Chicago, IL – February 25, 2015 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Chevron Corp. (CVX-Free Report), Talisman Energy Inc. (TLM-Free Report), EOG Resources Inc. (EOG-Free Report), Williams Companies (WMB-Free Report) and Marathon Oil Corp. (MRO-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday’s Analyst Blog:
Oil & Gas Stock Roundup
It was a week where oil prices suffered their first loss in a month though natural gas rallied on encouraging weather forecasts. On the news front, Chevron Corp. (CVX-Free Report) has decided to pull out of its shale gas operations in Romania, while Spain's Repsol S.A. got shareholder approval from Canada’s Talisman Energy Inc. (TLM-Free Report) to buy the latter for $13 billion.
Overall, it was a mixed week for the sector. While West Texas Intermediate (WTI) crude futures were down 4.6% to close at $50.34 per barrel, natural gas prices jumped around 5.2% to $2.95 per million Btu (MMBtu). (See the last ‘Oil & Gas Stock Roundup’ here: Transocean Slashes Dividend, Announces CEO Exit.)
Oil prices fell for the first time in 4 weeks, spooked by the U.S. Energy Department's latest inventory release. The federal government’s EIA report revealed that crude stockpiles recorded another massive build, the sixth in a row. At 425.64 million barrels, current crude supplies are up 17.5% from the year-ago period and is at the highest level during this time of the year in at least 80 years. Investors were further discouraged by the Baker Hughes report that showed a relatively modest drop in oil-directed rigs, indicating a brake in the rapidly declining shale drilling activities.
Meanwhile, natural gas fared much better on expectations of cranked up heating demand with forecasts of frigid weather across the key U.S. markets during the next few days.
Recap of the Week’s Most Important Stories
1. San Ramon, CA-based energy giant Chevron Corp. said that it is getting out of the shale gas business in Romania, citing poor exploration economics and environmental issues. As part of the exit decision, the American behemoth has also relinquished its three other concessions in Romania.
With this, Chevron has ended its European shale gas quest and will instead turn its focus to home soil. The company has already halted its shale gas exploration project in Poland following the abandonment of agreements in Lithuania and Ukraine.
2. Spanish oil producer Repsol S.A. has received approval from the shareholders of struggling Canadian energy explorer Talisman Energy Inc. to acquire the latter for about $13 billion. More than 99% of Talisman shareholders voted in favor of the transaction, which had already been approved by the boards of both the companies.
The transaction – agreed on late last year and likely to be completed in the second quarter – will result in a combined entity with production capacity of 680 thousand barrels of oil equivalent per day (MBOE/D) and refining capacity of 1 MBOE/D. The merger will create a global E&P company, which would be better positioned to fully exploit Talisman’s large, undeveloped resource base.
3. Independent energy explorer EOG Resources Inc. (EOG-Free Report) fell prey to lower oil prices and reported weak fourth-quarter 2014 earnings, notwithstanding improving production from its U.S. onshore assets. In the quarter, EOG’s total volume rose 14.7% from the year-earlier level to 56.1 million barrels of oil equivalent, primarily driven by significant contribution from the company’s South Texas Eagle Ford, along with North Dakota Bakken and Delaware Basin.
Looking to stem the rot from plunging oil prices, EOG has pegged its 2015 capital budget at $4.9–$5.1 billion, down 40% from last year’s level. Further, the company plans to restrict its expenses to the highest return assets: the Eagle Ford, Delaware Basin and Bakken plays.
(See More: EOG Resources' Q4 Earnings Miss Estimates, Revenues Beat.)
4. North American energy firm Williams Companies (WMB-Free Report) reported weak fourth-quarter 2014 adjusted earnings from continuing operations. A significant increase in operating and maintenance cost along with a weak performance by the company’s largest income generating business segment − Williams Partners – hampered the results.
Moreover, Williams Companies lowered its 2015 cash dividend guidance to $2.38 per share from the prior projection of $2.46. For 2015 through 2017, the company revised its dividend hike expectation down from 15% to 10%−15%. The assumption of weak oil and gas prices has weighed on management’s dividend growth guidance. (See More: Williams Misses Q4 Earnings, Guides Dividend Down.)
5. Marathon Oil Corp. (MRO-Free Report) – a leading oil and natural gas exploration and production (E&P) firm – reported weak fourth-quarter 2014 earnings. Considerably low crude oil realizations and condensate prices along with higher exploration expenses hurt the results.
Marathon Oil projects capital spending of $3,521 million in 2015, a 20% reduction from the earlier guidance. The company further added that nearly 70% of the capex will be directed toward its three core U.S. resource plays. (See More: Marathon Oil Reports Q4 Loss on Low Prices, Cuts '15 Capex.)
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on CVX - FREE
Get the full Report on TLM - FREE
Get the full Report on EOG - FREE
Get the full Report on WMB - FREE
Get the full Report on MRO - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CHEVRON CORP (CVX): Free Stock Analysis Report TALISMAN ENERGY (TLM): Free Stock Analysis Report EOG RES INC (EOG): Free Stock Analysis Report WILLIAMS COS (WMB): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report To read this article on Zacks.com click here.
|