|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||34.45 - 34.45|
|52-week range||34.45 - 6,536.00|
|Beta (5Y monthly)||1.61|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||2.00 (4.32%)|
|Ex-dividend date||11 Feb 2020|
|1y target est||N/A|
(Bloomberg Opinion) -- Kinder Morgan Inc. just issued the thrilling news that it plans to grow profits by 0% this year. That counts as a win in energy in 2020.The pipelines giant was something of a bellwether in late 2015 when it slashed its dividend and soon after did the same to its growth plans. This process reached a logical conclusion of sorts in the full year results presented Wednesday evening. After the usual bullish remarks about natural gas, management outlined a plan to keep spending tight so it could bump the divided up on flat Ebitda. Having chipped away at its debts over the past four years or so, several asset sales allowed leverage to dip a bit further. And even as the project backlog drifted lower, any scurrilous talk of M&A on the earnings call was quashed swiftly.This is your U.S. energy playbook for the foreseeable future, folks.Kinder isn't a bellwether this time; the shrinkage doctrine is cropping up all over. We've just been treated to a set of results from the big oilfield services companies best described as managed retreat. Like Kinder Morgan's gas commentary, Schlumberger Ltd. made its customarily upbeat remarks about the outlook for international drilling activity on its own earnings call last week. Yet the action items are largely a set of retrenchments: job cuts, technology franchising (read: asset-light) and exiting or potentially exiting commoditized businesses such as artificial lift, fracking equipment and drilling tools. Similarly, Halliburton Co. touted growth prospects overseas, while carrying out “initial personnel reductions and real estate rationalization” as its core U.S. land business continues to suffer. Both companies are back to trading at discounts last seen when the oil crash was only just getting underway.The contractors are taking their lead from their clients. Both ConocoPhillips and Chevron Corp. closed out 2019 with declarations of restraint; one via a strategy presentation and the other with a big write-down. Similarly, the shortest run of year-over-year job gains in the U.S. upstream business since 2002 effectively ended in November (see this). It’s tough for even this habitually upbeat industry to talk a big game when (a) natural gas prices are comatose in the middle of JANUARY and (b) despite a year’s worth of Middle East drama having been crammed into just a few weeks, oil futures are lower now than they were after that last supposed game-changer in Saudi Arabia back in September:Evident caution on the part of oil and gas enablers such as pipeline operators and rig contractors is a clear sign the mantra of reducing capital intensity is taking over. After a decade like the one just gone, with many billions wasted in pursuit of sheer market share, that is no bad thing. Plus, with efforts to address climate change — itself essentially a war on waste — this decade brings added pressure to run an extraordinarily tight ship.Old habits die hard, and not everyone gets it. But with E&P earnings season about to kick off, it is worth noting that Kinder Morgan, with guidance roughly as exciting as cocktail hour at a pipelines conference, leads the energy sector on Thursday morning.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) -- U.S. shale oil fracking has already peaked and is in a period of sustained contraction, according to two major providers of services to the industry.That view from Halliburton Co. and Schlumberger Ltd. signals an eventual deceleration in U.S. oil production, which is currently at record highs. Slower output growth would have global ramifications, given additional American barrels are forecast to account for most of the increase in worldwide supply this year.Halliburton Chief Executive Officer Jeff Miller said Tuesday that customer spending in North America will keep falling this year. That echoes Schlumberger, which said Friday it’s continuing to shrink its business in the region to match lower demand.The oil services industry has cut thousands of jobs in the U.S. and scrapped unwanted fracking equipment in recent months as shale companies slash spending in a bid to generate free cash flow amid a stagnant oil market and slumping natural gas prices. The deep retrenchment indicates a lack of conviction that demand will ever recover to previous highs.Halliburton said Tuesday it’s slashing its own spending by 20% from last year to $1.2 billion to keep up with a changing market.