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Wed, Feb. 3, 12:28 PM
- Perhaps just as noteworthy as the 10 U.S. oil companies downgraded by Standard & Poor's is the company it did not downgrade but put on credit watch: Exxon Mobil (XOM +2.2%).
- XOM is one of three U.S. companies with S&P’s highest AAA rating - which it has held since 1930 - but the ratings agency placed XOM on credit watch with negative implications because its credit measures probably will remain weak through 2018.
- S&P says it will decide whether to downgrade XOM within 90 days; it if chooses to make a cut, it probably would be only by a single notch.
- Earlier: S&P cuts ratings of 10 U.S. oil companies
Tue, Feb. 2, 9:26 AM
- Exxon Mobil (NYSE:XOM) -1.9% premarket after posting a Q4 earnings beat on larger than expected revenue, but this morning's decline in WTI crude oil prices below $31/bbl poses headwinds for the broader energy sector.
- XOM reports $2.78B in Q4 profit but that was 58% lower than the $6.57B in the year-ago quarter and the first time the company logged a quarterly profit below $3B since 2002.
- XOM says it will cut spending this year by ~25% to $23.2B, after reducing capex by 20% in 2015 to $31B, a bigger cut than the 12% cut forecast by management in March.
- Q4 U.S. upstream earnings fell by $2B from the year-ago quarter to a loss of $538M, non-U.S. upstream earnings fell $2.6B to $1.4B, and downstream earnings rose $854M to $1.4B.
- Q4 oil equivalent production rose 4.8% Y/Y, with liquids up 14% and natural gas down 5.6%.
- XOM also says it is halting share buybacks during the current quarter after spending $500M on them during Q4.
Tue, Feb. 2, 9:00 AM| Tue, Feb. 2, 9:00 AM
- January monthly performance was: -3.31%
- 52-week performance vs. the S&P 500 is: -2%
- $0.10 in dividends were paid in January
- Top 10 Holdings as of 12/31/2015: Exxon Mobil Corporation (XOM): 3.35%, AT&T Inc (T): 3.15%, Microsoft Corp (MSFT): 3.11%, Apple Inc (AAPL): 2.84%, Verizon Communications Inc (VZ): 2.5%, General Electric Co (GE): 2.36%, Johnson & Johnson (JNJ): 2.21%, Chevron Corp (CVX): 2.2%, Wells Fargo & Co (WFC): 2.06%, Procter & Gamble Co (PG): 1.93%
Tue, Feb. 2, 8:02 AM
Mon, Feb. 1, 5:30 PM
Mon, Feb. 1, 4:49 PM
- Exxon Mobil (NYSE:XOM) gains approval from Santa Barbara County, Calif., officials for its plan to use trucks to move 17M-plus gallons of oil stranded in storage tanks after a California pipeline break in May.
- The county says moving the oil from the tanks would decrease the potential risks posed by long-term storage, since the pipeline is expected to be inoperable for a prolonged period; critics say the county's ruling puts people and the environment at risk of "fiery accidents or another devastating oil spill."
- Eight months ago, the ruptured pipeline created the largest coastal oil spill in California in 25 years, fouling beaches near Santa Barbara and spreading goo as far as 100 miles.
Mon, Feb. 1, 3:15 PM
- Alberta's government says it will provide up to C$500M (US$357M) in subsidies to support new petrochemical plants, part of a plan to help diversify the province’s economy by creating higher value products from its resources.
- The subsidies are designed to attract two or three new petrochemical projects, each of which would be eligible for up to C$200M in credits for purchasing ethane or propane; the credits would be provided only once a facility is built and starts operating to reduce the financial risk to the province.
- The program follows Alberta’s review of oil and gas royalty charges, which was unveiled Friday and said there was an opportunity to encourage more petrochemical processing in the province.
- Relevant tickers: SU, CVE, OTCPK:HUSKF, OTCQX:COSWF, RDS.A, RDS.B, IMO, XOM, CNQ, ENB, TRP, PDS, OTCPK:MEGEF
Fri, Jan. 29, 2:15 PM
- Alberta's new government unveils its new oil and gas royalty framework that left rates unchanged on existing oil wells and oil sands projects, easing fears that it could lead to higher costs and job losses at a time when Canada's energy heartland is already staggering from collapsing oil prices.
- The highly anticipated royalty review keeps the current commodity price-based system, but will levy rates once the cost of a well has been recouped based on industry averages for drilling costs in Alberta, will apply only to new wells from 2017 onward; existing royalty rates will remain in place for 10 years on wells drilled before 2017.
- Relevant tickers: SU, CVE, OTCPK:HUSKF, OTCQX:COSWF, RDS.A, RDS.B, IMO, XOM, CNQ, ENB, TRP, PDS, OTCPK:MEGEF
Wed, Jan. 27, 6:43 PM
- Exxon Mobil (NYSE:XOM) is "starting to look relatively expensive," driven by its relative safety stock status, one of several energy stock thoughts J.P. Morgan analyst Phil Gresh expresses after updating his models for lower oil prices.
- Gresh also thinks ConocoPhillips (NYSE:COP) still looks a bit expensive, though less so than before the stock's recent underperformance, with the main near-term risk remaining the duration of the low price environment and related balance sheet and dividend considerations.
- Chevron (NYSE:CVX) and Occidental Petroleum (NYSE:OXY) still have above average total return potential, and Canadian Natural Resources (NYSE:CNQ) is beginning to look relatively interesting if it can manage through the current period of low prices and high committed capex, Gresh says.
Wed, Jan. 27, 3:05 PM
Tue, Jan. 26, 2:55 PM
- Renewable Energy (REGI +1.7%) is higher after announcing an agreement with Exxon Mobil (NYSE:XOM) to study the production of biodiesel by fermenting renewable cellulosic sugars from sources such as agricultural waste.
