Latest news with #PioneerNaturalResources
Daily Mail
7 days ago
- Business
- Daily Mail
America's energy revolution goes from boom to bust after Trump's tariffs and sneaky move by Saudi Arabia
Oil bosses have warned that America's energy boom is over, as Trump's tariffs raise production costs and crude prices fall thanks to an increase in production from Saudi Arabia. The shale revolution of the last few years delivered huge volumes of cheap oil and gas that powered the US economy and broke dependence on foreign imports from places such as Iran, Russia and Venezuela. Production hit record highs under President Joe Biden, but is now falling under Trump. The situation presents a direct contradiction to the President's pledges to 'drill baby drill' and assert America's 'energy dominance.' Trump's aggressive trade policies have pushed up the prices of vital materials needed for oil production such as steel, aluminum and casing. At the same time, oil prices are tumbling because the OPEC cartel has decided to flood the market by increasing production. OPEC is a group of oil-producing companies, including Saudi Arabia, the UAE and Iraq, that work together to influence the global oil market and maximize profit. Riyad's shock decision to pump more oil in recent months will threaten America's share of the global oil market, Scott Sheffield, the former head of shale driller Pioneer Natural Resources, told the Financial Times. 'Saudi is trying to regain market share and they'll probably get it over the next five years,' Sheffield explained. US shale producers need oil prices of around $65 a barrel to break even, according to the the Federal Reserve Bank of Dallas. But prices are currently $61.53 a barrel, down 23 percent from this year's high point. US shale producers, such as ExxonMobil and Chevron, are slashing capital expenditure by about $1.8 billion for this year, abandoning rigs, and slashing jobs. Chevron and BP have between them announced 15,000 job cuts across the globe. Bosses have warned the worst is still to come. 'In this environment, we drop the rigs and buy back stock,' Travis Stice, chair and CEO at Diamondback Energy, told the Financial Times. The west Texas-based producer warned earlier this month that US production has now peaked as oil prices continue to slide. 'Every single conversation I've had is that this oil price won't work,' Stice warned. Oil bosses Travis Stice (left) and Clay Gaspar (right) warned that US production is in trouble Other bosses have also laid out the reality of higher costs and lower profits. 'We're on high alert at this point,' Clay Gaspar, CEO at Devon Energy in Oklahoma City, told investors earlier this month. 'Everything is on the table as we move into a more distressed environment.' US oil output is expected to fall 1.1 percent in the next year, according to S&P Global Commodity Insights. This would mark the first annual decline in a decade, excluding 2020 when the pandemic collapsed demand and prices. This triggered a wave of bankruptcies across Texas and North Dakota.
Yahoo
03-05-2025
- Business
- Yahoo
ExxonMobil Continues to Prove It's the Best-Run Company in the Oil Patch
ExxonMobil delivered industry-leading financial results in the first quarter. That empowered it to return an industry-leading amount of cash to its shareholders. The oil company expects to improve upon its performance in the coming years. ExxonMobil (NYSE: XOM) is the 800-pound gorilla in the oil sector. It's not only the industry's biggest company by market capitalization (over $450 billion), but also the leader across several crucial categories. The oil company showcased its prowess in the first quarter when it delivered industry-leading performance amid challenging market conditions. Here's a look at the quarter and the key factors fueling ExxonMobil's success. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » ExxonMobil's recent first-quarter results were nothing short of exceptional, considering the market conditions during the period. The company delivered industry-leading earnings of $7.7 billion, or $1.76 per share, which beat analysts' expectations by $0.01 per share. It also led the sector by producing $13 billion in cash flow from operations while generating $8.8 billion in free cash flow. The company delivered stronger-than-expected earnings despite a significant decline in industry refining margins, weaker crude oil prices, lower base production volumes from some noncore assets sales, and higher expenses from growth initiatives. One factor fueling its strong results was its robust oil and gas production in the quarter. Exxon's output averaged 4.6 million barrels of oil equivalent (BOE) per day. That was up an eye-popping 20% from the prior-year period, driven by its acquisition of Pioneer Natural Resources last year. The other big catalyst was Exxon's industry-leading structural cost-savings program. That strategy is now saving the company $12.7 billion annually compared to 2019's level, which is more than all other international oil companies (IOCs) combined. The company captured an additional $600 million of cost savings via this program during the first quarter. The combination of investments to grow its volumes and structural cost savings added $4 billion to the company's bottom line during the first quarter, which helped offset some of the impact of inflation and other factors on its earnings. Exxon's industry-leading cash flow enabled it to deliver industry-leading shareholder returns. The oil giant sent $9.1 billion of cash to its investors during the