“2019 solidified the pivot from growth to capital discipline in North America,” Miller told analysts and investors Tuesday on a conference call. “As unconventionals enter maturation phase, Halliburton is committed to the North American market.”Houston-based Halliburton said North American revenue slumped 21% in the final three months of last year compared with the third quarter. It took $2.2 billion of impairment charges for the most recent period, related to severance costs and writedowns on pressure-pumping and drilling equipment.Halliburton cut 22% of its frack fleet last year, Miller said. Schlumberger, the largest oil and gas services company, has already reduced its pressure-pumping fleet in half, and said Friday it has no intention of bringing that equipment back into service. It took $12.7 billion in pretax charges for the third quarter and is restructuring its North American land business.Even if oil prices improve, publicly traded oil and gas exploration and production companies aren’t likely to materially change their capital-spending plans, Praveen Narra, an analyst at Raymond James, wrote Tuesday in a note. “We predict an underspend of 11%, meaning the E&P industry is cash flow positive after capex for the first time since 2005.”The gloomy picture at home contrasts with improving demand internationally as larger oil companies make a slow recovery from depressed crude prices several years earlier. However, Halliburton, the No. 3 oil services provider, has historically generated more of its sales in the U.S. and Canada than Schlumberger or Baker Hughes Co., the other big player.“In 2020, we expect our international growth to continue” and international margins to improve, Miller said in a statement.Halliburton reported a $1.65 billion net loss for the fourth quarter, compared with net income of $664 million a year earlier. Excluding the impairment charges, earnings per share exceeded analysts’ estimates by 3 cents.Shares of the company rose 1.9% to $24.41 at 11:05 a.m. in New York.To contact the reporter on this story: David Wethe in Houston at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Pratish Narayanan, Steven FrankFor 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 pared gains after rising to the highest in more than a week as projections of plentiful world supplies countered concern about disruptions in Iraq and Libya.Brent futures climbed earlier to $66 a barrel as Libya’s oil production almost ground to a halt when armed forces closed a critical pipeline, shuttering output from the nation’s biggest oil project. In fellow OPEC nation Iraq, escalating protests stopped work at a minor field on Sunday.In the past few months, oil markets have rallied after an attack on Saudi oil infrastructure in September and military confrontation between Iran and the U.S. this month, only for prices to drop once tensions subsided.“The oil market has been conditioned to look past any immediate supply disruptions,” Daniel Ghali, a TD Securities commodity strategist, said by phone. “We really are in an oversupplied market.”The International Energy Agency projected last week that a “solid base” of oil inventories and surging U.S. shale oil production will help weather disruptions. On Monday, the International Monetary Fund trimmed its forecast for world economic growth, reducing prospects for energy demand.Libya’s eastern strongman Khalifa Haftar kept virtually all of the nation’s oil fields shut, in a show of defiance after world leaders failed to persuade him to sign a peace deal ending the OPEC country’s civil war. While the Libya conflict and other dramas have roiled markets, prices are now little changed from the end of last year after swinging within a trading range of $8 a barrel.“The amount of oil which is off is substantial, but right now the expectations are that it’s not going to last because it’s part of a negotiation process,” said Olivier Jakob, managing director at consultant Petromatrix GmbH in Zug, Switzerland. “We are in this situation where you have some supply concerns if one looks at protests in Iraq and the situation in Libya, but on the other hand the products are weak.”Brent crude rose 35 cents to $65.20 a barrel Monday on the ICE Futures Europe exchange, having earlier climbed 1.8% to $66, the highest since Jan. 9. West Texas Intermediate futures gained 12 cents to $58.66 a barrel in electronic trading on the New York Mercantile Exchange after rising 2% earlier. U.S. markets were closed Monday for the Martin Luther King holiday.See also: The Man Who Cut Libya’s Oil Supply Is Getting Harder to HandleLibya won’t be able to pump more than 72,000 barrels a day once its storage tanks are full, according to a spokesman for the NOC, down from more than 1.2 million barrels per day on Saturday. The company declared force majeure, which can allow the country to legally suspend delivery contracts.Separately, security guards in Iraq seeking permanent employment contracts blocked access to the Al Ahdab oil field, prompting a production halt, according to an official who declined to be identified. The Badra field, which has output of about 50,000 barrels a day, is also at risk of closure.\--With assistance from James Thornhill, Serene Cheong, Andrew Janes, Saket Sundria, Heesu Lee, Grant Smith and Alex Longley.To contact the reporter on this story: Robert Tuttle in Calgary at firstname.lastname@example.orgTo contact the editors responsible for this story: James Herron at email@example.com, Steven Frank, James AttwoodFor 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.
