|Bid||0.00 x 3100|
|Ask||46.17 x 1000|
|Day's Range||45.40 - 47.14|
|52 Week Range||30.11 - 77.93|
|Beta (5Y Monthly)||1.36|
|PE Ratio (TTM)||17.35|
|Earnings Date||Jul. 31, 2020 - Aug. 04, 2020|
|Forward Dividend & Yield||3.48 (7.58%)|
|Ex-Dividend Date||May 12, 2020|
|1y Target Est||47.27|
Head of Macro Strategy at Academy Securities Peter Tchir joins Yahoo Finance’s Seana Smith to break down his outlook on the markets as coronavirus cases surpass 1.5M in the U.S., according to John Hopkins.
Director of Fiscal Policy at the American Action Forum Gordon Gray joins Yahoo Finance’s Seana Smith to break down the April jobs report and how some workers are making more on unemployment compared to their wages before the coronavirus pandemic.
EventShares Chief Investment Officer Ben Phillips joins Yahoo Finance’s Seana Smith to discuss the additional 3.169 million Americans that filed for unemployment last week amid the coronavirus.
In this episode of Influencers, Yahoo Finance's Editor-in-Chief Andy Serwer speaks with New York Stock Exchange President, Stacey Cunningham to discuss the U.S. economy, the stock market, and America’s path to recovery.
Canary LLC CEO Dan Eberhart joins Yahoo Finance’s Zack Guzman to discuss how the coronavirus is impacting the energy sector, as WTI crude tumbles amid storage capacity concerns.
JP Morgan Private Bank Head of Cross-Asset Thematic Strategy Anastasia Amoroso joins Yahoo Finance’s Seana Smith to discuss the latest market action as more states move to reopen their economies in the wake of the coronavirus.
Investing.com - Oil prices pushed higher Tuesday, amid signs producers are making good their promises to cut crude supply while demand picks up.
In recent years, it's become difficult to find high-quality stocks with dividend yields of 5% or more. While the COVID-19 pandemic is a terrible situation for the U.S. and its economy, it has created some opportunities for long-term investors, especially those who want dividend-paying stocks. With that in mind, here's why yield-seekers should take a closer look at Realty Income (NYSE: O), ExxonMobil (NYSE: XOM), and Wells Fargo (NYSE: WFC).
The proliferation of the coronavirus disease 2019 (COVID-19) within the U.S. and around the globe has led to record levels of volatility in the stock market and neck-breaking moves up and down in the major U.S. indexes. In fact, we saw the benchmark S&P 500 push into bear market territory at a quicker pace than in any previous correction in history. The thing is, you don't need to be a millionaire to make money in the stock market.
Oil majors had a good month in April, but don't read too much into the gains. There's a lot of backstory here -- and more pain ahead.
Oil markets surged higher Tuesday, amid signs that the worst of the short-term imbalance between supply and demand may now be over. AT 8:55 AM ET (1255 GMT), U.S. crude futures traded 13% higher at $23.14 a barrel, while the international benchmark Brent contract rose 8.9% to $29.62. "Considering ... the depths of demand destruction, markets are probably inclined to take any good news relatively quickly," said Daniel Hynes, senior commodity strategist at Australia and New Zealand Banking Group.
