Oil and Gas Short Interest Looking for Payoff This Week

Energy

Published: January 28, 2014 11:10 am

Last Updated: April 28, 2020 3:03 am

Short interest in several large oil and gas stocks rose in the two-week period to January 15, likely as a result of expected pressure on crude oil prices, refining margins and drilling demand. Investors’ bets on fourth-quarter results appear to be in place, with four of the six companies we looked at reporting this week.

Chevron Corp. (NYSE: CVX) saw short interest rise 2% to 13.87 million shares. About 0.7% of Chevron’s float is now short. Chevron reports fourth-quarter results on Friday and is expected to post earnings per share (EPS) of $2.57 on revenues of $63.14 billion. The EPS estimate is substantially lower than the $3.57 the company posted in the fourth quarter of 2012, even though revenues are more than $2.5 billion higher.

Short interest in Exxon Mobil Corp. (NYSE: XOM) saw short interest rise 1.7% to 56.99 million shares, about 1.3% of the company’s float. Exxon is expected to report fourth-quarter EPS of $1.92 on revenues of $113.99 billion on Thursday. Both the EPS and revenue estimates are lower than the year-ago fourth quarter.

Valero Energy Corp. (NYSE: VLO) posted a jump of 6.3% in short interest to a total of 12.6 million shares. Short interest comprises about 2.3% of Valero’s float. The company is scheduled to release fourth-quarter results Wednesday, and analysts are expecting EPS of $1.51 on revenues of $30.85. As with the two large integrated companies, Valero’s earnings and revenues are seen lower than a year ago.

Short interest in Chesapeake Energy Corp. (NYSE: CHK) rose 0.9% to 53.8 million shares, which represents about 9.4% of the total float. Chesapeake is not scheduled to report results until mid-February. Analysts estimate EPS at $0.42, down from $0.53 a year ago, and revenues at $4.71 billion, up about 33% from the year-ago revenue of $3.54 billion.

Oilfield services giant Schlumberger Ltd. (NYSE: SLB) saw short interest rise 12.5% to 14 million shares, about 1% of Schlumberger’s float. The largest oilfield services company reported fourth-quarter results last week and posted higher EPS and revenues than it did a year ago.

National Oilwell Varco Inc. (NYSE: NOV) had a jump of 35.8% in short interest to 8.21 million shares, or about 1.9% of the company’s float. It is scheduled to report results on Friday, and analysts are estimating EPS at $1.39 on revenues of $5.86 billion. The revenue estimate is higher than last year’s fourth-quarter actual of $5.68 billion, but the EPS estimate is below last year’s total of $1.44.

In 20 Years, I Haven’t Seen A Cash Back Card This Good

After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.

A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.

Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.