Outside Bar (Bearish)
|Bid||42.42 x 800|
|Ask||42.47 x 900|
|Day's Range||41.64 - 42.63|
|52 Week Range||20.84 - 67.13|
|Beta (5Y Monthly)||1.71|
|PE Ratio (TTM)||13.00|
|Earnings Date||Jul 28, 2020 - Aug 03, 2020|
|Forward Dividend & Yield||1.68 (3.98%)|
|Ex-Dividend Date||May 08, 2020|
|1y Target Est||48.13|
ConocoPhillips (COP) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
The energy sector is comprised of companies focused on the exploration, production, and marketing of oil, gas, and renewable resources around the world. Popular energy sector stocks include upstream companies that are primarily engaged in the exploration of oil or gas reserves. Well-known companies in the sector are Hess Corp. (HES) and Diamondback Energy Inc. (FANG).
ConocoPhillips (NYSE: COP) today announced the completion of the sale of its subsidiaries that hold its Australia-West assets and operations to Santos. The total consideration for the sale is unchanged; however, in connection with the closing, ConocoPhillips and Santos agreed to restructure the payments such that $125 million of the originally announced $1.39 billion upfront cash payment would be allocated toward a payment due upon final investment decision of the proposed Barossa development project. This brings the total due to ConocoPhillips upon a final investment decision to $200 million.
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]
Halliburton (HAL) told investors it is cutting its dividend by 75%, while National Oilwell Varco (NOV) board suspended the quarterly payout indefinitely to retain cash in the business.
The consent from the Norwegian regulatory authority allows ConocoPhillips (COP) to plug and abandon six wells at the Ekofisk field.
After last month's collapse, oil prices have bounced back. Will BP (NYSE:BP) stock see an additional boost? The oil giant's shares have moved higher from their March sell-off lows. Rising from $15.51 per share to $23.62 per share, BP stock got a more than 50% gain in two months.Source: TK Kurikawa / Shutterstock.com Yet, other integrated names have performed even better during this timeframe. Take Chevron (NYSE:CVX), for instance. CVX shares are up about 80% from their 52-week lows. ConocoPhillips (NYSE:COP)? Their shares have doubled since their March lows.So, what's the issue here? More like two issues. With investors anticipating a dividend cut and the company shouldering a massive debt load, there are plenty of reasons for concern.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDespite these overhangs, today's prices may be a solid entry point for BP stock. Sure, risks remain. However, energy prices continue to bounce back. With the novel coronavirus soon in the rearview mirror, "return to normal" will finally happen. With these factors in mind, there's plenty of potential for shares to move higher. Why the Rebound Has Only Just Started For BP StockOil may no longer be trading at negative prices, but it's still substantially lower than where it was just a few months prior. At the start of 2020, crude oil was trading above $60 a barrel. Today? Around $34 a barrel. * 7 Excellent Penny Stocks Ready to Roar Besides beaten-down prices, things are moving in the right direction. The coronavirus took its toll. With much of the world's economic activity brought to a halt, it's no surprise demand for petroleum collapsed.Yet, with the pandemic slowly ending, expect energy prices to continue bouncing back. Granted, experts like the EIA (Energy Information Administration) don't see prices heading above $50 per barrel until the end of 2021.However, BP is taking active steps to improve its cash flow situation while oil lingers at lower-than-normal prices. By slashing costs, the company expects its breakeven oil price to fall from $56 a barrel in 2019 to just $35 a barrel in 2021.Granted, this implies continued profitability challenges this year. But with Wall Street taking a forward-looking approach, shares could continue to climb in tandem with oil prices, as investors anticipate a rebound in net income and cash flow.In short, shares look appealing as a bottom-fisher's buy. There are some risks to keep in mind before you put in a buy order. Is the Dividend Safe?A dividend cut seems to be the other shoe that's yet to drop. As InvestorPlace's Tom Taulli wrote May 18, the company's current cash flows can't cover the dividend. In short, shares now have a seemingly high yield of 10.7%, but that's only because investors expect a cut sometime soon.Is their validity to these fears? Peers like Royal Dutch Shell (NYSE:RDS.B, NYSE:RDS.A) have already slashed their dividends. And analysts like Morgan Stanley's Martijn Rats think BP is the next one to announce a cut. He sees the company reducing its dividend by half in order to avoid taking on additional debt.Speaking of debt, that's the other issue at hand with this company. Taulli touched on this in his write-up, stating that the company's outstanding debt continues to climb. Coupled with reduced cash flow, this could mean a serious liquidity situation.Or does it? Based on a market update from back in April, the company detailed their liquidity situation, and their game plan to ride out today's