Chicago, IL – May 06, 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 Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), ConocoPhillips (COP), Valero Energy Corp. (VLO) and Marathon Petroleum Corp. (MPC).
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 clocked their largest monthly gain since May 2009 and natural gas rallied to a five-week high. However, with earnings again remaining front and center, the major headlines came from Exxon Mobil Corp. (XOM) and Chevron Corp.’s (CVX) first quarter outperformance, where they saw off plunging oil prices to beat estimates on refining strength.
Overall, it was a bullish week for the sector. While resurgent West Texas Intermediate (WTI) crude futures climbed 3.5% to close at $59.15 per barrel, natural gas prices slumped around 8% to $2.78 per million Btu (MMBtu). (See the last ‘Oil & Gas Stock Roundup’ here: Weatherford Posts Q1 Loss, to Cut 10,000 Jobs.)
Oil prices gained for the sixth time in past 7 weeks, encouraged by the U.S. Energy Department's latest inventory release that showed supplies at the Cushing, Oklahoma storage hub fell for the first time since November. This is seen as a precursor to a slowdown in oil production leading to a subsequent drop in the commodity’s bloated supply level. Things were further helped by the Baker Hughes report that showed another drop in oil-directed rigs – the 21st in succession – indicating a brake in shale drilling activities.
Natural gas fared even better amid predictions of robust cooling demand with forecasts of warmer-than-average temperature in the Midwest and Northeast regions of the U.S. A lower-than-expected supply increase added to the optimism.
Recap of the Week’s Most Important Stories
1. Integrated supermajors like Exxon Mobil Corp. and Chevron Corp. must be glad they did not let go their refineries, when many others did. Both the companies reported better-than-expected first quarter earnings – amid plunging commodity prices – on improved downstream results that saw refining margins climb on lower input costs.
What’s more, the big firms have been able to grow production after spending billions in capital expenditures. Both the companies reported year-over-year increase in first quarter volumes.
2. Houston-based independent exploration and production company ConocoPhillips (COP) reported narrower-than-expected first quarter loss on improved volumes. Daily production averaged 1.610 million barrels of oil equivalent (MMBOE) in the quarter, up from 1.532 MMBOE in the year-ago quarter. However, sales decreased from the year-ago level and also missed the Zacks Consensus Estimate by a considerable margin, plagued by sharply lower oil realizations. Average realized price for oil was $48.05 per barrel compared with $101.59 in the year-earlier quarter.
ConocoPhillips expects to deliver 2–3% production growth in 2015. For the second quarter of 2015, production from continuing operations is expected at 1,555–1,595 MBOED, excluding Libya. (See More: ConocoPhillips Q1 Loss Lower than Expected, Revenues Miss)
3. Oil Refiner Valero Energy Corp. (VLO) came out with strong first quarter earnings on the back of higher refining throughput margins and lower refining operating expenses.
Throughput margins increased to $12.39 per barrel from the year-ago level of $10.90 per barrel. Though total operating cost per barrel inched up 0.5% year over year to $5.66 during the quarter, refining operating expense per barrel was $3.95 compared with $3.99 in the year-ago quarter. (See More: Valero Surpasses Q1 Earnings and Revenue Estimates)
4. Ohio-based independent oil refiner and marketer Marathon Petroleum Corp. (MPC) reported strong first quarter results, owing to higher crack spreads and lower costs. Total refined product sales volumes were 2,246 thousand barrels per day (mbpd) compared with 1,964 mbpd in the year-ago quarter. Throughput improved from 1,650 mbpd in the year-ago quarter to 1,852 mbpd.
Marathon Petroleum reported expenses of $15,770 million in first-quarter 2015, 31.4% lower than $22,984 million in the year-ago quarter. In a separate development, the fourth largest U.S. refiner announced a 2-for-1 stock split to be distributed in the form of a stock dividend. (See More: Marathon Petroleum Q1 Earnings & Revs Top, Plans Stock Split)
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today. 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 EXXON MOBIL CRP (XOM): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report VALERO ENERGY (VLO): Free Stock Analysis Report MARATHON PETROL (MPC): Free Stock Analysis Report To read this article on Zacks.com click here.
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