|Bid||0.00 x 1800|
|Ask||0.00 x 2900|
|Day's Range||68.86 - 69.65|
|52 Week Range||64.65 - 87.36|
|Beta (3Y Monthly)||1.17|
|PE Ratio (TTM)||16.73|
|Earnings Date||Oct 31, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||3.48 (5.10%)|
|1y Target Est||82.25|
LONDON/DUBAI, Aug 20 (Reuters) - Saudi Aramco's biggest asset could also be a liability. In the three years since Saudi Crown Prince Mohammed Bin Salman first proposed a stock market listing, climate change and new green technologies are putting some investors, particularly in Europe and the United States, off the oil and gas sector. Aramco, for its part, argues oil and gas will remain at the heart of the energy mix for decades, saying renewables and nuclear cannot meet rising global demand, and that its crude production has lower greenhouse gas emissions than its rivals.
It’s the black gold of Permian Basin crude from West Texas that fuels the battle between Big Oil giants Chevron Corporation (NYSE: CVX) and Exxon Mobil Corporation (NYSE: XOM), but for Barclays it’s the green of cash that sets the two apart for investors. Barclays analyst Jeanine Wai initiated coverage of Chevron with an Overweight rating and a $145 price target.
West Texas’s Permian Basin is the key driver for shares of both Chevron Corp. and Exxon Mobil Corp., but Chevron has an edge over Exxon due to its “superior” cash position, analysts at Barclays say.
Energy stocks have made little progress in 2019, but Barclays argues that Chevron can stand out despite the sector’s difficulties.
Chevron rose after an analyst at Barclays initiated coverage of the oil and gas company with an overweight rating and a stock price target of $145.
(Bloomberg Opinion) -- There’s a Vegas-like quality to the Texas electricity market. Whereas other regions use factors like capacity payments to encourage new power plants, Texas relies on the spin of the wheel. If temperatures are hot enough, and the wind is calm enough, and enough power generators go offline unexpectedly, a scramble for power spurs prices from the usual range of $20 to $30 per megawatt-hour up to $9,000.And that’s what happened last week:Merchant generators in Texas play this slot machine, hoping for a handful of these windfalls. BloombergNEF estimates the state’s generators reaped $1.5 billion across just two days last week, equivalent to more than 10% of the money paid in the wholesale electricity market last year.The Electric Reliability Council of Texas, or Ercot, banks on such jackpots tempting developers to build more capacity. The mechanism works, more or less, but the inevitable lag between market signals and new construction can leave the power market dangerously close to shortages — and consequently the spikes. This is shown clearly in the reports Ercot publishes twice a year providing a forecast of the state’s “reserve margin,” or spare capacity. The target level is 13.75% of peak demand. Here are the forecasts for 2020 through 2023 taken from the May report over the past seven years:The latest forecasts suggest expectations are beginning to turn again. While the expected reserve margin for 2020 has shrunk further, it has expanded further out, moving back above the target level in 2021. That may prove optimistic.NRG Energy Inc., one of the biggest power generators and retailers in Texas, said on its recent earnings call that Ercot most likely overestimates new capacity and underestimates closings. As warnings go, this one is less a call to arms and more a pitch to buy; NRG’s plants should profit in a tighter, more volatile market. That said, it is safe to assume that much of the roughly 112 gigawatts of proposed projects — substantially bigger than the state’s total existing capacity — will not materialize. Less than a quarter of it had an agreement to hook plants into the grid signed at the end of July. Wind and solar projects dominate Texas’ pipeline and Greg Gordon, an analyst at Evercore ISI, typically discounts these by 35% and 75% respectively. He forecasts much tighter conditions in the medium term:In theory, this alternative view should spur new projects, especially solar farms. Hot, muggy days can mean air conditioners crank up just as the state’s formidable fleet of wind turbines slow for want of a breeze. Solar power, on the other hand, is tailor-made for those dog-day afternoons. But the state’s solar capacity of 1.9 gigawatts is low, and while there is a nominal 62 gigawatts in the works, most of it will never see the light of day. Tara Narayanan, a solar analyst for BloombergNEF, points to the impending roll-off of the investment tax credit for renewable projects as well as President Donald Trump’s tariffs on imported solar modules. Taken together, these mean the optimal window for building solar capacity approved before the end of 2019 is actually in 2022-2023, when developers can still utilize the highest tax credit while also purchasing equipment unburdened by the tariffs.(1) Ercot’s pipeline suggests perhaps 3.4 gigawatts of new solar capacity entering service by the end of next summer. Using that as a conservative estimate and plugging it into BloombergNEF’s U.S. “Power Mixer” tool, the result implies a cut to average peak summer prices in 2021 of almost $4 per megawatt-hour, knocking perhaps $270 million off fleet revenue. That’s unhelpful for merchant generators but hardly a game changer.Yet the game is changing at a broader level. Texas, like so many other power markets, is undergoing a transition. In addition to wind power, cheap shale gas pushes down on power prices while rising demand and the retirement of older thermal power plants offer support. Even if solar power has been slow to take hold, and reserve margins remain low, the Texas power market represents a gamble. After all, last week’s spike came after a months-long slump in power futures as expectations of a lucrative heat wave had declined. Similarly, while 2018’s summer was a hot one, there were no big price spikes that year. This is one reason, even with near-term reserve margins looking tight, investors have been reluctant to price that fully into generator stocks. It is also why, even with the prospect of markets remaining tight, there will be no wave of construction in big conventional plants. Solar’s quick lead times and the ability to scale up alongside demand is a structural advantage.The price volatility, and expectation of more, is spurring one important part of the market to take matters into its own hands: commercial and industrial customers. As even the likes of Exxon Mobil Corp. have discovered, a long-term renewable supply contract can deliver energy at stable prices, and the cost of such power continues to drop. Corporate power-purchase agreements signed in Texas this year are likely to surpass those for the entire U.S. just two years ago, according to BloombergNEF. Power producers in Texas should enjoy decent odds of more jackpots in the next few years, but the house is moving against them. (1) This assumes, of course, that neither the tax credit nor the tariffs are extended.To contact the author of this story: Liam Denning at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis 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.
