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Exxon Mobil Corporation (XOM)

  • Tue, Oct. 13, 2:34 PM
    • Exxon Mobil (XOM +0.1%) and Chevron (CVX -0.2%) could come close to achieving positive free cash flow by 2017, Wells Fargo analysts say, as they raise their earnings expectations for the 2015-17 period for the two energy majors.
    • The firm sees cash outflows outstripping cash inflows for both companies through 2016, with CVX in a positive free cash flow position in 2017 and XOM in a slight negative free cash flow position in 2017.
    • The firm rates CVX at Outperform with a valuation range of $82-$89 by on 15x estimated 2017 EPS of $5.64, and XOM at Market Perform with a $86-$93 valuation based on 17x its 2017 EPS estimate of $5.20.
    | Tue, Oct. 13, 2:34 PM | 15 Comments
  • Mon, Oct. 12, 11:25 AM
    • Western oil executives are warning Nigeria against major changes to commercial contracts that could lead to the government taking a bigger share of revenues from the country’s deepwater fields, FT reports.
    • The decision - which the government says will affect Royal Dutch Shell (RDS.A, RDS.B), Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM), Eni (NYSE:E) and others "in the weeks and months ahead” - has sparked concern among execs who say they know nothing of the details are have not been contacted.
    • Western companies would be almost certain to resist changes to the terms of existing agreements, many of which date back to the 1990s, while the development of eight planned deepwater projects due by 2020 that would contribute 1M bbl/day of output could be delayed or terminated as companies cut capital investment.
    | Mon, Oct. 12, 11:25 AM | 9 Comments
  • Mon, Oct. 12, 7:52 AM
    • Exxon Mobil (NYSE:XOM) is upgraded to Equal Weight from Underweight with a $85 price target, raised from $80, at Barclays, citing the company's relative dividend yield.
    • However, the firm says it still prefers ConocoPhillips (NYSE:COP) and Suncor (NYSE:SU) over XOM among oil majors.
    • XOM +0.8% premarket.
    | Mon, Oct. 12, 7:52 AM | 8 Comments
  • Fri, Oct. 9, 9:45 AM
    • Malaysian state-run energy company Petronas renews its pledge to move ahead with its planned C$36B liquefied natural gas shipping export project on Canada’s Pacific coast, despite the current market volatility for oil and gas.
    • Petronas holds a 62% interest in the Pacific Northwest LNG project, with several partners including China's Sinopec (NYSE:SNP).
    • Analysts are skeptical of Canada’s ability to deliver LNG export projects this decade, as the global market is entering a period of oversupply and demand is slowing in Asia just as the oil slump has taken down prices for LNG.
    • The Petronas export terminal is among ~20 projects under consideration in British Columbia - which include stakes by the likes of Shell (RDS.A, RDS.B), Chevron (NYSE:CVX) and Exxon (NYSE:XOM) - and none have started construction.
    | Fri, Oct. 9, 9:45 AM | 14 Comments
  • Wed, Oct. 7, 3:15 PM
    • Total (NYSE:TOT) CEO Patrick Pouyanne calls on the oil industry to be more proactive about finding solutions to reduce greenhouse gas emissions or risk being at the mercy of policy makers.
    • The comments come a week ahead of a conference next week in Paris to discuss climate change initiatives such as carbon pricing; Pouyanne will join CEOs of seven other energy companies, including Shell (RDS.A, RDS.B), BP, BG Group (OTCQX:BRGXF, OTCQX:BRGYY), Repsol (OTCQX:REPYF, OTCQX:REPYY), Eni (NYSE:E) and state-run firms from Saudi Arabia and Mexico.
    • Exxon (NYSE:XOM) CEO Rex Tillerson, who says innovation encouraged by free markets and competition is the best way to tackle climate change, will not be attending next week's confab.
    • Also not attending is Glencore (OTCPK:GLCNF, OTCPK:GLNCY) head of global coal assets Peter Freyberg, who points out the need for global policy that acknowledges the "global energy reality" that fossil fuels including coal will continue to be used and that "addresses the funding gap to facilitate the build of high-efficiency, low emission power stations."
    | Wed, Oct. 7, 3:15 PM | 72 Comments
  • Tue, Oct. 6, 12:44 PM
    • Chevron (CVX +2.7%) could enjoy "a step forward" in its Q3 results vs. other oil majors such as Exxon Mobil (XOM +1.4%), ConocoPhillips (COP +2.9%) and Canadian Natural Resources (CNQ +4%) that are likely to muddle through another tough quarter for earnings, free cash flow and leverage creep, J.P. Morgan's Phil Gresh writes.
    • The analyst sees an opportunity for CVX to take a step forward with rebuilding investor confidence around the long-term cost reduction and dividend coverage story, although the real uplift will have to come with an on-time Gorgon startup, which is still slated for Q1 2016; he rates the stock as Overweight.
