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TEVA | Israel stocks higher at close of trade TA 35 up 0 50 | Investing com Israel stocks were higher after the close on Monday as gains in the Biomed Insurance and Technology sectors led shares higher
At the close in Tel Aviv the TA 35 added 0 50
The best performers of the session on the TA 35 were Teva TA TEVA which rose 4 77 or 570 points to trade at 12510 at the close Meanwhile Tower Semiconductor Ltd TA TSEM added 1 57 or 133 points to end at 8588 and Airport City TA ARPT was up 1 41 or 59 points to 4254 in late trade
The worst performers of the session were Delek Group TA DLEKG which fell 1 38 or 1100 points to trade at 78500 at the close Frutarom TA FRUT declined 1 28 or 260 points to end at 20090 and Delek Drilling LP TA DEDRp was down 1 26 or 16 points to 1253
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 230 to 145 and 60 ended unchanged
Shares in Tower Semiconductor Ltd TA TSEM rose to 5 year highs up 1 57 or 133 to 8588
Crude oil for March delivery was down 1 88 or 1 01 to 52 85 a barrel Elsewhere in commodities trading Brent oil for delivery in April fell 2 10 or 1 19 to hit 55 51 a barrel while the April Gold Futures contract fell 0 94 or 11 65 to trade at 1224 25 a troy ounce
USD ILS was up 0 01 to 3 7510 while EUR ILS fell 0 32 to 3 9784
The US Dollar Index Futures was up 0 27 at 100 99 |
TEVA | Israel stocks higher at close of trade TA 35 up 0 54 | Investing com Israel stocks were higher after the close on Sunday as gains in the Real Estate Communication and Technology sectors led shares higher
At the close in Tel Aviv the TA 35 rose 0 54 to hit a new 1 month high
The best performers of the session on the TA 35 were Tower Semiconductor Ltd TA TSEM which rose 3 52 or 289 points to trade at 8495 at the close Meanwhile Partner TA PTNR added 3 34 or 74 points to end at 2292 and Teva TA TEVA was up 2 69 or 360 points to 13750 in late trade
The worst performers of the session were Azrieli Group TA AZRG which fell 0 69 or 120 points to trade at 17180 at the close Leumi TA LUMI declined 0 68 or 11 points to end at 1606 and Poalim TA POLI was down 0 65 or 15 points to 2290
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 218 to 168 and 55 ended unchanged
Shares in Partner TA PTNR rose to 52 week highs up 3 34 or 74 to 2292
Crude oil for April delivery was unchanged 0 00 or 0 00 to 53 78 a barrel Elsewhere in commodities trading Brent oil for delivery in April rose 0 14 or 0 08 to hit 55 73 a barrel while the April Gold Futures contract fell 0 46 or 5 75 to trade at 1235 85 a troy ounce
USD ILS was down 0 19 to 3 7034 while EUR ILS fell 0 72 to 3 9320
The US Dollar Index Futures was up 0 44 at 100 89 |
TEVA | Israel stocks lower at close of trade TA 35 down 0 26 | Investing com Israel stocks were lower after the close on Thursday as losses in the Biomed Technology and Banking sectors led shares lower
At the close in Tel Aviv the TA 35 lost 0 26
The best performers of the session on the TA 35 were Delek Group TA DLEKG which rose 4 35 or 3550 points to trade at 85150 at the close Meanwhile Azrieli Group TA AZRG added 1 82 or 320 points to end at 17950 and Avner L TA AVNRp was up 1 67 or 4 0 points to 243 0 in late trade
The worst performers of the session were Teva TA TEVA which fell 1 93 or 260 points to trade at 13200 at the close OPKO Health Inc TA OPK declined 1 49 or 47 points to end at 3108 and Isramco L TA ISRAp was down 0 95 or 0 6 points to 62 6
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 219 to 165 and 57 ended unchanged
Shares in Azrieli Group TA AZRG rose to all time highs up 1 82 or 320 to 17950
Crude oil for April delivery was up 2 13 or 1 14 to 54 73 a barrel Elsewhere in commodities trading Brent oil for delivery in April rose 2 24 or 1 25 to hit 57 09 a barrel while the April Gold Futures contract rose 1 41 or 17 35 to trade at 1250 65 a troy ounce
USD ILS was down 0 05 to 3 6955 while EUR ILS rose 0 29 to 3 9144
The US Dollar Index Futures was down 0 43 at 100 87 |
TEVA | Israel stocks lower at close of trade TA 35 down 0 95 | Investing com Israel stocks were lower after the close on Monday as losses in the Communication Biomed and Technology sectors led shares lower
At the close in Tel Aviv the TA 35 lost 0 95
The best performers of the session on the TA 35 were Harel TA HARL which rose 1 80 or 35 points to trade at 1979 at the close Meanwhile Isramco L TA ISRAp added 0 78 or 0 5 points to end at 64 8 and Mizrahi Tefahot TA MZTF was up 0 57 or 35 points to 6157 in late trade
The worst performers of the session were Cellcom TA CEL which fell 3 63 or 149 points to trade at 3960 at the close Partner TA PTNR declined 3 42 or 81 points to end at 2286 and Teva TA TEVA was down 3 29 or 420 points to 12350
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 269 to 114 and 61 ended unchanged
Shares in Mizrahi Tefahot TA MZTF rose to all time highs rising 0 57 or 35 to 6157
Crude oil for April delivery was down 0 08 or 0 04 to 53 29 a barrel Elsewhere in commodities trading Brent oil for delivery in May rose 0 16 or 0 09 to hit 55 99 a barrel while the April Gold Futures contract rose 0 19 or 2 35 to trade at 1228 85 a troy ounce
USD ILS was down 0 60 to 3 6744 while EUR ILS fell 0 82 to 3 8941
The US Dollar Index Futures was up 0 17 at 101 52 |
TEVA | Israel stocks higher at close of trade TA 35 up 0 44 | Investing com Israel stocks were higher after the close on Monday as gains in the Communication Real Estate and Banking sectors led shares higher
At the close in Tel Aviv the TA 35 added 0 44
The best performers of the session on the TA 35 were Tower Semiconductor Ltd TA TSEM which rose 2 64 or 219 points to trade at 8529 at the close Meanwhile Cellcom TA CEL added 2 54 or 96 points to end at 3880 and Alony Hetz Properties and Investments Ltd TA ALHE was up 2 11 or 72 points to 3485 in late trade
The worst performers of the session were Ormat Technologies TA ORA which fell 0 90 or 190 points to trade at 20940 at the close OPKO Health Inc TA OPK declined 0 89 or 26 points to end at 2910 and Teva TA TEVA was down 0 49 or 60 points to 12160
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 206 to 175 and 77 ended unchanged
Crude oil for May delivery was down 0 55 or 0 27 to 49 04 a barrel Elsewhere in commodities trading Brent oil for delivery in May fell 0 08 or 0 04 to hit 51 72 a barrel while the April Gold Futures contract rose 0 23 or 2 80 to trade at 1233 00 a troy ounce
USD ILS was down 0 29 to 3 6260 while EUR ILS fell 0 14 to 3 8994
The US Dollar Index Futures was down 0 06 at 100 08 |
XOM | Exxon quarterly profit rises 3 percent on refining | Reuters Exxon Mobil Corp N XOM the world s largest publicly traded oil company on Friday reported a 3 percent increase in quarterly profit on higher results in its refining and chemicals businesses Profit in the third quarter rose to 8 07 billion or 1 89 per share from 7 87 billion or 1 79 per share in the year ago period Oil and gas production fell 4 7 percent the Irving Texas company said Reporting by Anna Driver |
XOM | Perverse Outcomes Lifting U S Oil Export Ban | The United States today is a large net importer of Crude Oil and refined products And yet the story that the country can somehow export crude oil as a foreign policy measure to help reduce Ukraine s dependence on Russia won t die Oil executives and their surrogates keep bringing it up and unsuspecting reporters amplify a message that has absolutely no basis
The reason for this oil industry public relations blitz on the Ukraine is rooted in the industry s desire to end a decades old ban on U S crude oil exports one which the industry hopes to persuade Congress and President Obama to overturn There is in fact a case regarding market efficiency for overturning the ban but this is NOT the one the industry is using in its public relations campaign
Here s why The major effect of lifting the ban would be to allow domestic producers to sell lighter grades of crude oil which U S refineries have little remaining capacity to refine to foreign refineries which do have spare capacity Perversely that would lead to GREATER imports of foreign oil mostly heavier grades more suitable for the current U S refinery infrastructure Net imports would remain unchanged of course even as the country s oil supply becomes more vulnerable to events abroad
But the new arrangement would allow domestic producers to receive a higher price the world price for their lighter crude which comes increasingly from wells in deep shale deposits such as the Bakken in North Dakota This oil has been selling at a discount to world prices since there is more of it in the United States than domestic refiners can currently handle The oil market would become more efficient but at some cost to energy security
You don t have to take my word for any of this Here s what Ken Cohen Exxon s NYSE XOM vice president of public and government affairs told The Wall Street Journal
Exxon has long supported free trade policies and argued that the same rules of trade should apply to oil and natural gas as to any other product made in the U S A Beyond the ideology too much crude from Texas and North Dakota has been pushing down oil prices in the U S Exxon as the nation s largest energy producer wouldn t mind getting higher prices for its crude
How do I know that this change in policy would lead to greater imports of foreign oil Cohen again confirms this
But when it comes to oil refiners are particular about the flavor of crude they use The rise in fracking has unleashed a large volume of light sweet crude oil while American refineries along the Gulf Coast are generally set up to handle heavier crudes from Mexico and Venezuela So there s a mismatch U S oil producers want the option of exporting some high value light oil leaving refiners to import lower cost heavy oil
At least in this interview Cohen is being straight about the real reasons the industry wants the export ban lifted And he has a point when he says that U S based companies with the exception of oil companies are generally free to sell their products and services to the highest bidder worldwide Whether his complaint carries weight depends on whether you believe energy is just another commodity or one that has a special role in the economy That special role can be simply stated as follows Nothing gets done without energy and so energy is in fact a unique commodity that deserves special treatment
Now you can imagine that the above argument is not one that will move Congress or the president to act So the industry which can now say that it has already acknowledged its real argument is making another argument albeit a specious one that we can somehow exert influence on the Ukrainian crisis in a way that will undermine Russia if only the United States would allow oil exports
I tried to put this nonsense to rest in a previous piece citing America s continuing dependence on imports which remain close to 50 percent of our true petroleum consumption But let me try another simpler visual way to show how ridiculous this argument is Jim Hansen of Ravenna Capital Management pointed to the following graph available on the website of the U S Energy Information Administration It s a graph of U S imports of crude oil and petroleum products from Russia
U S imports from Russia remain above 400 000 barrels per day Is it the plan of those who advocate U S oil exports to the Urkaine to import more oil from Russia so we can export it to the Ukraine How exactly would this weaken Russia Or change the world oil supply situation
It really has gotten that absurd |
XOM | Here s What Investors Are Saying About Exxon Mobil Ahead Of Earnings | Exxon Mobil Corp NYSE XOM is set to report FQ1 2014 earnings before the market opens on Thursday May 1st Exxon Mobil is a multinational oil corporation based in Texas which boasts the third highest annual revenue of all companies globally XOM shares started the year on a sour note before mid February when energy and utility stocks became market leaders while tech and high flier growth stocks sold off Since early February lows Exxon Mobil stock has rallied 13 5 XOM profits are expected to fall this quarter compared to FQ1 of last year on higher operating costs and lower production volume Here s what investors hope to see from Exxon Mobil on Thursday
The information below is derived from data submitted to the platform by a set of Buy Side and Independent analyst contributors
The current Wall Street consensus expectation is for Exxon Mobil to report 1 87 EPS and 111 404B revenue while the current Estimize com consensus from 22 Buy Side and Independent contributing analysts is 1 93 EPS and 110 502B in revenue This quarter the buy side as represented by the Estimize com community is expecting Exxon Mobil to beat the Wall Street consensus on EPS but fail to live up to the Street s revenue prediction
Over the past 6 quarters the consensus from Estimize com has been more accurate than Wall Street in forecasting Exxon Mobil s EPS and revenue 3 times and twice respectively By tapping into a wider range of contributors including hedge fund analysts asset managers independent research shops students and non professional investors Estimize has created a data set that is more accurate than Wall Street up to 69 5 of the time but more importantly it does a better job of representing the market s actual expectations It has been confirmed by Deutsche Bank Quant Research and an independent academic study from Rice University that stock prices tend to react with a more strongly associated degree to the expectation benchmark from Estimize than from the Wall Street consensus
The magnitude of the difference between the Wall Street and Estimize consensus numbers often identifies opportunities to take advantage of expectations that may not have been priced into the market In this case we are seeing a minor differential between the two groups expectations on Exxon Mobil s earnings
The distribution of estimates published by analysts on the Estimize com platform range from 1 86 to 2 07 EPS and from 105 517B to 117 524B in revenues This quarter we re seeing a wider range of estimates on Exxon Mobil s earnings
The size of the distribution of estimates relative to previous quarters often signals whether or not the market is confident that it has priced in the expected earnings already A wider distribution of EPS estimates signals less agreement in the market which could mean greater volatility post earnings
Throughout the quarter Wall Street lowered its EPS consensus for Exxon Mobil from 1 97 to 1 87 while the Estimize consensus fell from 2 02 to 1 93 Meanwhile the Wall Street revenue consensus increased from a low of 105 617B to 111 404B while the Estimize community brought its consensus down from 112 504B to 110 502B Timeliness is correlated with accuracy and at the end of the quarter we saw flat revenue expectations and falling EPS projections
The analyst with the highest estimate confidence rating this quarter is turbinecity who projects 1 89 EPS and 111 705B in revenue turbinecity was our Winter 2014 season winner and is ranked among over 4 350 contributing analysts Over the past 2 years turbinecity has been more accurate than Wall Street in forecasting EPS and revenue 60 and 54 of the time respectively throughout over 2000 estimates Estimate confidence ratings are calculated through algorithms developed by deep quantitative research which looks at correlations between analyst track records and tendencies as they relate to future accuracy In this case turbinecity is expecting Exxon Mobil to beat estimates on revenue but report between Wall Street and the Estimize community on EPS
Despite expectations that revenue and profit will fall compared to last year Exxon Mobil stock has been hot lately This quarter contributing analysts on the Estimize com platform are expecting Exxon Mobil to come up short on Wall Street s revenue expectations but beat EPS expectations by a comfortable margin
Get access to estimates for Exxon Mobil published by your Buy Side and Independent analyst peers and follow the rest of earnings season by heading over to Estimize com Register for free to create your own estimates and see how you stack up to Wall Street |
TEVA | Is Teva Pharmaceutical Industries TEVA Outperforming Other Medical Stocks This Year | Investors focused on the Medical space have likely heard of Teva Pharmaceutical Industries NYSE TEVA but is the stock performing well in comparison to the rest of its sector peers A quick glance at the company s year to date performance in comparison to the rest of the Medical sector should help us answer this question
Teva Pharmaceutical Industries is one of 845 companies in the Medical group The Medical group currently sits at 3 within the Zacks Sector Rank The Zacks Sector Rank considers 16 different groups measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group
The Zacks Rank is a successful stock picking model that emphasizes earnings estimates and estimate revisions The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months TEVA is currently sporting a Zacks Rank of 2 Buy
Over the past 90 days the Zacks Consensus Estimate for TEVA s full year earnings has moved 3 79 higher This shows that analyst sentiment has improved and the company s earnings outlook is stronger
Based on the latest available data TEVA has gained about 21 85 so far this year At the same time Medical stocks have gained an average of 2 55 This means that Teva Pharmaceutical Industries is outperforming the sector as a whole this year
To break things down more TEVA belongs to the Medical Generic Drugs industry a group that includes 24 individual companies and currently sits at 165 in the Zacks Industry Rank Stocks in this group have lost about 1 86 so far this year so TEVA is performing better this group in terms of year to date returns
Investors in the Medical sector will want to keep a close eye on TEVA as it attempts to continue its solid performance |
TEVA | Israel stocks higher at close of trade TA 25 up 0 18 | Investing com Israel stocks were higher after the close on Thursday as gains in the Communication Biomed and Banking sectors led shares higher
At the close in Tel Aviv the TA 25 gained 0 18
The best performers of the session on the TA 25 were Teva TA TEVA which rose 2 90 or 360 points to trade at 12790 at the close Meanwhile OPKO Health Inc TA OPK added 1 73 or 55 points to end at 3232 and Strauss Group TA STRS was up 1 05 or 63 points to 6083 in late trade
The worst performers of the session were Israel Corp TA ILCO which fell 3 26 or 2460 points to trade at 73090 at the close ICL Israel Chemicals Ltd TA ICL declined 2 43 or 44 points to end at 1769 and Delek Drilling LP TA DEDRp was down 2 21 or 29 points to 1283
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 183 to 163 and 95 ended unchanged
Crude oil for March delivery was up 1 97 or 1 04 to 53 79 a barrel Elsewhere in commodities trading Brent oil for delivery in March rose 2 23 or 1 23 to hit 56 31 a barrel while the February Gold contract fell 0 99 or 11 80 to trade at 1186 00 a troy ounce
USD ILS was up 0 20 to 3 7912 while EUR ILS fell 0 50 to 4 0461
The US Dollar Index was up 0 70 at 100 61 |
TEVA | Israel stocks lower at close of trade TA 25 down 1 29 | Investing com Israel stocks were lower after the close on Monday as losses in the Banking Financials and Communication sectors led shares lower
At the close in Tel Aviv the TA 25 fell 1 29
The best performers of the session on the TA 25 were Teva TA TEVA which rose 0 23 or 30 points to trade at 13030 at the close Meanwhile Azrieli Group TA AZRG fell 0 18 or 30 points to end at 17070 and Perrigo TA PRGO was down 0 47 or 130 points to 27800 in late trade
The worst performers of the session were Delek Group TA DLEKG which fell 2 72 or 2260 points to trade at 80950 at the close Delek Drilling LP TA DEDRp declined 2 52 or 32 points to end at 1237 and Avner L TA AVNRp was down 2 41 or 5 8 points to 234 4
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 176 to 157 and 81 ended unchanged
Crude oil for March delivery was down 1 35 or 0 72 to 52 45 a barrel Elsewhere in commodities trading Brent oil for delivery in April fell 1 04 or 0 58 to hit 55 12 a barrel while the April Gold Futures contract rose 0 74 or 8 85 to trade at 1199 95 a troy ounce
USD ILS was up 0 01 to 3 7740 while EUR ILS fell 0 07 to 4 0336
The US Dollar Index Futures was down 0 11 at 100 45 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 28 | Investing com Israel stocks were higher after the close on Tuesday as gains in the Insurance Financials and Real Estate sectors led shares higher
At the close in Tel Aviv the TA 25 gained 0 28
The best performers of the session on the TA 25 were Gazit Globe TA GZT which rose 2 25 or 81 points to trade at 3680 at the close Meanwhile Azrieli Group TA AZRG added 1 47 or 250 points to end at 17240 and Isramco L TA ISRAp was up 1 42 or 0 9 points to 64 2 in late trade
The worst performers of the session were Teva TA TEVA which fell 3 20 or 410 points to trade at 12400 at the close Nice Ltd TA NICE declined 1 27 or 330 points to end at 25660 and OPKO Health Inc TA OPK was down 0 76 or 24 points to 3126
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 210 to 163 and 68 ended unchanged
Crude oil for March delivery was down 1 34 or 0 71 to 52 30 a barrel Elsewhere in commodities trading Brent oil for delivery in April fell 1 04 or 0 58 to hit 55 14 a barrel while the April Gold Futures contract rose 0 36 or 4 40 to trade at 1236 50 a troy ounce
USD ILS was up 0 26 to 3 7491 while EUR ILS fell 0 66 to 4 0056
The US Dollar Index Futures was up 0 54 at 100 38 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 66 | Investing com Israel stocks were lower after the close on Wednesday as losses in the Technology Biomed and Oil Gas sectors led shares lower
At the close in Tel Aviv the TA 25 lost 0 66
The best performers of the session on the TA 25 were Delek Drilling LP TA DEDRp which rose 0 86 or 11 points to trade at 1288 at the close Meanwhile Leumi TA LUMI added 0 84 or 13 points to end at 1565 and First International Bank of Israel TA FTIN was up 0 68 or 38 points to 5631 in late trade
The worst performers of the session were Teva TA TEVA which fell 2 98 or 370 points to trade at 12030 at the close OPKO Health Inc TA OPK declined 2 78 or 87 points to end at 3039 and Israel Corp TA ILCO was down 1 68 or 1210 points to 70780
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 189 to 172 and 79 ended unchanged
Shares in Teva TA TEVA fell to 5 year lows falling 2 98 or 370 to 12030
Crude oil for March delivery was up 0 40 or 0 21 to 52 38 a barrel Elsewhere in commodities trading Brent oil for delivery in April rose 0 73 or 0 40 to hit 55 45 a barrel while the April Gold Futures contract rose 0 59 or 7 25 to trade at 1243 35 a troy ounce
USD ILS was down 0 25 to 3 7460 while EUR ILS fell 0 05 to 4 0100
The US Dollar Index Futures was down 0 30 at 100 09 |
TEVA | Israel stocks higher at close of trade TA 35 up 1 08 | Investing com Israel stocks were higher after the close on Sunday as gains in the Banking Financials and Communication sectors led shares higher
At the close in Tel Aviv the TA 35 gained 1 08
The best performers of the session on the TA 35 were Alony Hetz TA ALHE which rose 3 40 or 109 points to trade at 3319 at the close Meanwhile Israel Corp TA ILCO added 2 99 or 2130 points to end at 73400 and Cellcom TA CEL was up 2 73 or 105 points to 3950 in late trade
The worst performers of the session were Teva TA TEVA which fell 1 81 or 220 points to trade at 11940 at the close Delek Drilling LP TA DEDRp declined 0 47 or 6 points to end at 1269 and Avner L TA AVNRp was down 0 47 or 1 1 points to 235 0
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 214 to 154 and 67 ended unchanged
Shares in Teva TA TEVA fell to 5 year lows losing 1 81 or 220 to 11940
Crude oil for March delivery was up 1 64 or 0 87 to 53 87 a barrel Elsewhere in commodities trading Brent oil for delivery in April rose 1 91 or 1 06 to hit 56 69 a barrel while the April Gold Futures contract fell 0 15 or 1 80 to trade at 1235 00 a troy ounce
USD ILS was up 0 11 to 3 7508 while EUR ILS fell 0 02 to 3 9911
The US Dollar Index Futures was unchanged 0 00 at 100 72 |
XOM | Russia s Rosneft seeks UK certified lawyers in sanctions fight | MOSCOW Reuters Russia s top oil producer Rosneft has turned to UK certified lawyers in its fight against Ukraine related Western sanctions which have hit the company s output and prospects for its push to tap Arctic riches
The Kremlin controlled firm has issued a 17 7 million pound 28 million tender seeking the services of UK certified lawyers on a website which registers Russian state purchases and orders
Provider undertakes to render legal services with regard to challenging economic sanctions and to protect interests of the client in general in respect to any other legal matters the document said
The amount of the work is set at 37 000 hours making the fee 478 pounds per hour
BP owns a 19 75 percent stake in Rosneft which due to the sanctions faces limits on its access to capital markets curbing its ability to fund development work
Last month ExxonMobil said it had to wind down cooperation with Rosneft in the Arctic after successfully drilling a first exploration well and the discovery of a large oilfield
Reporting by Vladimir Soldatkin editing by Jason Neely |
XOM | BP posts slump in Russian income but raises dividend | By Dmitry Zhdannikov and Ron Bousso LONDON Reuters BP s L BP third quarter results took a hit from declining oil prices and a sharp drop in income from Russia as Western sanctions on Moscow led to a slump in earnings from the oil major s local partner Kremlin controlled Rosneft MM ROSN
BP s overall profits were broadly in line with expectations at 3 billion but down nearly a fifth year on year Its stock posted modest gains as investors welcomed a 5 3 percent year on year increase in dividends to 10 cents per share
Despite the positive financial results the company still faces two significant headwinds in Russia and liabilities over the 2010 Gulf of Mexico oil spill said Iain Reid analyst at investment bank BMO
BP a major investor in Russia through a 19 75 percent stake in state oil major Rosneft said the fall of the rouble against the dollar had a significant impact on results
Underlying net income from Rosneft for the quarter was 110 million compared with 808 million a year earlier
The rouble has lost more than a fifth of its value since the start of the year as the Kremlin fights capital outflows and lower oil prices while local businesses have been shut off from Western lending by sanctions
The United States and the European Union hit Russia with economic sanctions over Moscow s intervention in Ukraine
The latest sanctions hit long term financing and joint projects with Western companies in the Arctic and shale developments
Rosneft is expected to post a quarterly loss and on Tuesday the company delayed publication of its third quarter results by a day without explanation
Unlike its rivals BP has nearly no production in Russia outside Rosneft Rival ExxonMobil N XOM Royal Dutch Shell L RDSa and France s Total PA TOTF have all suspended joint shale oil and Arctic projects in Russia in recent months jeopardizing plans by Moscow to sustain output and exports key sources of revenue for the state budget
STRONG CASH FLOW
Oil companies have seen billions wiped off their stock market values as crude prices dropped by 25 percent over the past four months to a four year low of near 85 a barrel due to slowing global demand particularly in China and ample supplies
The impact of the falling oil prices on BP was however limited as the third quarter finishes at the end of September
Growing underlying production of oil and gas and a good downstream performance generated strong cash flow in the third quarter despite lower oil prices This keeps us well on track to hit our targets for 2014 BP Chief Executive Bob Dudley said in a statement
Full year capital expenditure used mostly for new oil and gas exploration and development will be trimmed to around 23 billion from previous guidance of 24 billion to 25 billion
BP shares in London were up 0 3 percent at 431 5 pence by 4 12 a m EDT
BP and other majors have managed to sustain healthy dividends over the past quarters mainly on the back of asset sales and lower spending thus generating strong cash flow despite lower oil prices
The increase in the dividend was largely due to BP being on track to achieving its goal of generating 30 billion of net cash flow in 2014 reaching 25 5 billion by the end of the third quarter
GULF OF MEXICO
BP maintained its 3 5 billion liabilities provision for the 2010 Gulf of Mexico rig explosion and spill even after a U S judge last month found it grossly negligent and reckless in the disaster
BP said it would appeal the ruling which could add nearly 18 billion in fines to more than 42 billion in charges the company took for the worst offshore environmental disaster in U S history
By the end of the third quarter cumulative charges paid into the Deepwater Horizon Oil Spill Trust reached their allocated limit of 20 billion and any additional costs will be charged to the income statement as they arise
UPSTREAM DOWN DOWNSTREAM UP
Oil and gas production excluding Rosneft was down 2 7 percent from a year earlier at 2 147 million barrels of oil equivalent mainly due to the expiry of an exploration concession in Abu Dhabi The decline was however offset by higher output from the Gulf of Mexico
The third quarter results included a 770 million writedown of Block KG D6 a gas field in India as a result of uncertainty in the future long term gas price outlook after India changed its gas pricing system
BP said it expected fourth quarter production to be slightly lower
Profits from BP s refining and retail business more than doubled in the third quarter to 1 5 billion due to stronger refining margins
Reporting by Dmitry Zhdannikov and Ron Bousso Editing by Mark Potter Jason Neely Dale Hudson and Giles Elgood |
XOM | What the Buy Side Expects from Exxon Mobil | Exxon Mobil Corp XOM is set to report FQ4 2013 earnings before the market opens on Thursday January 30th Exxon Mobil is a multinational oil corporation based in Texas which boasts the third highest annual revenue in the world Exxon Mobil is also the nation s largest producer of natural gas With the polar vortex now in the rear view mirror many analysts are giving partial blame from the low holiday sales at brick and mortar retailers to the extremely cold temperatures in late December The extreme temperatures and high demand for propane to heat homes could have an impact on Exxon Mobil s FQ4 earnings Here s what investors are expecting XOM to report Thursday
The information below is derived from data submitted to the Estimize com platform by a set of Buy Side and Independent analyst contributors
The current Wall Street consensus expectation is for Exxon Mobil to report 1 90 EPS and 114 876B revenue while the current Estimize com consensus from 11 Buy Side and Independent contributing analysts is 1 95 EPS and 112 496B revenue This quarter the buy side as represented by the Estimize com community is expecting Exxon Mobil to beat the Street on both profit but miss on revenue
The magnitude of the difference between the Wall Street and Estimize consensus numbers often identifies opportunities to take advantage of expectations that may not have been priced into the market In this case we are seeing a moderate differential between the 2 groups forecasts
By tapping into a wider range of contributors including hedge fund analysts asset managers independent research shops students and non professional investors Estimize has created a data set that is up to 69 5 more accurate than Wall Street but more importantly it does a better job of representing the market s actual expectations It has been confirmed by an independent academic study from Rice University that stock prices tend to react with a more strongly associated degree to the expectation benchmark from Estimize than from the Wall Street consensus
The distribution of estimates published by analysts on the Estimize com platform range from 1 83 to 2 05 EPS and 105 000B to 116 477B in revenues This quarter we re seeing a larger distribution of estimates compared to previous quarters
The size of the distribution of estimates relative to previous quarters often signals whether or not the market is confident that it has priced in the expected earnings already A wider distribution of estimates signaling less agreement in the market which could mean greater volatility post earnings
Throughout the quarter we have seen downward EPS revisions and upward revenue revisions from both Wall Street and Estimize Wall Street lowered its EPS consensus from 2 00 to 2 90 and Estimize reduced its own from 2 00 to 1 95 On revenue Wall Street raised its forecast from 112 127B to 114 876B while Estimize expectations also increased from 109 571B to 112 496B Timeliness is correlated with accuracy and the two groups revisions seem to be moving in the same direction going into the report
The analyst with the highest estimate confidence rating this quarter is LJPRtrader who projects 1 97 EPS and 111 861B in revenue Estimate confidence ratings are calculated through algorithms developed by deep quantitative research which looks at correlations between analyst track records and tendencies as they relate to future accuracy In this case LJPRtrader is in agreement with the Estimize community that XOM will beat on profit but come up short on revenue
This quarter analysts on the Estimize com platform are expecting XOM to outperform Wall Street expectations on profit but come up short on revenue Thursday before the market opens we will see how the world s third largest company reports compared to the expectations from the buy side
Get access to estimates for Exxon Mobil Corp published by your Buy Side and Independent analyst peers and follow the rest of earnings season by heading over to Estimize com Register for free to create your own estimates and see how you stack up to Wall Street |
XOM | Opportunities Upside And Down After Fed Tapers S P Drops | U S stocks closed sharply lower yesterday as the Federal Reserve tapered its bond buying program by another 10 billion The losses took back Tuesday s gains and more The day started out bad and ended bad
The street guy s take
I am going to cut to the chase The S P feels like it could very easily slip to the downside I can give you the net changes and sure I can write about some levels to look at but you want the feel You don t want me to fluff things up so I won t Yesterday the S P accelerated to the upside in Tuesday night s Globex session nailing a high of 1801 25 opened at 1772 00 made a low of 1764 00 and then settled at 1771 20 0 80 handles below where it opened
And I don t care what anyone thinks the ESH14 looked like it was going to absolutely fall off a cliff late in the day but the MiM came out of the gate showing buys and increased right into the 2 45 cash close dragging the S P up with it Sure the overall tone was negative
Anytime you rally so much and reverse so hard and make new lows it s hard to defend that type of price action The price action is a total breakdown from what we are used to seeing After indexes closed on their respective highs on Dec 31 and into the new year we knew the sellers were determined to push stocks lower
It was only a few weeks ago that I did the story on the last 10 correction and as of yesterday s close the Dow Jones Industrials DJI is down 6 1 the S P 500 GSP is down 4 and the Nasdaq Composite is down 3
Uncertainty
There seems to be a lot of uncertainty floating around in the stock market from the emerging markets to China and the Fed taper cuts Those and other issues are all weighing down on the S P and with the VIX up 46 in 5 days the quiet upside grind we were seeing seems to have disappeared
Traders dream of markets like we are having now The buyers do not seem shaken and the sellers have been re energized While there is an increased level of risk there is also a lot more money to be made when you see the S P going up and down as it has
We all knew the Fed was going to taper and we suspect it will again during the next meeting Maybe the selloff started in China but the CME Group s S P is the king of all indexes and where it goes all others follow
The Asian markets closed mostly lower with the Nikkei down 2 25 and Europe is trading mixed On this morning s economic and earnings calendar are GDP jobless claims pending home sales EIA natural gas report 5 and 7 year note auction Fed balance sheet and money supply Today is the busiest day of the week for earnings with Google Exxon Mobil Amazon com Chipotle ConocoPhillips Eli Lilly 3M UPS Royal Dutch Shell Diageo Occidental Petroleum Harley Davidson Northrop Grumman Time Warner Cable Altria Raytheon Ericsson Blackstone Viacom Whirlpool Under Armour Visa Potash Tenneco Sherwin Williams Autonation and Beazer Homes
Our view
There are a lot of numbers and earnings to get past today Despite the late day bounce we think there are reasons to be concerned The 1763 1765 level was the first real support but under that is a line of sell stops that goes all the way down to 1757 Above 1784 there is a big line of buy stops that run up to the 1791 1793 area
The level of program and algorithmic trading has been extremely high Yesterday s trade was a great example of how the S P can run the buy stops and then run the sell stops We have a feeling today will provide opportunities on both sides of the markets Our view is to sell the early rally and buy weakness
It s Friday the last trading day of January that we are worried about Much of the downside has been due not only to bearish sentiment but repositioning of portfolios away from emerging markets and into tech stocks and other sectors
When investors know they have to sell and sell soon they re more likely to take whatever decent price they can get than risk waiting At the end of the month many investors are going to want their reallocations done To do that they have to get rid of some stock Sometimes it s that simple an explanation
As always please pay attention to the 10 handle rule and please use stops
In Asia 7 of 11 markets closed lower Shanghai Comp 0 82 Hang Seng o 48 Nikkei 2 45
In Europe 7 of 12 markets are trading lower DAX 0 44 FTSE 0 38
Morning headline S P Seen Higher Ahead of Deluge of Earnings
Total volume 2 7M ESH14 and 10 7K SPH14 contracts traded
S P Fair Value 1768 35 7 90 below futures
Economic calendar Weekly bill settlement GDP jobless claims pending home sales EIA natural gas report 5 and 7 year note auction Fed balance sheet money supply
E mini S P 5001778 50 2 75 0 15
Crude98 55 0 22 0 22
Shanghai Composite0 00N A N A