Exxon Mobil (XOM) has witnessed a significant price decline in the past four weeks, and is seeing negative earnings estimate revisions as well.
At a time when many investors are assessing the international exposure of their equity holdings, it pays to evaluate that issue from the sector level. Last year, the S&P 500 got 43% of its sales from outside the U.S., down from 44% in 2017, but that percentage varies from sector to sector. “The latest volatility in the S&P 500 Index has been driven in part by the ongoing and often escalating trade tensions between the U.S. and China,” said CFRA Research Director of ETF & Mutual Fund Research Todd Rosenbluth in a recent note.
ExxonMobil Asia Pacific has signed a two-year time charter agreement with Singapore-based Sinanju Tankers Holdings Pte Ltd to lease Singapore's first liquefied natural gas (LNG) powered bunker tanker, Sinanju said in an statement on Friday. The 7,990 deadweight tonnage (dwt) new build will be the first LNG bunker tanker for Singapore and Sinanju and will deliver ExxonMobil's new Engineered Marine Fuels (EMF.5) to ocean-going vessels within Singapore port limits from the first quarter of next year.
Lower RIN costs, completion of the Alkylation project at the Krotz Springs refinery and higher crack spreads buoy Delek US Holdings' (DK) refining unit in second-quarter 2019.
Papua New Guinea has sent a team to Singapore to renegotiate its Papua LNG agreement with French oil major Total SA, the nation's petroleum minister said in a statement on Thursday, warning the talks could end "disastrously" for the gas project. The strong language from minister Kerenga Kua marked an about-turn from a statement 10 days earlier, when he announced the new government would stand by the gas deal agreed by the previous government with Total in April, with some minor changes.
Shares of Exxon Mobil (NYSE:XOM) have been struggling lately. XOM stock is now at the lowest levels since the market meltdown last December. Some of this weakness may be attributable to slightly lower oil prices and tariff turmoil. The selling, however, is starting to get a little overdone. Time to be a buyer of Exxon Mobil stock on any further dip.Source: Shutterstock Exxon Mobil reported earnings on Aug. 2. EPS of 73 cents handily beat consensus estimates of 66 cents. Revenues trounced analysts estimates, coming in at $69.09 billion versus $65.2 billion consensus. This marked the third time in the last four quarters that it has exceeded expectations, yet XOM stock is down in that same time frame. This combination of a lower stock price and higher earnings certainly makes Exxon stock a solid value play at current prices. Click to Enlarge Exxon Mobil just hit a 5% yield, by far the highest level in the past five years. It is also more than triple the yield on the 10-year Treasury. The payout ratio is only 80%, so the dividend is certainly safe for the foreseeable future. Income investors will likely start to gravitate towards higher yielding blue chips like XOM stock as interest rates continue to plummet.InvestorPlace - Stock Market News, Stock Advice & Trading TipsValuations are looking attractive as well at current levels for XOM stock. Traditional metrics such as price to earnings, price to book and price to free cash flow are all well below the five-year average. Price to sales is nearing 1 and is at the cheapest multiple in four years. * 15 Growth Stocks to Buy for the Long Haul The last time Exxon Mobil stock was this cheap on a fundamental basis marked a significant low in the XOM stock price. XOM Stock by the Numbers Click to Enlarge Technicals are also pointing to a potential rally for XOM. There is significant support for Exxon Mobil stock near the $70 area. The five-day RSI reached oversold levels that corresponded to lows in the past. MACD also reached extremes that typified a bottom for the stock.XOM stock is trading well below the 20-day moving average which has been a precursor to a pop in the past.More importantly, Exxon Mobil is trading at a big discount to oil prices. Normally, XOM stock is fairly well correlated to the price of oil -- as one would expect for the largest U.S. oil company. Recently, however, that correlation has broken down, with XOM being a big underperformer. I expect that correlation to converge and for Exxon Mobil stock to be a relative outperformer to oil in the coming months. Click to Enlarge Investors looking for a place to hide out during these tumultuous markets may want to consider XOM stock near current levels. The combination of historically cheap valuations and a rich 5% dividend yield should buffer the downside, while the improving technicals point to a move higher in Exxon Mobil stock price. The recent highs near $77 would be my initial upside price target. Selling a Jan $77.50 covered call would bring in an additional $1.00 worth of option premium and position to be a seller at $78.50.Option traders should consider buying the Jan $70 calls and selling the Jan $72.50 calls for a $1.15 net debit. Maximum risk is the premium paid of $115 with maximum gain of $135. Potential return is 117% if XOM stock closes above $72.50 at January expiration.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 * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post Exxon Mobil Stock Is Ready to Start Pumping Again appeared first on InvestorPlace.
DOW UPDATE The Dow Jones Industrial Average is in selloff mode Wednesday morning with shares of Exxon Mobil and JPMorgan Chase delivering the stiffest headwinds for the blue-chip average. The Dow (DJIA) was most recently trading 467 points lower (-1.
"We need every ‘ology’ out there" to solve the big challenge facing the energy industry, exec says.
Saudi Aramco, which could command a staggering valuation of $2 trillion when it makes stock market debut in 2020-2021, is the most profitable company in the world.