|Bid||81.00 x 1400|
|Ask||82.09 x 1200|
|Day's Range||81.08 - 81.70|
|52 Week Range||64.65 - 87.36|
|Beta (3Y Monthly)||1.07|
|PE Ratio (TTM)||16.69|
|Forward Dividend & Yield||3.28 (4.06%)|
|1y Target Est||N/A|
If you want to know why many analysts expect S&P 500 Q1 earnings to fall, look no further than the Energy sector. When global growth slows, as it did in Q4 and early Q1, the impact can often chip into demand for crude oil, the main Energy sector product. All of this can lower demand for oil, and it appeared to soften crude prices through the first couple months of the year.
Volumes from global oil and gas discoveries are likely to rise 30% year over year in 2019, which will mark the highest levels since the crude downturn.
Will BP Post Lower Q1 Earnings? What Wall Street Expects(Continued from Prior Part)Analysts’ ratings for BP BP (BP) is expected to post its first-quarter earnings results on April 30, 2019. In this article, we’ll review analysts’ ratings for BP
Exxon (XOM) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Exxon Mobil (NYSE:XOM) has a lot going for it. The company's integrated structure mitigates the effect on oil prices on earnings -- and on the XOM stock price. New management has an aggressive growth plan. Annual dividend increases continues to be solid with Exxon Mobil stock currently offering an attractive 4% yield.Overall, I like XOM stock -- at the right price. Indeed, I bought Exxon Mobil stock last year in the $70s. But I sold it in the $80s, because, again, price matters for the shares.With interest in the energy sector heating up of late, thanks to a big merger and higher oil prices, Exxon Mobil stock might seem even more attractive at the moment. But the same structure that mitigates risk also reduces reward. And so investors seeing more upside in energy stocks should remember that if the sector continues to rally, XOM is likely to underperform.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Energy Sector Gets HotThe U.S. energy industry -- which has struggled for a good chunk of the post-crisis bull market -- looks hot again. WTI crude oil prices have risen 39% already in 2019. Shale plays in Texas, in particular, are growing production at a rapid clip. And now Chevron (NYSE:CVX) is planning to acquire Anadarko Petroleum (NYSE:APC) in a deal valued at nearly $50 billion. * 10 Dow Jones Stocks Holding the Blue Chip Index Back As CNBC reported, there's a sentiment among analysts, at least, that the Chevron-Anadarko deal is just the first of many. Investors seem to agree, as major Permian stocks like Pioneer Natural Resources (NYSE:PXD) and Concho Resources (NYSE:CXO) jumped on the news of the acquisition. Those companies could be acquisition targets themselves with Exxon Mobil a potential buyer.All told, the optimism toward the industry seen so far this year makes some sense. Oil prices are helping, though natural gas prices have faded after a late 2018 spike. Production in the Permian, as well as the Bakken play in North Dakota, is likely to increase. With energy stocks largely left for dead the past few years, there's likely room for the rally to continue. Why Not Exxon Mobil Stock?If that rally does continue, XOM stock very well could rise. But it's highly unlikely that an integrated producer is the right bet for higher oil prices -- and greater shale production.The key reason is the same as it was two years ago: XOM actually isn't a great play on oil prices. The company's "downstream" businesses -- refining and petrochemicals -- benefit from lower crude prices. This has proven to be a good thing in recent years as oil plunged, as XOM stock for the most part held up well. (It certainly performed better than most other oil stocks, particularly during the 2014-2015 bust.)But those downstream businesses generally will see margins compress if oil continues to rally. And so upstream-only players -- producers like Anadarko and Concho -- should benefit more if oil adds to its YTD gains.There's also the M&A angle. Obviously, no company is going to acquire Exxon Mobil; it's the largest energy company in the world outside of Saudi Arabia. Rather, particularly given its relative lack of shale exposure, Exxon Mobil is going to be