Hang Seng22035 42 106 189 0 48
Nikkei 22514870 27 136 79 0 91
DAX9373 48 36 75 0 39
FTSE 1006538 45 5 83 0 09
Euro1 355 |
XOM | Beginning Of The End Oil Companies Cut Back On Spending | Steve Kopits explaining our current predicament the cost of oil extraction has been rising rapidly 10 9 per year but oil prices have been flat Major oil companies are finding their profits squeezed and have recently announced plans to sell off part of their assets in order to have funds to pay their dividends Such an approach is likely to lead to an eventual drop in oil production I have talked about similar points previously and but Kopits adds some additional perspectives which he has given me permission to share with my readers I encourage readers to watch the at Columbia University if they have the time
Controversy Does Oil Extraction Depend on Supply Growth or Demand Growth
The first section of the presentation is devoted the connection of GDP Growth to Oil Supply Growth vs Oil Demand Growth I omit a considerable part of this discussion in this write up
Economists and oil companies when making their projections nearly always make their projections depend on Demand Growth the amount people and businesses want This demand growth is seen to be rising indefinitely in the future It has nothing to do with affordability or with whether the potential consumers actually have jobs to purchase the oil products
Kopits presents the following list of assumptions of demand constrained forecasting IOC s are Independent Oil Companies like Shell and Exxon Mobil as contrasted with government owned companies that are prevalent among oil exporters
Thus it is the demand constrained view of forecasting that gives rise to the view that OPEC Organization of Petroleum Exporting Nations has enormous leverage The assumption is made that OPEC can add or subtract as much supply as much as it chooses Kopits provides evidence that in fact the Demand view is no longer applicable today so this whole story is wrong
One piece of evidence that the Demand Model is wrong is the fact that world crude oil including lease condensate production has been nearly flat since 2004 in a period when China and other growing Eastern economies have been trying to motorize In comparison there was a rise of 2 7 per year when the West with a similar population was trying to motorize
Kopits points out that China s big source of oil supply has been US main street China bids oil supply away from United States to satisfy its needs This is the way that markets have made oil available to China when world supply is not rising much It is part of the reason that oil prices have risen
Another piece of evidence that the Demand Model is wrong relates to the assumption that social tastes have simply changed leading to a drop in US oil consumption Kopits shows the following chart indicating that the major reason that young people don t have cars is because they don t have full time jobs
Kopits makes a comparison of the role of oil in GDP growth to the role of water in plant growth in the desert Without oil there is less GDP growth just as without water a desert is starved for the element it needs for plant growth Lack of oil can considered a binding constraint on GDP growth Labor availability might be a constraint but it wouldn t be a binding constraint because there are plenty of unemployed people who might work if demand ramped up When more oil is available at a slightly lower price it is quickly absorbed by markets
Supply Growth is the limiting factor in recent years because the amount of extraction is rising only slowly due to geological constraints and the number of users has risen to the point that there is a shortage
Experience of Major Oil Producing Companies
Kopits presents data showing how badly the big publicly traded oil companies are doing He looks at two pieces of information
Capex Capital expenditures How much companies are spending on things like exploration drilling and making of new offshore oil platforms
Crude oil production
A person would normally expect that crude oil production would rise as Capex rises but Kopits shows that in fact since 2006 Capex has continued to rise but crude oil production has fallen
The above information is worldwide not just for the US At some point a person might expect companies to start getting frustrated they are spending more and more but not getting very far in extracting oil
Kopits then shows another version of Capex history plus a forecast This time the amounts are labeled Upstream so the expenditures are clearly on the exploration and drilling side rather than related to refineries or pipelines
The amounts this time are for the industry as a whole including NOCs which are government owned national oil companies as well as IOCs Independent Oil Companies both large and small Kopits remarks that the forecasts shown were made only six months ago When talking about the above slide Koptis says
People in the industry thought Capex has been going up and up It will continue to do very well We have been on this trajectory forever and we are just going to get more and more money out of this
Now why is that The reason is that in a Demand constrained model for those of you who took economics price equals marginal cost Right So if my costs are going up the price will also go up Right That is a Demand constrained model So if it costs me more to get oil it is no big deal the market will recognize that at some point in a Demand constrained model
Not in a Supply constrained model In a Supply constrained model the price goes up to a price that is very similar to the monopoly price after which you really can t raise it because that marginal consumer would rather do with less than pay more They will not recognize pay your marginal cost In that model you get to a price and after that price there is significant resistance from the consumer to moving up off of that price That is the Supply Constrained Price If your costs continue to come up underneath you the consumer won t recognize it
The rapidly growing Capex forecast is implicitly a Demand constrained forecast It says sure Capex can go up to a trillion dollars a year We can spend a trillion dollars a year looking for oil and gas The global economy will accept that
I quote this because I am not sure I have explained the situation exactly that way I perhaps have said that demand had to be connected to what consumers could afford Wages don t magically go up by themselves even though economists think they can
According to Koptis the cost of oil extraction has in recent years been rising at 10 9 per year since 1999 CAGR means compound annual growth rate
Oil prices have been flat at the same time On the above chart E P Capex per barrel is pretty much the same type of expenses as shown on the previous two charts E P means Exploration and Production
Kopits explains that the industry needs prices of over 100 barrel
The version of the chart I have up is too small to read the names of individual companies If you would like a chart with bigger names you can download the
Historically oil companies have used a discounted cash flow approach to figure out whether over the long term pricing for a particular field will be profitable Unfortunately this standard approach has not been working well recently Expenses have been escalating too rapidly and there have been too many new drilling sites producing below expectation What Kopits shows on the above slide is the prices that companies need on different basis a cash flow basis so that each year companies have enough money to pay today s capital expenditures plus today s expenses plus today s dividends
The reason for using the cash flow approach is because companies have found themselves coming up short they find that after they have paid capital expenditures and other expenditures such as taxes they don t have enough money left to pay dividends unless they borrow money or sell off assets Oil companies need to pay dividends because pension plans and other buyers of oil company stocks expect to receive regular dividends in payment for their equity investment The dividends are important to pension plans
In the last bullet point on the slide Kopits is telling us that on this basis most US oil companies need a price of 130 barrel or more I noticed that Brazil s Petrobas needs a price of over 150 barrel OSX Brazil s number two oil company
In the slide below Kopits shows how Shell oil is responding to the poor cash flow situation of the major oil companies based on recent announcements
Basically Shell is cutting back It no longer is going to tell investors how much it plans to produce in the future Instead it will focus on generating cash flow at least partly by selling off existing programs
In fact Kopits reports that all of the major oil companies are reporting divestment programs Does selling assets really solve the oil companies problems What the oil companies would really like to do is raise their prices but they can t do that because they don t set prices the market does and the prices aren t high enough And the oil companies really can t cut costs So instead they sell assets to pay dividends or perhaps just to get out of the business But is this sustainable
The above slide shows that conventional oil production peaked in 2005 The top line is total conventional oil production calculated as world oil production less natural gas liquids and less US shale and other unconventional and less Canadian oil sands To get his estimate of Crude Oil Normal Decline Kopits uses the mirror image of the rise in conventional oil production prior to 2005 He also shows a separate item for the rise in oil production from Iraq since 2005 The yellow portion called crude production forward is then the top line less the other two items It has taken 2 5 trillion to add this new yellow block Now this strategy has run its course based on the bad results companies are reporting from recent drilling so what will oil companies do now
Above Kopits shows evidence that many companies in recent months have been cutting back budgets These are big reductions billions and billions of dollars
On the above chart Kopits tries to estimate the shape of the downslope in capital expenditures This chart isn t for all companies It excludes the smaller companies and it excludes the National oil companies so it is about one third of the market The gray horizontal line at the top is the industry consensus back in October The other lines represent more recent estimates of how Capex is declining The steepest decline is the forecast based on Hess s announcement The next steepest the dotted gray line is the forecast based on Shell s cutback The cutback for the part of the market not shown in the chart is likely to be different
Oil and Economic Growth
Kopits offers his view of how much efficiency can be gained in a given year in the slide below
In his view the maximum sustainable increase in efficiency is 2 5 in non recessions but a more normal increase is 1 per year At current oil supply growth levels OECD GDP growth is capped at 1 to 2 The effect of constrained oil supply is reducing OECD GDP growth by 1 to 2
Conclusions
While demand constrained models dominate thinking in fact a supply constrained model is more appropriate in recent years
We seem to be short of oil Whenever there is extra oil on the market it is quickly soaked up Oil prices have not collapsed No one is nervous about a price collapse
China recently has been putting little price pressure on the market its demand is recently less high Kopits thinks China will eventually return to the market and put price pressure on oil prices Thus oil price pressures are likely to return at some point
Gail s Observations
An obvious point which I thought I heard when I listened to the presentation the first time but didn t hear the second time is Who will buy all of these assets on the market and at what price China would seem to be a likely buyer if one is to be found But when several companies want to sell assets at the same time a person wonders what prices will be available
The new strategy is in effect maintaining dividends by returning part of capital It is clearly not a very sustainable strategy
It will take a while for these cut backs in Capex expenditures to find their way through to oil output but it could very well start in a year or two This is disturbing
What we are seeing now is a cutback in what companies consider economically extractable oil something that isn t exactly reported by companies I expect that what is being sold off is mostly not proven reserves
In this talk it looks like lack of sufficient investment is poised to bring the system down That is basically the expected limit under Limits to Growth
In theory if an expansion of China s oil demand does bring oil prices up again it could in theory encourage an increase in drilling activity But it is doubtful that economies could withstand the high prices they are already having problems at current price levels considering the continued need for Quantitative Easing to keep interest rates low
A recent news item was titled According to that article
Mr Hockey said reaching the goal would require increasing investment but that it could create tens of millions of new jobs
The cutback in investment by oil companies is working precisely in the wrong direction If these cutbacks act to cut future oil extraction it will bring down growth further |
XOM | Mike Breard A Look At Smaller Oil And Gas Companies | The Street s eyes may be on North Dakota but Mike Breard also keeps an expert eye focused on smaller oil and gas companies drilling elsewhere In this interview with The Energy Report the Hodges Capital analyst discusses several companies drilling excellent wells in Texas Oklahoma and the Gulf of Mexico Breard a veteran oil and gas analyst knows the first names of some of the sharpest managers in the industry Stick with the winning teams he advises even when they change firms
The Energy Report How do you choose the energy names in your coverage list
Mike Breard I look for managers with great track records For example I attended the annual meeting of Matador Resources Co MTDR and there were 150 people there Normally only maybe 20 people attend the annual meetings of the junior energy companies but these folks had been investing with the current managers of Matador in private deals for 30 years They were so eager to get in on the newest venture of these guys that Matador stock has tripled during the past year
TER What is driving Matador s success
MB Attention to detail Matador does not control the most acreage in a play they want the best acreage The company studies an area for quite a while before deciding what leases to go after Then it does all kinds of additional technical studies on the leasehold before drilling such as microspectrometry which is taking pictures of the cores under a strong microscope to identify channels that will allow the oil to flow It is drilling now in the Eagle Ford and the Delaware Basin portion of the Permian Basin
Frankly I do not care for small firms that invest in a dozen different plays all over the country stretching their assets and manpower too thin I prefer companies that stay in two or three regions and concentrate on developing the assets on hand
TER How is Matador stock doing
MB It was under 8 00 last March then hit a high of 24 25 in late November When the price of oil dropped the stock went down to 16 Recently it was over 25 and it could go a lot higher as people get used to thinking about oil staying in the high 90s low 100s Matador has a lot of gas in the core area of the Haynesville As gas prices rise Matador could drill some profitable wells there too
TER How important are factors like debt equity ratios and other types of metrics when you decide whether or not to invest in a junior energy firm
MB In the last few years those metrics have not been as important Large investors are just throwing money at the oil business A company will announce a 500M debt offering and two days later they sell 750MM Money is the easiest thing to get in the energy industry right now Of course I do look closely at the debt situation and I want a firm to have enough liquidity to drill wells and make acquisitions But there are different ways of doing this Take Comstock Resources Inc CRK for instance it has not sold any new stock in years It treats its shares as a precious commodity while some companies do a stock or bond offering every year or two
TER Why is money so free right now
MB Cash is nearly worthless in terms of getting a return Investors are seeing the large profits flowing from the Bakken the Eagle Ford the Permian etc Investors want in on that seemingly easy money Energy is a growth industry
TER What are the top oil and gas plays in the U S for 2014
MB The Permian Basin is the hottest area right now Drillers have been active here since the Santa Rita No 1 well began producing in 1923 and numerous formations are productive The Bakken the Eagle Ford the Marcellus the Wattenberg the Mississippi Lime etc are all good areas More drilling is being done in the Utica and the Tuscaloosa Marine Shale and these areas could blossom in 2014 2015
One issue to consider however is that in some of the older plays the core areas have been identified and firms are exploring the fringe portions Now as far as Wall Street is concerned the older regions do not have much glamour left Some hedge funds are insisting on a minimum leasehold of 100 000 acres and 1 000 barrel a day bbl d wells or they are not interested Size is not the only factor though The reality of it is that if a firm drills a well for 0 5M and produces 50 bbl d the well can pay out in a few months and the rest is pure profit Those types of small profitable operations are running well below the radar on The Street which can make them good buys
The oil stocks can be volatile not based on what they are actually doing but based upon the perceived price of oil and Wall Street s cyclical fears In November many on Wall Street became convinced that the price of oil was going to fall to maybe 60 bbl Oil stocks dropped substantially even though the price of oil did not plummet Now many of these Wall Street seers are thinking Oil is 100 We missed out it is time to start buying
TER What other firms do you like in the junior space
MB EPL Oil Gas Inc EPL is now being managed by Gary Hannah who has been in the business for 30 years EPL was formerly called Energy Partners Ltd Gary studied its assets took over the company and paid off the notes in 2009 He is working in the shallow waters offshore in the Gulf EPL made a big acquisition several years ago It spent 15 million 15M the first year on technical studies and 150M the next year on drilling and tripled the reserves This is its business model EPL is in the giant shallow water fields that were discovered 40 years ago when we did not have the advanced seismic technology to properly assess the true potential Now EPL is finding all kinds of smaller reserves around these old fields and there is plenty of infrastructure in place Zones between 12 000 and 20 000 feet have rarely been drilled EPL has begun a 45M Full Azimuth Nodal seismic program to better understand the deeper water formations
TER Is there a lack of competition in the shallow basin area
MB There is a lack of interest People are putting their money into the shale areas onshore and are shying away from the shallow waters But the Gulf has ample production facilities and pipelines in place and it really does not cost that much more to drill a shallow water well than it does to drill a Bakken well
EPL is conducting studies and making acquisitions in this space In 2012 EPL bought Hilcorp assets for 550M They spent 2013 studying the prospect and will spend over 100M this year to explore and develop
TER How is the EPL share price performing
MB EPL s high was about 43 last fall When energy stocks generally declined it dropped down Then there was a storm in the Gulf that shut down some high producing wells When EPL tried to bring them back on it did not get production back as high as it was which was disappointing The stock fell to around 25 and has recently been back up over 30
TER What other juniors are you focused on
MB Comstock Resources Inc was a big gas producer in the Haynesville when that region was hot When the gas price fell Comstock went looking for oil on property that it already owned in the Eagle Ford It also bought property in the Permian Basin But when it came time to drill the development wells gas was at 2 per thousand cubic feet 2 Mcf Comstock realized that it could not afford to develop both properties It sold the Permian Basin properties for 824M which was a 231M profit in about a year Then it paid down debt started to buy back stock and began to pay a dividend which is very rare for a small producer The yield is now 2 5
Comstock then put 100M into exploring the East Texas Eagle Ford primarily in Burleson County It plans to drill 10 wells there this year on 21 000 net acres It also bought 51 000 net acres in the Tuscaloosa Marine Shale where the wells cost quite a bit more to drill Comstock management plans to drill a couple of wells there in 2014 but it is waiting to follow the lead of nearby producers before stepping up drilling in 2015
TER Do you buy all these types of stocks on a short term basis or are you a long term holder
MB We have held some stocks for four or five years It depends on how they perform If a stock doubles in a week we may sell it If something bad happens we may also sell it But generally we re looking for the longer term plays
TER What other picks do you have for us today
MB Torchlight Energy Resources Inc TRCH is a small company with a property in the Eagle Ford that provides cash flow It plans to sell that asset if it can get a high enough price because it is going more into the Hunton play in Central Oklahoma with a private operator Husky Ventures Inc Husky has drilled 35 40 wells in the Hunton after spending a lot of money on technical work to find the right spots to drill and has been very successful Torchlight has four areas of mutual interest with Husky Torchlight has two other properties in Kansas where it can drill low cost low risk oil wells Torchlight is currently drilling in one Kansas play with Ring Energy Inc REI
Not too many people have heard of Ring but it is run by the same managers that built Arena Resources and sold it to SandRidge Energy SD for 1 6 billion 1 6B Arena drilled 850 shallow low cost wells with high rates of return in the Central Basin Platform of the Permian Basin Ring is drilling the same type of wells in the Central Basin but it also got into a similar shallow oil play in Kasnas These wells will cost around 0 65M to drill and the payout can come in less than a year
TER How is Torchlight financing these activities
MB It sold 7M in equity recently It is also looking at a mezzanine financing package or a line of credit It has already set aside 6M to gain a half interest in the Ring Energy play in Kansas and has put up its share for at least two more months of drilling with Husky
TER Do you have an interest in international energy sectors
MB We buy blue chips including BP Plc BP and Exxon Mobil Corp XOM They pay decent dividends
TER Do you have any interests in the alternative energy sector
MB I have all I can handle with following conventional energy I have however talked with managers at wind turbine companies They have gas generators on the side to supply electricity when the wind dies down Ironically the alternative energy sector has created additional demand for natural gas
TER Do you have any other companies that you want to talk about today
MB Helmerich Payne Inc HP is a drilling company that was the first to build modern AC rigs that they called FlexRigs These are not like the old mechanical rigs with the dirty dangerous drilling floor In a computerized FlexRig the operator sits high up in an air conditioned cockpit guiding the drill bit while looking at computer screens that tell him the weight on the bit how fast it is turning etc
A decade ago the company s competitors laughed claiming that no one was going to pay extra for such a fancy rig Now HP has half the AC rig market share The rigs are super efficient and made for pad drilling The footage rate has increased by 10 in each of the last two years While an average rig may drill a well in 30 days an HP rig can drill it in 18 20 It charges more per day but it is cheaper per well because the wells are drilled faster
The company can build its rigs for 1 2M less than the competition and can charge 15 more This provides a superior profit margin It has been building two new rigs per month and is going to three per month in April And it is well managed The Helmerich family has been running the company since it was started in 1920 Hans Helmerich has just stepped down as CEO but he will still chair the board
TER Is the stock cheap
MB HP stock has been hitting all time highs lately and it has raised its dividend quite a bit It is yielding 2 5 It has the potential to go higher Building three new rigs a month should add around 0 90 share on an annual basis
In general offshore drilling stocks have been way oversold and they will likely be good performers later this year
TER Thank you very much for your time Mike
MB Cheers
Mike Breard graduated from Rice University in 1963 and got an MBA from Stanford in 1965 His first job was with Standard Poor s in New York He later worked with Goodbody and Walston in NYC before moving back to Dallas He worked for several brokerage houses in Dallas including Eppler Guerin Turner and Schneider Bernet Hickman as an energy analyst and institutional salesman before joining Hodges Capital in 1997
DISCLOSURE 1 Peter Byrne conducted this interview for The Energy Report and provides services to The Energy Report as an independent contractor He or his family own shares of the following companies mentioned in this interview Torchlight Energy Resources Inc
2 The following companies mentioned in the interview are sponsors of The Energy Report Torchlight Energy Resources Streetwise Reports does not accept stock in exchange for its services or as sponsorship payment
3 Mike Breard I or my family own shares of the following companies mentioned in this interview CKR EPL HP MTDR TRCH I personally am or my family is paid by the following companies mentioned in this interview None My company has a financial relationship with the following companies mentioned in this interview BP CKR HP MTDR TRCH XOM I was not paid by Streetwise Reports for participating in this interview Comments and opinions expressed are my own comments and opinions I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview
4 Interviews are edited for clarity Streetwise Reports does not make editorial comments or change experts statements without their consent
5 The interview does not constitute investment advice Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility By opening this page each reader accepts and agrees to Streetwise Reports terms of use and full legal
6 From time to time Streetwise Reports LLC and its directors officers employees or members of their families as well as persons interviewed for articles and interviews on the site may have a long or short position in securities mentioned and may make purchases and or sales of those securities in the open market or otherwise |
XOM | The Emerging Investor Language Of Carbon Asset Risk | Last Thursday Exxon Mobil Corporation NYSE XOM agreed to publish its plans to assess the risks climate change pose to its business model making it the first oil and gas producer to do so In exchange a group of shareholders led by Arjuna Capital a sustainable wealth management fund and the advocacy organization As You Sow agreed to withdraw a shareholder proposal on the issue This is the latest in a series of investor led initiatives aimed at forcing companies with significant hydrocarbon reserves to consider the financial implications of a carbon constrained future or Carbon Asset Risk on the well being of their shareholders
We re gratified that ExxonMobil has agreed to drop their opposition to our proposal and address this very real risk Shareholder value is at stake if companies are not prepared for a low carbon scenario Natasha Lamb Arjuna Capital s director of equity research and shareholder engagement That the largest American oil and gas company is the first to come to the table on this issue says a lot about the direction that energy markets are taking Danielle Fugere president of As You Sow the New York Times Investors need transparency and disclosure about these company choices
Traditional climate change discourse has centered on the big picture greenhouse gas emissions from the burning of oil gas and coal and activists have focused their efforts on limiting these emissions by advocating for carbon taxes cap and trade regimes or opposing pipeline construction The key here is that most activism has attempted to work from outside the industry in order to achieve results Over the past year however a new brand of advocacy has taken root that aims to affect the behaviour of the world s largest hydrocarbon producers through their own corporate structures These campaigns have focused on the concept of reserves that fossil fuel companies book as assets but that may be worthless in a future of carbon constraining policies
It s catching on Carbon Asset Risk proposals were filed at 10 hydrocarbon firms this past year Indeed an Ernst Young found that environmental and social proposals made up the largest category almost 40 percent of shareholder proposals last year
Based on calculations by the Carbon Tracker Initiative of existing fossil fuel reserves are un burnable if we want to remain below the two degree benchmark This begs the question why are companies still spending so much on exploration if they already have more than they can use This exploration isn t cheap either Barclays that oil and gas companies will spend approximately 723 billion on exploration and production in 2014 With companies spending so much to expand their reserve base it is difficult to see them walking away from their investments
Carbon Asset Risk proposals are an interesting strategy and getting America s largest oil and gas company to move on the issue is impressive but two things need to be remembered First they will only work for publically traded companies which only hold a fraction of the world s hydrocarbon reserves the vast majority are held by various state owned enterprises Second the countries that are most likely to adopt carbon constraining policies are not the countries where demand growth is expected
It is questionable whether these Carbon Asset Risk plans will say much of anything let alone enunciate the sustainable strategy that environmental groups are hoping for More likely these plans will articulate how firms intend to navigate future regulatory realities and still turn a profit Good news for the shareholders but unlikely to please the environmental crowd |
TEVA | Teva s Quarter Will Be A Window Into Its Turnaround | Judging by the performance of Teva Pharmaceutical NYSE TEVA shares in recent months it seems investors are starting to believe that the world s largest generic drugmaker is taking the right steps in its turnaround strategy
The company reports earnings Thursday before the bell On average analysts expect the company to earn 65 cents per share on revenue of 4 74 billion
Shares have surged 30 since the Israeli company produced powerful first quarter earnings beating the consensus forecast by a big margin A similar performance for Q2 will show that CEO Kare Schultz is in control of his plan to cut costs and manage a huge pile of debt
Teva is trying to recover from a three year slump that sent its shares tumbling as the company invested heavily to grow its copycat medicines business That happened at a time when margins began to shrink in the U S amid fierce competition from other producers The biggest setback came when Teva lost its monopoly on Copaxone a blockbuster multiple sclerosis injection that at one point generated half of Teva s profits
Despite the ups and downs of the past three years there are signs that Teva is gaining some ground Teva raised its full year guidance in May anticipating earnings between 2 40 and 2 65 a share up from a previous per share range of 2 25 to 2 50 It now sees revenues of 18 5 billion to 19 billion up from 18 3 billion to 18 8 billion
Keep An Eye On Cost Cuts
To further cement this recovery Teva needs to show that prices for its products are bottoming out in the U S the world s largest pharmaceutical market and its new product launches are performing well despite the tough market conditions
Teva launched 10 generic products in the first quarter but said its generics business is still under pressure Copaxone retained much of its market share in the first quarter with aggressive price cuts
Details on cost cuts will be crucial Schultz who took over in November last year plans to slash the company s workforce by 25 targeting to reach about half of that goal by the end of the second quarter Teva has more than 17 billion of debt due over the next five years
After managing investors expectations with dire forecasts about its future Teva has set the stage to impress with better than expected results down the road But it s a long road to recovery especially when the U S pharmaceutical industry is going through drastic changes ranging from accelerated Food and Drug Administration FDA approval of competing medicines to government regulation that limits drug prices |
TEVA | AMC CORV REGI SFIX | AMC Entertainment Holdings Inc AMC looks like a swing trade is finally emerging Thursday it popped from a low of about 17 20 to 18 45 That was the breakout I was looking for It jumped up 40 cents or 2 and closed at 18 10 right at or around resistance The volume picked up to 3 8 million I think it s about to emerge Get up into a 20 1 2 21 zone for starters then 25 plus
Correvio Pharma Corp CORV broke out of its flag type trading range over the last 2 weeks With a thrust up 52 cents or 11 to 5 08 on 350 318 shares on Thursday Volume picked up a little bit I think we re going to see the 6 6 1 2 zone
Renewable Energy Group Inc REGI one of our old swings has done very well with a big run up and a 2 month consolidation We noted the breakout last week a beautiful wedge and now it s accelerating It popped 65 cents or 3 on Thursday to 22 40 on 747 711 shares At the top of the channel it might pull back but if it accelerates this could be mid 20s 25 26 short term
Stitch Fix Inc SFIX swing trade is under way and working well After breaking out it s extended On Thursday it was up 1 33 or 4 to 34 16 on 1 8 million shares I believe any move across he 35 1 2 range could lead to something near 39 That s my swing target
Stocks on the long side included AMC Entertainment Holdings Inc AMC ArQule Inc ARQL Correvio Pharma Corp CORV Denali Therapeutics Inc DNLI eHealth Inc EHTH Inspire Medical Systems Inc INSP Lifevantage Corporation LFVN Allscripts Healthcare Solutions Inc MDRX PetIQ Inc PETQ Plurasight Inc PS Renewable Energy Group Inc REGI Stitch Fix Inc SFIX Teladoc Health Inc TDOC Teva Pharmaceutical Industries Limited NYSE TEVA Tandem Diabetes Care Inc TNDM Verastem Inc VSTM and Zscaler Inc ZS
Watch video here |
TEVA | Teva For 2 And 2 For Teva | Here s another short idea as we await the Fed Teva Pharmaceutical Industries NYSE TEVA broke a trendline not long ago
So just like nearly everything else I m short and I think it s got a long long way to go |
TEVA | Israel stocks higher at close of trade TA 25 up 0 04 | Investing com Israel stocks were higher after the close on Wednesday as gains in the Communication Insurance and Banking sectors led shares higher
At the close in Tel Aviv the TA 25 added 0 04
The best performers of the session on the TA 25 were ICL Israel Chemicals Ltd TA ICL which rose 2 06 or 33 points to trade at 1632 at the close Meanwhile Teva TA TEVA added 1 46 or 210 points to end at 14600 and Israel Corp TA ILCO was up 1 23 or 800 points to 65800 in late trade
The worst performers of the session were Frutarom TA FRUT which fell 1 76 or 360 points to trade at 20050 at the close Ormat Technologies TA ORA declined 1 50 or 310 points to end at 20400 and Azrieli Group TA AZRG was down 1 42 or 240 points to 16690
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 239 to 132 and 70 ended unchanged
Crude oil for February delivery was up 0 55 or 0 29 to 52 62 a barrel Elsewhere in commodities trading Brent oil for delivery in March rose 0 52 or 0 29 to hit 55 76 a barrel while the February Gold contract rose 0 30 or 3 50 to trade at 1165 50 a troy ounce
USD ILS was down 0 32 to 3 8528 while EUR ILS rose 0 34 to 4 0364
The US Dollar Index was down 0 61 at 102 61 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 29 | Investing com Israel stocks were lower after the close on Sunday as losses in the Insurance Oil Gas and Banking sectors led shares lower
At the close in Tel Aviv the TA 25 lost 0 29
The best performers of the session on the TA 25 were OPKO Health Inc TA OPK which rose 2 86 or 100 points to trade at 3596 at the close Meanwhile Frutarom TA FRUT added 2 85 or 570 points to end at 20600 and Nice Ltd TA NICE was up 1 64 or 430 points to 26720 in late trade
The worst performers of the session were Teva TA TEVA which fell 5 49 or 790 points to trade at 13600 at the close Delek Drilling LP TA DEDRp declined 1 93 or 27 points to end at 1373 and Avner L TA AVNRp was down 1 89 or 5 0 points to 259 4
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 199 to 156 and 85 ended unchanged
Crude oil for February delivery was down 0 09 or 0 05 to 53 71 a barrel Elsewhere in commodities trading Brent oil for delivery in March fell 0 11 or 0 06 to hit 56 83 a barrel while the February Gold contract fell 0 73 or 8 65 to trade at 1172 65 a troy ounce
USD ILS was down 0 09 to 3 8454 while EUR ILS fell 0 81 to 4 0488
The US Dollar Index was up 0 77 at 102 17 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 09 | Investing com Israel stocks were lower after the close on Wednesday as losses in the Insurance Communication and Real Estate sectors led shares lower
At the close in Tel Aviv the TA 25 declined 0 09
The best performers of the session on the TA 25 were Ormat Technologies TA ORA which rose 2 51 or 500 points to trade at 20450 at the close Meanwhile ICL Israel Chemicals Ltd TA ICL added 1 63 or 28 points to end at 1750 and Teva TA TEVA was up 1 43 or 190 points to 13520 in late trade
The worst performers of the session were Perrigo TA PRGO which fell 5 14 or 1670 points to trade at 30800 at the close Nice Ltd TA NICE declined 4 28 or 1140 points to end at 25510 and Paz Oil TA PZOL was down 0 23 or 130 points to 57400
