Latest news with #energyindustry
Yahoo
3 days ago
- Business
- Yahoo
Zacks Industry Outlook Highlights Exxon Mobil, Chevron and Shell
For Immediate Release Chicago, IL – July 25, 2025 – Today, Zacks Equity Research discusses Exxon Mobil Corp. XOM, Chevron Corp. CVX and Shell plc SHEL. Industry: Integrated Energy Link: The crude oil pricing environment is expected to experience significant volatility this year, which will negatively impact the exploration and production activities of integrated energy companies. A deceleration in oil production growth can create challenges, thereby constraining earnings from upstream operations. At the same time, the accelerating shift toward renewable energy is introducing greater uncertainty to the Zacks Oil and Gas Integrated International industry's prospects. This combination of factors suggests a challenging and softened industry environment that is expected to persist through at least the remainder of 2025. Among the companies in the industry that will probably survive the business challenges are Exxon Mobil Corp., Chevron Corp. and Shell plc. About the Industry The Zacks Oil and Gas Integrated International industry covers companies primarily involved in upstream, midstream and downstream operations. These companies have upstream businesses in the United States (including prolific shale plays and the deepwater Gulf of Mexico), Asia, South America, Africa, Australia and Europe. Midstream operations of energy companies entail transporting oil, natural gas liquids and refined petroleum products. In downstream businesses, the firms buy raw crude to produce refined petroleum products. The companies' downstream activities involve chemical businesses that manufacture raw materials for making plastics. The integrated players are now gradually focusing on renewables, leading to the energy transition. The firms aim to lower emissions from operations and cut the carbon intensity of the products sold. 3 Trends Shaping the Future of the Industry The integrated energy sector is currently navigating a highly uncertain and challenging macroeconomic environment. Refining, renewable energy and chemical segments are particularly under pressure due to limited visibility into future market dynamics. Escalating trade tensions are compounding this uncertainty, raising concerns over potential economic slowdowns. Meanwhile, oil prices remain volatile, swayed by geopolitical risks and fluctuating OPEC+ production strategies. As a result, major integrated energy players are grappling with profitability challenges. There has been a slowdown in oil production growth in the upstream businesses of integrated energy companies in the United States due to shareholder demands for a greater focus on returning capital rather than investing in production expansion. As production growth slows, output decreases, which can lead to reduced revenues. Since upstream operations depend heavily on volume to generate income, any stagnation in production growth has a direct and negative impact on their bottom line. Governments, investors and stakeholders are placing growing emphasis on addressing climate change, leading to an increased demand for renewable energy. Consequently, the demand for products reliant on oil, natural gas and natural gas liquids is expected to decline, with solar and wind energy gaining prominence in the energy landscape. The integrated energy firms are adversely impacted by these trends as they are primarily engaged in the production and transportation of fossil fuels, such as oil, and the sale of refined petroleum products. Zacks Industry Rank Indicates Bearish Outlook The Zacks Oil and Gas Integrated International industry is part of the broader Zacks Oil - Energy sector. It carries a Zacks Industry Rank #189, which places it in the bottom 23% of the 245 Zacks industries. The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Before we present a few stocks that you may want to consider, let us take a look at the industry's recent stock market performance and valuation picture. Industry Lags S&P 500 & Sector The Zacks Oil and Gas Integrated International industry has underperformed the broader Zacks Oil - Energy sector and the Zacks S&P 500 composite over the past year. The industry has plunged 5.4% over this period compared with the S&P 500's growth of 17.3% and the broader sector's decline of 2.6%. Industry's Current Valuation Since oil and gas companies are debt-laden, it makes sense to value them based on the Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA) ratio. This is because the valuation metric takes not just equity into account but also the level of debt. On the basis of the trailing 12-month EV/EBITDA, the industry is currently trading at 4.27X, lower than the S&P 500's 17.85X. It is also below the sector's trailing 12-month EV/EBITDA of 4.77X. Over the past five years, the industry has traded as high as 6.54X and as low as 2.75X, with a median of 4.11X. 3 Integrated International Stocks to Watch Chevron: The company completed its $53-billion acquisition of Hess Corporation, thereby strengthening its upstream portfolio and obtaining a 30% interest in the highly valued Stabroek Block offshore Guyana. Chevron gains strategic access to one of the most prolific deepwater discoveries of the past decade, estimated to hold more than 11 billion barrels of recoverable oil. The acquisition also strengthens its position in the U.S. Bakken shale, the Gulf of Mexico and Southeast Asia. It currently carries a Zacks Rank #3 (Hold). The move comes as a turning point for Chevron as it is facing mounting pressure to replenish its reserves and strengthen free cash flow amid ongoing volatility in the oil markets. