Stock trading is not a hobby. It’s science. Anyone who thinks otherwise is destined to experience huge losses at some point. Hobbyists tend to have a lack of emotional control. They do everything on impulse because they “feel it in their gut.” That might work once or twice for a trader. In the long run, without a trading plan, it’s a path to failure. Most of the mistakes that result in stock...
Shares of Tellurian climbed, following news of natural gas company finalizing a 10-year deal to provide energy trader Vitol with LNG from its proposed liquefaction facility terminal in Louisiana.
The deal, valued at at about $12 billion in revenue over the deal period, is for 3 million tonnes per annum (MTPA) of LNG.
Last week, Tellurian also inked a 10-year agreement with commodity trader Gunvor Group for 3 MTPA of LNG.The LNG would be delivered from the proposed liquefaction facility Driftwood LNG, near Lake Charles, Louisiana in the U.S. Gulf Coast.
Devon Energy shares rose Tuesday, following a rating upgrade and price target increase by Raymond James analyst.
Analyst John Freeman boosted rating on the energy company’s shares to strong buy from outperform. Freeman hiked his price target to $40 from $34.
Freeman mentioned that the solid performance of Devon's Delaware wells offer opportunities for productivity gains – something that would boost Devon's free-cash-flow-to-enterprise-value ratio, which could lead toa a higher dividend yield, according to Freeman .
The deal would lead to tangible annual synergies of at least $60 - $80 million.
Diamondback agreed to acquire Guidon in a cash-stock deal, which includes 10.63 million shares of Diamondback common stock, and $375 million cash to be probably funded through a combination of cash on hand and the company’s credit facility.The deal would value Guidon at $862 million.
The pending QEP acquisition, combined with the previously announced pending acquisition of assets from Guidon will bring Diamondback’s total leasehold interests to over 276,000 net surface acres in the Midland Basin (429,000 Midland and Delaware Basin net acres)
The stock also got added to Goldman’s conviction list.
Analyst Neil Mehta said that micro/macro fundamentals are bottoming and that he expects ConocoPhillips to be a strong participant in the upcoming oil price upcycle, “given the level of underperformance relative to large-capitalization U.S. majors to date, as well as the company’s strong leverage to Brent [crude].".
Mehta also raised his price target to $51 from $38
Plunging crude prices are propelling Occidental Petroleum to slash its quarterly dividend payout , and lower capital spending
The oil & gas major said it would cut its quarterly dividend payout by -86% to 11 cents a share, effective in July.It would also reduce 2020 capital spending to between $3.5 billion and $3.7 billion – compared to prior expectations between $5.2 billion and $5.4 billion.
After Saudi Arabia and Russia both announced that they would supply more oil into the market after failing to reach an agreement, oil prices have been largely in a free fall.
Although on Tuesday, there were some improvements with Brent crude rising 6.5% to $36.58 and U.S. benchmark West Texas Intermediate crude rising 6.9% to $33.28.
Energy company Apache Corp. is going ahead with a 50-50 joint venture with France’s Total S.A, for an offshore drilling project in Suriname, a northeastern South American.
The joint venture will explore Block 58, which has around 1.4 million acres in water depths ranging from less than 100 meters to more than 2,100 meters.Apache’s CEO and President John J. Christmann indicated that Total’s offshore operational experience and global presence make it an ideal partner for the project.
Along with the 50% working interest, Apache will also receive $5 billion of cash carry on the company’s first $7.5 billion of appraisal and development capital and a 25% cash carry on all Apache appraisals that exceed the $7.5 billion mark.
The price of oil has been trending lower over the last seven months with the price putting in a series of lower highs since peaking at $66.60 in April.The price spiked in September when the attacks occurred on Saudi Aramco's production facilities, but have since fallen back down as the production interruption was minimal.
With oil trending lower, many big oil companies have seen their stock prices trend lower with the price of oil and ConocoPhillips (NYSE: COP) is one of those companies.
Oil & gas exploration company EOG Resources (NYSE: EOG) is set to report earnings next week and analysts expect the company to report earnings of $1.13.The company sports a return on equity of 18.1% and a profit margin of 23.9%, both of which are slightly above average.
Despite what seem to be decent fundamentals, the company doesn’t score very well with Tickeron’s Fundamental Ratings.
