Latest news with #XOM
Yahoo
03-08-2025
- Business
- Yahoo
Exxon Mobil Corp (XOM) Q2 2025 Earnings Call Highlights: Record Production and Strategic ...
Upstream Production: Highest second quarter production since Exxon and Mobil merger, with more than half from high-return, advantaged assets. Guyana Production: Producing roughly 650,000 gross barrels per day from three major developments. Permian Basin Production: Produced roughly 1.6 million oil equivalent barrels per day, with plans to grow to 2.3 million by 2030. 2025 Project Start-ups: Expected to drive more than $3 billion of earnings in 2026 at constant prices and margin. Low Carbon Solutions: First third-party carbon capture and storage project operational, storing up to 2 million metric tons of CO2 per year. Third-party CO2 Offtake: Nearly 10 million metric tons per year. Warning! GuruFocus has detected 6 Warning Signs with LBTYA. Release Date: August 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Exxon Mobil Corp (NYSE:XOM) achieved the highest second-quarter production since the merger of Exxon and Mobil over 25 years ago, with more than half of the production coming from high-return, advantaged assets. The company marked significant progress in Guyana, with three major developments producing 650,000 gross barrels per day and a fourth development, Yellowtail, expected to achieve first oil ahead of schedule and under budget. Exxon Mobil Corp (NYSE:XOM) is leveraging technology and innovation in the Permian Basin, achieving record production and deploying new technologies to improve recovery rates. The company is expanding its product solutions with new projects in China, Singapore, and the UK, expected to drive more than $3 billion of earnings in 2026. Exxon Mobil Corp (NYSE:XOM) is advancing its Low Carbon Solutions business, with its first third-party carbon capture and storage project now operational and several customer contracts secured. Negative Points The recent arbitration decision regarding the Guyana development was unexpected and disappointing, highlighting risks in contractual interpretations. Exxon Mobil Corp (NYSE:XOM) faces challenges in its Baytown hydrogen plant project due to changes in tax credit timelines, which may impact the development of a broader market. The company is concerned about the development of a market-driven business for low-carbon hydrogen, which could affect future project viability. Exxon Mobil Corp (NYSE:XOM) acknowledges the potential for delays in its lithium technology development as it works to reduce costs and compete globally. The chemical market remains challenging with low margins due to oversupply, which may persist longer than anticipated, impacting profitability. Q & A Highlights Q: Can you elaborate on ExxonMobil's approach to mergers and acquisitions (M&A) and how it aligns with your current portfolio and technology capabilities? A: Darren Woods, Chairman and CEO, emphasized that ExxonMobil's strategy focuses on leveraging unique capabilities and competitive advantages to grow organic value and apply these advantages to inorganic opportunities. The goal is to create value beyond the sum of the parts, as seen with the Pioneer acquisition, where synergies have grown from $2 billion to $3 billion annually. ExxonMobil is interested in value deals rather than just acquiring volumes, and they look for opportunities across all sectors, not just upstream. Q: How does ExxonMobil view the potential for peak production in the Permian Basin, and what role does technology play in this? A: Darren Woods stated that ExxonMobil has a different view on the Permian Basin's potential, driven by their focus on technology and innovation. The company aims to double recovery rates and has seen a 20% improvement in recoveries with new technologies like lightweight proppant. ExxonMobil plans to grow Permian production from 1.6 million to 2.3 million oil equivalent barrels by 2030, leveraging their technology to drive capital-efficient, high-return growth. Q: What are ExxonMobil's future growth ambitions in refining, and how have recent projects like Strathcona and Singapore performed? A: Darren Woods highlighted the success of recent downstream projects, emphasizing the company's ability to bring large projects online efficiently. ExxonMobil focuses on converting low-value molecules into high-value products, leveraging existing facilities for cost-effective upgrades. Future growth will involve shifting production to higher-value products, biofuels, and recycling plastics. The centralized projects organization has been instrumental in achieving these results. Q: How does ExxonMobil view the opportunities in low carbon solutions, particularly in carbon capture and storage (CCS) and hydrogen? A: Darren Woods explained that ExxonMobil sees significant opportunities in CCS, with a growing demand profile and a large-scale transport and storage system. The company is cautious about hydrogen projects due to market uncertainties and policy changes. ExxonMobil remains focused on securing off-takers before proceeding with large investments. The company is also exploring low-carbon data centers and lithium technology, with an emphasis on cost competitiveness. Q: How is ExxonMobil utilizing AI and robotics to enhance its operations, and what potential benefits do these technologies offer? A: Darren Woods discussed ExxonMobil's centralized technology organization, which integrates information technology with traditional forms of technology. The company is implementing a corporate-wide ERP system to make data accessible for AI applications. ExxonMobil prioritizes using AI to improve product performance and cost efficiency, freeing employees from lower-value tasks. The focus is on effectiveness rather than just cost efficiency, with AI seen as a long-term evolution. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31-07-2025
- Business
- Yahoo
Exxon Mobil Stock: Is Wall Street Bullish or Bearish?