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. ExxonMobil: The company's acquisition of Pioneer Natural Resources expanded its production capabilities in the Permian Basin, one of the most profitable regions in the United States due to its inexpensive production costs. XOM boasts a strong portfolio of upstream assets, focused on oil-rich resources in the Permian Basin and offshore Guyana. Production costs in those assets are low. Therefore, the leading integrated energy major can overcome a collapse in oil and gas prices. Similar to its operations in the Permian, ExxonMobil boasts a robust project pipeline in offshore Guyana resources. It presently carries a Zacks Rank #3. Shell: The company's acquisition of Pavilion Energy strengthens its LNG trading capabilities and positions itself for long-term growth in cleaner fuels. Shell's position as a major supplier of LNG should help the company meet the fuel's growing demand and improve its cash flow. Shell, with a Zacks Rank of 3, is targeting a 4-5% annual increase in LNG sales over the next five years and 1% annual production growth. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> 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. 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 Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
3 days ago
- Business
- Daily Mail
BP's scramble to rally big investors behind new chief
Amanda Blanc embarked on an intense charm offensive among top BP shareholders last week to convince them that the choice of low-profile building materials executive Albert Manifold as chairman made sense. There had been an expectation in the City that a thorough recruitment process – conducted by the no-nonsense Aviva chief executive – who is BP's senior independent director and who led the search – might yield a more prominent chairman with wider knowledge of the energy industry. BP was stung by early criticism of Manifold by City brokers Panmure Gordon, who accused the oil giant's board of a 'panic appointment'. The energy giant also found it necessary to repudiate derogatory comments made by an unnamed 'bitter and twisted' losing candidate for the post. Working from Aviva's Canadian headquarters in the last few days, Blanc spoke to all of BP's leading UK and American investors and has seemingly managed to turn the tide of opinion. Most now are reportedly positive about the BP board's final choice. But there was some disappointment at the oil giant's headquarters about the lack of a rise in the share price following the announcement, as well as at some of the negative briefing in the Square Mile. Blanc is said to have convinced leading investors that the naysayers who challenged the choice of Manifold 'lacked credibility'. In selling the selection to the City, BP and its advisers have pointed to Manifold's stellar, under-the-radar performance at CRH, where he drove the value of the group's shares up 342 per cent during a ten-year tenure. The share price performance of CRH, which moved its listing to New York two years ago, is described by BP insiders as 'magnificent'. Blanc is also understood to have pointed to Manifold's considerable experience in making deals, and his knowledge of a building materials industry that has come under close scrutiny from regulators. Despite claims about the new chairman's modest Irish-based lifestyle, it has been noted that he became one of the best rewarded executives in the British Isles, amassing some £54 million of stock options between 2020 and 2024. But while Manifold has a reputation for successfully managing bids and deals, chairing the oil giant is regarded very differently. Being BP chairman requires great diplomatic skills given that its operations include sensitive territories such as Iraq. He will also have to contend with the battle being waged by chief executive Murray Auchincloss to refocus the company on oil production after a disastrous effort under his predecessor Bernard Looney to transmogrify the company into a green energy pioneer. Nevertheless, BP insists that the job of chairman is to lead the board and hold the management to account. 'It is not to be the deep technical expert,' one person involved in the search noted. Being an industry expert is also no guarantee of success. Manifold's predecessor, Helge Lund, a Norwegian veteran of the oil sector, quit due to mounting investor pressure and criticism of his performance in the role. An adviser to BP's rival Shell expressed surprise that the selection panel overlooked its newest non-executive director, Simon Henry, who was appointed to the board earlier this month. Henry is a former finance director of Shell and has been influential on the board of mining giant Rio Tinto. BP's response is to argue that in bringing both Henry and Manifold aboard, the group 'had the best of both worlds'. Manifold's first task will be to keep notorious activist investor Elliott Investment Management onside. It welcomed his appointment and wanted to see him 'urgently' address the company's 'shortcomings'. But other leading American holders of BP shares have recognised that turning the tanker around will take time, and believe that the newish team deserve at least eight quarters, or two years, of grace to show that things are on the mend. The big question is whether Manifold will be able to withstand the pressure on BP to cut back spending on new oil and gas facilities while providing better returns to shareholders. He has experience in this area, having previously faced down activists at CRH. There has been some concern about the length of the process to appoint the chairman. Blanc insisted on a thorough process using head-hunters, a long-list and short-list, and bringing the board along with her. But the drawn-out procedure allowed speculation to build of a takeover approach by Shell. Fortunately for BP's top team, Shell denied any early-stage talks and took itself out of the picture for at least six months. Outside observers were not the only ones surprised by the choice of Manifold, with many BP insiders having no knowledge of his background. In a bid to bolster his credentials, he has in the past few days made a point of touring the oil giant's offices in St James's Square in central London and holding a series of one-to-one meetings with executives and colleagues. But only time will tell if the former building materials boss can cement his legacy at BP.
