Latest news with #SheilaDang
Yahoo
07-05-2025
- Business
- Yahoo
Exxon agrees to supply Japan's Marubeni with low-carbon ammonia
By Sheila Dang HOUSTON (Reuters) -Exxon Mobil has signed a long-term agreement to supply 250,000 metric tons of low-carbon ammonia annually to Japanese trading house Marubeni, the U.S. oil producer said on Wednesday, representing Exxon's first signed customer agreement for its planned hydrogen facility in Baytown, Texas. The agreement is a step forward in Exxon's effort to build the world's largest low-carbon hydrogen facility at its Baytown refining and chemical complex, which has experienced delays. Hydrogen, which can be produced from natural gas, is a clean fuel that produces water when it is burned, while ammonia can be used as a carrier for hydrogen, allowing it to be shipped in liquid form. Carbon dioxide from the production of hydrogen will be captured and stored underground, the company said. "This is another positive step forward for our landmark project,' said Barry Engle, president of low carbon solutions at Exxon, in a statement. The customer agreement with Marubeni is contingent on whether Exxon makes its final investment decision to move forward with the Baytown hydrogen facility. Exxon said it expects to make that decision this year, which depends on favorable government policy and regulatory permits. Marubeni will also take an equity stake in Exxon's Baytown hydrogen facility, the companies said. An Exxon spokesperson declined to specify the percentage of the stake. (Reporting by Sheila Dang in Houston; Editing by Sonali Paul)
Mint
02-05-2025
- Business
- Mint
Big Oil earnings show split in production strategy, shareholder returns
Exxon and Shell maintain buybacks amid oil price slump Chevron and BP reduce buybacks due to market conditions Exxon benefits from Guyana oilfield, Chevron seeks entry By Sheila Dang and Shadia Nasralla HOUSTON/LONDON, May 2 (Reuters) - Big Oil's first-quarter earnings have shown a clear split in how companies are positioned to weather the downturn sparked by a slump in oil prices to a four-year low in April. Investors were focused on whether companies would cut share repurchases, since lower crude prices would leave them with less cash to fund the programs. Buybacks and dividends are key to investor interest in the oil industry. U.S. oil producer Exxon Mobil and UK-based Shell kept the pace of share buybacks. Their top rivals, U.S.-based Chevron and UK-based BP said they would reduce buybacks in the second quarter. The difference speaks to where each company is in its business cycle. Exxon has benefited from prolific production from its Guyana oilfield, the largest offshore oil find in at least a decade. A major player in the top U.S. oilfield, the Permian Basin, as well as in Guyana, Exxon increased production by 20% year-over-year. Both areas are highly profitable and the company is working to reduce its operating costs, said Exxon CEO Darren Woods. "In this uncertain market, our shareholders can be confident in knowing that we're built for this," Woods said in the company's first-quarter earnings statement. Oil prices recorded their largest monthly drop since 2021 this week as investors priced in the expected damage to the global economy - and contingent fuel demand - from U.S. President Donald Trump's trade policies. Exxon's net-debt-to-capital ratio was 7%. It was the only integrated oil company that did not increase net debt during the quarter, said Kim Fustier, head of European oil and gas research at HSBC. Chevron's first-quarter oil and gas production was flat compared to the previous year as growth in Kazakhstan and the Permian was offset by loss of production from asset sales. Earlier this year, the company announced it would lay off up to 20% of its staff as part of an effort to simplify the business and cut up to $3 billion in costs. Chevron is attempting to buy into the Guyana play through the acquisition of one of Exxon's minority partners in the project, Hess. Exxon is in arbitration over that deal, and claims to have the right of first refusal for Hess' stake in the field. Exxon repurchased $4.8 billion of shares during the first quarter, putting it on track to meet its annual target of $20 billion. Chevron said it would reduce buybacks to between $2 billion and $3.5 billion in the current quarter, down from $3.9 billion between January and March, which it said was a reflection of market conditions. "Exxon's low-cost production gave it room to hold the line on buybacks, with Chevron pulling back as weaker oil prices bite," said Jake Behan, head of capital markets at financial products firm Direxion. SHELL IMPRESSES, BP DISAPPOINTS In Europe, Shell's first-quarter earnings beat analyst expectations. The company said it planned to buy back $3.5 billion worth of shares over the next three months, the 14th consecutive quarter of a buyback program of at least $3 billion. BP missed earnings expectations with a 48% fall in profit to $1.4 billion and also slashed its share buyback program from around $1.8 billion to $750 million a quarter. After the disappointing results, BP could miss consensus expectations for second-quarter earnings by 20%, said Biraj Borkhataria, an analyst at RBC Capital Markets, in a note. "The combination of a weaker (free cash flow), higher leverage and patchy execution leaves us more cautious on the name versus peers," he wrote. The British oil major is in the midst