60.21 0.00 (0.00%)
After hours: 4:53PM EST
|Bid||60.07 x 1400|
|Ask||60.35 x 800|
|Day's Range||59.40 - 60.55|
|52 Week Range||50.13 - 71.01|
|Beta (3Y Monthly)||1.04|
|PE Ratio (TTM)||8.23|
|Earnings Date||Jan. 29, 2020 - Feb. 3, 2020|
|Forward Dividend & Yield||1.68 (2.83%)|
|1y Target Est||72.89|
The federal government's EIA report revealed that crude inventories rose by 1.4 million barrels, compared to the 1.6 million barrels increase that energy analysts had expected.
The Zacks Analyst Blog Highlights: JPMorgan Chase, Altria, ConocoPhillips, The Travelers Companies and Twitter
(Bloomberg) -- Oil dropped the most in seven weeks as American crude stockpiles are forecast to rise and U.S.-China trade talks stall.Futures fell 3.2% in New York, the biggest decline since Sept. 30. U.S. oil inventories probably rose by 1.5 million barrels last week, according to a Bloomberg survey ahead of a government report on Wednesday. Markets are also being pressured by the impasse in trade discussions between the U.S. and China. While Russia is unlikely to agree to deepen output cuts, it could extend existing curbs to support Saudi Arabia, Reuters reported.“We are going into this week with another storage build expected in the EIA’s report,” said Bob Yawger, director of futures division at Mizuho Securities USA. “The trade deal has soured and the vibe on the deal has turned a bit negative and that will affect demand too.”The ebb and flow of trade talks between Washington and Beijing has weighed on oil prices, which have fallen more than 15% from an April peak. The report that Russia isn’t considering deeper cuts follows news of other large producers in OPEC+ who aren’t pushing for deeper oil-supply cuts either, according to delegates across the coalition.“The market push down was already vulnerable,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “Russia is playing hardball going into an OPEC meeting, but they always do.”West Texas Intermediate for December delivery fell $1.84 to settle at $55.21 a barrel on the New York Mercantile Exchange. The front-month contract will expire on Wednesday.Brent for January settlement slipped $1.53 to end the session at $60.91 on the London-based ICE Futures Europe Exchange. The global benchmark crude traded at a $5.56 premium to WTI for the same month.U.S. crude stockpiles are at the highest level in four months. If official government data confirms the forecast in inventories on Wednesday, it would be the fourth straight weekly advance.\--With assistance from Kriti Gupta.To contact the reporter on this story: Jacquelyn Melinek in New York at email@example.comTo contact the editors responsible for this story: David Marino at firstname.lastname@example.org, Catherine Traywick, Mike JeffersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- ConocoPhillips announced a 10-year plan to buy back $30 billion of shares, equivalent to about half of its current market capitalization, as the oil producer attempts to distance itself from the troubled U.S. shale industry.The company also said it will pay dividends of about $20 billion over the period and limit average capital expenditure to about 10% above current levels.Chief Executive Officer Ryan Lance told investors and analysts at a presentation in Houston on Tuesday that the long-term plan sets the company apart from its peers amid a fight to regain the interest of shareholders in U.S. oil and gas, one of the worst-performing sectors this year.“The industry faces a flight of sponsorship by investors,” Lance said during the presentation. There’s a “struggle for relevance unless the industry can create value on sustained basis.”After being forced into a painful dividend cut during the 2014-2016 oil price crash, the third-largest U.S. oil producer has regrouped under Lance and has built a reputation of being one of the more dependable producers, differentiating itself from other shale operators that have disappointed on production and earnings.Energy stocks have shrunk to less than 5% of the S&P 500 Index, less than half the level a decade ago, after shale producers burned through nearly $200 billion of cash in pursuit of surging flows of oil and gas. Oil and gas producers have responded by returning more cash to shareholders. At the end of their most recent full fiscal years, U.S. energy companies in the S&P 500 bought back $24.2 billion of shares, compared with $10.5 billion in the previous year, according to data compiled by Bloomberg.With investors