Texas-based Exxon Mobil Corporation (XOM) is a global oil and gas giant involved in exploration, production, refining, and chemicals. With a market cap of $480.3 billion, the company operates through Upstream, Energy Products, Chemical Products, and Specialty Products segments. Shares of the oil and gas corporation have underperformed the broader market over the past 52 weeks. XOM has slumped 2.8% over this time frame, while the broader S&P 500 Index ($SPX) has gained 16.6%. Moreover, shares of XOM are up 4.9% on a YTD basis, lagging behind $SPX's 8.3% rise. More News from Barchart Here's What Happened the Last Time Novo Nordisk Stock Was This Oversold Tesla Just Signed a Chip Supply Deal with Samsung. What Does That Mean for TSLA Stock? Earnings Will Be 'Worse Than Expected' for UnitedHealth. How Should You Play UNH Stock Here? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Looking closer, Exxon Mobil has slightly trailed the Energy Select Sector SPDR Fund's (XLE) 2.7% dip over the past 52 weeks but has surpassed the ETF's 3.8% rise on a YTD basis. Exxon Mobil shares rose over 2% on Jul. 8 as energy stocks rallied alongside a 2-week high in WTI crude oil prices. For the current fiscal year, ending in December 2025, analysts expect XOM's adjusted EPS to decline 15.5% year-over-year to $6.58. On the bright side, the company's earnings surprise history is solid as it beat the consensus estimates in each of the last four quarters. Among the 24 analysts covering the stock, the consensus rating is a 'Moderate Buy.' That's based on 15 'Strong Buy' ratings, one 'Moderate Buy,' seven 'Holds,' and one 'Strong Sell.' This configuration is slightly more bullish than a month ago, with 14 'Strong Buy' ratings on the stock. On July 11, Scotiabank raised its price target on Exxon Mobil from $115 to $125 while maintaining an 'Outperform' rating. The adjustment is part of a broader update to the firm's price targets for U.S. Integrated Oil, Refining, and Large Cap E&P stocks. XOM's average price target of $123.43 implies an upswing of 9.3% from the current market prices. The Street-high price target of $140 implies a modest potential upside of 24% from the current price levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31-07-2025
- Business
- Yahoo
Here is Why Exxon Mobil (XOM) is a Favorite Among Hedge Fund Investors
Exxon Mobil Corporation (NYSE:XOM)'s vast global scale, strong balance sheet, strict financial discipline, generous payouts, and aggressive growth put it the among the Best Crude Oil Stocks to Buy According to Hedge Funds. Aerial view of a major oil rig in the middle of the sea, pumping crude oil. Exxon Mobil Corporation (NYSE:XOM) has grown its earnings at an annual rate of roughly 30% over the last five years, with its cash flow also rising at a CAGR of roughly 15% during the period. The oil behemoth has no intentions of slowing down and expects to achieve $20 billion in earnings growth and $30 billion in cash flow growth by 2030, even if Brent prices average just $65 per barrel. Exxon Mobil Corporation (NYSE:XOM) also remains focused on reducing costs to make sure it can weather a shifting crude oil market. Since 2019, the company has achieved $12.1 billion in structural cost savings, with a target to raise this number to $18 billion by 2030. Moreover, Exxon continues to invest in efficiency, with a goal of achieving a break-even of $35 per barrel by 2027 and $30 per barrel by 2030. Exxon Mobil Corporation (NYSE:XOM) is famous for its massive payouts, with distributions of over $125 billion in dividends and buybacks over the last five years. The company has announced plans to repurchase $20 billion in shares annually through 2026, and has raised its payouts for 42 consecutive years. Exxon Mobil Corporation (NYSE:XOM) is one of the largest integrated fuels, lubricants, and chemical companies in the world. The company operates facilities or markets products around the globe and explores for oil and natural gas on six continents. While we acknowledge the potential of XOM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and The 5 Energy Stocks Billionaires are Quietly Piling Into. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
29-07-2025
- Business
- Globe and Mail
ExxonMobil Before Q2 Earnings: Time to Hold the Stock or Reassess?
