After soaring to its biggest three-day gain since 1990, crude oil (WTI) is higher by 7.12% to $48.45 per barrel this afternoon, and Brent crude is up by 6.45% to $53.28 per barrel, according to the CNBC.com index.
The Energy Information Administration reported today that U.S. oil production for the first five months of this year was lower than its previous estimates by between 40,000 and 130,000 barrels per day per month, based on new survey methodology, The Wall Street Journal reports.
The updated numbers were released amid a global oversupply of oil that has been negatively impacting the price of the commodity, with the Organization of the Petroleum Exporting Countries estimating an oversupply greater than 2 million barrels per day, according to Reuters.
Further, OPEC announced today its willingness to open a dialogue with other producers about the fall in oil prices. OPEC has so far refused to cut production despite low oil prices for fear of losing its market share, Reuters reports.
Separately, TheStreet Ratings team rates CONSOL ENERGY INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate CONSOL ENERGY INC (CNX) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 2319.6% when compared to the same quarter one year ago, falling from -$24.93 million to -$603.30 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CONSOL ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $65.85 million or 70.21% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 65.48%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 2300.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- CONSOL ENERGY INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CONSOL ENERGY INC increased its bottom line by earning $0.73 versus $0.35 in the prior year. For the next year, the market is expecting a contraction of 79.5% in earnings ($0.15 versus $0.73).
- You can view the full analysis from the report here: CNX Ratings Report