TOT

Marathon Oil: Riding a Rollercoaster

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Image Source: Marathon Oil Investor Presentation Let’s take a look at how Marathon Oil, a midsized oil & gas producer, is navigating capricious oil markets at a time when the industry is waiting to see what impact the OPEC+ production cut deal might have on global energy markets. By Callum Turcan Key Takeaways Marathon Oil has built its asset base around four key unconventional oil and gas plays in the US in the Permian Basin, the SCOOP/STACK, the Eagle Ford, and the Bakken. Its goal is to develop well locations within its unconventional drilling inventory that are liquids-rich, enabling the firm to grow crude production, which carries higher margins. In light of recent geopolitical events, it is possible oil prices … Read more

Upstream Oil Major On the Upswing

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Image Source: Author’s Calculations and SEC Filings ConocoPhillips appears poised to grow its dividend thanks to a materially healthier balance sheet and an improving free cash flow profile. Volatile energy resource pricing will always be a long-term risk to the payout, but the near term looks bright for the upstream oil major. By Callum Turcan ConocoPhillips (COP) may present a strong dividend growth opportunity as it appears set to build upon its current 1.8% dividend yield. First, let’s cover exactly what forced the company to cut its dividend a few years back, and then dig into the potential drivers for dividend growth in the coming years. ConocoPhillips spun-off its downstream division and a large part of its midstream operations from … Read more

Update on 5 Top Energy Stocks: KMI, ETP, EPD, MMP, XOM

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We generally like the diversification provided in the Energy Select SPDR ETF (XLE) as one way to consider exposure to the energy resource arena, but let’s get the highlights on some of the most-viewed energy-related ideas on our website: Kinder Morgan, Energy Transfer Partners/Equity, Enterprise Product Partners, Magellan Midstream, and Exxon Mobil. By Kris Rosemann and Brian Nelson, CFA An estimate of intrinsic value is as important as a view that shares of a company are undervalued or overvalued, and we think an application of a fair value estimate range is most helpful. The question, “What is a company worth?”, remains paramount to any investment thesis. The fair value estimate is the outcome of any research and analysis. We’d view … Read more

ETF Analysis: Energy

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Valuentum’s Weighted Average Cost of Capital (WACC) Distribution

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The weighted average cost of capital is one of the most subjective measures in corporate finance, but it is also one of the most important ones. “The most important item over time in valuation is obviously interest rates…If interest rates are destined to be at low levels…It makes any stream of earnings from investments worth more money. The bogey is always what government bonds yield….Any investment is worth all the cash you’re going to get out between now and judgment day discounted back. The discounting back is affected by whether you choose interests rates like those of Japan or interest rates like those we had in 1982…When we had 15 percent short-term rates in 1982, it was silly to pay … Read more

Study: Valuentum’s Best Ideas Newsletter Portfolio

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To read the study, please click on the image to download the pdf document (pdf).

Oil Majors Benefit from Higher Energy Resource Prices

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Exxon Mobil, ConocoPhillips, and Chevron reported improved earnings and cash flow during the first quarter of 2018, thanks largely to higher realized energy resource pricing. The group may be better positioned for further bottom-line expansion moving forward as volume growth is expected to continue over the course of the year. By Kris Rosemann Key Takeaways Crude oil markets continue to improve, and higher realized prices are benefitting major oil producers, but geopolitical uncertainty and strong growth in US production continue to cast shadows over the space. The unpredictable nature of commodity prices, and the geopolitical uncertainty that sometimes drives them, will never go away. Exxon Mobil’s earnings and free cash flow generation improved thanks to higher realized prices, and its … Read more

ICYMI: Valuentum’s Improved Stock and ETF Web Pages

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Valuentum has rolled out improved stock and ETF web pages on its website valuentum.com/. Now, subscribers can access key proprietary information on the stock and ETF web pages in addition to the customary stock and ETF reports. Dear reader, We have some exciting news that we can’t wait to share with you! At valuentum.com/, we have rolled out new stock and ETF pages that conveniently include a variety of our proprietary metrics from the Dividend Cushion ratio to the Economic Castle rating and beyond! There’s even mouseover functionality so you can learn about how we define the key metrics across our stock-selection and dividend growth methodologies. You’ll still have access to the stock and dividend reports on the landing pages, … Read more

The “Luck” and “Randomness” of Index Funds

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Please select the image below to download the document. Image shown, page 1 of 14. Tickerized for Valuentum’s coverage universe.

Tweaking the Newsletter Portfolios for a Rising Interest-Rate Environment

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Image Source: CreditCafe.com. 

Many market observers are anticipating the Fed to accelerate the pace of interest-rate hikes in 2018. We’re making a number of changes to the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio as we consider what a higher interest-rate environment might look like. We’re also cognizant of the impact that higher interest rates may have on the High Yield Dividend Newsletter and its simulated portfolio, the first edition to be released January 1, 2018.