93.34 0.00 (0.00%)
After hours: 4:42PM EST
|Bid||91.92 x 900|
|Ask||92.27 x 800|
|Day's range||90.11 - 93.44|
|52-week range||90.11 - 127.34|
|Beta (5Y monthly)||1.02|
|PE ratio (TTM)||60.61|
|Earnings date||23 Apr 2020 - 27 Apr 2020|
|Forward dividend & yield||5.16 (5.48%)|
|Ex-dividend date||13 Feb 2020|
|1y target est||131.59|
(Bloomberg) -- Oil had it worst week since the financial crisis as panic over the coronavirus pandemic battered global markets.Futures in New York fell 16% this week, marking the biggest weekly drop since December 2008. The viral outbeak showed no signs of relenting, with the World Health Organization raising global risk to “very high” from “high.” The collapse of financial markets prompted U.S. Federal Reserve Chairman Jerome Powell to assure investors that the central bank is prepared to cut interest rates to mitigate the virus’ threat to economic activity.“A month ago the concern was only China,” said Pavel Molchanov, energy research analyst at Raymond James & Associates Inc. “This meltdown is a fear of a global pandemic. The risk is we will see the same disruptions we saw in Asia, from travel restrictions to quarantines, materialize all over the world.”Oil prices have tumbled almost 27% this year on concerns the coronavirus outbreak will dent crude demand. OPEC and its allies have signaled the coalition could reach an agreement to stem the rout before meeting in Vienna next week. Saudi Arabia is reportedly pushing for collective OPEC+ production cuts of an additional 1 million barrels a day, of which it would bear the brunt.However, Riyadh’s proposal may not be enough to balance the oil market, according to a coronavirus-scenario analysis by Bloomberg Intelligence analysts Salih Yilmaz and Rob Barnett. The alliance’s overall compliance with production cuts has not been enough to support oil prices. The re-emergence of Libyan barrels also remains a risk.“We may be too far deep for any OPEC cuts to have a meaningful impact,” said Peter McGinn, market strategist at RJ O’Brien & Associates LLC. “If the virus keeps spreading, that is just going to keep hurting demand and cause another wave of panic selling. A production cut could give it a bounce, but these lows will persist for the foreseeable future without a vaccine.”West Texas Intermediate futures for April delivery fell $2.33, or 5%, to settle at $44.76 a barrel on the New York Mercantile Exchange.Brent for April settlement, which expired Friday, lost $1.66, or 3.2%, to end the session at $50.52 a barrel on the ICE Futures Europe exchange. The more active May contract fell 4% to $49.67.Brent’s so-called red spread -- the difference between December contracts in consecutive years -- sank deeper into bearish contango, settling at lowest level since 2018.To contact the reporter on this story: Jackie Davalos in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: David Marino at email@example.com, Catherine TraywickFor 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 Opinion) -- Warren Buffett is credited with that old saying about receding tides and embarrassed skinny-dippers. In Occidental Petroleum Corp.’s case, the lack of swimwear is one problem, but so is the anchor tied around its ankle. Part of that anchor is the old sage himself.Oxy, as it is known, just reported results for its first full quarter since acquiring Anadarko Petroleum Corp. In that bruising takeover battle against Chevron Corp., Berkshire Hathaway Inc. provided a crucial $10 billion check allowing Oxy to avoid a shareholder vote. It came at a steep cost of, among other goodies, an 8% preferred dividend. As it turns out, that was more than enough to swallow Oxy’s adjusted net income for the second half of 2019 before any of it could trickle down to the commoners.Buffett didn’t get rich by giving stuff away, so the fact Oxy went to him in the first place signaled just how far it was stretching. Back then, things looked dicey already on the trade-war front. But in early 2020, Oxy finds that not only has the tide gone out, it has gone way out, similar to what happens just before a tsunami floods back in. The tsunami is the coronavirus crisis, swamping an already fragile oil and gas market.A few numbers tell the story. Oil traded at almost $66 a barrel when Oxy entered the fray for Anadarko; it has since dropped to about $45. When Oxy CEO Vicki Hollub made her fateful flight to Omaha, Nebraska, the 10-year Treasury yield was just over 2.5%, Oxy’s stock yielded about 5.5%, and high-yielding energy bonds paid about 7.75%.Now Treasuries yield less than 1.2%, so the spread Buffett earns from Oxy, about 5.5% when the deal was struck, is closing in on 7%. Oxy’s own dividend yield, which used to be lower than Buffett’s preferred, spiked as high as 10.7% on Friday morning, roughly where the energy high-yield index ended Thursday.As of Friday