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Exxon Mobil Corporation (XOM)

- NYSE
  • Fri, Jul. 31, 7:46 PM
    | 66 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
    | 55 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
  • Tue, Apr. 14, 12:58 PM
    • Canadian Oil Sands (OTCQX:COSWF +5.5%), the company with the largest stake in oil sands miner Syncrude Canada, is a prime takeover target and its most likely suitor is Imperial Oil (IMO +1.9%), the company with the second-largest stake, says FirstEnergy Capital analyst Michael Dunn.
    • The analyst says his report is partly based on recent investor meetings with senior IMO execs who believe now is a good time to consider making acquisitions.
    • Dunn thinks IMO would not want to pay more than a price in the low teens for COSWF, so its stock would have to fall further to make a bid attractive, and he suggests the company would not want to take on excessive debt - which could mean an equity-based offer, help from its controlling shareholder, Exxon Mobil (NYSE:XOM), or enrolling a current Syncrude partner such as Suncor (NYSE:SU).
    | 7 Comments
  • Mon, Mar. 30, 3:58 PM
    • Exxon Mobil (XOM +2.4%) says it began production at its Hadrian South gas development in the deepwater Gulf of Mexico with facilities tied back to the nearby Lucius project, reducing additional infrastructure requirements.
    • XOM expects daily gross production from Hadrian South, its deepest subsea tie-back in nearly a mile and a half of water, to reach ~300M cf of gas and 3K barrels of liquids from two wells.
    • Hadrian South is a subsea production system with flowlines connected to the Anadarko-operated Lucius truss spar, which started production in January.
    • With the startup of Hadrian South and Lucius, XOM's total Gulf of Mexico net production capacity has increased by more than 45K boe/day.
    • XOM holds a 46.7% interest in Hadrian South, with partners Petrobras (NYSE:PBR) at 23.3% and Eni (NYSE:E) holding a 30% stake; XOM owns a 23.3% interest in Lucius.
    | 2 Comments
  • 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.
    | 33 Comments
  • Mon, Mar. 9, 3:35 PM
    • Analysts are mostly positive on Whiting Petroleum (WLL +10.8%) after WSJ's report that the company is looking to sell itself, particularly seeking out Statoil (STO -1.7%) to make a bid.
    • WLL is a prime takeover candidate, given its attempt to sell itself in 2012, BofA Merrill says as it maintains its Buy rating and $45 price target, adding that the scale of WLL's assets has increased significantly because of its Kodiak acquisition and could attract large energy companies with strong balance sheets such as Exxon (NYSE:XOM), Chevron (NYSE:CVX) and Hess (NYSE:HES).
    • WLL could get a strong price because of its rich assets in the Bakken Shale; on the other hand, investors have become particularly concerned about E&P companies that are heavily focused on a single region, as WLL is in the Bakken.
    • UBS analyst Betty Jiang points out some hurdles to a potential deal, including a wide price differential between buyers and sellers, and potential acquirers' apparent preference for buying land in areas that are cheaper than the Bakken.
    | 6 Comments
  • Wed, Feb. 18, 1:22 PM
    • Already under pressure amid last night's news of The Oracle's exit from the stock, Exxon Mobil (XOM -2.4%) hits session lows on reports of an explosion at its refinery in Torrance, CA. Police and fire are on the scene and roads have been closed.
    • Exxon confirms an "incident" at the refinery.
    | 9 Comments
  • Thu, Feb. 12, 2:14 PM
    • If Exxon Mobil (XOM +1.6%) decides to go hunting for struggling energy peers with shrinking cash flow - as it did five years ago when it acquired XTO Resources for $25B, during an energy rout worse than today's - it would need to go big or not go at all in order to meaningfully boost its oil and gas reserves, WSJ writes as it discusses BP (BP +2.1%) as a potential takeover target.
    • BP “is the obvious fit says Wolfe Research's Paul Sankey; buying BP, which is still dealing with the fallout of the 2010 Gulf of Mexico oil spill, “would close out a damaged brand at a terrific price” and bolster XOM’s capacity to find new sources of oil and gas, he says.
    • Other potentially attractive targets singled out by analysts include a smaller tier of companies such as Anadarko (APC +1.9%) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY), which have discovered huge deposits of oil and gas but may lack the cash flow to develop them quickly.
    | 37 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.