Anadarko Petroleum has posted Q4-2018 earnings of $0.38 per share, missing analysts’ consensus earnings estimate by a wide margin of $0.23 per share, thanks in large part to weak prices and high costs.
The big boys of the energy industry - Exxon Mobil Corp., Royal Dutch Shell, Chevron Corp., and BP Plc – have posted stellar earnings by smashing analysts’ consensus estimates which will ease investors’ concerns regarding sustainability of dividends and buybacks in a weak oil price environment.
By Sarfaraz A. Khan Hess Corporation delivered better-than-expected
production and earnings in Q4-2018, but the company continues to lose money and
burn cash flows. Hess could report additional losses and negative free cash
flows in the coming quarters if oil prices stay weak.
By Eddie Gunn Analysts have given varying estimates for oil prices for 2019. Forecasts for Brent crude mostly fall in a range of $68-$73
a barrel. The investment banks and the US Energy Information Administration see the US crude averaging around $59-$66 a
Prices for the Brent and WTI averaged $71.40 and $65.18 a barrel respectively in 2018, as per data from the US EIA.
Although the outlook appears bright, the commodity continues to face a number of headwinds ranging from trade war fears which can have a negative impact on oil demand and a surge in production from the US in the late-2019 as new pipelines are deployed in the Permian Basin.
By James Hanshaw Diamondback Energy, one of the leading independent shale oil producers, will target 28% growth in total production driven by 30% growth in oil production, on a pro-forma basis, by spending $2.7 – $3.1 billion.