|Bid||123.05 x 800|
|Ask||123.27 x 1200|
|Day's Range||122.70 - 124.90|
|52 Week Range||100.22 - 131.08|
|Beta (3Y Monthly)||0.91|
|PE Ratio (TTM)||15.90|
|Earnings Date||Apr 25, 2019 - Apr 29, 2019|
|Forward Dividend & Yield||4.76 (3.78%)|
|1y Target Est||137.54|
The positive sentiments helped push oil prices to their highest level in four months on Wednesday, with WTI moving past $60 per barrel during intraday trading.
Exxon is the second-cheapest stock in the average with a dividend yield of 4.25%. Chevron is in fourth place with a dividend yield of 3.85%. Gains in Chevron and Exxon have been helped by the bull market for Nymex crude oil futures.
Shares of Chevron (NYSE:CVX) continue to gush higher on the heels of a historic stock market rally to start the year. CVX stock is now up over 15%, and despite the rout in oil prices over the past year, Chevron is actually higher over that time frame. Valuations are starting to look stretched, however, on both an absolute and comparative basis. Technicals are looking rather extreme as well. What does it all mean? The red hot rally in Chevron is running on fumes at current levels.Chevron stock is beginning to look a little pricey on a comparative P/E basis. CVX just eclipsed a 16 multiple, presently sporting a P/E of 16.26, the highest level of the year. The last time Chevron carried such a comparatively rich multiple was early last October, right before shares plummetted from $125 to $110. Click to EnlargeCVX stock is also trading at a large premium to crude oil, as seen in the chart below. Normally, Chevron is highly correlated to the price of crude, which makes sense given that it is one of the world's largest oil companies. Lately, however, that correlation has broken down, with the gains in CVX far outpacing those of oil.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI look for that correlation to begin to revert, with Chevron stock being a relative underperformer to crude over the coming weeks. Given my outlook that crude is looking toppy at the $60 area, further gains for CVX may be difficult to come by. Important to note that the last time Chevron traded near current levels, crude was at $75, not $60. * 5 of the Best Stocks to Buy Under $10 CVX stock is also looking a little extreme from a technical perspective. Shares are approaching major resistance at the $128 level after a major rally. 9 day RSI just breached a 75 reading before weakening. Previous times Chevron was this overbought marked significant intermediate-term tops in the stock. Implied volatility (IV) is also near trough valuations, a usually reliable bearish indication of over complacency. Click to Enlarge Chevron looks extended on both a fundamental and technical basis and should be a viable short candidate on any rally. Earnings are in early May, as is the ex-dividend date. Traders looking to avoid these risks should close the position out prior to then to lessen the risk.Options traders may look to take advantage of comparatively cheap implied volatility and take a defined risk short position by going long the April $125 puts for under $2.00. The intrinsic breakeven point of $123 equates to just a 2.2% pullback in Chevron stock.Tim Biggam may hold some of the aforementioned securities in one or more of his newsletters. Anyone interested in finding out more about Tim and his strategies can go to https://marketfy.com/item/options-and-volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post The Rally In Chevron Stock Is Running Out of Gas appeared first on InvestorPlace.
Although some pipeline projects have been a relief to the bottleneck problem, more pipelines are needed to significantly eradicate the transportation capacity constraint.