focused on returns rather than output expansion, Conoco is busy morphing into a low-growth but high cash-generating company that’s built to withstand low crude prices and peak oil demand, which the International Energy Agency says could happen around 2030.Conoco’s plan “shows sustainability over a long period” and a business model “that can deliver competitive returns and appeal to a wide range of investors,” Scott Hanold, an analyst at RBC Capital Markets LLC, said in a note.Conoco was 0.8% higher at $57.15 at 2:27 p.m. in New York trading. The stock has dropped 8.3% this year, while the Standard and Poor’s 500 Energy Index has advanced 1.3%.Investors have delivered stinging rebukes to energy companies this year for paying substantial premiums for acquisitions, such as Occidental Petroleum Corp.’s $37 billion deal for Anadarko Petroleum Corp. Chief Operating Officer Matt Fox admitted that the “elephant in the room” is the possibility Conoco will use its cash hoard for a major deal.“Obviously we can’t and we shouldn’t rule that out, but we can rule out doing a bad acquisition driven by the wrong reasons,” Fox said during the presentation. “We’re not going to do something that undermines our financial framework.”What Bloomberg Intelligence Says“With leverage below 1x cash flow, Conoco has plenty of room to make opportunistic acquisitions. The Permian Basin is likely the biggest target, with significant assets in the area and a relatively small presence in Conoco’s portfolio. However, overdrilling by some of its neighbors will drive management to be highly selective of deals.”\--Brett Gibbs, BI analystRead the research here.Conoco also has conventional production in Alaska, Europe and Asia, while also operating in shale basins. Though Conoco aims to avoid the pitfalls of rival shale producers, the sector will provide much of the company’s growth and account for about 60% of its capital expenditure over the next decade. Its shale production from the Permian Basin, Eagle Ford, Bakken and Montney in Canada will more than double to 900,000 barrels a day by 2029.Conoco said it will stick with about 20 drill rigs and won’t try to chase higher production in times of high crude prices, which tends to destroy shareholder capital, Fox said.“Unfortunately, we know this because we did it,” he said.(Updates with industry buybacks in sixth paragraph)\--With assistance from Brad Skillman.To contact the reporter on this story: Kevin Crowley in Houston at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Christine BuurmaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- ConocoPhillips knows how to please a crowd, even one as shrunken and beaten-down as energy investors. By Tuesday lunchtime, as Conoco’s analyst day was wrapping up in Houston, it was the only big U.S. oil and gas stock flashing green, what with oil prices slipping almost 3%.This says a lot about why Conoco’s message resonates: It comes with a hefty dollop of FUD.“Fear, uncertainty, doubt” is what bears thrive on, but Conoco has refined it into something useful. CEO Ryan Lance set the tone with an opening slide called “Two Charts We Can’t Ignore,” showing how oil had dropped from its pre-2015 triple-digit level to the “new normal of lower, more volatile prices” and how the sector’s weighting in the S&P 500 had slumped from 12% in 2012 to today’s 4%. The subtitle of that slide could have been “but Lord knows the industry has tried to ignore them anyway,” which is how it ended up at that 4% weighting.Hence, Conoco continues to beat a different drum. The common thread running through Tuesday’s 152 slides is that oil and gas production is a mature business with a bad track record on capital management and a future clouded by climate change. There is no room for banking on higher commodity prices, and investors have given up paying for the oil option in E&P equities anyway.So forget exuberance and focus on resilience. Conoco’s message can be boiled down to cutting its breakeven cost per barrel and returning a lot of cash to shareholders. It plans on generating $12 billion a year of cash from operations, on average, through the 2020s, of which 60% goes to capital expenditure and 40% to buybacks and dividends. The latter equate to about 80% of the current market cap and are split themselves 60/40 in favor of buybacks, reflecting the reality of the cycle.Conoco bases its math on a $50 real oil price and expects production would grow by roughly a third over the next decade — or, factoring in the buybacks, significantly more than doubling on a per-share basis. Altogether, a projected average return made up of 8% free cash flow yield plus 3% growth is tailor-made for today’s energy investor, in contrast to the old, failed paradigm of a 10%-plus return owing everything to growth and nothing to payouts. Needless to say, Conoco was at pains to emphasize its cautious view on potential acquisitions, fear of which has weighed on the stock this year as fracker valuations have collapsed.None of this makes Conoco immune to oil’s vicissitudes, of course. Free cash flow tilts toward the back end of the decade, and the company would effectively borrow to fund some of its buybacks through 2025, at $50 oil. That said, having cut net debt by two-thirds since the end of 2016, Conoco doesn’t envisage leverage rising to even one times Ebitda in 2025. Under a stress-test scenario, where oil prices average $40 a barrel between 2023-25, the company doesn’t see leverage breaching two times Ebitda.Let’s just step back here in 2019 and acknowledge that, looking back at everything that’s unfolded in oil over the past decade, any 10-year projection should be treated less like a Google map and more like asking someone on the street for directions. Indeed, for me, the most important slide in Conoco’s deck looked back rather than forward(1). Here, COO Matt Fox talked through lessons learned from prior investment programs, chief of which is to stop committing the industry’s original sin: pro-cyclicality. In other words, don’t base your spending on how much spending power you have at any given moment. Rather, by targeting low breakeven costs, which factor in wherever the industry happens to be in the cycle, you smooth out investment and minimize spending when cost inflation is high and bringing on new production just as commodity prices turn down.This spend high/sell low approach pretty much sums up what the industry did over the past 10 years, vaporizing capital in the process. The chart below uses the U.S. onshore rig count as a proxy for industry capex, and you can see how it surged in the early years on the back of high oil prices, with much of the subsequent growth in production arriving after prices crashed. Even though frackers made real gains in efficiency in that time, the performance of the sector ETF tells you what this did to returns:This is especially important in the context of the new mantra being preached by many E&P companies today: namely, that they will live within their means. Conoco’s message is that just ensuring you don’t spend more than you make in a given year isn’t the cure for the sector’s ills. Rather, it’s about smoothing spending, production — and thereby payouts — over time in order to escape the boom and bust cycle. It is the latter that has eroded confidence in the industry’s earnings and, hence, led to lower and lower multiples being put on those earnings.Fear and doubt will always attach to oil prices, but companies can do something about uncertainty.(1) Slide 32 if you download the deck.To contact the author of this story: Liam Denning at email@example.comTo contact the editor responsible for this story: Mark Gongloff at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
ConocoPhillips (COP) is hosting an Analyst & Investor Meeting today to reaffirm its commitment to the disciplined, returns-focused strategy it launched in 2016. The company will outline the details of a 2020-2029 operating and financial plan, and will provide region and asset reviews of its global portfolio.
The federal government's EIA report revealed that domestic crude production climbed to yet another record high of 12.8 million barrels per day.
AM Best has affirmed the Financial Strength Rating of A and the Long-Term Issuer Credit Rating of “a+” of Sooner Insurance Company . The outlook of these Credit Ratings remains stable.
TORONTO, Nov. 7, 2019 /CNW/ - Frontera Energy Corporation (TSX:FEC.TO - News) ("Frontera" or the "Company") announces today the release of its Interim Condensed Consolidated Financial Statements for the third quarter of 2019, together with its Management, Discussion and Analysis ("MD&A"). All values in this news release and the Company's financial disclosures are in United States dollars unless otherwise stated. Production averaged 70,213 boe/d in the third quarter of 2019, an increase of 6% compared to 66,393 boe/d in the third quarter of 2018, driven by production growth in both Colombia and Peru.
