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Exxon Mobil Corporation (XOM)

  • Fri, Jul. 31, 7:46 PM
  • Fri, Jul. 31, 3:26 PM
    • ConocoPhillips (NYSE:COP) is down 3.3%, a day after posting a Q2 earnings beat where it cut capex but continued to expand production.
    • Meanwhile, debate on this oil major rages around the safety of its sizable dividend (declared at $0.74 quarterly this month).
    • Credit Suisse finds the dividend safe: "ConocoPhillips outlined how they could cover their dividend with unchanged 2017 production at a $60/bbl Brent price. This is impressive." Considering capex of $11B this year, "the project cycle helps."
    • Meanwhile, JPMorgan thinks the dividend can't stick around in the long run: "While management did a good job of highlighting the incremental levers available to pull, our caution remains that the strategy of increasing the mix of short cycle production with high decline rates will make it more difficult to cover the sacrosanct dividend in the out years when productivity slows."
    • Conoco's yield is now a point higher than closest peer Chevron, at 5.7%, but "without the same downstream cushion and more than twice the leverage."
    • Today: XOM -4.6%, and CVX -5.3%, after earnings reports this morning.
    • Previously: Exxon Mobil off 1.8% premarket after lowest profit since 2009 (Jul. 31 2015)
    • Previously: Chevron -1.8% as earnings tumble, paced by $2.2B upstream loss (Jul. 31 2015)
  • Fri, Jul. 31, 8:24 AM
    • Exxon Mobil (NYSE:XOM) is 1.8% lower premarket as it posts its lowest profit in six years, with price pressures holding down Q2 EPS that missed by 10%.
    • Net income was halved, to $4.19B from a year-ago $8.78B. Once again, downstream earnings were up significantly, dampened by weak upstream results.
    • Production of 4M boe/day was up 3.6%; liquids volumes of 2.3M barrels/day was up 11.9%.
    • Downstream earnings of $1.5B were up $795M Y/Y. Stronger margins had a $1.1B positive effect. Upstream earnings of $2B were down $5.9B, hit by lower liquid/gas realizations to the tune of $4.5B.
    • With the start of the second oil bear market, the company's still been aggressive on cost cutting: Capex was down 16% to $8.3B. Total costs were down 31%, to $67.2B.
    • Cash flow from operations and asset sales of $9.4B.
    • Webcast to come at 9:30 a.m. ET.
    • Press Release
  • Fri, Jul. 31, 8:02 AM
    • Exxon Mobil (NYSE:XOM): Q2 EPS of $1.00 misses by $0.11.
    • Revenue of $74.1B (-33.4% Y/Y) beats by $1.62B.
    • Press Release
  • Thu, Jul. 30, 5:30 PM
  • Thu, Jul. 30, 9:16 AM
    • Exxon Mobil (NYSE:XOM) and Rosneft (OTC:RNFTF) have jointly applied to take part in a tender for hydrocarbon fields in Mozambique, the Russian energy producer says.
    • XOM would be the operator if the two companies win the tender, Rosneft says.
    • XOM has suspended cooperation with Rosneft in the Kara Sea and in shale oil in Russia because of Western sanctions against Rosneft linked to the Ukraine crisis.
  • Wed, Jul. 29, 1:51 PM
    • Exxon Mobil (NYSE:XOM) declares $0.73/share quarterly dividend, in line with previous.
    • Forward yield 3.52%
    • Payable Sept. 10; for shareholders of record Aug. 13; ex-div Aug. 11.
  • Mon, Jul. 27, 6:34 PM
    • Prudhoe Bay field owners BP and ExxonMobil (NYSE:XOM) have asked Alaska regulators to approve plans to increase the volume of natural gas allowed to be produced and sold from the North Slope field.
    • The Alaska Oil and Gas Conservation Commission has limited gas offtake at 2.7B cf/day of gas since 1977, but the two companies are asking to increase the rate to 4.1B cf/day to supply a planned Alaska gas pipeline and liquefied natural gas export project; a separate application for gas offtake from the Point Thomson gas field, which also would supply the LNG Project, is expected later.
    • ~8B cf/day of gas is now produced - along with oil - at Prudhoe, but most is injected back underground to maintain pressure in the reservoir to aid oil production; the concern is that if ~50% of the produced gas is shipped to markets via pipeline, there would be less gas injected and less support for pressure in the reservoir, resulting in lower oil output.
    • BP is the Prudhoe Bay field operator and a major stakeholder along with XOM; ConocoPhillips (NYSE:COP), also a major stakeholder, was not included in the application and says it was not aware that the other two companies would do so.
  • Fri, Jul. 24, 12:54 PM
    • No new well completion reports have been filed in North Dakota since July 10, the longest gap this year, according to the state’s Department of Mineral Resources.
    • The slump in reported completions is unusual and coincides with the fall in oil prices which has seen wellhead prices for Bakken crude drop below $50/bbl; Reuters' John Kemp says if the slump continues for much longer, it could be a sign that shale producers are deferring putting more wells into production to save cash and wait for better prices.
