Chevron's most recent trend suggests a bearish bias. One trading opportunity on Chevron is a Bear Call Spread using a strike $117.00 short call and a strike $122.00 long call offers a potential 47.93% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $117.00 by expiration. The full premium credit of $1.62 would be kept by the premium seller. The risk of $3.38 would be incurred if the stock rose above the $122.00 long call strike price.
The 5-day moving average is moving down which suggests that the short-term momentum for Chevron is bearish and the probability of a decline in share price is higher if the stock starts trending.
The 20-day moving average is moving down which suggests that the medium-term momentum for Chevron is bearish.
The RSI indicator is at 42.31 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for Chevron
BP's Alaska Exit Is a Sign of Oil's Times
Wed, 28 Aug 2019 07:00:10 +0000
(Bloomberg Opinion) — There goes the other pipeline. Back in the day, BP Plc was sometimes dismissed as a “two-pipelines company.” This referred to two of its biggest positions: The Forties field and pipeline system in the North Sea and the Trans Alaska Pipeline bringing oil south from the Prudhoe Bay wells in Alaska. Forties was sold off in 2003 (the field) and 2017 (the pipes). Now, BP is leaving Alaska.In some respects, the $5.6 billion sale of the company’s Alaska portfolio is par for the course. BP has been selling assets for much of this decade in order to fund compensation and reshape the business after 2010’s Macondo blowout. More generally, selling mature oil and gas fields to smaller, independent companies planning to squeeze out more is a standard part of the development cycle. In 2003, Apache Corp. took Forties; the Alaska sale is to privately held Hilcorp Energy Co. To be an oil major is to be constantly ranking projects in terms of potential and deciding if you’re better off keeping them or flogging them.Yet the symbolism is inescapable. Alaska is embedded deeply in BP’s history and identity. Former CEO Lord John Browne, who led the late 20th-century mega-mergers that transformed BP from a two-pipeline company, kicked off his career there in 1969, just after BP struck oil. One of those big deals he ended up doing, the $33 billion acquisition of Atlantic Richfield Co. in 2000, was predicated in part on consolidating BP’s position in Alaska – only for antitrust regulators to force the sale of those particular assets to Phillips Petroleum Co. (now ConocoPhillips).Back then, BP was on the hunt for “elephants,” or giant oil and gas fields that typically took many years – and country-sized balance sheets – to develop. Hence Browne’s acquisition spree.The world has moved on. While producers still relish big discoveries, the intervening boom and bust in oil prices has made investors leery of big-ticket investments and more demanding in terms of payouts. Apart from, by and large, holding capex budgets in check, oil majors have been retreating from traditional strongholds, with Royal Dutch Shell Plc virtually leaving the Canadian oil sands, Chevron Corp. recently exiting the U.K. North Sea and Exxon Mobil Corp. putting its Norwegian assets up for sale. BP put its own Norwegian business into a joint venture in 2016.Meanwhile, they have been diverting cash to dividends and buybacks in order to keep investors onside – BP’s stock yields almost 7% – as well as directing more of their capex to shorter-cycle shale development.BP paid BHP Group Plc $10.5 billion in cash for its shale assets last year. Besides reducing BP’s leverage at a dicey time for oil prices, the Alaska deal can be seen as swapping out of an old, conventional position to help fund expansion in unconventional oil and gas. In that sense, selling Alaska throws the spotlight on these new assets where, like several of its peers, BP is trying to prove that the majors’ scale – which worked in such places as Alaska – can also be an advantage in shale.Alaska is viewed by some as a growth area, particularly – with grim irony – as climate change and the energy-dominance aspirations of the current U.S. administration open up more of it for potential development. However, as a sensitive, remote and challenging environment, it carries extra risks and costs for producers, including the potential for future administrations to restrict activity there again. The state’s oil boom truly began when the panic of the 1973 oil shock swept aside opposition to the construction of the Trans Alaska Pipeline. Its future from here will be shaped at least in part by the challenges of excess oil and associated emissions.Faced with this much change and the need to adapt, there really can be no sacred cash cows.To contact the author of this story: Liam Denning at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Gongloff at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
10 Superior Dividend Stocks
Wed, 28 Aug 2019 05:00:00 +0000
For starters, the management teams at these companies are focused on delivering a growing cash stream to their shareholders–and income is a key component of total return. To uncover a few dividend-growth stocks to investigate further, we're turning to the top constituents in the Morningstar US Dividend Growth Index. The index focuses on companies with a history of dividend growth and an ability to sustain it.