lunchtime in New York, Oxy’s dividend yield was 10.2% and its stock was at its lowest level since early 2009 (not a period remembered with great fondness).The market is treating the dividend like a distressed credit. Even using Oxy’s adjusted figure for cash from operations before extraordinary charges and working capital, free cash flow in the fourth quarter was less than $60 million, not enough to cover the $149 million paid out on preferreds, let alone the $700 million or so in common dividends.As a result of the deal, Oxy’s interest and dividend obligations have risen from just under $750 million a quarter to more like $1.25 billion ($200 million of that is Buffett’s). Including guided capex, Oxy needs an Ebitda run-rate of about $2.6 billion a quarter to cover all this from cash flow. Consensus estimates average about $2.9 billion a quarter this year, and Oxy has further asset sales to come, as well as more cost savings to realize from the deal (although at least some of the latter should be in consensus forecasts already). This implies Oxy can cover its obligations based on current observations, but with little left over to cut into net debt — now $35 billion, versus $8.5 billion at the end of June. That will rely mostly on disposals for now, although Oxy says it can also cut capex further if necessary, albeit at the expense of growth.This position is all too familiar in the energy sector. To buy Oxy now is to bet it can reap savings and realize prices on disposals that will offset the headwinds in the oil and gas market — although, as several questions on Friday morning’s call addressed, the risk around disposals has increased as oil prices have tanked. Alternatively, it’s a straight bet oil prices will rebound once pandemic fear passes. The company’s well-timed hedging of 2020 production helps. And unit costs in the upstream business, especially in the U.S., have declined dramatically already since last summer, providing credibility on the synergies story. But chipping away at that debt may be a grueling process.This is a bigger issue than just where oil prices will eventually wash out in 2020. In the same week Oxy reported these results, energy stocks’ weighting in the S&P 500 dropped below that of utilities for the first time ever. Generalist investors were abandoning the sector long before troubling news reports began emanating from China. They were put off by weak governance and high leverage, plus they’re no longer buying the traditional option on oil-price increases.The Anadarko deal, and how it was done, ticked all these penalty boxes, piling obligations onto Oxy’s cash flow just before oil prices slumped. While some hedge funds may be willing to rent the stock for short-term bets, Oxy needs to rebuild enough trust to tempt value investors back in from the thinned-out generalist crowd. That’s tough in general, and even harder when infection updates keep crossing the wires. Sure, no one could foresee the coronavirus outbreak. But Oxy’s been through enough cycles to know oil is no stranger to black swans. To contact the author of this story: Liam Denning at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Gongloff at email@example.comThis column does not necessarily reflect the opinion of 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- The Trump administration is ready to unleash the full impact of sanctions on Chevron Corp.’s operations in Venezuela as the U.S. seeks to further squeeze the Maduro regime.While no decision has been made, it’s increasingly unlikely that the U.S. will again extend to Chevron a waiver to access Venezuela’s crude reserves, people familiar with the matter said.The Treasury Department last month granted Chevron its fourth waiver since sanctions were announced in late 2018. When that expires on April 22, it probably won’t be renewed, the people said, speaking on the condition of anonymity because they weren’t authorized to discuss the matter publicly.Such a decision would mark the unraveling of Chevron’s near-century of operations in the home of the world’s largest oil reserves. Venezuela has figured prominently in company lore ever since Chevron’s discovery of the giant Boscan field in the 1940s. Even after rivals like Exxon Mobil Corp. abandoned the country during the reign of the late Hugo Chavez, Chevron held on.The Trump administration recently ramped up efforts to oust President Nicolas Maduro and rally international support behind opposition leader Juan Guaido. Earlier this month, Washington sanctioned a unit of Russia’s largest oil producer, Rosneft PJSC, for maintaining ties with Maduro and state-run oil company PDVSA.A spokeswoman for the Treasury Department, which oversees sanctions implementation, did not immediately reply to a request for comment.Chevron is hopeful the waiver “will be renewed so that we can continue operations in the country for the long-term,” Ray Fohr, a company spokesman, said in an email. “If Chevron is forced to leave Venezuela, non-U.S. companies will fill the void and oil production will continue.”Chevron’s Venezuelan oil production plunged to just 35,000 barrels a day last year, a 20% drop from 2018, and only about 1% of the company’s global crude output.Proponents of Chevron’s position argued that withdrawing would open the way for Russian and Chinese companies to expand their footprints and control more crude, and make any post-Maduro rebuild of the economy more difficult.