Yesterday, 5:24 PM
Tue, Jan. 27, 5:35 PM| 4 Comments
Tue, Jan. 27, 12:58 PM
- Marathon Oil (MRO -1.3%), Cobalt International Energy (CIE -0.3%) and RSP Permian (RSPP +0.8%) are downgraded to Neutral from Buy at UBS, as the firm cuts its 2015 Brent/WTI crude forecasts to a respective $52.50/bbl and $49/bbl, and lowers 2016 Brent/WTI crude estimates to $67.50 and $62.50.
- UBS also is cautious on several energy names with large free cash flow deficits, slowing growth profiles and rich relative valuations: COP, DVN, MUR, UPL, RRC, DNR, MHR.
- The firm's top Buys are APC, CHK and EOG.
Fri, Jan. 23, 9:45 AM
- Exxon Mobil (XOM -1.3%) opens lower after Credit Suisse downgrades shares to Underperform from Neutral and cuts its stock price target to $82 from $90, writing that major oil companies are entering a period of "less production, more debt and lower upstream cash margins than they were projected to earn six months ago."
- The firm lowers its 2015 EPS estimates for XOM to $2.82 from $5.04, and its 2016 EPS estimates to $5.42 from $6.27.
- Credit Suisse also downgrades several other major oil names, including Chevron (CVX -1.2%), Hess (HES -1.3%), Noble Energy (NBL -1.2%) and Murphy Oil (MUR -1%).
Wed, Jan. 21, 3:42 PM
- Exxon Mobil (XOM +0.8%) is rising after Wells Fargo upgrades shares to Outperform from Market Perform and lifts its valuation range to $96-$100 from a prior $88-$96.
- However, Wells cuts its 2015 and 2016 earnings estimates on XOM: For 2015, the firm sees EPS of $3.77 from its earlier outlook for $6.26, and it cuts its 2016 EPS estimate to $5.63 from $7.66.
- At the same time, the firm downgrades Chevron (CVX +1.5%) and Murphy Oil (MUR +1.2%) to Market Perform from Outperform with respective stock price targets of $108-$116 from $121-$132 and $46-$50 from $59-$63.
- Wells cuts its EPS estimates for CVX to $4.54 from $9.20 for 2015 and to $7.75 from $11.04 for 2016.
Dec. 5, 2014, 5:38 PM
- The Eagle Ford shale formation in south Texas produced its billionth barrel of oil some time last month, according to analysts at research firm Wood Mackenzie.
- Eagle Ford now accounts for 16% of total U.S. oil production, and the firm forecasts E&P spending of $30.8B in the region next year, ~22% of the total $139.3B expected in U.S. onshore spending.
- Eagle Ford is widely considered the most profitable U.S. shale field, and many analysts speculate the break-even price for production to remain profitable is ~$50/bbl in much of the play.
- Top Eagle Ford producers include EOG, CHK, COP, MRO, BHP, APC, APA, BP, COG, CRZO, CWEI, CRK, XOM, GDP, HES, MTDR, MUR, NFX, PVA, PXD, ROSE, RDS.A, RDS.B, SN, SM, STO, SFY, TLM, ZAZA
Dec. 3, 2014, 11:32 AM
- The energy sector (XLE +1.5%) continues its momentum from yesterday, leading the way again as the best performing sector in early trading with crude oil rising 1.2% so far today and reports that U.S. well permits fell 40% last month.
- Top performers include Clayton Williams (CWEI +7.7%), Transocean Partners (RIGP +10.6%), Gaslog (GLOG +13.8%) and Energy XXI (EXXI +15.7%).
- Other leading energy names are showing stronger recoveries as they clear last Friday's bearish gap zone: XOM +0.2%, CVX +0.4%, COP +2.5%, OXY +2.5%, DVN +2.9%, EOG +2.5%, HES +2.2%, MUR +1.5%, NBL +2.3%, PXD +4.2%, SU +3%, CNQ +1.9%.
- Some analysts warn that the worst may not be over, however, as much of the advance is being driven by investors repurchasing ETFs they used to make short bets; investors also could opt to sell oil shares at a loss in coming weeks to reduce tax burdens.
Nov. 27, 2014, 5:11 AM
- Oil/energy and consumer-goods underperformers lead the way.
- Total return takes into account all distributions.
