Seeking Alpha

Bad news for Chevron, good news for Exxon and refiners

  • Chevron's (CVX -1.9%) earnings guidance isn't impressing investors; it expects Q4 profit to be "comparable" with Q3 when it posted net income of $4.95B, but analyst consensus had estimated Q4 to come in at $5.69B.
  • Unlike last year, when CVX’s refining business was a drag on earnings while its upstream business was strong, now refining is providing the boost - good news for Exxon Mobil (XOM +0.1%) and refiners, Morgan Stanley says.
  • MS thinks most U.S. refiners will show a Q/Q improvement in capture rates, helping XOM more than CVX due to its significantly more absolute North American refining capacity; marketing margins also are improving sharply, a positive indicator for refiners with retail operations such as Marathon Petroleum (MPC), Tesoro (TSO), Phillips 66 (PSX), Western Refining (WNR) and Delek US (DK).
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Comments (5)
  • ystock15
    , contributor
    Comments (169) | Send Message
     
    HA! I got it right again between CVX and XOM. GO XOM GO! Now let's see who will be the winner T vs VZ. I bet on VZ
    10 Jan 2014, 05:13 PM Reply Like
  • maybenot
    , contributor
    Comments (4128) | Send Message
     
    "Bad news for Chevron, good news for Exxon and refiners"

     

    But good news for those looking to buy more CVX -- to get more undervalued shares & more dividends. :)

     

    Long CVX & XOM
    11 Jan 2014, 01:25 AM Reply Like
  • chopchop0
    , contributor
    Comments (3623) | Send Message
     
    exactly... i added in the mid one teens recently.... I'd love to see 105-110 if possible

     

    Long both as well as PSX and COP
    11 Jan 2014, 02:32 AM Reply Like
  • bale002
    , contributor
    Comments (207) | Send Message
     
    I start selling puts when it approaches $115 (around $117 spot). And anything below that would be a spot buy. Indeed $110-$100 would be sweet.
    11 Jan 2014, 05:36 AM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (5679) | Send Message
     
    Added to both (CVX) & (XOM) back in Oct ,
    http://seekingalpha.co...

     

    Further weakness in CVX is a buying opportunity ...
    12 Jan 2014, 01:59 PM Reply Like
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