Seeking Alpha

Little hope for Exxon production increase, Barclays says

  • Exxon Mobil (XOM) shares have gained 8.2% during the past three months, whipping rivals Chevron (CVX) and ConocoPhillips (COP), but Barclays analysts think that sort of outperformance can't hold up.
  • The firm attributes XOM's strong showing to the Buffett effect, the stock’s safe haven status, and the expectation that production has finally bottomed with Q3 marking the inflection point towards higher growth; but due to the recently expired ADCO license in Abu Dhabi and the Dutch government’s decision last week to cut Groningen gas production due to tremor concerns, 2014 likely will result in yet another year of negative production growth.
  • As a result, the firm cuts its 2014 EPS forecast to $7.20 from $7.40 but still expect XOM to beat Q4 consensus forecasts of $1.92 by $0.04.
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Comments (6)
  • Bob Carl
    , contributor
    Comments (261) | Send Message
     
    I have confidence that XOM will be increasing production regardless of these setbacks. I remain a buyer.
    27 Jan 2014, 08:20 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (3125) | Send Message
     
    Production reduction was always an issue and Buffett's buy simply masked it.

     

    COP,BP.and CVX are all the better companies with much better shareholder friendly management and dividends than xom.
    27 Jan 2014, 08:27 PM Reply Like
  • SteveTheHawk
    , contributor
    Comments (1853) | Send Message
     
    XOM is about 4% of our div portfolio. I think the price is edging close to fair value. It will hit my watch list if it goes below $94. I'm hoping to grab some more between $90 and $92.
    27 Jan 2014, 08:30 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (3125) | Send Message
     
    I'd wait for the $80's if I wanted it.
    Good luck.
    27 Jan 2014, 08:33 PM Reply Like
  • HDPElabtech
    , contributor
    Comments (3) | Send Message
     
    My portfolio is 100% XOM and I am a dollar cost average buyer.
    28 Jan 2014, 06:12 PM Reply Like
  • HDPElabtech
    , contributor
    Comments (3) | Send Message
     
    I buy at any price.
    28 Jan 2014, 06:12 PM Reply Like
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