While other earnings may have disappointed last week, the news was good for oil giant ConocoPhilips (NYSE: COP). In what some took as a good sign for big oil, the Houston-based company reported that third quarter net income surged 41% year over year to $3.39 per share, and that revenue also surged 52% to $70 billion. We'll see whether the good news extends to other petroleum giants scheduled to report quarterly results this week.
Analysts surveyed by Thomson Financial are looking for BP (NYSE: BP) profits to have grown 43.2% in the most recent quarter to $2.34 per share on revenue of $109.7 billion, and Chevron Corp. (NYSE: CVX) to post earnings up 39.4% to $3.25 per share on revenue of $86.8 billion. Marathon Oil Corp. (NYSE: MRO), ExxonMobil Corp. (NYSE: XOM), and Royal Dutch Shell (NYSE: RDS.A) likewise are expected to report higher net income of $2.33 per share (sales of $23.4 billion), $2.40 per share (sales of $131.4 billion), and $2.65 per share, respectively. Even Valero Energy Corp. (NYSE: VLO) is expected to post earnings slightly higher to $1.46 per share (sales of $36.4 billion), despite the effects of Hurricane Ike. Among these companies, only BP and Valero beat earnings expectations in the previous quarter. Not surprisingly, analysts on average recommend buying all except Valero, and shares of all of these companies have recently hit 52-week lows.
Analysts are even more optimistic about coal producers. Alpha Natural Resources Inc. (NYSE: ANR) profits are expected to have soared 86.1% to $1.01 per share on revenue of $692.5 million ahead of its merger with iron miner Cliffs Natural Resources Inc. (NYSE: CLF). Arch Coal Inc. (NYSE: ACI), Massey Energy Co. (NYSE: MEE), and Walter Industries Inc. (NYSE: WLT) profits are also expected to be more than 60% higher, to $0.59 per share (sales of $764.1 million), $0.73 per share (sales of $771.3 million), and $1.27 per share (sales of $378.8 million), respectively. However, Tulsa-based Alliance Resource Partners LP (NASDAQ: ARLP) earnings are expected to have fallen 27.7% to $0.60 per share on revenue of $275.9 million. Unlike the other coal producers above, Alliance failed to beat expectations in the previous quarter. Also, analysts expect Patriot Coal Corp. (NYSE: PCX) to narrow its net loss to $0.14 per share from $0.35 per share in the year-ago period, but it's the only one of these coal companies that doesn't get a consensus analysts' recommendation to buy. Shares of all these coal companies have recently been trading near their 52-week lows.
Judging by the estimates for Ocean Shipholding Group Inc. (NYSE: OSG) and General Maritime Corp. (NYSE: GMR), the strength of the oil producers is good for the tanker companies and other oil-related transport providers as well. New York-based OSG is expected to report $3.61 per share earnings (78.4% higher than a year ago) on revenue of $420.5 million, and General Maritime's profit is expected be up 47.8% to $0.69 per share, on revenue of $70.1 million. Also, GulfMark Offshore Inc. (NYSE: GLF) and Tidewater Inc. (NYSE: TDW) are also expected to report higher profits of $1.62 per share (sales of $119.0 million) and $1.83 per share (sales of $354.4 million), respectively. However, K-Sea Transportation Partners (NYSE: KSP) and Cal Dive International Inc. (NYSE: DVR) profits are expected to have declined to $0.54 per share (sales of $92.9 million) and $0.38 per share (sales of $258.4 million), respectively. The consensus recommendation is to buy these transportation stocks, except for New York-based General Maritime, which is in the process of acquiring smaller rival Arlington Tankers Ltd. (NYSE: ATB). Again, these stocks are near their 52-week lows.
Here's a look at what analysts are expecting from some of the other oil and energy related companies scheduled to report this coming week:
- Tesoro Corp. (NYSE: TSO): $1.50 per share (+77.3%) on revenues of $8.1 billion (+37.6%)
- Murphy Oil Corp. (NYSE: MUR): $2.65 per share (+60.8%) on revenues of $6.9 billion (+44.9%)
- First Solar Inc. (NASDAQ: FSLR): $1.01 per share (+51.5%) on revenues of $339.8 million (+113.4%)
- Occidental Petroleum Corp. (NYSE: OXY): $2.71 per share (+46.5%) on revenues of $6.5 billion (+34.0%)
- Nexen Inc. (NYSE: NXY): $1.33 per share (+45.9%) on revenues of $2.3 billion (+43.4%)
- Hess Corp. (NYSE: HES): $2.42 per share (+44.6%) on revenues of $10.2 billion (+36.4%)
- Apache Corp. (NYSE: APA): $3.79 per share (+42.7%) on revenues of $3.7 billion (+46.0%)
- Pride International Inc. (NYSE: PDE): $1.03 per share (+34.0%) on revenues of $624.7 million (+15.6%)
- Noble Energy Inc. (NYSE: NBL): $1.89 per share (+32.3%) on revenues of $1.0 billion (+23.7%)
- Chesapeake Energy Corp. (NYSE: CHK): $0.88 per share (+21.6%) on revenues of $2.6 billion (+27.0%)
- MDU Resources Group Inc. (NYSE: MDU): $0.68 per share (+16.2%) on revenues of $1.4 billion (+8.6%)
- Sunoco Logistics Partners LP (NYSE: SXL): $1.13 per share (+14.2%) on revenues of $3.3 billion (+69.9%)
- Entergy Corp. (NYSE: ETR): $2.52 per share (+8.7%) on revenues of $3.9 billion (+18.9%)
- Enbridge Energy Partners LP (NYSE: EEP): $0.88 per share (+8.0%) on revenues of $2.7 billion (+59.8%)
- Dominion Resources Inc. (NYSE: D): $0.90 per share (+4.4%) on revenues of $3.6 billion (-1.0%)
- SCANA Corp. (NYSE: SCG): $0.82 per share (+3.7%) on revenues of $1.1 billion (+0.2%)
- Progress Energy Inc. (NYSE: PGN): $1.24 per share (+2.4%) on revenues of $3.0 billion (-4.2%)
- Patterson-UTI Energy Inc. (NASDAQ: PTEN): $0.62 per share (same as a year ago) on revenues of $598.8 million (+14.3%)
- Public Service Enterprise Group Inc. (NYSE: PEG): $0.99 per share (-1.0%) on revenues of $3.7 billion (+7.6%)
- Alliant Energy Corp. (NYSE: LNT): $1.00 per share (-4.8%) on revenues of $978.0 million (+7.8%)
- Ameren Corp. (NYSE: AEE): $1.25 per share (-8.1%) on revenues of $2.3 billion (+14.6%)
- BJ Services Co. (NYSE: BJS): $0.56 per share (-12.5%) on revenues of $1.5 billion (+14.9%)
- Wisconsin Energy Corp. (NYSE: WEC): $0.55 per share (-21.4%) on revenues of $892.8 million (+1.3%)
- TECO Energy Inc. (NYSE: TE): $0.29 per share (-23.7%) on revenues of $979.9 million (-1.0%)











Reader Comments (Page 1 of 1)
10-27-2008 @ 4:50AM
andy abraham said...
We discusssed the falling prices of oil on myinvestorsplace.com and what was very interesting was a member brought out the point that Richard Rainwater has started buying crude as well as oil stocks again... He was right in 1998 when he started buying crude at $14.00 a barrel... we have been discussing if he will be right again...
what do you think??