of a strategy change back toward oil and gas after a failed attempt to move more aggressively than rivals toward a low-carbon energy business model. BP had underperformed its biggest rivals before the downturn, making it a potential takeover target. Shell CEO Wael Sawan said on Friday he would rather buy back more of his company's own shares than bid for BP. Shell kept its investment budget at between $20 billion and $22 billion for the year, while BP said it will cut spending by $500 million, to a $14.5 billion budget. BP also indicated it could offload more assets, increasing its outlook for asset sales this year to between $3 billion and $4 billion, from $3 billion previously. (Reporting by Sheila Dang in Houston and Shadia Nasralla in London; Editing by Rod Nickel) First Published: 3 May 2025, 02:56 AM IST
Yahoo
02-05-2025
- Business
- Yahoo
Big Oil earnings show split in production strategy, shareholder returns
By Sheila Dang and Shadia Nasralla HOUSTON/LONDON (Reuters) -Big Oil's first-quarter earnings have shown a clear split in how companies are positioned to weather the downturn sparked by a slump in oil prices to a four-year low in April. Investors were focused on whether companies would cut share repurchases, since lower crude prices would leave them with less cash to fund the programs. Buybacks and dividends are key to investor interest in the oil industry. U.S. oil producer Exxon Mobil and UK-based Shell kept the pace of share buybacks. Their top rivals, U.S.-based Chevron and UK-based BP said they would reduce buybacks in the second quarter. The difference speaks to where each company is in its business cycle. Exxon has benefited from prolific production from its Guyana oilfield, the largest offshore oil find in at least a decade. A major player in the top U.S. oilfield, the Permian Basin, as well as in Guyana, Exxon increased production by 20% year-over-year. Both areas are highly profitable and the company is working to reduce its operating costs, said Exxon CEO Darren Woods. "In this uncertain market, our shareholders can be confident in knowing that we're built for this," Woods said in the company's first-quarter earnings statement. Oil prices recorded their largest monthly drop since 2021 this week as investors priced in the expected damage to the global economy - and contingent fuel demand - from U.S. President Donald Trump's trade policies. Exxon's net-debt-to-capital ratio was 7%. It was the only integrated oil company that did not increase net debt during the quarter, said Kim Fustier, head of European oil and gas research at HSBC. Chevron's first-quarter oil and gas production was flat compared to the previous year as growth in Kazakhstan and the Permian was offset by loss of production from asset sales. Earlier this year, the company announced it would lay off up to 20% of its staff as part of an effort to simplify the business and cut up to $3 billion in costs. Chevron is attempting to buy into the Guyana play through the acquisition of one of Exxon's minority partners in the project, Hess. Exxon is in arbitration over that deal, and claims to have the right of first refusal for Hess' stake in the field. Exxon repurchased $4.8 billion of shares during the first quarter, putting it on track to meet its annual target of $20 billion. Chevron said it would reduce buybacks to between $2 billion and $3.5 billion in the current quarter, down from $3.9 billion between January and March, which it said was a reflection of market conditions. "Exxon's low-cost production gave it room to hold the line on buybacks, with Chevron pulling back as weaker oil prices bite," said Jake Behan, head of capital markets at financial products firm Direxion. SHELL IMPRESSES, BP DISAPPOINTS In Europe, Shell's first-quarter earnings beat analyst expectations. The company said it planned to buy back $3.5 billion worth of shares over the next three months, the 14th consecutive quarter of a buyback program of at least $3 billion. BP missed earnings expectations with a 48% fall in profit to $1.4 billion and also slashed its share buyback program from around $1.8 billion to $750 million a quarter. After the disappointing results, BP could miss consensus expectations for second-quarter earnings by 20%, said Biraj Borkhataria, an analyst at RBC Capital Markets, in a note. "The combination of a weaker (free cash flow), higher leverage and patchy execution leaves us more cautious on the name versus peers," he wrote. The British oil major is in the midst of a strategy change back toward oil and gas after a failed attempt to move more aggressively than rivals toward a low-carbon energy business model. BP had underperformed its biggest rivals before the downturn, making it a potential takeover target. Shell CEO Wael Sawan said on Friday he would rather buy back more of his company's own shares than bid for BP. Shell kept its investment budget at between $20 billion and $22 billion for the year, while BP said it will cut spending by $500 million, to a $14.5 billion budget. BP also indicated it could offload more assets, increasing its outlook for asset sales this year to between $3 billion and $4 billion, from $3 billion previously. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Chevron meets Wall Street profit estimates as refining recovers from previous quarter
