysts expect a June quarter loss of 62 cents a share out of Exxon and a loss of 93 cents from Chevron.Whatever the results are, it will be relevant to traders deploying ERX and ERY today because the Energy Select Sector Index devotes 46% of its combined weight to the two giants of the U.S. oil industry.View more earnings on ERXOne of the Exxon-specific issues that could put ERX and ERY in play today is the company's commentary on its dividend. Exxon, which yields north of 8%, doesn't generate enough cash flow to cover the payout, but it also appears loath to cut the dividend.The company "is preparing deep spending and job cuts, according to people familiar with the matter, as it fights to preserve a 8% shareholder dividend with a multi-billion-dollar quarterly loss looming," according to Reuters.Exxon's annual dividend expense is $15 billion, assuming no alterations are made.What's NextOne day doesn't make a trend, but if Thursday's action is any indication, traders are warming to the idea of ERY being the way to go today. The double-leveraged bearish energy ETF jumped 7.72% yesterday on nearly double the average daily volume while the bullish ERX slumped 7.59%."Aside from the typical interest in sources and uses of cash (and in particular, Chevron's ability to sustain its dividend), we will be interested to hear more on activity levels in the Permian Basin and Williston Basin, as these are the primary U.S. operating regions for Chevron's pending acquisition target Noble Energy," notes CFRA analyst Stewart Glickman.See more from Benzinga * The Doctor Is In With This New Telemedicine ETF * KraneShares Jumps Into ESG ETF Fray With New China Fund * A New ESG ETF Arrives And It's Cheap(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Yahoo Finance's Adam Shapiro and Julie Hyman break down the latest earnings reports from Caterpillar, Merck, Exxon, and Chevron.