quarter, including buying back a sector-leading $4.8 billion of its stock. That has the company on track to repurchase about $20 billion of shares this year. Exxon also paid $4.3 billion in dividends. The company delivered its sector-leading 42nd consecutive annual dividend increase earlier this year. Only 4% of companies in the S&P 500 (SNPINDEX: ^GSPC) have delivered dividend growth of 42 years or more. The company's elite balance sheet played a key role in its ability to return cash to investors. The company ended the quarter with $18.5 billion in cash on hand. While that was down from $23.2 billion at the end of the fourth quarter, it maintained industry-leading leverage ratios of 12% debt-to-capital (down from 13% in the fourth quarter) and 7% on a net basis after factoring in its massive cash balance (up from 6% at the end of last year). That gives it lots of cushion to weather lower oil prices in the future. ExxonMobil firmly expects to improve upon its already industry-leading performance in the future. The company continues to invest heavily in expanding its advantaged resources, which are its lowest-cost and highest-margin assets. The company plans to start 10 advantaged projects this year, which will generate more than $3 billion of earnings next year at constant prices and margins. Meanwhile, even if prices and margins fall, these investments will still contribute to its financial results. The company is also on track to deliver $18 billion in structural cost savings by the end of 2030 compared to 2019's level. When added to its growth capital investments, Exxon expects to add $20 billion to its earnings and $30 billion to its cash flow by 2030. The oil giant's strategy of enhancing its earnings capacity also puts it in a stronger position to weather lower oil prices in the future. Meanwhile, it will significantly boost the company's upside potential if pricing improves. ExxonMobil continues to prove it's the best-run company in the oil industry. Its ability to produce industry-leading profits and return more cash to investors than anyone else has helped give it the fuel to produce peer-leading total returns (17% compound annual shareholder return over the past three years). With more earnings growth and cost savings ahead, Exxon is in a strong position to continue growing shareholder value in the future, making it an excellent oil stock to buy and hold for the long haul. Before you buy stock in ExxonMobil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ExxonMobil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $701,781!* Now, it's worth noting Stock Advisor's total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. ExxonMobil Continues to Prove It's the Best-Run Company in the Oil Patch was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
If You'd Invested $10,000 in ExxonMobil Stock 5 Years Ago, Here's How Much You'd Have Today
ExxonMobil is among the world's largest oil and gas producers. It is also a rock-solid dividend stock, with a 42-year streak of annual dividend increases. ExxonMobil has big growth plans through the end of the decade. Oil and gas exploration and production (E&P) isn't an easy business. It requires massive amounts of investments, and the earnings and cash flows of E&P producers are directly exposed to the volatility in oil and gas prices. Yet ExxonMobil (NYSE: XOM) -- the largest oil company in the U.S. -- has performed remarkably well over the decades, and its stock has generated rich returns for shareholders. In recent years, ExxonMobil has cut costs, expanded production capacity, grown its cash flows steadily, and increased its dividend years after year, all of which have been reflected in its share price. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » If you'd invested $10,000 in ExxonMobil stock five years ago, you'd have more than doubled your money to $24,200 by now, as of this writing. Even better, your investment would have tripled to nearly $30,600 today if you'd reinvested the dividends. Between 2019 and 2024, ExxonMobil saved more than $10 billion in costs, grew its earnings by over $15 billion, and added over $20 billion in cash flow from operating activities (CFO). The net result? The oil and gas giant returned nearly $140 billion to shareholders in the form of dividends and share repurchases over the period. Not surprisingly, ExxonMobil's stock price has appreciated steadily over the past five years or so. ExxonMobil has even bigger growth plans for the foreseeable future. The oil major acquired Pioneer Natural Resources in an all-stock deal worth $60 billion in 2023 and is trying hard to reduce its break-even price so that it can make money even at low oil prices. ExxonMobil believes it could add another $20 billion in earnings and nearly $30 billion in CFO by 2030. That should also mean bigger dividends -- ExxonMobil has increased its dividend for 42 consecutive years now and yields 3.6%. Steady earnings, cash flow, and dividend growth should continue to propel ExxonMobil stock higher in the long run. Before you buy stock in ExxonMobil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ExxonMobil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $598,818!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $666,416!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. If You'd Invested $10,000 in ExxonMobil Stock 5 Years Ago, Here's How Much You'd Have Today was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
Thinking About Buying Dividend Stocks During the 2025 Nasdaq Bear Market? Consider These Risks First.