the acquirer if the shale boom continues, but it's the target, not the buyer, whose stock generally rises in those scenarios. Options Beyond XOM StockFor both those reasons, an investor betting on continued optimism toward shale should look away from XOM stock -- and to the smaller producers, one of which might be acquired by Exxon Mobil. That's why Concho and Pioneer rose on the news of the Anadarko acquisition. Chesapeake Energy (NYSE:CHK) continues to be a high-risk, and high-reward, play on that thesis. (Indeed, CHK has risen 46% so far this year.) Its debt load makes an acquisition unlikely for now; higher oil prices should make that debt more manageable and increase near-term cash flow that can reduce its leverage. * 8 Risky Stocks to Watch as Earnings Season Kicks Off Broadly speaking, there's no shortage of potential plays if shale is going to keep moving higher. Per CNBC, RBC analyst Scott Hanold called out Noble Energy (NYSE:NBL) as a likely takeout candidate. Apache Corporation (NYSE:APA) has shale exposure and enough heft to be attractive to a major like Exxon.Again, this is not to say that XOM is a poor stock or even a sell. Higher oil prices should provide some benefit to earnings and, potentially, to Exxon Mobil shares. The dividend yield is attractive, and the valuation remains reasonable.But if shale growth continues, the big rewards here are going to go to the smaller producers and the companies that get sold. It's at those stocks that investors should look if they think the moves in the energy sector are only beginning.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post Why Exxon Mobil Stock Isn't the Play in the Suddenly Hot Energy Sector appeared first on InvestorPlace.
ExxonMobil Argentina Offshore Investments B.V. and a Qatar Petroleum affiliate snagged three exploration blocks offshore Argentina.
The three blocks will add about 2.6 million net acres to Exxon's existing holdings in Argentina, the company said. The blocks are located in the Malvinas basin, about 200 miles (320 kms) offshore Tierra del Fuego. Exxon's existing Argentina holdings include 315,000 net acres spread over seven blocks in the onshore Neuquén Basin of the Vaca Muerta unconventional oilfield and a business support center in Buenos Aires.
The administration plans to announce Wednesday that the U.S. will begin enforcing a provision of a 1996 law known as the Helms-Burton Act that allows Cubans who fled Fidel Castro’s regime to sue companies that have used their former property on the island. Like his predecessors, President Donald Trump had previously waived the provision, Title III, because enforcing it could result in a flood of litigation against foreign companies.
Chesapeake Energy (NYSE:CHK) stock is a popular name, partly due to its low price tag. After its latest breakdown, though, CHK stock is changing hands for just over $3 per share. After trading below $2 in December and north of $5 last summer, CHK stock has had quite a volatile ride, to say the least.But should investors should have faith in Chesapeake Energy stock? That question is particularly relevant, considering Chevron (NYSE:CVX) surprisingly bought Anadarko Petroleum (NYSE:APC) for $33 billion, edging out Occidental Petroleum (NYSE:OXY) . Some investors are now searching for the next M&A candidate in the space, and many are likely wondering if it's worth holding CHK stock in the wake of the Anadarko deal. * 7 Dental Stocks to Buy That Will Make You Smile Is Chesapeake Energy Stock a Buyout Candidate?Given the Anadarko deal, some may be thinking that CHK is an M&A candidate. While CHK stock price may be low , and the market cap of Chesapeake Energy stock is below $5 billion, those numbers are low for a reason. While CHK stock currently has a market cap of $4.97 billion, it has an enterprise value of more than $15.6 billion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat doesn't mean a deal is out of the picture, but because of CHK's debt load, the number of companies that might be interested in buying it is limited. The company has more than $7 billion of long-term debt, and its current liabilities are almost double the value of its current assets.CHK has reported strong net income, totaling $949 million and $873 million, for the last two years. But its cash flows are not attractive, and Chesapeake has some rather obvious balance-sheet issues. That's not to say management isn't trying or that CHK can't improve. But CHK stock has been below $10 for almost four years, and it's been a sub-$5 stock for most of the last two, years. That wouldn't be the case if things were going well for CHK.Acquirers can do the math, too. Trading Chesapeake Energy Stock So is CHK stock breaking down at this point? The action isn't promising, but we're not wheeling out the coffin just yet. From its December lows, Chesapeake Energy stock has done a great job reclaiming its 20-day and 50-day moving averages and riding uptrend support (depicted by the purple line) higher. When Chesapeake Energy stock hit $3.50 earlier this month, the shares were up about 75% on the year.However, that level acted as resistance, which is no surprise given that it has been a relevant support level in the past. When a notable level of support breaks down, it generally turns into resistance and vice versa. The recent pullback from $3.50 was more than just a stall, though. CHK stock quickly tumbled through uptrend support and its 20-day moving average.As a result, those interested in CHK should watch the 50-day moving average and the $3 level. If these levels fail, CHK stock will be flailing around looking for support, and could fall to $2.50.If the 50-day and $3 level hold though, Chesapeake Energy stock could rally. The first test will be if it can reclaim its uptrend support and the 20-day moving average.Bulls' sights are clearly set on $3.50. It will be critical for CHK stock to get through that level, but the 200-day moving average is also key for CHK. That is where bulls need to be careful with their expectations. In addition to the $3.50 hurdle, CHK stock also has the 200-day overhead, as well as downtrend resistance (depicted by the blue line). Clearing all of those marks will be difficult for Chesapeake Energy stock, to say the least. The Bottom Line on CHK StockMany investors love the fact that CHK stock is a sub-$5 stock with almost $10 billion in sales and a positive bottom line.But it doesn't matter, nor does it matter that Chesapeake Energy stock trades at just over five times its earnings. CHK has balance-sheet issues, and investors who buy CHK stock need to realize this is a speculative holding.Investors who want a safer energy holding should consider Exxon Mobil (NYSE:XOM), BP plc (NYSE:BP), or Chevron, especially if the latter stock drops down near $108.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Is Chesapeake Energy Stock an Acquisition Target? appeared first on InvestorPlace.
Will BP Post Lower Q1 Earnings? What Wall Street ExpectsBP’s fourth-quarter resultsBP (BP) is expected to post its earnings results for the first quarter of 2019 on April 30, 2019. Before we proceed with BP’s first-quarter earnings estimates,
Anadarko Petroleum (APC) will be acquired by Chevron in deal worth $48 billion, and its shareholders will get a 39% premium on their holdings.
The megadeal between Chevron and Anadarko marks the end of an era in the Permian, and while the oil majors got in late, they are aiming for full domination
XLE, the largest equity-based energy exchange traded fund, is higher by 17.40% this year, but that showing lags those of non-equity oil ETFs. XLE and rival equity-based energy funds will be tested when first-quarter earnings start rolling in. “At the sector level, the Energy (+13.5%) and Health Care (+11.7%), sectors are expected to see the largest price increases, as these sectors had the largest upside differences between the bottom-up target price and the closing price on April 4,” according to FactSet.
A weekly look at what occurred in the oil markets of the U.S. and the world this past week. The monthly reports of the International Energy Agency and OPEC, both released this past week, reflect just how much the world's crude oil markets have tightened. The first is what OPEC refers to as the "difference" and what the IEA refers to as the "call." It's the amount of crude oil that is needed to be produced by OPEC to keep the market from drawing or building inventories.
