Exxon Mobil CorporationNYSE
Exxon Mobil: It's All About Free Cash Flow
Richard Zeits • 86 Comments
Richard Zeits • 86 Comments
Exxon Mobil: Slow But Steady, Value Erosion Is Underway
Richard Zeits • 111 Comments
Richard Zeits • 111 Comments
Today, 2:57 PM
- BP has the highest exposure in the countries that have said they will cut oil production, Rystad Energy says, with the likely participation of Russia, where BP holds a 20% stake in Rosneft (OTC:RNFTF), puts it ahead of rivals Total (NYSE:TOT), Shell (RDS.A, RDS.B), ExxonMobil (NYSE:XOM), Eni (NYSE:E) and Chevron (NYSE:CVX).
- “If Russia should deliver on their production cut, we believe that the fields operated by Rosneft will be affected,” Rystad's Espen Erlingsen says. "Also in Iraq, the government will need to reduce production from the large Basra fields. Here the BP-operated Rumaila is a likely candidate for cuts.”
- BP has ~1.6M bbl/day of production in the affected countries, with Russia accounting for roughly half the total, according to the Rystad analysis; Total has ~700K bbl/day of output in the countries, Shell has 586K bbl/day, followed by XOM with 563K, Eni with 497K, and CVX 194K.
Today, 12:48 PM
- Papua New Guinea's oil minister is playing down threats of disruptions to ExxonMobil's (XOM +0.1%) PNG LNG project due to landowners being unable to buy a stake in the project by the end of this year, and says the government could look at other options after year-end to help landowners if necessary.
- Under a 2009 agreement, local landowners had the option to buy a 4.27% equity stake in the project by June 2016 - a deadline that was extended to Dec. 31 - but the landowners have not been able to line up the $640M needed to pay; landowners reportedly were "threatening to create chaos" last week after a state-owned firm withdrew plans to provide finance for the stake purchase.
- "The risks are real. We know weapons have been amassed by landowners," a project officer tells Reuters, but the oil minister does not expect any disruption, saying "The project is very important to the country's economic standing. We can't discredit our standing when there is a way forward."
Today, 11:10 AM
- Exxon Mobil (XOM -0.6%) has pulled out of half of the six oil exploration blocks it operated in the Kurdistan region, according to the Iraq Oil Report.
- No reason was provided, but international oil companies have renounced 19 exploration blocks in Kurdistan since 2014; Chevron relinquished its interest in Kurdistan's Rovi block late last year but has continued to test wells in the Sarta area.
- XOM retains 80% operating stakes in three Kurdistan blocks.
Yesterday, 7:38 PM
- ExxonMobil (NYSE:XOM) is “the gold standard" among oil majors due to its quality chemicals business, balance sheet and project delivery capabilities, but the company lacks growth potential, BMO analyst Brendan Warn says in initiating coverage of the stock with a Market Perform rating and a $78 price target that places it ~10% below current levels.
- Warn cites XOM’s higher valuation, slower growth and lower margin production, as well as a lower dividend payout than peers.
- However, Warn thinks XOM will reap benefits from its short-cycle Permian and Bakken investment and that the company has discovered a valuable new production hub in Liza, Guyana.
Yesterday, 7:17 PM
- In addition to Pemex's farmout of the Gulf of Mexico's potentially lucrative Trion oil field to BHP Billiton, beating out BP, today's final phase of Mexico’s first oil and gas bid round awarded of eight of 10 deepwater blocks in the Gulf to a variety of global operators.
- In four other areas surrounding Trion in the Perdido Fold Belt, areas 1 and 4 went to China's Cnooc (NYSE:CEO), area 2 to a consortium of Total (NYSE:TOT) and ExxonMobil (NYSE:XOM), and area 3 to a group comprising Chevron (NYSE:CVX), Pemex and Inpex.
- In the Salina basin to the south, areas 1 and 3 went to a consortium of Statoil (NYSE:STO), BP and Total (TOT), area 4 to Sierra Offshore and a Mexican entity, and Area 5 to a group led by Murphy Oil (NYSE:MUR) and Sierra Offshore; areas 2 and 6 received no bids.
- CEO, STO and Pemex each submitted individual bids that did not win an award, while consortia that unsuccessfully submitted bids were Eni (NYSE:E) and Lukoil (OTC:LUKOF, OTCPK:LUKOY), and Royal Dutch Shell (RDS.A, RDS.B) and Atlantic Rim Mexico.