storms. As of March 31, BP had $32 billion in cash and available credit lines.To combat sharp declines in cash flow, the company announced a 25% cut to capital expenditures. They also plan billions in cost-cutting across their upstream (exploration) and downstream (refining/marketing) business units. Pending asset sales could also free up additional capital.The situation at BP is far from perfect, yet these aforementioned risks are likely accounted for in today's valuation. When the other shoes does drop, don't expect shares to fall much further from here. Risks Remain, But BP Could Move HigherThings turn on a dime in the oil patch. Whether it be Middle East conflict, trade wars, or pandemics, it's tough to "predict the unpredictable" with energy prices. With today's crisis slowly dissipating, it's fair to assume a bounce back in demand is just around the corner. In short, plenty of reason for oil prices to continue trending higher.Although the company has a lot on its plate regarding debt and an unsustainable dividend, investors have largely priced these risks into the current share price. If and when the dividend gets a haircut, don't expect shares to sell off further.In short, with the potential for shares to rally in tandem with rising oil prices, consider BP stock a buy.Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Despite Challenges, Consider BP Stock a Bottom-Fisher's Buy appeared first on InvestorPlace.
ConocoPhillips (NYSE: COP) today announced the retirement of Don E. Wallette, Jr. as executive vice president and chief financial officer after a successful 39-year career with the company. Wallette’s retirement is effective on Aug. 31, 2020.
In recent weeks, the coronavirus conversation has shifted. We’re starting to talk about the great reopening, the restart of the economy after months of enforced shutdowns. The practical effects will be played out in the various states, as some stay in lockdown while others move, in a range of ways, to restart the business of living.The results will inform the national debate, whether we’ll see the grim path of a prolonged recession, the rosy case of a V-shaped recovery, or something in between. But a full recovery is for the long-term; closer in, the risks are greater. Writing on the markets for Goldman Sachs, chief US equity strategist David Kostin says, "Basically, all of the good and optimistic outlook is basically priced into the market today. So where the market’s trading now, I would say the asymmetry of upside [is] perhaps 2%, the downside maybe 15%.”Referring to the risks, Kostin writes, “A single catalyst may not spark a pullback, but a number of concerns and risks exist that we believe… investors are downplaying.” Among the risks Kostin delineates for investors are a possible 15% unemployment rate, companies slashing dividends in the second half of the year, an uneven and dragged-out economic recovery, and the uncertainties of the November Presidential election.So, coming from this background, it’s significant that the stock analysts at Goldman Sacks are finding bullish calls. Using a more selective, risk-averse approach, fitting for their firm’s general stance, they’ve found a series of compelling Buys in today’s markets. We’ve used the TipRanks database to pull up the details on three of Goldman Sachs’ recent stock picks.Axalta Coating Systems (AXTA)Perhaps best known to casual observers as a major NASCAR sponsor, Axalta is a stalwart of the automotive coatings industry. More than just paint and finishes, high-tech industrial coatings seal and protect the surface of the vehicle. Axalta develops and produces coatings for industrial and refinishing applications, as well as for light and commercial vehicles. The company boasts a market share of $4.94 billion, and a line-up of 10 product brands in six distinct niches.Like many companies, Axalta saw hard times in the first quarter 2020, as EPS declined 8.8% to 31 cents. Looking forward, Wall Street expects to see further declines in Q2, to a net loss of 13 cents. The declines come as the coronavirus economy – with enforced shutdowns – has slowed or stopped both production and sales. AXTA shares have underperformed the broader markets in the current rally, and are still 30% below their late-February peak.While Axalta is in a doldrums now, 5-star analyst Robert Koort from Goldman Sachs is optimistic that the company can bounce back quickly. He cites experience in China, were Axalta’s refinish business is already improving as that country implements economic restarts in hard-hit regions.Koort writes, anticipating the US economic reopening, “…looking forward there is basis for optimism. The company is looking at three key variables: lifting of stay-at-home orders impacting the Reﬁnish business, the pace of Auto OEM production following ramp out of shut-downs, and broad consumer demand. Additionally, Axalta expects Reﬁnish customers to get out in front of the demand recovery following the lift of stay-at-home orders, which could drive a restocking-driven demand surge off of currently low inventory levels.”In line with his upbeat outlook here, Koort has upgraded AXTA stock from Neutral to Buy. His $25 price target