64.77 +0.12 (0.19%)
After hours: 7:48PM EST
|Bid||64.75 x 2900|
|Ask||64.77 x 3100|
|Day's Range||64.63 - 65.20|
|52 Week Range||64.63 - 83.49|
|Beta (5Y Monthly)||1.00|
|PE Ratio (TTM)||18.84|
|Earnings Date||Jan 30, 2020|
|Forward Dividend & Yield||3.48 (5.38%)|
|Ex-Dividend Date||Nov 07, 2019|
|1y Target Est||77.76|
In the midst of all these companies abandoning the algal biofuel mission, however, one company has held strong to its ambitions and promises within the sector. That company is ExxonMobil
After several days of losses, oil prices stabilized on Tuesday morning after OPEC and partners announced their intent to extend output cuts till June of this year
Big Oil will be in focus this week with supermajors ExxonMobil (XOM) and Chevron (CVX) reporting fourth-quarter earnings on Friday.
A U.S. court decision last week striking down three biofuel waivers that the Environmental Protection Agency gave oil refineries in 2017 has cast doubt on the legitimacy of dozens of other EPA exemptions granted under similar circumstances, according to industry experts and agency data. Under the U.S. Renewable Fuel Standard, oil refineries are required to blend billions of gallons of biofuels such as ethanol into their fuel or buy credits from those that do. The biofuel industry has been incensed by a near quadrupling of waivers granted by the Trump administration, saying it is undermining demand for corn-based ethanol.
(Bloomberg) -- It’s almost as if the last decade never happened for Exxon Mobil Corp. shares.Once the gold-standard of Big Oil, the stock closed Monday at its lowest since October 2010, amid a slump in oil prices due to concerns about weak demand coupled with a glut. The S&P 500 also posted its worst one-day decline since October.But for Exxon, which dropped out of the index’s top 10 largest companies by market value for the first time last year, the malaise runs deeper than the state of the crude market.Chief Executive Officer Darren Woods is running a counter-cyclical strategy by plowing money in new oil and gas assets, at a time when many investors are urging energy companies to improve returns for shareholders. Some shareholders are even demanding a plan to move away from fossil fuels altogether.Exxon is betting on a “windfall of cash” to arrive from its investments sometime in the mid to late 2020s, said Noah Barrett, a Denver-based energy analyst at Janus Henderson, which manages $356 billion. “Right now there’s higher value placed on generating cash flow today.”Exxon is ramping up capital spending to more than $30 billion a year, without a hard ceiling, as it develops offshore oil in Guyana, liquefied natural gas in Mozambique, chemical facilities in China and the U.S. Gulf Coast, as well as a series of refinery upgrades. Woods is convinced the world will need oil and gas for the foreseeable future and sees an opportunity for expansion while competitors shy away from such long-term investments.Most of these investments “will not meaningfully begin contributing to earnings/cash flow until the 2023-2025 time frame,” Scotiabank analysts led by Paul Cheng said in a Jan. 23 note, downgrading the stock to the equivalent of a sell rating from hold. “We think it may be another one to two years before the market gives these efforts much credit.”In the short term, one consequence of those investments is that Exxon can’t fund dividend payouts with cash generated from operations, and must instead rely on asset sales and borrowing, according to Jennifer Rowland, an analyst at Edward Jones & Co. Exxon is the “clear outlier” among Big Oil companies on that front, she said. Exxon declined to comment.Exxon’s current challenges stem in large part from flag-planting deals made when commodity prices peaked during the past decade. It spent $35 billion on U.S. shale gas producer XTO Energy Inc. in 2010 when shale oil promised outsize returns. It has invested $16 billion in Canadian oil sands since 2009, only to remove much of those reserves from its books. Former CEO Rex Tillerson’s 2013 exploration pact signed with Russia was caught behind a wall of sanctions and later abandoned.Also read: Exxon in ‘Bull’s-Eye’ as Worst Year Since Reagan Nears End (Updates with analyst’s comment in 7th paragraph.)To contact the reporter on this story: Kevin Crowley in Houston at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Christine Buurma, Reg GaleFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
ExxonMobil's (XOM) fourth-quarter 2019 profits are expected to have been affected by lower commodity prices and weak downstream earnings, partially offset by higher production.