- Table of S&P 500's biggest total-return losers YTD
Oct. 29, 2014, 5:55 PM
Oct. 9, 2014, 3:25 PM
- Crushed by relentless anxiety about oversupply and weakening global demand, Nymex crude oil futures closed down $1.54 at $85.76/bbl, their lowest close since Dec. 2012, while Brent crude fell below $90/bbl for the first time in more than two years.
- Including today's losses, WTI crude is down 6.2% since the start of the month and Brent has surrendered ~5%.
- In the face of surging output, a move in WTI below its 10-year average at $82 is not out of the realm of possibility, Brown Brothers Harriman says, adding that "a break of $73/barrel could send WTI toward $64, which corresponds with the 2010 low."
- Among big oil names so far today: APC -6.3%, LINE -4.6%, EPD -3.8%, DVN -3.8%, MRO -3.6%, HES -3.8%, KMI -3.7%, TOT -3.5%, STO -3.3%, RDS.A -3.1%, OXY -3%, KMP -3%, XOM -2.6%, COP -2.6%, MUR -2.6%, CVX -2.5%, BP -2.4%.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, ERY, XOP, DIG, BNO, DTO, DBO, DUG, IYE, XES, IEO, CRUD, IEZ, PXE, USL, UWTI, PXJ, FENY, DNO, DWTI, RYE, FXN, SZO, OLO, DDG, OLEM, TWTI
Oct. 8, 2014, 7:42 AM
- Royal Dutch Shell (RDS.A, RDS.B) says it has started oil production from the Gumusut-Kakap floating platform off the coast of Malaysia, the latest in a series of Shell deepwater projects.
- Shell expects the Gumusut-Kakap platform to reach annual peak oil production of ~135K bbl/day when fully ramped up.
- The project is a joint venture between operator Shell with a 33% stake, ConocoPhillips (NYSE:COP) with 33%, Malaysia's state-run Petronas with 20%, and Murphy Oil (NYSE:MUR) with 14%.
Sep. 30, 2014, 10:01 AM
- Murphy Oil (MUR +1.8%) says it is selling 30% of its oil and gas assets in Malaysia for $2B in cash to Indonesian state oil company Pertamina.
- MUR will remain operator, and says it will continue to execute its development plans as well as grow through future exploration in both deep-water and shallow-water Malaysia.
- Earlier reports had said MUR, which has interests in Malaysia, Vietnam, Indonesia, Brunei and Australia, was seeking buyers for its Malaysian assets.
Aug. 21, 2014, 7:13 AM
- Petrovietnam has entered talks with banks to secure financing for a seven-year loan of up to $1.8B for its bid to buy a stake in Murphy Oil's (NYSE:MUR) Malaysian oil and gas assets.
- The $1.8B offer tops a $1.5B bid previously made by India's Oil & Natural Gas and Oil India. Mitsubishi (OTCPK:MSBHY) is also bidding on the assets.
Jul. 30, 2014, 7:27 PM
- Murphy Oil's (NYSE:MUR) Q2 earnings from continuing operations fell 45% Y/Y and missed Wall Street estimates, as costs surged.
- MUR cites higher exploration expenses, higher extraction costs in Malaysia associated with several new field start-ups, lower realized oil and natural gas sales prices for Sarawak production, unfavorable effects in the U.S. from commodity contracts, and higher financing costs.
- Q2 production averaged 210,191 boe/day, below company guidance of 217K, primarily due to the global offshore business in Malaysia with lower oil and gas volumes related to a well operational delay on Kikeh and continued unplanned downtime at a third party methanol plant that processes Kikeh associated gas.
- Lowers FY 2014 production guidance to 220K-225K boe/day from 225K-230K, primarily reflecting reductions at two properties and revisions for further production risks.
Jul. 30, 2014, 6:01 PM
Jul. 17, 2014, 8:58 AM
- Japan trading house Mitsubishi has submitted a non-binding bid to buy Murphy Oil's (NYSE:MUR) Malaysian oil and gas assets valued at ~$2.5B, Reuters reports.
- India's Oil & Natural Gas Corp and Oil India are among other suitors reportedly preparing to submit bids for the MUR assets.
- Malaysia is the biggest of MUR's Asian portfolios, and accounted for more than 45% of its total 2012 net production.
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