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Tumbling Gas Prices Not Just Good News for Motorists

September 03, 2014 | About:
David Goodloe

David Goodloe

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If you drive a car or truck, you’re sure to have noticed that falling gas prices have kept a little more of your money in your pocket each time you fill up lately. In fact, prices at the pump were lower for Labor Day 2014 than they have been on any Labor Day weekend since 2010, according to the Energy Department's Energy Information Administration.

But those falling gas prices could be good news for would-be investors, too.

Shares of Chevron (CVX) have slipped 1.6%. BP (BP) is off 1.4%, ExxonMobil (XOM) has fallen 1.3%, Total (TOT) has declined 1%, and Shell (RDS.A) has dropped 0.9%.

ExxonMobil agreed Tuesday to pay $1.4 million for an alleged violation of the Clean Water Act in an oil spill in Louisiana in 2012. What that may or may not do to ExxonMobil’s stock prices remains is unclear.

ExxonMobil’s current stock price is just below $100 a share. Its debt-to-equity ratio is 0.2.

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Chevron, which confirmed this week that it has finalized the sale of its renewable-energy subsidiary, Chevron Energy Solutions, to OpTerra Energy Services, currently sells for $127.80 per share. Its debt-to-equity ratio is 0.1.

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BP is still dealing with the fallout from the 2011 oil spill in the Gulf of Mexico. This week the company asked a district court in Houston to fire the court-appointed lawyer assigned to pay compensation to people affected by the spill. BP claimed he wasn’t neutral.

BP’s stock presently sells for $47.72 a share. It has a debt-to-equity ratio of 0.4

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The stock values of Total and Shell have dropped the least; consequently, they will have the least ground to make up when the market turns around and may be in a better position to take advantage.

Total’s price has been dropping since June, but shares still sell for more than they have since 2008.

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Total’s price-to-earnings ratios is 12.1.

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Shell’s stock price also has been dropping since June, but its shares also are selling for more than they have since 2008.

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Shell has a higher price-to-earnings ratio than Total at 15.6.

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Total’s debt-to-equity ratio is 0.5. Shell’s debt-to-equity is 0.2.

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About the author:

David Goodloe
I'm a journalist by training. I grew up in Arkansas and earned my B.A. at the University of Arkansas. I earned my master's degree at the University of North Texas. My background includes stints at newspapers in Arkansas and Texas and teaching news writing and news editing to students at the University of Oklahoma and Richland College here in Dallas. I'm the editorial manager at GuruFocus.

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