The stock has lost 7.2% over that period, which is about the same as Exxon Mobil’s total return in 2019 including dividends. Exxon’s (ticker: XOM) drop comes as oil has fallen into a bear market, and natural gas has dropped below $2 per million British thermal units, the lowest level in about four years. Exxon has also faced other difficulties.
ExxonMobil (XOM), Chevron (CVX), Royal Dutch Shell plc (RDS.A) and BP plc (BP) are scheduled to come out with fourth-quarter earnings in the next few days.
At Exxon Mobil Corp , CEO Darren Woods' plan to revive earnings at the largest U.S. oil and gas company is being sidetracked by the two businesses he knows best: chemicals and refining. Another year of poor profit could require Exxon to re-evaluate its bold spending plans or weaken its ability to weather the next oil-price downturn, say oil analysts. Exxon already must borrow or sell assets to help cover shareholder dividends.
(Bloomberg) -- Oil fell to the lowest since October as China’s deadly coronavirus crippled the world’s second-largest economy and threatened worldwide energy demand.Futures shed 1.9% on Monday in New York. The coronavirus’s death toll climbed to at least 80 people and additional cases of infections underscored concerns that China has failed to contain the deadly virus despite its efforts to control the outbreak. China extended the Lunar New Year holiday by three days until Feb. 2, while companies in Shanghai have been asked not to start work until at least Feb. 9.The virus is the latest upheaval for the oil market, which has been struggling with demand concerns for months. Investors are selling crude and other commodities amid a broad withdrawal from riskier assets and fears the virus will curtail fuel consumption as travel is restricted. U.S. gasoline futures touched an 11-month low in intraday trading.Still, oil pared some of its earlier losses as Saudi Arabia assured markets that the world’s biggest crude exporter is closely monitoring the situation and its impact on oil markets.“I think it’s relieving some of the pressure,” Michael Lynch, president of Strategic Energy & Economic Research Inc. The Saudis are signaling that once the impact of the virus is clearer, they’re “willing to re-balance the markets,” Lynch said.Investors shrugged off an escalating crisis in Libya that could see the country’s output plummet to 72,000 barrels a day from 262,000 barrels according to National Oil Corp. Chairman Mustafa Sanalla.“The market is in a free-fall right now,” said Mark Waggoner, president of Excel Futures Inc. “Unless Libya is a big disruption to supply, everyone is going to concentrate on China,” he said.West Texas Intermediate for March delivery fell $1.05 to end the session at $53.14 a barrel at the New York Mercantile Exchange.Brent futures lost $1.37 to end at $59.32 a barrel on the London-based ICE Futures Europe exchange, putting its premium over WTI at $6.18 a barrel.The recent decline in prices could persist or worsen if the virus continues to spread, says Waggoner. “It’s going to get worse before it gets better. We need to see crude oil reach $50.50 before it becomes a buying opportunity again,” he said.See also: Viral China: Behind the Global Race to Contain a Killer Bug\--With assistance from Rakteem Katakey, Javier Blas, Saket Sundria and Aaron Clark.To contact the reporter on this story: Jackie Davalos in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: David Marino at email@example.com, Mike Jeffers, Catherine TraywickFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Exxon Mobil Corp. and Chevron Corp. are slated to report fourth-quarter earnings amid heightened worries for oil demand.
