Latest news with #oilstocks
Yahoo
15 hours ago
- Business
- Yahoo
OPEC expects higher demand for crude oil in coming year
The Organization of the Petroleum Exporting Countries (OPEC) is expecting more growth in global demand for crude oil due to a stronger world economy. In its monthly report, the Vienna-based group on Tuesday forecast demand will grow by 1.4 million barrels per day in the coming year, up from the previous estimate of 1.3 million. OPEC also assumes that global oil stocks will shrink significantly next year, by almost 1.2 million barrels per day. However, this is only to be expected if the organization and its allies do not return to previous production levels. The OPEC+ alliance, which includes other important producer states such as Russia, is at the end of a change of course in its production policy, reversing a limit on production. The group decided to increase production again from September by an average of 547,000 barrels per day.
Bloomberg
3 days ago
- Business
- Bloomberg
Hedge Funds Flip on Green Energy and Start Betting Against Oil
Portfolio managers have been reversing strategies that have dominated over the past four years. Hedge funds are betting against oil stocks and winding back shorts on solar in a reversal of positions that dominated their energy strategies over the past four years. Since the beginning of October and through the second quarter, equity-focused hedge funds have — on average — been mostly short oil stocks, according to a Bloomberg Green analysis of positions on companies in global indexes for sectors spanning oil, wind, solar and electric vehicles. That's a reversal of bets that had dominated since 2021, according to the data, which are based on fund disclosures to Hazeltree, an alternative-investment data specialist.
Globe and Mail
29-06-2025
- Business
- Globe and Mail
Prediction: These 3 High-Yield Oil Companies Just Secretly Moved to Secure Their Dividends
It's no secret that the market has lost interest in oil stocks over the past year. Indeed, all three stocks covered here -- namely, Devon Energy (NYSE: DVN), Diamondback Energy (NASDAQ: FANG), and Vitesse Energy (NYSE: VTS) -- have declined over the last year. As such, they now trade with excellent dividend yields or attractive price-to-free cash flow (FCF) multiples. Moreover, I think there's a strong possibility that all three companies have recently moved to reduce risk and secure their dividends. Here's why. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » The oil price environment in the first half Israel's attack on Iran sent the price of oil spiking higher, as investors priced in the risk of ongoing instability in a critically crucial oil-producing region. However, before going into how oil companies responded to this, it's worth putting the move into context. The spike occurred after a few months of oil trading in the low-to-mid-$60 per-barrel range. In addition, sentiment toward oil turned negative following a slower economic growth outlook (due to tariff escalations and ongoing geopolitical tensions) and OPEC's decision to increase production. WTI Crude Oil Spot Price data by YCharts There's little doubt that sentiment turned negative after events in the spring. For example, Vitesse implemented a 32% cut in its planned capital expenditures and deferred completion of a couple of wells "in response to current commodity price volatility to preserve returns and maintain financial flexibility." Diamondback cut its planned 2025 capital expenditures to $3.4 billion to $3.8 billion from a previous range of $3.8 billion to $4.2 billion. While Devon didn't make any adjustments in connection with the commodity price environment, management noted, "With the ongoing market and price volatility, Devon will continue to monitor the macro environment and has significant flexibility to adjust its activity and capital programs" on its earnings release in early May. What happened after the recent oil price spike According to numerous reports, the attack on Iran on June 13 triggered a record amount of hedging volumes through Aegis Hedging Solutions. This company assists commodity companies with their hedging strategies. While some of it was possibly oil companies looking to get exposure to potentially higher prices, the likelihood is that it was independent oil companies taking advantage of the spike to hedge their near-term production. As we've already seen, all three companies have either cut their capital spending plans or are monitoring events with the option to do so. In addition, they all utilize hedging as an integral part of their capital allocation strategy, ensuring returns to investors through dividends and share buybacks. Hedging strategies and dividends While we won't know for sure until they release their second-quarter earnings, all three are strong candidates to have taken part in the rush to hedge their oil production. Hedging is an integral part of Vitesse's strategy, which enables it to maintain its $2.25-per-share dividend (current yield: 10%). As of the end of March, Vitesse had 61% of its remaining oil production