Bloomberg
6 days ago
- Business
- Bloomberg
BP Plans to Exit $36 Billion Australian Green Hydrogen Project
BP Plc will exit its role in a massive green hydrogen production facility planned in Australia as the British oil major refocuses on the fossil fuels that drive its profits. The company told its partners in the Australian Renewable Energy Hub that it plans to leave the project as both operator and equity holder, according to a statement from a BP spokesperson. It's the latest setback for green hydrogen, a fuel once touted as a key way for Big Oil to profit from the energy transition but that has so far proved too costly for mass production and consumption.
Bloomberg
6 days ago
- Business
- Bloomberg
Patria, Eaton Vance Among Investors in Argentina Pipeline Loan
Asset managers Patria Investments Ltd. and Eaton Vance joined a group of about a dozen banks in financing a $3 billion oil pipeline project which is seen as pivotal for Argentina's energy industry, people familiar with the matter said. The syndicated loan agreement, signed almost two weeks ago, is the largest commercial facility for an infrastructure project in the history of the South American nation, according to a press release for the project titled Vaca Muerta Oil Sur, or VMOS. A list of 14 institutions, including international lenders like Citi, Deutsche Bank, Itaú, JP Morgan, and Santander, provided a total of $2 billion in financing.
Yahoo
21-07-2025
- Business
- Yahoo
What's in the EU's 18th sanctions package against Russia?
By Kate Abnett and Enes Tunagur BRUSSELS, LONDON (Reuters) -Here are the details of the European Union's 18th package of sanctions against Russia over its war in Ukraine, approved on Friday and aimed at dealing further blows to Russia's oil and energy industry. OIL PRICE CAP Central to the package is a lower price cap on Russian oil - a move designed to shrink Moscow's energy revenues without disrupting global markets by severing Russian supply entirely. The EU will impose a moving price cap on Russian crude at 15% below its average market price, EU diplomats said. That means a cap of roughly $47.60 per barrel at present, well below the $60 maximum that the Group of Seven major economies have tried to impose since December 2022. The new price cap will come into force on September 3 and a 90-day transition period will apply to existing contracts, the EU said in a press release. The measure aims to ban trade in Russian crude bought at a higher price by prohibiting shipping, insurance and reinsurance companies from handling tankers carrying such crude. The European Union and Britain have been pushing the G7 to lower the cap since a fall in oil futures made the $60 cap largely irrelevant. However, the United States has resisted, leaving the EU to move forward on its own, with limited power to enforce the measure because oil is largely traded in dollars, for which payment clearing is controlled by U.S. banks. SHADOW FLEET AND ENERGY TRADE The EU will no longer import any petroleum products made from Russian crude after a transitional period of six months, although the ban will not apply to imports from Norway, Britain, the U.S., Canada and Switzerland, EU diplomats said. The EU sanctions also targeted India's Nayara oil refinery with Russia's largest oil producer Rosneft as its main shareholder. The EU also agreed to end the Czech Republic's exemption from the bloc's existing ban on seaborne Russian crude oil imports, after the country fully switched to non-Russian supplies this year. An additional 105 vessels are banned from accessing EU ports and locks, or undertaking ship-to-ship transfers of oil - an effort to shut down the so-called "shadow fleet" of older oil tankers used to transport Russian oil and circumvent sanctions. The EU also put sanctions on a private operator of an international flag registry, and an entity in the Russian LNG sector, the Council of the EU said in a press release, without naming them. In total, the EU has now imposed sanctions on more than 400 shadow fleet ships. NORD STREAM Transactions related to Russia's Nord Stream gas pipelines under the Baltic Sea will be banned, including any provision of goods or services to these projects. FINANCIAL SECTOR The EU will ban all transactions with Russian financial institutions - already excluded from the global financial messaging system SWIFT. The ban will include transactions with Russia's sovereign wealth fund - the Russian Direct Investment Fund (RDIF) - as well as its investments. This aims to further restrict Russia's access to international financial markets and foreign currency. EU countries also agreed to lower the threshold for imposing further sanctions on foreign financial and credit institutions that undermine the sanctions or support Russia's war effort. EXPORT BANS, NEW BLACKLIST ENTRIES The EU will blacklist 26 new entities for circumventing sanctions, including seven in China, three in Hong Kong and four in Turkey, diplomats said. Certain chemicals, plastics and machinery have been added to the list of goods EU countries cannot export to Russia. DELAYED APPROVAL The package of sanctions on Russia is the EU's 18th since Moscow's full-scale invasion of Ukraine in 2022. Approval was held up for weeks by Slovakia and Malta. Slovakia had demanded guarantees against potential losses from a separate EU plan to ban imports of Russian gas by 2028, and dropped its veto after the EU offered Slovakia some guarantees earlier this week. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
