Due to concerns continuing to mount about BP's (NYSE:BP) future, there is added pressure on oil and gas stocks by the New York stock oil futures. These losses came after BP announced that it has to date spent $2.35 billion. This money has went to various things including the oil cleanup efforts, legal claims that have been paid, and grants to the states on the Gulf that have seen the biggest impact since the April 20th rig disaster.
The other thing that is causing renewed concern and placing pressure on BP stocks, is the pending development of a tropical storm. If this storm hits the Gulf of Mexico as predicted, it will cause possible large delays in the fuel containment efforts. Broker Nomura cut it projected BP price target from 593p to 465p.
Nomura said, "a heavy inversion of both credit yield and equity volatility suggests the market is concerned about a near term credit event around BP." BP stock fell to $26.96 a share losing another 6.1 percent. This beating their prior day low of $28.56, losing a total market value of almost 53 percent since April 20th.
"BP's market cap is eroding and its ability to finance itself in the capital market is impaired. It's anybodies guess what can happen but the fear of the market is that that liability could be so enormous that BP may have to seek bankruptcy protection," said Orr.
Showing posts with label Fuel Containment. Show all posts
Showing posts with label Fuel Containment. Show all posts
Friday, June 25, 2010
Wednesday, June 2, 2010
Halliburton's (NYSE:HAL) Stock Rises Today
Since April 20th, it's been a see-saw effect for Halliburton's (NYSE:HAL) shares. After seeing them plummet 14.8 percent at the close of the New York Stock Exchange yesterday at 4:00 PM, it left many investors doubting any turn around would happen.
Although this wasn't necessarily a surprise, this was the foreseen doom that would effect all oil stock prices if BP was unsuccessful at stopping the oil with their "top kill" fuel containment effort. Halliburton's role was the cementing of the well, among other things to do with the development of the blown out well.
On Wednesday, Halliburton's stock rises, increasing more than 12 percent. It's believed its due mainly to the story from the Dow Jones which reported that Halliburton believes that it will be fully indemnified from all expenses and claims resulting from the April 20th oil spill. Executives said they are confident that they will be exempt from any claims as a result of the spill. They say they have $600 million in general liability insurance.
This may be wishful thinking on Halliburton's part. Transocean is also trying to cap their liability. The Obama administration is challenging Transocean's attempts.
Although this wasn't necessarily a surprise, this was the foreseen doom that would effect all oil stock prices if BP was unsuccessful at stopping the oil with their "top kill" fuel containment effort. Halliburton's role was the cementing of the well, among other things to do with the development of the blown out well.
On Wednesday, Halliburton's stock rises, increasing more than 12 percent. It's believed its due mainly to the story from the Dow Jones which reported that Halliburton believes that it will be fully indemnified from all expenses and claims resulting from the April 20th oil spill. Executives said they are confident that they will be exempt from any claims as a result of the spill. They say they have $600 million in general liability insurance.
This may be wishful thinking on Halliburton's part. Transocean is also trying to cap their liability. The Obama administration is challenging Transocean's attempts.
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