From other sites
at CNBC.com (Fri, 8:03PM)
at CNBC.com (Fri, 6:59PM)
at CNBC.com (Fri, 4:27PM)
at Zacks.com (Fri, 3:34PM)
at CNBC.com (Fri, 1:10PM)
at Nasdaq.com (Fri, 9:41AM)
at CNBC.com (Fri, 8:24AM)
at Investor's Business Daily (Thu, 4:48PM)
at CNBC.com (Thu, 4:15PM)
at Zacks.com (Thu, 12:30PM)
XOM Hedges Against Environmental Backlash Of Shale Oil Mining
- XOM is increasing its oil production capability despite low oil prices as CVX walks away from deals.
- This shows that XOM is proactively taking steps to protect its oil production capability as the environmental backlash against shale oil mining gains momentum while others are oblivious to it.
- When oil prices normalize, XOM will be a key beneficiary with its enhanced production capability regardless of the regulatory conditions of shale oil mining in the United States.
- The relentless drop in oil prices continued Thursday after a brief respite.
- For an untold number of reasons I believe we are nowhere near the bottom in oil presently. Yet, there is light at the end of the tunnel.
- A flight to safety of oil and gas dividend growth investment dollars may begin to occur as the price of oil continues to plummet.
- Exxon Mobil should be the beneficiary of this potentially massive shift.
- XOM is a terrific, well-diversified energy name with strong fundamentals.
- But with oil crashing continuously, earnings will be negatively affected.
- The dividend is solid, and is a separate reason to potentially own the stock.
- I think earnings estimates are too high and that XOM is worth around $80 right now.
The 'Immense Opportunity' Is Not In Exxon, It's In Small-Cap Oil Stocks
- Oil prices may not go as low as some expect and, even if they do, they probably will quickly rebound.
- The global economy appears poised for long-term growth, and the recent drop in oil prices is only likely to increase oil consumption and economic activity.
- Many investors are buying Exxon shares due to a slight pullback in that stock, but the really immense opportunity appears to be in small-cap oil stocks.
- The relative strength in Exxon could be a sign that oil is not going to see a significant additional decline.
- Small-cap stocks that have strong balance sheets, significant hedges, and even multi-year contract backlogs are worth buying now.
- ExxonMobil has outperformed its U.S. peers Chevron and ConocoPhillips during the latest oil price crash.
- ExxonMobil's size and free cash flow strength make the company extraordinarily attractive for investors.
- The company is an excellent bet on normalizing oil prices in the long run.
- Shares of ExxonMobil now yield more than 3%.
Retirement Strategy: Selling Exxon Mobil Goes Against The Grain Of A Dividend Growth Investor
- Dividend growth investors can create wealth just by virtue of the increasing dividends from dividend aristocrat stocks.
- Not to buy a dividend aristocrat is perhaps the worst advice a dividend growth investor can get.
- There are 54 stocks that are dividend aristocrats. Owning them over the long term would have made you wealthy and I believe will continue to do so.
- While Exxon has outperformed over the past six months, now is the time to take profits and rotate out of its stock.
- Exxon has been unable to generate production growth despite a large capex budget, and free cash flow does not cover shareholder returns.
- At 14.9x earnings, Exxon's stock does not reflect the company's weak operating performance, and I would sell shares.
- Exxon Mobil's resource base is now higher than ever, at 90bn BOE.
- Disciplined investment is delivering higher margins and returns.
- Among its peers, XOM is the most resilient in the face of a falling crude oil price.
- 9% CAGR in free cash flow between 2014 and 2018 fully covers the dividend.
- Exxon Mobil and Chevron make for good long-term investments at current prices for a number of reasons.
- Energy demand is expected to rise in the future, and Exxon Mobil and Chevron are in excellent positions to accommodate this growing need with their vast reserves.
- Both companies have integrated business models, in which the downstream segment can provide a cushion for earnings in the face of lower oil prices.
- Both companies have a long history of earnings and dividend growth, strong balance sheets, and dividend yields that are currently at their highest levels in a long time.
Exxon Mobil: A Massive Buying Opportunity? Don't Drink The Kool-Aid
- There has been a tectonic shift in the oil patch as of late.
- The price of oil has sunk to multi-year lows on the back of news OPEC will not cut production and the incredible success of North American oil and gas production.
- Consequently, Exxon Mobil’s stock has taken a hit as of late. Several analysts have come out touting this is an excellent buying opportunity.
- I say not so fast. In the following article we will attempt to determine the truth regarding the opportunity Exxon Mobil offers dividend growth investors.
