There is no doubt the report of the oil commission that Halliburton's (NYSE:HAL) choice of cement used on the Macondo well of BP (NYSE:BP) was flawed is devastating to the company, and it showed in their credit-default swaps, which soared in price after the news was released.
Halliburton CDS contracts surged by 27.3 basis points to 87.2 at 4:30 PM EDT in New York, their highest level since June, according to CMA, which provided the data.
The National Commission on the BP Deepwater Horizon Oil Spill found that three of the four tests performed by Halliburton on the cement found it was unstable for use.
Only one test result appears to have reached BP's hands before the Deepwater Horizon disaster.
A credit-default swap pays the buyer face value minus the value of the defaulted debt.
This will no doubt be a huge weight on the share price and liability of Halliburton going forward, as the same uncertainty which has surrounded BP will be, albeit probably to a lesser degree, on Halliburton as well.
Shares of Halliburton were punished Thursday, plummeting to $31.68, dropping $2.74, or 7.96 percent. After hours they were continuing to drop.
Showing posts with label Oil Shares. Show all posts
Showing posts with label Oil Shares. Show all posts
Friday, October 29, 2010
Tuesday, July 20, 2010
BP (NYSE:BP) Oil Shares Plummet in Trading
Beginning the session in the negative column, oil shares started moving up as the energy sector gained strength from Weatherford's comments and higher crude oil prices but BP (NYSE:BP) plummeted. Oil rose 1 percent or 75 cents to $77.65 a barrel, while early in the morning it was trading down 1 percent reaching a low for the day of $76.05.
The New York Stock Exchange Arca Natural Gas Index gained 0.3 percent to 501. While The Dow Jones Industrial Average dipped 87 points or almost 0.9 percent. The NYSE Arca Oil Index declined 0.3 percent to 940. The Philadelphia Oil Service Index saw an increase of 1.5 percent to $178.34.
Exxon Mobil was down 0.5 percent to $58.13 and Chevron by 0.6 percent to $71.54. While BP shares took a nose dive to $34.87 losing 2.5 percent. The pressure in BP's well continues to slowly rise, it has now reached 6,825. They have not re-started drilling the relief well and are currently going over all possible options.
The New York Stock Exchange Arca Natural Gas Index gained 0.3 percent to 501. While The Dow Jones Industrial Average dipped 87 points or almost 0.9 percent. The NYSE Arca Oil Index declined 0.3 percent to 940. The Philadelphia Oil Service Index saw an increase of 1.5 percent to $178.34.
Exxon Mobil was down 0.5 percent to $58.13 and Chevron by 0.6 percent to $71.54. While BP shares took a nose dive to $34.87 losing 2.5 percent. The pressure in BP's well continues to slowly rise, it has now reached 6,825. They have not re-started drilling the relief well and are currently going over all possible options.
Thursday, June 10, 2010
Crude Oil Futures Trading: Anadarko (NYSE:APC), Transocean (NYSE:RIG), Halliburton (NYSE:HAL), Cameron (NYSE:CAM), BP (NYSE:BP)
After seeing oil shares drop so sharply yesterday, todays crude oil futures trading prices have seen an increase in not only BP (NYSE:BP), but also Anadarko (NYSE:APC),
Transocean (NYSE:RIG), Halliburton (NYSE:HAL), and Cameron (NYSE:CAM). This extreme drop, which was BP's lowest since at least 1972, was said to be caused by the fear of the impending financial doom of the full scale of BP's fuel spill and the possibility of BP filing bankruptcy.
Today, investors were buying as quickly as they were selling yesterday. This gave BP a boost as well as oil stock prices across the board. Raymond James analyst Alex Morris said, "there was a lot of fear in the market yesterday, people maybe have slept on it and are getting a little less scared of the stock. People might just be thinking that yesterdays sell off was overblown and premature."
BP climbed almost 8 percent to $31.50, reaching the high of the day at $33.04.
Anadarko Petroleum rose 8.6 percent to $37.84, this was also after a huge loss on Wednesday of 19 percent. Anadarko is a minority share holder in the Macondo well.
Transocean was up to 4.5 percent to $44.52, there loss yesterday was 8.1 percent.
Halliburton dropped only 2 percent on Wednesday, but today saw a 5 percent rise to $23.72. Cameron was up 4.4 percent to $35.62.
Transocean (NYSE:RIG), Halliburton (NYSE:HAL), and Cameron (NYSE:CAM). This extreme drop, which was BP's lowest since at least 1972, was said to be caused by the fear of the impending financial doom of the full scale of BP's fuel spill and the possibility of BP filing bankruptcy.
Today, investors were buying as quickly as they were selling yesterday. This gave BP a boost as well as oil stock prices across the board. Raymond James analyst Alex Morris said, "there was a lot of fear in the market yesterday, people maybe have slept on it and are getting a little less scared of the stock. People might just be thinking that yesterdays sell off was overblown and premature."
BP climbed almost 8 percent to $31.50, reaching the high of the day at $33.04.
Anadarko Petroleum rose 8.6 percent to $37.84, this was also after a huge loss on Wednesday of 19 percent. Anadarko is a minority share holder in the Macondo well.
Transocean was up to 4.5 percent to $44.52, there loss yesterday was 8.1 percent.
Halliburton dropped only 2 percent on Wednesday, but today saw a 5 percent rise to $23.72. Cameron was up 4.4 percent to $35.62.
Thursday, June 3, 2010
Stocks Rise: Exxon (NYSE:XOM), Chevron (NYSE:CVX), BP (NYSE:BP), Anadarko (NYSE:APC) All Up
Energy stocks saw a jump today, including Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), BP (NYSE:BP), and Anadarko (NYSE:APC). Exxon rose 1.7 percent on Thursday, causing the Dow Jones Industrial Average to rise 52 points.
Chevron rose 1.5 percent. Also providing a rise is crude oil futures with the July front running contract up to $73.23, a 37 cent increase.
BP, who has lost a total market value of $68 million saw an increase. BP went to $38.33, gaining 1.8 percent. This gain could be because of BP's success in fully cutting the pipe. Now they can proceed with trying to put the cap on it. Although, it is not a clean cut which is looking like it will cause problems, potentially making the cap not fit snug. If this is the case oil would still be leaking and a secondary cap would have to be put over top of the first one.
BP is planning on funding a project to put sand barriers around the wetlands in Louisiana, this will cost BP $360 million dollars. Even though this won't fully stop the oil, as there is already a considerable amount that is continuing to devastate Louisiana, the hope of this endeavor is to keep out the worst effects from the oil.
Finally, there is Anadarko who rose 1.2 percent to $44.89. They seem quite confident because they haven't changed their projection for 2010 on capital spending plans or their production outlook.
Chevron rose 1.5 percent. Also providing a rise is crude oil futures with the July front running contract up to $73.23, a 37 cent increase.
BP, who has lost a total market value of $68 million saw an increase. BP went to $38.33, gaining 1.8 percent. This gain could be because of BP's success in fully cutting the pipe. Now they can proceed with trying to put the cap on it. Although, it is not a clean cut which is looking like it will cause problems, potentially making the cap not fit snug. If this is the case oil would still be leaking and a secondary cap would have to be put over top of the first one.
BP is planning on funding a project to put sand barriers around the wetlands in Louisiana, this will cost BP $360 million dollars. Even though this won't fully stop the oil, as there is already a considerable amount that is continuing to devastate Louisiana, the hope of this endeavor is to keep out the worst effects from the oil.
Finally, there is Anadarko who rose 1.2 percent to $44.89. They seem quite confident because they haven't changed their projection for 2010 on capital spending plans or their production outlook.
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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