Given the prolonged move up in terms of price and time, the direction of the March E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to Friday’s close at 29279.
(Bloomberg) -- Oil declined for the second week as signs that supplies remain plentiful offset optimism over the signing of the U.S.-China trade agreement.Futures in New York were little changed Friday but ended the week 0.9% lower. Refiners have turned a crude surplus into a product surplus with U.S. gasoline and distillate stocks expanding by over 40 million barrels during the last three weeks. The build overshadowed Beijing’s commitment to spending $52.4 billion in additional purchases of American energy in the next two years as part the phase-one trade deal between the world’s biggest economies.“There is a positive vibe after the trade deal, but the fact is we are so oversupplied it’s going to be difficult to get the market up past $60,” said Bob Yawger, futures director at Mizuho Securities USA LLC in New York.Before the landmark U.S.-China accord was signed, prices reached a six-week low Wednesday after U.S. government data showed petroleum inventories in the country expanded to the highest levels since September. Supplies at the critical Cushing, Oklahoma, commercial storage hub rose for the first time in 10 weeks. American crude production continues to set new records, reaching 13 million barrels a day earlier this month.Oil drilling rose for the first time in four weeks, led by the Permian Basin, indicating that oil supplies are poised for more gains in the near term.West Texas Intermediate futures for February delivery settled up 2 cents at $58.54 a barrel on the New York Mercantile Exchange.Brent for March settlement rose 23 cents to $64.85 on the ICE Futures Europe exchange in London after climbing 1% on Thursday. That put its premium over WTI for the same month at $6.27 a barrel.The market may have to contend with another week of inventory builds as fog on the U.S. Gulf Coast has intermittently suspended marine traffic and slowed exports, according to Andy Lipow, president of Lipow Oil Associates LLC in Houston.The International Energy Agency noted on Thursday that global markets have a “solid base” of inventories and climbing supplies from outside the OPEC cartel, even as elevated tensions in the Middle East endanger production from Iraq and elsewhere.(A previous version corrected the timeframe of the stock build in the second paragraph.)\--With assistance from James Thornhill, Elizabeth Low, Grant Smith and Jackie Davalos.To contact the reporter on this story: Sheela Tobben in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: James Herron at email@example.com, Catherine Traywick, Mike JeffersFor 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.
Analysts expect earnings at S&P 500 companies to drop 0.8% in the fourth quarter, but forecast a 5.8% rise in the first quarter of 2020, according to Refinitiv IBES data. Billionaire David Tepper, who founded hedge fund Appaloosa Management, told CNBC that he remains bullish on U.S. equities. The Dow Jones Industrial Average rose 0.17% to end at 29,348.1 points, while the S&P 500 gained 0.39% to 3,329.62.
Analysts expect earnings at S&P 500 companies to drop 0.8% in the fourth quarter, but forecast a 5.8% rise in the first quarter of 2020, according to Refinitiv IBES data. Billionaire David Tepper, who founded hedge fund Appaloosa Management, told CNBC that he remains bullish on U.S. equities. At 2:42 p.m. ET, the Dow Jones Industrial Average was up 0.08% at 29,321 points, while the S&P 500 gained 0.22% to 3,323.95.
Energy stocks have lagged the broader market for the past year and past decade -- but they could be the trade of the 2020s, according to David Mazza of Direxion.