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 213 to 156 and 71 ended unchanged
Crude oil for February delivery was up 1 89 or 0 96 to 51 78 a barrel Elsewhere in commodities trading Brent oil for delivery in March rose 2 09 or 1 12 to hit 54 76 a barrel while the February Gold contract fell 0 45 or 5 35 to trade at 1180 15 a troy ounce
USD ILS was up 0 20 to 3 8542 while EUR ILS fell 0 67 to 4 0366
The US Dollar Index was up 0 73 at 102 75 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 04 | Investing com Israel stocks were lower after the close on Sunday as losses in the Biomed Technology and Real Estate sectors led shares lower
At the close in Tel Aviv the TA 25 lost 0 04 to hit a new 1 month low
The best performers of the session on the TA 25 were Israel Corp TA ILCO which rose 3 23 or 2250 points to trade at 72000 at the close Meanwhile ICL Israel Chemicals Ltd TA ICL added 2 87 or 48 points to end at 1722 and Delek Group TA DLEKG was up 1 14 or 950 points to 84110 in late trade
The worst performers of the session were OPKO Health Inc TA OPK which fell 2 52 or 84 points to trade at 3244 at the close Perrigo TA PRGO declined 2 13 or 620 points to end at 28480 and Teva TA TEVA was down 1 86 or 240 points to 12640
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 215 to 139 and 87 ended unchanged
Shares in Perrigo TA PRGO fell to 5 year lows losing 2 13 or 620 to 28480 Shares in Teva TA TEVA fell to 5 year lows down 1 86 or 240 to 12640
Crude oil for March delivery was up 2 05 or 1 07 to 53 19 a barrel Elsewhere in commodities trading Brent oil for delivery in March rose 2 38 or 1 29 to hit 55 45 a barrel while the February Gold contract rose 0 67 or 8 00 to trade at 1209 50 a troy ounce
USD ILS was down 0 46 to 3 7997 while EUR ILS fell 0 05 to 4 0688
The US Dollar Index was down 0 33 at 100 77 |
TEVA | Israel stocks lower at close of trade TA 25 down 1 00 | Investing com Israel stocks were lower after the close on Monday as losses in the Communication Financials and Technology sectors led shares lower
At the close in Tel Aviv the TA 25 fell 1 00 to hit a new 1 month low
The best performers of the session on the TA 25 were Elbit Systems TA ESLT which rose 0 20 or 80 points to trade at 40120 at the close Meanwhile ICL Israel Chemicals Ltd TA ICL added 0 17 or 3 points to end at 1725 and Melisron TA MLSR was up 0 12 or 20 points to 17080 in late trade
The worst performers of the session were Perrigo TA PRGO which fell 2 56 or 730 points to trade at 27750 at the close Teva TA TEVA declined 2 53 or 320 points to end at 12320 and Discount TA DSCT was down 2 29 or 18 4 points to 784 9
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 256 to 101 and 84 ended unchanged
Shares in Perrigo TA PRGO fell to 5 year lows losing 2 56 or 730 to 27750 Shares in Teva TA TEVA fell to 5 year lows falling 2 53 or 320 to 12320
Crude oil for March delivery was down 0 73 or 0 39 to 52 83 a barrel Elsewhere in commodities trading Brent oil for delivery in March fell 0 34 or 0 19 to hit 55 30 a barrel while the February Gold contract rose 1 03 or 12 40 to trade at 1217 30 a troy ounce
USD ILS was down 0 21 to 3 7916 while EUR ILS rose 0 15 to 4 0751
The US Dollar Index was down 0 60 at 100 17 |
XOM | Is Exxon Still Drilling In Russia It Depends Who You Talk To | By Exxon Mobil Corporation NYSE XOM may or may not be pulling out of a massive drilling operation in Russia amid a looming deadline to comply with Russian sanctions
On Thursday Bloomberg reported that sources with knowledge of the operation said the company would be pulling out On Friday morning Russia s Natural Resource Minister Sergei Donskoi told Reuters that Exxon is continuing exploration drilling in the Kara Sea declining to comment further
As of yet Exxon s spokesperson has declined to comment
The Irving Texas based Exxon has been working with OAO Rosneft MCX ROSN Russia s largest oil drilling company and North Atlantic Drilling which is owned by Norwegian shipping firm Seadrill Ltd on an Arctic drilling project in Russia s Kara Sea Together the companies have worked to assess and survey the area which is thought to hold as much as 9 billion barrels of oil worth nearly 900 billion
Because of the harsh Arctic conditions Russian firms often require help from Western companies like Exxon which have the resources and equipment necessary to pull off the massive offshore operation in harsh Arctic conditions
As tensions in Ukraine increased steadily this year Exxon and other oil companies kept ties with Russia sending representatives to the St Petersburg International Economic Forum in May despite discouragement from the White House
Russia s president Vladimir Putin hailed the decision and said he was convinced that the joint projects between Rosneft Exxon Mobil and other companies will benefit our national economies will contribute to strengthening the global energy situation according to Reuters
In its second quarter earnings report last month the company confirmed that it would continue operations in the Kara Sea
But last week the Obama administration imposed yet another round of sanctions last week that banned exports of goods or technology that would support Russian Arctic offshore deepwater or shale projects and partnerships with Gazprom Gazprom Neft Lukoil Surgutneftegas and Rosneft The companies have until Sept 26 to wind down applicable transactions with these entities
It would be a real setback for Exxon Charles Erbinger director of the Energy Security Initiative at the Brookings Institute told International Business Times They have been very successful in dealing with the Russians not only on this project in the Kara Sea
He said that a great deal of their long term strategy depends on tapping one of the last great prospects for a super giant oil field
Erbinger explained that American or European oil companies are in a tight spot amid the growing tensions Obviously they want to comply with any legal obligations but many of their strategies extend for decades in the future
It s a long term business he said They don t want to risk that someone else gets to the table
In response to the Bloomberg report that Exxon would be pulling out the head of Greenpeace International s Arctic oil campaign took the opportunity to warn other firms about working in the region
Other oil companies must surely be looking at Exxon s 600 million gamble and wondering whether their own partnerships are worth the risk he said in a public statment Friday morning The Russian Arctic poses unique technical and environmental challenges at the best of times but especially in a period of major geopolitical tensions
Experts say that these latest sanctions will also block billions of dollars in future exploration investment from other companies such as BP Total and Royal Dutch Shell which also have partnerships with Russian firms |
XOM | Dollar s rally bad news for oil multinationals | By Akane Otani NEW YORK Reuters The asset with the greatest prowess of late has been the U S dollar and if its rally continues it threatens to eat into the earnings of multinational companies
The greenback s recent gains have lifted the dollar index a measure of the dollar s value relative to six currencies for 10 consecutive weeks
That marks the dollar s longest rally since the index was created in 1973 and could pose significant headwinds to dollar sensitive sectors of the market particularly companies that respond to commodity prices affected by the greenback and multinationals that do much of their business overseas
For the past few years the U S dollar has been trading in a relatively quiet trading range This summer something changed We are now seeing a new uptrend develop said Adam Sarhan founder and CEO of Sarhan Capital in New York
Analysts have already pointed fingers at the dollar for the decline in prices of commodities like precious metals corn and oil in recent weeks
U S multinationals with large streams of revenue from overseas also stand to lose
If you re a consumer products company that does a lot of business overseas it s not going to help you If you re a large tech company and you do a lot of business overseas that s not going to help you said Larry Glazer managing partner at Mayflower Advisors in Boston
If you look at Exxon as well they re clearly very diversified but affected by the consequences of currencies
Shares of Exxon Mobil N XOM have lost 5 percent over the last 10 weeks even as the broader market hit repeated new highs About 36 percent of Exxon s revenue comes from the United States the rest from overseas
Yet dollar driven losses in some parts of the market may be offset by gains in others especially retail Lower oil prices favor the consumer who can pocket the savings or spend the cash in stores
The stronger dollar benefits U S consumers because they are the lion s share of the economy and any time you get a tailwind for consumers it s good for the U S economy at least in the short run Glazer said
Much of the calculus of whether the dollar s rise will become a net negative for U S stocks depends on domestic inflation rates as well as the speed and scale of the currency s gains market watchers said
The euro zone is fragile the British pound is also weak and geopolitical or economic woes remain a threat As long as it is a healthy and normal advance they should be able to adjust and prepare for it Sarhan said
But if the move is very large fast or erratic those consequences could be immeasurable
Reporting By Akane Otani Editing by Nick Zieminski |
XOM | Venezuela Exxon arbitration ruling due this week sources | By Marianna Parraga HOUSTON Reuters The World Bank arbitration tribunal will give its final award ruling this week on a multibillion dollar claim by Exxon Mobil Corp against Venezuela over the 2007 nationalization of two oil projects legal sources said on Tuesday
The final ruling will be delivered to the parties on Thursday Oct 2 according to a notification they received last week one of the sources told Reuters
Another source said lawyers for state oil company PDVSA had left the country to await the ruling although it was not immediately clear where they will receive the document
The International Centre for Settlement of Investment Disputes ICSID which is deciding the case formally has until the end of October to meet a 90 day deadline for a ruling following the close of proceedings on July 28 Pro opposition Venezuelan daily El Nacional cited a PDVSA source this week as saying Exxon would be awarded between 700 million and 1 2 billion for the takeover of its Cerro Negro heavy oil project and its smaller La Ceiba
There are different views and expectations about the valuation amount one of the legal sources said A figure below 1 billion will be highly favorable to Venezuela but there are no guarantees of that and the lawyers of both parties are just hoping for the best
The company received 908 million from PDVSA in 2012 after a separate decision by the International Chamber of Commerce over a contract dispute linked to the same projects It was unclear if the ICSID would deduct that sum in its ruling
Venezuela is facing about 20 cases at the World Bank tribunal after a wave of nationalizations under the late President Hugo Chavez s socialist government
There has been no official word on the case from either PDVSA or Exxon Mobil Nor was there any new information on the ICSID website where judgments are posted
Writing by Andrew Cawthorne Editing by Lisa Von Ahn |
XOM | Investors Dilemma The Risk Of Catastrophic Success | At about the time the tanks rolled across the Iraqi border in Gulf War II one of the negative scenarios raised by the pundits was catastrophic success What if the Coalition troops became too successful Iraqi resistance all but collapses and the Coalition spearhead advances so fast that it outruns its supply lines Equity investors today are faced with a similar possibility of catastrophic success As 2014 dawns most of the macro tail risks that the markets were concerned about a year ago have evaporated with the exception of China more on that later in a future post The fiscal cliff has been successfully navigated Europe appears to have bottomed and started to recover as per the chart below of European PMIs In the US believes the December ISM report suggests that we could see GDP growth of 4 this year
As the chart above suggests recent readings of the ISM manufacturing index are consistent with overall GDP growth of at least 4 More importantly conditions appear to have been improving somewhat in recent months
4 growth A 4 growth rate for the economy would turn the Fed s thinking about the effectiveness of QE and other extraordinary measures to interest rate policy normalization Indeed the market dialogue seems to be turning in that direction As an example Joe LaVorgna at Deutsche Bank s 2014 forecast via indicates that economic risks are tilted to the upside
For Deutsche Bank s Joe LaVorgna the risks to his forecasts seem to be tilted to the upside In other words he thinks it s more likely that the the U S economy will turn out better than he expects in 2014 Generally when investors ask us this they always seem to imply the downside risks wrote LaVorgna in a note to clients on Tuesday However for us the risk to growth is to the upside not the downside Beyond this the primary downside risk in 2014 as it is in most years is geopolitical meaning we get some sort of negative exogenous shock such as an oil price spike
A test for the Yellen Fed If the US economy were to grow at 4 or more it would put tremendous pressure on the Fed to normalize interest rates relatively quickly Already the yield curve has started to steepen in reaction to the news of tapering of QE purchases If growth were to approach 4 then the bond market would react first with further steepening of the yield curve and stock prices could react either by rallying on higher earnings expectations or fall because of rising interest rates Regardless of market direction sector leadership would change to cyclical and late cycle deep cyclical inflation sensitive groups Julian Emanuel of UBS pointed out via that past Fed chairs have faced tests early in their tenure Though the sample size is small he highlights the chart below of the SPX to gold ratio as a measure of market anxiety during each of the past four Fed chairs terms If history is any guide Janet Yellen is likely to face a test of her leadership in the next six months Could interest rate normalization be the first test of Yellen s leadership at the Fed recently speculated about this challenge
The recent string of positive economic news could turn into a headache for Janet Yellen as she prepares to take the reins at the Federal Reserve With gross domestic product growth above 4 percent and the stock market roaring along save for Thursday s year opening sell off the new central bank chief could have a harder time justifying the Fed s crisis era monetary policy With growth in 2014 to the mid 3s and potentially higher you re actually adding accommodation to the economy said Joe LaVorgna chief U S economist at Deutsche Bank Yes you re slowing the pace of the buying but the balance sheet is still growing It s staggering to me I just don t see how they re going to get out in a clean way
Watching for signs of catastrophic success Investors can never fully forecast the future but they have to be prepared for different possibilities Here are some of what I am watching for under this scenario of 4 growth In particular I am monitoring signs that indicate inflationary expectations are rising As the chart below shows inflationary expectations are starting to tick up TIPS are starting to outperform 7 10 year Treasuries The chart below shows TIP rallied out of a relative downtrend against the iShares Barclays 7 10 Year Treasury Bond ETG IEF Similarly metal and mining stocks have also rallied out of a relative downtrend against SPX This group appears to be forming a sideways consolidation pattern against the general market Energy stocks which is another major sector that is sensitive to inflationary expectations has not rallied out of a relative downtrend yet However it is testing a multi year relative support zone With Warren Buffett s recent forays into the energy sector Suncor Energy Inc SU Exxon Mobil Corporation XOM and Phillips 66 PSX the outlook for this sector appears to be attractive on a longer term basis If these charts of inflationary expectations all start to undergo an uptrend then the risk of a dramatic rise in volatility in stock prices will also rise as expectations transition from slow growth to overheating Disclosure Cam Hui is a portfolio manager at Qwest The opinions and any recommendations expressed in the blog are those of the author and do not reflect the opinions and recommendations of Qwest Qwest reviews Mr Hui s blog to ensure it is connected with Mr Hui s obligation to deal fairly honestly and in good faith with the blog s readers None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument Nothing in this blog constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives financial situation or particular needs of any specific recipient Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions Past performance is not indicative of future results Either Qwest or I may hold or control long or short positions in the securities or instruments mentioned |
XOM | Wonders Yet To Come A Sound Basis For US Energy Policy | Last week when I laid out seven misconceptions about energy shared by the public and policymakers the pushback I received had little to do with the actual data I used to demonstrate my point This is probably because the data are from official public sources and available to anyone with an Internet connection to inspect and verify Most of the pushback bore the sentiment Well you are right about the data But just you wait There are big things that are going to happen in the future with fill in your favorite fossil fuel because of fill in your favorite technology and or name of supposedly large fossil fuel deposit This is what I refer to as the wonders yet to come argument It s an argument that ought to be familiar and tiresome to most everyone It s been used frequently since the oil price of 10 72 a barrel in December 1998 Even as prices rose ten fold and supplies advanced only at a snail s pace from 2005 onward we were treated to frequent pronouncements about how the wonders of technology would deliver cheap abundant oil soon Though technology has failed to provide cheap oil the wonders yet to come argument is still being used to great effect on unsuspecting minds We ve actually had a good test of this argument since 1998 in the oil markets Around that time it was deepwater drilling that was going to keep the world awash in cheap oil for decades to come Check out how many times both the produced by the U S Energy Information Administration EIA and the produced by the International Energy Agency IEA mentioned the key role deepwater oil development was expected to play in raising world production and keeping prices low That didn t quite work out In the decade that followed during which deepwater drilling was going to conquer the world and the oil markets oil prices embarked on a sustained upward trajectory hitting an all time record of 147 a barrel in 2008 After dipping in the face of the financial meltdown in the second half of that year the oil price has stabilized at the highest average daily price ever over the last three years But we are now supposedly in for a second wave of wonders yet to come with regard to oil that is the use of combined with horizontal drilling to extract previously inaccessible oil from deep shale deposits This wonder currently centered in the United States is supposed to glut the world with oil and drive down the price and this time the wonder workers proclaim it ll work Well the record so far is not compelling And even government and international agencies that had been cheerleaders during the boom are seeing the writing on the wall The IEA has curbed its previous enthusiasm and now says in its latest World Energy Outlook that while fracking and deepwater exploration have been successful in extracting previously inaccessible oil deposits this does not mean that the world is on the cusp of a new era of oil abundance The EIA nows believes that in 2016 and then begin to decline after 2020 So much for America leading the charge to a new long term era of cheap abundant oil As this forecast implies negligible supply from what has until now been touted as America s largest deposit of frackable tight oil Calfornia s It seems that the most fracking can do for now is to keep worldwide oil production from sagging which would have happened without the fracking boom So the results are palpable but less than wondrous This particular wonder hasn t cratered prices as foretold And in fact if it did fracking would no longer be profitable since it requires prices above 80 barrel So the fracking experiment is now delivering marginal increases in world supply at historically expensive prices It s no wonder that few people find fracking wonderful on their wallets or their surrounding environment But I am told that we are going to see the fracking phenomenon spread across the world and then finally then we ll see the previously forecast wonders yet to come actually unfold I wonder By now if you purchase gasoline or fuel oil or any of the derivatives of oil you should be suffering from wonder fatigue When is all this wonder actually going to take down the price of oil Keep in mind that it took just five years for the oil price to fall from the the top of the last oil boom to A comparable fall from oil s 2008 high of 147 would have oil trading around 45 today But now five and one half years after the previous absolute price peak In fact the average daily price of Brent Crude has been over 100 for each of the last three years remaining in record territory Those years beat out even 2008 the year of the oil price spike when daily prices averaged 96 94 So people are paying more for their oil on a daily basis now than they did in the year of the supposed top Yes I m wondering but not about the magic of new technologies rather I m wondering about their limits Geology is now showing that even impressive new technologies cannot necessarily conquer high priced oil Ah you say you re leaving out natural gas The fracking boom has certainly been a real wonder in the natural gas industry Actually it turns out that what we should really be wondering is how so many smart people could get sucked into an investment scheme that lost so much money The U S natural gas industry overproduced badly and is still suffering today from that mistake It is doubtful that all but the most prolific shale gas wells are making any money even at current prices Some will say this is an incorrect assessment but these people tend not to include the cost of land and lease acquisition Exxon Mobil Corp s CEO Rex Tillerson whose company has one of the largest portfolios of U S shale gas assets was succinct about shale gas profitability in mid 2012 We are losing our shirts Early last year Matt Fox ConocoPhillips executive vice president of exploration and production suggested that U S natural gas prices would have to go much higher from here to entice drillers back into the natural gas fields in force We now see the results of what shale gas expert Art Berman called deployed in the shale gas fields of America That model was one that has no barriers to entry except access to capital that provides a source of cheap and abundant gas and that somehow also allows for great profit As it turns out the model doesn t actually produce cheap natural gas It produces mostly expensive natural gas that must be sold at a loss And this is the model that the natural gas industry s wonder workers somehow believe will succeed abroad on deposits that to date haven t proven to be that easy to tap We may soon see the flip side of this model because U S drilling for gas has declined precipitously in the face of financial losses The result has been of U S marketed natural gas since January 2012 As the quickly declining shale gas wells give out expect more price action on the upside in the natural gas market In the past we ve been served up wonders yet to come in nuclear power which turned out to be much more expensive and much more dangerous than its proponents had advertised And we await the wonders of fusion energy which used to be 25 years away 25 years ago and today is 40 years away from commercial application if the website for is to be believed Sometimes wonders don t arrive on schedule Despite all this wonders yet to come seem to dominate U S energy policy There is talk of changing laws to allow the exporting of oil and natural gas There is talk of American energy independence There is talk of an American energy renaissance and the ruination of OPEC It is all very breathless and essentially baseless It is an hysteria created by an industry that can no longer deliver on the promise of cheap reliable energy an industry that finds itself in the fight of its life a fight against physics and geology that is increasingly unbending in the face of wonders yet to come |
XOM | Bearish Market Triggers Here s What I m Watching Now | These days my feelings about the US equity market are much like those of Jeff Gundlach and Jim Stack All system lights are green Valuations are elevated but not at bubble levels see Gavyn Davies for a good discussion on this topic While I believe that stock prices can make further highs in the next few months I remain more cautious about what we ll see later in the year see My plan for 2014 In a recent Gundlach displayed the same sense of unease that I feel that conditions are too good to last and compared the current market to 1999
What s next for stocks now There is tremendous optimism and great belief in the equity markets I think the stock market today is very similar to where the gold and silver markets were in March to May of 2011 They just kept going up I remember going to meetings where people were like Ah I think we should buy gold and silver At that time Silver was at about 42 and it went to 50 but then dropped to 20 That s how I think of the market today What s your advice for investors I m not interested in buying equity markets now particularly not the ones who have done the best like the US I feel like putting new money to work in equities today is like buying silver at 42 in the spring of 2011 It may go higher But just like silver at 42 You re seeing a great amount of capitulation It does feel like an echo of the late nineties in terms of market behavior People are saying I can t see any justification for the market not going higher everything points to the market going higher Well I remember a similar mood in early 2000 At that time an equity manager working for me said This is a stock market Nirvana I have never seen better conditions for the stock market So I said That probably means that things can t get any better It reminds me of a triple A rated bond There s only one way for it to go get downgraded
Howard Gold at wrote about Jim Stack who correctly called the 2007 top and the subsequent bottom and characterized Stack as turning cautious on stocks mostly because of the Presidential cycle
Stack isn t reducing his recommended stock exposure but he is watching the economy and some technical indicators like the advance decline line which tracks changes in the number of stocks with price gains vs the number with declining prices and his own proprietary index of bellwether market leading stocks Recently that indicator has put out some cautionary signs too by moving sideways over the last six months while the market has been hitting new highs It s not the kind of divergence we ve seen in 2000 and 2007 he told me but it s divergence nonetheless So what does his gut tell him My gut tells me we re in the latter innings of this ball game he said in our interview And he had a clear warning for investors who ve been out of the market until now and are thinking of jumping into stocks again Don t increase your exposure or increase your risk at this point in the bull market he said The last thing you want to do is take a position that s been mostly in cash and invest aggressively
What are the bearish triggers
I ve therefore been thinking what are the bearish triggers An ugly claw your eyes out bear market where stock prices are down 30 or more is unlikely to occur without a recession and there is no sign of that on the horizon However a slowdown or growth scare isn t out of the question Such a scare could result in a stock market setback of 10 20 this year Let me first say that 20 downturns are part of equity investing and long term equity investors should be prepared to stomach this kind of market action If you can t stomach that kind of volatility then you shouldn t be in the stock market What are the bearish triggers for a 10 20 correction Below I present three scenarios starting from the most likely
Housing weakness spooks the market
The first and most likely scenario is a downturn in housing Housing is very cyclically sensitive Its plunge pushed the US into the Great Recession and its recovery took us out of recession highlighted a paper by which was presented at Jackson Hole in 2007 showing the importance of housing to the economy emphasis added
After residential investment as a contributor to prior weakness come consumer durables consumer services and then consumer nondurables Those are all consumer spending items it s weakness in consumer spending that is a symptom of an oncoming recession The timing is homes durables nondurables and services Housing is the biggest problem in the year before a recession durables is the biggest problem during the recession although consumer durables declined even more than housing before 2 of the 10 post World War II recessions
That s why is worried about a slowdown in housing because of rising mortgage rates
Two significant arguments contra my contention that housing demand will actually decrease at least for awhile YoY this year are that 1 there is a lot of pent up demand and 2 interest rates at 3 are still low so there shouldn t be that much of a reaction Fair points But this isn t the first time that there has been pent up demand for housing in an era of low interest rates While the statistical series aren t identical that there was a huge housing bust during the Great Depression that lasted through World War 2 Then all the GI s came home in 1945 and got busy making babies Boom
I won t go through all his charts but he went on to show the inverse correlation between housing starts responded to long term interest rates in the 1940 s and 1950 s a period characterized by pent up demand for housing
Indeed has shown that homebuilder sentiment started to slip in January though readings are not at levels where investors are inclined to panic
As well pointed out that the latest earnings reports from the largest mortgage lenders show that mortgage origination is dropping
I am carefully watching the relative performance of the homebuilding stocks to the market As the chart below shows this group is undergoing a period of relative consolidation after making an intermediate term relative top However there is an eerie mirror image similarity to the price action in 2012 Then homebuilders consolidated sideways on a relative basis before continuing their relative uptrend Will they consolidate sideways and continue their relative downtrend in 2014 Or will they recover
Inflation scare Fed tightening
A second scenario that could derail the bulls train is the perception of rising inflation which could prompt the Fed to prematurely tighten monetary policy While the Fed may not actually raise rates even the threat of rising rates could throw the stock market into a tizzy also see my recent post The risk of catastrophic success
For now core PCE which is the Fed s favorite measure of inflation remains tame
However the threat of asset inflation is starting to rise This chart of the relative performance of Metal and Mining stocks to the market shows that this group rallied out of a long term relative downtrend and appears to be undergoing a period of sideways consolidation If the relative performance of these stocks tick up then watch for Mr Market to get nervous about rising inflation and Fed tightening
I am also watching the price of Sotheby s BID as a proxy for the price of hard assets such as collectibles Will it break out of its current trading range to the upside or the downside
No discussion of asset inflationary pressures would be complete without highlighting Warren Buffett s recent high profile purchases into the asset inflation sensitive energy sector namely Suncor Energy Inc SU Exxon Mobil XOM and Phillips 66 PSX What does he know that the rest of us don t know For now the threat of asset inflation remains tame Nevertheless I can imagine a scenario where the combination of a weakening housing sector and rising inflationary expectations Fed tightening lead to fears of stagflation and substantial stock market losses
Tail risk from China
As well there is the ever present risk of a financial implosion in China I have written extensively about these risks and I won t repeat them here Could China s financial system crack The potential failure of a wealth management product marketed by a major Chinese bank could be a test case for both investor confidence and moral hazard according to this report emphasis added
Industrial and Commercial Bank of China the world s largest bank by assets said on Thursday that it has no plans to use its own money to repay investors in a troubled off balance sheet investment product that it helped to market ICBC s shares have fallen this week amid speculation that the bank would be forced to help repay investors in a 3 billion yuan 496 20 million high yield investment product issued by China Credit Trust Co Ltd but marketed through ICBC branches The product is due to mature on Jan 31 Regarding this unsubstantiated rumour a situation completely does not exist in which ICBC will assume the main responsibility for the trust product an ICBC spokesman told Reuters by phone on Tuesday
Here are the gory details emphasis added
The trust product called 2010 China Credit Credit Equals Gold 1 Collective Trust Product used the funds it raised from wealthy investors in 2010 to make a loan to unlisted coal company Shanxi Zhenfu Energy Group Ltd But in May 2012 Zhenfu Energy s vice chairman Wang Ping Yan was arrested for accepting deposits without a banking licence Following an investigation China Credit Trust told investors that Zhenfu Energy had taken out high interest underground loans totaling 2 9 billion yuan bringing its total liabilities to 5 9 billion yuan and threatening its ability to repay the trust loan China s coal industry has been battered by falling prices over the last year Several other banks and trust companies are facing losses on loans to another coal company Liansheng Resources Group Analysts have expressed increasing concern in recent years about Chinese banks exposure to off balance sheet risks While trust products and other so called wealth management products typically don t carry a formal guarantee from banks that help to create and sell them bankers worry that investors widely perceive them as carrying an implicit guarantee from state owned banks
reports that this problem is widespread Not only has local government debt been rising they have mainly been financed by the shadow banking system through the use of wealth management products
Rising local government debt has had many concerned about an impending financial crisis in China The latest audit of Chinese government debt showed that local government debt is up to 17 9 trillion renminbi about 2 8 trillion And shadow banking including the use of wealth management products WMPs a pool of securities like trust products bonds stock funds that offer higher yields than bank deposits and are sold as low risk investments has been one of the main sources of credit for local governments We ve seen WMPs rise 47 4 in Q3 2013 from a year ago Trust products are up 60 3 in the same period and LGFV bonds are up 59 7 on the year In the past five weeks we ve seen sales and yields of WMPs spike Eighty three percent of WMPs sold in the last five weeks have seen an expected return of 5 8 an all time high Cui points out
The chimed in and warned that China s finances are weaker than what the official data shows because of local government debt
The mainland s fiscal position is weaker than official data shows but not significant enough to cause alarm the IMF said in a report released yesterday The International Monetary Fund also warned that the mainland was now more vulnerable to a macroeconomic shock because of its higher debt and bigger deficit It estimated that the mainland s augmented fiscal debt which mainly refers to borrowing by local governments rose to about 45 per cent of its 51 9 trillion yuan HK 66 6 trillion gross domestic product in 2012 The rise in augmented fiscal debt however is indicative of underlying challenges in local government finances the report said
What happens when some of these local government financed WMPs default and the government owned bank that marketed them won t stand behind them Could it shake the confidence of Chinese investors If so what are the possible global contagion effects given the size and role of the China in the world s economy Will the 2010 China Credit Credit Equals Gold 1 Collective Trust Product mark the beginning a Countrywide like death spiral which kicked off the Subprime Crisis and subsequent Lehman Crisis or a of 2009 which the market shrugged off For now credit markets remain relaxed about any potential crisis in WMPs The relative performance of to US Treasuries remain in a relative uptrend indicating no signs of stress in the system
Needless to say if the Chinese financial system were to implode and the contagion effects spread into the global financial system the downside risk in US stock prices will not be limited to 20
Watching for bearish triggers
For now all system lights are in the green for stock prices I agree with s assessment of US equities The current cyclical upswing remains supportive of higher equity prices
Our profit model is signaling continued positive growth ahead consistent with persistent dividend hikes and rising government tax receipts Reduced fiscal drag and policy uncertainty in 2014 will remove a major barrier to business confidence and thus investment
However you should watch out for the potholes M acro conditions will remain supportive of the overshoot in equity prices for a while longer but only until Treasury yields become restrictive In this environment it makes sense to focus on profit performance rather than expectations for further valuation expansion Deep cyclical sectors provide protection against rising bond yields and are well positioned to deliver better than anticipated profitability