implies a 12-month upside potential of 19%. (To watch Koort’s track record, click here)AXTA shares get a Strong Buy from the analyst consensus rating, based on not fewer than 12 Buy ratings outweighing 4 Holds. Shares are priced low at $19.20, while the $22.38 average price target suggests a modest 6.5% premium in the coming year. (See Axalta stock analysis on TipRanks)ConocoPhillips (COP)The first stock on our list of Goldman Sacks recommendations is ConocoPhillips, a giant of the energy industry’s upstream (exploration and production) sector. COP, the world’s largest upstream hydrocarbon company, boasting a $47 billion market cap, finished last year with $7.2 billion in net income, or $6.40 per share.The company beat earnings estimates in a difficult Q1 environment, despite a year-over-year decline. EPS came in at 45 cents, more than double the 21-cent forecast. Revenues were down heavily, at $4.8 billion, and missed the estimates by 26%. In revenues and share price performance, COP has underperformed the markets this year.In a point of great interest to income-minded investors, ConocoPhillips raised its dividend in Q4 and has maintained the new, higher payment. At 42 cents per share quarterly, the dividend annualizes to $1.68 and offers a yield of 4.11%, more than double the average dividend yield found among S&P-listed companies. The payout ratio, at 93%, is high, but indicates that COP’s dividend remains affordable even after the drop in earnings.Goldman Sachs analyst Neil Mehta believes that COP’s current low share price represents a buying opportunity. Mehta writes, “…we believe we are seeing micro/macro fundamentals bottoming and expect ConocoPhillips to be a strong participant in the upcoming oil price upcycle, given the level of underperformance relative to large cap US majors to date, as well as the company’s strong leverage to Brent.”"As investors filter through the Energy sector looking for quality companies on sale, we believe that ConocoPhillips is one that will be able to emerge from the downcycle with its financial position still showing resilience," Mehta added.Mehta’s $51 price target supports his Buy rating, and implies a 17% upside to the stock. (To watch Mehta’s track record, click here)In general, the rest of the Street is on the same page. 15 Buy ratings compared to 2 Holds assigned in the last three months give it a ‘Strong Buy’ analyst consensus. However, at the $46 average price target, shares could surge just 6% over the next twelve months. (See ConocoPhillips stock analysis on TipRanks)Canadian Natural (CNQ)Staying with the energy industry, we now take a look at Canadian Natural. This company is the largest landholder in the Western Canadian Sedimentary Basin, major oil- and gas-bearing formation. CNQ is the largest heavy crude oil producer in Canada, and a major player in the natural gas industry. The company has also diversified outside of Canada, and controls several offshore operations in the North Sea and off the West African coast.CNQ reported a 2% increase in total production last year, showing 1.098 billion barrels of oil equivalent for 2019. The company also reported a free cash flow of $4.6 billion, giving a firm foundation going into 2020. That was a fortunate, as Q1 of this year saw a sharp drop in earnings, as CNQ posted its first net loss in 5 quarters. EPS came in at minus 33 cents, a far cry from the expected 4-cent profit.Even though CNQ showed a net loss in Q1, the company maintained its dividend payment. Canadian Natural has a long history of keeping those payments reliable, and also of paying out a high yield. At 7.2%, the stock’s dividend yield is more than double the 3.04% sector average, and more than triple the S&P 500 average. And, it absolutely clobbers US Treasury bonds, which are yielding below 1%.Goldman’s Neil Mehta notes four reasons to Buy this stock, but citing two will suffice to show his bullish stance: “First, as detailed here and here, we have shifted our more negative oil view and defensive Energy equities stance to a more positive/offensive one over the last three weeks. CNQ has strong leverage to an oil and natural gas price recovery that we anticipate. Second, we see sufﬁcient liquidity to make it through the 2020 downcycle and see the company well positioned in 2021-2022 to delever (sic).” To this end, Mehta upgrades the stock to Buy, and his $21 price target indicates his confidence in a 12% upside potential from current levels. With 14 recent review, breaking down to 11 Buys, 2 Holds, and 1 Sell, CNQ shares have a Moderate Buy rating from the analyst consensus. The stock sells for $18.74, and the $20.49 average price target implies an upside of 9%(See Canadian Natural stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
The U.S. Supreme Court on Monday declined to hear Venezuela's appeal of a lower court ruling allowing Canadian gold mining company Crystallex to seize shares in U.S. refiner Citgo to collect on an unpaid arbitration award. Crystallex is going after Citgo, a subsidiary of Venezuelan state oil company Petroleos de Venezuela, to collect on a $1.4 billion judgment for expropriation of its assets under late socialist leader Hugo Chavez.