hedged at an average price of $70.75 per barrel. Look for that figure to increase, or at least an increase in 2026 production volumes hedged. Diamondback is a conservatively run oil company that uses hedging to ensure its base dividend of $4 per share (currently equivalent to a yield of 2.9%). As of May, it had downside protection in place to $55 a barrel. In other words, at any price of oil above $55, Diamondback has upside exposure to the price of oil. The strategy is to enable cash flow to return to investors through a variable dividend or share buybacks, in addition to the base dividend. Again, look for Diamondback to have increased hedging activity in the quarter. As of the first quarter, Devon Energy had more than 25% of its expected 2025 oil production hedged. With that hedging in place, management estimates it will generate $1.9 billion in FCF at a price of oil of $50 per barrel, $2.6 billion at $60 per barrel, and $3.3 billion at $70 per barrel. These figures easily cover its fixed dividend of $0.96 per share (about $650 million in cash). With increased hedging in place, the fixed dividend (currently yielding almost 3%) will be even more secure. Stocks to buy for investors looking for passive income In particular, Diamondback's and Devon's dividends look very secure, and both have the potential to increase their discretionary dividends, make more share buybacks, or pay down debt. If I'm right, and they, and Vitesse, took advantage of the oil price spike, then passive income investors can sleep even sounder in the knowledge that their dividend income is safe. Should you invest $1,000 in Devon Energy right now? Before you buy stock in Devon Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Devon Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor 's total average return is1,062% — a market-crushing outperformance compared to177%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025
Globe and Mail
18-06-2025
- Business
- Globe and Mail
3 High-Yield Dividend Stocks to Buy for the Second Half of 2025
If you've been investing for a while, chances are you've read about maintaining a balanced portfolio. But sometimes it's hard to know the benefits of diversification unless you've experienced them first-hand. Earlier this year, many growth stocks tanked while value stocks, from Berkshire Hathaway to Coca-Cola, soared as investors flocked to companies that can be counted on no matter what the economy is doing. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » On Friday, the broader indexes fell due to flaring tensions in the Middle East. But oil prices surged, and in turn, so did the stock prices of many defense contractors and oil and gas companies. While trading in and out of stocks based on near-term factors is never a good idea, it could be wise to include top oil stocks in a balanced portfolio, especially for generating passive income, as many oil stocks sport high yields. Here's why ExxonMobil (NYSE: XOM), ConocoPhillips (NYSE: COP), and Kinder Morgan (NYSE: KMI) stand out as top energy stocks to buy in the second half of 2025. ExxonMobil is operating with a long-term mindset Even after shooting up 7.7% last week, there are plenty of reasons why ExxonMobil remains one of the best overall buys in the oil patch. ExxonMobil continues to reduce its production and operating costs by investing in high-quality plays, or what it calls "advantaged assets." These assets are in regions where ExxonMobil has competitive advantages or where there are factors that make it easier to produce oil and gas at scale. For example, one of the advantaged assets is the Permian Basin, the largest onshore oil play in the U.S. ExxonMobil was already established in the region, but it drastically expanded its position when it bought Pioneer Natural Resources in 2024. The Permian has plenty of existing infrastructure, access to resources like water, labor, and other factors that make it fairly easy to grow production as long as oil and gas prices cooperate. Another advantaged asset is Guyana. Unlike the Permian, Guyana is an offshore play, where longer-term projects and years of investment are resulting in low-cost oil production. Projects like these are why ExxonMobil believes it can reduce its breakeven operating figure to $35 per barrel of Brent crude oil by 2027 and $30 per barrel by 2030. Brent crude oil prices jumped over 7% on Friday to around $74 per barrel -- giving ExxonMobil a large margin for error to turn a profit even when prices aren't as high. ExxonMobil also has a massive refining and marketing business and is ramping up its spending on low-carbon investments, like carbon capture and storage. These investments could help ExxonMobil diversify its revenue stream and tap into industries that could offer better long-term growth than oil and gas as countries and companies pursue environmental targets. Throw in 42 consecutive years of dividend raises, a 3.5% dividend yield, and a mere 14.9 price-to-earnings (P/E) ratio, and it's easy to see why ExxonMobil is a balanced energy stock to buy in the second half of 2025. A coiled spring for