Oil majors are forced to prepare for a challenging future, but the ways in which they position themselves are quite different

Top Analyst Reports for Alibaba, Chevron & Shopify

Typically, I like to find unique angles regarding today's hot investment topics. But for beleaguered Chesapeake Energy (NYSE:CHK), I don't have anything original to offer. No matter what your perspective, you can't ignore the dire situation the energy firm finds itself in. Even if you're taking the speculative bullish position - which of course very few are - everyone acknowledges the dangers of betting too heavily on CHK stock.Source: Casimiro PT / Shutterstock.com You're not going to find me adopting the contrarian position here. But you might find it curious that in the midweek session, CHK stock closed up by a double-digit margin. That's not necessarily a fluke occurrence.Just recently, oil prices on Thursday reached their highest point since March, according to a Reuters report. Indeed, "black gold" is presently enjoying a triple-pronged catalyst: lower-than-expected U.S. crude inventory, a so far successful implementation of OPEC-led production cuts, and growing demand as governments worldwide have started relaxing restrictions on people's movements.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBetter yet, Chesapeake's native U.S. market will likely provide further upside catalysts for oil prices. As you know, most states have started reopening their economies to various degrees. But a notable number of states are only implementing regional reopening initiatives. According to the New York Times, they include the western coastal states and New York.Currently, this is a huge drag on the broader economy. There's a big difference between Wyoming reopening - no offense to any Wyomingites - versus energy-hungry California. But it's also a longer-term opportunity for CHK stock and its ilk. * 7 Excellent Penny Stocks Ready to Roar As these core states open back up, a robust surge of demand will enter the market. Nevertheless, I don't think it will be enough to save Chesapeake Energy. CHK Stock Was Hurting Well Before the TroublesLately, I find myself getting frustrated with the mainstream media's attempt to manipulate math. We're hearing so much talk about certain industries recovering from their March lows and oil is no exception. But the media tends to isolate their comparisons to only the recently recorded troughs.If we compare oil prices to where they were in the beginning of the year, the situation doesn't look so much like a recovery, but instead a minor mitigation of a disaster. Go back several years and you'll start to see a trend. Oil prices peaked in the early 2010s decade and they don't appear to be making a comeback to those levels anytime soon.This is incredibly problematic if you're buying CHK stock on the hopes of a recovery. Yes, oil prices are recovering, but only against their recent lows. Against any other comparison within the last 15 years, you won't come away with an optimistic assessment.Even if oil prices substantively recovered, so what? The oil markets are a game of musical chairs. It's a reasonably safe bet that sector giants Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) will have a seat. CHK stock? That's not a gamble … that's throwing your money away.Right now, we're seeing oil stocks rise in anticipation of the consumer economy returning. For instance, more people flying would equate to higher oil demand. Click to EnlargeSource: Chart by Josh Enomoto But if you compare CHK stock to jet fuel prices, you'll notice that long-term waning demand for jet fuel has coincided with weakness in Chesapeake shares. So if travel demand "recovers," jet fuel will likely only recover to just before pre-pandemic levels.As you can see, that wasn't sustainable for CHK. Why would it be sustainable in the new normal? So Many Unknowns for ChesapeakeContrarians might point out that consumers will likely travel en masse in their personal vehicles rather than flying. Thus, investors shouldn't ignore the robust automobile traffic demand that's already rising across the U.S.I won't disagree with that. For many metropolitan areas in California, for instance, they looked like ghost towns. Therefore, some semblance of the old normal will represent a nice lift for energy firms.But specific to California, we don't know when powerhouse cities like Los Angeles will reopen. And the longer such cities stay shuttered, the more they risk severe economic damage.Let's not forget the big one - jobs. Over a nine-week period, nearly 39 million Americans filed for unemployment benefits. Current trends suggest that millions more will file over the next several weeks. Until most consumers feel comfortable about their employment situation, travel volume overall will remain deflated.Thus, while many catalysts are potentially available over the horizon, energy companies need patience to actualize them. But that's another problem, isn't it? Because the one thing that Chesapeake doesn't have is time.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Chesapeake Energy Is Just a Dead Cat Bouncing appeared first on InvestorPlace.

Chevron Corp shareholders on Wednesday voted to approve a proposal demanding that the company issue a report on its climate change related lobbying activities, a major win for activists against big oil. Other shareholder proposals were defeated, including one calling on the U.S. oil producer to split its chairman and chief executive roles that received only around 27% votes in favor. Rival Exxon Mobil Corp's shareholders on Wednesday also rejected calls to split the chair and CEO roles along with all other climate related proposals.

