Latest news with #BigOil
Los Angeles Times
5 days ago
- Business
- Los Angeles Times
Chevron prevails in Exxon fight and closes deal to buy Hess
Chevron Corp. won its arbitration battle with Exxon Mobil Corp. and has closed its $53 billion deal to buy Hess Corp. more than 20 months after the takeover was announced. The decision is a major victory for Chevron, ending a period of strategic limbo that hurt its stock and prompted questions over the quality of the company's due diligence when it agreed to buy Hess in October 2023. Chevron Chief Executive Officer Mike Wirth said he would walk away from the deal if they lost the case. 'This merger of two great American companies brings together the best in the industry,' Wirth said in a statement. Hess shares surged as much as 8.8% before the start of regular trading. Chevron rose 4.1%. The clash between North America's biggest energy producers was unprecedented in the modern history of Big Oil, an industry in which companies routinely partner with each other to minimize project risk and share costs. Exxon, which operates and owns 45% of Guyana's offshore Stabroek Block, claimed it had a right of first refusal over the disposition of Hess's 30% stake. Hess and Chevron, however, argued the right didn't apply because their deal was structured as a corporate merger rather than an asset sale. The uncertainty surrounding the deal has been a 'material contributor' to the underperformance of Chevron's stock price compared to its rivals, Wirth said in November. Acquiring Hess and its stake in Guyana significantly increases the quality of Chevron's oil assets beyond the Permian Basin of Texas and New Mexico, narrowing the gap with Exxon, Hedgeye Risk Management, LLC Managing Director Fernando Valle said. 'Adding Guyana was critical for Chevron, because it's go-forward portfolio was paltry outside of the Permian,' Valle said. Both sides had expressed extreme confidence in their opposing positions on the wording of the Guyana contract, which was written more than 15 years ago. 'We wrote these documents — we understood the intent of those documents,' Exxon Chief Executive Officer Darren Woods said in December. 'That gives us a lot of confidence in the position that we've taken.' Wirth and John Hess consistently backed their legal advice throughout the process. The deal's completion is a win for arbitrage traders who were betting on the spread between Hess's share price and the exchange ratio agreed with Chevron. Hedge funds including Millennium Management, Pentwater Capital Management and HBK Investments LP had staked billions of dollars on the deal closing, according to data compiled by Bloomberg. The deal calls for Hess shareholders will receive 1.0250 Chevron shares for each Hess share. Chevron plans intends to issue about 301 million shares of common stock as part of the transaction. The US Federal Trade Commission on Thursday opened the door for John Hess to join Chevron's board, throwing out an order issued last year that barred him from doing so and accused him of colluding with OPEC. 'Mr. Hess is a highly respected industry leader, and our board would benefit from his global experience, relationships and expertise,' a Chevron spokesman said in a statement. Crowley and Wethe write for Bloomberg.
Newsweek
5 days ago
- Business
- Newsweek
Hawaii State Senator: Did Your Home Insurance Bill Increase? Big Oil Should Pay Up
Imagine getting a letter from your home insurance company explaining that your annual bill was going to be 10 times higher this year, even though you'd never made a claim for damages to your home. Thousands of American homeowners—including many in my home state of Hawaii—don't need to imagine. Last year, insurers in our state drastically raised rates to reflect the increasing threat of extreme weather disasters and to recoup money they had to pay out after the deadly 2023 Maui wildfires. But why should everyday people be asked to shoulder these costs, while an industry that actively made the problem worse pays nothing? Giant fossil fuel corporations predicted decades ago that the unchecked burning of their products could lead to out of control weather disasters, creating chaos in insurance markets. Don't they bear some of the responsibility for making this nightmare a reality? Debris removal at a former apartment building in the Lahaina wildfire impact zone on August 2, 2024, in Lahaina, Hawaii. Debris removal at a former apartment building in the Lahaina wildfire impact zone on August 2, 2024, in Lahaina, shouldn't push the costs of climate change on to their policyholders while letting the companies causing it off the hook. That's why Hawaii is pursuing a fairer model that other states can emulate: make the fossil fuel industry help pick up the tab. Our state recently passed a first of its kind resolution encouraging insurance companies to take Big Oil to court for climate damages before raising rates on their customers. Simply put: fossil fuel-driven climate change is creating a nationwide cost-of-living crisis, especially when it comes to housing. Supercharged wildfires in Los Angeles and Maui and unprecedented flooding in the Carolinas from Hurricane Helene have displaced thousands of Americans. When they do get a check from their insurance company, many find that it only covers a fraction of the cost of rebuilding their homes. Faced with mounting claims, insurance companies are pulling out of entire communities, canceling existing policies, and refusing