The first factor I want to look at is the curious case of the US rig count decline, even as oil prices have seen a dramatic increase since the beginning of the year. – via seekingalpha.com It remains to be seen whether this trend of declining rig activity, even as oil prices remain relatively firm.
Why? #Cash is King ,#Cashflow, Wallstreet has been pushing Oil companies to show more positive cash flow, and it’s working. Top 20 Oil Companies Improved Cash Flow By $34 Billion . Capital expenditures are the main reason that FCF went deeply negative for so many companies in recent years. When oil prices were $100 a barrel, oil companies invested every penny they could get their hands on into producing more oil. – It is true that capital expenditures are the main reason that FCF went deeply negative for so many companies in recent years. – Forbes.com In 2018 Only 10 of the 32 Fracking Companies secured positive cash flows towards the end of the year.
Marathon Petroleum Stock takes a beating!!
Marathon Petroleum (MPC) closed the most recent trading day at $54.83, moving -1.17% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.02%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.17%.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.39 per share and revenue of $115.47 billion. These totals would mark changes of -35.25% and +18.92%, respectively, from last year. – Zacks Equity Research
The oil-rich Permian basin is slowing – Bad News For Halliburton?
Halliburton is days away from reporting 2Q19 earnings, and a shift in the narrative regarding North America could be bad news for Halliburton. Why? Below we take a look.
- High well-decline rates burning cash as investors stay away
- Smaller producers fight to survive, bigger ones cutting back
The promise of the Permian is shrinking.
Producers in the nation’s oil-rich shale basins are dialing back growth plans in the face of a growing panoply of problems that’s killing returns and keeping skeptical investors at bay. – https://www.bloomberg.com
Zacks Consensus Estimates are projecting earnings of $1.33 per share and revenue of $24.23 billion, which would represent changes of -30% and +0.98%, respectively, from the prior year.