Exxon Mobil (NYSE:XOM) may have put a positive spin on its expenditure plans at last week's investor day. But with oil prices weakening and its outlook unclear, Cowen analyst Jason Gabelman opted to downgrade XOM stock anyway.Source: Mike Mozart via Flickr (Modified)XOM says it will spend $30 billion on drilling and improvement projects in 2019. This is up $4 billion versus last year's capital expenditures.Moreover, management expects that figure to rise to between $33 billion and $35 billion in 2020. It will further remain in that range through 2025.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 15 Stocks Sitting on Huge Piles of Cash The planned spending increases contrast, at least partially, with the intentions of Exxon's rivals and those of the broader industry. Oil companies are becoming more cautious about their spending for understandable reasons. Since their mid-2018 highs of around $70, crude prices dropped to their current level of approximately $60.Gabelman concedes that Exxon's aggressive capital-expenditure budget may bear fruit for XOM, which operates in a highly cyclical, but slow-moving, industry. He's concerned, however, that investors may only have a short-term view of those costs.Eventually, they could put downward pressure on XOM stock that lasts for the foreseeable future. XOM Stock Is All About the PermianAlthough Exxon Mobil operates all over the world, one area represents the company's key money-maker: West Texas' Permian Basin. XOM has operated there for years, but management believes it underestimated the region's potential. Prior forecasts of 600,000 barrels of oil equivalent per day have been ramped up to more than one million boe per day by 2024, if the company's investments pan out as planned.That growth of the Permian should also boost Exxon Mobil's overall profitability, lifting XOM stock in the process. Excluding tax-reform benefits, the oil giant anticipates that its bottom line will increase by $4 billion this year. This possible figure contrasts favorably to last year's $1.1 billion increase.By 2025, Exxon Mobil believes its profits will be 140% higher than 2017's total earnings. The production of its Permian Basin properties, which is continually rising, should be the biggest driver of that growth.It's the increasing production from the Permian, in fact, that serves as the foundation of Exxon's optimism.This logic seemingly contradicts an environment that doesn't exactly seem great for XOM stock. However, Exxon Mobil's senior vice president Neil Chapman explained at a recent shareholder meeting that ownership of contiguous properties "enables you to develop resources on a very large and very efficient scale, and it allows you (to) apply the Exxon Mobil machine."CEO Darren Woods described the company's unusual current aggressiveness as "leaning in as our competitors are leaning back." Woods believes their Permian assets will generate double-digit returns, even if oil prices fall as low as $35 per barrel.Underscoring that idea is his decision to sell other assets, even as the company doubles down on the Permian Basin. The decision by XOM's rival, Chevron (NYSE:CVX), to also aggressively invest in the region provides further evidence of its potential.Not all observers are as keen on the strategy, though. Tough SellDarren Woods isn't necessarily wrong to be greedy when others are fearful. But the current and prospective owners of XOM stock may not be as enthused about the strategy.The company needs to "convince the market that higher spending today translates to higher returns to shareholders over time," explained RBC Europe Limited analyst Biraj Borkhataria following the unveiling of Exxon's long-range plans and outlook. But that's easier said than done.Cowen's Gabelman agrees, noting "XOM's counter-cyclical investment decision may look prescient in future years, but we do not believe the investor community is willing to place that same bet today and are downgrading the stock as a result."Cowen lowered its rating on XOM stock to a "market perform," Simultaneously, they droped its price target on Exxon Mobil stock from $100 to $75.Regardless, Exxon may have no choice but to invest a great deal of money. CFRA analyst Stewart Glickman, discussing the company's capital spending plans, said, "Exxon is so big it has to replace a lot of barrels every year. They're probably thinking with a longer-term focus than most."Glickman also pointed out another potential but unspoken concern among the owners of XOM stock: other drillers have been able to increase their production despite cutting their spending. Bottom Line on XOM StockThe scenario, for all intents and purposes, forces investors to decide whether XOM stock is a long-term holding, or too subject to short-term ebbs and flows to be anything more than a swing trade.For investors who can afford some patience, there's little doubt that the intended expenditures will bear fruit. Meanwhile, the XOM stock price is up more than 23% from its December lows. Additionally, it's trading five dollars higher than Gabelman's new target price. At these levels, XOM looks ripe for some profit-taking.Nobody wants to buy Exxon Mobil stock right now, but everyone will have a tough choice to make when shares drop. There's little middle ground here, as XOM probably won't be a trade and an investment at the same time.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post There's No Middle Ground for Exxon Mobil Stock appeared first on InvestorPlace.
Williams (WMB) creates a $3.8-billion partnership with Canada Pension Plan Investment Board in the western Marcellus and Utica basins.
Asian spot prices for liquefied natural gas (LNG) broke below the $5 per million British thermal unit (mmBtu) mark this week following a 13-week price slide that reflects the absence of growth in demand or any major outages. Spot prices for May delivery to Northeast Asia (LNG-AS) dropped 80 cents to $4.65 per million British thermal units (mmBtu) this week according to traders although there were few actual transactions with Asia's biggest buyers, Japan, Korea or China. Asian LNG spot prices are now at their lowest level since May 2016 and close to the lowest point in Refinitiv records going back to 2010 of $4.00 per mmBtu, which was reached in April 2016.
The intention for merger with SM Energy (SM) reflects Carrizo's (CRZO) focus to realize cost synergy amid intense competition in the prolific Permian basin.