My inner investor is nervously staying long but watching for the bearish tripwires to be triggered Disclosure Cam Hui is a portfolio manager at Qwest The opinions and any recommendations expressed in the blog are those of the author and do not reflect the opinions and recommendations of Qwest Qwest reviews Mr Hui s blog to ensure it is connected with Mr Hui s obligation to deal fairly honestly and in good faith with the blog s readers None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument Nothing in this blog constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives financial situation or particular needs of any specific recipient Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions Past performance is not indicative of future results Either Qwest or I may hold or control long or short positions in the securities or instruments mentioned |
XOM | Energy Outlook For 2014 Bearish On Oil Prices | Market analysts have been pairing back their forecasts for both Brent and West Texas Intermediate crude as rampant increases in US shale resources look set to create a glut The US shale revolution is showing no signs of slowing with US oil production forecast to increase by 1 million barrels a day in 2014 Deutsche Bank recently cut their 2014 forecast for Brent to 97 50 a barrel from 106 25 and its estimate for WTI to 88 75 per barrel from 97 75 Crude oil closed out 2013 on a rather bearish note due to supply abundance with Brent crude finishing at 110 80 and WTI closing at 98 40 The two main drivers for lower oil prices were strong oil production especially from the US shale boom and weak global oil demand growth of just 1 US oil inventories ballooned last year which in turn suppressed WTI to its sub 95 handle at the end of 2013 US crude oil production grew at 20 4 yoy while crude imports contracted 9 9 yoy in 2013 This resulted in inventories rising by 3 2 over the same period amounting to 361 million barrels versus the 5 year average of 349 million US shale production is likely to outpace oil producing OPEC Organisation of Petroleum Exporting Countries except Saudi Arabia over the next two years according to Exxon Mobil Given the supply abundance the US is likely to become increasingly less dependent on oil imports which will in turn support the US economy and the USD It is worth noting here that over the past decade the dollar has usually weakened whenever the price of crude rises That inverse relationship broke down in December according to data compiled by Bloomberg The 120 day correlation between the two assets which has averaged 0 3 over the past ten years turned positive at the end of 2013 before reaching 0 033 which was the highest positive relationship since 2003 This makes sense as there are currently fewer dollars being spent on crude imports and thus the USD is less exposed to rising crude prices The biggest challenges facing US shale production are technical issues pertaining to shale hydraulic fracturing fracking safety and environmental issues Further it would be imprudent to discuss the outlook for oil without referring to potential geopolitical issues Historically oil prices have been extremely sensitive to geopolitical tensions especially those originating in the Middle East Sustained supply side disruptions could cause the price of oil to spike by anywhere up to 50 bbl During 2013 tensions in Syria Libya and Iran squeezed the price of Brent crude sending it above 110 bbl Many of these issues have since defused but geopolitical risks remain to be a wildcard in 2014 In summary given the expected supply side abundance and stabilising geopolitical conditions in the Middle East it is difficult to be anything but bearish on oil prices in 2013 Barring significant production hiccups or geopolitical escalations it is plausible that WTI and Brent will fall sub 90 and 100 respectively by end 2014 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 55 | Investing com Israel stocks were lower after the close on Wednesday as losses in the Communication Banking and Financials sectors led shares lower
At the close in Tel Aviv the TA 25 fell 0 55
The best performers of the session on the TA 25 were Azrieli Group TA AZRG which rose 1 19 or 200 points to trade at 17070 at the close Meanwhile OPKO Health Inc TA OPK added 0 97 or 43 points to end at 4495 and Isramco L TA ISRAp was up 0 90 or 0 6 points to 67 5 in late trade
The worst performers of the session were Mizrahi Tefahot TA MZTF which fell 1 88 or 101 points to trade at 5260 at the close Bezeq TA BEZQ declined 1 62 or 11 0 points to end at 670 0 and Teva TA TEVA was down 1 61 or 230 points to 14060
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 231 to 107 and 104 ended unchanged
Crude oil for January delivery was down 1 08 or 0 57 to 52 41 a barrel Elsewhere in commodities trading Brent oil for delivery in February fell 0 47 or 0 26 to hit 55 46 a barrel while the February Gold contract rose 0 49 or 5 65 to trade at 1164 65 a troy ounce
USD ILS was down 0 12 to 3 8030 while EUR ILS rose 0 16 to 4 0516
The US Dollar Index was down 0 23 at 100 85 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 21 | Investing com Israel stocks were higher after the close on Sunday as gains in the Biomed Banking and Technology sectors led shares higher
At the close in Tel Aviv the TA 25 added 0 21
The best performers of the session on the TA 25 were Nice Ltd TA NICE which rose 2 21 or 570 points to trade at 26350 at the close Meanwhile Ormat Technologies TA ORA added 1 85 or 360 points to end at 19810 and Mizrahi Tefahot TA MZTF was up 1 59 or 84 points to 5375 in late trade
The worst performers of the session were Paz Oil TA PZOL which fell 1 39 or 790 points to trade at 56100 at the close Israel Corp TA ILCO declined 1 20 or 740 points to end at 60700 and Teva TA TEVA was down 0 98 or 140 points to 14100
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 173 to 167 and 102 ended unchanged
Shares in Paz Oil TA PZOL fell to 52 week lows falling 1 39 or 790 to 56100 Shares in Ormat Technologies TA ORA rose to all time highs up 1 85 or 360 to 19810
Crude oil for February delivery was unchanged 0 00 or 0 00 to 52 95 a barrel Elsewhere in commodities trading Brent oil for delivery in February rose 2 41 or 1 30 to hit 55 32 a barrel while the February Gold contract rose 0 61 or 6 85 to trade at 1136 65 a troy ounce
USD ILS was up 0 76 to 3 8744 while EUR ILS rose 0 93 to 4 0494
The US Dollar Index was unchanged 0 00 at 102 92 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 22 | Investing com Israel stocks were higher after the close on Thursday as gains in the Oil Gas Financials and Banking sectors led shares higher
At the close in Tel Aviv the TA 25 rose 0 22
The best performers of the session on the TA 25 were Israel Corp TA ILCO which rose 3 19 or 1910 points to trade at 61810 at the close Meanwhile ICL Israel Chemicals Ltd TA ICL added 3 08 or 46 points to end at 1539 and Teva TA TEVA was up 2 31 or 320 points to 14190 in late trade
The worst performers of the session were Azrieli Group TA AZRG which fell 1 92 or 320 points to trade at 16320 at the close OPKO Health Inc TA OPK declined 1 01 or 46 points to end at 4514 and Delek Group TA DLEKG was down 0 78 or 650 points to 82250
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 210 to 146 and 87 ended unchanged
Crude oil for February delivery was up 1 20 or 0 63 to 53 12 a barrel Elsewhere in commodities trading Brent oil for delivery in February rose 1 29 or 0 70 to hit 55 16 a barrel while the February Gold contract rose 0 12 or 1 40 to trade at 1134 60 a troy ounce
USD ILS was down 0 07 to 3 8212 while EUR ILS rose 0 20 to 3 9967
The US Dollar Index was down 0 15 at 102 89 |
TEVA | Teva to pay U S government 519 million over foreign bribery charges | By Joel Schectman and Natalie Grover WASHINGTON Reuters Teva Pharmaceutical NYSE TEVA Industries TA TEVA agreed to pay more than 519 million to settle U S criminal and civil allegations that the company bribed overseas officials to gain business for its medications the U S Department of Justice said on Thursday The company paid millions of dollars in bribes to officials in Mexico Russia and Ukraine to promote its products such as its blockbuster multiple sclerosis drug Copaxone the Justice Department said Teva will pay a 283 million penalty to settle Foreign Corrupt Practices Act allegations with the Justice Department The company will also forfeit 236 million in profits plus interest to resolve a civil investigation by the U S Securities and Exchange Commission Teva s Russia subsidiary pleaded guilty to conspiring to violate the Foreign Corrupt Practices Act Teva admitted that its executives bribed officials in order to win more than 65 million in inflated corrupt profits in Russia Teva also admitted to bribing a Ukrainian government official in order to gain approval for the sale of the company s drugs The briberies took place for more than a decade according to the Justice Department The SEC said that all told the company s bribe scheme brought the company more than 200 million in illicit profits Teva said that since 2012 it had taken several steps to address issues of governance including naming a global head of compliance and ending problematic business relationships Teva the world s biggest generic drugmaker said none of the workers involved in the improper payments were any longer with the company and that it had replaced its entire leadership team in Russia in 2013 The improper conduct did not involve U S sales Teva said The Act makes it a crime to bribe foreign government officials to win business regardless of whether the payments are made directly or through other means such as extravagant entertainment or footing the bill for international travel The company whose shares are listed on the New York and Tel Aviv stock exchanges must also retain an independent corporate monitor for at least three years the SEC said Reuters reported earlier this month that Teva was investigating claims by an anonymous tipster that the company bribed state healthcare workers in Romania
Teva s shares were up 2 2 percent at 37 16 in New York |
TEVA | Israel stocks lower at close of trade TA 25 down 0 14 | Investing com Israel stocks were lower after the close on Sunday as losses in the Insurance Biomed and Technology sectors led shares lower
At the close in Tel Aviv the TA 25 lost 0 14
The best performers of the session on the TA 25 were Bezeq TA BEZQ which rose 4 62 or 31 3 points to trade at 709 5 at the close Meanwhile First International Bank of Israel TA FTIN added 0 91 or 50 points to end at 5550 and OPKO Health Inc TA OPK was up 0 75 or 34 points to 4548 in late trade
The worst performers of the session were Teva TA TEVA which fell 1 55 or 220 points to trade at 13970 at the close Israel Corp TA ILCO declined 1 47 or 910 points to end at 60900 and Elbit Systems TA ESLT was down 1 11 or 430 points to 38470
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 230 to 124 and 90 ended unchanged
Shares in First International Bank of Israel TA FTIN rose to 52 week highs rising 0 91 or 50 to 5550
Crude oil for February delivery was up 0 53 or 0 28 to 53 23 a barrel Elsewhere in commodities trading Brent oil for delivery in March unchanged 0 00 or 0 00 to hit 55 90 a barrel while the February Gold contract rose 0 34 or 3 80 to trade at 1134 50 a troy ounce
USD ILS was up 0 42 to 3 8225 while EUR ILS rose 0 30 to 3 9959
The US Dollar Index was down 0 12 at 102 95 |
XOM | End Of The Line For Energy Bulls | Ah those unfortunate energy bulls Their returns over the last few years have been nothing to write home about As shown by the chart below the relative performance of the energy sector against the market has been topping out for the last few years blue line though bulls can be consoled by the fact that the long term relative uptrend that began in 1999 remains intact From a technical perspective there is a decent chance that the relative decline could be halted at the 50 Fibonacci retracement level which roughly coincides with the long relative uptrend that began in 1999 What s more and equally depressing for energy bulls the press and blogosphere have been full of bearish stories about oil prices largely because of the shale boom seen in the US
Recalling the false messiah of peak oil
For Oil Conventional Wisdom No Longer Applies
Is this the end of the line for secular bulls on energy Watch the smart money Before getting overly bearish on the long term outlook for the energy sector consider this Warren Buffett was interviewed recently and said that he thought stock prices were fairly valued and he couldn t find much to buy via emphasis added
Buffett noted that the equity market was fairly valued and stocks were not overvalued Specifically Buffett said They were very cheap five years ago ridiculously cheap and That s been corrected He also noted We re having a hard time finding things to buy One has to take note when the world s most high profile investor a long investor cannot find stocks to buy although he reports his business is improving
If Warren Buffett is having such a difficult time finding values in the market then why did he Just asking Disclosure Cam Hui is a portfolio manager at Qwest The opinions and any recommendations expressed in the blog are those of the author and do not reflect the opinions and recommendations of Qwest Qwest reviews Mr Hui s blog to ensure it is connected with Mr Hui s obligation to deal fairly honestly and in good faith with the blog s readers None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument Nothing in this blog constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives financial situation or particular needs of any specific recipient Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions Past performance is not indicative of future results Either Qwest or I may hold or control long or short positions in the securities or instruments mentioned |
XOM | Oil and Gas Stock Roundup Crude Hit by Iran Deal NatGas Surges | Crude prices weakened on Iran nuke deal while natural gas rocketed higher on weather forecasts Crude Oil Crude prices declined last week responding to the landmark Iran nuclear deal that seeks to arrest the West Asian country s alleged march towards nuclear power while possibly bringing more of its oil to global markets On Nov 24 Iran reached a temporary accord with six world powers the U S Great Britain France Russia China and Germany to restrict its nuclear activities in return for Tehran s relief from international sanctions on oil auto parts gold and precious metals Though Iranian oil export is not expected to rise significantly and flood international markets the groundbreaking agreement will surely go a long way in make it easier for the country to sell oil Sentiments were further dampened by the Energy Information Administration EIA report that showed another big jump in inventories which remains well above the upper limit of the average for this time of the year As per the EIA s weekly Petroleum Status Report crude inventories climbed by an unexpected 2 95 million barrels for the week ending Nov 22 to 391 42 million barrels A surge in production now at their highest level in almost 25 years led to the stockpile pile up with the U S What s more storage at the Cushing terminal in Oklahoma the key delivery hub for U S crude futures traded on the New York Mercantile Exchange was also up 676 000 barrels the seventh straight weekly gain Concerns that the Fed may taper its 85 billion bond repurchase plan in coming months also held back crude prices Traders have voiced concerns that Fed s shift away from the bond buying policy may lead to dollar denominated oil prices to increase in local currency terms in emerging markets thus slowing growth As a result of these factors by close of trade on Friday West Texas Intermediate WTI oil was firmly in the red and settled at 92 72 per barrel losing 1 9 for the week Natural Gas Investors continue to focus on temperature patterns to understand the fuel s economic dynamics As it is natural gas fundamentals look uninspiring with supplies remaining ample in the face of underwhelming demand In fact it is expected to take many years for the commodity s demand to match supply in the face of newer projects Despite these issues natural gas rallied last week on the back of a larger than expected decrease in natural gas supplies and forecasts of cold weather conditions The EIA s weekly inventory release showed that natural gas stockpiles held in underground storage in the lower 48 states fell by 13 billion cubic feet Bcf for the week ended Nov 22 higher than the guided range of 7 11 Bcf drawdown Chilly weather forecasts in the key U S consuming regions over the next fortnight are likely to further spur the commodity s demand for heating Influenced by these factors natural gas spot prices ended Friday at 3 95 per million Btu MMBtu up 4 5 over the week Energy Week That Was The week s energy coverage was dominated by the following news PetroChina Buys Exxon Stake in Iraq Chinese energy giant PetroChina Co Ltd PTR has acquired a 25 interest in the West Qurna 1 oilfields in Iraq from U S oil major Exxon Mobil XOM The deal whose financial details were not disclosed should help PetroChina to set a stronger foothold in Iraq and synergize with its other projects in the nation This should also aid the Chinese government which has become a significant importer of Iraqi crude With a slowdown in domestic oil output China is looking at other international oil fields to meet its energy demands Weather Hurts Pioneer Texas Biz Pioneer Natural Resources Company s PXD output and drilling operations in the Spraberry Wolfcamp Eagle Ford Shale and Barnett Shale Combo plays were hurt by a severe cold spell in Texas Shares of the company felt the chill as the price dropped 2 5 and 0 6 in the two trading sessions to touch 177 75 on Friday Spraberry and Wolfcamp were the worst hit areas Intense icing and low temperatures resulted in widespread power outages facility hindrances loading curtailment and restricted access to production and drilling facilities in these plays A lengthy recovery period is expected and the full impact of the weather condition will be known in a couple of weeks Pioneer had not accounted for this unforeseen severe weather in its production and financial guidance for the fourth quarter of 2013 which was released along with the company s third quarter earnings ConocoPhillips Divests Algerian Arm U S energy giant ConocoPhillips COP has completed the sale of its Algeria business unit to Indonesia s state owned oil company PT Pertamina The sales consideration totaled 1 75 billion ConocoPhillips divestment of its Algerian unit will be value accretive for its shareholders as well as raise funds to concentrate on higher return assets It will facilitate the company to focus on capital investments that will benefit production and cash margins and enhance returns on capital NOV Hives Off Distribution Biz Global large cap energy equipment maker National Oilwell Varco Inc NOV is on track with the previously announced spin off of its Distribution business segment For this purpose a new corporation christened NOW Inc based in Delaware has been formed This new entity will in time operate as an independent publicly traded company under the proposed name of DistributionNOW Weatherford Gains on Settlement News Shares of oilfield service biggie Weatherford International Ltd WFT rose 1 5 on Tuesday Nov 26 after it agreed to shell out around 253 million to settle various bribery related cases with the Department of Justice the Securities and Exchange Commission and the Departments of Treasury and Commerce Other Headline News on Energy SeadrillFallsAfter Profit Misses Estimates Norwegian oilfield service firm Seadrill Ltd SDRL fell to nearly 4 month low following weaker than expected third quarter results Earnings per share came in at 60 cents failing to beat the Zacks Consensus Estimate of 67 cents The miss can be attributed to significant increase in operating costs Jones Energy Rallies on Asset Buy Deal Oil and gas explorer Jones Energy JONE has agreed to acquire certain producing and undeveloped properties in the Anadarko Basin from an undisclosed private seller for 195 million The market reacted positively to the news which was announced after market hours on Monday Nov 25 Shares of the exploration and production company opened at 14 31 on Nov 26 up 3 from the previous close The stock price rose further settling at 14 66 when the market closed yesterday Statoil to Keep 14 Spending Flat Y Y Norwegian oil major Statoil ASA s STL share prices surprised with a respective 1 4 and 0 3 drop in the two trading sessions after it announced its intent to keep exploration spending for 2014 close to the 2013 record level The company also intends to be more selective in choosing exploration targets to lessen risk and control spending Statoil s focus will be directed toward areas where it has made recent discoveries These include Norway the Gulf of Mexico Brazil Canada Angola and Tanzania Lime Energy Drops on Chief Executive Departure Energy services provider Lime Energy Co LIME terminated the employment of Chief Executive John O Rourke and promoted Adam Procell President and Chief Operating Officer as his replacement The sudden management shakeup spooked investor sentiment pulling down the company s shares by 5 7 Performance Chart of Some Major Companies The following table shows the price movement of the major oil and gas players over the past week and during the last 6 months This Week s OutlookApart from the usual suspects the U S government data on oil and natural gas market participants will be closely tracking Friday s non farm payroll report for Nov that will shed further light on the economy s wellness and the need for the bond buying policy Energy traders will also be focusing on the OPEC meeting in Vienna on Wednesday |
XOM | A Notable Story Of The Year Energy Renaissance In The US | As we come to the end of 2013 it s a good time to reflect on some of the biggest resources stories of the year One that immediately comes to mind is the U S energy resurgence and its tremendous effect on oil and gas Only a few years ago we were contemplating the supply constraints facing the petroleum industry as many major oil fields around the world were facing a decline in production Now with the disruptive technology in shale oil and gas we may be looking forward to decades of drilling We ve published on this theme many times over the past several months but if you missed our previous articles I encourage you to revisit the commentaries focused on this newfound energy surge
An American Energy Revolution
The Bright Lights of Big Oil
Two charts clearly illustrate the incredible growth in oil and gas While there are many shale areas around the U S there are a few notable hot beds of activity Regarding the domestic production of tight oil most of the growth has been in the Eagle Ford area that s outside of San Antonio Texas the Bakken formation in Montana and North Dakota and the Permian basin in West Texas At the beginning of 2011 the selected shale areas shown below were producing less than 1 million barrels of tight oil per day Now production is nearing 2 5 million barrels per day
Shale gas in the U S has also taken off in recent years with the Marcellus shale in Pennsylvania and West Virginia Haynesville in Louisiana and Texas and Barnett in Texas contributing to the majority of the growth according to the U S Energy Information Administration EIA Since 2010 natural gas production among the many shale areas jumped from under 10 billion cubic feet per day to about 27 billion cubic feet per day
America s ingenuity and success in extracting its oil and gas resources certainly seems to be unique Even though shale areas are found around the world in Australia Turkey Russia and China the U S is expected to supply the majority of light tight oil LTO to the world through 2035 as other countries are struggling to replicate the experience in the U S according to the International Energy Agency
Drilling Multiple Horizontal Wells from a Single Pad As our resident expert on the natural gas and oil opportunities spouting out across the U S Evan Smith CFA portfolio manager of the Global Resources Fund PSPFX discussed the many investment opportunities recently with Streetwise Reports In the published article in The Energy Report Evan says that lately the shale activity has been more oil directed particularly in the Bakken and Eagle Ford For 2014 he believes there will be a delineation of acreage focusing on pad drilling Continental Resources Inc CLR is testing 16 wells per pad in the Williston Basin in North Dakota The company will repeat that pattern and drive costs down We ve seen a big shift to multi well pad drilling in 2013 but I think it s going to become much more standardized in 2014 The efficiencies that we ve seen which have led to more productivity with fewer rigs will probably remain and perhaps even accelerate in 2014 we said that oil explorers such as Continental EOG Resources and Pioneer Natural Resources that were focused on high margin shale drilling from Texas to North Dakota were set to outperform big oil companies such as Exxon Mobil and Royal Dutch Shell We thought these explorers were poised to reap bigger returns than that of energy titans fifteen times their market value as they devoted almost all of their drilling capital to higher margin domestic crude wells However to make the most out of the energy renaissance investors should look beyond these direct shale plays As highlighted in another boom is being created in a key ingredient used in hydraulic fracturing sand The WSJ finds that companies that mine the ideal sand used to crack rocks and allow the oil and gas to flow out have increased substantially For example since going public in August 2012 shares of U S Silica have doubled according to the WSJ Refiners also benefit tremendously Because crude oil exports are mostly prohibited the oil is refined before being shipped to the rest of the world As you can see in the chart in recent years the U S has moved from importing refined petroleum products prior to 2010 to exporting more than 1 million barrels per day as of September 2013 In the Streetwise interview Evan talks about more opportunities he sees in the pipeline When you have some time over the next few days I encourage you to to stay curious and gain insight for your portfolio
Disclosure Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure as well as economic and political risk Because the Global Resources Fund concentrates its investments in a specific industry the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries Holdings in the Global Resources Fund as a percentage of net assets as of 09 30 2013 Continental Resources 2 41 EOG Resources Inc 0 0 Exxon Mobil 0 0 Pioneer Natural Resources Co 2 36 Royal Dutch Shell 0 0 All opinions expressed and data provided are subject to change without notice Some of these opinions may not be appropriate to every investor By clicking the link above you will be directed to a third party website U S Global Investors does not endorse all information supplied by this websites and is not responsible for its content Diversification does not protect an investor from market risks and does not assure a profit |
XOM | Oil Gas Stock Roundup Positive Outlook For XOM And BP | Natural Gas Investors continue to focus on temperature patterns to understand the fuel s economic dynamics As it is natural gas fundamentals look uninspiring with supplies remaining ample in the face of underwhelming demand In fact it is expected to take many years for the commodity s demand to match supply in the face of newer projects Coming to last week natural gas stayed flat as a massive decrease in supplies was offset by forecasts of a break in cold weather conditions The EIA s weekly inventory release showed that natural gas stockpiles held in underground storage in the lower 48 states fell by 285 billion cubic feet Bcf for the week ended Dec 13 higher than the guided range of 260 264 Bcf drawdown Moreover the decrease was significantly higher than both last year s withdrawal of 70 Bcf and the 5 year average reduction of 133 Bcf for the reported week However milder weather forecasts in the central and eastern regions over the next few days are likely to limit the commodity s demand for heating Influenced by these factors natural gas spot prices ended Friday at 4 42 per million Btu MMBtu essentially flat over the week Energy Week That Was The week s energy coverage was dominated by the following news XOM Shares Hit 52 Week High Shares of Exxon Mobil Corp hit a 52 week high of 99 95 on Dec 18 In fact the Irving TX based energy behemoth has seen its stock price climb some 12 during the past three months This price appreciation can be attributed to its strong operational and financial position on the back of solid business portfolio and prudent investment approach Exxon Mobil is the world s best run integrated oil company given its track record of superior return on capital employed and has long been a core holding for investors seeking a defensive name with continued dividend growth BP Hits Oil in GoM Since 10 Blowout Oil major BP plc along with its partner ConocoPhillips COP made a huge find at its Gila prospect in the deepwater U S Gulf of Mexico GoM The discovery represents the first major find by BP since the massive rig outburst that caused the worst environmental tragedy in the U S history After the Macondo well blowout the U S regulators lifted a five month ban on deepwater drilling in 2010 The latest find is the third discovery in recent years in the emerging Paleogene trend in the Gulf The previous finds were Kaskida in 2006 and Tiber in 2009 BP hit oil at depths of around 9 150 meters 30 000 feet in the Gila prospect by an exploration well on Keathley Canyon Block 93 about 300 miles southwest of New Orleans in around 4 900 feet of water Hess Anticipates Lukewarm 4Q Hess Corporation HES Corp has slashed its production guidance for the first two months of the fourth quarter of 2013 and overall guidance for the same quarter The cascading trend in global oil prices prompted the cut Hess reduced its fourth quarter daily production guidance to 310 000 barrels of oil equivalent per day BOE d from 320 000 BOE d guided previously The decrease reflects the closure of sale of its interest in the Natuna A Field in Indonesia and higher production downtime due to maintenance activities At the same time having faced a global slump in realized selling prices for crude oil during the first two months of the fourth quarter the company anticipates sequentially lower earnings COG Revises 13 Output Growth Outlook Independent oil and gas exploration company Cabot Oil Gas Corp COG reported that it has revised its 2013 production growth outlook The Houston TX based upstream operator has set its new production growth guidance at 50 to 55 up from the previous outlook of 44 to 54 Cabot added that recently it has produced roughly 1 5 billion cubic feet per day of natural gas from Marcellus shale operations reflecting a year over year hike of 50 This record production has encouraged the company to lift its 2013 production growth outlook However Cabot has retained its production growth guidance for 2014 at 30 to 50 Encana SBM Offshore Sign Contract Canadian natural gas producer Encana Corporation ECA reported that it has entered into an agreement with SBM Offshore a marine service provider Per the contract SBM Offshore will operate the Deep Panuke platform on behalf of Encana The platform is located in the Deep Panuke natural gas field offshore Nova Scotia Canada The field consists of four operating wells Encana reveals that the platform has been constructed for producing roughly 300 0 million cubic feet of natural gas from the wells every day Encana added that the natural gas produced from the Deep Panuke development will likely be sold to Spanish oil and gas company Repsol SA Performance Chart of Some Major Companies The following table shows the price movement of the major oil and gas players over the past week and during the last 6 months
Other Headline News on Energy Comstock to Invest 450M in 2014 Domestic energy explorer Comstock Resources Inc CRK has allocated roughly 450 million for drilling and completion operations in 2014 The earmarked capital will however not be utilized for drilling natural gas wells A further 28 million will go towards leasing activities Out of the total budget the Frisco Texas based upstream operator is expected to invest 80 0 million to complete the drilling of 29 wells in the South Texas based Eagle Ford shale and 264 million to drill 59 wells at South Texas located Eagle Ford shale Another 50 million will be used for drilling 10 wells at East Texas based Eagle Ford shale Additionally 27 million will likely be spent to drill 2 wells at the Tuscaloosa Marine shale The remaining 29 million will be utilized for other capital developments Petrobras Confirms Moita Bonita Find Brazilian state run energy giant Petroleo Brasileiro SA or Petrobras has confirmed the presence of gas and light oil in the extension well 3 BRSA 1194 SES commonly known as Moita Bonita 1 The ultra deepwater well is located in the Sergipe Alagoas Basin in the Moita Bonita area in the state of Sergipe It is located 7 km from 1 BRSA 1088 SES or the Moita Bonita discovery well at a water depth of 2 800 meters on the concession BM SEAL 10 Petrobras has a 100 holding in BM SEAL 10 and also acts as its operator Patterson UTI to Incur 37 8M Cost Onshore contract driller Patterson UTI Energy Inc reported that it might bear a significant cost for its mechanically powered rig fleet The Houston TX based company has estimated the pre tax non cash expenses of roughly 37 8 million Out of the total charge 7 9 million can be attributed to the retirement of Patterson UTI s 48 mechanical drilling rigs during the current quarter The rigs having capacity of roughly 731 horsepower are not expected to work again due to lower demand in the international market The company reveals that a portion of the parts of those rigs will likely be auctioned while the major remaining components will be utilized for maintaining other rigs The residual 29 9 million will be borne by the company as presently 55 mechanical rigs are out of contract This Week s Outlook Apart from the usual releases the U S government data on oil and natural gas market participants will be closely tracking key data on durable goods orders new home sales numbers and jobless claims |
TEVA | Israel stocks higher at close of trade TA 25 up 0 04 | Investing com Israel stocks were higher after the close on Wednesday as gains in the Insurance Real Estate and Technology sectors led shares higher
At the close in Tel Aviv the TA 25 gained 0 04
The best performers of the session on the TA 25 were Paz Oil TA PZOL which rose 2 92 or 1790 points to trade at 63000 at the close Meanwhile Frutarom TA FRUT added 2 35 or 480 points to end at 20930 and Elbit Systems TA ESLT was up 2 23 or 880 points to 40300 in late trade
The worst performers of the session were Teva TA TEVA which fell 2 54 or 380 points to trade at 14610 at the close Bezeq TA BEZQ declined 1 74 or 11 8 points to end at 666 0 and Azrieli Group TA AZRG was down 1 23 or 200 points to 16030
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 172 to 157 and 114 ended unchanged
Shares in Teva TA TEVA fell to 52 week lows falling 2 54 or 380 to 14610 Shares in Frutarom TA FRUT rose to all time highs up 2 35 or 480 to 20930 Shares in Bezeq TA BEZQ fell to 52 week lows falling 1 74 or 11 8 to 666 0 Shares in Elbit Systems TA ESLT rose to all time highs gaining 2 23 or 880 to 40300
Crude oil for December delivery was up 0 76 or 0 35 to 46 16 a barrel Elsewhere in commodities trading Brent oil for delivery in January rose 0 66 or 0 31 to hit 47 26 a barrel while the December Gold contract fell 0 03 or 0 35 to trade at 1224 15 a troy ounce
USD ILS was up 0 33 to 3 8550 while EUR ILS fell 0 15 to 4 1140
The US Dollar Index was up 0 37 at 100 57 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 66 | Investing com Israel stocks were higher after the close on Tuesday as gains in the Communication Banking and Financials sectors led shares higher
At the close in Tel Aviv the TA 25 added 0 66 to hit a new 1 month high
The best performers of the session on the TA 25 were Bezeq TA BEZQ which rose 4 23 or 27 8 points to trade at 684 8 at the close Meanwhile Israel Corp TA ILCO added 2 62 or 1570 points to end at 61550 and ICL Israel Chemicals Ltd TA ICL was up 2 38 or 35 points to 1505 in late trade
The worst performers of the session were Strauss Group TA STRS which fell 2 56 or 155 points to trade at 5907 at the close Teva TA TEVA declined 1 27 or 190 points to end at 14790 and OPKO Health Inc TA OPK was down 1 04 or 42 points to 3994
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 189 to 158 and 96 ended unchanged
Crude oil for January delivery was up 0 08 or 0 04 to 48 28 a barrel Elsewhere in commodities trading Brent oil for delivery in January rose 0 84 or 0 41 to hit 49 31 a barrel while the December Gold contract fell 0 17 or 2 05 to trade at 1207 75 a troy ounce
USD ILS was up 0 11 to 3 8672 while EUR ILS fell 0 28 to 4 0947
The US Dollar Index was up 0 40 at 101 34 |
XOM | Exxon Mobil s Arctic Drilling On Track Despite Russia Sanctions | By Exxon Mobil Corp NYSE XOM brushed aside concerns this week that new U S and European sanctions against Russia could hinder its drilling operations in Arctic waters near Siberia In its second quarter earnings report on Thursday the energy giant said its massive offshore operation in the icy Kara Sea is expected to start producing oil late this year
The Western sanctions announced earlier this week target Russia s energy financial and military sectors in an effort to curb President Vladimir Putin s support for pro Russian separatists in Ukraine The measures include an export ban on advanced oil technologies used to tap unconventional deposits like deep water and Arctic fields and onshore shale formations
Energy experts say the penalties could hinder Moscow s attempts to drill in the Arctic Russia s OAO Rosneft Exxon s partner in the offshore venture has also been targeted in separate U S sanctions including a limit on its long term borrowing and restrictions on Chairman Igor Sechin
David Rosenthal Exxon s vice president of investor relations wouldn t say whether the company is still planning to start drilling its first well in the Kara Sea next month Until we have a chance to look at the sanctions read them assess them evaluate them it just wouldn t be appropriate to comment he said during a conference call
