Source: ThinkstockUntil about 2008 or so, discussion about the future price of crude oil was directed by the concept of peak oil. That is, when does the world reach peak production, after which the price of crude will skyrocket. In less than a decade, the discussion is now focused on the concept of “peak demand,” the point at which global demand for crude begins to decline.
The recent Oil & Money conference in London sharpened the focus on peak demand. Saudi Arabia’s minister of energy and industry, Khalid Al-Falih, told conference attendees that cutbacks in capital spending on exploration, forced on the industry by low prices for the past twoyears, could mean that shortfalls in supply are coming.
Exxon Mobil Corp. (NYSE: XOM) CEO Rex Tillerson disagreed:
Top 5 Low Price Stocks To Buy Right Now: Teucrium Corn Fund (CORN)
- [By Casey Wilson]
Investing in commodity-based ETFs (exchange-traded funds) or ETNs (exchange-traded notes) is a great way to gain exposure to a specific commodity, like corn (NYSE Arca: CORN), livestock (NYSE Arca: COW), or grains (NYSE Arca: GRU).
Top 5 Low Price Stocks To Buy Right Now: Orchid Island Capital, Inc.(ORC)
- [By Paul Ausick]
Orchid Island Capital Inc. (NYSE: ORC) fell about 9.7% to post a new 52-week low of $7.85 Thursday after closing at $8.69 on Wednesday. The 52-week high is $12.60. Volume of about 5.2 million was nearly 5 times the daily average of around 1.1 million. The company lowered its monthly dividend by 3 cents last night.
Top 5 Low Price Stocks To Buy Right Now: Canadian Pacific Railway Limited(CP)
- [By Ben Levisohn]
A strange turn of events has sent shares of CSX (CSX)–and other railroads, including Union Pacific (UNP) and Canadian Pacific Railway (CP)–soaring today. It all started when Hunter Harrison announced that he would leave Canadian Pacific ahead of schedule to team up with activist investor for the turnaround of another railway company. That company is thought to be CSX.
- [By Rich Duprey]
Railroad operator CSX may not have risen as sharply as Alcoa over the past few months, but it has also been steadily rising. It got a big boost this month when the CEO of Canadian Pacific Railway (NYSE:CP) Hunter Harrison resigned his position and was said to be teaming up with activist investor Paul Hilal to take on CSX, causing the railroad’s stock to surge 23% on the news.
Top 5 Low Price Stocks To Buy Right Now: WPX Energy, Inc.(WPX)
- [By Money Morning News Team]
WPX Energy Inc. (NYSE: WPX) is a natural gas and oil company based in Oklahoma. WPX focuses on the exploration and development of natural gas and oil fields in North America, including the Permian Basin in Texas and the Williston Basin in North Dakota.
- [By Ezra Schwarzbaum]
Matador has grown its reserves throughout the commodity cycle, as well as its production and cash flow. Haas also likes the company’s history of identifying and acquiring acreage early and cheaply. Much of the analyst’s positive outlook is derived from Matador’s successful monetization of midstream assets and pattern of reinvestment.
WPX Energy Inc (NYSE: WPX), $18 Price Target
Haas praised WPX’s production base, which is “well balanced” between three major basins, and its production mix of 51 percent oil, 13 percent natural gas liquids and 36 percent natural gas.
Top 5 Low Price Stocks To Buy Right Now: Weatherford International plc(WFT)
- [By Ben Levisohn]
Weatherford International (WFT) has climbed 7.8% to $6.35 after announcing a joint venture with Schlumberger (SLB). Schlumberger has declined 0.4% to $76.67.
- [By Jon C. Ogg]
Weatherford International plc (NYSE: WFT) saw a share 18.9% gain to $5.14 on Wednesday, and the 55.9 million shares was right at 2 times normal trading volume. Weatherford has a consensus analyst price target of $7.43 and a 52-week trading range of $3.73 to $11.14. The company has a total market cap of $5 billion.
- [By Craig Jones]
Pete Najarian said that 10,000 contracts of the March 6 calls in Weatherford International Plc (NYSE: WFT) were traded early in the trading session for around $0.35. He has also bought the March 6 calls and he is going to hold them at least for three weeks. Weatherford International Plc spiked 7.21 percent on Tuesday.
- [By Ben Levisohn]
Last night, Weatherford International (WFT) reported a smaller than expected loss and announcing an alliance with Nabors Industries (NBR)–and the news was celebrated by the market.
No wonder: Weatherford reported a loss of 32 cents a share, less than the 34 cent loss analysts had predicted, on sales of $1.41 billion. Weatherford also said that it would team up with Nabors Industries to offer “integrated drilling solutions,” something we can only imagine is a response to consolidation in the oil-services space.
Still, not everyone is thrilled with Weatherford’s numbers. Stephens analyst Matthew Marietta, for instance, claims that his “Underweight thesis [is] intact” despite teh better than expected earnings:
Weatherfordreported $1.41 bil. of 4Q revenue, in line with cons./us. However EBITDA/margin of $67 mil./4.8% were below cons. at $88 mil./6.2% and our $105 mil./7.4% estimates. Despite shutting down its less profitable pressure pumping business for ~1/2 of 4Q, EBITDA/margin underperformance was due to weaker than expected revs/margins in Int’l (excl. MENA/Asia) and Land Drilling, and 8% q/q NAM growth (large cap peers up 9%-15%). Op. EPS was slightly ahead of cons., but benefited from a $27 mil./11% q/q reduction inDepreciation & Amortization and adjustments for $245 mil. (or ~$0.27/sh) of net non-recurring items (>$1.6 bil. total in 2016). Though net debt improved ~$500 mil. q/q, it was largely achieved by diluting shareholders ~9% and ultimately increased total debt to $7.6 bil. We remain UW based on non-recurring charges hitting for 20th straight quarter, ongoing balance sheet concerns/shareholder dilution risk, North America underperformance, and near-term declines across various Int’l markets.
Shares of Weatherford International have jumped 12% to $5.81 at 12:12 p.m. today, while Nabors Industries has fallen 3% to $15.79.
- [By Jim Swanson]
Weatherford International Plc (NYSE: WFT) is forming the OneStim joint venture with Schlumberger Limited. (NYSE: SLB), which would focus on the unconventional completions market in North America. “We view the transaction as a rare win-win situation,” Deutsche Bank’s Mike Urban said in a report.