Wall Street ended mixed on Friday in a mostly tame finish to a week of strong gains, as investors gauged China-U.S. tensions and amid ongoing uncertainty about the pace of economic recovery from the coronavirus. President Donald Trump's warning on Thursday that the U.S. would react strongly to China's plan for a national security law in Hong Kong has raised concerns over Washington and Beijing's possibly reneging on their Phase 1 trade deal. Late in the session, stocks edged lower after the U.S. Commerce Department said it was adding 33 Chinese companies and other institutions to an economic blacklist for human rights violations and to address U.S. national security concerns.

The blue-chip index's northbound journey began on Mar 24 and is continuing barring occasional fluctuations.

In this article we will take a look at whether hedge funds think Chevron Corporation (NYSE:CVX) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips from […]

Three that I own and plan to buy more of are AT&T (NYSE: T), STORE Capital (NYSE: STOR), and Chevron (NYSE: CVX). If ever there was an imperfect telecommunications stock, it would be AT&T. In fact, some flaws could be considered major grievances. Shifting away from its bread-and-butter mobile network service, the company racked up massive debt purchasing DirecTV in 2015 and Time Warner in 2018, leaving it with a heaping $164 billion in long-term liabilities at the end of its first quarter of 2020.

The Zacks Analyst Blog Highlights: ExxonMobil, Chevron, National Oilwell Varco, HollyFrontier and Halliburton

Chevron Corporation (NYSE: CVX) today provided an overview of the company’s work to respond to the COVID-19 pandemic at its 2020 annual meeting of stockholders. This year’s meeting was virtual in place of an in-person event due to safety concerns related to the pandemic.

(Bloomberg) -- In a rare move against Chevron Corp.’s board, shareholders of the U.S. oil giant are calling on the company to disclose lobbying efforts and ensure that they support international goals to combat global warming.The proposal was the only one where a majority of Chevron’s investors diverged from the board’s recommendations in an annual meeting held virtually Wednesday. The matter was brought by BNP Paribas Asset Management, which has stepped up efforts in recent years to help further the international Paris Agreement on climate change. BlackRock Inc., Chevron’s second-biggest shareholder, also backed the measure.The vote comes as the world’s oil giants are already reeling over a pandemic-fueled market rout, while also facing increasing pressure to curb greenhouse-gas emissions and contribute more to the fight against climate change.U.S. oil majors Chevron and Exxon Mobil Corp. have noticeably lagged behind their European counterparts in making carbon-cutting pledges. BP Plc and Royal Dutch Shell Plc have both committed to becoming carbon neutral by 2050 -- a move that Chevron’s chief recently called “aspirational” and Exxon’s described as nothing more than a “beauty competition.”Though America’s two biggest oil companies say they support the goals of the Paris accord, some investors want reassurance that they’re not funding trade organizations that promote policies to the contrary.“Climate issues are so central to the work of these organizations that it’s hard not to be concerned that there’s the potential for misalignment,” said Jonathan Bailey, head of ESG investing at Neuberger Berman, which voted for the proposal. “This will also help accelerate clearer activities from the organizations they support.”Chevron’s board had recommended investors vote against the proposal, saying that it already made transparent disclosures of its lobbying activities. The defeat -- with a preliminary count showing 53% of investors voting in favor of the proposal -- means Chevron will be required for the first time to issue a report detailing how those activities align or not with climate goals.The result “is a real rebuke to Chevron and a wake-up call to the board,” said Kathy Mulvey, a campaign director at the Union of Concerned Scientists. “Companies must back up their statements with consistent action.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

It also sounds like integrated oil major Chevron (NYSE: CVX). Chevron is the second-largest energy company in the world by market cap, surpassed only by its fellow U.S. oil juggernaut ExxonMobil (NYSE: XOM). Let's take a closer look at Chevron to see whether it's a buy.

The energy sector is dealing with an unprecedented shock, but that is opening up interesting opportunities for long-term investors.

With its stock down 7.9% over the past three months, it is easy to disregard Chevron (NYSE:CVX). It is possible that...

What is a dividend and which companies have the best-yielding dividends? Read on for a primer on how best to approach this method of investing.

Investing.com - Oil prices pushed higher Tuesday, amid signs producers are making good their promises to cut crude supply while demand picks up.

Looking for big dividends that look like they'll survive the COVID-19 crisis in stride? This trio of stocks should be on your short list.

DOW UPDATE Dragged down by negative returns for shares of Chevron and Caterpillar, the Dow Jones Industrial Average is declining Friday afternoon. Shares of Chevron (CVX) and Caterpillar (CAT) have contributed to the index's intraday decline, as the Dow (DJIA) was most recently trading 74 points (0.