    • JPM has lowered its 2016-18 EPS estimates for natural gas prices in North America and Europe, which now show limited potential for recovery over the next few years and are considered most impactful for Neutral-rated XOM and CNQ and Underweight-rated COP.
    | Tue, Oct. 6, 12:44 PM | 13 Comments
  • Mon, Oct. 5, 7:45 PM
    • Suncor Energy's (NYSE:SU) C$4.3B hostile takeover bid for Canadian Oil Sands (OTCQX:COSWF) is "not a low-ball offer, it’s a no-ball offer,” according to billionaire Seymour Schulich, who owns 25M shares, or 5%, of the company and says he is not selling at the offer price.
    • Schulich says SU's proposal is worth less than half the replacement value of the Syncrude Canada joint venture, of which COSWF owns 37%, and that Imperial Oil (NYSEMKT:IMO) recently built the Kearl oil sands project at a cost of $13B, which produces lower-grade oil than the Syncrude project.
    • Analysts are split on whether the deal was a good one for COSWF shareholders; National Bank Financial's Kyle Preston calls the bid “a positive deal" and raises the possibility that IMO, along with parent company Exxon Mobil (NYSE:XOM), could launch a competing bid, but Barclays’ Paul Cheng, among others, does not believe IMO will make a bid.
    • Earlier: Reuters: Canadian Oil Sands to reject Suncor bid, unlikely to engage
    | Mon, Oct. 5, 7:45 PM | 49 Comments
  • Mon, Oct. 5, 11:23 AM
    • Royal Dutch Shell (RDS.A, RDS.B) says it has started the third phase of its Bonga field off Nigeria's coast, as it pushes ahead with projects close to production.
    • Bonga phase 3 has a peak production capacity of ~50K boe, while the floating production and storage facility serving the third phase has a capacity of more than 200K bbl/day of oil and 150M cf/day of natural gas.
    • Shell operates and holds a 55% stake in Bonga, Exxon Mobil (NYSE:XOM) owns 20%, and units of Total (NYSE:TOT) and Eni (NYSE:E) each own 12.5%.
    | Mon, Oct. 5, 11:23 AM | Comment!
  • Mon, Oct. 5, 10:32 AM
    • The energy sector is an early leader in today's trading even after Standard & Poor's issued negative outlooks for Exxon Mobil (XOM +0.3%) and Chevron (CVX +1.9%) after Friday's close, citing high debt levels and low energy prices.
    • XOM "has substantially more debt than during the last cyclical commodity price trough in 2009, while upstream production and costs are at similar levels,” S&P said, adding that “a sustained period of lower oil and gas prices will significantly reduce the company’s operating cash flow in 2015 and 2016 from 2014 levels, resulting in rising debt balances as the company sustains its capital investments and dividends.”
    • The ratings agency anticipates CVX "will outspend internally generated cash flow to fund major project capital spending and dividends."
    • While S&P stopped short of credit downgrades - it held CVX’s long-term credit rating at AA and XOM’s at AAA - it did downgrade 12 others: CHK, WLL, UPL, DNR, LINE, BBG, LGCY, TPLM, ARP, CWEI, MPO, EXXI.
    • Outlooks also were lowered for NOG and EVEP.
    • Ratings were affirmed for COP, WPX, WTI and CRK.
    | Mon, Oct. 5, 10:32 AM | 39 Comments
  • Thu, Oct. 1, 4:57 PM
    • Exxon Mobil (NYSE:XOM) is fined $2.63M by the U.S. Pipeline and Hazardous Materials Safety Administration for spilling crude oil in an Arkansas residential area in 2013.
    • The Pegasus pipeline spilled ~5K barrels of oil in a residential neighborhood near Mayflower, Ark., and the agency tells XOM in a letter that when the civil penalty is paid and terms of a compliance order are completed, the enforcement matter will be closed.
    | Thu, Oct. 1, 4:57 PM | 10 Comments
  • Thu, Oct. 1, 12:58 PM
    • Alaska's government reaches a tentative agreement with the North Slope’s three major producers - Exxon Mobil (XOM -1.1%), ConocoPhillips (COP -0.3%) and BP (BP +0.9%) - over payments for impacts on communities during the construction of a proposed major gas project and property taxes once gas starts to flow.
    • The deal calls for $800M in payments for impacts occurring during construction, with an expected payout over five years, which could include additional police, teachers and wage inflation; the agreement also has a targeted amount of $15.7B for a flow-related property tax paid out over 25 years.
    • An XOM spokesperson says the tentative agreement is an important step toward advancing the project.
