|Bid||0.00 x 1000|
|Ask||0.00 x 800|
|Day's Range||22.71 - 23.54|
|52 Week Range||20.98 - 47.03|
|Beta (3Y Monthly)||1.59|
|PE Ratio (TTM)||11.53|
|Forward Dividend & Yield||0.72 (3.20%)|
|1y Target Est||N/A|
The first batch of a sprawling field of Democratic presidential candidates took to the debate stage for the first time. Here are some highlights for investors.
(Bloomberg Opinion) -- Oil and gas producer stocks are deeply unpopular. Oilfield services stocks, on the other hand, are deeply, deeply unpopular:The oily water in which the services companies swim is the money that exploration and production firms spend – and it has dried up. Analysts at Morgan Stanley have just reduced their forecasts for upstream capital expenditure. In the title of the report, “Global Upstream Capex: Growth Still in the Cards,” that “Still” does most of the work.At around $65 a barrel, oil remains well below those triple-digit salad days of early 2014. Still, it’s about double where it was in early 2016, and yet there’s precious little sign of that in E&P capex budgets. Something structural has happened.E&P stocks are unpopular because a decade of high spending did wonders for oil and gas output, “energy dominance” and C-suite pay, but little for investors. So the latter have gone on strike, demanding evidence of a change of heart on the part of management teams, chiefly in the form of tighter spending and more generous payouts to shareholders. You can see the problem for oilfield services, which profited nicely from the E&P sector’s pre-2014 largesse.At the same time, E&P companies still like to grow, so the pressure to do more with less remains high (especially as activists have begun beating the drum on this). Last year’s surge in U.S. oil and gas production was the biggest achieved by any country ever, according to BP Plc, even as upstream capex there was still 22% below the level of 2014.E&P companies depend on their services providers to help achieve the productivity gains that have fueled the shale “miracle.” Yet the rewards for this – such as they are - have flowed overwhelmingly to the client, not the contractor. A decade ago, the oilfield services sector earned a return on capital employed that was more than 13 percentage points higher than the E&P sector, according to analysts at Evercore ISI. By 2018, the sectors had switched places, with services earning 7 percentage points less than their clients. That is some transfer of value.The oilfield services industry shares some pathologies with the E&P business. Contractors invested too heavily in the boom, creating excess capacity and bloated cost structures. When the crash hit, they prioritized market share, the standard response in expectation of an eventual rebound – and the rebound hasn’t taken off. General Electric Co.’s ill-timed foray into the business via Baker Hughes and Weatherford International Ltd.’s meandering shuffle into chapter 11 have provided unwelcome narratives for all this. Today, despite deals such as the recently announced merger between Keane Group Inc. and C&J Energy Services Inc., the sector remains fragmented, particularly in those areas such as pressure pumping that service the U.S. shale industry.Shale is a blessing and a curse. On one hand, it has accounted for all of the growth in global upstream capex since the trough in 2016 and is set to contribute 29% of the forecast growth from here through 2022. On the other, it is a fragmented corner of the business that is highly sensitive to oil prices and has flattened the cost curve across the global industry. Besides trade-war concerns, expectations of frackers taking advantage of any geopolitical spike in oil prices to boost production have helped to keep a lid on that spike, despite numerous provocations.The upshot is a very narrow band in oil prices between celebration and belt-tightening. Morgan Stanley estimates $50 oil in 2020, as opposed to $60, would cut expected cash flow from operations in the global upstream business by a fifth, translating to a 13% drop in capex – which would take it below 2016 levels.Faced with such sensitivities, investors aren’t willing to pay a premium. Bellwethers Halliburton Co. and Schlumberger Ltd. trade at Ebitda multiples similar to where they were in 2015, when spending was headed down, rather than being priced for growth. Spending should grind higher from here; even so, the sector faces a deep-rooted challenge. For E&P companies to win favor with investors again, they must adhere to a regimen that won’t help their contractors win any popularity contests.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.
Per Rystad Energy, big oilfield services players like Halliburton (HAL) have already begun raising prices for products and services. This is expected to boost their earnings going forward.
