Market Analysis by covering: Phillips 66. Read 's Market Analysis on Investing.com ...

Chevron has achieved a major operational milestone in Angola, delivering first oil from its South N’dola offshore platform in December, just over two years after construction began. The project reinforces Chevron’s long-standing role in one of Africa’s most important offshore oil provinces and highlights its strategy of extracting incremental value from mature assets. The South N’dola Platform is located in Block 0, a prolific offshore area that accounts for roughly 12% of Angola’s daily oil production. ...

Core Insights - The oil market is experiencing a slowdown due to weaker growth in key regions and falling prices, with the Permian Basin's dominance no longer sufficient for national expansion [1] - A supply-demand imbalance is expected to cap oil prices, with WTI crude projected to average $51 per barrel in 2026 amid rising global inventories [2] - U.S. oil firms are shifting focus from output expansion to capital discipline and shareholder returns, influenced by lower prices and soft global demand growth [3] - The current market setup is fragile, with risks of worsening oversupply and potential future shortages due to sustained underinvestment [4] Group 1 - The slowdown in the oil market is attributed to weaker growth in key regions and falling prices, with infrastructure limits and tighter capital discipline affecting new investments [1] - Older basins like Eagle Ford and Bakken are declining due to reduced drilling activity and natural depletion, while offshore gains remain modest [1] Group 2 - The EIA forecasts that WTI crude oil will average $51 per barrel in 2026, reflecting a surplus environment with global inventories exceeding the five-year average [2] - Producers are facing tighter margins and falling cash flows as supply grows faster than demand, leading to a cautious investment climate [2][3] Group 3 - U.S. oil firms are prioritizing capital discipline and shareholder returns over output expansion, as lower prices discourage investment in higher-cost regions [3] - Global demand growth remains soft, with efficiency gains and reduced transportation fuel usage dampening the outlook [3] Group 4 - The oil market is under pressure from rising inventories, flat U.S. production, and cautious spending behavior across the industry, creating a fragile market setup [4] - Lack of coordination among producers could exacerbate oversupply, while sustained underinvestment raises the risk of future shortages [4]

Let's bring in again Capital founding partner John Kildoff and Tortoise senior portfolio manager Rob Thumbl. John, does it tell you the story about how much inventory is out there in the world or at least perceived to be out there in the world that were boarding Venezuelan some Venezuelan tankers that were starting to attack militant targets in Nigeria and yet the price of oil is down right now. >> Yes.And uh good to see you Brian. uh the the cushion the supply cushion out there right now is extent and uh i ...

Core Viewpoint - The Zacks Oil and Gas - Exploration and Production - International industry is currently facing challenges due to volatile commodity prices, rising geopolitical risks, and weaker earnings expectations, which cloud near-term prospects [1][2] Industry Overview - The industry consists of companies primarily operating outside the United States, focusing on the exploration and production of oil and natural gas [3] - Cash flow for producers is heavily influenced by realized commodity prices, making them vulnerable to price volatility [4] Key Investing Trends - Geopolitical risks and operational disruptions remain high, introducing volatility that is difficult to hedge [5][6] - Operators are increasingly prioritizing cash flow stability over aggressive growth, emphasizing disciplined capital spending and focusing on lower-decline assets [7][8] - Delayed project timelines can push cash flow inflection points further out, testing investor patience [10][11] Industry Performance - The Zacks Oil and Gas - International E&P industry has underperformed compared to the broader energy sector and the S&P 500, declining 32% over the past year while the broader sector increased by 7.5% and the S&P 500 gained 14.3% [16] Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 6.33X, significantly lower than the S&P 500's 18.58X but above the sector's 5.46X [18] Stocks to Watch - **Vermilion Energy**: A globally diversified producer with a focus on steady production and sustainable free cash flow, expecting 13.4% revenue growth in 2025 [19][22] - **VAALCO Energy**: An independent oil and gas company with a strong emphasis on African and Canadian markets, with a market cap of approximately $366 million and a 50% increase in earnings estimates for 2025 [22][23] - **Genel Energy**: Focused on the Kurdistan Region of Iraq, aiming for stable production and long-term value creation, with a projected 78.6% growth in earnings for 2025 [24][26]

Santos has executed a conditional sale and purchase agreement to divest its 42.86% operated interest in the Mahalo Joint Venture in Queensland’s Bowen Basin to Comet Ridge Limited. The transaction delivers A$40 million in upfront consideration, with up to A$20 million in additional contingent payments tied to future production milestones. Separately, Santos has completed the sale of its 42.71% interest in the Petrel fields and its 100% interest in the Tern fields in the offshore Bonaparte Basin to Eni Au ...

