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Exxon Mobil Corporation (XOM)

  • Tue, Oct. 6, 12:44 PM
    • Chevron (CVX +2.7%) could enjoy "a step forward" in its Q3 results vs. other oil majors such as Exxon Mobil (XOM +1.4%), ConocoPhillips (COP +2.9%) and Canadian Natural Resources (CNQ +4%) that are likely to muddle through another tough quarter for earnings, free cash flow and leverage creep, J.P. Morgan's Phil Gresh writes.
    • The analyst sees an opportunity for CVX to take a step forward with rebuilding investor confidence around the long-term cost reduction and dividend coverage story, although the real uplift will have to come with an on-time Gorgon startup, which is still slated for Q1 2016; he rates the stock as Overweight.
    • JPM has lowered its 2016-18 EPS estimates for natural gas prices in North America and Europe, which now show limited potential for recovery over the next few years and are considered most impactful for Neutral-rated XOM and CNQ and Underweight-rated COP.
    | Tue, Oct. 6, 12:44 PM | 13 Comments
  • Wed, Sep. 30, 4:45 PM
    • PBF Energy (NYSE:PBF+8% AH after agreeing to acquire the 155K bbl/day Torrance, Calif., refinery and related logistics assets from Exxon Mobil (NYSE:XOM) for $537M.
    • The refinery has been shut down since an explosion in February injured four contractors and caused heavy damage, leading to a shortage of gasoline and higher prices at the pump for drivers in California.
    • The Torrance refinery provides 10% of the state’s capacity and 20% of the capacity in Southern California, and the explosion forced XOM to cut production to less than 20%, causing the spike in gas prices.
    • PBF says the refinery will be restored to full working order prior to close, and expects the deal to be immediately accretive to earnings.
    • Coupled with its previously announced Chalmette acquisition, PBF says it will have increased its refining capacity by more than 60% to ~900K bbl/day and added meaningful Gulf coast and west coast assets to its refining system.
    | Wed, Sep. 30, 4:45 PM | 13 Comments
  • Fri, Sep. 18, 11:35 AM
    • Exxon Mobil (XOM -1.9%) is actively hunting for shale bargains in west Texas, as executives with its XTO Energy shale drilling unit meet with small, closely held producers in the Permian Basin to negotiate possible purchases and joint ventures, Bloomberg reports.
    • XOM is expanding its use of a new strategy first deployed in the region last year that offers operators a cut of future proceeds rather than big upfront stock or cash payouts, according to the report.
    • XOM has bought drilling rights or funded partnerships in five Permian Basin transactions during the past 20 months, and now controls drilling rights to 1.5M acres in the Permian region, more than twice the size of its holdings in Iraq or the U.K. sector of the North Sea.
    • The oil downturn brings plenty of bargains from distressed operators, faced with the choice of shutting down rigs and wait it out or surrender some independence to a deep-pocketed savior in exchange for a shot at a future windfall.
    | Fri, Sep. 18, 11:35 AM | 12 Comments
  • Fri, Sep. 18, 9:47 AM
    • BP (BP -2.3%) is expected to continue as operator of the ACG oil field complex after the current production-sharing deal expires, according to Azerbaijan state oil company Socar.
    • The comments signal a thawing in BP’s relations with the Azeri government, after the president three years ago blamed an unexpected decline in oil output from the ACG fields on “grave mistakes” by BP.
    • BP gets ~5% of its oil output from Azerbaijan; others in the ACG development group include Chevron (CVX -2.6%), Exxon (XOM -2.7%) and Statoil (STO -2.4%).
    | Fri, Sep. 18, 9:47 AM | Comment!
  • Wed, Sep. 16, 10:45 AM
    • Exxon Mobil (XOM +1.5%) says it has started production at its new Erha North project offshore Nigeria five months ahead of schedule and $400M under budget.
    • The deepwater project includes seven wells, with expected peak production of 65K bbl/day of oil, and will be tied to an existing Erha North floating production, storage and offloading vessel, helping reduce infrastructure.
    • XOM also affirms its forecast for 2% production growth in 2015 to 4.1M boe/day, driven by 7% liquids growth.
    | Wed, Sep. 16, 10:45 AM | 12 Comments
  • Wed, Sep. 9, 9:53 AM
    • Oil Search (OTCPK:OISHF) will reject a demand by suitor Woodside Petroleum (OTCPK:WOPEF, OTCPK:WOPEY) to hold exclusive talks as part of its A$11.6B takeover offer, potentially paving the way for Exxon Mobil (XOM +1.5%) to emerge as a rival bidder, Sydney Morning Herald reports.
    • XOM is the operator and largest shareholder in Oil Search's Papua New Guinea liquefied natural gas project, and is said to have held an informal meeting with Oil Search CEO Peter Botten​ in the country yesterday.
    • Macquarie analysts believe that XOM, as operator of PNG LNG, is unlikely to make any due diligence process easy for Woodside given sensitivities around early work it is performing on the P'nyang and Elk-Antelope gas fields; Bernstein's Neil Beveridge expects upward revisions to Woodside's offer for Oil Search and counter bids possibly from XOM, "who would be the most likely competitor."
    | Wed, Sep. 9, 9:53 AM | 6 Comments
  • Tue, Sep. 1, 3:58 PM
    • Citigroup's energy analysts defend their bullish take on big oil stocks such as ConocoPhillips (COP -2.6%), Total (TOT -2.1%) and Statoil (STO -4.5%), pointing to 30-year valuation lows, upside asymmetric risk on oil prices and signs that managements are doing enough to turn the corner on better capital allocation and cost-cutting.
    • Favoring COP, TOT and STO, the firm says its sector investment criteria are (1) growth - companies that have near-term growth are less reliant on simply cutting costs; (2) better capital allocation - combined with growth, it should deliver 2-3x the ROE uplift than cost-cutting can; and (3) a strong enough balance sheet to manage the early part of the cycle.
    • Citi is staying away from Exxon Mobil (XOM -4%) because of its valuation premium to peers and low growth and from Chevron (CVX -3.2%) due to its slow response in a lower commodity world.
    | Tue, Sep. 1, 3:58 PM | 28 Comments
  • 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.
    | Tue, Aug. 25, 3:33 PM | 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.
    | Tue, Aug. 25, 10:20 AM | 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.
    | Mon, Aug. 24, 3:27 PM | 30 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%.
    | Fri, Aug. 21, 1:31 PM | 191 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.
    | Wed, Aug. 12, 3:58 PM | 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."
    | Tue, Aug. 11, 10:59 AM | 52 Comments
  • Fri, Jul. 31, 7:46 PM
    | 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)
    | Fri, Jul. 31, 3:26 PM | 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
    | Fri, Jul. 31, 8:24 AM | 56 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.