    • Gov. Walker has called a special session for late October to consider buying out TransCanada’s (TRP +0.2%) position in the project, as well as a reserve tax on undeveloped North Slope gas; no decision has been made yet on whether to build the project, which oil-dependent Alaska sees as critical to its economic future.
    | Thu, Oct. 1, 12:58 PM | 19 Comments
  • Wed, Sep. 30, 4:45 PM
    • PBF Energy (NYSE:PBF+8% AH after agreeing to acquire the 155K bbl/day Torrance, Calif., refinery and related logistics assets from Exxon Mobil (NYSE:XOM) for $537M.
    • The refinery has been shut down since an explosion in February injured four contractors and caused heavy damage, leading to a shortage of gasoline and higher prices at the pump for drivers in California.
    • The Torrance refinery provides 10% of the state’s capacity and 20% of the capacity in Southern California, and the explosion forced XOM to cut production to less than 20%, causing the spike in gas prices.
    • PBF says the refinery will be restored to full working order prior to close, and expects the deal to be immediately accretive to earnings.
    • Coupled with its previously announced Chalmette acquisition, PBF says it will have increased its refining capacity by more than 60% to ~900K bbl/day and added meaningful Gulf coast and west coast assets to its refining system.
    | Wed, Sep. 30, 4:45 PM | 13 Comments
  • Mon, Sep. 28, 7:19 PM
    • Alaska wants to pivot towards liquefied natural gas as oil production slowly declines, and is trying to tackle a massive natural gas pipeline and LNG project that is stuck on the drawing board, but Exxon Mobil (NYSE:XOM) CEO Rex Tillerson says the state has been its "own worst enemy" in handling the project.
    • "Every governor that comes in decides they’ve got a different way of doing this, which is why it never happens," Tillerson says. "You can’t take a project that is going to take 5, 6, 7 years to execute and require $50B-$60B of capital and decide every two years you’ve got a different way to do it."
    • Alaska's Gov. Walker, soon after he was elected last year, first proposed a competing project to the one currently under consideration; after abandoning that idea, he wants the state to pick up TransCanada’s (NYSE:TRP) stake and finance it with state resources, an option that apparently does not sit well with Tillerson.
    • With a large and growing budget deficit, the project "has gone from a wish-list item to a must-have,” says Walker, who has summoned a special session of the legislature to begin Oct. 24; the state's serious fiscal woes will put pressure on lawmakers when they meet to discuss the project.
    • BP and ConocoPhillips {COP} also are partners in the project.
    | Mon, Sep. 28, 7:19 PM | 9 Comments
  • Mon, Sep. 28, 9:58 AM
    • Venezuela and Guyana agree to restore their respective ambassadors, in a first step toward easing tensions that flared after Exxon Mobil's (XOM -0.2%) recent discovery of oil off the coast of a disputed territory.
    • Venezuela withdrew its ambassador to Guyana in July after demanding a halt to exploration by XOM off the disputed region, and later halted accreditation for Guyana's ambassador to Venezuela.
    • XOM in May said it found oil in the Stabroek block under a license granted by Guyana's government but has stayed silent on the dispute.
    | Mon, Sep. 28, 9:58 AM | Comment!
  • Thu, Sep. 24, 7:15 PM
    • North Dakota regulators approve an industry-backed proposal to delay further cuts to associated gas flaring by 10 months while also easing more long-range flaring reduction targets.
    • Gov. Dalrymple and the two other members of the North Dakota Industrial Commission voted to change the date when companies must capture 85% of natural gas produced from their wells to Nov. 1, 2016.
    • The regulators agreed with industry arguments that the delays and revisions were needed because of the lack of new gas capture and pipeline infrastructure, which have been delayed for a variety of reasons, including low oil and gas prices, right-of-way disputes and pad size limitations.
    • Top North Dakota producers include CLR, HES, EOG, WLL, XOM, OAS, NOG, EOX, MRO
    | Thu, Sep. 24, 7:15 PM | 42 Comments
  • Thu, Sep. 24, 6:41 PM
    • Cowen analyst Sam Margolin worries about Exxon Mobil’s (NYSE:XOM) exposure to oil sands through its 70%-owned Canadian subsidiary Imperial Oil (NYSEMKT:IMO), with bitumen accounting for 19% of IMO's reserves, but he still sees option value in the oil sands business, providing leverage to a long-term price recovery.
    • Given XOM's overall defensive characteristics of the production profile and its cash flow balance, Margolin says he does not see challenged Canadian oil sands economics as single-handedly destructive to the business.
    • XOM's "overall narrower bridge to [cash flow] neutrality... establishes it as a quality defensive play in a lower commodity price environment," Margolin writes as he reiterates his Outperform rating and $92 price target on the stock.
    | Thu, Sep. 24, 6:41 PM | 4 Comments
Company Description
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.