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Exxon Mobil Corporation (XOM)

NYSE - NYSE Delayed price. Currency in USD
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114.97+1.18 (+1.04%)
At close: 04:02PM EDT
114.73 -0.24 (-0.21%)
Pre-market: 05:49AM EDT
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  • S
    Skyline
    I had to sign up to post. Have been in oil and gas/chemicals for 14 years already. I run a chemical plant that makes $1.5 million revenue per day. In the industry we know talk at great extension of crude to chemicals pathway. It is not simply taking crude putting it through atmospheric distillation tower, FCC, Alkyl and isomer unit make couple different cuts and be happy with it. Runnin a refinery is not very profitable. However if you refine crude and take a chemical pathway such as cracking liquids to make ethylene, methanol, LDPE LLDPE you have a syngerized business that does not put product into pipeline where your profit floats onspec prices. Here in southern texas we have got crackers, polymer units popping like there is no tomorrow, CP Chem cracker off Houston, SASOL new Mega Complex in Lake Charles La, new Mega Olefin plant to build in Corpus Christi wiht Exxon and SABIC which will be printing money in 3 years. What I am getting to is that base chemicals business is stronger than ever and in part is supplmented due to oil and crude feedstocks. Tesla's are run on batteries but are manufactured out of polymers from those base chemicals. Exxon is cutting jobs midstream in oil, refineries that sit bythemselves witout internal feedstock and product cricle. Shell is mothballing Norco Refinery which sells on spot prices. So yeaht tighter integration will make an break this business. Exxon with its assists is positioned to boom chemicals surge in the middle class in the develping nations is born. Middle class in those nations will drive demand for ethyl, methanol, plastics and oil derivatives.
  • b
    brd2dth
    All I need to know is there is no alternative to established energy sources, and this
    1. Exxon Mobil Corporation (NYSE:XOM)
    Number of Hedge Fund Holders: 68

    Morgan Stanley analyst Devin McDermott recently kept an Overweight rating on Exxon Mobil Corporation (NYSE:XOM) stock with a price target of $149, noting that oil giants like Exxon looked set for “catch up” trade in the coming months amid oil price hikes. The firm recently beat market predictions on earnings per share and revenue and has also been exploring the deployment of low carbon technologies in Indonesia as part of an energy transition plan.
  • K
    Kawazunohito
    Looks as though most of the influential public/private physical market makers are looking for oil between $65-80 in '22... So 4Q21 should give us a strong indication of FY22 projections... NG and Jet Fuel remain wildcards... but wouldn't be surprised to see earnings well over $7... potentially over $9. Of equal interest, FCF could be around $10B+ a quarter (all using conservative numbers and looking at the trends). I maintain that a credit rating upgrade, or two, is a much deserved/needed catalyst for XOM. I was wrong on my EOY21 target of $68-69. But, that leaves more gain towards an EOY22 target of $84 (my base thesis numbers projection). Which, seems reasonable when you consider it is less percentage gain than '21. GL!
  • B
    Bear&Bull
    Goldman upgraded XOM price target. Two months ago Wall Street was preaching for the end of oil and saying Tesla is taking over oil's share. They now keep oil futures at $50 with huge builds in inventory while months ago we had inventory draws and the price was collapsing. These guys manipulate the stock market very easily.
  • H
    Hookem
    Hope you read this one Minnie.

    Exxon Mobil (XOM) expects to double its earnings over the next six years from 2019 levels even as it shifts more spending to low-carbon businesses, the company said in a long-term plan that it released on Wednesday.

