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Exxon Mobil Corporation (XOM)

- NYSE
  • Tue, Aug. 25, 3:33 PM
    • A New Jersey judge approves the $225M settlement between New Jersey Gov. Christie's administration and Exxon Mobil (XOM +2.1%) over dozens of polluted sites including the company’s refinery and petrochemical plants in Bayonne and Linden.
    • The judge rules that while the deal is much less than the $8.9B New Jersey originally sought, it is a "reasonable compromise" considering "substantial litigation risks" faced by the state in the case.
    • Democrat lawmakers and environmental groups have called the settlement inadequate, and the Sierra Club says it expects to appeal the judge's approval of the settlement.
    | 13 Comments
  • Tue, Aug. 25, 10:20 AM
    • Alaska Gov. Walker says he plans to recommend that the state buy out TransCanada's (TRP +2.3%) position in the major liquefied natural gas project Alaska is pursuing.
    • Walker estimates buyout costs would total ~$100M.
    • The other partners in the project are Exxon Mobil (NYSE:XOM), BP, ConocoPhillips (NYSE:COP) and the Alaska Gasline Development Corp., which would hold the state's interest in liquefaction facilities.
    • No decision has been made yet on whether to build the project, which is in a phase of preliminary engineering and design.
    | 20 Comments
  • Mon, Aug. 24, 3:27 PM
    • Chevron (CVX -5%) is upgraded to Neutral from Underperform with a $100 price target at BofA Merrill, which expects CVX’s net debt to stabilize with major projects beginning to contribute in 2017 and a drop in spending to maintenance levels.
    • The firm says it has been concerned throughout the past year that CVX's cash burn would dilute equity value through peak spending at the same time that oil prices collapsed, but it no longer sees a risk, as CVX is discounting below strip prices but with a dividend.
    • CVX requires sustained spending of $15B-$16B to hold production flat for an extended period,” BofA's Doug Leggate explains, adding that at $45-$50 oil, cash flow by 2017 would be closer to $29B so that the dividend is "more than covered" by cash flow in an ex-growth environment.
    • ConocoPhillips (COP -6.2%) is the firm's top pick among the big oils after the stock has been hit hard, which the analyst thinks reflected unwarranted concerns regarding COP's dividend; at current strip prices, Leggate believes COP's upside is second only to Buy-rated Exxon Mobil (XOM -5.3%).
    • However, the firm downgrades HollyFrontier (HFC -3.5%), Marathon Petroleum (MPC -7.2%) and Valero (VLO -4.7%) to Underperform and cuts Continental Resources (CLR -10.1%), Marathon Oil (MRO -8.4%), Noble Energy (NBL -5.4%) and Whiting Petroleum (WLL -8%) to Neutral.
    | 28 Comments
  • Fri, Aug. 21, 1:31 PM
    • WTI crude dips below $40 for the first time since 2009 on major concerns over demand from China and a Baker Hughes report indicating producers increased their rig count for the 5th straight week.
    • WTI crude traded as low as $39.86.
    • Oil majors are down slightly more than broad market averages on the day. Notable decliners include Exxon Mobil (NYSE:XOM) -1.4%, Chevron (NYSE:CVX) -2.5%, Royal Dutch Shell (NYSE:RDS.A) -2.7%, Phillips 66 (NYSE:PSX) -4.5%, and ConocoPhillips -2.1%.
    • Related ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | 187 Comments
  • Wed, Aug. 12, 3:58 PM
    • A federal judge approves Exxon Mobil's (XOM +1.7%) $5M settlement of charges it violated the federal Clean Water Act and state environmental laws in connection with a 2013 oil spill in Arkansas.
    • The judge says the agreement complies with the Clean Water Act and is fair to the company and the governments, and rejects a request by the water utility that serves Little Rock to have XOM move another portion of the pipeline that runs beneath a major reservoir.
    • The rupture of XOM's Pegasus pipeline led to a March 2013 spill that caused ~3,190 barrels of oil to flow through Mayflower, Ark., and nearby waterways.
    | 2 Comments
  • Tue, Aug. 11, 10:59 AM
    • Many oil companies have been hit hard by low crude prices, but Chevron (CVX -2.4%) also is battling its own expansion ambitions, and some analysts say CVX should abandon its goal of tapping 3.1M bbl/day of oil and gas by 2017, WSJ's Daniel Gilbert writes.
