** 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 EPS est |
Previous 2024 EPS est |
APA Corp APA.O |
$27 |
$32 |
$3.88 |
$4.46 |
ConocoPhillips COP.N |
$146 |
$155 |
$7.97 |
$8.82 |
Canadian Natural Resources CNQ.TO |
C$49 |
C$52 |
C$3 |
C$3.95 |
Chevron CVX.N |
$173 |
$185 |
$10.99 |
$11.92 |
EOG Resources EOG.N |
$148 |
$157 |
$11.84 |
$12.67 |
ExxonMobil XOM.N |
$140 |
$148 |
$8.08 |
$8.74 |
Marathon Oil MRO.N |
$27 |
$28 |
$2.33 |
$2.80 |
Occidental Petroleum OXY.N |
$53 |
$65 |
$2.96 |
$3.91 |
Suncor Energy SU.TO |
C$55 |
C$62 |
C$4.66 |
C$5.11 |
Marathon Petroleum MPC.N |
$200 |
$210 |
$9.98 |
$12.21 |
Phillips 66 PSX.N |
$139 |
$141 |
$7.30 |
$8.95 |
Valero Energy VLO.N |
$176 |
$189 |
$10.53 |
$12.65 |
(Reporting by Pooja Menon in Bengaluru)