But in Irving Texas based Exxon s published materials the company said its Berkut platform in the sea s Arkutun Dagi field is slated to add up to 90 000 barrels of oil per day to current production volumes by the end of 2014 When complete the platform will be the largest such offshore oil and gas operation in Russia according to the company Exxon and Rosneft s Kara Sea operations were the center of Greenpeace protests against Arctic drilling last year a tussle that got 30 activists arrested
The Arctic mission is key to the company s broader strategy to reverse declining output Exxon s shares fell on Thursday after the company reported that its oil and natural gas output fell 5 7 percent in the second quarter of 2014 to the equivalent of 3 84 million barrels a day |
XOM | 4 Oil And gas Jrs For A Globe Sweeping Shale Revolution | Shhh The market is sleeping Meanwhile international juniors are stealing into old oil and gas basins with the same equipment and technical expertise that forever changed the oil and gas landscape in North America In this interview with The Energy Report Canaccord Genuity Research Director Christopher Brown and Research Associate Kimberly Thompson name some promising junior companies that are poised to tempt majors back into these basins or simply clean up on premium international pricing For investors it s a case of massive potential upside for practically nothing at least until the market wakes up The Energy Report Christopher and Kimberly welcome International oil and gas companies need to have more skills than purely domestic companies diplomatic skills ability to navigate regulatory bureaucracies financial depth to survive political turmoil and knowledge of import and export protocols are just a few How do the juniors manage this Christopher Brown Juniors are able to leverage off previous technical information that majors typically leave behind in a number of these jurisdictions The technical expertise of these juniors is so specialized They find their niche in particular areas where they think they can unlock more value than was previously unlocked Because of the speculative nature of going back into these older basins and looking for new unconventional plays junior companies often source funding from institutions that are willing to take on the risk for significant potential rewards Institutions based in New York as well as Europe have provided capital support to technically skilled juniors TER The companies in your portfolio operate largely in the unconventional oil and gas space Why haven t the majors moved in and taken them out CB The majors have their plates full They can t be everywhere at once Keep in mind that the majors are looking for materiality especially when you re dealing with companies like Exxon Mobil Corp XOM which has 25 billion barrels 25 Bbbl of proven reserves Exxon needs to see that it s worth the time to come back to these basins TER How have Cub Energy Inc s KUB TSX V Ukrainian and Turkish gas prospects performed CB On the Ukrainian side Cub has done well at introducing new technologies to the country Cub has received the approvals to bring in this new technology and apply it It s going to be a slow process but as the company continues to unlock value there s no denying that its region and fiscal terms are very good and provide a lot of incentive to keep on working hard to grow the production base Turkey hosts a more difficult unconventional basin The Anatolia Basin is still in its earlier stages whereas the Ukrainian assets have some proven opportunities In the Anatolia Basin you do have some majors that are tentatively playing around the edges but there has not yet been anything that s really unlocked that basin But it didn t cost Cub much to enter the basin and the Turkey play provides shareholders with potential future value which they don t pay for at Cub s current share price TER Your research report noted that Ukraine s gas production was quite high in the 1960s but then fell off because the Soviet Union just quit investing in it Is there a reason to think that it might reach those heights again CB Well we re not sure if it will achieve those heights but Cub s success to date indicates it has potential The issue we re dealing with right now is that dominates the systems for gas production in the region It does not want significant competition On the flip side Ukraine is motivated to service its domestic needs with domestic gas rather than paying high prices from Gazprom History has proven Ukraine has access to significant volume That s why Cub is in this country It believes it can unlock more value TER Have the fields that Ukraine was producing back in the 1960s been completely exhausted or are they still useable CB They re still useable But Cub has tried to avoid moving into government operated situations In most cases Cub wanted to have independent operations But I feel as a reservoir engineer there is still incremental opportunity to exploit if the operators of the larger fields were motivated to bring in new technology I think they re probably monitoring Cub s behavior right now to see what technologies are most applicable and then we will start to see that mimicking effect likely four or five years down the road as others start to adopt that newer technology once it s proven to be successful TER Many of Cub s licenses in Turkey are near the Syrian border Are these licenses exposed to political risk CB There s never a guarantee that some disruptions won t occur but Turkey does have a very strong military force I think that if there were any temporary disruptions or terrorist activities it would be on a small scale It s something that we ve almost grown used to internationally with our operations in numerous jurisdictions that we monitor and provide investment research on We often deal with these disruptions with production and they tend to only be three to five day disruptions on pipeline repairs and things like that at most nothing that carries on for multiple years TER Several plans for major takeaway pipelines crossing Turkey such as the Nabucco pipeline and the Trans Anatolian folded in July Is there a takeaway route for the gas produced in Turkey now CB Right now in Turkey there are multiple opportunities to service even domestic requirements where you can do industrial sales with competitive contracts using international pricing I m confident that just on a domestic basis Cub would find a home for the gas but Cub would have the ability to export if its volumes reach a decent amount TER If Ukraine s talks with the International Monetary Fund fail you expect the country to devalue its currency and possibly tax foreign exchange transactions and deposits How would that affect Cub Energy Kimberly Thompson We don t expect it to have a major impact because although Cub s gas prices are in hryvnia the local currency they re tied to Russian import prices denominated in U S dollars Basically a lower hryvnia would be offset by higher local prices In terms of the tax situation Cub mitigates its risks by having its funds flow through Cyprus through its subsidiary KUBGas Holdings Cub doesn t see this as a risk TER Cub Energy s stock price has trended down for most of the last year but appears to have turned upward What s driving that CB Well the dominant force has been management s commitment to the company They have taken it upon themselves to buy back the shares but they are buying them back with their own dollars they re not using shareholder money Through its ownership in a separate private holding company Pelicourt Ltd management holds a major position in Cub Energy and recently it decided to put in additional dollars to show confidence in the future of Cub As of its last statement in October 2013 it owns 39 54 of the shares outstanding That s provided a decent amount of market support TER is entertaining the 20 share offer from a private equity fund in Hong Kong Is that happening now CB I don t think it s going to go through Coastal Energy s prospects combined with the reserve base of 20 21 share and its prospect inventory of over 500 million barrels 500 MMbbl of future opportunities and resources I think that 20 is quite a bit under what management would accept to put forward to the public for a takeover I think we won t hear anything more about this in the near future TER What do you consider to be a reasonable offer price CB We currently have a target price on Coastal of 23 share We ve accounted for 20 21 of base value for the company and we ve actually given them a couple of dollars of credit for future risked resource opportunity upside So 23 would be the minimum offer an international company should make for Coastal at least to get its attention to move forward and have it open a data room for more technical review I think if you really want to provide incentive for shareholders to hand over their shares any offer would likely have to be north of 23 share TER What is Coastal Energy s long term goal sale or growth CB I think ultimately it s going to be put up for sale as a long term strategy but in the meantime it wants to improve the value to make sure it captures a higher premium per share I don t think that an international company is going to see enough evidence to give it a premium until 2014 The reason I say that is that Coastal has a number of near term production growth opportunities We re going to see the current production go from 22 000 23 000 barrels of oil equivalent per day 23 000 boe d to upwards of 30 000 boe d I think once Coastal has shown the ability to grow production it will probably be in a much better position to show other technical groups that it s worth far more than 20 share TER Cub is relying pretty heavily on hydraulic fracturing Is Coastal doing the same CB Yes Coastal s offshore Thailand reservoirs have an acceptable permeability that allows the company to produce just with conventional completions Coastal has gone back and done some recompletions with fracks and it has been able to tap into incremental reserve opportunities Coastal going forward is in the same stage as Cub in terms of using new technology to unlock incremental reserves for shareholders TER Why are you recommending a buy for Coastal and Cub CB The buy is driven by the disconnect the market currently has on these companies that receive solid pricing internationally Cub receives great gas prices in the Ukraine Coastal receives very strong pricing for its oil in offshore Thailand Combined with acceptable balance sheets good cash flow and a discount to proven and profitable reserves and given the discoveries both companies have made over the past year we see their reserve bases continuing to grow We feel that eventually shareholders will begin to bridge that gap between the discount to reserves and the reserve values We re going to maintain that strong buy recommendation on these companies until we see that value gap bridged TER What is the current price for Cub and your target for Cub CB Cub is trading at around 0 25 a share and we have a target price of 0 70 per share for Cub TER What other companies in your portfolio are you excited about CB There are two others that we talk about quite often with our international investment community One is listed in London This is a fascinating company because it is operating in Chad so if you re talking about political risk that tends to be one that raises red flags when you discuss this with investors The company is just bringing on production right now Last month it was not in production It is literally ramping up to 35 000 barrels a day 35 000 bbl d within the next six months It s another company that trades at a reasonable discount on the market We have a buy recommendation and a 9 20 target price It currently trades at around 5 This is another situation of a discount to reserve Even to date the company s exploration success has already added incremental reserves so that 2P reserve number should to continue to grow That has been one name we ve been talking about quite actively TER What is the other company CB This is another one that is a mix of conventional operations in Colombia but for us the excitement is really on the unconventional shales the company is pursuing in Colombia The company is partnered with Exxon ConocoPhillips COP NYSE and and it s a situation where again you have a junior producer that amassed a decent land position on an unconventional play and then invited the majors to drill an initial grouping of up to 13 15 wellbores Again I like to focus on these unconventional opportunities because I think the market will eventually come around to how much upside is associated with them similar to what we have seen in the U S over the past five years The U S is ahead of the curve on the unconventional development and the investor base understands U S unconventional I think internationally people are just starting to understand how large the unconventional space could be We have a buy recommendation with a target price of 7 50 and it currently trades at 4 50 TER Do you have parting thoughts to share on the oil and gas space CB Now that the U S performance has been exceptional this year and the multiples are starting to get relatively high for a number of investments in the U S we see institutions starting to express interest in learning more both on the domestic Canadian side which still trades on discount and more important on the international side which trades at even more of a discount to reserve base We re hoping that this will continue through until year end and perhaps provide investors with some excitement going into 2014 TER Christopher and Kimberly thank you both very much for your time This has been an enlightening discussion CB Excellent I ve enjoyed it KT Thank you very much for having us serves as director research international oil and gas at Canaccord Genuity and has provided international analytical coverage since 2006 Previously Christopher worked as the international oil and gas analyst for BMO Capital Markets Brown s industry experience includes reservoir engineering work at various large cap oil and gas companies Prior to that he was employed at an international M A firm with mandates out of London Brown holds a Bachelor of Science in chemical engineering is a research associate with Canaccord Genuity With ten years of finance and accounting experience she conducts analysis evaluation and synthesis of investment opportunities in the international oil and gas space Kimberly holds a Bachelor of Commerce from the University of Saskatchewan and is a Certified Management Accountant Want to read more Energy Report interviews like this for our free e newsletter and you ll learn when new articles have been published To see a list of recent interviews with industry analysts and commentators visit our page DISCLOSURE 1 Tom Armistead conducted this interview for The Energy Report and provides services to The Energy Report as an independent contractor He or his family owns shares of the following companies mentioned in this interview None 2 The following companies mentioned in the interview are sponsors of The Energy Report Royal Dutch Shell Plc Streetwise Reports does not accept stock in exchange for its services or as sponsorship payment 3 Christopher Brown I or my family own shares of the following companies mentioned in this interview None I personally am or my family is paid by the following companies mentioned in this interview None My company has a financial relationship with the following companies mentioned in this interview Canacol Energy Caracal Energy and Cub Energy I was not paid by Streetwise Reports for participating in this interview Comments and opinions expressed are my own comments and opinions I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview 4 Kimberly Thompson I or my family own shares of the following companies mentioned in this interview None I personally am or my family is paid by the following companies mentioned in this interview None My company has a financial relationship with the following companies mentioned in this interview Canacol Energy Caracal Energy and Cub Energy I was not paid by Streetwise Reports for participating in this interview Comments and opinions expressed are my own comments and opinions I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview 5 Interviews are edited for clarity Streetwise Reports does not make editorial comments or change experts statements without their consent 6 The interview does not constitute investment advice Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility By opening this page each reader accepts and agrees to Streetwise Reports terms of use and full legal 7 From time to time Streetwise Reports LLC and its directors officers employees or members of their families as well as persons interviewed for articles and interviews on the site may have a long or short position in securities mentioned and may make purchases and or sales of those securities in the open market or otherwise |
XOM | Canadian Overseas Petroleum | The appliance of scienceCanadian Overseas Petroleum COPL is a junior E P company with principal focus offshore Liberia COPL has brought in a strong working partner and operator in the shape of ExxonMobil XOM where playopening exploration success in early 2014 could unlock substantial value for shareholders COPL is also planning entry into Nigeria by acquiring producing development assets to lower its wider portfolio exploration risk Based on current Liberia drill activity our RENAV value of C 0 36 share implies 44 upside However taking into consideration the play opening potential of its Liberia block we anticipate a risked M A valuation of C 1 60 share in the event of exploration success Unlocking LiberiaCOPL s entry into Liberia was finalised in May 2013 with the company now holding a 17 stake in LB 13 in exchange for a C 120m gross carry that should see it drill two wells including one sidetrack Encouragingly partner Exxon aware of the fact that additional detailed seismic work has been completed by COPL to further delineate prospects has already farmed into Block LB 13 offshore Liberia In view of that work we expect upside to existing CPR prospective resource estimates that currently sit at 2 6bnboe gross The presence of Exxon gives a strong endorsement for the exploration acreage and provides financial backing technical expertise and scope to open up a new frontier basin in the event of exploration success Nigerian acquisitionsCOPL is looking to increase its African exposure through entry in Nigeria via producing and or development assets This would lower specific portfolio exploration risk in COPL and may provide a useful source of income COPL also has existing unconventional assets in New Zealand where drilling is not planned until 2015 Valuation Exploration success keyOur DCF methodology results in a RENAV of C 0 36 share which implies 44 upside however this is restricted to initial drill targets COPL investors may ascribe value to the potential play opening economics of Liberia although in the event of exploration success we consider there is still substantial upside with M A metrics suggesting a valuation of C 1 60 share Getting to a drill ready position has not been easy for COPL having farmed out 83 of LB 13 although the terms of the deal are still above African industry metrics To Read the Entire Report Please Click on the pdf File Below |
XOM | ExxonMobil With Patience A Solid Investment | Back in July I wrote ExxonMobil is Cruising Higher as the stock making a new high I noted that it could take some time to get through the 96 level and as it turns out that sellers took advantage of the pop and ExxonMobil XOM fell back to its support area at 84 Roll the calendar forward 4 months and ExxonMobil is back knocking on the door of new highs The chart below shows it has been tracing out a bearish Shark Harmonic pattern with a Potential Reversal Zone PRZ 1 at94 21 and PRZ 2 at 96 65 The current consolidation under 93 25 in an ascending triangle targets 99 on a break higher And the RSI and MACD are supportive of a move higher Back in July I noted that it takes some time to turn an aircraft carrier and this is one If you have the patience it still looks like a good longer term stock and pays a 2 80 dividend to ease some of the waiting If not consider the December 95 Calls offered at 60 cents as of this writing Disclosure The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment I or my affiliates may hold positions or other interests in securities mentioned in the Blog please see my page for my full disclaimer |
XOM | STTG Market Recap S P 500 Gained 0 42 | The market finished off the week in fine fashion as S P 1800 is just ahead of us While only a round number sometimes these numbers have a way of marking a short term top but right now the market is in freight train mode so until we see evidence to the contrary we will assume it won t be The S P 500 gained 0 42 and the NASDAQ 0 33 Industrial production unexpectedly fell 0 1 in October which was worse than the 0 2 increase expected by economists however this data point was most likely affected by the government shutdown to a degree Both the S P 500 and NASDAQ are on day 3 of a rally on top of a rally i e there wasn t really much of a correction between this rally and the one of October just a consolidation over time Oil giant Exxon Mobil XOM was in the news after Warren Buffet s Berkshire Hathaway reported holding a roughly 3 7 billion stake in the company We haven t spent a lot of time looking at commodities lately since most have weak charts but it is interesting to see equities rally so well with commodities acting quite poorly Usually items like copper and oil will rally with a stronger economy and that is usually a positive for equities But we are in a strange era now where very modest economic growth is preferred by market participants as it means the Federal Reserve remains heavily involved And precious metals continue to act poorly after a short term rally late in the summer Have a good weekend and we ll see you back here next week |
XOM | Buffett Sees Value in Oil Invests In Exxon Mobil | According to Berkshire Hathaway Inc s BRK A BRK B most recent 13F filing Warren Buffett s company has made a 3 7 billion investment in the world s largest publicly traded oil company Exxon Mobil Corporation XOM Buffett is well known for cherry picking investments and considers Exxon Mobil as a phenomenal investment opportunity It is one of the most efficient integrated oil explorers given its track record of superior return on invested capital It has also maintained the trend of continual dividend increase for the past 31 years Exxon Mobil s third quarter performance reflects continued progress across a diverse set of profitable growth opportunities positioning it well to deliver shareholder value The company expects production to grow 2 3 per year during the 2013 17 period Planned capex of around 185 billion over the next five years excellent financial health with an AAA credit profile and diversified operations across the globe with several new projects expected to come online through 2013 posit Exxon Mobil as a value investment This wager by Buffett also comes across as a vote of confidence for the oil and gas sector Demand for energy is expected to grow Macro trends such as a better than anticipated October jobs report positive data about China s trade better than expected third quarter GDP growth rate sector all pointed towards higher demand trajectory The Energy Information Administration EIA in its most recent Short Term Energy Outlook stated that it expects global oil demand to increase 1 1 million barrels per day in 2013 and a further 1 2 million barrels per day in 2014 Buffett however reduced his holding in another oil major ConocoPhillips COP to 13 5 million shares at the end of September from 24 2 million shares in June This investment came at a time when oil and gas prices were nearly peaking and thus the move failed to produce adequate returns Other portfolio changes include the addition of 0 2 million shares of Suncor Energy Inc SU and 0 8 million shares of U S Bancorp USB Buffett shed 1 15 million shares of GlaxoSmithKline plc GSK which has been accused of bribery in China and is also facing patent expiration of its niche drug Advair The portfolio also cut bets on Sanofi by 0 2 million shares Berkshire Hathaway and Exxon Mobil both currently retain a Zacks Rank 3 Hold |
TEVA | Israel stocks lower at close of trade TA 25 down 0 55 | Investing com Israel stocks were lower after the close on Tuesday as losses in the Banking Biomed and Oil Gas sectors led shares lower
At the close in Tel Aviv the TA 25 fell 0 55 to hit a new 3 months low
The best performers of the session on the TA 25 were Teva TA TEVA which rose 2 43 or 390 points to trade at 16460 at the close Meanwhile Nice Ltd TA NICE added 0 51 or 130 points to end at 25600 and Ormat Technologies TA ORA was up 0 44 or 80 points to 18450 in late trade
The worst performers of the session were Melisron TA MLSR which fell 1 91 or 310 points to trade at 15960 at the close Gazit Globe TA GZT declined 1 73 or 60 points to end at 3400 and Israel Corp TA ILCO was down 1 66 or 950 points to 56250
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 210 to 120 and 114 ended unchanged
Crude oil for December delivery was up 0 04 or 0 02 to 46 88 a barrel Elsewhere in commodities trading Brent oil for delivery in January rose 0 19 or 0 09 to hit 48 70 a barrel while the December Gold contract rose 1 17 or 14 90 to trade at 1288 00 a troy ounce
USD ILS was down 0 41 to 3 8130 while EUR ILS rose 0 08 to 4 2104
The US Dollar Index was down 0 44 at 97 89 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 09 | Investing com Israel stocks were lower after the close on Thursday as losses in the Biomed Technology and Oil Gas sectors led shares lower
At the close in Tel Aviv the TA 25 lost 0 09 to hit a new 3 months low
The best performers of the session on the TA 25 were Israel Corp TA ILCO which rose 2 16 or 1200 points to trade at 56810 at the close Meanwhile Mizrahi Tefahot TA MZTF added 1 49 or 73 points to end at 4973 and Paz Oil TA PZOL was up 1 31 or 780 points to 60120 in late trade
The worst performers of the session were Teva TA TEVA which fell 2 61 or 430 points to trade at 16040 at the close Elbit Systems TA ESLT declined 1 17 or 430 points to end at 36260 and Frutarom TA FRUT was down 0 96 or 190 points to 19680
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 190 to 163 and 91 ended unchanged
Shares in Teva TA TEVA fell to 52 week lows down 2 61 or 430 to 16040
Crude oil for December delivery was down 0 68 or 0 31 to 45 03 a barrel Elsewhere in commodities trading Brent oil for delivery in January fell 0 28 or 0 13 to hit 46 73 a barrel while the December Gold contract fell 0 66 or 8 65 to trade at 1299 55 a troy ounce
USD ILS was down 0 06 to 3 8127 while EUR ILS fell 0 06 to 4 2302
The US Dollar Index was down 0 12 at 97 27 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 53 | Investing com Israel stocks were higher after the close on Sunday as gains in the Communication Oil Gas and Banking sectors led shares higher
At the close in Tel Aviv the TA 25 rose 0 53
The best performers of the session on the TA 25 were OPKO Health Inc TA OPK which rose 4 24 or 153 points to trade at 3764 at the close Meanwhile Israel Corp TA ILCO added 3 68 or 2090 points to end at 58900 and Delek Drilling LP TA DEDRp was up 2 68 or 35 points to 1342 in late trade
The worst performers of the session were Teva TA TEVA which fell 4 43 or 710 points to trade at 15330 at the close Perrigo TA PRGO declined 0 87 or 280 points to end at 31780 and Mizrahi Tefahot TA MZTF was up 0 42 or 21 points to 4973
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 172 to 165 and 107 ended unchanged
Shares in Teva TA TEVA fell to 52 week lows falling 4 43 or 710 to 15330 Shares in Perrigo TA PRGO fell to 5 year lows down 0 87 or 280 to 31780
Crude oil for December delivery was down 1 23 or 0 55 to 44 11 a barrel Elsewhere in commodities trading Brent oil for delivery in January fell 1 70 or 0 79 to hit 45 56 a barrel while the December Gold contract rose 0 19 or 2 50 to trade at 1305 80 a troy ounce
USD ILS was down 0 58 to 3 7900 while EUR ILS fell 0 10 to 4 2290
The US Dollar Index was down 0 26 at 96 94 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 88 | Investing com Israel stocks were lower after the close on Tuesday as losses in the Communication Biomed and Insurance sectors led shares lower
At the close in Tel Aviv the TA 25 fell 0 88
The best performers of the session on the TA 25 were Israel Corp TA ILCO which rose 1 66 or 980 points to trade at 59900 at the close Meanwhile Nice Ltd TA NICE added 1 58 or 400 points to end at 25790 and ICL Israel Chemicals Ltd TA ICL was up 1 56 or 22 points to 1430 in late trade
The worst performers of the session were OPKO Health Inc TA OPK which fell 6 61 or 249 points to trade at 3520 at the close Teva TA TEVA declined 4 58 or 710 points to end at 14790 and Perrigo TA PRGO was down 3 49 or 1110 points to 30740
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 206 to 128 and 110 ended unchanged
Shares in Teva TA TEVA fell to 52 week lows losing 4 58 or 710 to 14790 Shares in Perrigo TA PRGO fell to 5 year lows falling 3 49 or 1110 to 30740
Crude oil for December delivery was up 0 47 or 0 21 to 45 10 a barrel Elsewhere in commodities trading Brent oil for delivery in January rose 0 22 or 0 10 to hit 46 25 a barrel while the December Gold contract rose 0 44 or 5 65 to trade at 1285 05 a troy ounce
USD ILS was down 0 32 to 3 7994 while EUR ILS fell 0 23 to 4 1985
The US Dollar Index was down 0 06 at 97 72 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 45 | Investing com Israel stocks were higher after the close on Thursday as gains in the Biomed Insurance and Technology sectors led shares higher
At the close in Tel Aviv the TA 25 added 0 45
The best performers of the session on the TA 25 were Perrigo TA PRGO which rose 8 57 or 2670 points to trade at 33820 at the close Meanwhile Teva TA TEVA added 2 98 or 460 points to end at 15920 and Nice Ltd TA NICE was up 1 46 or 380 points to 26480 in late trade
The worst performers of the session were Gazit Globe TA GZT which fell 3 91 or 134 points to trade at 3296 at the close Azrieli Group TA AZRG declined 3 33 or 540 points to end at 15700 and Melisron TA MLSR was down 3 30 or 540 points to 15820
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 179 to 165 and 100 ended unchanged
Shares in Nice Ltd TA NICE rose to all time highs gaining 1 46 or 380 to 26480
Crude oil for December delivery was down 1 13 or 0 51 to 44 76 a barrel Elsewhere in commodities trading Brent oil for delivery in January fell 0 84 or 0 39 to hit 45 97 a barrel while the December Gold contract fell 0 29 or 3 75 to trade at 1269 75 a troy ounce
USD ILS was up 0 50 to 3 8372 while EUR ILS rose 0 18 to 4 1753
The US Dollar Index was up 0 26 at 98 92 |
TEVA | Teva Q3 top line up 15 non GAAP earnings up 17 cash flow up 34 lower guidance pressures shares down 2 premarket | Teva Pharmaceutical Industries NASDAQ TEVA Q3 results M Total Revenues 5 563 15 3 Generic Medicines 2 904 31 9 Specialty Medicines 2 048 7 3 Key Segment Product Sales CNS 1 302 4 7 Copaxone 1 061 2 2 Respiratory 270 5 3 ProAir 118 20 8 Oncology 269 17 5 Treanda and Bendeka 149 28 0 Net Income 412 300 0 Non GAAP Net Income 1 364 17 1 EPS 0 35 191 7 Non GAAP EPS 1 31 3 0 Cash Flow Ops 1 461 33 7 Consensus view was EPS of 1 28 on revenues of 5 7B 2016 Guidance Revenues 21 6B 21 9B from 22 0 22 5B Non GAAP EPS 5 10 5 20 from 5 20 5 40 Cash Flow Ops 4 8B 5 0B Q4 Guidance Revenues 6 2B 6 5B Non GAAP EPS 1 34 1 44 Cash Flow Ops 1 0B 1 2B Shares are down 2 premarket on average volume |
TEVA | Israel stocks higher at close of trade TA 25 up 0 14 | Investing com Israel stocks were higher after the close on Tuesday as gains in the Real Estate Technology and Communication sectors led shares higher
At the close in Tel Aviv the TA 25 added 0 14
The best performers of the session on the TA 25 were OPKO Health Inc TA OPK which rose 8 95 or 327 points to trade at 3980 at the close Meanwhile Gazit Globe TA GZT added 6 89 or 224 points to end at 3474 and Frutarom TA FRUT was up 3 44 or 680 points to 20450 in late trade
The worst performers of the session were Teva TA TEVA which fell 4 58 or 720 points to trade at 14990 at the close Perrigo TA PRGO declined 3 74 or 1310 points to end at 33710 and Nice Ltd TA NICE was down 0 84 or 210 points to 24900
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 181 to 173 and 89 ended unchanged
Crude oil for December delivery was up 3 97 or 1 72 to 45 04 a barrel Elsewhere in commodities trading Brent oil for delivery in January rose 3 58 or 1 59 to hit 46 02 a barrel while the December Gold contract rose 0 14 or 1 75 to trade at 1223 45 a troy ounce
USD ILS was down 0 25 to 3 8417 while EUR ILS fell 0 15 to 4 1223
The US Dollar Index was up 0 19 at 100 22 |
XOM | Denton May Become First Texas City To Ban Fracking | By Even Texans are hotly debating fracking
Fed up with what it claimed were serious health related issues among the community s children the Denton Drilling Awareness Group a grass roots group in a town of the same name has managed to get the state s first referendum on whether to ban further permitting of the controversial oil drilling practice within city limits
Parents there had to keep their kids indoors for weeks because the toxic fumes were so overwhelming according to Adam Briggle vice president of the community group that organized a petition to push a vote on the ban Children got nosebleeds breathing problems and headaches we can either have fracking or we can have a safe and healthy city
After listening to hours of community testimony late into the evening the city council of the North Texas college town voted early Wednesday to allow a public vote in November to determine whether Denton will become the first city in Texas to ban fracking
What you re seeing is in Denton folks who otherwise are completely supportive of the oil and gas industry all the sudden when it s happening to their neighbor are turning around Kevin Roden the councilman who called for the ban and who has lived in Denton for 24 years said I think there s a reasonable way to develop these minerals I don t think the majority of the people who signed the petition are anti fossil fuel
The council could have immediately adopted the ban but instead voted 5 2 against that option According to the Denton Record Chronicle of the 500 people who attended the meeting 155 filled out comment cards favoring the ban and 46 filled out cards opposing the ban
Brad Davis who lives in a ranch house in northwest Denton where most of the fracking occurs says he can see and hear the drilling from his back porch kind of a soft hum and bright lights at night
It s not nearly as loud as the train he said If you didn t know what it was you might not notice
A ban in the community which ranges from rural pastures to multistory apartment complexes and sits atop the natural gas rich Barnett Shale will be closely watched At least 423 local governments nationwide have passed measures that ban or restrict fracking the vast majority in the northeast but only four in Texas according to Food and Water Watch
However even if Denton residents vote to ban fracking state authorities would likely claim that the mineral rights on properties cannot be taken away from the landowners
Other measures to restrict fracking in Texas fall short of the proposed Denton limits A measure passed in June 2010 in Flower Mound Texas requires oil and gas companies fracking in the city to disclose the chemicals it mixes with water and sand pumped underground Bartonville a wealthy community outside Dallas and where Exxon Mobil Corporation NYSE XOM CEO Rex Tillerson has lived for years tried to deny a fracking permit but was forced by the state to issue it in 2012 the Wall Street Journal reported
A series of amendments Denton passed in 2013 prohibits drilling from closer than 1 200 feet from homes parks schools and anywhere else people especially children may gather But state laws allow companies in the city to operate wells based on the rules that existed at the time they first received permits for them some as early as 2002 What s more a rising population encouraged some residential developments to expand their fences up to old wells that were dormant until new drilling technologies like fracking and changing natural gas prices made them profitable again
That s what s been highly problematic Roden said Texas law isn t helping out so citizens are taking measures in their own hands
After New York s Supreme Court ruling in late June that upheld dozens of city imposed bans on fracking Andrew Weissman senior energy advisor for Haynes and Boone LLP said the measure is likely to encourage similar efforts in other states but not likely to be successful in states like Texas where significant oil and gas development is occurring
That is evident from this map of the nationwide anti fracking movement by Food and Water Watch which shows fracking measures heavily concentrated in the northern part of the Marcellus Shale in the northeast but not in most of the country with large shale deposits and booming oil industries like Texas and North Dakota
The drilling simply goes elsewhere Tom Gellrich Philadelphia based oil and gas analyst at Topline Analytics added |