- Through the research, the two companies say they will address the challenge of how to ferment real-world renewable cellulosic sugars, which contain multiple types of sugars, including glucose and xylose, but also impurities that can inhibit fermentation.
- REGI has developed a patented technology that uses microbes to convert sugars to biodiesel in a one-step fermentation process similar to ethanol manufacturing.
Tue, Jan. 26, 2:48 PM
- Exxon Mobil (XOM +2.7%) is downgraded to Sell from Hold with a $55 price target at Tudor Pickering, which says XOM should not continue to trade at a significant premium to its integrated peers with better risk adjusted dividend yields available elsewhere.
- XOM "no longer has the stand-out balance sheet," the firm says, as it "struggle(s) to see where its medium to long-term growth comes from given the majority of its pre-final investment decision projects are challenged in our view, [and] our forecast of its 2016 E&P spending is the lowest amongst integrated peers (~$16/boe), leaving less room to cut."
Mon, Jan. 25, 6:49 PM
- Investment in Canada’s oil and gas industry is forecast to fall again this year, as the price of the heavy crude produced from Alberta's oil sands has fallen so low that some companies are losing money on every barrel they sell, and are looking at ways to cut production.
- The Canadian Association of Petroleum Producers predicts the industry will invest C$42B in 2016, 13% less than in 2015 and 48% less than in 2014 - a steeper decline than investment in oil and gas production worldwide, which is expected to drop by 40% during 2014-16, according to Wood Mackenzie.
- On top of plummeting prices, Alberta's new left-leaning government plans to cap carbon emissions from the oil sands, a move that threatens to strand billions of barrels of crude; companies including Exxon (NYSE:XOM), BP, Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP), Shell (RDS.A, RDS.B), Marathon Oil (NYSE:MRO), Total (NYSE:TOT), Statoil (NYSE:STO) and Cnooc (NYSE:CEO) have invested in Alberta megaprojects to tap the world's third largest oil reserves, smaller only than Saudi Arabia and Venezuela.
Mon, Jan. 25, 10:48 AM
- Energy demand will climb 25% worldwide by 2040, with crude oil demand growing by 20% to 112M bbl/day and retaining its dominant position among energy sources, Exxon Mobil (XOM -1.1%) says in its annual long-term energy outlook.
- Because of efforts to reduce greenhouse gases and efficiency gains, XOM sees energy-related carbon dioxide emissions peaking around 2030 before starting to drop, while emissions in developed countries are seen falling by ~20% from 2014 to 2040.
- XOM sees coal use for power generation declining to ~30% of the world's electricity in 2040, from 40% in 2014, while natural gas will pull even with coal, and wind and solar will provide more than 10%, up from ~4%.
- ETFs: XLE, VDE, ERX, OIH, ERY, DIG, DUG, BGR, IYE, IXC, FENY, IPW, FIF, PXJ, RYE, FXN, GNAT, SZC, DDG, FILL
Thu, Jan. 21, 3:49 PM
- Crude oil futures settled more than 4% higher on the back of perceived oversold conditions, despite a higher than expected inventory build; March WTI jumped 4.2% to settle at $29.53/bbl after trading as high as $30.25, while Brent surged 4.9% to $29.25.
- Crude prices were supported by the inventory increase in this morning's EIA report, which was less than the API’s report released on Wednesday, says Phil Flynn, senior market analyst at Price Futures Group; also, reports of Libyan oil tanks on fire eased speculation that Libya would be exporting more oil soon.
- Also supportive for prices, oil production in the lower 48 states edged lower for the first time in seven weeks, “which is at least ‘less bearish’ for the extremely oversupplied global oil market,” says Tyler Richey of The 7:00’s Report.
- The energy sector is bouncing after hitting a multiyear low yesterday: XOM +1.4%, CVX +2.7%, RDS.A +3.8%, BP +3.7%, TOT +2.3%, STO +4.5%, COP +6.2%, MRO +12.2%, APC +10.3%, OXY +2.1%, EOG +6.4%, PXD +2.7%, APA +8.2%, HES +7%, KMI +15.5%, EPD +3.3%, ETP +6.8%.
- ETFs: UNG, USO, OIL, XLE, UGAZ, UCO, DGAZ, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, BOIL, GAZ, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, KOLD, BGR, USL, XES, IYE, IEO, UNL, IEZ, DNO, FENY, PXE, PXI, FIF, PXJ, OLO, SZO, NDP, RYE, DCNG, FXN, OLEM, DDG
Wed, Jan. 20, 6:38 PM
- ConocoPhillips (NYSE:COP), ExxonMobil (NYSE:XOM), Marathon Oil (NYSE:MRO) and Occidental Petroleum (NYSE:OXY) are retained with Outperform ratings at Wells Fargo, which says the average upside potential for the four in its international E&P and integrated oil group is 38% at the top end of its valuation range and 25% at the lower end.
- From both a debt-adjusted cash flow and enterprise value/EBITDA standpoint, MRO and Market Perform-rated Chevron (NYSE:CVX) and Murphy Oil (NYSE:MUR) carry the most discounted valuations, the firm says.
- Among oil services stocks, the firm likes Halliburton (NYSE:HAL), RPC (NYSE:RES), Patterson-UTI Energy (NASDAQ:PTEN), U.S. Silica (NYSE:SLCA) and Nabors Industries (NYSE:NBR) to survive the downturn while maintaining the financial flexibility to thrive and take share in a North American recovery.
- Earlier: Wells Fargo's MLPs most likely to cut distributions: ETE, ETP, WMB, WPZ, AMID, APLP, CCLP, CEQP (Jan. 15)
Exxon Mobil Corporation is engaged in energy, involving exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products.
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