The Zacks Analyst Blog Highlights: Exxon Mobil, Chevron, Apache, Halcon Resources and Noble
CHICAGO, Aug. 6, 2014 /PRNewswire/ -- 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. (NYSE:XOM-Free Report), Chevron Corp. (NYSE:CVX-Free Report), Apache Corp. (NYSE:APA-Free Report), Halcon Resources Corp. (NYSE:HK-Free Report) and Noble Corp. (NYSE:NE-Free Report).
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Here are highlights from Tuesday's Analyst Blog:
Oil & Gas Stock Roundup
Despite coming out with earnings beat last week, investors punished integrated oil biggies Exxon Mobil Corp. (NYSE:XOM-Free Report) and Chevron Corp. (NYSE:CVX-Free Report) on worries over their declining production trends.
Overall, it was a mixed week for the sector. West Texas Intermediate (WTI) crude futures were down more than 4% during the period to close at $97.88 per barrel. However, natural gas prices snapped a six-week losing streak and ended the week at $3.8 per million Btu (MMBtu), up slightly from the previous week.
Oil prices tumbled to a six-month low to fall further below $100, as a bearish supply data renewed speculation about the commodity's domestic demand, particularly that of fuel products like gasoline.
Natural gas fared better, helped by a smaller-than-expected supply gain. But this was mostly offset by expectations of tepid electric power demand with forecasts of mild weather conditions across most parts of the U.S.
Recap of the Week's Most Important Stories
1. Integrated supermajors Exxon Mobil and Chevron reported strong second quarter results due to higher realizations on their lucrative crude oil exploration and production business. But worryingly, the biggies continue to struggle to grow production despite spending billions in capital expenditures. Both the companies reported year-over-year decline in second quarter volumes. As a result, Exxon and Chevron lost 4% and 3.7%, respectively, over the past week.
2. U.S. energy firm Apache Corp. (NYSE:APA-Free Report) reported in-line second quarter earnings amid strong North American liquids production growth and higher commodity prices. Importantly, pressured by activist hedge fund Jana Partners LLC, Apache informed that it plans to exit from two major natural gas projects in Australia and Canada. The company emphasized that it is focused on rebalancing its portfolio, targeting predictable and profit-oriented production growth in North America. (Read More: Apache Q2 Earnings In Line, Pulling Out of LNG)
3. Shares of Houston, TX-based oil and gas producer Halcon Resources Corp. (NYSE:HK-Free Report) fell more than 10% despite excellent second-quarter 2014 results. The company easily beat estimates, primarily on higher output from Williston Basin and increased oil price realization. However, investors were spooked by uncertainty in the Tuscaloosa Marine Shale (TMS), where Halcon is planning to drill eight operating wells by the second half of this year. The company's delay in announcing the results of the TMS-based Black Stone 4H-2 well has made shareholders skeptical about the feasibility of the unconventional play. (Read More: Halcon Resources Shares Fall on TMC Concern Post Q2 Earnings)
4. Leading contract drilling company Noble Corp. (NYSE:NE-Free Report) declared the completion of the spin-off of its affiliate Paragon Offshore plc into a separate, publicly-traded entity. Regular-way trading of the ordinary shares of Paragon Offshore started on the NYSE yesterday. Paragon now possess the majority of standard specification drilling operations of Noble. Noble, on the other hand, will go on operating its high-specification businesses.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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