By Sheila Dang HOUSTON (Reuters) -Chevron (CVX) on Friday reported first-quarter earnings that met Wall Street estimates, as the company saw a turnaround in its refining business from a loss late last year. The company's chief financial officer, Eimear Bonner, said Chevron's share repurchases this year could be between $11.5 billion and $13 billion, which would be within its guidance of $10 billion to $20 billion. The second-largest U.S. oil producer posted adjusted earnings of $3.8 billion during the three months ended March 31, or $2.18 per share, matching analyst estimates, according to LSEG data. Refining and oil and gas production profits were down from a year ago, but the refining profit was a significant improvement from the previous quarter, when Chevron's downstream operations reported the first loss in four years. Chevron and other oil producers have been contending with falling crude prices since April 2, when U.S. President Donald Trump announced sweeping tariffs that are expected to reduce global economic growth. The lower crude prices have raised questions about whether producers will meet their goals for paying dividends and repurchasing shares - a cornerstone of Big Oil's strategy to woo investors - or cut capital expenditure budgets. Chevron said it paid $3 billion in dividends and repurchased $3.9 billion in shares during the quarter. In the second quarter, the company said it expects to repurchase between $2 billion and $3.5 billion in shares. If rolled forward, that would mean Chevron could land between $11.5 billion and $13 billion in repurchases for 2025, Bonner said in an interview. "We're still buying back a significant amount of our shares annually, on top of a dividend that's growing faster than our peers," she said. Chevron's global oil production totaled 3.35 million barrels of oil equivalent per day, flat from the same period last year. The company completed an expansion at the Tengiz oilfield in Kazakhstan in January and grew production from the Permian basin, the top U.S. oilfield, by 12% year-over-year. Those gains were offset by loss of production from asset sales. Chevron also started production at the Ballymore project in the U.S. Gulf of Mexico in April. Operations at Tengiz have been in focus as Kazakhstan has repeatedly exceeded OPEC+ oil production quotas. Bonner said the company is operating unrestricted. During the first quarter, Chevron was hit by a Trump administration order to wind down operations in Venezuela, which will impact the company's second-quarter shipments from the country. Earnings from oil and gas production were $3.76 billion, down from $5.24 billion in the year-ago quarter. Chevron's refining business earned $325 million, down from $783 million a year ago. But that represents a turnaround from the previous quarter when it reported a loss for the first time since 2020, as a post-pandemic surge in demand for fuel faded. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy
Yahoo
01-05-2025
- Business
- Yahoo
Court hearing in Exxon's dispute over Chevron-Hess deal set for May 26, sources say
By Sheila Dang HOUSTON (Reuters) -The Paris-based International Chamber of Commerce has scheduled a hearing in Exxon Mobil's arbitration dispute over rival Chevron's planned acquisition of oil producer Hess for May 26, according to two sources familiar with the matter. The battle between Exxon and Chevron, the two largest U.S. oil producers, centers on the lucrative Stabroek oilfield off the coast of Guyana, the biggest oil discovery of the past decade. The dispute has delayed Chevron's $53-billion deal to buy Hess, which was announced nearly 18 months ago. While Exxon, Chevron and Hess have previously said the hearing in the arbitration case was scheduled for May, the date has not previously been reported. The sources declined to be named because the details are confidential. A Hess spokesperson referred to a previous filing in which the company said it expected a decision in the third quarter. Exxon and Chevron did not respond to requests for comment. The prize asset in Chevron's acquisition of Hess is the latter's 30% stake in the Stabroek block. Exxon operates the field and holds a 45% interest. CNOOC, the third partner, holds 25%. In March last year, roughly four months after Chevron said it would buy Hess, Exxon and CNOOC filed arbitration claims, arguing that their joint operating agreement in the Stabroek block gives them a right of first refusal to buy Hess' stake. Chevron and Hess claim the right of first refusal does not apply to their merger. The arbitration case was filed through the International Chamber of Commerce and a three-judge panel will consider the applicability of the right-of-first-refusal clause. While the ICC is based in Paris, it is unclear where the May 26 hearing will take place. The arbitration rules on the ICC's website state that hearings can take place in-person or virtually. Closing the acquisition of Hess and gaining access to the Stabroek is crucial for Chevron. The field has pumped more crude than initially expected and would provide a material boost to Chevron's total oil output. It would also add to Chevron's oil and gas reserves, which fell to their lowest point in at least a decade at the end of 2024. The block is estimated to hold more than 11 billion barrels of oil equivalent in recoverable resource. In March, Chevron disclosed that it bought 4.99% of Hess' common shares on the open market, which the company said reflected its confidence in completing the acquisition. Sign in to access your portfolio