Yesterday, 10:11 AM
- Papua New Guinea will seek to negotiate new fiscal terms for ExxonMobil's (XOM +0.5%) planned $10B expansion of its liquefied natural gas project, the country's Treasurer tells Reuters.
- Rural landowners have complained that they have yet to see the full benefits of the $19B PNG LNG project after more than two years of operation, as the country has been hit hard by the slump in oil and gas prices.
- Meanwhile, XOM's PNG head says he expects to deliver 7.9M metric tons of liquefied natural gas from Papua New Guinea this year, ~14% above original design specifications of its PNG LNG plant.
Yesterday, 9:10 AM
- ExxonMobil (NYSE:XOM) announced Friday that Tom Walters, president of ExxonMobil Production, will retire after 38 years with the company, effective Jan. 1.
- Neil Duffin, president of ExxonMobil Development, will replace Walters, and Liam Mallon, ExxonMobil Development VP, will become president of the development company.
- Walters joined XOM in 1978 and has held many executive positions at the company: Africa VP for ExxonMobil Development, U.S. VP for ExxonMobil Production, president of ExxonMobil Global Services, executive VP of ExxonMobil Development, president of ExxonMobil Gas & Power Marketing, and his current role as president of ExxonMobil Production in 2013.
Sun, Dec. 4, 4:40 PM
- The Trump transition team said last week that the search for Secretary of State had narrowed to four finalists, but apparently the president-elect isn't yet sold, as the field has been reopened.
- Among the new candidates is Exxon Mobile (NYSE:XOM) Chairman and CEO Rex Tillerson.
- Sixty-four years old, Tillerson joined Exxon in 1975 and is set to retire next year.
- Heads are already exploding in diplomatic circles over some of the president-elect's actions (such as receiving a call from the Taiwan president), and the appointment of Tillerson - who has no government or traditional foreign policy background - would surely be popcorn-worthy.
- Exxon, of course, operates globally, so Tillerson is no stranger to interacting with foreign leaders at the highest levels. He's also had plenty of dealings with Vladimir Putin, and has spoken out against sanctions on Russia.
Thu, Dec. 1, 11:46 AM
- November monthly performance was: +2.44%
- 52-week performance vs. the S&P 500 is: +6%
- $0.18 in dividends were paid in November
- Top 10 Holdings as of 10/31/2016: Exxon Mobil Corp (XOM): 5.06236%, AT&T Inc (T): 5.00966%, Verizon Communications Inc (VZ): 3.95123%, Chevron Corp (CVX): 3.90836%, General Electric Co (GE): 3.34327%, Procter & Gamble Co (PG): 3.22338%, Wal-Mart Stores Inc (WMT): 2.96781%, Philip Morris International Inc (PM): 2.82773%, Pfizer Inc (PFE): 2.73807%, Merck & Co Inc (MRK): 2.31749%
Thu, Dec. 1, 10:21 AM
- The price of oil pushed through $50 per barrel today, and is currently posting a 2.9% advance on the session at $50.91.
- The S&P 500 is flat and Nasdaq is down 0.45%, but the XLE has tacked on another 1.8% to yesterday's big rise.
- Mid-cap movers: Enerplus (ERF +8.2%), Southwestern Energy (SWN +7.9%), Range Resources (RRC +5.3%), Weatherford (WFT +7.1%), Ensco (ESV +8.2%), Crescent Point (CPG +6.3%).
