General Electric remains mired in a cash crisis — caused in large part by a bad bet on fossil fuels.
Profit in GE’s (GE) power division crashed by 88% during the final three months of 2017, the embattled company said on Wednesday.
The steep decline was driven by slumping orders for giant turbines and generators used in coal and natural gas plants. GE also took a hit from a previously announced restructuring that will include 12,000 job cuts.
GE’s power problems were sparked by years of bad deal making, especially under former CEO Jeff Immelt. Rather than invest heavily in renewable energy, GE doubled down on fossil fuels in 2015 by acquiring Alstom’s power business, which makes coal-fueled turbines. GE has admitted that the $9.5 billion deal, its largest industrial deal ever, has suffered from the rise of solar and other renewable energy.
John Flannery, the new CEO, acknowledged in a statement that GE’s power division was “down significantly” last quarter and warned “we expect market challenges to continue.”
Hot Energy Stocks To Invest In Right Now: Yanzhou Coal Mining Company Limited(YZC)
- [By Lisa Levin]
Thursday afternoon, energy shares slipped by just 0.1 percent. Meanwhile, top gainers in the sector included Superior Energy Services, Inc. (NYSE: SPN), and Yanzhou Coal Mining Co Ltd (ADR) (NYSE: YZC).
Hot Energy Stocks To Invest In Right Now: Devon Energy Corporation(DVN)
- [By Matthew DiLallo]
While crude prices stumbled into 2016, they found their footing by mid-year and roared back to life, ending the year up about 42%. Those rising prices lifted most oil stocks. However, a handful of large-cap oil stocks rose above the crowd by outperforming crude’s rally. Those top-tier performers wereContinental Resources (NYSE:CLR), Devon Energy (NYSE:DVN), Anadarko Petroleum (NYSE:APC), Pioneer Natural Resources (NYSE:PXD), and Cimarex Energy (NYSE:XEC):
- [By Matthew DiLallo]
The failure of Russia and others to fulfill their obligations are coming at a time when U.S. shale production is starting to ramp back up. Shale producers such as Pioneer Natural Resources (NYSE:PXD) and Devon Energy (NYSE:DVN) have already released growth-focused budgets to capture the benefits of an improving oil market. In Pioneer Natural Resources’ case, it expects to spend $2.8 billion this year to operate 18 drilling rigs in the Permian Basin and restart its drilling program in the Eagle Ford. Those rigs should enable the company to drill enough wells to grow its production by 15% to 18% over last year’s average. Meanwhile, Devon Energy expects to spend between $2 billion to $2.3 billion on drilling this year, which should fuel 13% to 17% oil production growth by the fourth quarter versus last year’s final quarter.
- [By Paul Ausick]
Devon Energy Corp. (NYSE: DVN) is rated Hold and the price target was raised to $49. The 2017 EPS estimate was increased from $1.39 to $2.00, and the 2018 estimate increased from $3.06 to $3.83. Shares closed at $43.35 on Friday, in a 52-week range of $21.15 to $50.69. No consensus price target was available.
- [By Chris Lange]
The S&P 500 stock posting the largest daily percentage loss ahead of the close Wednesday was Devon Energy Corp. (NYSE: DVN) which traded down about 12% at $30.55. The stocks 52-week range is $28.79 to $45.16. Volume was about 30 million compared to the daily average volume of roughly 5 million.
- [By Craig Jones]
On CNBC's Fast Money Halftime Report, Jon Najarian said traders were buying calls in Devon Energy Corp (NYSE: DVN) in the first half of the trading session on Thursday.
Hot Energy Stocks To Invest In Right Now: Tobira Therapeutics, Inc.(TBRA)
- [By Benzinga News Desk]
Allergan (NYSE: AGN) acquired Akarna Therapeutics global rights to AKN-083 for up-front payment of $50 million. This came just hours after Allergan bought Tobira Therapeutics (NASDAQ: TBRA) for upfront Payment of $28.35 share in cash, up to $49.84 per share in CVRs.