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Exxon Mobil Corporation (XOM)

  • Wed, Mar. 25, 6:08 PM
    • The number of drill rigs in North Dakota’s oil patch has slipped below 100 for the first time in five years thanks to weaker crude oil prices.
    • Only 98 rigs are now drilling in the area, 100 fewer than on the same day a year ago and the lowest since March 2010.
    • North Dakota has been producing ~1.2M bbl/day of oil, and industry officials say ~115 rigs need to be drilling to keep that level of production.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Tue, Mar. 24, 3:30 PM
    • Investors largely take in stride Freeport McMoRan's (FCX -0.7%) 84% dividend cut, apparently agreeing with analysts at Jefferies who say the cut was “sensible” because it saves the company $1.1B/year of cash.
    • FCX "is not entirely out of the woods yet as macro risks clearly remain, but this dividend reduction is a step in the right direction and could indicate a bottom in Freeport shares," says the firm's Christopher LaFemina.
    • The dividend was so high that investors probably knew that paying out $1.25/year might be hard to continue, but an 84% cut - particularly with the recent bounce in copper prices - is a message that FCX is "worried about more than just the next few earnings reports," 24/7's Jon Ogg writes.
    • Dividend cuts are rare in the energy and materials sector, points out S&P's Howard Silverblatt, who wonders what Exxon Mobil (XOM -0.9%) will do next month when it reports earnings; after increasing its dividend for 32 straight years, Silverblatt says the more pertinent question is not if, but by how much.
  • Fri, Mar. 20, 10:33 AM
    • No matter how unfavorable market fundamentals may be to Bakken operators, North Dakota likely will see a big surge in production this June, potentially besting another supply record even if prices continue to crater, according to the director of the state's Department of Mineral Resources.
    • Production is expected to remain at 1.1M-1.2M bbl/day over the next few months before skyrocketing in June by nearly 10%, or an additional 75K-100K bbl/day, propelled by a state-mandated time limit on drilling and the expected trigger of a major oil tax incentive.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Wed, Mar. 18, 4:35 PM
    • Chevron (NYSE:CVX), Royal Dutch Shell (RDS.A, RDS.B), Exxon Mobil (NYSE:XOM) and Statoil (NYSE:STO) led the way in today's government auction of Gulf of Mexico offshore oil and gas leases.
    • Lease Sale 235 drew 195 bids on 169 blocks from 42 companies, with the sum of apparent high bids totaling $539M, vs. last year’s Lease Sale 231 that received 380 bids on 326 blocks from 50 companies, resulting in $850M in high bids.
    • CVX all companies with $78.6M in total apparent high bids after submitting 11, including the second and third single highest bids, while Shell led in total apparent high bids at 17, totaling $37.9M.
    • The single largest bid, however, was $52.2M from a group owned by the Southern Ute Indian Tribe of Southwest Colorado.
    • BP submitted only four apparent high bids totaling $4.4M vs. last year's 24 high bids totaling $41.6M.
  • Wed, Mar. 18, 8:27 AM
    • Exxon Mobil (NYSE:XOM) is asking the Russian government to return several billion rubles in taxes it says it overpaid on the Sakhalin-1 oil and gas project in Russia's far east in which it has a 30% stake.
    • The Kommersant newspaper reported that XOM believes it overpaid profit taxes, as it continued to pay a 35% rate after Russia reduced its profit tax in 2009 to 20%; XOM is said to have overpaid by 10B rubles ($163.7M) in 2014 alone.
    • XOM CEO Rex Tillerson is expected to meet with Russian Energy Minister Alexander Novak today, as well as several other top government officials during his stay in Moscow.
    • XOM -0.5% premarket.
  • Tue, Mar. 17, 7:40 PM
    • Crude oil production at three major U.S. shale oil fields - the Eagle Ford in south Texas, the Bakken in North Dakota, and the Niobrara in Colorado and adjacent states - is projected to fall this month for the first time in six years, the Energy Information Administration says.
    • Net production from the three fields is expected to drop by a combined 24K bbl/day, but overall losses likely will be masked by production gains in the Permian Basin in west Texas and other regions.
    • It is one of the first signs that idling hundreds of drilling rigs and billions of dollars in corporate cutbacks are starting to affect the U.S. oil patch, but it also shows that drilling technology and techniques have advanced to the point that productivity gains may be negligible in some shale plays.