The Zacks Analyst Blog Highlights: ExxonMobil, ConocoPhillips, Valero Energy, Marathon Petroleum and Talos Energy
ExxonMobil Ups Guyana Recoverable Resources to More Than 8 Billion Oil-Equivalent Barrels, Makes Discovery at Uaru
U.S. stock index futures fell sharply on growing concerns about the financial fallout of a fast-spreading coronavirus outbreak in China as the country extended the Lunar New Year holidays and more big businesses shut down. Several cities in China had been locked down for contagion fears and new cases were reported from across the world. Wynn Resorts Ltd, Melco Resorts & Entertainment Ltd and Las Vegas Sands Corp, which have large operations in China, were down between 5% and 7%.
(Bloomberg Opinion) -- Exchange-traded funds that cater to environmental, social and governance principles are being pitched as a way for investors to sleep with peace of mind, but they better be prepared to wake up with something less than dreamy returns.Consider the iShares MSCI USA ESG Select Social Index Fund (SUSA), one of the oldest and largest ESG ETFs on the market. SUSA, which tracks the 100 stocks with the highest ESG ratings, has trailed the S&P 500 Index by 37 percentage points during the past 10 years.(1) (I honed in on SUSA because it has a long-term track record. Most ESG ETFs are very new.) The reason it lagged taps into one of the most important yet underreported aspects of ESG funds: surprising exclusions. While some of the stocks excluded from SUSA are obvious, such as Exxon Mobil Corp. and Lockheed Martin Corp., some are less obvious, such as Amazon.com Inc., Netflix Inc., Ross Stores Inc. and Mastercard Inc. — all of which are up more than 1,000% during the past 10 years. Not having stocks like these is why SUSA couldn’t keep up with the overall market. Not to pile on here, but SUSA’s underperformance also came with a higher standard deviation, or level of volatility.This potential for underperfomance is why I think investors should take what I call “The Amazon Test” before buying an ESG ETF. It has two parts. The first is to simply ask whether you are willing to miss out on the next Amazon to “clean up” your portfolio. Or even better, if you want to do the leg work, compare the ESG ETF’s holdings to the appropriate broad index and comb through the differences. You may be surprised by what is included in the ETF. (In SUSA’s case, it does hold Facebook Inc. and Nike Inc., which many may find questionable.) I can guarantee investors will probably be a bit baffled.Of course it’s possible that the next Amazon is already in your ESG ETF and that the fund outperforms the market and everyone’s happy. SUSA could very well beat the market during the next 10 years. But investors need to be ready in case it doesn’t.I was curious how people would respond to this question, so I ran an informal Twitter poll and found that only a fifth of people were both interested in ESG and satisfied with missing the next Amazon. That means more than half of ESG-interested investors did not want to miss out on an Amazon, which tends to be excluded from ESG funds because of working conditions that put it on a worker-rights group’s “Dirty Dozen” list of the most dangerous employers in the U.S. Of course, not only highfliers are excluded from many ESG ETFs; so are some of the country’s most revered companies, which many people probably want to own. The best example is Warren Buffett’s Berkshire Hathaway Inc., which is included in fewer ESG ETFs than Exxon and is practically excluded from all of them. It’s the second-lowest-ranked company by Sustainalytics(2) among the S&P 100 Index. Essentially, investors can have ESG or Buffett, but not both. So why is Buffett, one of the greatest investors and philanthropists the world has ever seen, not in these funds? One big reason is Berkshire’s board is only 57% independent, well below the 86% average. Buffett has signaled no intention of changing the company’s business practices. He implied the independent board is a poor metric, saying many such boards he has been on are independent on paper only, with many directors just looking for a payday and typically following the CEO’s lead. Buffett has also said he doesn’t want to burden subsidiary companies, one of which operates coal-fired plants, with unnecessary rules and costs.“We’re not going to spend the time of the people at Berkshire Hathaway Energy responding to questionnaires or trying to score better with somebody that is working on that. It’s just, we trust our managers and I think the performance is at least decent and we keep expenses and needless reporting down to a minimum at Berkshire.”Some have pushed back, saying that “surprising exclusions” are nothing new and exist in other areas such as smart-beta and theme ETFs. This is true, but there is one crucial difference: Those ETFs aren’t generally seeking to replace an investor’s entire equity portion of the portfolio. Because if the goal is to “sleep at night,” then what’s the point of putting a small allocation into an ESG ETF while still investing in other funds, like the Vanguard 500 Index Fund, which hold those “bad” companies you don’t want?