Energy Business Review: Exxon’s Fresh Dividend, Chevron Earnings
Last year’s series of oil spills off the coast of northern China costs ConocoPhillips (NYSE:COP) and its partner Cnooc (NYSE:CEO) 1.683 billion yuan, or $266.9million, according to China’s State Oceanic Administration. Further, Cnooc alone would be liable for 1.09 billion yuan, to cover damages to the area’s marine ecology.
Total’s (NYSE:TOT) near term losses in production from its recent gas leakages are sunk, as analysts say there is nothing it can do to make up for them, but new start-ups in the pipeline could bring 2.5 percent annual growth in production. Bernstein comments that although “volume growth hasn’t emerged, it’s coming”, with the general output objective being “achievable”.
Deutsche Bank opines that Exxon Mobil (NYSE:XOM) could further raise its dividend on top its 21 percent increase of earlier this week. The analyst at DB says that “If Exxon Mobil’s CEO [Rex Tillerson] stays true to his word… and keeps the yield competitive, there should be further dividend increases before next year. We believe shareholder pressure will remain high for this.”
Investing Insights: Gold Finishes Week Higher as Dollar Sinks to 3-Week Low.
Wunderlich starts Pike Electric (NYSE:PIKE) off with a Buy and shares respond in kind. The rating agency sees Pike as well positioned for higher growth than in its past, and notes that it has expedited the financial downturn to purchase undercapitalized firms while leveraging its own balance sheet into these new businesses, which enabled it expand its presence across the United States.
Chevron (NYSE:CVX) — alone in its industry — had a positive first quarter earnings report, and Barclays thinks that its shares could exceed their price target of $133 by 25 percent, saying that “Despite first quarter 2012 earnings results coming in slightly lower than consensus and our expectations, we think the market will focus on the stronger-than-expected upstream results.”. The company’s COO reports that CVX will not use its $18.9 billion reserves on capital expenditure overruns, but will explore the idea of additional share repurchase programs, while keeping dividends as a top priority.
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