    • Top Eagle Ford producers: EOG, BHP, COP, CHK, MRO, APC
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
    • Top Niobrara producers: NBL, APC, ECA, CHK, EOG, WPX
  • Tue, Mar. 17, 7:12 PM
    • Most of the top 15 shale oil producers in the U.S. are heavily concentrated in basins expected by NavPort to be severely affected by the decline in prices, with one major exception: ConocoPhillips (NYSE:COP).
    • COP has the lowest well completion concentration in basins expected to suffer the greatest production cuts this year, implying less disruption than other shale competitors, according to NavPort, which collates oil well and rig data using regulatory reports.
    • All 14 of the other top producers tracked by NavPort have at least two-thirds of well completion concentrated in the basins rated with "strong" or "severe" exposure: CHK, APC, EOG, DVN, SWN, MRO, APA, SD, XOM, CLR, PXD, NBL, BHP, WLL.
    • Operators concentrated in basins that have been less severely affected - such as the Woodford, Utica and Haynesville basins - should enjoy more production than their peers through a higher volume of well completions, NavPort says.
    • The study sees the Mississippi Lime, Granite Wash, Bakken and Permian basins suffering at least a 40% Y/Y reduction in drilling.
  • Mon, Mar. 16, 6:45 PM
    • Exxon Mobil (NYSE:XOM) CEO Rex Tillerson is visiting Moscow this week for meetings with Russian oil producer Rosneft (OTC:RNFTF) and government officials despite talk of further sanctions on Russian companies and individuals, Bloomberg reports.
    • The visit would coincide with the March 18 anniversary of Russia’s annexation of Crimea, which started the political crisis with the U.S. and Europe.
    • XOM boosted its Russian holdings to 63.7M acres in 2014 from 11.4M at the end of 2013, a position that now dwarfs the 14.6M acres of rights it holds in the U.S.
  • Fri, Mar. 13, 3:58 PM
    • Whiting Petroleum (WLL +3.1%) spikes on a Bloomberg report suggesting Exxon Mobil (XOM -0.2%) could be interested in the company; trading is now halted for volatility.
    • Continental Resources (CLR -4.8%), Hess (HES +0.4%) and Statoil (STO +1.4%) also are reportedly looking at WLL, according to the report, and WLL has set up a data room for potential buyers to evaluate the company’s financial information and asked them to submit bids next week.
    • WLL is the largest producer in North Dakota’s Bakken Shale, and the four rumored suitors already are among the 10 largest holders of acreage in the play.
    • WLL had been down all day on an earlier report that it was considering selling off pieces rather than the whole company.
  • Fri, Mar. 13, 9:19 AM
    • Exxon Mobil (NYSE:XOM) releases a statement suggesting ways the U.S. government should adjust its energy policies, including allowing U.S. exports of oil and natural gas, approving the Keystone XL pipeline, and making the regulatory process less burdensome and more transparent.
    • "The energy industry has been an economic engine for the entire nation at a time of recession, slow growth, and falling labor participation rates,” CEO Rex Tillerson says.
    • Also, several CEOs of U.S. drilling companies, including ConocoPhillips' (NYSE:COP) Ryan Lance, Marathon Oil's (NYSE:MRO) Lee Tillman, Chesapeake Energy's (NYSE:CHK) Doug Lawler and Occidental Petroleum's (NYSE:OXY) Steve Chazen, reportedly were in D.C. this week trying to persuade White House officials and lawmakers to lift the 40-year ban on U.S. oil exports.
  • Thu, Mar. 12, 6:32 PM
    • North Dakota says production of crude oil from the Bakken Shale fell in January from all-time highs the previous month, slipping 3.3% 1.19M bbl/day from a record 1.23M bbl/day in December, according to a new report from the state's department of mineral resources.
    • As prices for Bakken sweet crude fell to a six-year low of an average of $31.41/bbl in January, down from $40.74 December, the number of completions of previously drilled wells fell sharply to 47 from 183 in the prior month.