Chevron Stock Rises, Commands Premium Valuations(Continued from Prior Part)Short interest in ChevronThe short interest or percentage of outstanding shares in Chevron (CVX) has fallen from 1.12% on January 2 to the current level of 0.83%. Usually, a
Will Suncor’s Shareholder Returns Continue to Rise?(Continued from Prior Part)Suncor’s valuations Suncor Energy (SU) is trading at a forward PE multiple of 17.3x, higher than the peer average of 13.1x. ExxonMobil (XOM), Chevron (CVX), and
The Dow Jones Industrial Average takes a fair amount of criticism from market pundits and financial experts. Some of that criticism is justified and often stems from just how the index its weighted. But you can't deny that the Dow Jones stocks are still some of the most important companies in the entire U.S. and overall world. With the thirty Dow Jones stocks being powerhouses in their respective fields, they feature enviable moats, large cash flows and big-time profits.And yes, stable and growing dividend payments.Overall, the Dow Jones stocks can be an income seeker's best friend. And just buying the index can lead to some good results. The index tracking SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) pays a decent 2.25% yield. That's not too shabby at all. However, investors who are serious about finding more income need to dig deeper into Dow Jones stocks and take a look at individual names.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks on the Rise Heading Into the Second Quarter But which ones? Here are five of the best Dow Jones dividend stocks to buy today. Top Dow Jones Dividend Stocks: Cisco Systems (CSCO)Source: Shutterstock Dividend Yield: 2.63%Dow Jones stock Cisco Systems (NASDAQ:CSCO) is proof that old dogs can learn new tricks and that tech's elder statesmen still have plenty of growth behind them.After being the go-to networking firm during the dotcom days, CSCO switched gears to offer more services and other products to go along with their networking equipment. It turns out this was a great idea. Services revenues for the firm continue to surge. Even better is that subscriptions for software and services jumped to be 65% of Cisco's non-equipment revenues. These reoccurring revenues provide the firm with a long runway to keep growth going. And with reoccurring and services profit margins well into the double digits, Cisco has indeed been growing.The firm managed to see double-digit non-GAAP per share growth in the last quarter.And as expected, CSCO has been sharing its growth with shareholders. Since its first dividend payout in 2011, Cisco has upped its dividend by over 480%. That includes the 6% jump at the beginning of this year. This dividend growth rate puts the networking firm in very elite company among Dow Jones stocks.Add in its hefty buyback programs and continued revenue/cash flow growth, CSCO belongs in every income investor's portfolio. Pfizer (PFE)Source: Kojach Via FlickrDividend Yield: 3.45%Like Cisco, pharmaceutical firm Pfizer (NYSE:PFE) has been able to find growth and additional sources of revenue in recent years. Like many pharmaceuticals, PFE was facing a major patent cliff as several of its blockbusters -- such as Lipitor and Viagra -- went off patent. However, PFE was able to fill those holes with several other major product launches as well as targeting biosimilars and generic drugs. New cancer and recently launched biotech drugs have set the firm back on the path to growth once more. And with a robust pipeline, PFE should continue to shine in the future.And those drugs will get a chance to shine pretty bright thanks to a spin-off/merger.Pfizer already spun-out its slow-moving animal health division as Zoetis (NYSE:ZTS). However, the firm announced that it plans on merging its consumer health division with GlaxoSmithKline's (NYSE:GSK). The deal will push some of the boring and slow-growing pieces of its pie outwards and let the higher-margined drugs shine. This should strengthen its cash flows and dividends further. * 5 of the Best Stocks to Buy Under $10 And speaking of those dividends, PFE recently upped its payout by 5.88% on the back of robust cash flows and increased earnings from its new drugs. That dividend represents the company's 322 consecutive payout and its ninth year of annual dividend increases. Top Dow Jones Dividend Stocks: Chevron (CVX)Source: swong95765 via Flickr (Modified)Dividend Yield: 3.58%Big oil is a great place to find big dividends. That includes top Dow Jones stocks like Chevron (NYSE:CVX). CVX has long been a great place to find higher yields and more recently that yield has gotten better.Like many energy stocks, Chevron dug in deep and cut costs, reduced its drilling and focused on profitable long-term production efforts during the last oil rout. With many of these projects now starting to produce some hefty natural gas and oil, CAPEX spending at the oil giant has decreased. Meanwhile, higher overall oil prices have helped boost cash flows at