- Among the large players: Exxon (XOM +1.1%), Chevron (CVX +2%), Shell (RDS.A +2.2%), (RDS.B +2.3%), BP (BP +2.4%), ConocoPhillips (COP +2%), Marathon (MRO +3.1%), Halliburton (HAL +2.3%)
Thu, Dec. 1, 9:31 AM
- November monthly performance was: +0.62%
- 52-week performance vs. the S&P 500 is: -5%
- No dividends were paid in November
- Top 10 Holdings as of 10/31/2016: Apple Inc (AAPL): 4.78232%, Microsoft Corp (MSFT): 3.6545%, General Electric Co (GE): 2.09427%, Procter & Gamble Co (PG): 1.43859%, Exxon Mobil Corp (XOM): 1.36332%, Wells Fargo & Co (WFC): 1.34175%, Intel Corp (INTC): 1.2948%, Bank of America Corporation (BAC): 1.2811%, Pfizer Inc (PFE): 1.22767%, Alphabet Inc C (GOOG): 1.22159%
Thu, Dec. 1, 8:49 AM
- November monthly performance was: +3.54%
- 52-week performance vs. the S&P 500 is: -3%
- No dividends were paid in November
- Top 10 Holdings as of 10/31/2016: Apple Inc (AAPL): 6.80131%, Microsoft Corp (MSFT): 5.15024%, Exxon Mobil Corp (XOM): 3.74079%, General Electric Co (GE): 2.88197%, Procter & Gamble Co (PG): 2.47992%, AT&T Inc (T): 2.43052%, Wells Fargo & Co (WFC): 2.30872%, Amazon.com Inc (AMZN): 2.24391%, Facebook Inc A (FB): 2.2067%, Alphabet Inc C (GOOG): 2.16615%
Wed, Nov. 30, 5:45 PM
- Big oil earnings will double next year as crude prices continue to march higher and oilfield services costs remain depressed, Evercore ISI head of energy research Doug Terreson tells CNBC.
- Terreson's top picks are Royal Dutch Shell (RDS.A, RDS.B), BP, ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), but he also sees upside for smaller independent E&P companies and oilfield services firms.
- "While we expected OPEC to cut production, today's outcome exceeded our expectations," Terreson says, "so this is a positive outcome for the oil markets, and we also think for the outlook for energy stocks in 2017 too," adding that he is "unrepentantly bullish."
Wed, Nov. 30, 10:58 AM
- A Louisiana environmental group says ExxonMobil's (XOM +1.8%) Baton Rouge, La., refinery, where four workers were burned in a fire earlier this month, has been poorly maintained for years.
- "This accident fits in a pattern of a poorly maintained facility that has consistent and constant accidents," says the director of the Louisiana Bucket Brigade, pointing to a 2012 EPA Agency inspection of the refinery that described long-standing flaws in maintenance.
- XOM says the group's previous reports "have consistently contained deliberate inaccuracies and misrepresent industry activities."
Wed, Nov. 30, 9:50 AM
- Shares of energy companies surge at the open, as hopes for an OPEC deal to cut production send crude oil futures soaring.
- Reports say Saudi Arabia is prepared to accept "a big hit" to production and agree to Iran freezing output at pre-sanctions levels.
- In early trading: XOM +2.2%, CVX +2.3%, RDS.A +3.6%, BP +3.4%, TOT +1.7%, STO +5.1%, PBR +8.1%, COP +7.2%, MRO +12.1%, APC +8%, DVN +12.7%, HES +9.5%, ENB +2.1%, PSX +0.8%, SLB +4.2%, HAL +8.3%, BHI +4.3%, KMI +4.8%, EPD +2.7%, ETP +3.8%, WMB +5.4%, RIG +11.3%, SE +2.2%, CHK +9.4%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, GASX, PXI, FIF, PXJ, RYE, NDP, GUSH, PSCE, DRIP, DDG, FXN, CRAK
Tue, Nov. 29, 10:20 AM
- Crude oil continues to slide - WTI now -3.8% at $45.27/bbl, and Brent -3.8% at $46.40/bbl - dragging oil and gas equities (XLE -2.1%) down with it.
- Iran's oil minister says he is not prepared to reduce supply, and Saudi Arabia says it would not participate in a production deal without Iran and Iraq.
- Reuters reports that Iran has written to OPEC saying Saudi Arabia needs to cut oil output to 9.5M bbl/day; Saudi has said it was prepared to reduce its production only by 500K bbl/day from current levels of 10.5M.
- In early trading: XOM -1%, CVX -1.7%, RDS.A -1.4%, BP -1%, TOT -0.3%, STO -1.8%, PBR -3.7%, COP -2.9%, MRO -4%, APC -2.8%, DVN -2.7%, HES -3.6%, ENB -2.3%, PSX -1.2%, MPC -0.8%, SLB -2.2%, HAL -2.3%, BHI -2.1%, KMI -1.4%, EPD -2%, ETP -2.2%, WMB -2.4%, SE -2.3%, CHK -2.6%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, GASX, FIF, PXJ, RYE, NDP, GUSH, DRIP, DDG, FXN, CRAK