higher oil and gas prices ConocoPhillips is one of the largest U.S. exploration and production (E&P) companies, meaning it doesn't have a big downstream or chemical product solutions business. Like ExxonMobil, ConocoPhillips has been on a merger and acquisition spree in recent years, buying E&P Concho Resources in January 2021 at a dirt cheap price during the pandemic-induced industry downturn and then more recently buying E&P Marathon Oil in November 2024. ConocoPhillips is now a much bigger company than a few years ago, but it has stayed true to its culture of keeping a watchful eye on costs, a strong balance sheet, and betting big on its best ideas. In its latest quarter, ConocoPhillips produced 2.389 million barrels of oil equivalent per day (boe/d), 1.462 million of which was in the Lower 48 (U.S. excluding Alaska and Hawaii). The majority of the company's Lower 48 production is in the Permian, with 816,000 boe/d for the quarter. ConocoPhillips is the third-largest U.S. producer behind only ExxonMobil and Chevron. Despite a diverse production portfolio, ConocoPhillips still generates extremely impressive margins. In its first quarter, the company realized a $53.34 barrel of oil equivalent price. And yet, it still generated gobs of free cash flow and earnings, with $2.09 in adjusted earnings per share and $5.5 billion in cash from operations. ConocoPhillips is generating plenty of earnings and cash flow to pay its $0.78-per-share ordinary dividend, or $3.12 yearly, which amounts to a 3.2% yield. In fact, ConocoPhillips is so profitable that it can afford to repurchase stock at a breakneck pace. Stock buybacks are a core part of the company's capital return strategy. Within three years, ConocoPhillips plans to offset nearly the equivalent shares it issued for the all-stock acquisition of Marathon Oil. For several quarters now, ConocoPhillips has spent more on buybacks than on dividends, which again it can afford to do because of its cash flow. ConocoPhillips is a very well-run E&P that is doing a great job managing its large business without taking too many risks and jeopardizing its financial health. It is arguably the best E&P for investors to buy and hold over the long term while still collecting a steady stream of passive income. Kinder Morgan wins from increased energy consumption Kinder Morgan doesn't produce oil and gas or refine it. Instead, it operates in the midstream part of the oil and gas value chain with pipelines and energy infrastructure assets like storage facilities, gas processing plants, terminals, and more recently renewable natural gas (RNG) production facilities. RNG is made from wastewater, dairy manure, food waste, or landfill gas rather than natural gas extracted from the ground. For years, Kinder Morgan was a consistently disappointing stock. It slashed its dividend by 75% in December 2015 due to the oil and gas downturn. It gradually built the dividend back up, paid down debt, and improved its free cash flow. But the company struggled to justify spending on new capital-intensive energy infrastructure projects because domestic natural gas consumption isn't expected to grow much over the long term. A few factors have changed Kinder Morgan's investment thesis, making it much more enticing for the company to invest capital in new projects. The first is the opportunity to export natural gas overseas by cooling and condensing it into a liquid -- known as liquefied natural gas (LNG). Russia's invasion of Ukraine accelerated European interest in LNG, and energy-dependent countries like Japan, South Korea, and China are big buyers of LNG. The second factor is the opportunity to invest in energy infrastructure assets for low-carbon fuels, such as RNG and hydrogen. The third factor is the anticipated need for more power due to artificial intelligence workflows. Kinder Morgan has several medium-term expansion projects to support the growing demand for natural gas. Kinder Morgan has a clear runway for growing its FCF, and in turn its dividend, which currently yields 4.2%. Three ways to power your passive income stream ExxonMobil, ConocoPhillips, and Kinder Morgan offer three different ways to boost passive income by investing in the energy sector. ExxonMobil is a reliable dividend stock with an impeccable track record for boosting its payout. ConocoPhillips has the most upside potential from higher oil prices, but it also has a highly efficient asset base that can generate stable FCF even at weaker oil prices. Kinder Morgan is a good bet if you believe natural gas will continue playing an important role in the energy mix. Add it all up, and ExxonMobil, ConocoPhillips, and Kinder Morgan are three great buys for the second half of 2025 to boost your passive income stream. Should you invest $1,000 in ExxonMobil right now? Before you buy stock in ExxonMobil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ExxonMobil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor 's total average return is791% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Chevron, and Kinder Morgan. The Motley Fool has a disclosure policy.