to issue new policies. Given that insurance is generally required on new mortgages, uninsurable homes are essentially unsellable homes. Mortgage lenders in wildfire-stricken Colorado communities are reporting a rash of home sales falling apart because buyers can't secure insurance. Experts warn that this growing crisis threatens to infect the broader economy. In a recent Senate hearing, Senator Sheldon Whitehouse (D-R.I.) warned of an "economic cascade" of consequences for real estate markets, and cited a Freddie Mac chief economist predicting that if left unchecked, the insurance crisis could cause "a 2008-style economic recession." We're on track for economic disaster, while fossil fuel industry giants who put us in this position keep raking in billions of dollars in profits. Rather than pulling the rug out from under hardworking families and abandoning entire communities, insurance companies should make the fossil fuel industry pay their fair share of the costs. While they may not seem like the most likely group to hold the fossil fuel industry accountable, insurance companies are already well-practiced in taking bad actors to court for their role in extreme weather disasters. When utilities' unmaintained power lines ignited devastating wildfires in California in 2017 and 2018, insurers successfully forced them to pay up, temporarily reducing the severity of rate increases on homeowners and slowing the trend of insurance companies fleeing the state. Just like the companies who sparked a blaze, the fossil fuel industry bears responsibility for contributing to the soaring high temperatures and drier atmosphere that turn a routine forest fire into a blazing inferno. Researchers who measure climate change's contribution to extreme weather disasters estimate that companies like Chevron and ExxonMobil are each responsible for nearly $2 trillion in economic losses from extreme heat between 1991 and 2020. This isn't a surprise to Big Oil—internal documents show their researchers warning as far back as the 1970s that their products would warm the global climate and fuel "potentially catastrophic events." Industry executives were convinced enough to invest in making their own oil wells and pipelines resilient to climate change, while also working for decades to mislead the public about their products' connection to the problem. That deception continues today, with oil and gas majors proudly advertising their commitment to clean energy while they ramp up the production and burning of fossil fuels. Since 2002, climate change has cost the insurance industry an estimated $600 billion in insured losses, costs that were likely recouped from consumers through higher premiums. The oil and gas industry, which has averaged nearly $3 billion in profit per day, could have covered those losses without breaking a sweat. As policymakers nationwide grapple with a growing insurance crisis, our first priority should be to protect consumers from extreme rate hikes and stabilize markets for insurers. When you make a mess, you clean up after yourself. It's time for the fossil fuel industry to do the same. Chris Lee serves as president of the National Caucus of Environmental Legislators, a bi-partisan organization of 1,500 state legislators from all 50 states. He has served in the Hawaii State Legislature since 2008, where he authored the nation's first state laws transitioning utilities to 100 percent renewable energy, directing economy-wide carbon neutrality, and targeting zero-emissions transportation. The views expressed in this article are the writer's own.
Globe and Mail
7 days ago
- Business
- Globe and Mail
The Zacks Analyst Blog Highlights ExxonMobil, Shell and BP
For Immediate Release Chicago, IL – July 16, 2025 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: ExxonMobil XOM, Shell SHEL and BP BP. Here are highlights from Tuesday's Analyst Blog: Big Oil's Q2 Outlook: Downstream Gains, Upstream Pains The upcoming earnings reports for big oil and energy companies will tell a story of two different worlds. On the one hand, we will likely see lower profits from simply drilling for oil and gas (or the 'upstream' side of the business). On the other hand, businesses that refine crude oil into products like gasoline and make chemicals (known as 'downstream') might show surprising strength. Major players like ExxonMobil, Shell and BP have already given us hints. They are seeing profits squeezed from falling oil and gas prices. So, as these companies share their results in the coming weeks, everyone will be watching their ability to control costs, how well their refineries performed, and if demand for energy is truly recovering. ExxonMobil: Leaning on Refineries to Counter Lower Prices ExxonMobil, the world's largest integrated energy company, expects its second-quarter earnings to take a hit because of lower oil and gas prices. The American supermajor recently warned that its upstream earnings could fall by as much as $1.9 billion from the first-quarter level. This big drop is mostly due to oil prices bringing in $1.2 billion less, and natural gas prices adding up to a $700 million hit. Data from the U.S. Energy Information Administration ("EIA") confirms this trend: WTI crude oil averaged just $63.54 in April and $68.17 in June, down from $75.74 in January. But it's not all bad news for ExxonMobil. It might actually see a modest boost from its refining and chemical businesses, with refining profits potentially adding between $100 