It finally happened. After years of speculation, independent E&P firm Anadarko (NYSE:APC) finally caught a buyout bid. As expected, it was from one of the super-majors. Chevron (NYSE:CVX) took the plunge and offered to buyout APC in the sixth-largest oil and gas deal ever. Some analysts questioned what took so long and why now.Source: swong95765 via Flickr (Modified)But investors in Chevron stock should be smiling from ear to ear.For CVX, Anadarko offers the chance to boost several core drilling areas, instantly boost production as well as offer plenty of future synergies. A deal of APC was a long time coming and it was 100% worth the wait for Chevron.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Chevron Stock Scores Big With AnadarkoAnadarko belongs to sort of weird class of energy stock. It's an independent oil and gas firm, meaning it operates in the upstream sector of the marketplace and makes its money by physically drilling for oil. The problem for APC has long been that it's massive. It's seriously one of, if not the largest independent E&P firm out there. Most E&P are small or mid-cap companies. This end of the market-cap/size spectrum makes it easy to grow production/earnings. But when you're as large as APC, that proposition becomes a bit harder. * 10 Stocks That Are Screaming Buys Right Now As a result, Anadarko has struggled since 2014 when oil crashed. It was never really able to move the needle enough to make a real bang with its profits or earnings potential. But it certainly tried and built upon its already world-class asset base.And that is why Chevron is willing to fork over $33 billion -- a 39% premium -- for APC shares. For that purchase price, CVX is actually getting one heck of a deal and it allows it to score on several fronts. The biggest of which starts with the letter "P."The Permian Basin has become the hotbed of drilling activity in the U.S. and it's easy to understand why. The geology is very rich and bodes itself to horizontal drilling. High production values and low-costs have made it the spot for anybody looking to benefit from shale drilling. These days, shale is more about scale of operations to drive costs even lower. Both Anadarko and Chevron have been very active in the Permian and the deal will connect their acreage together. All in all, by buying APC, CVX will have over 1,400,000 net acres in the rich Permian.Chevron plans on exploiting that connection through new drilling technology and digital analysis to score even more oil production. The best part is, CVX anticipates saving about a $1 billion in costs per year by leveraging this greater scale in the Permian.In addition to those assets, CVX will score around 400,000 acres in the Niobrara/DJ Basin in Colorado. The Niobrara is quickly emerging as a top place for shale drillers to score cheap oil/naturals gas. APC is the leading producer in the region and Chevron will add instant production here. Chevron Scores Big Offshore TooThe next win for CVX in the buyout comes offshore. Anadarko has long been one of the Gulf of Mexico's superstars and features several deep-water fields and wells. Adding APC to its mix, Chevron will now have 16 deep-water hubs in the Gulf -- with many within a 30-mile radius of each other. This is significant as it allows CVX to capitalize on so-called tie-backs and link fields together via existing underwater hubs rather than building new offshore infrastructure.As if that wasn't good enough, CVX scores some major offshore points with its LNG ambitions. Already, Chevron has become a leader in liquefied natural gas. With APC, the energy major now has a huge source to fill those shipments. Back in 2010, APC discovered around 75 trillion cubic feet of natural gas in Mozambique's waters and is quickly gaining customers for this venture. Thanks to Chevron's expertise in this area, APC's Mozambique assets are almost plug and play for the integrated energy giant. * 7 Energy Stocks to Buy as Oil Booms Chevron Raises the BarFor Chevron, buying Anadarko is a no-brainer. The best part could the actual timing of the deal. Like many of the integrated giants, CVX has seen production dip over the last few years. That's a problem when oil prices are rising as they are now. With the APC buy, Chevron instantly moves the needle today and it has the potential to keep growing in the future. That's very important.The beauty is that APC hasn't been surging on rising oil prices as, again, it was suffering under its immense size. Shares of the firm are down about 30% from its peak. CVX actually bought at a huge discount to what APC might actually be worth.Clearly, it outs CVX in the driver's seat when it comes to the major energy stocks. It also sets up an interesting situation for rivals like Exxon (NYSE:XOM) and BP (NYSE:BP). Like CVX, XOM and BP have seen production stagnate in recent years. With the APC buy, Chevron quickly vaults into the leadership spot. They'll be forced to make deals on their own.In the end, Chevron has smartly bought its way into some great assets that it can use to strengthen production profits and cash flows further. That instantly makes Chevron stock one of the best large energy stocks out there and investors should be pleased.As 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 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Anadarko Deal Puts Chevron Stock on Steroids appeared first on InvestorPlace.
The Zacks Analyst Blog Highlights: ExxonMobil, ConocoPhillips, Phillips 66, Marathon and Royal Dutch