Jefferies cuts PTs, revises earnings estimates on oil firms on price weakness

Marathon Oil

16/09/2024 14:16

** Jefferies cuts price targets and revises earnings
estimates for oil and gas companies after recent declines in
commodity prices
    ** Crude prices have been pressured after OPEC and IEA
lowered their demand growth forecasts, citing economic struggles
in China, the world's largest oil importer
    ** Brent crude  LCOc1  is down 16.5% and U.S. crude  CLc1 
~15% so far in Q3  O/R 
    ** YTD, Brent crude down ~6% and U.S. crude ~3%
    ** Overall, Jefferies cut PTs for producers in its coverage
by ~10% and those of US refining firms by ~4% 
    ** Brokerage also revised EPS estimates for 2024, 2025 and
2026
    ** Apart from lower prices, Jefferies also expects the
anti-energy lobby to use legal avenues to continue disrupting
energy firms' operations
    Here are some of the PT cuts/EPS revisions:
 Company Name    New PT   Old PT    Updated 2024  Previous 2024
                                    EPS est       EPS est
 APA Corp        $27      $32       $3.88         $4.46
  APA.O                                           
 ConocoPhillips  $146     $155      $7.97         $8.82
  COP.N                                           
 Canadian        C$49     C$52      C$3           C$3.95
 Natural                                          
 Resources                                        
  CNQ.TO                                          
 Chevron         $173     $185      $10.99        $11.92
  CVX.N                                           
 EOG Resources   $148     $157      $11.84        $12.67
  EOG.N                                           
 ExxonMobil      $140     $148      $8.08         $8.74
  XOM.N                                           
 Marathon Oil    $27      $28       $2.33         $2.80
  MRO.N                                           
 Occidental      $53      $65       $2.96         $3.91
 Petroleum                                        
  OXY.N                                           
 Suncor Energy   C$55     C$62      C$4.66        C$5.11
  SU.TO                                           
 Marathon        $200     $210      $9.98         $12.21
 Petroleum                                        
  MPC.N                                           
 Phillips 66     $139     $141      $7.30         $8.95
  PSX.N                                           
 Valero Energy   $176     $189      $10.53        $12.65
  VLO.N                                           
    
 
 


 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com))