Occidental Petroleum: An Unloved Integrated Oil And Gas Value Investment Opportunity
Caiman Valores • 32 Comments
Caiman Valores • 32 Comments
Fri, Jul. 15, 10:02 AM
- Thomas Lee from Fundstrat Market & Equity Research ("our research process combines both top-down strategy and bottoms-up fundamental views, to develop a roadmap of practical and useful investment insights for our clients") identifies 15 stocks that meet his criteria for his current “highest conviction” strategies, which he calls “laggards become leaders” and “stocks are the new bonds.”
- The following stocks are in 1 of 16 groups that have lagged in the bull market (laggards), and have dividend yield greater than the their long-term bond yield (stocks are the new bonds): APD, CAT, CSCO, CVX, HP, IBM, OXY, PCAR, PG, PX, RL, SLB, T, VZ, XOM.
Thu, Jul. 14, 2:38 PM
Tue, Jun. 21, 2:28 PM
- Maxus Energy, a U.S. unit of Argentina's YPF, has filed for Chapter 11 bankruptcy protection after reaching a deal on the terms of a settlement tied to liabilities for the cleanup of New Jersey’s Passaic River.
- The deal calls for YPF to provide Maxus, which filed for Chapter 11 along with four other affiliates including its Tierra Solutions unit, with $130M, and in return Maxus will drop any “alter ego” claims it may have against its parent for cleaning up the river.
- A New Jersey state court ruled five years ago that Maxus and Tierra were responsible for dumping of the highly toxic chemical dioxin into the river in the 1950s and 1960s.
- However, Occidental Petroleum's (NYSE:OXY) chemical subsidiary is balking at the proposed environmental settlement; Maxus filed for bankruptcy Friday evening, days before OxyChem was scheduled to head to court over litigation seeking to put YPF on the hook for Maxus' environmental obligations; OxyChem purchased part of Maxus in 1986.
Mon, Jun. 13, 2:45 PM
- Plenty of upside remains in E&P names even after sharp YTD gains, Morgan Stanley analysts say amid confidence that the oil market recovery is occurring and oil prices will need to hit $80/bbl or so to deliver the production growth the world will need.
- Given recent production outages, the firm sees a risk of an H2 pullback yet also a long-term recovery that is "the bigger and a higher conviction event in a low conviction world and we add risk, yet not go 'all-in' here."
- Stanley upgrades Concho Resources (CXO +0.1%) and Cenovus Energy (CVE +0.9%) to Overweight from Equal Weight, and says it also remains positive on Pioneer Natural Resources (PXD +0.6%), Devon Energy (DVN +2.4%), Continental Resources (CLR +1.7%) and Cimarex Energy (C -0.8%); the firm cuts Occidental Petroleum (OXY -0.3%) to Equal Weight from Overweight on relative value.
Fri, Jun. 10, 7:05 PM
- Western Colorado has 40x more natural gas than previously thought, potentially making it the second-largest formation in the U.S., according to a new estimate from the U.S. Geological Survey.
- The Mancos Shale formation in Colorado’s Piceance Basin holds ~66.3T cf of gas, up from just 1.6T estimated in 2003, the USGS says, and the revision puts the basin second only to the Marcellus Shale in terms of the largest total gas reserves in the U.S.
- Current prices of ~$2/MMBtu are considered too low for companies to begin drilling to any large extent; companies likely would begin drilling if prices reached $3.50/MMBtu, says David Ludlam of the West Slope Colorado Oil and Gas Association.
- Among Colorado's top current oil and gas producers: APC, NBL, ECA, XOM, CVX, OXY, WLL, BBG, SYRG, PDCE, BCEI, CRZO
Thu, May 26, 11:35 AM
- Occidental Petroleum (OXY +0.4%) and Abu Dhabi's Mubadala Development are pulling out of a partnership to produce crude and natural gas at the Bahrain field, one of the Middle East’s oldest oil fields, Bloomberg reports.
- Bahrain state oil companies are expected to take over the Tatweer Petroleum venture at end June, according to the report.
- Bahrain has been seeking to expand production capacity at the wholly-owned field to 100K bbl/day by the end of the decade, but the field produced only slightly more than 50K bbl/day in 2015.
- Now read Why Occidental Petroleum can deliver more upside
Wed, May 18, 3:58 PM
- Colombia's Ecopetrol (EC -4.1%) says it has halted pumping on the country's second-biggest oil pipeline following a bombing yesterday attributed to the ELN rebel group.
- EC says the attack on a section of the 485-mile Cano-Limon Covenas pipeline occurred near the border with Venezuela, and is the 14th such attack this year.
- Cano-Limon has the capacity to transport up to 210K bbl/day of crude from oil fields operated by Occidental Petroleum (OXY -2.1%) to the Caribbean port of Covenas.
Wed, May 18, 10:11 AM
- Apache (APA +3.2%) pulls back from earlier highs after the company tells Bloomberg that its town hall meeting today will discuss layoffs and not takeover rumors.
- A premarket report from an oil and gas industry job site claimed APA is hosting a town hall today to tell staffers about a takeover by Occidental Petroleum (OXY -1.3%).
- Otherwise, APA says it does not comment about M&A market rumors.
Wed, May 18, 9:14 AM
- Apache (NYSE:APA) +9.8% premarket following a report from OilAndGasPeople.com that the company may be acquired by Occidental Petroleum (NYSE:OXY) in a deal thought to be worth at least $25B.
