MMP

Shares of Newsletter Portfolio Idea Exxon Mobil Are Booming Higher!

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Image Source: Newsletter portfolio idea Exxon Mobil Corporation has seen its share price boom higher over the past year. We see room for additional capital appreciation upside potential going forward. By Callum Turcan Shares of Exxon Mobil Corporation (XOM) have boomed higher over the past year, and we see room for additional capital appreciation upside potential. Our fair value estimate for Exxon Mobil sits at ~$90 per share, though in the current raw energy resources pricing environment, the top end of our fair value estimate range may prove to be a more pertinent gauge of Exxon Mobil’s intrinsic value. We are huge fans of the energy major and include Exxon Mobil in the Best Ideas Newsletter, Dividend Growth Newsletter, and … Read more

Chevron Buys Renewable Energy Group

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Image Shown: Chevron Corporation is acquiring Renewable Energy Group Inc through an all-cash deal that was announced at the end of February 2022. Image Source: Renewable Energy Group Inc – October 2020 IR Presentation By Callum Turcan On February 28, Chevron Corporation (CVX) announced it would acquire Renewable Energy Group Inc (REGI) through an all-cash transaction. The energy giant is paying $61.50 per share in cash for each share of the renewable fuel producer through a deal with a total enterprise value of $2.75 billion when including Renewable Energy Group’s $0.4 billion net cash position. During the second half of 2022, the transaction is expected to close. Overview  Renewable Energy Group produces biofuels with a heavy emphasis on biodiesel and … Read more

Evaluating the Exposure of Chevron and Exxon Mobil to Russia’s Energy Industry

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Image Shown: Shares of Chevron Corporation (blue line) and Exxon Mobil Corporation (orange line) have skyrocketed over the past six months. By Callum Turcan In the wake of Russia invading Ukraine (again) in February 2022, geopolitical tensions between the West and Russia have reached levels last seen during the height of the Cold War. At the beginning of March 2022, near term WTI and Brent futures were trading north of $100 per barrel while liquified natural gas (‘LNG’) spot prices and European natural gas prices remained incredibly expensive. The supply-demand dynamics for crude oil and natural gas were already tight before this crisis, and in light of the expansive sanctions programs enacted by the West and some of its allies … Read more

ALERT: High Yield Dividend Newsletter Portfolio Changes

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Image: Mike Cohen Summary of Changes AT&T (T) – remove Global X SuperIncome Preferred ETF (SPFF) – to 5% from 10% Vanguard Real Estate ETF (VNQ) – to 5% from 10% Chevron Corporation (CVX) – initiate at 5% ExxonMobil Corporation (XOM) – initiate at 5% Magellan Midstream Partners, L.P. (MMP) – to 5% from 2.5% Enterprise Products Partners L.P. (EPD) – to 5% from 2.5% By Brian Nelson, CFA We released the Valuentum Weekly last night, which can be accessed here , but we saved our note regarding the High Yield Dividend Newsletter portfolio changes as well as portfolio updates to today, November 8. A few weeks ago, we mentioned that we had a change of heart with AT&T (T). … Read more

Our Favorite Energy Giants Chevron and ExxonMobil are Focused on Returning Cash to Shareholders

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Image Shown: Shares of Chevron Corporation (blue line) and ExxonMobil Corporation (orange line) are both up sharply year-to-date as of this writing. By Callum Turcan Two of our favorite energy companies, Chevron Corporation (CVX) and ExxonMobil Corporation (XOM), recently reported their third quarter 2021 earnings reports. We include Chevron and ExxonMobil as ideas in both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios given their ample capital appreciation upside and promising dividend growth trajectories. The top end of our fair value estimate range for Chevron and ExxonMobil stands at $144 per share and $110 per share, respectively, well above where each company’s shares are trading as of this writing. Shares of CVX yield ~4.7% and shares of XOM yield … Read more

Schlumberger Recovering, Outlook Bright

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Image Shown: Shares of Schlumberger NV are on the upswing, though the company’s stock price remains far below levels seen before the COVID-19 pandemic. By Callum Turcan On October 22, the oilfield services giant Schlumberger NV (SLB) reported third-quarter 2021 earnings that missed consensus top-line estimates and matched consensus bottom-line estimates. The company’s business continues to recover as oil & gas investment activity is picking up steam around the globe after getting decimated last year in the face of the coronavirus (‘COVID-19’) pandemic. Looking ahead, Schlumberger expects significant improvement in its mid-cycle financial performance from current levels, aided by major cost structure improvements embarked on last year. Financial Snapshot The firm’s GAAP revenues grew by 11% year-over-year due to growth … Read more

Booming Natural Gas Prices Great News for Chevron and ExxonMobil

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Image Shown: Chevron Corporation – August 2021 IR Presentation By Callum Turcan Natural gas prices in the US measured by the Henry Hub benchmark (UNG) based in Erath, Louisiana, have surged higher over the past several months. This is partially due to the slowdown in domestic oil & gas development activity that occurred back in 2020 in the wake of the coronavirus (‘COVID-19’) pandemic and low crude oil prices. Though crude oil prices, measured by the domestic WTI (USO) and international Brent (BNO) benchmarks, have since recovered, that has not resulted in domestic drilling activity returning to levels seen in 2019, though development activity has recovered somewhat. Henry Hub futures are trading north of $5 per million British thermal units … Read more

Our Two Favorite Midstream MLPs: EPD and MMP

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Image Source: Enterprise Products Partners L.P. – August 2021 IR Presentation In our High Yield Dividend Newsletter portfolio (more on that here), we include Enterprise Products Partners L.P. (EPD)—8.1% yield—and Magellan Midstream Partners L.P. (MMP)—8.7% yield—as ideas with modest “weightings” as these are our two favorite midstream master limited partnerships (‘MLPs’). The global economy is steadily recovering from the worst of the coronavirus (‘COVID-19’) pandemic, though variants of the virus remain a concern. Enterprise Products and Magellan Midstream are well-positioned to capitalize on this recovery while continuing to make good on their “generous” payout obligations. Enterprise Products  When Enterprise Products reported its second quarter 2021 earnings in late-July 2021, the midstream MLP showcased the positive impact the ongoing recovery in … Read more

ExxonMobil Continues to Optimize Its Asset Base

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Image Source: ExxonMobil Corporation – Second Quarter of 2021 IR Earnings Presentation By Callum Turcan According to Reuters, ExxonMobil Corporation (XOM) is in the process of divesting its Fayetteville shale play position in Arkansas, which ExxonMobil’s spokeswoman Julie King confirmed according to the news outlet. This is an upstream asset focused on the extraction of natural gas from the ground via “fracking” techniques (combing horizontal drilling and hydraulic fracturing to unlock raw energy resources from the ground). Divestment Overview The Fayetteville shale play was once touted as a major part of America’s way to become “energy independent” during the early days of the fracking boom. However, the play soon lost favor with energy firms large and small due to the … Read more

Chevron Posts a Great Earnings Update, Share Repurchases to Resume

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Image Shown: An overview of Chevron Corporation’s performance in the second quarter of 2021. We include shares of Chevron as an idea in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios and continue to be huge fans of the name as the global energy complex continues to recover from the worst of the coronavirus (‘COVID-19 pandemic). Image Source: Chevron Corporation – Second Quarter of 2021 IR Earnings Presentation By Callum Turcan We added shares of Chevron Corporation (CVX) as an idea to both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios back on June 27, 2021 (link here). The outlook for the global energy complex continues to improve significantly from the worst of the coronavirus (‘COVID-19’) pandemic, … Read more