    Three new board members joined the company after a proxy battle earlier this year, and their fingerprints appear to be on the new plan -- particularly in the company's low-carbon initiatives.
  • F
    Franz
    I have never felt better about having a big long position in a stock. I bought 3400 shares at $34.43 average, and will always have at least a 10% annual dividend yield, even if they never raise it again. I have close to 5000 shares now, and my brother has 3300. Added 500 more early this morning. This stock is trading at or below tangible book value, and the share price has not nearly reflected the nice rise in oil prices the past month. (Check where spot crude was back on June 1, 2020, when XOM rose up over $53.00/share. Couple all of this with mass vaccinations, pent up consumer demand, resumption of full scale industrial production, travel demand, etc. etc. etc., and you have the makings of at least at 50% gain short term. It's amazing how cheap this stock is relative to a highly inflated small cap and tech market. I have been watching the price/volume ratios very closely during the up days and the down days, plus large level buys/sells, and have concluded that the buy days greatly outweighed the lower volume sell days - meaning institutional accumulation. I'm turning 50 in February, and I have a few positions like this that I call me nest eggs. High dividends and cheap valuations with lots of room for growth. Not going to let any big players shake me off of this tree! Good luck, and stay safe everyone.
  • R
    Robert
    With analysts writing articles on the dividend now being stable the price should continue to rise. It is hard to get 3-4% return from a stable source in this environment and XOM is still above 7%. Not to mention oil supply being constricted by governments trying to appease their ultra green constituents without a thought to being able replace the energy supply they are constricting. Oil going up due to macro factors. It's XOM's time to shine.
  • E
    Energy Investor
    XOM recent share price reflects the market's refusal to accept the fundamental value of the company. The latest Covid variant is also another example of lack of understanding. These issues will come and go, but the real value of XOM will ultimately prove out in the market. The stock is a mid $70s to mid $80s stock all day long. What you are seeing is a great buying opportunity with a 5.5% dividend to boot. There are apx. 45 years of proven oil reserves in the world today. You can bet oil will be used for a long time. In a few years you will see all of the Tesla owners looking to the government for a bail out to help pay their $22,000 dollar battery replacements.
  • K
    Kawazunohito
    At some point, if not already, I'm sure XOM will start to look to a future transition into renewables/future energy chains. However, the point their board has made is that to make that pivot, they will need the resources (read money/capital) to develop/invest. They have taken a contrarian point from the other mids/majors in speculating that oil/NG will dominate much further into the future... say 2040+. Not an unreasonable assumption, which translates to their continued CAPEX towards future oil/NG production. Of course XOM 'may' become a 'melting icecube', but seemingly part of their strategy (through maintaining dividend) is to have ready access to tens of billions to capitalize on the future prevalent 'future energy chain'... more or less, they're waiting for scale/the market to determine where to drop their future pivot as opposed to making incremental investments in uncertain energy chains now... again, not an analyst but seems like a reasonable strategy that sees XOM being relevant/profitable in an uncertain 'green energy' future.
  • b
    brd2dth
    BofA sees $120 oil next year.
    ..Brent Crude prices could rise to as much as $120 per barrel in the first half of 2022 due to the global gas crisis, booming air travel with international flights returning, and a comeback of Asian demand, Bank of America says.
    Although the U.S. is not very exposed to the natural gas crisis, Europe and Asia are, and the gas to oil switch will raise demand for crude, Francisco Blanch, global head of commodities and derivatives research at Bank of America, told Bloomberg on Tuesday.
  • k
    kram
    Exxon Mobil Corp. late Thursday said that higher prices for crude and natural gas will boost its bottom line in the third quarter.

    Profit margins for its chemicals products, however, which have been a bright spot for the integrated energy giant and others, are likely to get slimmer, Exxon XOM, -1.77% said in a filing.

    Exxon said it expects a favorable effect between $200 million and $600 million on its third-quarter results from changes in oil prices, and between $500 million and $900 million due to changes in natural gas prices.
  • J
    Jonathan
    During periods when WTI crude was $60 or higher, XOM had spectacular dividend growth: 2006, 12.28 percent. 2007, 7.03 percent. 2008, 13.14 percent. 2012, 17.84 percent. 2013, 12.84 percent. 2014, 9.76 percent. Given current strong demand and a rebounding global economy, I see no reason why we won't see similar growth over the next two or three years, based on historical charts, with stock price approximately in the $70 to $100 range, over the same time frame, as a reasonable expectation.
  • G
    Greg Focker
    Let me see if I understand this correctly:
    1) Oil is a finite resource.
    2) According the the expert, demand > supply in the future.
    3) Oil peak maybe 20-25 years away if that even happens.
    4) Green/Renewable energy is really a supplement and not a threat to OIL.
    5) XOM is cheap relative to other stocks.
    6) XOM has excellent. & us actually a div aristocrat.
    7) Oil price has been high this year & according to Gerhard over the last 10
    years the average price of Brent has been over $74!