(3)For those who are interested in ESG and don’t mind missing out on the next Amazon, the next part of my test is to ask whether they are willing to curb their consumption of the goods and services provided by those excluded companies. For example, are you going to continue to shop at Amazon, drive an SUV or take airplanes 10 times a year? If so, then what’s the point of not owning those stocks? You are just going to rob yourself of profits you helped create. I did an informal poll on this, too, and found only a fifth of those who were willing to miss out on Amazon were also willing to not shop there. Now, I’m not saying you need to live in the woods and eat bugs to be pure enough to be an ESG investor, but you should probably be willing to make some inconvenient choices as a consumer — because, let’s be honest, that’s where investors can truly make a company pay attention. Otherwise, a lot of this is demand trying to demonize supply to soothe its guilt and feel good inside. At the end of my little screening system here we are left with 5% of the investing world that I’d argue has the stomach and commitment to be messing around with ESG ETFs.(5) The rest either just don’t want ESG or are slacktivists — people who want to feel as if they are doing something but are unwilling to make any inconvenient sacrifices such as lagging the market or curbing parts of their lifestyles. These investors should probably just stick with owning the broad market. And while 5% may seem like a small amount, it would actually be a pretty solid base of investors for these ETFs. To convert that into dollars, 5% of ETF assets would equate to $200 billion, a respectable category. Currently, ESG ETFs have only about one-tenth of that amount. And yet there are about 100 products on the market. That’s $200 million per ETF, which is five to 10 times below the average of many other popular areas. Supply has so far outpaced the hype and demand in a way that’s never been seen in the ETF market.And it doesn’t look as if product proliferation will be slowing anytime soon. BlackRock’s Larry Fink recently announced a doubling of the company’s ESG ETF lineup, which means due diligence will be that much more cumbersome. And while this may come off as a bit of a downer to all the excitement around ESG, that’s not my intention. I’m not anti-ESG at all, but I am anti-nasty surprise. I just want to help make sure investors wake up with peace of mind, too.(1) SUSA has also lagged since inception in 2005 by 33% and by 4% over the past 5 years, though it is outperforming by 1% over the past year. And to show I'm not cherry-picking, the other veteran ESG ETF, the iShares MSCI KLD 400 Social ETF (DSI), has lagged the market by 30 percentage points over the past 10 years.(2) An equal-weighted basket of the 20 stocks in the S&P 100 with the lowest Sustainalytics Ranking outperformed the S&P 500 Index by 41% over the past seven years. Sustainalytics is an ESG research and ratings platform whose scores are used on the Bloomberg Terminal.(3) Now, if investors are seeking ESG ETFs because they think there is some premium to capture that can add alpha to their portfolios and they are only allocating a little, then there is less need for this test (although you can never go wrong with looking under the hood of a fund). But largely, ESG ETFs are being pitched and talked about as a “sleep at night” replacement, or a way to support companies that align with investors’ values.(4) Add in the fact that most people don’t know what ESG even stands for, let alone how the scoring systems (which all vary by the way) work, and you get a situation where the product proliferation and hype has far outpaced the education needed to use them.To contact the author of this story: Eric Balchunas at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Eric Balchunas is an analyst at Bloomberg Intelligence focused on exchange-traded funds.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
ExxonMobil, operator of the Stabroek Block offshore Guyana, on Monday reported an oil discovery at the Uaru exploration well, located near the producing Liza field.
With the arrival of coronavirus, information that might have been relevant no longer is. Forget December’s durable-goods orders and fourth-quarter GDP. What really matters is this latest crisis.