Last week's rally in the broader stock market indexes sprung the Nasdaq Composite (NASDAQINDEX: ^IXIC) back upward after a more than 20% that technically put it into a bear market. However, it's apparent that market volatility may be far from over. Income investors looking at the current landscape may be wondering if now is the best time to buy dividend stocks given the wild swings to the upside and the downside. Here are some risks worth considering before buying dividend stocks and why ExxonMobil (NYSE: XOM) is a good example of a dividend stock that you can buy with confidence during a bear market. Investors who use dividends for financial planning or to supplement income in retirement will want to target companies with reliable payouts. After all, what good is a dividend if a company cuts it at the slightest sign of economic uncertainty? ExxonMobil has raised its dividend for 42 consecutive years -- which may come as a surprise given the ups and downs in the oil and gas industry. In the last decade alone, there was the crash of 2014 and 2015 and the plunge during the COVID-19 pandemic. In fact, ExxonMobil reported its worst year on record in 2020 -- a staggering $22.4 billion loss. Even during a period of high uncertainty and a collapse in the global economy, ExxonMobil kept its dividend streak alive in 2020 because it relied on the strength of its balance sheet. ExxonMobil's balance sheet is in its best shape in over a decade. ExxonMobil's net total long-term debt position is just $14.7 billion, which is small for a company of its size. Its financial debt-to-equity ratio of 0.08 and debt-to-capital ratio of 12.5% showcase how the company has reduced its dependence on debt and can rely on free cash flow to fund operating expenses and long-term investments. In fact, ExxonMobil has the lowest debt-to-capital ratio of the major integrated U.S. and European oil and gas companies -- a close second being its U.S. peer Chevron. ExxonMobil can support its dividend even if margins fall due to lower oil and gas prices. The company has considerably improved its cost structure and technological advancements that have reduced production costs. ExxonMobil has a long-term plan through 2030 built around Brent (the international benchmark) crude oil prices averaging $65 per barrel. However, it also has an optimistic scenario at $85 Brent and a pessimistic outcome at $55 per barrel. Even at $55 per barrel, ExxonMobil expects to earn a cash surplus of $110 billion from 2025 to 2030 thanks to higher free cash flow from its acquisition of Pioneer Natural Resources, development of onshore assets in the Permian Basin, production expansion offshore Guyana, and other moves. Brent crude oil prices averaged $81 per barrel in 2024 but have fallen in recent weeks due to tariff tensions, production increases in the Middle East, and recession fears. Brent crude oil is at a three-year low of around $63.60 at the time of this writing. But again, even at this level, the dividend is manageable -- although ExxonMobil may pull back on near-term capital expenditures if prices stay low. The third risk worth considering before scooping up shares of dividend stocks during a bear market is whether the company can endure a prolonged slowdown. Or, in this case, tariffs. Dividend affordability and a strong balance sheet are part of the equation, but so are competitive advantages. ExxonMobil can profit from its oil and gas production portfolio even at lower prices. Unlike some pure-play companies, ExxonMobil isn't dependent on a single geographic region. ExxonMobil also has a massive refining business and a growing low-carbon division. So, in the event of a slowdown, the company should be well positioned to take market share or even pounce on an acquisition opportunity. Not all dividend-paying companies have ExxonMobil's advantages. Some companies had strained balance sheets heading into 2025. Others have a dividend expense that is already eating up the bulk of profits. So, for these companies, if profits come down and stay down for too long, there could be pressure for a dividend cut. Dividends are an excellent way to collect passive income no matter what stock prices are doing -- allowing investors to book a return without having to sell stock. But a dividend is only as reliable as the company paying it. Despite operating in the cyclical oil and gas industry, ExxonMobil is a beacon of dividend reliability. With a yield of 4%, ExxonMobil is an excellent way to generate a sizable amount of passive income while staying invested in the market. Before you buy stock in ExxonMobil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ExxonMobil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $679,900!