million and $500 million. However, planned maintenance work and other timing issues could lessen those gains. With the Zacks Consensus Estimate for ExxonMobil's EPS down nearly 33% from last year to $1.44, the pressure is squarely on its non-drilling segments to stabilize the overall results. BP: Production Up, But Prices Down London-based BP is heading into its second-quarter earnings with a mixed bag of expectations. On the bright side, the Zacks Rank #3 (Hold) company expects to pump out more oil and gas than initially predicted, and even more than it did in the first quarter. This boost is largely thanks to higher output from their U.S. shale operations. However, BP has also warned that lower crude oil prices will hit its drilling profits hard, by about $800 million. Weaker natural gas prices are also expected to weigh on earnings, though to a lesser extent. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Where BP might really shine is in its refining business. It anticipates refining profits jumping from $15.20 per barrel in the first quarter to $21.10 in the second. This could potentially boost its "customers and products" segment by $300 million to $500 million. Plus, BP expects its total debt to dip below the first-quarter level of $27 billion, indicating sound financial management. With the consensus EPS mark at 60 cents (down 40% from last year), any gains from refining will be vital in cushioning the blow from weaker oil and gas prices. Shell: Navigating Headwinds With Refining Strength Europe's largest oil company, Shell, is also facing a challenging quarter, with several parts of its business dealing with headwinds. The company expects second-quarter average production for its Integrated Gas division to be 900,000–940,000 barrels of oil equivalent per day compared with 927,000 achieved in the January-March period. LNG output is now expected to be between 6.4 million and 6.8 million tons, and gas trading results are likely to be weaker than in the first quarter. On the traditional drilling side, production is expected to decline to 1.66 million–1.76 million barrels of oil equivalent per day, due to both scheduled maintenance and the sale of its Nigerian SPDC assets. Still, Shell's refining margins look strong, rising from $6.20 per barrel in the first quarter to $8.90 per barrel in the second. This is supported by better utilization of its refineries. However, the company's chemicals business is expected to report a loss due to unplanned shutdowns at its Monaca plant. Shell's renewables and energy solutions segment's bottom line will likely be between $400 million loss and $200 million profit. The Zacks Consensus Estimate for Shell's EPS is pegged at $1.44, down 27% from last year, as the company relies on its marketing and refining arms to offset broader weak The Outlook: Silver Linings for Energy Investors As is evident, the refining side of the energy business is showing remarkable strength. Companies like ExxonMobil, BP and Shell are seeing much better profits from turning crude oil into fuels and other products. That's why, despite the pressure on oil and gas drilling operations due to lower prices, the second-quarter outlook for energy investors isn't entirely gloomy. Looking ahead, global demand for oil remains steady, with summer travel and increased electricity use driving higher consumption. Demand for natural gas in the United States is also growing stronger, thanks to mid-summer heat and improving flows of LNG exports. As companies maintain discipline in their supply and excess inventories slowly return to normal levels, the stage could be set for firmer prices in the second half of 2025. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. 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The Hill
15-07-2025
- Politics
- The Hill
Big Oil has been lying to us for decades: Don't let it off the hook
Summer only just began last month, yet 96 percent of the U.S. population has already faced at least one extreme weather alert this 'danger season' — the warm months when climate-driven weather extremes in the U.S. tend to concentrate and do greatest harm. Simultaneously, during last month's Senate Judiciary Committee hearing, Kansas Attorney General Kris Kobach urged Congress to rewrite the Clean Air Act to block states from regulating fossil fuel emissions. Kobach also joined a group of 16 state attorneys general on a letter to U.S. Attorney General Pam Bondi asking the Department of Justice to create a 'liability shield' exempting fossil fuel companies from being held accountable for their deliberate climate deception and the worsening climate crisis. All signees are members of the Republican Attorneys General Association, to which the American Petroleum Institute is a top 10 donor. These blatant attempts to grant polluters nationwide immunity show just how far some officials will go to deny communities their day in court. In recent years, dozens of climate cases have been filed in the U.S., as litigation has become an increasingly important pathway for holding the fossil fuel industry accountable. As climate accountability campaign director at the Union of Concerned Scientists, I have spent years documenting Big Oil's ' Decades of Deceit,' which is the title of our May report. Currently, one in four people in the U.S. resides in a city, state or Tribal Nation suing fossil fuel companies for climate deceit, disinformation or damages. These cases threaten the fossil fuel industry's business