Exxon Mobil Corporation XOM is set to report second-quarter 2025 results on Aug. 1, 2025, before the opening bell. The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.49 per share, implying a decline of 30.4% from the year-ago reported number. It witnessed five upward revisions in the past 30 days. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $82.8 billion, suggesting a 11% decline from the year-ago actuals. XOM beat the consensus estimate for earnings in each of the trailing four quarters, with the average surprise being 3.58%. This is depicted in the graph below: Q2 Earnings Whispers for XOM Our proven model doesn't predict an earnings beat for XOM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here. The leading integrated energy player has an Earnings ESP of 0.00%. XOM currently carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. XOM's Factors to Note ExxonMobil recently disclosed in an 8-K filing that it expects earnings for the second quarter to be hurt sequentially by lower oil and natural gas prices. With exploration and production activities contributing mostly to XOM's bottom line, a weaker commodity pricing environment in the June quarter of this year is a concern. According to the U.S. Energy Information Administration ('EIA'), the average spot prices for Cushing, OK, West Texas Intermediate (WTI) crude for April, May and June were $63.54, $62.17 and $68.17 per barrel, respectively. Based on the EIA data, the pricing environment was healthier in the first quarter, with average prices of $75.74, $71.53 and $68.24 per barrel for January, February and March, respectively. The same story also applies to natural gas prices. Softer commodity prices are expected to hurt XOM's upstream business, as the energy giant forecasts that lower oil prices will sequentially decrease its upstream earnings by $800 million to $1.2 billion. A change in gas prices will reduce its upstream profit by $300 million to $700 million. Thus, it can be assumed that ExxonMobil's second-quarter results are going to take a hit. XOM's Price Performance & Valuation XOM's stock has slipped 2.4% over the past year compared with the industry 's marginal growth of 0.5%. BP plc BP, another integrated energy major, has fallen 0.3% over the same time frame, while Chevron Corporation CVX, in the same space, has jumped 2.4%. One-Year Price Chart Image Source: Zacks Investment Research Despite ExxonMobil's price being lower than BP, Chevron and the broader industry, XOM still appears relatively overvalued. The company's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio is 6.90, reflecting that it is trading at a premium compared to the industry average of 4.35. Investment Thesis of XOM The acquisition of Pioneer Natural Resources boosts ExxonMobil's production capabilities in the Permian Basin, one of the most profitable regions in the United States due to its exceptionally low production costs. The integrated energy major also has a strong pipeline of projects encompassing offshore Guyana assets, which are also known for low-cost structures. XOM is well known for better utilization of invested funds and has a strong balance sheet. Hence, the energy major can rely on its solid financials to sail through an unfavorable business environment. Also, investing in alternative energy, such as carbon capture and lithium battery technology, offers potential growth opportunities for ExxonMobil. However, these projects require substantial capital and carry uncertain returns in the short term. Moreover, the company's business is highly exposed to volatile oil and natural gas prices. Status of Other Big Energy Players: CVX, BP Like XOM, Chevron will also report second-quarter 2025 earnings on Aug. 1, 2025. CVX currently has an Earnings ESP of +3.63% and a Zacks Rank of 3. Chevron's earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, and missed the same twice, with the average negative surprise being 3.60%. BP, on the other hand, will report results on Aug. 5. BP currently has an Earnings ESP of 0.00% and a Zacks Rank of 3. BP's earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, and missed the same twice, with the average negative surprise being 2.92%. Last Word Considering the backdrop, it might be wise for investors to wait for a more favorable entry point, as the company is currently somewhat overvalued. Those who own XOM stock may hold on to it to benefit from ExxonMobil's long-term growth prospects. Higher. Faster. Sooner. Buy These Stocks Now A small number of stocks are primed for a breakout, and you have a chance to get in before they take off. At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We've combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month. You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days. Download the report free now >> Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report
Yahoo
24-07-2025
- Business
- Yahoo
Exxon Mobil (XOM) Surpasses Market Returns: Some Facts Worth Knowing
Exxon Mobil (XOM) closed the most recent trading day at $109.85, moving +1.21% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.78%. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 0.61%. Heading into today, shares of the oil and natural gas company had gained 0.18% over the past month, outpacing the Oils-Energy sector's loss of 3.19% and lagging the S&P 500's gain of 5.88%. The investment community will be closely monitoring the performance of Exxon Mobil in its forthcoming earnings report. The company is scheduled to release its earnings on August 1, 2025. In that report, analysts expect Exxon Mobil to post earnings of $1.49 per share. This would mark a year-over-year decline of 30.37%. Meanwhile, the latest consensus estimate predicts the revenue to be $82.84 billion, indicating a 10.98% decrease compared to the same quarter of the previous year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.57 per share and a revenue of $334.4 billion, representing changes of -15.66% and -4.34%, respectively, from the prior year. Investors should also take note of any recent adjustments to analyst estimates for Exxon Mobil. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 7.51% higher within the past month. Exxon Mobil is currently sporting a Zacks Rank of #3 (Hold). With respect to valuation, Exxon Mobil is currently being traded at a Forward P/E ratio of 16.53. This valuation marks a premium compared to its industry average Forward P/E of 11.25. It is also worth noting that XOM currently has a PEG ratio of 2.02. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Integrated - International was holding an average PEG ratio of 1.99 at yesterday's closing price. The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 188, this industry ranks in the bottom 24% of all industries, numbering over 250. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