ConocoPhillips (COP) will host its 2019 Analyst & Investor Meeting on Tuesday, Nov. 19, 2019 beginning at 8:00 a.m. Central time in Houston. The meeting will feature presentations by ConocoPhillips executives, including Chairman and Chief Executive Officer Ryan Lance. A live webcast of the meeting will be made available on the ConocoPhillips Investor Relations website, www.conocophillips.com/investor.
According to Carbon Tracker, no major oil company has aligned its operations with the goals set out in the Paris Climate Agreement, and they will all soon have to reduce production significantly
Today, ConocoPhillips (COP) reported its Q3 2019 earnings results. Its adjusted earnings outperformed analysts' mean estimates by 12.3%, boosting the stock.
(Bloomberg) -- ConocoPhillips posted higher-than-expected third-quarter earnings as the world’s largest independent oil producer generated almost $1 billion of free cash flow despite lower crude prices.The Houston-based company followed BP Plc on Tuesday in surpassing analysts’ projections, partly due to its U.S. shale production, which rose 21% from a year earlier. The stock rose as much as 4.1% in New York with Brent crude up 0.4%.Chief Executive Officer Ryan Lance is preparing to unveil a 10-year strategic plan to investors next month. Conoco, which was forced into a painful dividend cut during the 2014-2016 oil price crash, is trying to position itself as a steady cash generator, the antithesis of the struggling U.S. shale industry, by focusing on returns to investors over production growth.“This quarter extends our successful track record of performance since we reset our value proposition in 2016,” Lance said in a statement.Profit excluding one-time items was 82 cents a share, higher than all of the analysts’ estimates compiled by Bloomberg, its eighth earnings beat in nine quarters. That shows the company can keep generating “robust” free cash flow, analysts at Tudor, Pickering, Holt & Co. said in a note.Conoco gets a high proportion of its oil from assets in Alaska, Asia and the Middle East that have production that’s declining relatively slowly. But it’s also focused on growing its shale output, especially in the Eagle Ford and Permian Basin, albeit at a slower pace than pure-play rivals. Unconventional production rose 21% to 379,000 barrels a day compared with a year earlier.Despite that, overall production missed estimates by a small margin. Output in the quarter was 1.32 million barrels per day of oil equivalent, less than the median estimate of 1.34 million. Production should decline in the current quarter due to the sale of U.K. assets and output limits in Qatar, Chief Operating Officer Matt Fox said on a call.The shares rose 3.6% to $57.69 at 2:09 p.m. in New York. The stock was the best performer in the S&P 500 Energy Index last year but has lagged behind the gauge so far this year.Conoco’s cash was boosted by about $100 million from Venezuela’s state-owned producer, part of a long-running legal settlement after the state nationalized its assets more than a decade ago.(Updates with share price in second, penultimate paragraphs)To contact the reporter on this story: Kevin Crowley in Houston at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Joe Carroll, Carlos CaminadaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
ConocoPhillips (COP) delivered earnings and revenue surprises of 5.13% and 43.01%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Conoco reported total production, excluding Libya, rose by 98,000 barrels of oil equivalent per day (boe/d) to 1.322 million boe/d, with output from U.S. shale basins including Eagle Ford, Bakken and the Permian up 21% in the quarter. The profit was lifted by a $2.68 billion sale of its U.K. assets to North Sea oil producer Chrysaor that added about $1.57 to per share results. Excluding items, ConocoPhillips earned 82 cents per share, which was down sharply from $1.42 a share in the same quarter last year but still beat estimates of 75 cents, according to IBES data from Refinitiv.
ConocoPhillips today reported third-quarter 2019 earnings of $3.1 billion, or $2.74 per share, compared with third-quarter 2018 earnings of $1.9 billion, or $1.59 per share.
Boeing CEO Dennis Muilenburg will take the spotlight Tuesday when he faces Congress on the one-year anniversary of the Lion Air crash.