    • The number of wells reported completed so far in July is running far below the previous level and well below the number the DMR estimates is needed to hold production steady, Kemp writes.
    • Top Bakken producers include CLR, HES, EOG, WLL, XOM, OAS, NOG, EOX, MRO
  • Wed, Jul. 22, 2:56 PM
    • In contrast to his upbeat analysis (I, II) of Exxon Mobil (XOM +1.2%), Goldman's Neil Mehta thinks investors should sell Chevron (CVX -0.2%) and Cenovus Energy (CVE -2.2%) on concerns about dividend sustainability.
    • Believing too many investors are focusing on absolute yield when an ability to post dividend growth is more important long term, the analyst ranks CVX a Sell given low dividend growth, weak free cash flow and E&P volume risk, while CVE is a Sell because of limited dividend growth, lower returns and a premium valuation.
    • XOM and Suncor Energy (SU -0.4%), on the other hand, "are set to deliver the highest dividend growth through the end of the decade - and now offer solid valuation upside from current levels."
  • Wed, Jul. 22, 10:58 AM
    • More on Goldman Sachs' addition of Exxon Mobil (XOM +0.7%) to its Conviction Buy list: Analyst Neil Mehta thinks the company is positioned to outperform the sector and calls the company a "rare dividend/FCF growth story among big oils."
    • Metha highlights four key positives: improving free cash flow, driving premium dividend growth; an inflection in production growth; strong refining earnings improvement driven by higher global crack spreads; and investor positioning, with many large cap portfolio managers still meaningfully underweight the stock.
    • The analyst expects free cash flow will ramp from $9B at $57/bbl Brent in 2015 to $19B in 2017 at $65/bbl Brent, as capex decreases and volumes improve, and believes XOM can raise its dividend, on average, by 6% through 2017 vs. zero improvement for ConocoPhillips (COP -0.7%) and just 1% for Chevron (CVX +0.3%).
  • Wed, Jul. 22, 8:24 AM
    • Exxon Mobil (NYSE:XOM+0.4% premarket after Goldman Sachs added the stock to its Conviction Buy list with a $95 price target, citing above average dividend growth, a strong balance sheet and healthy refining margins, among other factors.
    • Goldman says XOM is "uniquely positioned to outperform peers and the energy sector" to benefit from "the new oil order."
  • Tue, Jul. 21, 3:29 PM
    • Exxon Mobil's (XOM -0.3%) recent discovery off the coast of Guyana may hold oil and natural gas worth 12x the country’s entire economic output, and may begin pumping crude in as few as five years, according to Guyana's minister of governance.
    • The Liza-1 well, which could hold more than 700M boe, would be on par with a recent XOM find at the Hadrian formation in the Gulf of Mexico and be worth ~$40B at today’s international crude price.
    • While declining to comment on the 700M boe estimate, XOM says it is encouraged by early drilling exercises in the area.
  • Tue, Jul. 21, 8:55 AM
    • Total (NYSE:TOT) says it has started production from its Dalia Phase 1A project, boosting its deepwater Block 17 offshore Angola production by ~30K bbl/day.
    • The development, which unlocks 51M barrels additional reserves, is in TOT’s deep offshore Block 17; TOT operates the block with a 40% interest, alongside Statoil with 23.3% (NYSE:STO), Exxon with 20% (NYSE:XOM) and BP with 16.7%.
    • In total, TOT operates four FPSO units on the major production zones of Block 17.
    • TOT +0.8% premarket.
  • Sat, Jul. 18, 9:25 AM
    • Pump prices in California have been rising and are likely to remain high, as damage from a February explosion at the Exxon Mobil (NYSE:XOM) refinery in Torrance, Calif., keeps operations at less than 20% capacity.
    • Repairs are moving slowly; pollution control systems damaged in the explosion include two units with ~1,300 plates that capture fine particulate matter, and XOM is replacing all of the plates.
    • XOM has asked the local air quality management district for approval to use an old pollution control unit it replaced in 2008 to temporarily restore full operations at the refinery, but regulators said the old equipment does not capture emissions well enough.
    • Analysts had expected the refinery to return to full service in July, but now it is not expected to return to full operations for much longer - perhaps the end of the year.
    • Meanwhile, an ongoing inventory shortage is exacerbating the price at the pump, affecting all Californians who drive.
  • Thu, Jul. 16, 7:05 PM
    • BP is on the hook for most of a $136M award to offshore driller Noble Corp. (NYSE:NE) in a contract dispute over a rig that was to drill offshore Libya in 2010, an arbitration panel finds.
    • A Noble subsidiary initiated arbitration proceedings in 2010 against the Libyan operating subsidiaries of both BP and Exxon Mobil (NYSE:XOM) under a drilling contract for the Noble Homer Ferrington for operations in that country.
    • NE says the panel issued an award in the company's favor, and the period when the defendants could seek clarification or correction of the award under the applicable arbitration rules expired July 10.
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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.