After last month's collapse, oil prices have bounced back. Will BP (NYSE:BP) stock see an additional boost? The oil giant's shares have moved higher from their March sell-off lows. Rising from $15.51 per share to $23.62 per share, BP stock got a more than 50% gain in two months.Source: TK Kurikawa / Shutterstock.com Yet, other integrated names have performed even better during this timeframe. Take Chevron (NYSE:CVX), for instance. CVX shares are up about 80% from their 52-week lows. ConocoPhillips (NYSE:COP)? Their shares have doubled since their March lows.So, what's the issue here? More like two issues. With investors anticipating a dividend cut and the company shouldering a massive debt load, there are plenty of reasons for concern.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDespite these overhangs, today's prices may be a solid entry point for BP stock. Sure, risks remain. However, energy prices continue to bounce back. With the novel coronavirus soon in the rearview mirror, "return to normal" will finally happen. With these factors in mind, there's plenty of potential for shares to move higher. Why the Rebound Has Only Just Started For BP StockOil may no longer be trading at negative prices, but it's still substantially lower than where it was just a few months prior. At the start of 2020, crude oil was trading above $60 a barrel. Today? Around $34 a barrel. * 7 Excellent Penny Stocks Ready to Roar Besides beaten-down prices, things are moving in the right direction. The coronavirus took its toll. With much of the world's economic activity brought to a halt, it's no surprise demand for petroleum collapsed.Yet, with the pandemic slowly ending, expect energy prices to continue bouncing back. Granted, experts like the EIA (Energy Information Administration) don't see prices heading above $50 per barrel until the end of 2021.However, BP is taking active steps to improve its cash flow situation while oil lingers at lower-than-normal prices. By slashing costs, the company expects its breakeven oil price to fall from $56 a barrel in 2019 to just $35 a barrel in 2021.Granted, this implies continued profitability challenges this year. But with Wall Street taking a forward-looking approach, shares could continue to climb in tandem with oil prices, as investors anticipate a rebound in net income and cash flow.In short, shares look appealing as a bottom-fisher's buy. There are some risks to keep in mind before you put in a buy order. Is the Dividend Safe?A dividend cut seems to be the other shoe that's yet to drop. As InvestorPlace's Tom Taulli wrote May 18, the company's current cash flows can't cover the dividend. In short, shares now have a seemingly high yield of 10.7%, but that's only because investors expect a cut sometime soon.Is their validity to these fears? Peers like Royal Dutch Shell (NYSE:RDS.B, NYSE:RDS.A) have already slashed their dividends. And analysts like Morgan Stanley's Martijn Rats think BP is the next one to announce a cut. He sees the company reducing its dividend by half in order to avoid taking on additional debt.Speaking of debt, that's the other issue at hand with this company. Taulli touched on this in his write-up, stating that the company's outstanding debt continues to climb. Coupled with reduced cash flow, this could mean a serious liquidity situation.Or does it? Based on a market update from back in April, the company detailed their liquidity situation, and their game plan to ride out today's storms. As of March 31, BP had $32 billion in cash and available credit lines.To combat sharp declines in cash flow, the company announced a 25% cut to capital expenditures. They also plan billions in cost-cutting across their upstream (exploration) and downstream (refining/marketing) business units. Pending asset sales could also free up additional capital.The situation at BP is far from perfect, yet these aforementioned risks are likely accounted for in today's valuation. When the other shoes does drop, don't expect shares to fall much further from here. Risks Remain, But BP Could Move HigherThings turn on a dime in the oil patch. Whether it be Middle East conflict, trade wars, or pandemics, it's tough to "predict the unpredictable" with energy prices. With today's crisis slowly dissipating, it's fair to assume a bounce back in demand is just around the corner. In short, plenty of reason for oil prices to continue trending higher.Although the company has a lot on its plate regarding debt and an unsustainable dividend, investors have largely priced these risks into the current share price. If and when the dividend gets a haircut, don't expect shares to sell off further.In short, with the potential for shares to rally in tandem with rising oil prices, consider BP stock a buy.Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Despite Challenges, Consider BP Stock a Bottom-Fisher's Buy appeared first on InvestorPlace.

The oil producer previously disclosed a 30% reduction in its 2020 spending and some voluntary job cuts amid this year's sharp drop in oil prices and lower demand for oil and gas due to the COVID-19 pandemic. Chevron has been widely seen as the standard bearer of financial discipline in the oil industry and was among the first to make significant budget cuts as oil demand plummeted. Last year, it abandoned a takeover bid for Anadarko Petroleum Corp rather than get into a bidding war with Occidental Petroleum Corp .