(Updates with Chevron comments in seventh paragraph.)To contact the reporters on this story: Saleha Mohsin in Washington at firstname.lastname@example.org;Jennifer A. Dlouhy in Washington at email@example.com;Ben Bartenstein in New York at firstname.lastname@example.org;Kevin Crowley in Houston at email@example.comTo contact the editors responsible for this story: Alex Wayne at firstname.lastname@example.org, ;Simon Casey at email@example.com, Joe Carroll, Catherine TraywickFor 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) -- Oil tumbled to the lowest since early January 2019 on mounting fears of the coronavirus contagion wreaking havoc on economic growth.Futures fell 3.4% in New York on Thursday and are poised for the worst weekly loss since 2014 as the coronavirus spreads further outside of China, roiling financial markets. The S&P 500 sank as much as 10% since last Friday and pushed the index into a correction, while the Dow Jones Industrial Average fell to the lowest in almost five months. California’s governor said the state was monitoring 8,400 people for the virus on Thursday, adding to the alarm of a global pandemic.“We definitely saw some aggressive, panic-like selling,” said Rebecca Babin, a senior equity trader at CIBC Private Wealth Management. “There’s still some room for downside because emotions are running high with the virus. We need a positive catalyst to put the floor in otherwise the direction is just lower from here.”The U.S. benchmark crude has fallen about 23% this year as the virus hits demand for fuels. Investors are assessing whether the Organization for Petroleum Exporting Countries and its allies will be able to agree on deeper production cuts as a response to the coronavirus during a meeting next week in Vienna. Saudi Aramco is already supplying China with 500,000 barrels a day less than normal in March due to the outbreak.OPEC Secretary-General Mohammad Barkindo said the group and its allies are showing a “renewed commitment” to reaching an agreement that will stabilize oil markets when producers meet. “The fast-evolving impacts of the virus mean the challenge is akin to catching a falling knife,” Bill Farren-Price, a director at consultant RS Energy Group, now part of Enverus, said in an email. “Agree too-small a cut and risk undermining credibility, or over-tighten the market and boost oil prices just at the time when the global economy is flirting with a downturn.”West Texas Intermediate futures for April delivery slid 3.4% to settle at $47.09 a barrel on the New York Mercantile Exchange.A measure of oil-market volatility surged to the highest level since September.Brent for April settlement lost $1.25 to end the session at $52.18 a barrel on the ICE Futures Europe exchange, putting its premium over WTI at $5.09.So-called time-spreads further down the futures curve have also weakened, with the closely-watched December 2020-2021 differential at the weakest in more than a year on Thursday, highlighting the market’s demand concerns.Oil could fall below $30 a barrel if OPEC+ fails to agree to a production cut, Standard Chartered Plc analysts Emily Ashford and Paul Horsnell wrote in a report. Russia has so far resisted pressure from Saudi Arabia for an OPEC+ agreement to cut production further as the virus hits demand.\--With assistance from James Thornhill.To contact the reporter on this story: Jackie Davalos in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: David Marino at email@example.com, Jessica Summers, Catherine TraywickFor 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.
U.S.-based banks and brokers are in discussions with federal regulators about allowing staff to work from home and other business continuity arrangements amid the spread of the coronavirus, the head of a top financial trade group said on Thursday. The industry is reviewing and updating contingency plans in order to minimize any potential disruption to the financial markets that could be caused by personnel being unable to work onsite, said Kenneth Bentsen Jr., said chief executive of the Securities Industry and Financial Markets Association (SIFMA). In addition to remote working arrangements, financial firms could potentially move staff to backup locations away from major cities, he said.