Even if it's not a huge purchase, we think it was good to see that David Seaton, a ConocoPhillips (NYSE:COP) insider...
Those holding ConocoPhillips (NYSE:COP) shares must be pleased that the share price has rebounded 32% in the last...
Italian energy group Eni is working with investment bank Citi to sell natural gas assets in Australia that could fetch up to $1 billion, sources said. The sale, which is expected to be launched next week in a two-round process, could see Eni all but exit from Australia. Eni declined to comment, while Citi was not immediately available for comment.
Oil prices will likely remain depressed from the shockwaves of lower demand, namely from transportation and industrial use cases. Although the headwinds facing the oil industry are far from over, here are three oil stocks to buy right now for investors that have the patience to give the industry time to recover. Oil continues to provide over 90% of the energy used in transportation around the world.
When it comes to energy stocks, "safety" is in the eye of the beholder.The world faces a massive supply glut as the coronavirus pandemic has simply removed much of the world's demand for oil. Energy has become so depressed that, a few weeks ago, the unthinkable happened: crude futures went negative. This means producers were paying contract holders to take crude off their hands.The energy market has normalized since then, and oil has moved higher, but we're still looking at low average prices not seen since the Clinton administration. Prices are still well below breakeven costs for most energy stocks, even some of oil's elder statesmen. Dividends have been cut or suspended. Some - including Whiting Petroleum (WLL) and Diamond Offshore (DOFSQ) - have filed for bankruptcy, and other oil and gas stocks could face the same fate.Thus, few energy investments feel "safe" right now. But as is the case after every oil crash, some energy stocks will survive. And of that group, some represent considerable bargains. They might not look pretty at the moment; a few have had to cut back on capital projects, even buybacks and dividends. But these moves have made them likelier to survive this downturn and come back swinging on an upturn in oil prices.Here are seven of the best energy stocks to speculate on as oil tries to claw its way back. It could be a bumpy ride - every one of them could experience more volatility if oil prices swing wildly again. But thanks to smart fiscal management so far in this crisis, they might pan out well for adventurous investors. SEE ALSO: 50 Top Stock Picks That Billionaires Love
Oil stocks, on the other hand, continue to lag. The Energy Select Sector SPDR ETF (NYSEMKT: XLE), representing the oil and gas stocks in the S&P 500, is down more than 36%. For many investors, this points sharply at Big Oil -- the biggest companies in the oil patch -- as being great investments as one of the few sectors that is still well below 2020 highs.
Put simply, investors who want to bet on an oil market rebound should look elsewhere. Three better oil stock options are ConocoPhillips (NYSE: COP), EOG Resources (NYSE: EOG), and Pioneer Natural Resources (NYSE: PXD).
More than 80% of state-owned Pemex's multibillion-dollar loss in the first quarter stemmed from its accounting of a beat-up peso, rather than evaporating cash, but real losses are set to mount unless it modifies pre-coronavirus output plans. This is because average Mexican oil prices will almost certainly be much lower in the second quarter than in the first, dipping in April to just above $12 per barrel, or less than half their first-quarter average of about $26. Last week, Pemex posted nearly $20 billion in currency exchange losses during the first three months of this year.
The Zacks Analyst Blog Highlights: ExxonMobil, Chevron, Royal Dutch Shell, Equinor and ConocoPhillips