News.com.au
12-06-2025
- Business
- News.com.au
Lunch Wrap: ASX rides oil surge, but Cettire sinks 30pc as luxury demand tanks
ASX holds gains as oil stocks fire up Cettire crashes 26% as luxury demand tanks Monash IVF climbs after CEO steps down The ASX 200 opened higher this morning and by lunchtime AEST it was still clinging onto a 0.20% gain. But while the rest of the market was lethargic, energy stocks were wide awake and charging this morning. Oil jumped over 4% overnight, driven by shrinking US stockpiles and fresh Middle East tension bubbling back to the surface. The US is apparently pulling embassy staff as Iran threatens to hit US bases in the region if nuclear negotiations fall through. The news has lit a fire under the local names this morning, with Woodside Energy Group (ASX:WDS) jumping over 2% and Santos (ASX:STO) tacking on 1.5%. Meanwhile, Trump said last night the US and China had struck a deal, with China expected to send over rare earths and magnets, and in return, the US will let Chinese students back into unis. But markets weren't exactly reassured. 'The uncertainty doesn't help,' said Nick Twidale at AT Global Markets Australia. 'And his overall comments overnight have led to more uncertainty for the market rather than the clarity we were hoping for.' Back home, this is where things stood at about 12:40pm AEST: In the large caps space, Cochlear (ASX:COH) was up 1.5% despite downgrading earnings guidance. It's now expecting between $390m and $400m, down from its earlier forecast, citing softer growth in developed markets. Implants, however, are still tipped to grow 10% this year. AGL Energy (ASX:AGL) dipped 1.5% after confirming it's having an early poke around what to do with its 20% stake in Tilt Renewables. Just 'preliminary investigations", said the company. ASX SMALL CAP WINNERS Here are the best performing ASX small cap stocks for June 12 : Security Description Last % Volume MktCap ADD Adavale Resource Ltd 0.002 50% 1,261,565 $2,287,279 SFG Seafarms Group Ltd 0.002 50% 2,704,629 $4,836,599 RML Resolution Minerals 0.028 47% 71,723,563 $9,989,950 BLZ Blaze Minerals Ltd 0.004 33% 186,000 $4,700,843 DGR DGR Global Ltd 0.004 33% 1,922,063 $3,131,088 RAN Range International 0.002 33% 250,030 $1,408,935 RLC Reedy Lagoon Corp. 0.002 33% 599,068 $1,165,060 SRN Surefire Rescs NL 0.002 33% 5,580,186 $3,729,668 CDE Codeifai Limited 0.030 30% 2,400,533 $9,900,084 CTN Catalina Resources 0.005 25% 44,131 $9,704,076 EDE Eden Inv Ltd 0.003 25% 1,331,868 $8,219,762 HFY Hubify Ltd 0.010 25% 233,332 $4,089,090 JAV Javelin Minerals Ltd 0.003 25% 753,793 $12,252,298 MEM Memphasys Ltd 0.005 25% 88,464 $7,934,392 MMR Mec Resources 0.005 25% 897,010 $7,399,063 BXN Bioxyne Ltd 0.032 23% 24,279,435 $56,285,547 CLV Clover Corporation 0.500 22% 4,223,205 $68,469,730 SPD Southernpalladium 0.605 21% 210,309 $45,475,000 AHN Athena Resources 0.006 20% 91,054 $11,329,785 GGE Grand Gulf Energy 0.003 20% 714,148 $7,051,062 KPO Kalina Power Limited 0.006 20% 11,576 $14,664,849 JBY James Bay Minerals 0.655 19% 1,019,396 $39,523,424 Medicinal cannabis company Bioxyne (ASX:BXN) has upgraded its full-year revenue forecast to $28m (up from $25m), after a big first half and an even stronger second half expected. BXN says it see big growth locally, as well as in Germany and the UK. It says FY26 should see even more momentum as it pushes further into Europe. Nutritional ingredients supplier Clover Corp (ASX:CLV) expects its FY25 profit to come in around 20% above consensus, with sales also topping the $79 million forecast. It reckons the momentum will carry into FY26, with full results due out in September. Southern Palladium (ASX:SPD) has locked in $8 million from a share placement at 50 cents to help fast-track its Bengwenyama PGM project in South Africa. The raise was led by one of its biggest shareholders, who tipped in $4.6 million. The cash will go towards finalising its Definitive Feasibility Study. Meanwhile, Monash IVF Group (ASX:MVF) tried to hit the reset button. CEO Michael Knaap has stepped down after a second