model, and Big Oil knows it. That's why they are seeking to undercut the judicial system and evade legal responsibility. This isn't the first time fossil fuel companies and their allies have sought legal immunity, but the stakes are higher than ever, given their undue influence within Congress and the White House, as well as the number of active climate accountability lawsuits across the country. President Trump's recent executive order attacking states' power to protect their residents from the climate crisis is a troubling development, as are Justice Department lawsuits preemptively seeking to block climate litigation or roll back four states' Superfund-style laws. Our Decades of Deceit report underscores why fossil fuel companies fear legal accountability and have used procedural tactics to delay these lawsuits for years. The report paints a damning portrait of corporate malfeasance and emphasizes the need for Congress and the Trump administration to preserve state-level policymaking and protect access to justice through state courts for those harmed by fossil fuel industry misconduct. Dozens of lawsuits cite our organization's analyses in arguing to hold companies like ExxonMobil, Shell, BP and Chevron accountable for climate disinformation and ensuing damages. Underpinning these cases is robust evidence highlighted in our report, which reveals the extent to which major fossil fuel companies have misled people and sowed doubt about relevant science to delay climate action while continuing to profit at the public's expense. By the early 1980s, these companies understood climate change impacts could be catastrophic. They knew to a high degree of accuracy the danger their products posed to people and the planet. For example, a confidential 1988 Shell report warned that 'By the time the global warming becomes detectable it could be too late to take effective countermeasures to reduce the effects or even to stabilize the situation.' Instead of changing course, these companies planned, funded and continued to engage in deliberate disinformation campaigns. In 2021, former ExxonMobil Senior Director of Government Affairs Keith McCoy admitted the company used front groups to 'aggressively fight' against climate science. Now, as people and communities seek accountability, the industry is pleading for an escape hatch. Big Oil doesn't want this damning evidence to be presented in court. That's why it is seeking help from several states' highest law enforcement officials, who are attempting to create an extrajudicial avenue for their allies while sacrificing their own constituents' ability to access justice. As our work illustrates, these companies cannot be trusted to do the right thing. Just as the U.S. needs laws to protect public health, it needs to be able to enforce laws when corporations knowingly cause harm. Given dangerous backtracking by the Trump administration and delayed, insufficient climate action by Congress, the courts are an increasingly important avenue for communities seeking redress for damages caused by climate disinformation. Our elected representatives must stand strong against liability waivers and preserve the rights of states and communities to make polluters pay.
Yahoo
14-07-2025
- Business
- Yahoo
1 Surging Stock to Keep an Eye On and 2 to Turn Down
The stocks featured in this article are seeing some big returns. Over the past month, they've outpaced the market due to new product launches, positive news, or even a dedicated social media following. While momentum can be a leading indicator, it has burned many investors as it doesn't always correlate with long-term success. All that said, here is one stock with the fundamentals to back up its performance and two best left ignored. One-Month Return: +22.6% Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE:EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men's grooming. Why Do We Steer Clear of EL? Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion Operating margin declined by 12.1 percentage points over the last year as its sales cratered Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable Estée Lauder's stock price of $91.47 implies a valuation ratio of 41.8x forward P/E. If you're considering EL for your portfolio, see our FREE research report to learn more. One-Month Return: +19.9% With its name deriving from a combination of 'generating' and 'AC', Generac (NYSE:GNRC) offers generators and other power products for residential, industrial, and commercial use. Why Are We Out on GNRC? Flat sales over the last two years suggest it must find different ways to grow during this cycle Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.1 percentage points Eroding returns on capital suggest its historical profit centers are aging At $151.47 per share, Generac trades at 18.5x forward P/E. To fully understand why you should be careful with GNRC, check out our full research report (it's free). One-Month Return: +17.1% Founded during the emergence of Big Oil in Texas, DXP (NASDAQ:DXPE) provides pumps, valves, and other industrial components. Why Are We Positive On DXPE? Operating margin improvement of 5.6 percentage points over the last five years demonstrates its ability to scale efficiently Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue Rising returns on capital show management is finding more attractive investment opportunities DXP is trading at $91.46 per share, or 16.6x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