JP Morgan has just held its fourth annual Energy Conference in New York with ~140 energy companies participating. It hasn’t been an easy time for energy stocks recently, and the firm noted: “The conference boosted our confidence that the leading companies are taking the austerity mantle seriously.” Nonetheless, there are some gems to be found- if you know where to look.Luckily for investors, following the conference, the firm revealed its top energy stock picks to buy now. Here we take a closer look at three of the most intriguing stocks highlighted by the firm. Note that two of these stocks also boast a ‘Strong Buy’ consensus from the Street. That’s based on all the ratings received by these stocks over the last three months. TechnipFMC PLC (FTI)With operations spanning 48 countries, TechnipFMC is a global oil and gas company that provides complete project life cycle services. Essentially, FTI covers three distinct segments: subsea, offshore/ onshore and surface projects. After a disappointing 2018, shares have rallied so far this year- rewarding investors with a 27% gain year-to-date. According to JP Morgan “LNG [liquid natural gas] continues to look like the one proper cycle to which investors should have exposure, and though options in our coverage are limited, we came away from the conference with incremental confidence in our OW FTI call.” And as the firm added, it helps when a +$1bn award hits mid-event! On June 18 Anadarko Petroleum (APC) awarded Technip a number of subsea contracts for its Mozambique Golfinho/Atum development. This will be Mozambique’s first onshore LNG development, and FTI will now also open a new office in Mozambique to manage the operation. Indeed, the future appears bright for Technip stock. That's thanks to the company's unique integrated model. The company reduces costs for customers by optimizing subsea architecture and integrating execution (i.e. engineering, procurement, construction, and installation.)“E&P openness to new commercial models for offshore is accelerating, and FTI appears a primary beneficiary” says JP Morgan. “With BHGE highlighting its Subsea Connect and SLB doing the same for the Subsea Integrated Alliance, it’s clear to us the market is moving towards FTI’s integrated model.”Net-net, “TechnipFMC continues to stand out to us as the provider both growing the pie and taking a bigger slice” concludes the firm. Indeed, FTI boasts a ‘Strong Buy’ Street consensus, with 9 recent buy ratings vs just 1 hold rating. Meanwhile the $29 average analyst price target indicates upside potential of 19% from current levels. View FTI Price Target & Analyst Ratings Detail Halliburton (HAL)One of the world's largest oil field service companies, Halliburton sums up its operations as helping customers maximize value throughout the lifecycle of the reservoir. However, that strategy has not delivered much value for investors in recent years. Right now HAL is trading down 14% year-to-date, and that’s on the back of further losses in both 2017 and 2018.Not that this has deterred JP Morgan. The firm writes “Shares of HAL have come under fire (alongside the group) as buy side concerns grow regarding its ability to deliver on the Street’s 2H19 bar. After giving back -27% since 4/17, it appears to us much of the impact of a shortfall in 4Q19 C&P [completion and production] is already reflected in the stock.”And the firm reminds investors why Halliburton deserves a closer look: “We continue to view HAL as relatively unique among our large cap stocks for its potential to create a step-change in FCF generation in 2020 through modestly higher profitability and measured capital spending.” As a result, the firm reiterates its top pick status for HAL stock. That’s with a $34 price target (49% upside potential). In short, this is the largest and most liquid US completions-levered stock, and effectively the only remaining OFS (oilfield services) pure play large cap says JP Morgan. Clearly the rest of the Street agrees. We can see that HAL shows a ‘Strong Buy’ analyst consensus. In the last three months, the stock has received 6 buy ratings and just 1 hold rating. With shares down 50% in the last year, the average analyst price target now suggests upside potential of over 75%. View HAL Price Target & Analyst Ratings Detail MRC Global (MRC)Welcome to JP Morgan’s third top energy stock pick. If you haven’t heard of MRC Global before, this is a company that distributes pipe, valve and fitting (PVF), products to the energy and industrial markets. "The continued commitment to discipline on working capital management and buying back shares keep MRC standing out within our smid-caps" explained JP Morgan post-conference.Indeed, shares have performed strongly so far this year, recording an impressive 30% gain year-to-date. The company rallied following better-than-expected Q1 earnings. MRC revealed that it expects sales in Q2 to improve over Q1 by 6% to 9% and expects growth in the second half of the year as compared to the first half of the year.“As the leading distributor of PVF to the energy industry, we are well-positioned with our customers. We're typically the large players in each of our diversified end-market sectors. This diversification provides us with a certain level of stability, gives us more opportunities to grow and provide some resilience to the inherent market changes” says CEO Andrew Lane.However only two other analysts have recently published MRC ratings- and both these analysts rate the stock a ‘Hold.’ Stifel Nicolaus analyst Nathan Jones downgraded MRC a couple of months ago, citing valuation. Nonetheless his $20 price target still indicates 25% upside potential from the current share price. Find further investing inspiration with the Analysts' Top Stocks tool
As the fate of crude exploration and production companies is positively correlated with the commodity price, the recent oil rally therefore perks up the crude weighted-stocks.