The Permian Basin Is Getting More Toxic to Investors
Tue, 27 Aug 2019 16:09:41 +0000
Operators in the US’s hottest oil field have not made good investment returns Continue reading…
Advisory: Chevron VP Presents Permian Performance Webcast at Barclays Conference
Mon, 26 Aug 2019 19:30:00 +0000
Jeff Gustavson, Vice President, Chevron North America Exploration & Production Mid-Continent Business Unit, will deliver a presentation to the Barclays 2019 CEO Energy – Power Conference Wednesday, September 4th, 2019 at 8:25 AM EDT.
Don’t Count on High Returns With Exxon Mobil
Mon, 26 Aug 2019 16:27:00 +0000
Exxon Mobil (NYSE:XOM) stock needs something to move the needle. Shares in the oil and gas giant have been stagnant year-to-date. The stock opened 2019 at $67.35. At the market close Aug. 23, shares traded at $67.49. But in the long term, could investors see a material boost in the XOM stock price? The company is making big moves to ramp up production, with expectations to double earnings by 2025.Source: Jonathan Weiss / Shutterstock.com Should investors join the ride and buy XOM stock? Or with the specter of a recession looming, should they sit tight and buy at a better price?Let's take a closer look at XOM and see what's the verdict.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Increased Exploration Offers Opportunity (and Risk)As I discussed in July, the company is pursuing high-ROI exploration opportunities. So far, their Permian Basin project has been a large success. Based on the most recent earnings announcement, production is up 20% from the prior quarter, and up 90% year-over-year. The company's Guyana project is still in the early stages. But Exxon Mobil expects gross production could be over 750,000 barrels per day by 2025.Exxon Mobil stock needs exploration success to move the needle. The company's upstream operations are the current profit driver. Downstream (refining and marketing) operations continue to struggle. The refining unit swung from a $256 million loss in the first quarter of 2019 to $451 million in earnings for the second quarter. But quarterly earnings continue to be down from the prior year's quarter ($724 million).Refining margins are starting to improve, and the company is wrapping up required maintenance. XOM's chemical unit also continues to struggle. Unit earnings for the quarter were $188 million, down from $518 million in the first quarter of 2019. * 7 "Boring" Stocks With Exciting Prospects But it isn't all smooth sailing. A lot could change in the oil market between now and 2025. A global recession could cause oil prices to fall further. Even if Exxon's new exploration efforts have a low breakeven point, the return on investment would be impacted.As InvestorPlace contributor Will Ashworth discussed last week, the company is taking a big risk boosting exploration efforts. The potential payoff is significant. But when oil could potentially fall further in the coming years, their capital investments may not produce a significant return. In addition, cash flow could decline, threatening both the dividend and the XOM stock price.With this in mind, is XOM stock worth the risk? Let's take a look at valuation and see how Exxon Mobil stock stacks up to peers. XOM Stock ValuationExxon Mobil stock continues to trade at a premium to its integrated oil and gas peers. XOM stock trades at a forward price-to-earnings ratio of 14.4. The company's enterprise value/EBITDA ratio is 9.4. Here are the corresponding earnings multiples of the company's closest competitors:BP (NYSE:BP): Forward P/E of 9.4, EV/EBITDA of 5.8Chevron (NYSE:CVX): Forward P/E of 13.7, EV/EBITDA of 7.4ConocoPhillips (NYSE:COP): Forward P/E of 12.1, EV/EBITDA of 4.1Royal Dutch Shell (NYSE:RDS.A, NYSE:RDS.B): Forward P/E of 9.2, EV/EBITDA of 5.5The company's high dividend yield (5.2%) may help sustain the XOM stock price. With interest rates continuing to fall, it's tough to find a high-quality 5%+ yield in today's market. But is the company's dividend sustainable? Exxon's payout ratio is currently almost 80%. This means that the company needs increased earnings to grow the dividend. XOM is for now a dividend aristocrat. But a tougher oil market and increased capital expenditures could change that. Any sort of slowdown in the annual dividend increase (or a dividend cut) could materially impact the XOM stock price. Exxon Mobil Stock Is Stable, But Not a Big OpportunityExxon Mobil stock is not the biggest opportunity in the oil and gas space. While the company is making big moves with their Permian and Guyana projects, this ramp-up in capital investment is going on as global oil prices remain volatile. If oil sees a jump in price over the next five years, the XOM stock price will see a massive boost. But if oil prices continue to fall, the company may not be able to continue their long track record of growing the dividend.What does this mean for investors? Should they avoid Exxon Mobil stock? The other oil and gas names may be better buying opportunities. But a material drop in the XOM stock price could make it a screaming buy. However, with the stock's current high yield, it is doubtful the stock will start trading closer to the valuation of its peers.XOM stock is stable, but look elsewhere for big returns.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 "Boring" Stocks With Exciting Prospects * 15 Cybersecurity Stocks to Watch as the Industry Heats Up * 5 Healthcare Stocks to Buy for Healthy Dividends The post Don't Count on High Returns With Exxon Mobil appeared first on InvestorPlace.
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