XOM | New U S sanctions hit top Russian firms Kiev says Russia shoots down its jet | By Steve Holland and Elizabeth Piper WASHINGTON MOSCOW Reuters President Barack Obama imposed sanctions on some of Russia s biggest firms for the first time striking at the heart of Vladimir Putin s powerbase by targeting companies closest to him over Moscow s failure to curb violence in Ukraine In the latest escalation of the conflict on the Ukrainian Russian frontier Kiev said a Russian jet had shot down one of its warplanes its strongest accusation yet of direct Russian military involvement in the war A Ukrainian military spokesman said the pilot of the SU 25 fighter ejected to safety After months of measures that hit only individuals and smaller firms Washington imposed sanctions on Russia s largest oil producer Rosneft MM ROSN its second largest gas producer Novatek and its third largest bank Gazprombank The firms are run by Putin allies who have become wealthy during his tenure Moscow denounced what it called primitive revenge for events in Ukraine and pledged to retaliate Putin said the U S sanctions would hurt U S energy companies and bring relations to a dead end His prime minister Dmitry Medvedev called the sanctions evil said they would not bring anyone to their knees and that Russia would pay attention to defense spending The sanctions in effect close the firms to medium and long term dollar funding Other targets include Vnesheconombank VEB which acts as payment agent for the government and eight arms firms including the producer of the Kalashnikov assault rifle However Washington stopped short of freezing the companies assets closing off the short term funding they need for day to day operations or stopping U S firms doing business with them Several were quick to say it was business as usual Russia s rouble traded stock market and the rouble itself fell on opening but did not collapse After stabilizing Rosneft MM ROSN was down around 4 5 percent and Novatek MM NVTK 7 5 percent The MICEX index was off 2 6 percent There was no suggestion of disruption to production by Rosneft by output the world s biggest oil company listed on a stock exchange which singlehandedly produces 4 percent of the world s oil more than any OPEC country apart from Saudi Arabia An actual disruption to such a huge producer could in theory cause a global energy crisis but there was no sign of one on Thursday with oil prices only fractionally higher EU SANCTIONS The measures mean that Washington has moved far further to punish Russia than its EU allies who collectively do 10 times as much trade with Russia as the United States and depend on Moscow for natural gas Nevertheless the European Union also said it was imposing new sanctions and would draw up a list of targets by the end of the month It will block new loans to Russia through two development banks Moscow said the EU had succumbed to the blackmail of the U S administration to follow Washington in imposing sanctions Some Russian officials predicted Brussels would baulk at the cost of the U S measures But Ukraine s Prime Minister Arseny Yatseniuk said the simultaneous action by Washington and Brussels showed that Western countries were united in their support for Ukraine All attempts by Russia to split the European Union and to stop the European Union and United States from agreeing were doomed to failure he told his government in a cabinet meeting Russia must stop supplying weapons to Ukraine s rebels and any attempt to take Ukraine would fail he said The sanctions show a new willingness to act by Western countries over a crisis that has escalated in recent weeks Hundreds of people have died in fighting between Ukrainian troops and heavily armed pro Russian separatists who have declared independent People s Republics in two provinces Moscow denies supporting the rebellion but many of the separatist fighters and their main leaders are from Russia Kiev says they have been bringing heavy weapons across the border The downing of the SU 25 fighter which Kiev said on Thursday had taken place on Wednesday evening was the first time Ukraine has unconditionally accused Moscow of using its air power in the war On Monday a Ukrainian transport plane was shot down by what Kiev said was a missile fired from Russia but it could not say if it was fired from the air or the ground Putin who annexed Ukraine s Crimea peninsula in March and has referred to southern and eastern Ukraine as new Russia had appeared keen in recent weeks to tamp down the worst confrontation with the West since the Cold War pulling back tens of thousands of troops from the frontier But in recent days Washington and Brussels say he has again sent some 12 000 troops to the frontier while keeping the border open to allow rebel fighters and arms to cross Ukraine drove rebels out of their main bastion in the town of Slaviansk this month but hundreds of them have decamped to Donetsk a city of nearly a million people which has been emptying as thousands of residents flee an expected battle EUROPE ON BOARD Obama warned of more sanctions if Russia did not take concrete steps to ease the conflict and said Putin had so far failed to take steps needed to resolve the crisis peacefully We have emphasized our preference to resolve this issue diplomatically but that we have to see concrete actions and not just words that Russia in fact is committed to trying to end this conflict along the Russia Ukraine border he said The limits on the sanctions show how difficult it can be for Western countries to punish Moscow without causing global economic havoc Russia is the world s largest oil producer and after the United States second largest producer of natural gas The latest measures appear designed to restrict the firms access to investment capital while avoiding any disruption to energy output Notably Russia s biggest company gas export monopoly Gazprom MM GAZP which supplies around a third of Europe s gas was not included on the sanctions list Still sanctions can have a strong indirect effect on Russia s economy by forcing companies to reconsider investments there because of future risk Previous rounds of U S and EU sanctions that targeted only a few dozen individuals and firms helped encourage billions of dollars in capital flight that hurt Russia s shaky economy Rosneft which under Putin absorbed the assets of a raft of oil companies that were privatized in the 1990s is the only Russian firm that rivals Gazprom in scale It had sales of 40 billion in the first quarter about 8 6 percent of Russia s GDP Its boss Igor Sechin Putin s close friend since the 1990s has moved aggressively to win the company a bigger global profile It supplies virtually every major international oil company and has joint projects with many of them In particular it accounts for around a quarter of production for BP L BP which owns 20 percent of it It is also in the midst of a deal to buy the oil trading assets of U S investment bank Morgan Stanley N MS and has several big oil projects in Russia with Exxon Mobil N XOM Sechin traveling with Putin in Brazil said the sanctions were unjustified subjective and unlawful because the company has no role in the Ukraine crisis Novatek was not available for comment VEB declined to comment Gazprombank said the stability of its operations and finances were not affected BP said the sanctions appear on first glance to focus on restricting access of targeted firms to medium and long term U S financing
For more details on the sanctions see Additional reporting by Richard Balmforth and Natalia Zinets in Kiev Jeff Mason Patricia Zengerle and Phil Stewart in Washington Adrian Croft in Brussels and Josephine Mason Edward McAllister and Jonathan Leff in New York and by Katya Golubkova and Polina Devitt in Moscow writing by Peter Graff editing by Philippa Fletcher |
XOM | Russia s Rosneft says to honor agreements despite sanctions | MOSCOW Reuters Russia s top oil producer Rosneft said on Friday it would continue to work on its existing projects and agreements and honor its obligations despite U S sanctions on the company over Moscow s role in the Ukraine crisis
The company in which BP holds a 19 75 percent stake also said it has sufficient liquidity to service its debts and its financial position allows it to deliver on the key indicators of its strategy and dividend policy
The company is currently in the process of a legal review of the announced sanctions and is consulting its international partners Rosneft said in a statement
Reporting by Vladimir Soldatkin |
XOM | Exclusive Exxon eyes expanding Texas refinery into biggest in U S sources | By Erwin Seba HOUSTON Reuters Exxon Mobil Corp is considering a multibillion dollar plan to expand its Beaumont Texas refinery into the country s largest the first major refining investment of the U S shale oil boom people with knowledge of the deliberations said
The expansion of the 344 600 barrel per day bpd Beaumont refinery if carried out would be completed by 2020 and potentially double its size with the addition of a third crude distillation unit CDU the sources said More modest near term projects to renew and expand so called coking units to help refine more heavy crude already are under way they said
If Exxon presses ahead the investment would be a further indication that the American oil giant is breaking ranks with many of its big global rivals who have been looking to sell off refining assets across the world Just weeks ago Exxon unveiled a 1 billion investment in its Antwerp plant
An Exxon spokesman while declining to discuss possible plans for the Beaumont refinery said the company was always evaluating growth options
We regularly evaluate our global portfolio of businesses and opportunities for growth depending upon the fit with its strategic business objectives Exxon spokesman Todd Spitler said We take a disciplined long term approach to investing regardless of the economic cycle
A bigger Beaumont would bolster the U S Gulf Coast s position as a top global supplier of gasoline and diesel at a time when domestic demand is falling Profits for Gulf Coast refiners have swollen as cheaper North American crude allows them to capture big margins when exporting refined products
U S oil production has embarked on an unprecedented 50 percent rise over the past four years as new drilling techniques allowed oil to flow from vast shale reserves in North Dakota and Texas this after two decades of seemingly irreversible decline
The sources said Exxon already was moving forward on plans to replace four coking unit drums in 2015 and add two new coker drums in 2017 at the Beaumont refinery The drums turn residual crude oil into petroleum coke a coal substitute
Exxon announced plans on July 2 to invest 1 billion to build a delayed coking unit at its 320 000 bpd Antwerp Belgium refinery so the plant could refine cheaper high density high sulfur crude oils That was on top of a previous 1 billion in upgrades to the Antwerp refinery
Exxon s Antwerp investments in some ways bucked a trend in recent years that has seen major integrated oil companies cut refining capacity with BP selling plants in Texas and California and Royal Dutch Shell shutting a refinery in Australia
THIRD CDU
The Beaumont refinery has two CDUs that do the initial refining of crude oil coming into the refinery and provide feedstock for all other units
Exxon officials are considering boosting the Beaumont refinery s size to at least 500 000 bpd which is close to the capacity of the company s Baton Rouge Louisiana refinery
The country s biggest refinery is Motiva Enterprises LLC s MOTIV UL 600 250 bpd Port Arthur Texas plant Exxon is considering making the Beaumont plant bigger than Motiva s Port Arthur refinery
They ve talked between 700 000 and 800 000 bpd in total refinery capacity one of the sources said
Andy Lipow president of Lipow Oil Associates LLC a Houston consultancy said an Exxon expansion could boost profits
Given the increase in North American oil production and in conjunction with the low operating cost due to the price of natural gas it seems increasing the capacity of oil refining facilities makes a lot of sense Lipow said
Beaumont Mayor Becky Ames said she had not been informed of any plans by Exxon to expand the Beaumont refinery
But she said the expansion would lead to more direct and indirect jobs for the area which she said benefits from regional oil refining and petrochemical plants
When they do an expansion anywhere in the area it not only means more jobs from the work itself but it creates spin off businesses in the community Ames said
The two other most recent major expansions of Gulf Coast refining capacity at Motiva s Port Arthur refinery and Marathon Petroleum Corp s Garyville Louisiana plant were planned before the sudden rise in shale output started about seven years ago
Motiva a joint venture between Shell and Saudi Aramco SDABO UL invested 10 billion to expand its Port Arthur refinery from 285 000 bpd In addition to a 325 000 bpd CDU the project added multiple units and was completed in 2012
Marathon invested 3 9 billion to boost its Garyville Louisiana refinery from 256 000 bpd to 436 000 bpd in 2009 The refinery has optimized performance of its units to increase production to 522 000 bpd
Reporting by Erwin Seba Editing by Terry Wade Jan Paschal and Howard Goller |
XOM | Exxon Mobil reports Q2 EPS of 2 05 beats on revenue | Investing com The world s largest oil and gas company Exxon Mobil reported better than expected second quarter earnings and revenue figures ahead of Thursday s opening bell
Exxon said earnings per share came in at 2 05 in the second quarter above expectations for earnings of 1 86 per share
The company s second quarter revenue totaled 111 64 billion beating forecasts for revenue of 108 38 billion
Exxon Mobil Chairman Rex W Tillerson commented ExxonMobil s financial results were achieved through strong operational performance and portfolio management We continue to enhance shareholder value by funding capital projects and delivering robust shareholder returns through dividends and share purchases
Following the release of the report Exxon Mobil NYSE XOM shares fell 1 2 in pre market trade
Meanwhile U S equity markets pointed to a lower open The Dow indicated a loss of 0 5 the S P 500 pointed to a decline of 0 5 while the Nasdaq 100 indicated a drop of 0 6 |
XOM | Higher oil prices lift Exxon s profit as production sags | By Ernest Scheyder Reuters Exxon Mobil Corp the world s largest publicly traded oil company reported a stronger than expected quarterly profit on Thursday as higher prices for its crude and natural gas offset a 6 percent drop in production Exxon has struggled in recent quarters to replenish its reserves quickly investing in massive new projects in Russia and Papua New Guinea that take years to develop Meanwhile many of its smaller more nimble peers have aggressively developed shale formations around North America fueling massive production and exciting Wall Street Declining production is a recurring theme for Exxon Mobil said Edward Jones analyst Brian Youngberg The company remains growth challenged and a lot of that is due to their large size Adding to the company s challenges are Western sanctions against Russia since Exxon is more involved in that country than any other U S oil company Lukoil Russia s second largest oil producer said on Wednesday that the sanctions would force it to slash capital spending due to limited access to funds Exxon is partnering with Lukoil peer Rosneft to develop a large oil field off the eastern Russian coast and analysts said Lukoil s announcement could be the harbinger of funding challenges for the entire industry in Russia Exxon said net income rose to 8 78 billion or 2 05 per share from 6 86 billion or 1 55 per share a year earlier Analysts on average expected earnings of 1 86 per share according to Thomson Reuters I B E S Part of the increase in profit was due to a gain from Exxon s sale of its 60 percent stake in a Hong Kong utility and power storage firm earlier this year Unlike others on Wall Street Exxon does not typically offer an adjusted earnings number Youngberg said that if the company had backed out the gain from the Hong Kong sale its profit would have missed expectations Production fell 6 percent to 3 8 million barrels of oil equivalent per day While the drop is not a positive investors should not see it as the beginning of a negative trend said Oliver Pursche of Gary Goldberg Financial Services who manages Exxon shares for clients The bigger question beyond production is what their future exploration looks like he said And I would say there s certainly opportunity there for them to make up for this dip in production with fresh reserves The average price that Exxon receives for its crude oil jumped 3 percent in the United States and 5 percent internationally during the quarter
Exxon s shares fell 1 7 percent to 101 52 in early trading At Wednesday s close the stock had gained about 2 percent so far this year Reporting by Ernest Scheyder Editing by Franklin Paul Jeffrey Benkoe and Lisa Von Ahn |
XOM | World Fuel Services Fueling A Growing World | For the average person filling the fuel tank for your mode of transportation whether it s a car truck SUV or motorcycle is a relatively straightforward task You pull up to a gas station swipe a card pump the gas and you re on your way in less than 5 minutes Yet if you have a larger means of transportation say a plane or a barge fueling up isn t quite that simple That is if you have a vessel instead of an average vehicle then your fueling needs are likely to be a touch more complicated World Fuel Services INT is in the business of providing a solution for this precise predicament Headquartered in Miami FL World Fuel Services is a global leader in the downstream marketing and financing of aviation marine and land fuel products and related services With sales of nearly 39 billion in 2012 World Fuel Services provides solutions in over 8 000 locations worldwide Specifically the aviation segment which contributes about two fifths of the company s profit has about 3 000 locations The marine segment provides about a third of the profits by selling fuel lubricants consulting and yacht services at more than 1 100 seaports globally Finally a fourth of the business comes from the land segment providing more than 3 billion gallons of fuel product annually in Brazil the United Kingdom and the United States In addition just about half of its profits come from the Americas It s not much of a wonder why World Fuel Services likes to be known for Fueling Relationships Around the World With such a global footprint one might be inclined to believe that World Fuel Services controls a great portion of the world fuel distribution market certainly their name doesn t shy away from this distinction However that s not necessarily what we see For instance in the aviation market World Fuel Services supplies about 4 4 billion gallons of fuel a year to companies like Virgin America Delta DAL FedEx FDX JetBlue JBLU Korean Air and Lufthansa DLAKY Yet World Fuel Services only has about 6 of the global aviation market share On the marine side the company sold 26 million metric tons of fuel last year to companies like Royal Caribbean RCL Hanjin Shipping and Evergreen Marine Group however World Fuel Services only makes up about 12 of the global marine market Finally World Fuel Services provides services on land to customers like Speedway MRO Wawa Sunoco and Gulf nevertheless World Fuel Services controls less than 1 of the global market share in this area In other words by no means does World Fuel Services have a monopoly In turn these current market shares could provide the company with a bit of a growth opportunity Of course a common argument against World Fuel Services gaining new market share would be that it s not especially easy to take business away from able competitors However even if World Fuel Services just maintains its market share there still exists a thesis for growth For instance if one were to view Exxon Mobil s XOM view to 2040 you would find that the world s population is expected to grow by 25 to 9 billion people by 2040 Further fuel for aviation and marine will increase by about 75 and 90 respectively over that period with the combined share of the market growing from today s 20 of the total market to over 25 in the next few decades On the other hand demand for personal vehicle fuel is expected to plateau relatively soon In addition it is expected that North America and Asia Pacific will make up about 60 of the global transportation demand by 2040 exactly where World Fuel Services currently operates Now to be sure there are a variety of risks associated with this company For instance a recent train derailment hangs the potential for future lawsuits the price of fuel is volatile at best and World Fuel Services growth has slowed as of late There are always reasons companies carry risks an investor s job is to determine whether or not these adverse possibilities carry weight With that being said let s take a look at how the company has recently performed 15 Years of GrowthWorld Fuel Services Corp has grown earnings orange line at a compound rate of 16 since 1999 resulting in a 2 8 billion dollar market cap In addition World Fuel Services earnings have risen from 0 10 per share in 1999 to today s forecasted earnings per share of approximately 2 81 for 2013 World Fuel Services has consistently paid a dividend pink line for the last two decades For a look at how the market has historically valued World Fuel Services Corp see the relationship between the price black line and earnings of the company as seen on the Earnings and Price Correlated F A S T Graph below Here we see that World Fuel Services Corp s market price previously began to deviate from its justified earnings growth starting to become undervalued during the most recent recession and coming back to fair value as of late Today World Fuel Services appears to be fairly valued to slightly undervalued in relation to both its historical earnings and relative valuation In tandem with the strong earnings growth World Fuel Services Corp shareholders have enjoyed a compound annual return of 20 1 which correlates somewhat closely with the 16 growth rate in earnings per share A hypothetical 10 000 investment in World Fuel Services on 12 31 1998 would have grown to a total value of 150 262 17 without reinvesting dividends Said differently World Fuel Services shareholders have enjoyed total returns that were roughly 8 8 times the value that would have been achieved by investing in the S P 500 over the same time period It s also interesting to note that an investor would have received approximately 2 times the amount of dividend income as the index as well But of course as the saying goes past performance does not guarantee future results Thus while a strong operating history provides a fundamental platform for evaluating a company it does not by itself indicate a buy or sell decision Instead an investor must have an understanding of the past while simultaneously thinking the investment through to its logical if not understated conclusion In the opening paragraphs potential catalysts for growth were described It follows that the probabilities of these outcomes should be the guide for one s investment focus Yet it is still useful to determine whether or not your predictions seem reasonable Four leading analysts reporting to Standard Poor s Capital IQ come to a consensus 5 year annual estimated return growth rate for World Fuel Services of 6 1 In addition World Fuel Services Corp is currently trading at a P E of 14 which is inside the value corridor defined by the orange lines of a maximum P E of 18 If the earnings materialize as forecast World Fuel Services valuation would be 60 73 at the end of 2018 which would be a 9 3 annualized rate of return including dividends A graphical representation of this calculation can be seen in the Estimated Earnings and Return Calculator below Now it s paramount to remember that this is simply a calculator Specifically the estimated total return is a default based on the consensus of the analysts following the stock The consensus includes the long term growth rate along with specific earnings estimates for the next two upcoming years Further the dividend payout ratio is presumed to stay the same and grow with earnings Taken collectively this graph provides a very strong baseline for how analysts are presently viewing this company However a F A S T Graphs subscriber is also able to change these estimates to fit their own thesis or scenario analysis Since all investments potentially compete with all other investments it is useful to compare investing in any prospective company to that of a comparable investment in low risk treasury bonds Comparing an investment in World Fuel Services to an equal investment in a 10 year treasury bond illustrates that World Fuel Services Corp s expected earnings would be 3 8 times that of the 10 year T Bond interest This comparison can be seen in the 10 year Earnings Yield Estimate table below Finally it s important to underscore the idea that all companies derive their underlying value from the cash flows earnings that they are capable of generating for their owners Therefore it should be the expectation of a prudent investor that in the long run the likely future earnings of a company justify the price you pay Fundamentally this means appropriately addressing these two questions in what should I invest and at what time In viewing the past history and future prospects of World Fuel Services we have learned that it appears to be a strong company with reasonable upcoming opportunities However as always we recommend that the reader conduct his or her own thorough due diligence Disclosure No position at the time of writing Disclaimer The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted The information in this document is believed to be accurate but under no circumstances should a person act upon the information contained within We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation |
XOM | Integrated Energy Stocks Rally How Much Fuel Is In The Tank | Today leading integrated energy stocks Exxon Mobil Corporation XOM and ConocoPhillips COP are both trading higher after reporting earnings this morning How much higher can these stocks trade in the near term XOM should have very strong chart resistance around the 92 00 area This is a level where the stock staged a failed breakout attempt in late July 2013 So traders should continue to look for strong resistance around that level Currently XOM stock is already starting to look overbought on the daily chart so there is a chance that the stock may not be able to trade into the 92 00 resistance level ConocoPhillips stock has been a major winner in 2013 The stock has climbed higher by more than 20 00 since July 2013 The uptrend is firmly intact for this stock however COP is starting to look slightly overbought If the stock can stage a pullback to the 70 00 level that would be an ideal support level to buy the stock Any high volume decline below the 70 00 level would likely mean that institutional money is now coming out of the stock but at this time the stock remains strong |
XOM | Why Chen Lin Is Buying Fracking Stocks And Selling Gold Holdings | Chen Lin author of What is Chen Buying What Is Chen Selling goes wherever he sees returns In the summer he bought mining stocks when the yellow metal hit 1 200 per ounce Now he s trading in his gold names and moving into the fracking space after a three year hiatus In this interview with The Energy Report Lin names the companies he s buying to play a likely energy sector bottom and tells investors to actively manage their portfolios in the coming stock picker s market The Energy Report Chen welcome What is your take on the international prospects for drilling in 2014 Chen Lin Actually the most exciting development for me is closer to home I think the major action is in the U S and Canada The whole fracking revolution is picking up steam We could see as much as a 1 million barrel per day 1 MMbbl d increase in North American oil production The United States is finally inching closer to energy independence which could have a profound impact on the world TER What are the catalysts that are going to move oil and gas in the coming year CL Right now the key to watch is the Fed if it s going to taper when it s going to taper This year I was betting the Fed would delay tapering I think it probably will taper at the latest early next year Fed action could have a very strong impact on the commodity space for commodity prices as well as commodity stocks TER How will these conditions affect the oil and gas companies in your portfolio CL My portfolio in oil and gas is quite broad I try to pick the stocks that can move on their own They can move on their news trading results their success in certain areas They won t be affected too much by the Fed or by the commodity price The tapering will actually have a negative impact on energy and stocks in general TER How has your oil and gas portfolio been doing this year CL The first half was very difficult for commodity stocks in general not just energy Mining of any kind was hit hard Stocks just continued to go down without any reason Then oil stocks started to scream back in the past month I was very lucky this year because in the summer I was buying gold stocks Then when gold hit 1 400 per ounce 1 400 oz I told my subscribers that I was planning to sell I sold most of my gold stocks in late August early September I was just buying energy and energy bottomed around that time so many have already moved a lot in the past month TER Are you expecting to add to your oil and gas portfolio or drop any companies CL I ve been adding energy plays lately I also sold some of the energy plays like Coastal Energy Co CEN in which I had quite a large position I reduced my position because it depreciated a lot The next 6 12 months will probably be quite a tricky timeframe so you have to actively manage your portfolio I try to add and drop get in and out of companies actively TER In one of your letters you said you were buying fracking plays this year Why weren t you doing it earlier CL Because they were very bad performers in the past three years I sold fracking plays three years ago with a very good profit At that time fracking had just started and people were rushing into the space I got out because I realized the capital costs are very high for a lot of companies Issuing debt for a small company costs a lot of money Three years later fast forward the fracking play companies have done so badly since then Many are down as much as 90 They are down so low that if the management chooses to sell all its land and the shale position you can get a lot of backers at this current stock price which means that the stock price was pressured very very hard Meanwhile Exxon Mobil Corp XOM is actively buying and all the other major companies are moving into the fracking plays There are a lot of deals going on Also deals from China from Korea from Japan Then the deals traded at a much higher premium to stock prices Part of the reason I got into the fracking play is that it s a good value proposition There are not a lot of management teams that are not willing to sell in case of a takeover for example so that also could benefit shareholders That s why I got back into the fracking plays about one to two months ago TER You say the fracking companies were doing poorly before Were the oil companies doing any better than the average or were oil and gas doing about equally poorly CL The oil and gas companies were not doing well in the past two years in general but the fracking plays were doing even worse There were multiple reasons West Texas Intermediate WTI was low and the spread of WTI to Brent was very high 20 25 sometimes Companies were forced to sell at a price well below Brent In order to continue drilling they had to borrow money or issue shares Even my recent best performer Penn Virginia Corp PVA performed very poorly It was a 30 stock in 2010 It went down all the way to 4 share this year I bought it at 4 70 and it went over 7 in one month which is good for me and my subscribers but imagine a shareholder who bought at 30 in 2010 Same thing for my other best performers lately Rock Energy Inc RE TSX was trading at 6 in early 2011 it dropped all the way to 1 I was fortunate to get in at 2 a couple of weeks ago now it s over 3 BNK Petroleum Inc BKX TSX was more extreme trading at around 6 in early 2011 it dropped below 0 40 and is now close to 2 If BNK has any successes in Poland in a few months I believe the stock can revisit the old high You can see how volatile these stocks can be and I was very fortunate to have sold my fracking stocks in late 2010 and early 2011 TER What has changed in the fracking plays to make them more attractive now CL There a couple of reasons The WTI Brent spread has narrowed dramatically in the past six months At one point WTI Brent was trading at par this year That s the first reason Second the fracking technology has improved Most companies know how to drill a well cost effectively and to get the most production out As technological development is ongoing a lot of questions have been answered Infrastructure started building up We see there are some pipelines at least in the lower part of United States already built up Finally large companies and Asian countries are starting to buy into the fracking play paying as much as 60 000 per acre That was a record TER Are you still expecting a major decline in the price of oil CL I m concerned about the oil price One of the reasons is that the production going on in the United States and Canada has tremendously increased The annual production rate increased by nearly 1MMbbl d between 2011 and 2012 The Middle East situation is starting to quiet down as well Recently I heard Saudi Arabia has been cutting back to maintain the high oil price It s hard for me to imagine the country continuing to do that at its own expense TER What draws your attention to a particular energy company like Pan Orient Energy Corp POE or Mart Resources Inc MMT that motivates a buy decision CL Companies I favor have their own unique stories the companies can move on their own They re not dependent for example on the financial market They don t need to raise money They re going to have a very significant company changing event potentially happening in the next 3 6 months Those I believe can significantly move the stock price TER Which companies on your scorecard have been doing their best work this year CL If you look at the long term performance probably Mart was still my best performer I got it at 0 15 I think I told my subscribers it would become one of my largest positions It s over a dollar now Consider how much dividend that s paid You get all the money back if not more Mart is going to build its own pipeline for its Nigerian oil field because the current pipeline is poorly maintained and the stock suffered because the pipeline loss recently was as high as 20 25 People were concerned so much oil was stolen However when Mart builds its own pipeline which the company expects to do in H1 14 then it can improve oil production and move to a much better maintained pipeline with much less loss That will be a major catalyst Again it s a Nigerian company A lot of people have doubts about a Nigerian company Sometimes people need to see the pipelines built before investing in the stock You need some patience They re paying about 0 20 year dividend I just received my recent quarterly dividend You keep getting paid while waiting TER Mart Resources production losses at the Umusadege oil field in Nigeria were much greater this year than last It looks like it was because of longer and more frequent export pipeline shutdowns and oil theft How would Mart make its new pipeline better protected CL It will go through a completely different system This is the other export route where losses are a small fraction of the AGIP pipeline It s an old Royal Dutch Shell Plc RDS A pipeline At last report Mart was only a few kilometers away from connecting If you look at the pipeline from this year and last year you will understand why the stock went down this year Last year the pipeline was running fine and Mart was doing fantastically In the past two or three years Mart was the best performer among all energy stocks This year the pipeline has had a lot of issues flooding theft Mart shares were hit hard though it was completely out of the company s control Hopefully when the new pipeline starts the new route from the Shell exit facility we will see a very different company Then Mart will triple production so you will see much larger production more cash flow and potential increase of dividend which is already very high I think that dividend is 13 14 right now TER Do you have a target expectation for Mart s performance or stock price after the completion of that line CL Right now I do not but I expect the stock will be substantially higher than the current price because the company can triple production and the cash flow The year 2014 could be a banner year for the company with huge cash flow coming in The stock should be a multiple of the current price but time will tell TER Is religiously motivated violence in the northeast of Nigeria likely to affect Mart s profitability CL It s possible Nigeria is a risky place As you said the northeast part of the country which is dominated by Muslims has a lot of problems with violence against Christians Fortunately Mart is operating in the southwest part It s closer to the shore in a relatively stable area so they don t have too much religious violence TER In an interview with The Energy Report in January you said that Pan Orient has the potential to be a tenbagger this year How has it performed CL It has not performed very well certainly below my expectations Part of it was that the big wells it s trying to drill have not been very successful Five big wells all turned out to be dry holes which is very disappointing but that s the risk we take by investing in exploration companies However right now it s entering a very interesting phase because Pan Orient s neighbor just found a large oil pool just on the border of Batu Gajah 77 owner and operator The crest part of the discovery the best part is on Pan Orient s land The discovery is rather large It may be over 150 million barrels of oil equivalent 150 MMboe It has oil it has gas condensate and it has gas The discovery well was drilled only 175 meters from Pan Orient s border You can go to Pan Orient s website and see the location of the well You can see the crest of the discovery is right on the Pan Orient concession That makes a very interesting play because you can drill right there and it becomes very low risk drilling because the other company drilled three wells The first two wells averaged more than 6 000 boe The third well they re still testing It s right on the border Pan Orient has the best part of that This could be a very nice discovery My understanding is Pan Orient is going to partner out all three of the major Indonesian concessions It expects to receive a large down payment and to have the partner carry out the next few wells on each concession Since Pan Orient spent close to 100 million in all the drilling the seismic the groundwork I expect it to get a lot of the money back from partnering Potentially it could be tens of millions It s very hard to give an exact number because it is negotiating with its partners right now Its cash position should substantially increase I would guess it would be around 1 50 after everything s over Right now the stock is a little over 2 share So the company will have around 1 50 in cash then it has its partner s drilling the well potentially I would say 8 10 wells in Indonesia at the partner s cost It has a big oil target coming up in Thailand that it s going to drill