* Now, it's worth noting Stock Advisor's total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 14, 2025 Daniel Foelber has positions in Equinor Asa. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends BP and Equinor Asa. The Motley Fool has a disclosure policy. Thinking About Buying Dividend Stocks During the 2025 Nasdaq Bear Market? Consider These Risks First. was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
08-04-2025
- Business
- Yahoo
Why ExxonMobil Stock Soared 10.6% in Q1 While the S&P 500 Had Its Worst Quarter Since 2022
The S&P 500 may have logged its worst quarter since 2022 in the first three months of 2025 with its 4.6% drop, but shares of ExxonMobil (NYSE: XOM) defied the odds and returned 10.6% in Q1 this year, according to data provided by S&P Global Market Intelligence. ExxonMobil delivered solid numbers for 2024, generated billions of dollars in cash flows, increased its dividend for the 42nd consecutive year, and laid out plans to grow its earnings and cash flows significantly through 2030. Here's all you need to know. ExxonMobil announced its fourth-quarter and full-year 2024 numbers earlier this year. Having acquired Pioneer Natural Resources in an all-stock deal worth $60 billion last year, ExxonMobil's production in the Permian Basin and Guyana hit a record high in 2024. Although ExxonMobil's earnings fell around 6% in 2024 because of a $2 billion impairment in California due to regulatory hurdles to restarting production, it generated $55 billion in cash from operations and free cash flow worth nearly $31 billion on net income of $33.7 billion. ExxonMobil also saved $2.7 billion in costs during the year, and expects to save nearly $6 billion more in through 2030. These strong numbers explain why ExxonMobil remained steady in the beginning of 2025 despite weak crude oil prices. If you look at ExxonMobil's stock price chart, though, you'll see that much of the oil stock's gains in Q1 came in the second half of March. That's also when crude oil prices rebounded after falling steadily since mid-January. Brent crude oil, for instance, crossed the $70 per barrel mark by March 31 after slipping below $66 per barrel in the second week of the month. With President Donald Trump's sweeping tariffs toppling the stock markets and sending oil prices crashing on fears of a global recession, ExxonMobil stock has already given up all of its Q1 gains and then some, as of this writing. It's not the time to panic, though. ExxonMobil has survived bigger storms, and its 42-year unbeatable dividend growth track record is testimony to the company's resilience even during the worst of times. The oil giant expects to deliver another $20 billion in earnings through 2030 at a real Brent crude oil price of $65 per barrel. For the first quarter too, ExxonMobil's preliminary numbers hint at a sequential earnings growth, with a potential earnings growth of up to $900 million from its upstream business alone. Given ExxonMobil's history and solid cash-flow profile, this 3.8%-yielding stock is among the few you'd want to buy to play Trump's energy plans. Before you buy stock in ExxonMobil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ExxonMobil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $461,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $578,035!* Now, it's worth noting Stock Advisor's total average return is 730% — a market-crushing outperformance compared to 147% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 5, 2025 Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why ExxonMobil Stock Soared 10.6% in Q1 While the S&P 500 Had Its Worst Quarter Since 2022 was originally published by The Motley Fool Sign in to access your portfolio