Crude oil prices jumped as Iran shot down a U.S. drone. The S&P 500 closed at a new all-time high, and gold prices skyrocketed.
Energy stocks traded broadly higher Thursday, as increased tension in the Middle East fueled a surge in oil prices. The SPDR Energy Select Sector ETF jumped 1.8% in morning trading, with all 29 of its equity components trading higher, while the Dow Jones Industrial Average hiked up 215 points, or 0.8%. Among the more-active members, shares of Halliburton Co. rose 3.0%, Marathon Oil Corp. gained 3.2%, Schlumberger Ltd. tacked on 3.1%, Exxon Mobil Corp. advanced 1.7% and Chevron Corp. added 1.1%. Elsewhere, Chesapeake Energy Corp.'s stock powered up 4.4% on NYSE-leading volume of 6.3 million shares. August crude oil futures rallied 4.5%, after news that Iran's Revolutionary Guard said it shot down a U.S. drone. Also helping boost prices, data out Wednesday showed that U.S. crude supplies fell, and a firmer date for an Organization of the Petroleum Exporting Countries (OPEC) meeting was in place to review pledged production limits.
In the next quarter, the US crude oil production might rise—an important factor that might kill any upside in oil prices. For the week ending June 7, US crude oil's weekly production was near its record high of 12.3 MMbpd.
The consolidation drive in the oilfield service space is reflected in the recent decision of C&J Energy (CJ) & Keane Group (FRAC) to merge and create a diversified oilfield services firm.
Halliburton Co NYSE:HALView full report here! Summary * Perception of the company's creditworthiness is negative * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is low for HAL with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding HAL are favorable, with net inflows of $8.91 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS MarkitThere is no PMI sector data available for this security. Credit worthinessCredit default swap | NegativeThe current level displays a negative indicator. HAL credit default swap spreads are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Today we'll take a closer look at Halliburton Company (NYSE:HAL) from a dividend investor's perspective. Owning a...
The Zacks Analyst Blog Highlights: Berkshire Hathaway, salesforce, Danaher, Halliburton and American Airlines
Shares of oil and gas company Chesapeake Energy Corp. slumped 4.4% toward a six-month low in afternoon trading Friday, despite a bump in crude oil prices, as longer-term concerns over global oil demand helped set off a broad selloff in the energy sector. The SPDR Energy Select Sector ETF shed 0.8%, with 28 of 29 components losing ground, while the S&P 500 eased 0.3%. Among the ETF's more-active components, shares of Halliburton Co. lost 2.1%, Schlumberger Ltd. declined 3.0%, Exxon Mobil Corp. gave up 0.5%, Marathon Oil Corp. slid 2.3% and Occidental Petroleum Corp. fell 0.7%. Crude oil futures rose 0.8%, after settling up 2.2% on Thursday. Meanwhile, the International Energy Agency cut its 2019 oil demand forecast for a second-straight month, citing a slowing in the global economy.
Energy stocks rallied in unison Thursday to pace the S&P 500's sector gainers, with crude oil futures surging as U.S. Secretary of State Mike Pompeo said Iran was to blame for a number of recent incidents, including the attacks Thursday on two oil tankers in the Middle East. The SPDR Energy Select Sector ETF rallied 1.3% in afternoon trade, with all 29 equity components gaining ground. Among the more-active components, shares of Halliburton Co. hiked up 2.8%, Marathon Oil Corp. gained 1.8%, Schlumberger NV rose 3.7%, Exxon Mobil Corp. tacked on 0.8% and Kinder Morgan Inc. advanced 0.8%. Meanwhile, crude oil futures surged 2.8%, after settling Wednesday at a 5-month low. The energy ETF has lost 6.9% year to date, while the S&P 500 tacked on 2.8%.