You can see the 3D seismic on the website It s a very large target Over there in Thailand it only costs 1 2 million to drill Then it also is fully funded to do the heavy oil in Canada The company has three possibilities and all three have a very good chance to succeed Success in each of them can dramatically change the stock price TER Andora Energy has a steam assisted gravity drainage project at Sawn Lake When is that one going to produce its first oil CL It s going to start drilling in early October First oil should be in Q1 14 Sometime in Q1 14 we will know the results of the well Remember the second largest French company Maurel Prom MAU is already Pan Orient s partner there The company subscribed a private placement at 1 200 premium to the stock price which tells you how undervalued the whole area is TER Can you talk about some other companies in your portfolio CL I m buying different energy plays About the end of August early September my major additions were BNK Petroleum Penn Virginia Corp Ithaca Energy Inc IAE TSX and Harvest Natural Resources HNR We had a very tough H1 13 on commodities I was very lucky to buy gold miners during the summer when gold was testing 1 200 oz When it hit 1 400 oz I was extra lucky to sell these gold miners to use the money to buy those energy stocks That actually turned out to be a very good trade BNK is an interesting company Its recent well results in the U S have been fantastic It is surrounded by Exxon and will likely sell the assets to Exxon which it has done before Then the company cash level should be around its market cap It has about one million acres in Poland and will drill the first well in early 2014 If it is successful in Poland the sky is the limit Remember BNK had a billion dollar market cap just based on Poland in early 2011 I already sold Penn Virginia it jumped 70 80 for me in one month Though I still believe there is value in the stock I would wait for a pullback to buy it again Ithaca Energy also moved up a lot but it still has a lot of upside room It s a North Sea based oil exploration company trading at 1 2 times cash flow If the company can continue to execute I think it still has substantial upside Harvest Natural Resources is a special play here If you calculate the recently announced transaction you will see the company can pay off all its debt and have 10 share cash left on its balance sheet from which it intends to distribute around 6 to shareholders The stock s still trading around 5 Potentially you can get your money back plus you have another valuable spin off with very interesting asset in Indonesia and in Colombia plus 4 on the balance sheet for free Most important the company s worth is independent of market fluctuations That s why I like it Rock Energy has been another great performer for me lately It should have more upside left since the recent wells derisked the whole area One interesting play is RMP Energy RMP TSX Its recent well flows 2 000 barrels per day 2 000 b d oil The payback of the well is less than one month something unheard of in the fracking space The company just consolidated the area and has around 100 drilling locations just on that property They are planning to upgrade the oil processing facility to 20 000 b d in Q1 14 when we will see a huge jump in production Recently I found a very interesting stock I ve been accumulating The company name is NXT Energy Solutions SFD NSFDF OTCBB It can fly airplanes over a field and detect if oil is present or not It recently did a very large survey with PEMEX Petr leos Mexicanos the Mexican oil company PEMEX already has seismic data on a certain field they knew where it has oil deposits and where it doesn t PEMEX asked NXT to fly over and the results were shockingly good NXT found every large field for PEMEX The report is on the website PEMEX is the co author If NXT can continue like this it can change the oil industry as we know it You probably need seismic later on to pinpoint where the oil is but you can fly a plane over a very broad space and then detect where the oil is That will be a revolution in the oil industry It s a very interesting company It has a strong balance sheet Recently it has started to go to the oil exploration companies and negotiate payment through royalties in exchange for its services That can be a very interesting move It s an interesting company I think if everything s successful it has a very bright future TER What is your outlook on energy in general for the next year CL Like I said I m cautious about the oil price in 2014 The production from the U S and Canada is just amazing If you read the Eagleford reports and Bakken reports you can see how many new wells are drilled The completion techniques are getting better and deliver more oil production during the life of a well I m a little bit afraid the oil will fall much below 100 bbl It s possible On one hand you have very high oil prices now Most of my energy companies are making money They re doing fantastically Though I m not very confident the high oil price is here to stay I want to remind everyone that if oil drops to below 80 bbl the party of fracking stocks may be over I would be careful and take profits as they go up I m going to watch the market month by month and see if the situation changes I also believe that 2014 will be a stock pickers market If you pick the right stock with the right catalyst a stock can go up a lot just on its own That s what I m looking at for 2014 TER Chen thank you very much This has been a fascinating conversation CL Thank you I appreciate it Chen Lin writes the popular stock newsletter What Is Chen Buying What Is Chen Selling published and distributed by Taylor Hard Money Advisors Inc While a doctoral candidate in aeronautical engineering at Princeton Chen found his investment strategies were so profitable that he put his Ph D on the back burner He employs a value oriented approach and often demonstrates excellent market timing due to his exceptional technical analysis DISCLOSURE 1 Tom Armistead conducted this interview for The Energy Report and provides services to The Energy Report as an independent contractor He or his family owns shares of the following companies mentioned in this interview None 2 The following companies mentioned in the interview are sponsors of The Energy Report Pan Orient Energy Corp Royal Dutch Shell Plc and Mart Energy Resource Inc Streetwise Reports does not accept stock in exchange for its services or as sponsorship payment 3 Chen Lin I or my family own shares of the following companies mentioned in this interview Mart Resources Inc Pan Orient Energy Corp Ithaca Energy Inc Penn Virginia Corp Harvest Natural Resources BNK Petroleum Rock Energy RMP Energy and NXT Energy Inc I personally am or my family is paid by the following companies mentioned in this interview None My company has a financial relationship with the following companies mentioned in this interview None I was not paid by Streetwise Reports for participating in this interview Comments and opinions expressed are my own comments and opinions I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview 4 Interviews are edited for clarity Streetwise Reports does not make editorial comments or change experts statements without their consent 5 The interview does not constitute investment advice Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility By opening this page each reader accepts and agrees to Streetwise Reports terms of use and full legal disclaimer 6 From time to time Streetwise Reports LLC and its directors officers employees or members of their families as well as persons interviewed for articles and interviews on the site may have a long or short position in securities mentioned and may make purchases and or sales of those securities in the open market or otherwise |
XOM | XBRL Extensible Business Reporting Language | Check out this week s with Chuck Jaffe of and MarketWatch com I m deviating from the norm this week Instead of a stock fund or sector I m putting the electronic reporting language XBRL in the Danger Zone The purpose of XBRL is to make certain parts of SEC filings and other business documents machine readable for example the financial statements Ideally the automated data gathering that XBRL enables would allow for more sophisticated analysis by regulators analysts and investors The SEC under former Chairman Christopher Cox mandated that this global standard for exchanging business information be adopted by publicly traded companies beginning in 2010 Since New Constructs focuses on gathering financial data directly from filings I have a strong interest in the progress of XBRL We currently gather all the financial data ourselves because none of the data providers can supply either the quantity ie footnotes or quality of data that we need If XBRL could supply all the data we need it would make my business much more efficient I am a big fan of XBRL and would like to see it succeed As of this year all companies are required to submit their annual and quarterly reports in XBRL As one might expect we eagerly examined their filings Our conclusion XBRL is rife with issues and not usable In order for XBRL to serve as a substitute for manual data gathering it must be 100 reliable in terms of presenting the correct information XBRL is not worth the trouble if you have to go back and verify all the data manually anyway We did not expect XBRL to be 100 reliable in the first few years of its implementation but we hoped by this time that it would be reliable at least for the easier data points like the financial statements Instead we found that a large number of companies were not able to get even the simplest data points correct in their 10 Q filings The total shares outstanding is one of the easiest data points to scrape manually from a regular 10 K or 10 Q filing That data point shows up in the same place and in the same format for nearly every 10 K or 10 Q filing in the universe The bottom of the first page will have the number of shares outstanding and the date on which the shares were counted see an example here A filing that gets this wrong is like a basketball player that can t find the basket How can you rely on them to do anything else right if they can t execute such a simple task Early in our analysis we found errors so egregious and so often that we realized further analysis was not worthwhile The errors involved both conflicting and wrong numbers and dates Conflicting means the XBRL filing had different data than the text or HTML version of the filing or the header file from the SEC Wrong means the data was incorrect or missing in all areas The data was not just off by a little bit As you can see in Figure 1 the date could be months off and in one case even over a year off Figure 1 XBRL Errors for the Date for Shares OutstandingSources New Constructs LLC and company filingsFigure 2 shows that share counts were sometimes off by millions or even missing entirelyFigure 2 XBRL Errors for Shares Outstanding Sources New Constructs LLC and company filings Click for CIK and Accession numbers for the filings for the samples in Figures 1 and 2 as well as more examples Don t think that only smaller companies have these issues Exxon Mobil XOM and Verizon VZ both had conflicting or wrong data as well It appears that no one is checking XBRL tags to make sure they are correct The SEC has responsibility for enforcing XBRL but does not seem to consider it a priority Right now enforcement is so lax that many companies with incorrect XBRL tags This nonchalance surprises me a great deal Based on a that I prepared for the Senate Banking Committee in 2009 the SEC is clearly not able to review in meaningful detail every filing submitted by companies Their processes are almost entirely manual and based on word documents and letters to companies From what I gathered back in 2009 the SEC had no database for analyzing and comparing financial data The SEC should welcome XBRL as a way to manage and analyze the mountain of data they need to evaluate If they continue to allow blatantly wrong information however it becomes dead weight that complicates the process for filers and adds no value for regulators and investors The potential utility of XBRL as a tool for regulators to fight fraud and investors to better analyze companies makes its numerous flaws that much more of a shame I can only hope that the SEC realizes the value of XBRL and makes a commitment to ensuring the accuracy and validity of XBRL data In the meantime thousands of disclosures on which the investing public relies flow through the SEC with very little to no review Sam McBride contributed to this article Disclosure David Trainer and Sam McBride receive no compensation to write about any specific stock sector or theme |
TEVA | Sanofi may win U S approval of 3 billion eczema drug by March | Reuters French drugmaker Sanofi PA SASY and its U S partner Regeneron Pharmaceuticals O REGN could win U S approval for their keenly awaited new eczema drug dupilumab seen by analysts as a potential 3 billion a year seller by next March Sanofi badly needs new products to make up for flagging sales in its diabetes business where its top seller Lantus faces growing competition The two companies said on Monday that the U S Food and Drug Administration had accepted dupilumab for priority review for treating atopic dermatitis AD a skin inflammation also known as atopic eczema and set a target decision date of March 29 Dupilumab an injectable antibody drug is seen by investors as perhaps Sanofi s most promising pipeline medicine since it has produced promising clinical results and could be first systemic therapy for severe AD The drug is also being developed for severe asthma where it will compete with a wave of other new biotech medicines such as GlaxoSmithKline s L GSK Nucala and Teva s TA TEVA Cinqair
Industry analysts on average forecast annual sales for dupilumab of 3 0 billion by 2021 according to Thomson Reuters Cortellis |
TEVA | Israel stocks lower at close of trade TA 25 down 0 18 | Investing com Israel stocks were lower after the close on Tuesday as losses in the Oil Gas Real Estate and Banking sectors led shares lower
At the close in Tel Aviv the TA 25 fell 0 18
The best performers of the session on the TA 25 were OPKO Health Inc TA OPK which rose 2 09 or 86 points to trade at 4202 at the close Meanwhile Gazit Globe TA GZT added 1 91 or 70 points to end at 3740 and Discount TA DSCT was up 1 17 or 8 0 points to 691 0 in late trade
The worst performers of the session were Israel Corp TA ILCO which fell 1 83 or 1170 points to trade at 62650 at the close Teva TA TEVA declined 1 72 or 330 points to end at 18810 and Delek Group TA DLEKG was down 1 71 or 1350 points to 77750
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 193 to 154 and 100 ended unchanged
Shares in Teva TA TEVA fell to 52 week lows falling 1 72 or 330 to 18810
Crude oil for November delivery was down 3 53 or 1 62 to 44 31 a barrel Elsewhere in commodities trading Brent oil for delivery in December fell 3 44 or 1 65 to hit 46 28 a barrel while the December Gold contract fell 1 04 or 13 95 to trade at 1330 15 a troy ounce
USD ILS was up 0 07 to 3 7520 while EUR ILS fell 0 43 to 4 2011
The US Dollar Index was up 0 36 at 95 55 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 21 | Investing com Israel stocks were lower after the close on Wednesday as losses in the Communication Biomed and Technology sectors led shares lower
At the close in Tel Aviv the TA 25 lost 0 21
The best performers of the session on the TA 25 were Gazit Globe TA GZT which rose 2 14 or 80 points to trade at 3820 at the close Meanwhile Delek Drilling LP TA DEDRp added 1 89 or 26 points to end at 1399 and Melisron TA MLSR was up 1 78 or 290 points to 16540 in late trade
The worst performers of the session were OPKO Health Inc TA OPK which fell 2 71 or 114 points to trade at 4088 at the close Teva TA TEVA declined 1 91 or 360 points to end at 18450 and Bezeq TA BEZQ was down 1 23 or 8 8 points to 708 0
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 190 to 156 and 101 ended unchanged
Shares in Teva TA TEVA fell to 52 week lows falling 1 91 or 360 to 18450 Shares in Bezeq TA BEZQ fell to 52 week lows down 1 23 or 8 8 to 708 0
Crude oil for November delivery was down 0 13 or 0 06 to 44 61 a barrel Elsewhere in commodities trading Brent oil for delivery in December rose 0 04 or 0 02 to hit 46 54 a barrel while the December Gold contract fell 0 50 or 6 65 to trade at 1323 75 a troy ounce
USD ILS was up 0 19 to 3 7567 while EUR ILS rose 0 01 to 4 2037
The US Dollar Index was up 0 28 at 95 62 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 55 | Investing com Israel stocks were lower after the close on Thursday as losses in the Insurance Biomed and Technology sectors led shares lower
At the close in Tel Aviv the TA 25 lost 0 55
The best performers of the session on the TA 25 were Frutarom TA FRUT which rose 1 49 or 290 points to trade at 19730 at the close Meanwhile Azrieli Group TA AZRG added 0 86 or 140 points to end at 16450 and Melisron TA MLSR was up 0 54 or 90 points to 16630 in late trade
The worst performers of the session were Teva TA TEVA which fell 2 49 or 460 points to trade at 17990 at the close Ormat Technologies TA ORA declined 1 84 or 340 points to end at 18140 and Israel Corp TA ILCO was down 1 03 or 640 points to 61440
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 185 to 150 and 111 ended unchanged
Shares in Teva TA TEVA fell to 52 week lows falling 2 49 or 460 to 17990
Crude oil for November delivery was up 0 53 or 0 25 to 47 30 a barrel Elsewhere in commodities trading Brent oil for delivery in December rose 0 35 or 0 17 to hit 49 41 a barrel while the December Gold contract fell 0 17 or 2 25 to trade at 1321 45 a troy ounce
USD ILS was up 0 00 to 3 7529 while EUR ILS rose 0 11 to 4 2142
The US Dollar Index was up 0 10 at 95 41 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 17 | Investing com Israel stocks were lower after the close on Wednesday as losses in the Communication Real Estate and Oil Gas sectors led shares lower
At the close in Tel Aviv the TA 25 lost 0 17
The best performers of the session on the TA 25 were Azrieli Group TA AZRG which rose 2 49 or 410 points to trade at 16860 at the close Meanwhile Frutarom TA FRUT added 2 03 or 400 points to end at 20130 and Elbit Systems TA ESLT was up 1 56 or 560 points to 36360 in late trade
The worst performers of the session were Teva TA TEVA which fell 5 39 or 970 points to trade at 17020 at the close Israel Corp TA ILCO declined 2 99 or 1840 points to end at 59600 and ICL Israel Chemicals Ltd TA ICL was down 2 19 or 32 points to 1428
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 200 to 153 and 93 ended unchanged
Shares in Teva TA TEVA fell to 52 week lows falling 5 39 or 970 to 17020 Shares in ICL Israel Chemicals Ltd TA ICL fell to 5 year lows down 2 19 or 32 to 1428
Crude oil for November delivery was up 2 36 or 1 15 to 49 84 a barrel Elsewhere in commodities trading Brent oil for delivery in December rose 2 16 or 1 10 to hit 51 97 a barrel while the December Gold contract rose 0 10 or 1 25 to trade at 1270 95 a troy ounce
USD ILS was down 0 01 to 3 7765 while EUR ILS fell 0 05 to 4 2293
The US Dollar Index was up 0 11 at 96 21 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 36 | Investing com Israel stocks were lower after the close on Thursday as losses in the Real Estate Biomed and Technology sectors led shares lower
At the close in Tel Aviv the TA 25 lost 0 36
The best performers of the session on the TA 25 were Israel Corp TA ILCO which rose 1 44 or 860 points to trade at 60460 at the close Meanwhile Delek Group TA DLEKG added 1 38 or 1070 points to end at 78870 and Teva TA TEVA was up 1 35 or 230 points to 17250 in late trade
The worst performers of the session were OPKO Health Inc TA OPK which fell 3 07 or 126 points to trade at 3984 at the close Nice Ltd TA NICE declined 1 85 or 470 points to end at 24960 and Poalim TA POLI was down 0 98 or 21 points to 2119
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 191 to 153 and 100 ended unchanged
Crude oil for November delivery was up 0 86 or 0 43 to 50 26 a barrel Elsewhere in commodities trading Brent oil for delivery in December rose 1 08 or 0 56 to hit 52 42 a barrel while the December Gold contract fell 1 19 or 15 05 to trade at 1253 55 a troy ounce
USD ILS was up 0 51 to 3 7891 while EUR ILS rose 0 23 to 4 2327
The US Dollar Index was up 0 44 at 96 55 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 84 | Investing com Israel stocks were higher after the close on Tuesday as gains in the Banking Communication and Financials sectors led shares higher
At the close in Tel Aviv the TA 25 rose 0 84
The best performers of the session on the TA 25 were Frutarom TA FRUT which rose 4 10 or 820 points to trade at 20820 at the close Meanwhile Elbit Systems TA ESLT added 3 20 or 1160 points to end at 37360 and Poalim TA POLI was up 3 15 or 68 points to 2230 in late trade
The worst performers of the session were Teva TA TEVA which fell 5 19 or 880 points to trade at 16070 at the close OPKO Health Inc TA OPK declined 1 75 or 64 points to end at 3586 and Perrigo TA PRGO was down 0 74 or 250 points to 33350
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 200 to 141 and 103 ended unchanged
Shares in Teva TA TEVA fell to 52 week lows falling 5 19 or 880 to 16070 Shares in Poalim TA POLI rose to 5 year highs up 3 15 or 68 to 2230
Crude oil for November delivery was down 0 14 or 0 07 to 49 87 a barrel Elsewhere in commodities trading Brent oil for delivery in December fell 0 27 or 0 14 to hit 51 38 a barrel while the December Gold contract rose 0 32 or 4 05 to trade at 1260 65 a troy ounce
USD ILS was down 0 28 to 3 8264 while EUR ILS fell 0 36 to 4 1982
The US Dollar Index was up 0 07 at 97 93 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 12 | Investing com Israel stocks were higher after the close on Wednesday as gains in the Insurance Oil Gas and Technology sectors led shares higher
At the close in Tel Aviv the TA 25 gained 0 12
The best performers of the session on the TA 25 were Teva TA TEVA which rose 2 99 or 480 points to trade at 16550 at the close Meanwhile Strauss Group TA STRS added 2 03 or 124 points to end at 6222 and Israel Corp TA ILCO was up 1 66 or 990 points to 60690 in late trade
The worst performers of the session were Azrieli Group TA AZRG which fell 1 87 or 310 points to trade at 16260 at the close Paz Oil TA PZOL declined 1 62 or 980 points to end at 59360 and Bezeq TA BEZQ was down 1 36 or 9 8 points to 710 0
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 170 to 148 and 126 ended unchanged
Crude oil for November delivery was up 3 18 or 1 60 to 51 89 a barrel Elsewhere in commodities trading Brent oil for delivery in December rose 2 61 or 1 35 to hit 53 03 a barrel while the December Gold contract rose 0 60 or 7 60 to trade at 1270 50 a troy ounce
USD ILS was up 0 12 to 3 8283 while EUR ILS rose 0 03 to 4 1986
The US Dollar Index was down 0 07 at 97 81 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 47 | Investing com Israel stocks were higher after the close on Tuesday as gains in the Biomed Technology and Oil Gas sectors led shares higher
At the close in Tel Aviv the TA 25 added 0 47
The best performers of the session on the TA 25 were OPKO Health Inc TA OPK which rose 2 54 or 90 points to trade at 3637 at the close Meanwhile Perrigo TA PRGO added 1 91 or 650 points to end at 34750 and Teva TA TEVA was up 1 02 or 170 points to 16780 in late trade
The worst performers of the session were Frutarom TA FRUT which fell 1 65 or 340 points to trade at 20210 at the close Gazit Globe TA GZT declined 0 98 or 36 points to end at 3634 and Strauss Group TA STRS was down 0 70 or 43 points to 6110
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 189 to 149 and 106 ended unchanged
Crude oil for December delivery was down 1 09 or 0 55 to 49 97 a barrel Elsewhere in commodities trading Brent oil for delivery in December fell 1 32 or 0 68 to hit 50 78 a barrel while the December Gold contract rose 0 64 or 8 05 to trade at 1271 75 a troy ounce
USD ILS was up 0 14 to 3 8494 while EUR ILS fell 0 30 to 4 1798
The US Dollar Index was up 0 33 at 98 97 |
XOM | Happy Fourth Americans Big Oil Hates You | By Just in time for the Fourth of July an alliance of environmentalists is urging Americans to declare their independence from Big Oil
The three progressive organizations behind a national campaign to take down Exxon Mobil Corp NYSE XOM over its fossil fuel dependent business model are back this week with Exxon Hates America a satirical commercial blasting the oil giant over billions of dollars in subsidies the groups say it receives from the federal government
The 30 second spot features a faux ExxonMobil executive boasting to the American people that Uncle Sam is powerless against its massive power and influence Sure oil hurts communities and endangers the planet the actor says But the truth is you can t stop us from drilling Why Because we own the government
According to Fortune s Global 500 for 2013 ExxonMobil is the world s most profitable company with 44 9 billion in profits in 2012 The company has long denied that tax breaks for oil companies amount to federal subsidies and in fact says it s oil companies that are subsidizing the federal government
The new commercial was uploaded to YouTube on Tuesday and was viewed more than 9 500 times in the first 24 hours It was produced by Oil Change International and Environmental Action along with the Other 98 an advocacy group that aims to combat economic injustice With the help of a crowdfunding campaign the groups are seeking to raise 20 000 to purchase airtime and run the spot nationally over the holiday weekend
The commercial is a follow up to last year s Exxon Hates Your Children in which the groups claimed that allowing oil companies to damage the environment was tantamount to selling out our children s future In February 2013 the groups had planned to run the ad on Fox News Channel in Houston but ExxonMobil struck back sending a cease and desist letter to Comcast Corp NASDAQ CMCSA asking that the ad not run Comcast complied
A spokeswoman for the oil giant told International Business Times at the time that the ad failed to meet any basic standards of accuracy
You can watch the full commercial Exxon Hates America |
XOM | Shale boom confounds forecasts as U S set to pass Russia Saudi Arabia | By Catherine Ngai NEW YORK Reuters Four years into the shale revolution the U S is on track to pass Russia and Saudi Arabia as the world s largest producer of crude oil most analysts agree When that happens and by how much though has produced disparate estimates that depend on uncertain factors ranging from progress in drilling technology to the availability of financing and the price of oil itself Forecasts for U S shale oil production vary from an increase of 7 5 million barrels per day by 2020 almost doubling current domestic output of 8 5 bpd to a gain of 1 5 million bpd or less than half of what Iraq now produces The disparities are a function of the novelty of the shale boom which has consistently confounded forecasts In 2012 the U S Energy Information Administration EIA estimated that production from eight selected shale oil fields would range from 700 000 bpd of so called tight oil to 2 8 million bpd by 2035 A year later those predictions had been surpassed The key issue is not whether production grows it s by how much said Ed Morse global head of commodities research at Citigroup in New York We re only at the beginning of the first inning and this is a nine inning game The stakes couldn t be bigger ranging from the multibillion dollar investments needed to explore and drill to oil supply issues that go to the heart of U S foreign policy Relations with countries ranging from Iraq and Iran to Russia Ukraine Libya and Venezuela are colored to one degree or another by the question of energy The U S a nation transformed by the 1973 Arab oil embargo could become energy independent by 2035 according to bullish forecasts from BP Plc L BP and the International Energy Agency Coupled with growing output from oil rich neighbors the continent has a growing shield from supply shocks Looking at North America including Canada and Mexico we re much more politically stable said Lisa Viscidi program director of the Inter American Dialogue in Washington Still many drillers have found that healthy forecasts of oil in the ground don t guarantee it can be economically extracted For example based on the promise of free flowing oil Chesapeake Energy s N CHK then top executive Aubrey McClendon bought up land in Ohio s Utica shale oil field and touted it in 2011 as a 500 billion opportunity State geologists estimated the shale play could hold as much as 5 5 billion barrels of reserves But last year after months of drilling Chesapeake s average output per well per day was just 80 barrels Competitor BP wrote off 521 million and exited the Utica just two years after leasing 85 000 acres SIX ESTIMATES Shale production from the oldest shale patch the Bakken of Montana and North Dakota alone may rise to as much as 1 74 million barrels per day in the second half of this decade according to the highest of six estimates compiled by Reuters The lowest was 1 million bpd Even that range belies disagreement over just how fast output will grow and when it may peak Graphic The EIA the U S agency responsible for energy forecasts predicts that tight oil output will rise 37 percent from about 3 5 million bpd in 2013 to 4 79 million barrels per day by 2020 The forecast includes the Bakken Three Forks and Sanish Eagle Ford Woodford Austin Chalk Spraberry Niobrara Avalon Bone Springs and Monterey There are other forecasts that are much more optimistic than this one said agency administrator Adam Sieminski speaking at a conference in New York We re still a little concerned about what the geology looks like for crude oil production As technology moves these numbers could grow The agency has already made some big adjustments to previous estimates It recently slashed its forecast recoverable reserves for California s Monterey shale to just 600 million barrels 96 percent less than the total amount of oil in place citing the difficulty in pumping it out economically IHS Energy s projections are higher with an estimated 6 million bpd from the Bakken Eagle Ford and sections of the Permian and Niobrara by the end of 2020 At the low end Energy Aspects Ltd sees production of 3 5 million barrels a day from shale by 2017 a 1 5 million bpd increase from its current output estimate of 2 million bpd In order to keep production going you have to maintain your drilling and therefore capex investments need to be in a continuous cycle said Virendra Chauhan an oil analyst at Energy Aspects in London McKinsey Co s forecasts illustrate the uncertainty While the consulting firm uses a reference case that puts tight oil production at the equivalent of 7 1 million bpd by 2020 it said the number could range from 5 million to 9 million bpd In its annual outlook released last month BP estimated that U S tight oil production will increase to 4 5 million bpd in 2035 Exxon Mobil Corp N XOM says global tight oil production driven by North America will rise 11 fold from 2010 to 2040 when it will account for 5 percent of global liquids output Exxon added that in 2015 North American tight oil supply in 2015 will likely surpass any other OPEC nation s current oil production with the exception of Saudi Arabia Iran is the second largest OPEC producer with about 4 2 million bpd TRICKY FORECASTS Production forecasts are inherently problematic especially years in the future as they fail to anticipate major new discoveries or abrupt depletion rates Even so the industry s reliance on multi year mega projects such as those off the coast of Angola or in Brazil s sub salt region which progress along generally predictable time frames and produce stable volumes of oil for years afterward made it relatively simpler to anticipate new oil coming onto the market The shale oil industry is more complicated For instance the rapid development of reserves in places like China and Russia could force prices lower curtailing U S drilling New technology may render development cheaper and more efficient speeding it up A change in current domestic policy particularly an easing of the ban on crude exports would also shape the forecasts Add to that growth the pipelines connecting Canadian producers to U S refiners including TransCanada Corp s TO TRP 830 000 bpd Keystone XL pipeline whose approval has been delayed by the U S government for more than five years Never mind the vagaries of the credit cycle which has also become a larger part of the puzzle Companies face high levels of reinvestment to ensure the same levels of return for drilling oil meaning companies have to take on additional amounts of debt
Consultancy Wood Mackenzie estimates that it would require capital spending of 9 58 to 32 97 a barrel to drill in the Eagle Ford basin depending upon which part of the formation was targeted We re operating at present in a low interest rate environment but a risk is what happens if the cost of credit rises Energy Aspects Chauhan said Reporting by Catherine Ngai editing by Jessica Resnick Ault and John Pickering |
XOM | Exxon Fights Criminal Fracking Case | By Exxon Mobil Corporation NYSE XOM says that Pennsylvania prosecutors are unfairly picking on the oil behemoth in an effort to stop hydraulic fracturing or fracking in the gas rich state
The company s subsidiary XTO Energy Inc is fighting criminal charges over a 2010 wastewater spill that Pennsylvania authorities say leaked pollution into a tributary of the Susquehanna River The charges are the first of their kind against a public company drilling in Pennsylvania s Marcellus Shale the Wall Street Journal reported
In a recent motion XTO accused Attorney General Kathleen Kane of singling the company out as part of an arbitrary and improper law enforcement agenda whose goal might be to end hydro fracturing in Pennsylvania altogether
Kane fired back this week in a court filing that calls XTO s claims nothing more than weak attempts to obfuscate the truth the WSJ reported Carolyn Myers a spokeswoman for the attorney general s office told the WSJ that the state has convicted more than 800 individuals and companies of environmental crimes No single industry has been targeted she said
The case involves a 57 000 gallon spill of wastewater that had been used in fracking operations in the north central part of Pennsylvania four years ago Fracking requires blasting millions of gallons of water sand and chemicals into dense shale rock to crack open deposits of natural gas and much of the liquid returns to the surface XTO had arranged for contractors to store the flowback fluid in large tanks where it could be treated and reused for other fracking jobs
When a Pennsylvania inspector showed up unannounced at the storage site however the state employee found that wastewater was leaking from a partially open valve The discovery set in motions investigations by Pennsylvania s Department of Environmental Protection and the U S Environmental Protection Agency the WSJ noted
XTO maintains that the contractor is responsible for the leak and that the energy firm therefore can t be held liable In July 2013 XTO settled civil litigations that it violated the federal Clean Water Act and agreed to pay a 100 000 penalty and take measures to prevent wastewater spills
In September Pennsylvania prosecutors filed eight criminal misdemeanor charges against XTO Each charge carries a maximum penalty of 25 000 a day The company in response called the criminal charges unwarranted and legally baseless because neither XTO nor any of its employees intentionally recklessly or negligently discharged produced water on the site according to a statement |
XOM | Argentina Energy Assets Profit From The Rebound Following Court Loss | While the energy industry in Argentina is a long way from full recovery due to the actions of its Government and a recent adverse court ruling YPF S A NYSE YPF and other stocks have begun the rally This should have investors reacting to how undervalued the energy assets are in the country Just last week Americas Petrogas TBX BOE a Canadian oil and gas concern partnered with Exxon Mobil NYSE XOM received a very favorable independent study about its holdings in the Neuguen Basin According to the independent report by Ryder Scott Company there are 56 1 billion of oil equivalents that are recoverable with another 8 3 billion potential About the report Barclay Hambrook President and CEO of Americas Petrogas stated We are delighted with the findings of Ryder Scott s independent evaluation of the unconventional resource potential across Americas Petrogas Neuqu n Basin blocks This evaluation helps highlight the very large upside attributable to Americas Petrogas unconventional shale acreage in the Neuqu n Basin As detailed in the video Americas Petrogas and Exxon Mobil are both very bullish about shale production in Argentina From across the other pond CNOOC NYSE CEO the Chinese oil giant obviously shares that outlook and is finalizing a deal with YPF S A to further develop shale resources in Argentina According to a Bloomberg piece by Pablo Gonzalez Argentina Prepares China Shale Deal to Boost Gas Reserves CNOOC is nearing a definitive deal to explore and develop deposits in the Vaca Muerta formation either as part of its Bridas Corp joint venture with the billionaire Bulgheroni brothers or with the Bridas run Pan American Energy LLC After Argentina s recent court loss at the appeals level in New York on 1 5 billion in defaulted debt the exchange traded fund for the country Global X FTSE Argentina NYSE ARGT is down almost 3 for the last week of market action But for 2013 it has risen by almost 8 The last month of trading lifted it nearly 6 with the court case reversing the bullish trajectory The ARGT is certainly appealing for a full country play on Argentina as it consists of assets that match the performance of the top twenty companies in the country For a large cap energy stock the obvious choice is YPF S A which has already rewarded its shareholders with a gain of over 44 for the last year Americas Petrogas is a small cap with valuable holdings in oil and gas in Argentina too and noteworthy for investors wanting a position in that group |