Schlumberger announced today its commitment to setting a science-based target to reduce its greenhouse gas (GHG) emissions.
Reuters last year reported that Biguet, a 24-year veteran of the company and currently the vice president of finance, was slated to succeed Ayat as the company's finance chief. The move comes shortly after former chief operating officer Olivier Le Peuch took over the top job in July, following years of declines in share price and a hit from cuts in spending by U.S. oil and gas producers. "It's not uncommon for companies the size of Schlumberger that when a new CEO comes in to want his/her own CFO in place," Tudor, Pickering, Holt and Co analyst Byron Pope said.
Schlumberger Limited (NYSE:SLB) announced today that Simon Ayat, Executive Vice President and Chief Financial Officer, will step down from this position effective January 22, 2020. Mr. Ayat, who joined the Company in 1982, will remain with Schlumberger as Senior Strategic Advisor to the Company’s Chief Executive Officer for a period of two years.
Schlumberger Limited (NYSE:SLB) will hold a conference call on January 17, 2020 to discuss the results for the fourth quarter and full year ending December 31, 2019.
(Bloomberg) -- Activists inside Google are calling on management to ditch deals with oil and gas companies, the latest flare-up inside the technology giant.In a letter published on Monday, more than 1,100 workers asked Google Chief Financial Officer Ruth Porat to release a “company-wide climate plan” that commits to cutting carbon emissions entirely. The letter also asks Google to drop contracts that “enable or accelerate the extraction of fossil fuels.”Since 2017, Google’s cloud-computing unit has disclosed contracts with oil-services giant Schlumberger Ltd., Chevron Corp. and French energy company Total SA. Saudi Arabia’s Aramco, the world’s largest oil company, announced a tentative cloud deal with Google last year, although the internet giant has never confirmed the partnership.“If Google is going to confront its share of responsibility for the climate crisis, that means not helping oil and gas companies extract fossil fuels,” Ike McCreery, an engineer in Google’s cloud division, said in an email. “This is a moment in history that requires urgent and decisive action.”A Google spokeswoman declined to comment, but pointed to comments Porat made in a September blog. "As our business continues to grow, we have expanded the breadth of our efforts to drive positive environmental impact, and make smarter and more efficient use of the Earth’s resources," the CFO wrote in the post.The energy sector is a growing market for cloud providers, which offer tools for storing and analyzing data. Tech’s ties to the industry have prompted protests elsewhere. Some staff at Amazon.com Inc. and Microsoft Corp. have called on their employers to cancel contracts with oil and gas companies. Staff outcry over a Pentagon cloud deal last year caused Google to exit that contract.Alphabet Inc.’s Google has touted its green credentials for years. The company announced the largest ever corporate purchase of renewable energy in September. Starting in 2017, the company has matched the electricity bill from its massive data centers with equal purchases from renewable energy sources.The Google employee letter also asks the company not to do business with U.S. immigration authorities, arguing that more people are being forced to move across borders due to climate change. Google hasn’t disclosed contracts with these agencies, but Business Insider reported that U.S. Customs and Border Protection is testing a Google cloud service called Anthos, which lets organizations use multiple cloud providers at once.McCreery, who helped spearhead the letter, works on Anthos. “It’s devastating to think the infrastructure I’ve helped build over the last five years would be used to help incarcerate climate refugees,” they said.(Updates with CFO comments in sixth paragraph.)To contact the reporter on this story: Mark Bergen in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Alistair Barr, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
British oilfield services firm Hunting Plc warned on Tuesday that annual core profit would be at the lower end of market expectations as it grapples with a slowdown in the U.S. onshore drilling market, sending its shares down as much as 7%. Without giving numbers, Hunting said profit for the third-quarter had declined compared with the two preceding quarters while quarterly revenue and operating profit at its biggest unit Hunting Titan also fell.
Anyone interested in Schlumberger Limited (NYSE:SLB) should probably be aware that the Vice President of Investor...