Time To Snap Up The Immense Opportunity In Exxon Mobil Corporation
- Unlike other U.S. oil companies, Exxon Mobil is uniquely positioned to weather low prices. The current share price slip is therefore a buy opportunity.
- Most U.S. producers have hedged at around $90 a barrel. When these arrangements expire, most producers will run out of business, considering that low crude prices are expected to persist.
- When this happens, a lot of investments will flee from shale producers to other more stable plays in the energy sector.
- Exxon Mobil’s profile makes it a prime candidate for the fleeing capital, suggesting strong demand for its shares in coming years.
- This is a multi-year opportunity that could see investors who get in now rewarded handsomely over the next half decade.
- As we have predicted in October 2013, oil prices have dropped substantially, along with the stock prices of most major oil companies.
- Exxon's current stock price decline is consistent with previous declines associated with crude oil sell-offs, while lower capital spending and improved margins will provide some cushion.
- At this juncture, additional major declines in crude oil prices are less likely, hence providing a buying opportunity in Exxon shares.
Exxon Mobil Valuation Analysis: Slightly Overvalued
- Going by a DCF analysis, a comparable company analysis, and a historical multiple analysis, Exxon appears to be overvalued based on its fundamentals.
- Given the recent drop in oil prices, the company still trades in line with its historical multiples and a turn above its comps' mean multiple.
- This analysis is meant to be illustrative for potential and current Exxon investors, as I derive a fair value for the company between $80-$84 per share.
- Exxon Mobil is a good long-term investment in a dividend growth stock.
- Exxon Mobil has shown considerable earnings per share surprise in each one of the last three quarters, and according to its historical valuation multiples, the stock is significantly undervalued.
- Exxon Mobil is generating strong cash flows and returns value to its shareholders by stock buyback and increasing dividend payments.
- Dividend Challenger Exxon Mobil yields 2.9% at a price of $95.11 and has a reasonable five-year CAGR of 9.7%. It trades at a discount of 5% to my fair value estimate.
- Along with other energy sector companies, XOM is challenged by a weaker commodity price environment.
- The company's aggressive share buybacks and its dividend commitments are not sufficiently covered by the free cash flow it is generating, which could inhibit future dividend growth.
- Exxon Mobil's shares are down 5% since the beginning of the year.
- Falling oil prices are the main reason why Exxon Mobil has performed poorly lately.
- With higher oil prices, I expect Exxon Mobil's shares to kick into gear.
- The energy company is still undervalued, and a purchase below $100 can make a lot of sense for long-term oriented investors.
Exxon Mobil Corporation, Currently Undervalued And A Strong Buy
- Exxon Mobil Corp., formed through the merger of Exxon and Mobil in late 1999, is the world's largest publicly owned integrated oil company.
- With a relentless pursuit of efficiency via technology and operational improvement, Exxon sets itself apart from other supermajors and has delivered higher returns on capital.
- On October 31, 2014, the company announced third-quarter 2014 earnings of $1.89 per share, up from $1.79 in the prior year's third quarter.
Dividend Zombies: Exxon - YDP Analysis & Fair Value Appraisal (Part 4)
- Dividend Zombies are income equities that have survived more than 100 years with unbroken and undiminished dividend distributions. These are the 8 income machines that can't be killed.
- This part 4 of an 8-part series, evaluates XOM fair value price, technical momentum trends, entry point, and a yield boost while lowering market risk using covered option writing.
- Exxon, at the November 7th close of $96.59 is 16.63% below fair value price for income investors. A soon expected dividend raise will increase the target to $117.55.
Mon, Mar. 17, 11:59 AM
- Exxon Mobil (XOM) has submitted a report to the Arkansas Department of Environmental Quality saying it has completed the cleanup of soil stemming from last year's oil spill in Arkansas.
- XOM is offering to perform weekly sheen monitoring and sheen removal at a cove and to do the same within 48 hours after rainfall; XOM also will replace booms that absorb oil from the water at least every three months.
- XOM's Pegasus pipeline ruptured last March, spilling thousands of barrels of oil in the community ~30 miles northwest of Little Rock and forcing the company to shut down the entire pipeline which runs from Illinois to the Texas Gulf coast.
Mon, Mar. 17, 10:59 AM
- Exxon Mobil (XOM +0.7%) gains tentative approvals from the U.S. Bureau of Land Management to undertake oil shale R&D projects in western Colorado, in a renewed attempt to commercially extract petroleum from oil shale after shutting down its Colony project in 1982.
- XOM proposes a development project involving heating the oil shale underground and then pumping out the oil - a process different from the Colony project, which involved surface mining and heating of oil shale.