    • CVX’s stock price has underperformed Exxon Mobil (XOM -1.7%) and Royal Dutch Shell (RDS.A -0.6%) over the past year after topping them during the previous five years and betting more than them on huge energy projects such as the $54B Gorgon natural gas export plant in Australia.
    • "The most important thing to preserve is value,” said IHS Energy's Lysle Brinker, and "if it means they have to sell some of their crown jewels, or small slivers of them, to raise billions of dollars and help maintain the balance sheet and the dividend, that’s what they should do."
    | 52 Comments
  • Fri, Jul. 31, 7:46 PM
    | 69 Comments
  • 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)
    | 41 Comments
  • 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
    | 56 Comments
  • 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."
    | 40 Comments
  • Mon, Jul. 6, 3:15 PM
    • WTI crude oil settled at a three-month low $52.53/bbl, -7.7%, on a confluence of worries about the Greece debt drama, China’s stock markets and a new flood of Iranian oil; Brent crude fell to $56.50, -6.3%, to snap its 100-day MA.
    • WTI has dropped 10% over three straight sessions and Brent more than 7% lower in two consecutive days, breaking out of the narrow trading band of the past three months and risking a deeper slide ahead.
    • The energy sector (XLE -1.3%) is easily the worst performing equity group today: CLR -7.4%, NOG -7.8%, OAS -8.5%, DNR -6.7%, WLL -6%.
    • Oil supermajors also are sharply lower: XOM -1%, COP -2.8%, CVX -1.1%, BP -3.3%, TOT -3%.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, TWTI, OLEM
    | 93 Comments
  • Thu, Jun. 25, 12:17 PM
    • Penn Virginia (PVA +7.8%) spikes higher after a report that BP (BP +0.3%) has offered $8/share in a takeover bid for the company, and that PVA has hired BofA to help it search for potential buyers.
    • PVA is said to have rejected the offer because it believes the terms offered undervalue the company, and is holding out for at least $10/share, according to U.K. publication Proactive Investors.
    • BP rivals such as Exxon Mobil (XOM -0.1%) and Chevron (CVX -0.1%) also may be interested in buying PVA, the report says.
    | 15 Comments
  • Thu, Jun. 18, 11:57 AM
    • PBF Energy (PBF +16.5%) agrees to acquire Chalmette Refining, a joint venture between Exxon Mobil (XOM +1.2%) and Venezuela's PDVSA consisting of the 189K bbl/day Chalmette Refinery in Louisiana and related logistics assets, for $322M.
    • PBF says the acquisition will increase its total throughput capacity by 35% to more than 725K bbl/day and should be ~20% accretive to 2016 consensus earnings in the first year of operation.
    | 8 Comments
  • Mon, May 11, 2:56 PM
    • Exxon Mobil (XOM -1.6%) and Imperial Oil (IMO -0.8%) say they have started bitumen production at the $2B Cold Lake Nabiye project expansion in Alberta.
    • XOM says the expansion adds ~20K bbl/day to what is already the largest oil sands operation in Canada, which could double to 40K barrels soon, bringing the total capacity to nearly 200K bbl/day.
    • Cold Lake is the largest and longest-running in-situ oil sands operation in Canada, and includes five steam generation and bitumen production plants; the operation produced an average 150K bbl/day of bitumen in recent years.
    | Comment!
  • Fri, May 1, 3:57 PM
    • Chevron's (CVX -1.9%) top priority is maintaining a dividend that’s “competitive and growing,” CFO Patricia Yarrington said in today's earnings conference call, but WSJ's Maxwell Murphy writes that the company needs a surge in cash flow to maintain its dividend and capital spending.
    • In its Q1 earnings report, CVX said its operating cash flow was $2.3B - less than a quarter of its combined capex and dividend; the company's $33.9B debt now tops that of rival Exxon (NYSE:XOM) even though CVX has roughly half the annual revenue.
    • Yarrington said CVX will take a multi-pronged approach to generating enough cash, boosting cash flow through production growth while trimming its cost structure and capex budget, and selling assets; she said CVX had disposed of $10B in assets over the past 16 months, putting it well on track to achieve its $15B four-year plan.
    | 15 Comments
  • Thu, Apr. 30, 8:05 AM
    • Exxon Mobil (NYSE:XOM): Q1 EPS of $1.17 beats by $0.35.
    • Revenue of $67.62B (-36.7% Y/Y) beats by $14.47B.
    • Shares +1.6% PM.
    • Press Release
    | 40 Comments
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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.