(Bloomberg) -- A lame-duck Texas regulator who proposed mandatory oil-output cuts said the effort is “dead” a day before the biggest U.S. crude-producing state was set to vote on the measure.Texas Railroad Commissioner Ryan Sitton said in an interview on Bloomberg TV that the three-member agency wasn’t prepared to vote on curtailing supplies in a process known as “pro-rationing.” His comments likely mark the end of a month-and-a-half-long saga that divided the shale industry over whether regulators should adopt OPEC-style production caps amid a historic collapse in crude prices.The unprecedented implosion of the entire oil industry has been so swift and severe that American companies have been turning off drilling rigs, demobilizing fracking crews, slashing jobs and shutting wells without the need for a government order. Fracking activity in U.S. fields has slumped 82% in the past seven weeks, while oil drilling is down 52%, according to data compiled by Bloomberg.“At this point we still are not ready to act, and so it’s too late, so there is no proposal to make,” Sitton, one of three Republicans on the commission, said Monday. “I think that pro-ration is now dead.”Exxon, Chevron and ConocoPhillips plan to curb as much as 660,000 barrels a day of combined American output by the end of June. Permian Basin producer Concho Resources Inc. has shut in about 4% to 5% of total output and warned last week that it will likely be forced to curtail even more.“The market forces are stronger than the threat of proration ever was,” said Cye Wagner, chairman of the Texas Alliance of Energy Producers, which was opposed to state quotas. “It would be more harmful to the industry than the market-driven response that’s coming.”Sitton, who lost the primary election for his own seat earlier this year, had been the only member of the Texas Railroad Commission -- the state’s chief energy regulator -- to come out in favor of production caps. Chairman Wayne Christian recently stated his opposition to cuts in an opinion piece for the Houston Chronicle, and Commissioner Christi Craddick had expressed numerous concerns during the agency’s most recent meeting.Among oil companies, Pioneer Natural Resources Co. and Parsley Energy Inc., founded by a father and his son, had been the biggest champions of instituting mandated cuts.But Exxon Mobil Corp. and Chevron Corp., along with a long list of independent producers, had argued that the market was already driving curtailments and that it was best for the government to stay out of it. The chief executive officer of Enterprise Products Partners LP even went so far as to say that quota-supporting producers were simply trying to skirt contractual obligations.$1,000 PenaltySitton’s proposal called for a 20% cutback in the state’s output, conditional on other states and nations making similar moves. The measure would have penalized producers who exceeded quotas to the tune of $1,000 a barrel. But Christian and Craddick both said they feared legal repercussions that would make such an effort ineffective.“I may be the only lawyer in the group, but I guarantee you this is going to the courthouse,” Craddick said last month.While the debate over production caps may be sidelined in Texas, other states are still considering whether such a response is warranted. Oklahoma is scheduled to discuss quotas on May 11 and North Dakota will take up the issue on May 20. Still, those efforts are likely a long shot without Texas on board.(Updates with Oklahoma, North Dakota meetings in final paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Oil prices managed to return to positive territory by Monday’s afternoon trading in New York, but could have trouble staying there after an industry regulator for Texas declared “dead” a plan to cut output in the largest oil-producing state in the U.S. Forecasts that the Energy Information Administration will report fairly largely weekly builds for crude, gasoline and distillates in its routine dataset due on Wednesday could also weigh on the more-than-60% recovery seen on the West Texas Intermediate crude benchmark over the past four sessions. U.K.-traded Brent, the global benchmark for oil, was up 10 cents, or 0.4%, at $26.54.
(Bloomberg) -- Turns out shutting an oil well is easy, in many cases it can be done with a few taps on an iPhone. Figuring out which to shut, and for how long, is the hard part.In the wake of a killer pandemic and the worst crude crash in history, the U.S. has become ground zero for a vast new experiment in the industry. Producers are shutting wells at a tremendous rate with oil prices sitting at historic lows. On Friday, Exxon Mobil Corp. said it will cut the number of its rigs in the Permian Basin by 75%, running just 15 by year’s end. Chevron Corp. said it’s now down to just five rigs there, a 71% drop.It’s a fetal-position strategy that could put a fifth of global crude production on the line.