U.S. stock futures are trading higher this morning, erasing Tuesday's slight losses.Ahead of the bell, futures on the Dow Jones Industrial Average are up 0.36% and S&P 500 futures are higher by 0.36%. Nasdaq-100 futures have added 0.47%.Calm settled on the options pits yesterday with calls leading the charge. Overall volume levels fell to its lowest level in weeks, particularly on the put side of the aisle. By day's end, some 15.5 million calls and 14 million puts changed hands.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDespite the sluggish trading session, the CBOE single-session equity put/call volume ratio rose sharply to 0.77 -- a two-week high. Meanwhile, the 10-day moving average moved higher to 0.66.Options traders zeroed in on energy stocks. Apache Corporation (NYSE:APA) and Halliburton (NYSE:HAL) both reversed lower, showing a continuation of their downtrends. Elsewhere, Micron (NASDAQ:MU) fell amid widespread profit-taking in the semiconductor industry.Let's take a closer look: Apache (APA)Apache shares made a rare appearance on top of the most-active options leaderboard Tuesday. The Houston-based petroleum company slid 2.39% on its second-highest volume day of the year. Just under 10.1 million, shares changed hands on the session.The drop pushed APA stock back below its 20-day moving average, reaffirming its overall downtrend. Bears shouldn't get too complacent, however. The stock has already erased yesterday's losses in premarket trading. It's currently trading up 2.50% on the heels of a 4% jump in oil prices. * 10 Stocks That Every 30-Year-Old Should Buy and Hold Forever On the options trading front, the groundswell in volume was equally balanced between calls and puts. Total activity exploded to 2,717% of the average daily volume, with 150,841 contracts traded.Implied volatility ticked slightly higher on the day to 46%, placing it at the 47th percentile of its one-year range. Premiums are pricing in daily moves of 81 cents or 2.9%. Halliburton (HAL)The pain in energy stocks wasn't isolated to Apache. Bears also raided Halliburton shares, driving the oil services giant close to a new 52-week low at $21.07. The 4.6% drubbing saw above-average volume with 18.4 million shares changing hands. Volume patterns have been extremely bearish for two months with distribution days littering the landscape.Relief is coming this morning with the stock up 2.50% premarket. Unfortunately, with HAL trending lower across all time frames, it's going to take more than a mild up-gap to right the ship.On the options trading front, traders aggressively chased put options. Total activity roared to 368% of the average daily volume, with 144,181 contracts traded. A whopping 93% of the trading came from put options alone.Implied volatility remains elevated at 45% or the 64th percentile of its one-year range. Premium sellers will be happy to note this is close to the highest level of the year, suggesting short premium strategies are paying handsomely. The expected daily move is 60 cents or 2.8%. Micron Technology (MU)Semiconductor stocks weighed on the Nasdaq yesterday with Micron Technology shares leading to the downside. MU stock dropped 5.4% on above-average volume. The news was light, so I'm chalking up the drop as a technical-driven move signaling a continuation of the downtrend that emerged in May.Until the stock can break back above short-term resistance at $36, bears hold the upper hand. The next earnings report looms on June 25.On the options trading front, the day's drubbing lit a fire under put demand. Activity climbed to 157% of the average daily volume, with 182,375 total contracts traded; 62% of the trading came from put options alone.Implied volatility popped to a new three-month high at 53%. That places it at the 52nd percentile of its one-year range. Traders are now pricing in daily moves of $1.11 or 3.4%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post Thursday's Vital Data: Apache, Halliburton and Micron appeared first on InvestorPlace.
The federal government's EIA report revealed that crude inventories rose by 2.2 million barrels for the week ending Jun 7 to a nearly 2-year high.
The oil services fund has spent the last six months testing 2001 support and may complete an historic double bottom reversal.