While higher oil equivalent production aids Chesapeake's (CHK) Q4 numbers, lower price realizations of commodities partially offset the positive.
Chevron Products Company, a division of Chevron U.S.A. Inc., maker of technologically advanced engine oils, lubricants and coolants, is proud to announce its heavy-duty engine oil (HDEO) product, Delo 600 ADF with OMNIMAXTM, was recognized as a Top 5 finalist for the 2020 recipient of the Jim Winsor Memorial Technical Achievement Award at the Technology & Maintenance Council (TMC) Annual Meeting & Transportation Technology Exhibition in Atlanta, an honor given to products and technologies that offer significant benefits to the trucking industry.
The Zacks Analyst Blog Highlights: Burlington Stores, Chipotle Mexican Grill, Apple, Chevron and Deckers Outdoor
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The move will raise alarm about the spread of coronavirus in the UK, where only 13 people have been affected thus far.
(Bloomberg) -- Chevron Corp. asked traders and other staff at its Canary Wharf office in London to work from home as a precaution after an employee was tested for the coronavirus, according to a person familiar with the matter.The employee had flu-like symptoms and coronavirus hasn’t been confirmed, the person said.“Chevron continues to monitor the situation very closely, utilizing the guidance of international and local health authorities,” the company said Tuesday in an emailed statement. “Our primary concern is the health and safety of our employees and we are taking precautionary measures to reduce their risk of exposure.”London’s energy industry has been gripped with concern over the virus, with dozens of events canceled at International Petroleum Week, Europe’s most important annual gathering of traders and executives. While only 13 cases, with no fatalities, have been recorded in the U.K., the surge in cases in Italy indicates that more may be on the way.Canary Wharf on London’s east side is home to headquarters of some of the world’s biggest banks, including HSBC Holdings Plc and Barclays Plc. Citigroup Inc., JPMorgan Chase & Co., BP Plc, and Total SA also have a presence in the area.Asia’s energy trading hub was impacted two weeks ago when Royal Dutch Shell Plc sent home some staff from its trading desks in Singapore after an employee had contact with a coronavirus case. And in the U.S., next month’s CERAWeek conference in Houston is expected to feel the weight of coronavirus precautions. The event, organized by IHS Markit, may see lower attendance at the five-day event following a U.S. government proclamation barring entry to foreign nationals who have recently traveled to China.(Updates with context from sixth paragraph.)\--With assistance from Dan Murtaugh.To contact the reporters on this story: Kevin Crowley in Houston at firstname.lastname@example.org;Catherine Ngai in New York at email@example.com;Laura Hurst in London at firstname.lastname@example.org;Sheela Tobben in New York at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Reg Gale, Joe CarrollFor 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.
Traders, exploration and refining unit staff were assigned to work remotely until test results can determine whether the worker has coronavirus, said a person familiar with the matter. "Chevron continues to monitor the situation very closely, utilizing the guidance of international and local health authorities," said a Chevron spokeswoman.
The Trump administration is in discussions about whether to renew a license for Chevron Corp's operations in Venezuela as Washington looks to increase pressure on its socialist leader, the U.S. special envoy to the South American country said. U.S. Special Representative for Venezuela Elliott Abrams said in an interview on Monday that he would not talk about specific future activities on Chevron. "But there are conversations taking place and at the appropriate moment OFAC will say whatever it needs to say," Abrams said about the Treasury Department's Office of Foreign Assets Control, which makes announcements on sanctions.
Chevron Products Company, a division of Chevron U.S.A. Inc., maker of technologically advanced engine oils, lubricants and coolants, today announced that Delo 600 ADF with OMNIMAXTM, a Chevron Patented Technology, was recognized at the Technology and Maintenance Council (TMC) Annual Meeting and Transportation Technology Exhibition as one of Top 20 Products for 2020 by Heavy Duty Trucking.
Petrobras (PBR) generated positive free cash flow for the 19th consecutive quarter, with the metric surging to $5,650 million from $4,262 million recorded in last year's corresponding period.
In the past 10 times that the Dow and S&P 500 lost a minimum of 3%, their performances improved considerably in the following week, month and year.
As you might know, Chevron Corporation (NYSE:CVX) last week released its latest yearly, and things did not turn out so...