“The industry’s never faced shut-ins like we’re facing right now,” said Clay Williams, chief executive officer for National Oilwell Varco Inc., the biggest U.S. maker of oilfield gear, on an April 28 call with investors. “We are on the precipice of forced well shut-ins totaling 15 to 20 million barrels of oil per day.”Companies are deciding everything from which wells should be shut first to which should be closed for good, what the costs are, how easy it will be to restart them, and what fields may be too porous to handle a shutdown if you ease operations across hundreds, or even thousands, of wells at once.Curtailing the output from wells is relatively straightforward. The system of choice today for new wells in the shale patch involves the use of electric submersible pumps, or ESPs, that act as surveillance systems to organize and store data in a centralized location for monitoring and control. They send data from deep within the well to a remote telemetry unit on the surface that transmits it online to production managers.The goal of these devices is to prevent operating problems from afar before they lead to costly failures. At the same time, these systems allow managers to easily shut down a well as needed.It’s common practice to shut a well for a month or so while a fracking job is going on in a well nearby, according to Richard Spears, a 40-year veteran of the oil patch and vice president at Spears & Associates, a Tulsa-based industry consultant.Simple, Non-Eventful“You’ll be surprised perhaps how simple and non-eventful starting and stopping a shale well is,” Spears said by telephone. “In this world of automated operations, this can often be performed using an iPhone from a production manager’s spare bedroom where he might be working.”Exxon Chief Executive Officer Darren Woods on Friday said the company will cut back on its newest, most prolific wells first. That essentially allows Exxon to store oil in the ground until prices rise.“You’re better off deferring that high production rate into a period with better pricing,” Woods said on an investor call. “Depending on how the the market evolves we’ve got the flexibility to bring a lot of those wells back on quickly.”Generally, non-automated wells can be shut pretty easily as well, something that happens regularly for maintenance. To repair a well requires a service rig and crew to come out at about $500 an hour. In some cases, if wells are shut down for a long time, or permanently, companies will want to pull out expensive equipment to make sure it remains viable. That’s an effort that can cost $75,000 or more.Porous RocksBut there are concerns over the potential fallout from long-term shutdowns. Some operators outside the nation’s shale fields worry that as the flow in a well recedes, the porous nature of rocks in their fields could allow oil to migrate away from the well itself.For many companies, a key data point in deciding which wells to shut is the operating cost per barrel. Oil has traded in New York for less than $20 a barrel since April 16, closing at $19.78 on Friday. A study by BloombergNEF analysts shows that 45% of the production they surveyed is unprofitable at $30 a barrel while conventional, non-fracked wells and high-cost producers in the Bakken basin in Montana and North Dakota need crude to trade above $45 a barrel.Over the past month, the U.S., Canada and Brazil accounted for most of a 2.2 million barrel-a-day decline in supply, according to Fatih Birol, the executive director of the International Energy Agency, in an April 22 Bloomberg television interview.North Dakota has already seen roughly 6,200 wells shut, including 1,700 from shale producer Continental Resources Inc. The total closed-off amounts to more than a third of the state’s active wells.Overall, Continental eliminated 69,000 barrels a day in April, and the Oklahoma City-based company plans on cutting another 150,000 barrels a day in the next two months, according to industry consultant Rystad Energy. Other companies planning to curb output include ConocoPhillips, Cimarex Energy Co., Parsley Energy Inc., Concho Resources Inc. and Enerplus Corp.Operations in the Gulf of Mexico, meanwhile, will likely be the last to be shut. The challenge there is the miles of flow lines that carry the oil along the sea bed to processing facilities on shore. At such depths, the liquids in the lines could clog if shut off for too long. While Gulf platforms regularly shut off production for short periods as storms approach, it’s not feasible to keep them shut for long.“It’s a bad buffet of options,” said Ian Nieboer, a managing director at the industry research firm RS Energy Group, which has been fielding questions over the past few weeks from explorers on the economics of closing wells. “There’s no golden answer.”The U.S. isn’t the only country working through major shutdowns. As of last week, Western Canadian oil producers shut about 300,000 barrels of daily output, short of the 1 million to 1.5 million barrels that drillers eventually will need to curtail, Bank of Nova Scotia analyst Jason Bouvier said in a note. The earliest are by non-oil sands producers who don’t have direct access to refineries, Bouvier said.Canada’s oil-sands, the world’s third-largest crude reserve, present particular challenges. Thermal wells -- where steam is pumped into the ground to get the viscous oil to flow to the surface -- are risky to shut down because dialing back the injections can cause the reservoir to lock up, impairing how much oil can be recovered.To truly understand the costs of shutting production, timing matters, said Jon Gorrie, a principle analyst at Wood Mackenzie. “It’s one thing to flip a switch on stripper well, and it’s another thing to shut down a field and a battery,” Gorrie said. “What matters the most is the duration of time that you think we’re going to be shut in for.”Estimated Costs, according to Wood Mackenzie Ltd.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Investing.com - Oil markets weakened Monday, as a spat between the U.S. administration and China over the coronavirus pandemic fuelled fears of a new trade war, potentially curtailing already subdued global demand.