    • The number of active rigs used to drill new wells in North Dakota sank to 111 as of today, the fewest since April 2010 and about half the peak of 218 rigs in May 2012; the state's mineral resources director predicts a bottom 100 rigs, noting that 115 active rigs are needed to maintain stable production.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Thu, Mar. 12, 2:29 PM
    • Exxon Mobil (XOM +0.2%) says it has restarted drilling operations at Point Thomson on Alaska's North Slope with expectations that natural gas condensate production will start in 2016.
    • XOM expects the $2.6B project to produce up to 10K bbl/day of natural gas condensate and 200M cf/day of natural gas.
    • XOM says the Point Tomson reservoir holds ~8T cf of natural gas and associated condensate, which represents 25%of known gas resources on the North Slope and could be used to partially underpin the proposed Alaska LNG project.
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  • Thu, Mar. 12, 10:47 AM
    • The three biggest oil traders in the world are BP, Royal Dutch Shell (RDS.A, RDS.B) and Total (NYSE:TOT), and they make lots of money from oil crashes, according to a Bloomberg report.
    • The trio’s sway in commodities trading is set to pay off this year as the crude oil bear market allows traders to generate higher returns by storing cheap oil today to sell at higher prices later and using lower prices to make more bets with the same capital.
    • "Volatility has increased dramatically over the last three or four months,” says the head of Shell’s trading business. “Parts of the business that are volatility driven are probably doing pretty well.”
    • The European oil majors do not disclose full financial results from their trading desks, but in Q1 2009 during the last major bear market, BP said it made $500M above its normal level of profits from trading, meaning that trading accounted for at least 20% of BP’s adjusted income of $2.38B that quarter.
    • Oil trading could provide BP, Shell and Total with an edge over U.S. rivals Exxon (NYSE:XOM) and Chevron (NYSE:CVX), which sell their own production but largely eschew pure trading as a means of generating profits.
  • Thu, Mar. 12, 8:43 AM
    • Authorities hope to reopen the Houston Ship Channel today after a tanker carrying 216K barrels of gasoline additive MTBE collided Monday with a bulk carrier hauling steel, prompting the shutdown of a five-mile stretch of the channel.
    • Exxon Mobil (NYSE:XOM) says it cut production rates at its 560K bbl/day refinery in Baytown, Tex. - the second-largest refinery in the U.S. - as crude deliveries continue to be delayed by wreckage that have partially closed the Houston Ship Channel.
    • Royal Dutch Shell (RDS.A, RDS.B) says it is evaluating the closure's impact on its 327K bbl/day joint venture refinery in Deer Park; LyondellBasell (NYSE:LYB) says its 263K bbl/day plant in Houston has experienced no operational impacts.
    • Enterprise Products Partners (NYSE:EPD) suspended docking operations for ships and barges at its Oiltanking Partners unit on the ship channel, applying force majeure retroactively to the shutdown on Monday.
  • Wed, Mar. 11, 5:41 PM
    • The widening corruption probe into Petrobras (NYSE:PBR) is likely to delay by at least one year four major offshore oilfield projects, Portuguese partner Galp Energia (OTC:GLPEF) says, in a first sign of strain on foreign investors.
    • Galp, which is involved in nearly 30 onshore and offshore oil and gas projects in Brazil, eyes a one-year delay in the building of production ships for the Lula Sul, Lula Norte, Lula Extremo Sul and Lula Oeste fields, which it is developing with PBR.
    • The uncertainty is expected to lead to delays in the delivery of four locally-made FPSO units after contractors have either gone bankrupt or been banned from receiving money from PBR due to the corruption scandal.
    • Galp's forecast comes before PBR issues its own guidance on project development in light of the investigation.
    • Other major oil companies producing in Brazil include XOM, RDS.A, RDS.B, STO, CVX, BP, OTCQX:REPYY, OTCPK:REPYF, OTCPK:BRGXF, OTCQX:BRGYY.
  • Wed, Mar. 11, 11:59 AM
    • U.S. stocks are nearing a bounce, Strategas analysts say, but there's one exception: Commodity sector stocks such as Exxon Mobil (XOM +0.3%).
    • "The real bear market out there" is still in commodities and the related stocks, Strategas says, pointing out that XOM made new lows yesterday and that the energy sector is at new relative lows.
    • Interest in the space is still too high - which also is reflected in fund flow data - the firm says, urging investors to avoid or sell into any rallies.
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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.