Shares of Pioneer Natural Resources received an upgrade from Mizuho Securities analyst, who also hiked his price target on the stock.
Mizuho analyst Paul Sankey upgraded his rating to “buy” from “neutral” on the hydrocarbon exploration company’s shares, and raised his price target to $191 from $168 – representing a more than 50% upside from Wednesday's close price of the stock.
Sankey indicated that the company is focusing on sustainable free cash flow growth and has made major progress on cost cuts this year.
Oil producer Hess Corp. (NYSE: HES) is hitting several different support points on its chart and it got a bullish signal from the Tickeron Trend Prediction Engine on September 30.Now the stock is down at the lower band and actually dipped slightly below it on September 30.
Yet another possible positive sign for the stock is the fact that the daily stochastic readings are in oversold territory and made a bullish crossover on October 1.
Oil exploration and production company ConocoPhillips (NYSE: COP) has been trending lower for the last year and a rally over the last two months may have investors feeling optimistic.However, there are a number of indicators that may prevent the rally from continuing and those indicators come from all angles—fundamental, sentiment, and technical analysis.
Let’s look at the technical side first.
Tickeron’s SMR rating for PDC is 80, indicating weak sales and an unprofitable business model.SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents.
Sales growth for PDC has been pretty good for the last few years, but analysts expect sales to decline by 21% for 2019.
PDC Energy announced that it is acquiring SRC Energy in a deal valued at $1.7 billion, including debt.
As part of the all-stock acquisition, SRC shareholders will receive a fixed exchange ratio of 0.158 PDC shares for each share of SRC common stock, implying a value of $3.99 per SRC share based on PDC's closing common stock price on Aug. 23.
PDC will also be assuming approximately $685 million in debt, as part of the acquisition.The combined entity is expected to advantage from "complementary assets" in the Delaware Basin - a geologic basin in West Texas and southern New Mexico famous for holding large oil field deposits.
Following the deal’s closure, PDC shareholders will own about 62% of the combined company, and SRC shareholders will own around 38%.
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The Tickeron Fundamental Analysis Overview shows several negative factors for the stock.Furthermore, the PEG ratio is (7.7) for PE, as compared to the industry average of (1.0).
The most recent quarterly report saw earnings decline by 18% on a year over year basis and analysts expect earnings to decline by 3% for the year as a whole.
The Tickeron Valuation Rating of 97 indicates that the company is significantly overvalued in the industry.
Oil is in the crosshairs as the prospect of confrontation brews between the U.S. and Iran.At least, that’s how Iranian officials would have it.
Continental Resources announced a new share repurchase program and dividend, sending its shares up +14% Tuesday.
The oil & natural gas exploration company will embark on a $1 billion share buyback program from the second quarter of 2019, and will continue through 2020.
The company also announced a quarterly dividend of 5 cents per share, payable on November 21, to shareholders of record on November 7.On an annualized basis, the dividend will distribute about $75 million to shareholders.
Chairman and CEO Harold Hamm perceives the current value of Continental Resources’ equity to be “unreasonably low” – something that makes share buybacks using excess cash an opportune strategy, as indicated by Hamm.
Crude oil prices tumble as China signals it could play the rare earths card in its trade war with the U.S., adding to concerns that an ongoing standoff could hurt crude demand; U.S. WTI -2.6% to $57.60/bbl, Brent -1.9% to $68.80/bbl.
Crude oil prices surged as high as 2% on Thursday as tensions between Iran and Saudi Arabia continue to escalate over Saudi-led coalition’s launch of air strikes on Iran in retaliation of the latter’s attack on Saudi’s oil infrastructure.
U.S West Texas Intermediate crude settled 85 cents higher at $62.87 per barrel, gaining 1.4% and closing at the highest level in two weeks.Likewise, Brent crude, the international benchmark for oil prices, also surged 85 cents or 1.2%, to close at $72.62 touching its highest level in three weeks.
The Saudi-led air strikes in Yemen were launched after the Iranian-aligned movement admitted their drone attacks on two Saudi oil pumping stations earlier in the week.
The American Petroleum Institute reportedly shows an increase of 8.63M barrels of oil in U.S. stockpiles last week, vs. the previous week's build of 2.8M barrels.