These 2 Energy Stocks are Buzzing After Earnings
Chevron Corporation (NYSE:CVX) reported net income above Wall Street’s expectations for the third quarter. Net income for the oil and gas company rose to $7.83 billion ($3.92 per share) vs. $3.77 billion ($1.87 per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter. Revenue rose 29.6% to $64.43 billion from the year earlier quarter. CVX beat the mean analyst estimate of $3.42 per share. It fell short of the average revenue estimate of $67.91 billion.
“We had another successful quarter,” said Chairman and CEO John Watson, “with both strong earnings and cash flow. Current quarter earnings for our upstream operations benefited from higher crude oil prices on world markets. At the same time, gains on asset sales and improved margins for refined petroleum products contributed to increased earnings for our downstream businesses.” Watson commented, “We continue to progress our major capital projects. The recent decision to develop the Wheatstone LNG project represents a major milestone in the company’s efforts to commercialize our significant natural gas resource base in Australia. The Wheatstone and Gorgon LNG projects are expected to provide substantial new energy supplies to meet growing demand in the Asia-Pacific region.”
Competitors to Watch: Exxon Mobil Corporation (NYSE:XOM), BP plc (NYSE:BP), ConocoPhillips (NYSE:COP), Marathon Oil Corporation (NYSE:MRO), TOTAL S.A. (NYSE:TOT), Hess Corp. (NYSE:HES), Suncor Energy Inc. (NYSE:SU), Repsol YPF, S.A. (REPYY), and Valero Energy Corporation (NYSE:VLO).
Arch Coal Inc (NYSE:ACI) as the industrial metals and minerals company saw profit fall in the third quarter. Net income for the industrial metals and minerals company fell to $19.1 million (9 cents per share) vs. $46.7 million (29 cents per share) a year earlier. This is a decline of 59.1% from the year earlier quarter. Revenue rose 37% to $1.2 billion from the year earlier quarter. ACI reported adjusted net income of 8 cents per share. By that measure, the company fell short of mean estimate of 15 cents per share. Analysts were expecting revenue of $1.22 billion.
“As previously announced, our third quarter financial results reflect lower Powder River Basin shipments versus a year ago due to the impact of Midwestern flooding on rail service, as well as reduced profitability at our Mountain Laurel operation in Appalachia as a result of geologic challenges,” said Steven F. Leer, Arch’s chairman and chief executive officer. “Even with these temporary hurdles, Arch’s quarterly EBITDA expanded year-over-year on higher metallurgical coal shipments and better metallurgical coal pricing.”
Competitors to Watch: Peabody Energy Corporation (NYSE:BTU), CONSOL Energy Inc. (NYSE:CNX), Patriot Coal Corporation (NYSE:PCX), Massey Energy Company (NYSE:MEE), Alpha Natural Resources, Inc. (NYSE:ANR), Alliance Holdings GP, L.P. (NASDAQ:AHGP), Intl. Coal Group, Inc. (NYSE:ICO), James River Coal Company (NASDAQ:JRCC), Natural Resource Partners LP (NYSE:NRP), and Alliance Resource Partners, L.P. (NASDAQ:ARLP).