Halliburton stock and its peers lagged the rallying stock market, even as fourth-quarter earnings from the oilfield services and equipment leaders provided fresh details on what propelled a 52% rebound in oilfield service stocks since September. In addition, the group delivered unanimously rosy outlooks for the year, despite projections for lower oil prices in both 2023 and 2024.
As a result, SLB expects to distribute more than 50% of its free cash flow, totaling $2 billion, to shareholders in 2023. Halliburton also announced plans to return at least 50% of its free cash flow to investors through dividends and buybacks. Meanwhile, Baker Hughes says shareholders can expect it to return 60%-80%.
As the market rolls into February, oil- and gas-related stocks have turned hit or miss. Energy stocks were volatile throughout 2022, but ran easily ahead of the overall market. The 31 stocks in the Oil and Gas Field Services collectively advance 48% for the year, despite spending most of the year in a consolidation.
Energy giant Exxon Mobil (XOM), reported fourth-quarter earnings on Tuesday, and is attempting to break out from a flat base with a 114.76 buy point. Chevron (CVX), which reported record profit and a $75 billion share buyback on Jan. 27, has broken down sharply, nixing a base-building effort. Valero Energy (VLO) has also broken down out of a base, while Matador Resources (MTDR) is shaping a down-trending handle on a 13-week cup.
Meanwhile, SLB and Halliburton stock are both holding support and near buy zones coming out of earnings. The Oil&Gas-Machinery/Equipment industry group currently ranks No. 1 out of 197 industries tracked by IBD. In that group, Baker Hughes is hovering around a 31.98 buy point in a nine-week flat base.
Halliburton stock continued to test support at its 10-week moving average, after its quarterly report on Tuesday. HAL saw Q4 EPS and revenue increase 100%, to 72 cents and $5.58 billion, respectively. It reported 2022 EPS of $2.15, up 99% compared to 2021. Full-year sales shot up 33% to $20.3 billion.
Argus analyst Bill Selesky increased the price target for Exxon to $133 from $128 and maintained a Buy rating after the company reported higher Q4 2022 earnings due to a rise in realized crude oil and natural gas prices and increased production. Despite the impressive run in XOM stock last year, Selesky sees a long runway ahead based on strong energy market fundamentals.
Wall Street is bullish about SLB, with a Moderate Buy consensus rating backed by 12 Buys and one Hold. The average SLB stock price target of $67.17 implies 26% upside. Shares are essentially flat compared to the start of 2023 and have advanced about 30% over the past year.
Oilfield service giant Schlumberger (SLB) topped earnings and revenue estimates Friday, with the company reporting worldwide oil and gas drilling momentum. Schlumberger earnings come amid energy pricing volatility and an uncertain outlook for oil and gas production as producers have appeared to hedge on whether to up production with the possibility demand could fall off during a recession. SLB stock soared during market trading Friday.
SLB stock advanced 10% to 50.30 during Friday market trading. On Thursday, shares edged up 0.5% to 45.69. Schlumberger shares have formed a cup pattern with a 49.93 buy point, according to MarketSmith.
SLB stock ranks second in the oil and gas field services industry group. Schlumberger has a 98 Composite Rating out of 99. The stock has a 96 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement. The EPS rating is 79.
Finally, we initiated increased returns to shareholders, demonstrating confidence in our strategy, our financial outperformance, and our commitment to superior returns. We increased our dividend by 40% in April 2022, followed by a further 43% increase today, and we resumed our share buyback program this month.
8)How many shares of common stock were outstanding as of December 31, 2022, and how did this change from the end of the previous quarter?
There were 1.420 billion shares of common stock outstanding as of December 31, 2022, and 1.418 billion shares outstanding as of September 30, 2022.
From July 1, 2016 to September 30, 2016, the company has repurchased 0 shares, representing 0% for $0 million. With this, the company has completed the repurchase of 0 shares, representing 0% for $0 million under the buyback announced on January 21, 2016.
Read on as we look at eight of the best energy stocks to buy now. To compile the list, we turned to the TipRanks database (opens in new tab). Each of the names featured here boasts either a Strong Buy or Moderate Buy rating from Wall Street analysts, and each offers major upside potential based on their consensus price targets.
KMI's board of directors approved a quarterly cash dividend of 27.75 cents per share ($1.11 on an annualized basis), payable on Nov. 15 to stockholders of record as of the close of business on Oct. 31.
Following the Q3 results, Mizuho Securities analyst Gabe Moreen (opens in new tab) reiterated a Buy rating and a price target of $22 on the stock. "We believe some of the headwinds that challenged KMI in 3Q22, such as the Freeport LNG outage and a struggling commodity tape, will persist through the remainder of the year," Moreen said. As a result, the analyst lowered his Q4 EBITDA budget estimates by $43 million, which brings his full-year estimate to $7,413 million.
Other analysts on Wall Street are cautiously optimistic about KMI, with three out of eight surveyed by TipRanks rating the stock a Buy. See what else the pros have to say about KMI on TipRanks (opens in new tab).
Wells Fargo's top-rated analyst, Roger Read, is upbeat about SLB with a Buy rating. He also has a Street-high price target of $69 on the stock, representing implied upside of 38.6% from current levels.
The Street is also bullish on one of the best energy stocks for 2023, with a unanimous 18 Buys among analysts that have sounded off over the past three months. TipRanks offers up a full analyst rundown of SLB shares (opens in new tab).
More encouragingly, earlier this month, the company outlined plans to increase shareholder distributions to a range of $10 billion to $12 billion by the end of 2024 through stock buybacks and dividends. In addition, PSX's board of directors approved a $5 billion increase to the company's share repurchase program, which brings the total amount of stock buybacks authorized by the board since 2012 to $20 billion.
Top-rated Jefferies analyst Lloyd Byrneis is sidelined on the stock with a Hold rating, but recently raised its price target to $120 from $105. The analyst expects that PSX is likely to generate free cash flows of approximately $16 billion from 2023 to 2025 and return around $10.5 billion to stockholders in the same period.
Most Wall Street analysts are cautiously optimistic about the energy stock with a consensu rating of Moderate Buy based on nine Buys and four Holds. See the full rundown of analyst ratings for PSX on TipRanks (opens in new tab).
While Sorbara has a Hold rating on the stock, other Wall Street analysts are cautiously optimistic. PXD has a Moderate Buy consensus rating based on eight Buys, six Holds and one Sell. Check out Wall Street's average, highest and lowest price targets for PXD on TipRanks. (opens in new tab)
As a result, the analyst maintained a Buy rating on the stock with a price target of $160. Sorbara believes that EOG's "track record of execution and shareholder returns with its cash-rich balance sheet" provides "differentiation and optionality, in our view."
EOG is another of the Strong Buy-rated energy stocks featured here, thanks to 18 Buys and just two Holds among analysts who have released notes over the past three months. Check out other analysts' price targets and analysis for EOG at TipRanks. (opens in new tab)
Neal Dingmann, Truist's top-rated analyst, is bullish on the stock, with a Buy rating and a Street-high price target of $167. The analyst considers COP to be in an "enviable financial and operational position with nearly no debt, record production, and sizable, quality inventory." And while Dingmann concedes that he has "received some investor pushback that has focused on the company's stock hitting a recent all-time high, we point out that the valuation still looks very reasonable with the shares trading at a 15% free cash flow yield and 4.4x earnings basis; both 20%+ discounts to its closest peers."
The company also stated in its Q3 press release that it expects to generate over $20 billion of available cash through 2026. As a result, LNG has increased its stock buyback authorization by $4 billion for an additional three years and has lowered its long-term leverage target.
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