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ExxonMobil (XOM -1%) shares remain under pressure after reporting a drop in production volumes...

ExxonMobil (XOM -1%) shares remain under pressure after reporting a drop in production volumes over the past year. XOM will need to continue to replace older oil fields with new ones, but that's easier said than done, and only time will tell if the assets can be developed into lucrative production centers. For now, Brian Stutland thinks it makes sense to hedge some of the downside risk in the stock.
Comments (5)
  • rjj1960
    , contributor
    Comments (1370) | Send Message
     
    XOM needs to stop the silly share buy back and spend the money on acquisitions. WLL,KOG,OAS come to mind.
    4 Feb 2013, 12:05 PM Reply Like
  • pemdas1
    , contributor
    Comments (210) | Send Message
     
    Share buy back is good in my opinion. Much more important than the production volume is the production volume per share. If you don't like buy backs, there are plenty of CHKs out there.
    4 Feb 2013, 12:16 PM Reply Like
  • Phenom527
    , contributor
    Comments (6) | Send Message
     
    Folks, we bought XOM because they are a good capital allocator and historically return cash to shareholders over time. Why not trust management to do what they do best, i.e., allocate capital?!!

     

    Besides, as long as ROCE stays as high as it is, I really don't care if production volumes are lower. Emphasis on today's production volume is misplaced. If one of their products, e.g., nattie gas, is down in price, I want a strong company like XOM which can curtail production and cut operating costs until the product goes up again. What I ultimately want is increasing value, whether the market sees it or not, and an increasing dividend, which will occur if the per share numbers keep rising.
    4 Feb 2013, 12:33 PM Reply Like
  • Uncle Pie
    , contributor
    Comments (3481) | Send Message
     
    Exxon's 80% owned $12.9 Billion Kearl oil sands project is just coming on line; at the outset it will produce 110,000 bbls/day, and eventually it will produce about 350,000 bbls/day for THIRTY FIVE YEARS with No production decline and No exploration risk. Problem is, with no Keystone XL or other new pipeline, there just isn't any market for more oil coming out of Alberta right now. Seems the US would rather import its heavy oil from Hugo Chavez' Venezuela or from Mexico's Pemex. Go figure.

     

    Long IMO (fingers crossed)
    4 Feb 2013, 01:36 PM Reply Like
  • geologist
    , contributor
    Comments (368) | Send Message
     
    I do not think folks completely realize how much production Exxon cuts back due to NG prices. Exxon will, and has stopped the drilling of any and all discretionary gas wells. They will only drill gas wells to get at liquids associated with gas wells, or drill to maintain an acreage position. Thus low priced gas results in production cuts. It is a smart business decision.

     

    Now, if Exxon got permission to export NG via LNG they would be drilling gas wells ASAP. Regards
    4 Feb 2013, 01:38 PM Reply Like
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