The Zacks Oil and Gas - Exploration and Production - International industry is facing a challenging trend as volatile commodity prices, rising geopolitical risks and weaker earnings expectations cloud near-term prospects. While demand fundamentals matter, cash flows remain tightly linked to volatile commodity prices, making earnings visibility uneven. Geopolitical tensions, regulatory hurdles, and operational disruptions add further pressure, often limiting upside even when assets perform well. On the posit ...

I was asked under oath in a congressional hearing to pledge that we would never again produce any more energy than we were at that point in time. And some of the other companies that were at that hearing agreed to that. I did not because I said, "Look, the demand for our products is going up, not down. Let's let's get the big question out of the way first. Do you watch Land Man.>> I do. >> You do. What do you think.>> It's a great show. >> Is it a good depiction of your new home in Texas. Well, um I mean a ...

Core Viewpoint - Chevron is positioned for significant growth in 2026 due to completed capital projects and the acquisition of Hess, which will enhance its free cash flow and shareholder returns [1][10]. Capital Spending Plans - Chevron's 2026 capital expenditure is projected to be between $18 billion and $19 billion, with affiliate capex expected to range from $1.3 billion to $1.7 billion, marking an increase from the $15 billion organic capex budget set for 2025 [2][3]. - The increase in capital spending is primarily attributed to the Hess acquisition, aligning with Chevron's long-term outlook of $18 billion to $21 billion [3]. Investment Focus - The majority of Chevron's capital, approximately $17 billion, will be allocated to upstream operations, with nearly $6 billion dedicated to U.S. shale assets in the Permian, DJ, and Bakken regions [5]. - Chevron plans to invest $7 billion in global offshore projects, particularly in Guyana, the Eastern Mediterranean, and the Gulf of Mexico, and $1 billion in reducing carbon intensity and expanding lower-carbon energy businesses [5]. Free Cash Flow Expectations - Chevron anticipates generating an additional $10 billion in free cash flow from legacy operations and $2.5 billion from the Hess acquisition, assuming Brent oil averages $70 per barrel in 2026 [7]. - The company expects a compound annual growth rate of over 10% in adjusted free cash flow through 2030, contingent on crude oil prices [8]. Shareholder Returns - Chevron plans to increase its dividend, currently yielding 4.5%, and has a history of raising it for 38 consecutive years, with a mid-single-digit growth rate over the past decade [9]. - The company aims to repurchase shares within an annual target range of $10 billion to $20 billion, potentially retiring 3% to 6% of outstanding shares each year at current prices [9].

Core Thesis - AppLovin Corporation is positioned as a strong player in the digital advertising space, competing effectively with major companies like Meta, Snap, and TikTok, with significant growth potential and a lean operating model [2][3][4] Financial Performance - As of December 1st, AppLovin's share price was $623.59, with trailing and forward P/E ratios of 73.54 and 43.48 respectively [1] - The company reported over $11 billion in gross ad spend as of Q1, indicating a scale comparable to the combined revenues of Pinterest, Snap, and Twitter [2] - AppLovin has achieved EBITDA margins of 80–85% and converts over 50% of EBITDA to free cash flow, showcasing its ability to generate durable cash flow [4] Market Position and Strategy - AppLovin currently commands a 3–5% budget share among surveyed customers, ranking just behind Meta and Google, with significant room for market expansion [3] - The company's capital allocation strategy focuses on deploying all free cash flow toward share buybacks, reflecting confidence in its intrinsic value [3] Growth Opportunities - The company identifies a substantial untapped opportunity in in-game advertising, estimating that this could unlock an additional $100 billion in total addressable market [4] - Future marketing efforts, including large-scale campaigns, are expected to further accelerate customer growth [4] Historical Context - The stock has appreciated approximately 141.92% since a previous bullish thesis in March 2025, indicating strong market performance driven by its software-driven growth strategy [5]