(Bloomberg) -- American shale explorers are rapidly crimping production in the country’s most prolific oil fields as the worst price crash in history threatens the industry’s survival.Three of the biggest oil explorers in the U.S. -- Exxon Mobil Corp., Chevron Corp., and ConocoPhillips -- plan to curb as much as 660,000 barrels a day of combined American output by the end of June. Across the county, crude production by all companies has already tumbled about 1 million barrels a day since mid-March, when OPEC and its allies clinched an historic deal to trim global supply.It’s too soon to tell how long the reductions will last but if implemented for a full year, they would overshadow any previous American production slide going back to at least 1984. Moreover, the pull-back puts the U.S. on track to fulfill the Trump administration’s pledge to removing 2 million barrels of daily supplies through market attrition.With the new reductions announced just two weeks after crude prices turned negative for the first time on record, resuscitating the market will come at a steep cost for an industry facing bankruptcies, job cuts and consolidation. For some explorers, austerity means slowing growth plans, while for others it means outright subtractions of oil volumes.Almost 40% of oil and natural gas producers face insolvency within the year if crude prices remain near $30 a barrel, according to a survey by the Federal Reserve Bank of Kansas City. Production shut-ins aren’t just a U.S. phenomenon: wells are being turned off from Scandinavia to Brazil as crude producers wilt under the crash.“You cut out what’s easiest to cut out. Right now that’s the Permian -- you lay down the rigs, walk away and you can always come back to it,” said Mark Stoeckle, a Boston-based fund manager at Adams Funds with $2.1 billion of assets. “It’s very different than other parts of the world” where you have to deal with production sharing agreements, government partners, tougher employment laws.Producers are cutting back more quickly than anyone foresaw as prices sink below break-even levels of even the most efficient explorers. In North Dakota, firms have shut in roughly one-third of the state’s oil production, with more than 40% of that reduction coming from a single company: Continental Resources Inc.In the past seven weeks, more than half of the American rig fleet has gone quiet, with the Permian Basin of West Texas and New Mexico accounting for 56% of the shutdown, according to Baker Hughes Co. data.Supermajors such as Exxon and Chevron -- latecomers to the shale revolution -- are better positioned than most producers to weather the storm, even as their own budgets take a hit.In The GroundWhile Exxon on Friday posted its first loss in at least three decades and Chevron slashed $2 billion off its spending plan, the companies have the capital to taper shale production until prices make a comeback.Exxon, which plans to curb about 100,000 barrels a day of Permian production during the current quarter, will focus on shutting younger, highly productive wells first. In a sense, the company is using the rocks surrounding those untapped wells as de facto storage.Chevron is chopping 125,000 barrels a day from its targeted exit rate for the Permian region this year and idling all but five drilling rigs, Chief Executive Officer Mike Wirth told Bloomberg TV. The company is aiming half its worldwide cuts at U.S. fields. The rest will occur as part of its host nations’ OPEC+ commitments, according to Chief Financial Officer Pierre Breber.“You can think of the U.S. as choices that we’re making to balance cash flow and long-term value,” Breber said. “Outside the U.S. you can think of it as OPEC+ agreements.”ConocoPhillips plans to cut even more deeply, curtailing worldwide production by 420,000 net barrels a day in June. That equates to about a third of Conoco’s first-quarter output. About 360,000 of those reductions will occur in U.S. fields.Independent Permian shale producer Concho Resources Inc. has already shut in about 4% to 5% of total output, and expects to keep its full-year production for the year around last year’s level. So far, most of the wells that have been shut were higher-cost, vertical wells, but Concho said future curtailments will likely include some horizontal ones -- industry shorthand for shale.While the supply curbs seem to have put a floor under oil prices, with the U.S. benchmark on Friday posting its first weekly gain in in a month, a sustained recovery will rely on even deeper cuts. If prices stay at their current level, hovering around $20 a barrel, shut-ins across the U.S. could reach 2 million barrels a day by June, according to Elisabeth Murphy, an analyst at consultant ESAI Energy.