- Royal Dutch Shell (RDS.A, RDS.B) and Chevron (CVX) are among others holding R&D leases in the area from the earlier round of leasing, but both have ended their oil shale projects.
Mon, Mar. 17, 10:17 AM
- Imperial Oil (IMO +0.9%) agrees to sell certain oil and gas assets in western Canada to Whitecap Resources (SPGYF) for ~C$855M ($771M).
- IMO, majority owned by Exxon Mobil (XOM), says the assets produced ~15K boe/day in 2013, with production split evenly between oil and gas; the amount is ~5% of IMO's total average daily output.
- The sale comes as IMO focuses on its C$13B Kearl oil sands project in Alberta, which began operations last year and a C$7B expansion is underway; Kearl is expected to produce up to 345K bbl/day at full capacity by 2020.
Fri, Mar. 14, 7:57 AM
- ExxonMobil (XOM) says the giant PNG LNG liquefied natural gas project in Papua New Guinea is months ahead of schedule and is expected to deliver first gas by June, as construction is completed on the project's onshore pipeline.
- XOM says the $19B plant will supply 6.9M metric tons/year of liquefied natural gas to customers in Japan, China and Taiwan.
Thu, Mar. 13, 10:35 AM
- South Africa’s ruling African National Congress has used its parliamentary majority to push through changes to minerals laws that companies such as Exxon Mobil (XOM) and BHP Billiton (BHP) say will hurt investment.
- The new law will secure for the state a free 20% stake in all new energy ventures and enable it to buy an unspecified additional share at an "agreed price,” and it enable the mines minister to declare some minerals strategic and force companies processing them to sell some output to local manufacturers.
- Rules for energy companies were made more onerous after lawmakers scrapped a 50% cap on the size of the stake the state may demand in new projects, which would have “a chilling effect" on investment, according to a trade association whose members include XOM, BHP, Anadarko (APC) and Total (TOT).
Tue, Mar. 11, 3:34 AM
- Major oil companies are facing a legal limbo over Black Sea energy prospects because of Crimea's decision to hold a referendum over whether to secede from Ukraine and join Russia.
- A consortium that includes Exxon (XOM) and Shell (RDS.A, RDS.B) planned to invest $735M on drilling two wells off Crimea, while Eni (E) has a license to explore in the region.
Fri, Mar. 7, 8:41 AM
- Kazakhstan's government is suing foreign oil companies developing its huge Kashagan oilfield in the Caspian Sea, a tactic used earlier in securing the government large stakes in two of the three multinational energy projects on its territory.
- The development consortium, led by Exxon (XOM), Shell (RDS.A, RDS.B), Total (TOT) and Eni (E) as well as Kazakh state oil firm KazMunaiGas, may face Kazakhstan seizing a bigger stake in Kashagan or refusing to reimburse part of the $50B spent on bringing it onstream.
- Repeated delays at Kashagan have infuriated the government; production finally began in September after 13 years but was stopped a few weeks later after gas was found to be leaking from its pipelines.
- The government says its checks show the volume of gas burned off after the discovery of the leak totaled 2.8M cubic meters, and thus is claiming $737M against the consortium.
Thu, Mar. 6, 5:36 PM
- Exxon Mobil (XOM) shares have added a puny 7% during the past year, and the consensus is that the stock probably will not rebound anytime soon, as the company prepares for at least a year of transition with spending cuts and project shifts to reduce costs and improve margins and volumes.
- XOM must constantly replace production from declining wells with new spigots of oil and gas; last year, its reserve replacement measure was positive by a narrow 103%.
- After a decade of considering its internal benchmark for return on capital employed at 35%, XOM's 2013 ROCE was just 17% in a year when oil remained near historic highs at ~$100/bbl.
- Total debt at year-end 2013 was $22.7B, up by $11.1B Y/Y, and cash fell $4.9B; Morgan Stanley figures XOM will need $11B annual free cash inflection to support current distributions without using the balance sheet.
- Worries over political risk in Russia are real: XOM already has put its Ukraine offshore natural gas prospect on hold, although it is pressing ahead with other large-scale investments in Russia, as well as a Black Sea oil project just east of Crimea.
Wed, Mar. 5, 5:33 PM
- Investors supposedly want the oil majors to rein in spending, but when Exxon Mobil (XOM) outlines a plan to do precisely that - promising to cut capital expense by ~6.4% this year and keeping it up in the years beyond - shares sink nearly 3%, making it the Dow's worst performer of the day.
- The market's reaction is perverse, in one sense, WSJ's Liam Denning writes; even if production targets are lower, growth is still expected and higher returns and free cash flow should offer support for its valuation; on the flip side, the hard truth is that XOM must rebuild credibility after missing production targets too many times before.
