Tag Archives: PSX

Has ConocoPhillips Reached An Inflection Point? [Seeking Alpha]

Despite mixed Q1 results, ConocoPhillips (COP) could be approaching a very significant inflection point for its operation while it continues to improve its bottom line.

ConocoPhillips, with a market cap of $71.93B, is the largest independent U.S. oil and natural gas producer. COP operates as an integrated energy company, exploring for, producing, transporting and marketing crude oil, natural gas, natural gas liquids and liquefied natural gas, globally. COP is organized into Exploration and Production, Midstream, Refining and Marketing, LUKOIL Investment, Chemicals, and Emerging Businesses segments.

Mixed Results

For Q1, 2012, COP’s net income fell to $2.14B ($1.73 per share) from $2.94B ($2.27 per share). Excluding discontinued operations, COP earned $1.42 per share. After spinning off Phillips 66 (PSX), COP’s downstream business, in Q2, 2012, COP’s income was negatively impacted by $700M. Excluding PSX’s impact, the earnings were about the same a year ago. Total revenues fell 10% to $14.65B, from $16.08B the previous year. According to FactSet, analysts, on average, expected adjusted net income of $1.42 per share on revenue of $12.79B.

Falling Production

Earlier in January, the management indicated that oil and gas production may reach a low point this year as the company completes a multi-year restructuring and asset sale program. Oil and gas output from continuing operations declined to 1.56 million barrels oil equivalent ((boe)) per day from 1.58 million boe per day a year earlier.

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Anadarko And Phillips 66: Fundamental Improvement Continues [Seeking Alpha]

Anadarko Petroleum Corporation (APC) and Phillips 66 (PSX) are two energy stocks, with higher margins and stronger ROEs compared with their peers, gaining with fundamental improvements. Both stocks will be analyzed fundamentally and technically in this article. Investing strategies will also be presented.

Anadarko Petroleum Corporation

APC was up 3.75% and closed at $86.40 on March 20, 2013. APC had been trading in the range of $56.42-$87.50 in the past 52 weeks. APC has a market cap of $43.25B with a beta of 1.53.

On March 20, 2013, UBS reiterated an overweight rating and increased its target price from $102 to $105 for APC. On March 18, 2013, Barclays also reiterated an outperform rating and increased the target price from $101 to $102 for APC. Analysts currently have a mean target price of $104.13 and a median target price of $100.00 for APC, suggesting 15.74%-20.52% upside potential. Analysts, on average, are estimating an EPS of $0.89 with revenue of $3.47B for the current quarter ending in March, 2013. For 2013, analysts are projecting an EPS of $4.02 with revenue of $15.05B, which is 12.20% higher than 2012.

On March 21, 2013, APC announced a U.S. Gulf of Mexico oil discovery that may produce more than half a billion barrels of crude. As reported by Bloomberg, the well, drilled to almost 6 miles (9.6 kilometers) beneath the seafloor in water 5,800 feet deep, encountered oil deposits more than 1,000 feet thick. John Malone, an analyst for Global Hunter Securities LLC believes the field may produce 700 million barrels of oil, more than twice a previous estimate. The discovery adds $3 a share to Anadarko’s value as indicated by Brian Lively, an analyst for Tudor, Pickering, Holt & Co.

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Top 2 Bullish Stocks On Thursday: Phillips 66 And Amarin [Seeking Alpha]

Today’s market sentiment is driven by extreme greed, with the Fear & Greed Index at 86, which had increased from the previous closing of 85. As reported by CBOE, the total put/call ratio for today was 0.79. The index put/call ratio was 0.84, and the equity put/call ratio was 0.61. The CBOE volatility index (VIX) put/call ratio was 0.45. In the following, top stocks had been identified through our daily options scanning process, with the scanning criteria where the daily call volume ratio was above 2.00 (2x of the average call volume) with a call volume above 10,000.

Name (Ticker) Call Volume Average Call Volume Daily Volume Ratio
Phillips 66 (PSX) 29,071 13,603 2.14
Amarin Corporation (AMRN) 51,059 8,122 6.29

Source: Schaeffer’s Research

Unusual option activities can be an indicator or precursor of a major movement for the underlying stock. This article will try to identify the bullish factors for Amarin Corporation and Phillips 66.

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Phillips 66 Is A Buy With Improving Asset Utilization [Seeking Alpha]

Phillips 66 (PSX) is a holding company engaging in producing natural gas liquids, NGL, and petrochemicals. PSX operates 15 refineries with a total throughput capacity of 2,485 m/d. Its DCP midstream joint venture holds 61 natural gas processing facilities, 12 NGL fractionation plants, and a natural gas pipeline system with 62,000 miles of pipeline. Its CPChem chemical joint venture operates facilities in the United States and the Middle East, and primarily produces olefins and polyolefins. While PSX had attractive ventures in DCP midstream and CPChem, its main revenue is still from the refining and marketing segment, which is currently producing strong earnings in a healthy operating environment. By divesting underperforming assets on the East Coast and initiating improvement plans, PSX is expected to improve its overall competitive position and continue to generate strong cash flow.

Recent Developments

With the latest announcement, PSX intends to redirect some of its transportation assets to form a master limited partnership, and it also unveiled a $3.7 billion capital program for next year, up 6% from 2012’s estimate. As reported by the Houston Business Journal, “the company expects to file a registration statement for the initial public offering in the second quarter of 2013 and sell a minority stake in the MLP in an IPO in the second half of the year. Phillips 66 estimates $300 million to $400 million will be raised in the IPO.” “We expect to use the master limited partnership as an efficient vehicle to fund growth investments in the transportation and midstream sectors,” said Chief Executive Greg Garland. However, it is still unknown which parts of PSX’s refining and marketing segments will be contributed to the MLP.

Read more HERE.

Top 3 Stocks With Unusual Call Activities On Thursday [Seeking Alpha]

The market opened flat after mixed economic data was reported. The initial claims number of 343k was lower than the market expectation of 375k, and the continuing claims number of 3198k was slightly below the expectation of 3200K. However, retail sales number of 0.3% was below the market expectation of 0.4%. The market started to turn around at 10:20AM and continued to decline as the concern on fiscal cliff continued.

NASDAQ declined with 0.72% loss and Dow Jones closed with a 0.56% drop. S&P 500 also joined the decline with 0.63% loss. PowerShares QQQ Trust ETF (QQQ) fell below its 50-day MA of $65.58 and 200-day MA of $65.40 and closed at $65.31. SPDR Dow Jones Industrial Average ETF (DIA) still stayed above its 50-day MA of $130.84 by closing at $131.82. SPDR S&P 500 ETF (SPY) also remained above its 50-day MA of $141.85 and closed at $142.63. Consumer cyclical sector led all the sectors with 0.93% loss while transportation sector was the only sector gaining with 0.05% increase.

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