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Crude posted its first weekly gain in a month as global production cuts start to lift physical markets.Futures in New York rose 17% this week. Oil companies have announced major production closures with Chevron Corp. saying it will shut as much as 400,000 barrels of daily output and Exxon Mobil Corp. reporting it will cut rigs in the Permian Basin by 75% by the end of the year. Concho Resources Inc. said it’s curtailing about 4-5% of its production.At the same time, OPEC+’s pledge to trim supply by 9.7 million barrels a day has gone into effect. Algerian Energy Minister Mohamed Arkab, who holds OPEC’s rotating presidency, called on members of the cartel to implement more than 100% of their agreed production cuts.The market has rebounded on factors including “the expectation that the OPEC+ production cuts were going to start ramping up, that we continue to see signs that oil producers are going to be cutting their drilling activity, that we are going to see supplies tighten in the coming months,” said Gene McGillian, manager for market research at Tradition Energy.The price of real crude is reacting to the curbs, with key grades from the Caspian to the North Sea trending higher in recent days. Globally, the number of rigs drilling for oil and gas tumbled almost 20 percent in April, and in the U.S., the oil rig count dropped by 53 to 325, a seventh straight week of declines.Still, crude came off highs during the session on lingering concerns over a glut of oil and lack of places to store it. “We are going to be facing a storage capacity situation at Cushing,” said Robert Yawger, director of the futures division at Mizuho Securities USA, referring to the key U.S. hub in Oklahoma. Since crude plunged into negative territory last week, investors have been fleeing the nearest futures contracts, increasing volatility. The United States Oil Fund LP, which came under pressure from regulators last month due to the size of its WTI position, said on Friday that it will halve holdings in the July contract. The fund said it may expand investments to include products beyond the benchmark New York crude grade.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Here's what investors really need to know. Given that Q1 saw an oil price crash and coronavirus-related travel restrictions that caused demand to collapse, Exxon's modest drops in revenue and adjusted earnings are actually pretty impressive, especially compared to fellow major Royal Dutch Shell's 28.3% drop in revenue and 47.2% drop in adjusted net income.
A Wall Street selloff deepened on Friday as President Donald Trump threatened to impose new tariffs on Beijing over the coronavirus crisis, compounding fears about the pace of an economic recovery from a looming recession. Trump's threat pulled attention back to the trade war between the world's two largest economies, which have slapped tit-for-fat tariffs on each other's goods and kept global financial markets on tenterhooks for nearly two years.
Expect a “wide sloppy range” for the markets as individual states restart their economies while still managing the COVID-19 pandemic, says one top strategist.
(Bloomberg) -- Exxon Mobil Corp. and Chevron Corp. may be feeling the fallout of a historic oil-price crash amid the Covid-19 pandemic, but they haven’t completely forgotten to give a nod to concerns about climate change.Both oil giants mentioned green initiatives in their first-quarter earnings statements or presentations, albeit fleetingly. Exxon touted a previously announced model framework for industry-wide methane regulations, while Chevron said it planned to maintain its commitment to environmental, social and governance priorities.“We would expect that we will continue to reduce our greenhouse gas emissions irrespective of Covid or any of these other circumstances,” Chevron Chief Executive Officer Mike Wirth said in a response to a question on the company’s earnings call Friday.While Exxon and Chevron agree with the goals of the Paris Agreement to reduce greenhouse gas emissions, they haven’t allocated a chunk of their multibillion-dollar capital budgets toward low-carbon energy sources, unlike their European peers. Both Wirth and Exxon CEO Darren Woods said Friday that the world will need more oil and natural gas as economic growth resumes after the pandemic.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.