Wed, Mar. 5, 2:17 PM
- Exxon Mobil (XOM -2.9%) is dropping more than at any time in the past year after it forecast flat production in 2014 on reduced capital spending.
- However, RBC Capital's Peter Hutton isn't rattled by XOM's production guidance, noting that much of the downside has a relatively limited effect on cash flows and earnings as the production is in lower margin areas such as UAE and U.S. natural gas.
- Also possibly weighing on shares is the potential delay of XOM's biggest non-U.S. exploration opportunity - XOM owns drilling rights to 11.4M acres of Russian land - if the U.S. hits Russia with sanctions over Ukraine; also at risk are plans to begin drilling in the Russian Arctic later this year in partnership with Rosneft and the lucrative Sakhalin-1 oil license off Russia’s Pacific coast.
Wed, Mar. 5, 9:46 AM
- Exxon Mobil (XOM -1.4%) says it still expects to start production at a record 10 major projects this year, adding new capacity of ~300K boe/day, even as it plans to cut capital spending by ~6.4%.
- XOM says at its annual investor meeting that it expects to spend $39.8B in 2014 on production projects and related expenses, down from a peak of $42.5B in 2013; expects capex excluding any potential acquisitions to average less than $37B/year from 2015-17.
- Forecasts liquids production will increase 2% this year and 4% annually from 2015-17, and sees liquids and liquids linked natural gas accounting for 69% of total production by 2017.
- Says it is pursuing more than 120 high-quality projects to develop ~24B oil equivalent barrels of oil and natural gas.
Mon, Mar. 3, 7:51 AM
- Statoil (STO) says it successfully tested its Zafarani reservoir offshore Tanzania in a key step for offshore development and onshore liquefied natural gas production.
- The Zafarani-2 operation tested two separate intervals and flowed at a maximum of 66M cf/day of gas, constrained by equipment, and confirmed good reservoir quality and connectivity.
- STO owns 65% of the license while ExxonMobil (XOM) holds the remaining 35%.
Thu, Feb. 27, 8:55 AM
- Oil Search (OISHF, OISHY) says it will sell A$1.2B (US$1.09B) in shares to fund a purchase of stakes in two large natural gas discoveries in Papua New Guinea.
- Oil Search says it will use the funds to buy a 22.8% stake in a license that includes the Elk and Antelope gas fields from closely held Pac LNG Group for US$900M; the fields are being developed by Total (TOT) and InterOil (IOC).
- Oil Search will issue 149.4M new shares at A$8.20 each to the government of Papua New Guinea to fund its entry into the Elk and Antelope developments.
- The deal brings Oil Search inside both major energy joint ventures in the country, led by Exxon Mobil's (XOM) $19B PNG LNG project, where Oil Search owns a 29% stake.
Thu, Feb. 27, 8:24 AM
- Exxon Mobil (XOM) plans to cut spending on new wells, offshore platforms and fuel plants by 13%, averaging ~$37B annually this year and for the next several years, compared with $42.5B in 2013, according to its latest 10-K filing.
- XOM plans to spend $6B this year on projects to reduce emissions linked to climate change and pollution, a level of expenditure even with 2013, and says it will continue at that rate next year.
- XOM -0.3% premarket.
Tue, Feb. 25, 11:48 AM
- Western oil majors including Chevron (CVX), Exxon Mobil (XOM) and Royal Dutch Shell (RDS.A, RDS.B) likely will reassess deals to drill in Ukraine, where the political crisis threatens a promising source of new profits and the country’s drive for energy independence.
- Chevron and Shell signed deals last year to drill unexplored shale formations in Ukraine, and Exxon was close to signing a pact to explore the Black Sea before the crisis erupted last year.
- While the oil companies can always spend their money elsewhere, the potential $10B in investment is vital to Ukraine’s quest to pull away from Russian control and revive an economy on the verge of collapse.
Mon, Feb. 24, 5:48 PM
- Encana (ECA) is working with Royal Bank of Canada to find a buyer for its Bighorn properties in Alberta, Bloomberg reports.
- Bighorn may attract bids of C$2B-C$2.5B if offers are in line with the ~C$30K per flowing barrel that Canadian Natural Resources (CNQ) agreed to spend on Devon Energy’s (DVN) conventional assets in Canada last week, Cormark analyst Todd Kepler says, adding that Exxon Mobil (XOM) may be “a natural” buyer after its purchase of Celtic Exploration last year.
- The properties up for sale are said to produce ~61.5K boe/day, of which 79% is gas.
XOM vs. ETF Alternatives
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.
Other News & PR