the firm. All of which has made its dividend that much stronger.After several years of token dividend increases, CVX has finally gotten back to meaningful raises and upped its payout by 6.25% at the start of the year. Today, CVX yields a high 3.58%. That's all thanks to rising cash flows and better margins.Even better is that the firm has recently announced that it plans on doubling down its exposure to low-cost shale in the Permian Basin. Over the next four years, CVX plans on doubling its output in the region to more than 900,000 barrels per day. Given how juicy margins are in the shale, this will only help the firm and its investors further.After a rocky patch, Chevron is back on track to being one of the top Dow Jones stocks. Top Dow Jones Dividend Stocks: JPMorgan Chase & Co (JPM)Source: Shutterstock Dividend Yield: 3%When it comes to banks in the Dow Jones, JPMorgan (NYSE:JPM) can't be beaten. As the nation's largest bank, JPM features a huge competitive advantage, large moat and an asset base that only a few competitors can even come close to. And that base continues to get better.Last quarter, JPM managed to see its loans and deposits grow by 2% and 3%, respectively. Meanwhile, credit card sales jumped by 10% year-over-year. This is wonderful news for the bank. Banks like JPM profit from something called net-interest margins. Basically, it's the difference between what they charge on loans and what they hand back on deposits. With rates rising and the economy growing, this has been a boon to JPM's cash flows over the last year or so.Meanwhile, the firm continues to benefit from rising trading, asset management, corporate and high net worth/private banking growth. All of which has helped grow the bank at superb rates. Fellow InvestorPlace contributor Tom Taulli recently highlighted J.P. Morgan's amazing ability to generate strong returns on tangible common equity -- besting many of its peers by a wide margin. * 7 Video Game Stocks on Steep Discount With the bank trading at 3% yield and a forward price-to-earnings ratio of just 10, JPM is one heck of a bargain. And with its ability to generate strong returns and cash flows, income seekers should be snagging up shares of this Dow Jones stock with both hands. Top Dow Jones Dividend Stocks: Procter & Gamble (PG)Source: Mike Mozart via Flickr (Modified)Dividend Yield: 2.8%When it comes to Dow Jones stocks, boring can be beautiful. Consumer products giant Procter & Gamble (NYSE:PG) is a testament to that. Selling Crest toothpaste, Tide laundry soap and Bounty paper towels isn't a very exciting business, but it is stable. And over the decades, that stability has made PG a dividend machine. The firm has managed to raise its dividend for 62 consecutive years and currently offers a hefty 2.8% dividend yield.The best part is that PG has continued to try and improve its business and add some significant innovation to its portfolio.That turnaround is paying benefits in a big way. The firm has managed to pick up some meaningful market share versus rivals, with organic growth growing by over 4%. This was driven by product innovation and is now the second quarter of 4% organic growth. Meanwhile, cost cutting exercises and a lower overall tax rate helped boost margins to 22%. Overall, Procter & Gamble managed to crush expectations when it came to earnings-per-share. With the big beat, it helped cement that PG's turnaround is working.Also underscoring that fact further was Procter & Gamble's massive $4 billion in operating free cash flows.For investors, PG stock isn't insanely exciting, but it can provide a steady stream of dividend growth for years to come. And that makes it one of the best Dow Jones stocks for income seekers.At the time of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post 5 of the Best Dow Jones Stocks to Buy for Solid Dividends appeared first on InvestorPlace.
Will Suncor’s Shareholder Returns Continue to Rise?Suncor’s shareholder returnsSuncor Energy’s (SU) shareholder returns have grown consistently over the past few years. The company hasn’t forgotten its commitment to growth. Let’s review
Chevron Stock Rises, Commands Premium Valuations(Continued from Prior Part)Institutional holdings in ChevronIn the previous part, we reviewed Chevron’s (CVX) dividend yield trend, which has fallen to 3.8% currently. Now, we’ll discuss the top
ExxonMobil's (XOM) expansion to include addition of three LNG trains with a capacity of 2.7 mtpa each on the existing PNG LNG plant site.
Chevron Stock Rises, Commands Premium Valuations(Continued from Prior Part)Chevron’s dividend per share In this part, we’ll discuss Chevron’s (CVX) dividend yield trend. First, we’ll review Chevron’s dividend payments in the first quarter.
Chevron Stock Rises, Commands Premium Valuations(Continued from Prior Part)Chevron Previously in this series, we reviewed Chevron’s (CVX) valuation, stock performance, and moving averages. We saw that the stock has risen 13% in the first quarter.