embryo mix-up this week, this time at its Clayton lab. Two bungles in three months is rough going for a company dealing in life's most sensitive business. MVF's shares rose 6% on the news. ASX SMALL CAP LOSERS Here are the worst performing ASX small cap stocks for June 12 : Code Name Price % Change Volume Market Cap ALV Alvo Minerals 0.021 -46% 2,632,293 $5,972,315 OB1 Orbminco Limited 0.001 -33% 2,151,730 $4,796,352 CTT Cettire 0.328 -30% 31,367,200 $177,275,772 HLX Helix Resources 0.002 -25% 2,002,454 $6,728,387 CLG Close Loop 0.052 -22% 2,772,694 $35,633,941 ARC ARC Funds Limited 0.096 -20% 5,500 $6,174,261 TGH Terragen 0.020 -20% 20,000 $12,625,429 1AD Adalta Limited 0.002 -20% 12,000 $2,516,766 AAU Antilles Gold Ltd 0.004 -20% 1,032,221 $11,556,840 OVT Ovanti Limited 0.002 -20% 8,595,935 $6,983,788 RGL Riversgold 0.004 -20% 35,000 $8,418,563 ROG Red Sky Energy. 0.004 -20% 55,000 $27,111,136 TMX Terrain Minerals 0.002 -20% 100,023 $5,621,392 EVE EVE Health Group Ltd 0.033 -18% 1,219,896 $5,274,509 BMO Bastion Minerals 0.003 -17% 4,529,092 $2,710,883 GES Genesis Resources 0.005 -17% 108,549 $4,697,048 ICG Inca Minerals Ltd 0.005 -17% 799,600 $9,458,340 IFG Infocusgroup Hldltd 0.005 -17% 531,286 $1,655,771 TON Triton Min Ltd 0.005 -17% 45,000 $9,410,332 KKO Kinetiko Energy Ltd 0.042 -16% 18,420 $71,629,255 AM5 Antares Metals 0.006 -14% 4,253,015 $3,603,970 AQX Alice Queen Ltd 0.003 -14% 991 $4,373,740 AS2 Askarimetalslimited 0.006 -14% 3,125,202 $2,829,195 Online luxury fashion retailer Cettire (ASX:CTT) crashed after it revealed soft sales, sliding margins, and a nasty FX hit, with US demand dropping off and the June quarter already looking grim. The company said luxury isn't flying like it used to. With cash burning fast and the balance sheet looking thinner by the week, investors reckon a cap raise might be imminent. IN CASE YOU MISSED IT A QMines (ASX:QML) drilling campaign at Develin Creek is rapidly advancing to expand high-grade copper mineralisation and convert inferred resources near Rockhampton in Queensland. Rhythm Biosciences (ASX:RHY) Rhythm Biosciences (ASX:RHY) has published a study in peer-reviewed open access journal PLoS One, validating its colorectal cancer risk assessment model and marking a major step forward in predictive cancer diagnostics. Silver Mines (ASX:SVL) is adding high-prospectivity, low-risk US precious metals exploration assets to complement its Australian portfolio. LAST ORDERS Melody Gold has exercised an option to process surface gold materials at the Horseshoe Metals (ASX:HOR) Horseshoe Lights copper-gold project in Western Australia, providing both tonnage-based payments and a fixed monthly $50,000 from the start of processing. Horseshoe retains its full rights to copper, mixed surface materials, and all subsurface materials at the project, and director Kate Stoney said it was a strategic step forward to capture early cash flow to help expedite the asset's redevelopment as the company ramps up activity. Titanium Sands (ASX:TSL) has confirmed the progress on environmental studies over its Mannar heavy mineral project in Sri Lanka with a recent site visit and advancements in addressing items raised earlier this year. TSL managing director Dr James Searle said the impact assessment was a very real and detailed study of the project area, and that each and every environmental concern would be addressed. 'It is expected the project will generate significant employment opportunities and long-term wealth for the community not just during the project but also ongoing post rehabilitation,' Dr Searle said. Golden Mile Resources (ASX:G88) has added close to $380,000 to the coffers from the ATO through a research and development tax incentive for work over its Quicksilver nickel-cobalt project near Lake Grace in WA in developing laterite processing technology. G88 managing director Damon Dormer welcomed the refund, saying it provides more funding for exploration over its Pearl copper project in Arizona, where it now awaits assays after wrapping up a maiden 10-hole RC campaign.