- APA has called a town hall meeting today where it may announce the takeover to staff, according to the report.
- APA is a "perfect fit" for OXY, the report says, as the companies have a similar production profile in terms of liquids production.
- Now read Occidental Petroleum looks stronger after latest results
Mon, May 9, 12:56 PM
- Occidental Petroleum (OXY -1.9%) is downgraded to Neutral from Overweight at J.P. Morgan but with a higher $80 price target, raised from $74, as the firm says OXY's midstream segment continues to present challenges to margins while upside could come from further beats on solid volume and cost trends as well as chemicals margins.
- Although OXY saw significant headwinds related to pricing and capture rate during the trough of the cycle in Q1, JPM says costs continued to trend positively at $11.6/bbl in the U.S. vs. full-year guidance of $13/bbl.
- JPM also expects OXY to beat FY 2016 production guidance of 4%-6% growth, which the company raised from its earlier 2%-4% growth guidance.
Thu, May 5, 12:57 PM
- Occidental Petroleum (OXY +2.6%) is up despite posting worse than expected Q1 operating losses and revenues, as it raises its 2016 production growth outlook to a 4%-6% increase from an earlier view to a 2%-4% gain.
- OXY says Q1 production from U.S. fields rose by 17K boe/day to 307K boe/day, with the entire increase attributable to its Permian Basin resources, while total output from ongoing operations including the international business rose 11% to 590K boe/day from 531,000 boe/day.
- OXY says Q1 operating costs improved 10% Q/Q and 33% Y/Y, with total oil and gas operating costs falling by 23% Y/Y; OXY's realized crude oil price fell 39% Y/Y to $29.42/bbl.
- The company says it is continuing to reduce its exposure to the Middle East and North Africa region, including in Bahrain, Iraq and Yemen.
Thu, May 5, 7:10 AM
Wed, May 4, 5:30 PM
- AAC, AAON, AAWW, ABC, ACIW, ACRE, ACTA, AGIO, AMCX, AMRC, AMRN, ANIP, ANSS, APA, APO, AVP, AXLL, BABA, BCRX, BDX, BR, CBB, CCC, CCOI, CDK, CHD, CHK, CLDT, CNAT, CNNX, CNSL, COT, CVC, CWEI, DDD, DIN, DISCA, DNR, EAC, ENOC, EPAM, ESNT, EVA, FIG, FLDM, G, GCAP, GWPH, HII, HL, HWCC, ICON, IT, ITG, ITT, JEC, JMBA, K, LAMR, LFUS, LINC, LIOX, LMOS, LQDT, LXP, MBLY, MDC, MFC, MGA, MGLN, MGM, MITL, MLM, MMS, MRK, MWW, NICE, NILE, NRG, NTCT, NYLD, OGE, ONE, OXY, PGNX, PGTI, PRFT, PRIM, PWR, RDEN, RDUS, REGN, RFP, RGEN, RLGY, RSTI, RWLK, SBH, SEAS, SFM, SHLX, SNH, SNI, SNR, SNSS, SPH, SQBG, STOR, TDC, TDY, TE, THS, TIME, TLP, TWI, UNT, USAC, USAK, USCR, VER, VG, VLP, WIN, WPC, WRLD
Fri, Apr. 29, 1:10 PM
- Occidental Petroleum (OXY +0.2%) has named made Vicki Hollub its chief executive officer, becoming the first major U.S. oil exploration firm to put a woman in the CEO office.
- The company had launched a succession plan in December with the pending retirement of Stephen Chazen, her mentor. Directors gathered to formalize the move today after the company's annual meeting.
- She's spent decades at Occidental and most recently oversaw the key Western Hemisphere oil fields nad was president and COO. She came to Occidental in 1982 through its acquisition of her employer, Cities Services.
- Now read Occidental Petroleum Vs. EOG Resources - How To Play It »
Thu, Apr. 28, 5:18 PM
Tue, Apr. 19, 7:17 PM
- The risk-reward balance for select oil and gas stocks that emphasize balance sheet quality resilient 2016 production profiles looks "increasingly compelling" for long-term investors, Morgan Stanley analysts say.
- Stanley maintains a "balanced" view for 2016 in a second consecutive trough year, but the longer-term outlook grows more compelling; in each of the firm's recovery scenarios, the upside to net asset value reflects the commodity price required to deliver the call on U.S. production in 2019, and is ~166%, 107%, and 40% in its respective bull, base and bear cases.
- The firm's Overweight-rated E&P stocks are Anadarko Petroleum (NYSE:APC), Cimarex Energy (NYSE:XEC), Continental Resources (NYSE:CLR), Devon Energy (NYSE:DVN), Diamondback Energy (NASDAQ:FANG), Noble Energy (NYSE:NBL), Occidental Petroleum (NYSE:OXY) and Pioneer Natural Resources (NYSE:PXD).
- Now read Devon Energy +5% following Morgan Stanley upgrade
Occidental Petroleum Corp. is an international oil and gas exploration and production company. It operates through following business segments: Oil and Gas, Chemical and Midstream and Marketing. The Oil and Gas segment develops and produces oil and condensate, natural gas liquids and natural... More
Sector: Basic Materials
Industry: Independent Oil & Gas
Country: United States
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