Just in time for summer driving season, oil prices are moving up again.Source: Shutterstock Brent North Sea crude, the global standard, is selling for over $67 per barrel. West Texas Intermediate (WTI), the primary U.S. grade, is over $59. At Christmas Brent was at $50, WTI at $42.What's driving prices higher is a curb in Saudi exports, the complete collapse of Venezuela, and lower short-term forecasts for U.S. shale production.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnalysts now say oil majors like Exxon Mobil (NYSE:XOM), which I wrote about last month, are now in position to become the new OPEC. They are taking control of Permian production from independents and driving the global price.Maybe they can become the new OPEC. But all OPECs have a sell-by date. * Top 7 Service Sector Stocks That Will Pay You to Own Them The Second Fracking Boom and Oil PricesI've written many times this decade about how the 2010s are a reversal of the 1970s, when OPEC took command of the market, backed by U.S. arms.This time it's U.S. technology, specifically fracking, pioneered by an oilman I interviewed back in 1980, the late George Mitchell, which is taking over. Fracking first produced a natural gas glut in the Appalachians. Now it's producing an oil glut in West Texas, where conventional wells that just sucked oil from the ground had been depleting for decades.You can find the story on the Energy Information Agency Web site. New wells are producing more fracked oil and gas every year, and there are more of them, while "legacy" production continues to fall. U.S. oil production has more than doubled in this decade and continued to rise even after prices busted in 2014.The price bust destroyed small producers like Sanchez Energy (NYSE:SN), which grew on debt when times were flush but now faces de-listing. Oil majors that husbanded capital during the boom, and through the early years of the bust, like Chevron (NYSE:CVX), picked up some bargains. Today's Permian producers can make money at $26 per barrel, half what the product is going for.The only limit seems to be pipeline infrastructure. Kinder Morgan (NYSE:KMI) is getting pipelines out as fast as it can but in the near term supply is constrained. Natural gas is being flared, or being burned off at the wellhead, at a rate not seen since the height of the boom. Alternative Energy and Oil PricesThe latest oil boom comes 40 years after the Iranian revolution and the second oil shock.But there's growing competition for oil and gas from renewable energy.Solar energy can now be produced at 13-17 cents per kilowatt hour, without federal subsidies. Wind power is even cheaper. Spot prices for electricity in Texas can now turn negative when the weather is right.Storage has been the limit for renewables, but breakthroughs in storage technology such as fuel cells are being announced every day.The cheapest renewable energy remains efficiency. Thanks to higher mileage cars, LED light bulbs, better appliances, and intelligence in devices using energy, U.S. electricity demand is only now breaking through its 2007 peak .The thumb holding prices down gets bigger every year. The Sun shines, the wind blows, and we live on a molten rock. There is no energy shortage. The Bottom Line on Oil PricesSince the start of 2019 shares in Exxon Mobil are up 18%, and those of Chevron are up 14%. Given the recent good news from the oil patch these shares can continue to rise through the summer.But the end of the boom is already in sight. Venezuela will come back online. The Saudis' ability to limit production is limited. Iran wants back into the market. U.S. reserves have doubled, thanks to fracking. New oil discoveries are being made around the world, even in areas where demand is rising, like India.More important is that renewables, especially efficiency, are going to keep working their magic. The only thing keeping oil and gas competitive today is 100 years of infrastructure. That can be replaced in the next 10.That's why the gains in these stocks are as small as they are. Oil is a commodity for which demand is slowly falling, for which supply is starting to look unlimited.That's not a good long-term outlook for prices.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Financial Stocks to Invest In Today * 7 Single-Digit P/E Stocks With Massive Upside * 5 Chip Stocks on the Rise Compare Brokers The post Oil Prices Are Running up for the Last Big Oil Boom appeared first on InvestorPlace.
In New Mexico's Chihuahuan Desert, Exxon Mobil Corp is building a massive shale oil project that its executives boast will allow it to ride out the industry's notorious boom-and-bust cycles. The sprawling site reflects the massive commitment to the Permian Basin by oil majors, who have spent an estimated $10 billion(£7.55 billion) buying acreage in the top U.S. shale field since the beginning of 2017, according to research firm Drillinginfo Inc. The rising investment also reflects a recognition that Exxon, Chevron, Royal Dutch Shell and BP Plc largely missed out on the first phase of the Permian shale bonanza while more nimble independent producers, who pioneered shale drilling technology, leased Permian acreage on the cheap.
Chevron Stock Rises, Commands Premium Valuations(Continued from Prior Part)Chevron’s moving averages In the previous part, we saw that Chevron (CVX) stock has risen 13% in the first quarter. Now, we’ll discuss the trend in Chevron’s moving
Chevron Stock Rises, Commands Premium ValuationsChevron’s valuations Chevron (CVX) trades at a forward PE ratio of 16.8x, which is above the peer average of 13.0x. ExxonMobil (XOM), PetroChina (PTR), and Suncor Energy (SU) also trade above the
Which Integrated Stocks Are Analysts’ Favorites?(Continued from Prior Part)ExxonMobil ranks lastExxonMobil (XOM), which received the fewest “buy” recommendations from analysts among the six integrated energy stocks we’re looking at in this
Higher Oil Prices Have Boosted BP Stock 10% in Q1(Continued from Prior Part)BP’s valuations Earlier, we discussed BP’s (BP) short interest trend. In this article, we’ll examine BP’s forward valuations compared to those of its peers.