    Shouldn't XOM be over 90 - 100 by now?
  • T
    Tracey
    XOM was trashed by the "Green" media and analysts more than CVX, TOT, RDS, and BP. It's almost as if the more they trashed it the better buy it was. I have been in the industry for 35 years...XOM has always been one of the best run companies (though cutthroat for professional employees). I also noticed the media trashing them further when they had layoffs. Anyone in the industry or who follows it knows this is a cyclical industry and layoffs are part of the cost cutting along with reduction of capex. EVERY SINGLE DOWNTURN. Hundreds of thousands lost their jobs in the industry this year. XOM was bashed more than most. They are not towing the line for the "renewables" agenda. But many institutions and investors see beyond this and bought while it was down. I cheer for the industry and all the best players, among them XOM and CVX. It will be a choppy ride but definitely the products are essential for decades.
  • R
    Robert
    XOM price is not getting the gains it should after oil price recovery and excellent job getting through the 2020 crisis. However it will be impossible to hold back the share price after a quarter of solid earnings reported from $60-75 a barrel oil. Back to the $70-80s for this tiger after next earnings release.
  • R
    Robert
    Dem governor of Wisconsin declares energy emergency. "This is a result of the below-average temperatures, snow, and ice storms throughout the month of February, which make deliveries of propane products and petroleum limited.

    According to a press release, the executive order will allow for the swift and efficient delivery of these products throughout the state. It provides a 30-day waiver allowing suppliers to get caught up from the delays associated with rail traffic slowed by nearly 50-perce"
  • G
    Gerhard
    So I was driving past some gas stations in town today and noticed their prices are back to peak levels. Maybe this is just the pre Labor Day price hike but it makes it pretty clear that the new pricing power from inflation is going to make it much less likely that once prices go up they will come back down again. This means that XOM will likely have much better refining margins and the half of their profits that come from end product sales for every $1 increase in Brent are likely to remain from the higher earlier prices.

    Because Q3 oil sales were likely already in the bag by the end of July odds are very strong Q3 will be a barn burner. How strong Q4 will be remains to be seen but the recent $10 drop in Brent from peak levels might not all come from the bottom line, so people may well be under estimating XOM's profitability in Q4, especially if they hedged well. Remember hedging doesn't always cost you profits, sometimes it maintains them, which is the purpose after all.
  • E
    Energy Investor
    Investing in stocks with your personal wealth is a big boys game. Stocks ebb and flow with news and speculation. Wall Street thrives on volatility. Buffet always says "I wouldn't spend 10 minutes investing in a stock that I wouldn't hold for 10 years. XOM is a perfect example. Relax take the 6% return dollar cost average and be patient. Your patience will be rewarded. The political narrative is be afraid of the latest variant. Mathematics suggest that in time most will be vaccinated and will also have natural immunity.
    This too shall pass and XOM will be in the 70's again.
  • o
    ozymandias
    Cushing oil storage - which just dropped to 31.2mm barrels, the lowest since 2018 may be just weeks from being "effectively out of crude. No physical oil at all in the largest US commercial storage facility is, leading to what may be a superspike in the price of oil. Cushing operational tank bottoms are likely 20-25% of capacity- or about 20 mb. With record coal and gas prices, the power sector and energy intensive industries are turning to oil, potentially boosting demand by 750 kbd during winter and drawing world oil inventory by 2.1 mbd over November and December.
  • B
    Brad McDoonagh
    It would also be interesting if we learned they bought back shares at a lower price in Q3 but from a regulatory perspective they may have had to disclose this by now. Nonetheless XOM is a wonderful investment for someone 58 and looking at initial captital appreciation and a long term dividend ROI. And, there are emerging technologies for carbon capture and energy XOM will be at the forefront investing, supporting and buying these companies once there is a true alternative to oil to power the world. That is what they will be doing with their additional CAPEX & OPEX savings....investing in the future while still powering the energy hungry world we live in. Have a nice weekend everyone.