XOM | Natural Gas Build Below 5 Year Average | The U S Energy Department s weekly inventory release showed a larger than expected rise in natural gas supplies on account of weak demand However on a slightly bullish note the storage build was smaller than the benchmark 5 year average gain for the week About the Weekly Natural Gas Storage Report The Weekly Natural Gas Storage Report brought out by the Energy Information Administration EIA every Thursday since 2002 includes updates on natural gas market prices the latest storage level estimates recent weather data and other market activities or events The report provides an overview of the level of reserves and their movements thereby helping investors understand the demand supply dynamics of natural gas It is an indicator of current gas prices and volatility that affect businesses of natural gas weighted companies and related support plays Analysis of the Data Stockpiles held in underground storage in the lower 48 states rose by 58 billion cubic feet Bcf for the week ended Aug 30 2013 higher than the guided range of 53 57 Bcf gain as per the analysts surveyed by Platts the energy information arm of McGraw Hill Financial Inc MHFI The increase the twenty first injection of 2013 also exceeded last year s build of 33 Bcf but was lower than the 5 year 2008 2012 average addition of 60 Bcf for the reported week Following past week s build the current storage level at 3 188 trillion cubic feet Tcf is now 43 Bcf 1 4 above the 5 year average However supplies are still down 210 Bcf 6 2 from the last year s level Natural gas stocks hit an all time high of 3 929 Tcf in 2012 as production from dense rock formations shale through novel techniques of horizontal drilling and hydraulic fracturing remained robust In fact the oversupply of natural gas pushed down prices to a 10 year low of 1 82 per million Btu MMBtu during late Apr 2012 referring to spot prices at the Henry Hub the benchmark supply point in Louisiana However things started to look up in 2013 This year cold winter weather across most parts of the country boosted natural gas demand for space heating by residential commercial consumers This coupled with flat production volumes meant that the inventory overhang was gone thereby driving commodity prices to around 4 40 per MMBtu in Apr the highest in 21 months Outlook During the last few weeks though natural gas demand has gone through a relatively lean period as mild weather from July through mid August prevailed over the country leading to tepid electricity draws to run air conditioners This has led to a slide in the commodity s price In fact healthy injections over last few weeks plus strong production have meant that supplies have overturned the deficit over the five year average for the first time since late March With more moderate weather expected during the next few weeks leading to reduced power demand natural gas price may experience another downward curve This in turn is expected to pull down natural gas producers particularly small ones Considering the turbulent market dynamics of the natural gas industry we advocate big relatively low risk names like Exxon Mobil Corp XOM and Chesapeake Energy Corp CHK both Zacks Rank 3 Hold stocks However one company that stands out is Range Resources Corp RRC This Zacks Rank 1 Strong Buy independent natural gas producer has been one of the better performing S P stocks since the start of 2013 gaining 25 during the period Most of the gains have been driven by its exposure to the high return Marcellus Shale play as well as the company s above average production growth |
XOM | Natural Gas Retreats From 2 Month High Which Stocks Benefit | Natural gas spot prices rallied to 3 72 per million Btu MMBtu on Thursday Sep 19 the highest in two months following the U S Energy Department s weekly inventory release that showed a smaller than expected rise in the commodity s supplies On a further bullish note the storage build was also lower than the benchmark 5 year average gain for the week However natural gas ended slightly lower Friday at 3 69 per MMBtu on profit taking and mild weather forecasts About the Weekly Natural Gas Storage Report The Weekly Natural Gas Storage Report brought out by the Energy Information Administration EIA every Thursday since 2002 includes updates on natural gas market prices the latest storage level estimates recent weather data and other market activities or events The report provides an overview of the level of reserves and their movements thereby helping investors understand the demand supply dynamics of natural gas It is an indicator of current gas prices and volatility that affect businesses of natural gas weighted companies and related support plays Analysis of the Data Stockpiles held in underground storage in the lower 48 states rose by 46 billion cubic feet Bcf for the week ended Sep 13 2013 below the guided range of 55 59 Bcf gain as per the analysts surveyed by Platts the energy information arm of McGraw Hill Financial Inc MHFI Moreover the increase the twenty third injection of 2013 was lower than both last year s build of 61 Bcf and the 5 year 2008 2012 average addition of 74 Bcf for the reported week Despite past week s modest build the current storage level at 3 299 trillion cubic feet Tcf is still 18 Bcf 0 5 above the 5 year average However supplies are down 187 Bcf 5 4 from the last year s level Natural gas stocks hit an all time high of 3 929 Tcf in 2012 as production from dense rock formations shale through novel techniques of horizontal drilling and hydraulic fracturing remained robust In fact the oversupply of natural gas pushed down prices to a 10 year low of 1 82 per million Btu MMBtu during late Apr 2012 referring to spot prices at the Henry Hub the benchmark supply point in Louisiana However things started to look up in 2013 This year cold winter weather across most parts of the country boosted natural gas demand for space heating by residential commercial consumers This coupled with flat production volumes meant that the inventory overhang was gone thereby driving commodity prices to around 4 40 per MMBtu in Apr the highest in 21 months Outlook However with moderate weather expected during the next few weeks leading to reduced power demand natural gas price may experience another downward curve This in turn is expected to pull down natural gas producers particularly small ones Considering the turbulent market dynamics of the natural gas industry we advocate big relatively low risk names like Exxon Mobil Corp XOM and Chesapeake Energy Corp CHK both Zacks Rank 3 Hold stocks However one company that stands out is Range Resources Corp RRC This Zacks Rank 1 Strong Buy independent natural gas producer has been one of the better performing S P stocks since the start of 2013 gaining more than 25 during the period Despite this price appreciation we remain optimistic on the firm s near term prospects supported by its exposure to the high return Marcellus Shale play as well as the company s above average production growth |
TEVA | 4 Stocks To Watch GSUM MRTX ALB BITA | Gridsum Holding Inc NASDAQ GSUM has been up four days in a row in a lousy market That s a good sign of relative strength It did pop to a new high to almost 14 00 on Thursday up 11 cents to 13 39 on 11 million shares traded and backed off I d watch this one going forward because if it gets through 13 94 which is the highest this stock has reached since Dec 2016 my next target going forward is 16
Swing trade Mirati Therapeutics Inc NASDAQ MRTX is doing great popping another 70 cents or 2 7 to 26 60 on 463 592 shares traded on Thursday Ever since it popped and pulled back at about the 10 level it has been trending nicely At this point it s forming a very nice bull coil which I think will result in a breakout and a run to the 30 31 range and then beyond
Stocks on the Short Side
Albemarle Corporation NYSE ALB was down 2 39 or 2 to 109 20 on 2 million shares traded on Thursday It rolled over and was unable to bounce more than a day It looks like it wants to run down to 102 3 and then to about 88 90
Bitauto Holdings Limited NYSE BITA dropped 2 07 or 6 to 32 72 on 869 556 shares traded on Thursday It s rolling over after getting smashed in November It rallied for a couple months back to what looked like the declining topsline to me At this point the rollover is beginning Targets are 28 and then 21 22
On the long side stocks included CNH Industrial N V NYSE CNHI California Resources Corporation NYSE CRC Constellium N V NYSE CSTM Etsy Inc NASDAQ ETSY EZCORP Inc NASDAQ EZPW Phoenix New Media Limited NYSE FENG GRIDSUM HOLDING INC GSUM Iovance Biotherapeutics Inc NASDAQ IOVA Mirati Therapeutics Inc NASDAQ MRTX Meritor Inc NYSE MTOR Mazor Robotics Ltd NASDAQ MZOR Nektar Therapeutics NASDAQ NKTR Open Text Corporation TO OTEX QuinStreet Inc NASDAQ QNST Ferrari N V NYSE RACE Shutterfly Inc NASDAQ SFLY Teva Pharmaceutical Industries Limited NYSE TEVA Twitter Inc NYSE TWTR Viking Therapeutics Inc NASDAQ VKTX Xylem Inc NYSE XYL and Zafgen Inc NASDAQ ZFGN
Short side included Argan Inc NYSE AGX Albemarle Corporation NYSE ALB Bitauto Holdings Limited NYSE BITA and The Trade Desk Inc NASDAQ TTD |
TEVA | Israel stocks higher at close of trade TA 25 up 0 59 | Investing com Israel stocks were higher after the close on Wednesday as gains in the Insurance Biomed and Financials sectors led shares higher
At the close in Tel Aviv the TA 25 gained 0 59
The best performers of the session on the TA 25 were OPKO Health Inc TA OPK which rose 3 68 or 127 points to trade at 3577 at the close Meanwhile Melisron TA MLSR added 2 62 or 420 points to end at 16450 and Mizrahi Tefahot TA MZTF was up 1 88 or 87 points to 4726 in late trade
The worst performers of the session were Perrigo TA PRGO which fell 1 24 or 430 points to trade at 34300 at the close Elbit Systems TA ESLT declined 1 01 or 380 points to end at 37150 and Teva TA TEVA was down 0 57 or 110 points to 19230
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 225 to 125 and 97 ended unchanged
Crude oil for October delivery was down 0 20 or 0 09 to 44 74 a barrel Elsewhere in commodities trading Brent oil for delivery in November fell 0 36 or 0 17 to hit 47 09 a barrel while the December Gold contract fell 0 42 or 5 75 to trade at 1348 25 a troy ounce
USD ILS was down 0 10 to 3 7501 while EUR ILS fell 0 20 to 4 2166
The US Dollar Index was up 0 16 at 94 95 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 45 | Investing com Israel stocks were lower after the close on Tuesday as losses in the Banking Financials and Oil Gas sectors led shares lower
At the close in Tel Aviv the TA 25 lost 0 45 to hit a new 1 month low
The best performers of the session on the TA 25 were Teva TA TEVA which rose 2 53 or 480 points to trade at 19440 at the close Meanwhile OPKO Health Inc TA OPK added 1 75 or 64 points to end at 3719 and Perrigo TA PRGO was up 1 44 or 500 points to 35280 in late trade
The worst performers of the session were First International Bank of Israel TA FTIN which fell 2 78 or 135 points to trade at 4715 at the close Avner L TA AVNRp declined 2 29 or 5 7 points to end at 243 3 and Delek Drilling LP TA DEDRp was down 1 98 or 26 points to 1286
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 172 to 169 and 106 ended unchanged
Crude oil for October delivery was down 2 92 or 1 35 to 44 94 a barrel Elsewhere in commodities trading Brent oil for delivery in November fell 2 34 or 1 13 to hit 47 19 a barrel while the December Gold contract rose 0 25 or 3 25 to trade at 1328 85 a troy ounce
USD ILS was up 0 47 to 3 7846 while EUR ILS rose 0 52 to 4 2542
The US Dollar Index was up 0 25 at 95 36 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 11 | Investing com Israel stocks were higher after the close on Wednesday as gains in the Biomed Banking and Technology sectors led shares higher
At the close in Tel Aviv the TA 25 added 0 11
The best performers of the session on the TA 25 were OPKO Health Inc TA OPK which rose 3 52 or 131 points to trade at 3850 at the close Meanwhile Teva TA TEVA added 2 37 or 460 points to end at 19900 and Perrigo TA PRGO was up 2 04 or 720 points to 36000 in late trade
The worst performers of the session were Gazit Globe TA GZT which fell 2 24 or 81 points to trade at 3542 at the close Nice Ltd TA NICE declined 2 02 or 500 points to end at 24230 and Ormat Technologies TA ORA was down 1 97 or 360 points to 17920
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 214 to 135 and 98 ended unchanged
Crude oil for October delivery was down 2 20 or 0 99 to 43 91 a barrel Elsewhere in commodities trading Brent oil for delivery in November fell 2 06 or 0 97 to hit 46 13 a barrel while the December Gold contract rose 0 16 or 2 15 to trade at 1325 85 a troy ounce
USD ILS was up 0 08 to 3 7887 while EUR ILS rose 0 27 to 4 2589
The US Dollar Index was down 0 09 at 95 45 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 16 | Investing com Israel stocks were higher after the close on Thursday as gains in the Real Estate Banking and Oil Gas sectors led shares higher
At the close in Tel Aviv the TA 25 rose 0 16
The best performers of the session on the TA 25 were Azrieli Group TA AZRG which rose 3 77 or 600 points to trade at 16500 at the close Meanwhile Strauss Group TA STRS added 2 39 or 140 points to end at 6000 and Avner L TA AVNRp was up 2 37 or 5 7 points to 246 1 in late trade
The worst performers of the session were Perrigo TA PRGO which fell 2 94 or 1060 points to trade at 34940 at the close Teva TA TEVA declined 1 41 or 280 points to end at 19620 and OPKO Health Inc TA OPK was down 0 44 or 17 points to 3833
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 187 to 159 and 101 ended unchanged
Crude oil for October delivery was up 0 69 or 0 30 to 43 88 a barrel Elsewhere in commodities trading Brent oil for delivery in November rose 1 44 or 0 66 to hit 46 51 a barrel while the December Gold contract fell 0 12 or 1 55 to trade at 1324 55 a troy ounce
USD ILS was down 0 52 to 3 7682 while EUR ILS fell 0 58 to 4 2366
The US Dollar Index was up 0 03 at 95 36 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 90 | Investing com Israel stocks were higher after the close on Sunday as gains in the Communication Real Estate and Technology sectors led shares higher
At the close in Tel Aviv the TA 25 added 0 90
The best performers of the session on the TA 25 were Elbit Systems TA ESLT which rose 2 48 or 860 points to trade at 35560 at the close Meanwhile Paz Oil TA PZOL added 2 44 or 1460 points to end at 61220 and Bezeq TA BEZQ was up 2 24 or 16 5 points to 752 0 in late trade
The worst performers of the session were Teva TA TEVA which fell 0 76 or 150 points to trade at 19470 at the close OPKO Health Inc TA OPK added 0 16 or 6 points to end at 3839 and Azrieli Group TA AZRG was up 0 18 or 30 points to 16530
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 226 to 113 and 108 ended unchanged
Crude oil for November delivery was unchanged 0 00 or 0 00 to 43 62 a barrel Elsewhere in commodities trading Brent oil for delivery in November fell 1 22 or 0 57 to hit 46 02 a barrel while the December Gold contract fell 0 36 or 4 75 to trade at 1313 25 a troy ounce
USD ILS was up 0 07 to 3 7766 while EUR ILS fell 0 66 to 4 2151
The US Dollar Index was unchanged 0 00 at 96 06 |
XOM | ExxonMobil Signs Deal With Rosneft s Igor Sechin | By Texas based oil giant ExxonMobil NYSE XOM and Russia s state controlled oil company Rosneft MCX ROSN shook hands Friday while the U S and European nations continue to discuss additional sanctions to condemn the Russian regime for President Vladimir Putin s actions in Ukraine
Exxon signed the agreement with Rosneft s CEO Igor Sechin at a forum in St Petersburg an event that some U S oil companies avoided after U S State Department officials called for a boycott The pact solidifies a joint project to drill for oil in the Arctic and Siberia and to liquefy natural gas for export to the Far East according to a statement from Rosneft
Russia s state controlled gas company Gazprom signed a landmark 400 billion agreement Wednesday to supply China with 38 billion cubic meters of natural gas annually for 30 years
Of U S oil companies Exxon has the most invested in Russia under a series of joint ventures with Rosneft The two already produce oil in Russia s Far East and plan to drill for exploration in the Kara Sea this year They also have several licenses to explore for oil in large areas of the Arctic Ocean
So far U S sanctions against Russia have targeted individuals like Sechin and not entire industries but the U S has threatened stronger measures if Russia interferes with Ukraine s presidential election scheduled for Sunday U S sanctions against Sechin prevent him from traveling to the U S and freeze any assets he holds in the U S though Sechin has said he has no accounts or property there
Sechin told reporters Thursday that the sanctions have a theoretical character for me personally We will continue to work and this has no impact on our work with American partners We appreciate the cooperation |
XOM | Exxon To Share Moscow Stage With Rosneft | By Exxon Mobil NYSE XOM CEO Rex Tillerson will speak Monday at a summit in Moscow despite requests from the U S government to isolate Russia over its actions in Ukraine according to the program s online schedule
Russia s state controlled gas company Gazprom MCX GAZP stopped supply natural gas on credit to Ukraine on Monday saying it will only supply gas Ukraine pays for the New York Times reported Ukraine claims Gazprom is overcharging
Tillerson s scheduled speech at the World Petroleum Congress a major industry event hosted by an independent organization every three years is a few months before Exxon plans to drill its first well in Russian Arctic waters with state controlled oil company Rosneft MCX ROSN The U S said it won t send government officials to the meeting and discouraged U S senior executives from attending
Exxon s chief will stand with Rosneft s chief Igor Sechin who is closely connected to Russian president Vladimir Putin and was sanctioned by the U S in April The sanction prevents Sechin from travelling to the U S and bans American citizens from conducting business with him but not his company
The two companies signed an agreement in May in St Petersburg at a business forum that solidified the joint project to drill in the Arctic and Siberia and to liquefy natural gas for export to the Far East while the U S and Europe discussed whether to impose harsher sanctions on Russia to condemn its treatment of Ukraine Many U S companies boycotted the forum following suggestions from the U S State Department
The partnership with Russia s massive oil producer is one of Texas based Exxon s most promising opportunities to find new oil reserves Initial drilling in August is expected to cost 3 2 billion and could hold billions of barrels of oil though it would be years before the companies could produce meaningful amounts of crude from the Arctic well
Aside from the gas war Ukrainian officials have accused Russia of rolling tanks into their country to support pro Russian separatists The U S and other countries have backed Ukraine s claim but Russia has denied arming the separatists |
XOM | Executive Order On LGBT Rights Could Have Profound Effect | By President Obama s executive order banning LGBT discrimination by businesses that win federal contracts will be celebrated by millions of working Americans and their supporters even as it underscores the White House s belief that Congress isn t likely to move forward in extending these protections across the private sector
It s not yet clear how this executive order will specifically affect the thousands of businesses from major defense contractors to small businesses that operate cafeterias inside federal buildings The president announced Monday that he s instructed his staff to prepare for his signature an Executive Order that prohibits federal contractors from discriminating on the basis of sexual orientation or gender identity the White House said in a statement
Any details will come when that process is done said Christy Mallory senior counsel at the Williams Institute at the University of California Los Angeles School of Law Based on other non discrimination orders that exist companies will have to comply by either writing it into their existing anti discrimination rule or signing affidavits to pledge not to discriminate on the basis of sexual orientation and gender identity
Whatever comes out of the White House will likely affect the wording of existing anti discrimination rules at the Department of Labor outlined here which prohibit contractors with more than 10 000 worth of federal government business from discriminating in employment decisions on the basis of race color religion sex or national origin In the future that will include discrimination based on sexual orientation and gender identity
One of the more immediate results of the president s order may already be taking place in the legal departments of big companies that don t want to risk losing lucrative federal contracts In April Exxon Mobil Corporation NYSE XOM blocked attempts by some shareholders to implement equal employment opportunity policies
Though the company claims to have a zero tolerance policy against such discrimination it hold less legal weight than the proposed protections Now because Exxon is a beneficiary of taxpayer funded business through the federal government the company will have to comply or risk losing access to government contracts
According to Williams seven of the top 50 federal contractors have resisted adding sexual orientation to the list of conditions that cannot be used to discriminate against employees or potential hires The seven companies are
Exelis Inc NYSE XLS a Mclean Virginia based defense contractor that makes night vision equipment and other surveillance and reconnaissance products for the Department of Defense
Veritas Capital a New York based private equity firm that focuses on aerospace defense and national security industries
General Atomics a San Diego based defense contractor specializing in nuclear power for unmanned surveillance aircraft and other technologies
TriWest Healthcare Alliance a Phoenix Arizona based manager of health benefits for Department of Defense employees and military families
Sierra Nevada Corporation a Sparks Nevada based defense electronics engineering company
Coins N Things the country s largest gold wholesaler based in Bridgewater Massachusetts
Refinery Associates of Texas a New Braunfels Texas based petroleum company
About half of the top 50 contractors also have no rules about discriminating on the basis of gender identity according to the Williams Institute report released in May The institute estimates that the executive order will cover about 27 5 million American workers from discrimination based on sexual orientation or gender identity
It s legal to fire or refuse to hire people on the basis of sexual orientation or gender identity in 29 states and under the current divisive political climate with Republican incumbents struggling to keep strict social conservatives from breaking rank and mid term elections coming later this year it s unlikely that Capitol Hill will move to blanket the country with a federal protection for the nation s gay population against the will of state legislators
Which leaves Obama with his executive power to send a message to Congress by changing what he can from the Oval Office as he did in February when he ordered companies that do business with the federal government to pay their workers an hourly minimum wage of 10 10 beginning next year |
XOM | Exxon Mobile 2Q Earnings Fell 57 | Exxon Mobile reported earnings this morning and according to Morningstar the company s second quarter earnings fell 57 amid weaker refining margins and volume and as the year earlier period included a net asset sale gain of 7 5 billion Exxon Mobil reported a profit of 6 86 billion or 1 55 a share down from 15 91 billion or 3 41 a share a year earlier Revenue decreased 16 to 106 5 billion From a technical perspective even though the stock price today is under some pressure as it s been down almost 2 intra day the uptrend still remains intact The chart above is a weekly chart showing price action in the stock going back to 2010 I believe as long as the stock price can remain above that trend line it is not time to jump ship just yet Although from a fundamental perspective it probably makes sense to be cautious Taking a closer look using the daily chart we can see today s drop has indeed found support at the midpoint of the most current trading range that coincides with a previous open gap or settlement price We should have a lot of support here and into the 90 level As long as we remain on the positive side of that trend line I see no reason why this stock price can not eventually hit a target price of around 99 100 |
XOM | That s One Scary Jobs Chart | Words mean little on Fridays in the Wall Street Daily Nation Instead we let pretty pictures do the talking for us Each week I select a handful of graphics to put important economic and investing news into perspective for you So it s time for me to mostly shut up and let that happen Out With The OldFor over a year now I ve been sharing what s become known as The Scariest Jobs Chart Ever Specifically it shows the pace of recovery in the labor market since the start of the Great Recession As I ve said countless times before it s been mind numbingly slow and fragile The latest iteration shows steady progress We re not back to even yet But we re getting closer In turn the chart isn t so scary anymore Sadly I ve found a replacement And In With The NewHere s the new Scariest Jobs Chart Ever in all its economic suckiness It dissects the latest employment figures based on part time versus full time jobs As you can see we re becoming an economy of part timers What gives A little something called the law of unintended consequences Instead of bearing the burden of Obamacare or passing it along to consumers via price hikes which isn t possible in many low margin businesses companies are simply relying on part timers over full timers more and more That way they don t have to pay for medical insurance This isn t exactly a strong foundation upon which to build an economic recovery Hence the moniker Rest assured we ll keep tracking this scary chart and keep you updated on any progress New World OrderIf this isn t indicative of a change in world power I don t know what is Big Oil stocks like Exxon Mobil XOM and Royal Dutch Shell RDS A are getting clobbered by the little guys That is small oil and gas explorers with exposure to high margin shale operations from Texas to North Dakota The investment takeaway If you need me to spell it out we re in trouble But in case we have anyone reading our column in braille today Go long shale gas investments with high margin operations like EOG Resources EOG Pioneer Natural Resources PXD and Continental Resources CLR |
XOM | U S Stocks Post First 4 Day Losing Streak Of 2013 | Stocks extended their recent losing streak with the major market indices ending near their session lows posting their fourth consecutive day of declines for the Dow and the S P 500 There was little economic data to influence trading Monday with market participants largely left to wait for release of minutes from the last meeting of the Federal Open Markets Committee meeting and the yearly meeting of central bankers in Jackson Hole Wyo later in the week Declines were broad based with the steepest declines among energy and financial stocks and shares of healthcare companies the lone sector with finish in the black Treasury prices continued their skid as traders look toward an expected end to the Federal Reserve massive bond buying program fueling worries the higher financing costs will stifle economic growth and liquidity Industrial metals slumped with concerns higher mortgage costs will slow home building Crude oil for September delivery settled 36 cents at 107 10 per barrel September natural gas was up 10 cents at 3 46 per 1 million BTU December gold fell 5 20 to 1 365 80 per ounce while September silver dropped 14 cents to 23 17 per ounce September copper fell 3 cents to settle at 3 33 per pound Here s Where The U S Markets Stood At Day s EndDow Jones Industrial Average down 70 73 0 47 to 15 010 74S P 500 down 9 77 0 59 to 1 646 06Nasdaq Composite Index down 13 69 0 38 to 3 589 09GLOBAL SENTIMENTHang Seng Index down 0 24 Shanghai China Composite Index up 0 83 FTSE 100 Index down 0 53 UPSIDE MOVERS SFUN Bolts sharply higher following positive real estate data out of China overnight HNR Raised to Buy from Hold at Wunderlich Securities Price target nearly doubled climbing by 4 25 to 9 a share EFUT Inks deal with Rainbow Department Stores supplying software to the Chinese retailer facilitating easy access between sales clerks and customers DOWNSIDE MOVERS CIE Fails to find hydrocarbons in Ardenneses 1 exploratory well in the Gulf of Mexico A working petroleum system is found in another exploratory well offshore Gabon but the company and its partners will temporarily abandon it until additional analysis can be preformed IOC Extending steep losses for a second day despite the natural gas company saying talks are continuing with Exxon Mobil XOM about monetizing its assets in Papua New Guinea in direct contrast to market speculation GTXI Clinical trials for prospective lung cancer drug fails to meet co primary endpoints After Hours Stock News From Copyright 2013 MT Newswires a Division of MidnightTrader Inc |
XOM | Natural Gas Build Tops 5 Year Average | The U S Energy Department s weekly inventory release showed a smaller than expected rise in natural gas supplies However on a bearish note the storage build was above the benchmark 5 year average level About the Weekly Natural Gas Storage Report The Weekly Natural Gas Storage Report brought out by the Energy Information Administration EIA every Thursday since 2002 includes updates on natural gas market prices the latest storage level estimates recent weather data and other market activities or events The report provides an overview of the level of reserves and their movements thereby helping investors understand the demand supply dynamics of natural gas It is an indicator of current gas prices and volatility that affect businesses of natural gas weighted companies and related support plays Analysis of the Data Stockpiles held in underground storage in the lower 48 states rose by 65 billion cubic feet Bcf for the week ended Aug 9 2013 below the guided range of 68 72 Bcf gain as per the analysts surveyed by Platts the energy information arm of McGraw Hill Financial Inc MHFI However the increase the eighteenth injection of 2013 exceeded both last year s build of 20 Bcf and the 5 year 2008 2012 average addition of 42 Bcf for the reported week Following past week s build the current storage level at 3 006 trillion cubic feet Tcf is now 43 Bcf 1 5 above the 5 year average However supplies are still down 252 Bcf 7 7 from the last year s level Natural gas stocks hit an all time high of 3 929 Tcf in 2012 as production from dense rock formations shale through novel techniques of horizontal drilling and hydraulic fracturing remained robust In fact the oversupply of natural gas pushed down prices to a 10 year low of 1 82 per million Btu MMBtu during late Apr 2012 referring to spot prices at the Henry Hub the benchmark supply point in Louisiana However things started to look up in 2013 This year cold winter weather across most parts of the country boosted natural gas demand for space heating by residential commercial consumers This coupled with flat production volumes meant that the inventory overhang was gone thereby driving commodity prices to around 4 40 per MMBtu in Apr the highest in 21 months Outlook During the last few weeks though natural gas demand has gone through a relatively lean period as mild weather has prevailed over the country leading to tepid electricity draws to run air conditioners This has led to another slide in the commodity s price In fact healthy injections over last few weeks plus strong production have meant that supplies have overturned the deficit over the five year average for the first time since late March This in turn is expected to pull down natural gas producers particularly small ones like Comstock Resources Inc CRK While big players like Chesapeake Energy Corp CHK and Exxon Mobil Corp XOM both Zacks Rank 3 Hold stocks are better equipped than others we caution investors about Comstock which also sports a Zacks Rank 3 Hold With the commodity s price staying on the defensive at around 3 40 per MMBtu brokerage analysts have downgraded their forecasts on natural gas weighted companies and related support plays leading to negative estimate revisions |
TEVA | Can PolarityTE Grow Skin From Scratch | What if we can grow fully functional skin hair follicles and all with just a biopsy It s been done successfully in large animal studies already and one biotech firm called PolarityTE Inc NASDAQ COOL is now trying it for the first time on humans In just a few weeks we ll find out if it works
The company now a year old 140M startup just announced the first applications of its skin regenerating SkinTE platform on its initial batch of patients Included are those with burn wounds surgical reconstructions and unsightly scars Some involved have even had their already healed skin grafts removed and replaced with the experimental technology
It sounds like a hustle but it s being backed by some of the biggest names in biotech including former Teva
Teva Pharmaceutical NYSE TEVA Chairman Dr Phillip Frost who owns nearly half a million shares and Medivation founder Dr Steven Gorlin now part of Pfizer NYSE PFE
The system itself is actually pretty simple to understand In the case of minor cuts and scrapes skin fully regenerates with little to no scarring Full skin regeneration is possible because of cells called LGR cells or leucine rich repeat containing G protein cells These cells communicate with other skin cells through chemical signaling to determine which kinds of skin cells are needed at different layers within the wound be they dermal subdermal epidermal or hair follicles In minor wounds LGR cells can signal across the wound for fully functional skin regeneration
But with serious injuries like major burns or large surgical scars LGR cells cannot chemically signal across the area of the wound The result is an area of disorganized undifferentiated skin cells that serve as little more than a barrier Hair is lost sensation is dull at best thickness color and texture are all off
Standard skin grafts while obviously better than an open wound are little more than aided scarring Partial thickness autologous skin grafts only take the upper layers of skin and full thickness skin grafts while more fully functional are risky for patients and unfeasible for larger wounds
The company s founder Dr Denver Lough while working at Johns Hopkins Hospital Department of Plastic and Reconstructive Surgery discovered that the protein human alpha defensin 5 HAD5 induces LGR cells to proliferate and migrate into wound beds in theory enabling full skin regeneration Basically a biopsy is seeded with LGR cells using HAD5 grown in vitro and then applied to the site of injury Soon after Lough made the discovery he resigned from Johns Hopkins to found PolarityTE pulling along many JHU physicians along with him including the director of the JHU burn center Dr Stephen Milner who now serves as the Chief Clinical Officer
The same cellular mechanisms can in theory be applied to many tissues in the human body with LGR cells directing the polarized regeneration of cartilage bone muscle and blood vessels PolarityTE has products in the proof of concept and preclinical stages for each of these applications which could end up becoming a turnkey solution to all manner of injuries and illnesses like cardiovascular disease muscle injury arthritis caused by the thinning of cartilage between joints etc No FDA Approval Required
It s not just the technology itself but the regulatory framework in which it operates that makes PolarityTE s platform disruptive There are no clinical trials required here meaning no Phase I Phase II or prohibitively expensive Phase III years long regulatory processes involved SkinTE is regulated under an FDA regime that requires no pre market clearance save a post market regulatory follow up That means SkinTE can go to market whenever PolarityTE s sales team feels it is ready to do so With the application of SkinTE to its first patients that process has already begun exactly one year since the company went public in December 2016 The same minimal regulations apply to all of its regenerative products in development Finances
There is one potential weak point in the case for PolarityTE It is low on cash for now As of August the company has only 3 5 million Though the sale of its SkinTE kits to burn centers across the country has already begun we do not know the hard numbers on its sales forecasts or margins yet Nevertheless the company is moving forward quickly and just announced a move to a 200 000 ft2 facility to expand manufacturing capabilities in anticipation of demand There will probably be some equity financing ahead to fund a full scale rollout which could dilute the holdings of current investors somewhat
Regardless the biggest influence on the stock price going into 2018 will be results reported on the initial patient batches as data comes in If results are positive PolarityTE will likely refinance on the back of that news at an elevated share price in order to fund a full marketing plan
If results are negative then this will obviously put into question PolarityTE s entire business model making early data a likely binary event Investors will find out the answer in a matter of months |
TEVA | Israel stocks higher at close of trade TA 25 up 0 43 | Investing com Israel stocks were higher after the close on Thursday as gains in the Technology Biomed and Oil Gas sectors led shares higher
At the close in Tel Aviv the TA 25 added 0 43
The best performers of the session on the TA 25 were Perrigo TA PRGO which rose 2 22 or 780 points to trade at 35950 at the close Meanwhile Delek Group TA DLEKG added 2 00 or 1540 points to end at 78590 and Teva TA TEVA was up 1 46 or 300 points to 20780 in late trade
The worst performers of the session were Israel Corp TA ILCO which fell 1 93 or 1200 points to trade at 61020 at the close Frutarom TA FRUT declined 1 63 or 320 points to end at 19260 and Melisron TA MLSR was down 1 22 or 200 points to 16250
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 198 to 143 and 97 ended unchanged
Crude oil for September delivery was down 0 05 or 0 02 to 40 81 a barrel Elsewhere in commodities trading Brent oil for delivery in October fell 0 44 or 0 19 to hit 42 91 a barrel while the December Gold contract rose 0 36 or 4 85 to trade at 1369 55 a troy ounce
USD ILS was up 0 05 to 3 8254 while EUR ILS fell 0 04 to 4 2611
The US Dollar Index was up 0 18 at 95 66 |
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