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Exxon is reportedly nearing a preliminary deal to invest in oil fields in Venezuela. This would mark a significant return to a country with some of the world's largest oil reserves, years after the company left following the government's seizure of its assets.
While the deal is still in the early stages, it shows Exxon is willing to look for growth in difficult regions to secure long-term supply. The main risk is political stability, as any investment in the country depends on the local government and international sanctions remaining favorable.
Source: WSJ
An Exxon executive said the U.S. is on track to provide nearly a third of the world's liquefied natural gas (LNG) by 2030. LNG is natural gas that has been cooled into a liquid so it can be shipped across oceans on tankers rather than through pipelines. This outlook supports Exxon's heavy investment in gas export terminals and production. As more countries look for alternatives to coal or pipeline gas from unstable regions, Exxon is betting that its ability to produce and ship American gas will be a major source of profit for the next decade.
Source: Reuters
Exxon released its annual energy outlook on Thursday, which now predicts that coal will be phased out more slowly than previously thought. This shift means the company expects global carbon emissions to remain higher for longer, as coal is one of the most carbon-heavy ways to produce energy.
For a long-term owner, this report reinforces why Exxon is doubling down on oil and gas production. If the world transitions away from fossil fuels more slowly than climate goals require, demand for Exxon’s core products will likely stay high for decades. While this outlook highlights the difficulty of meeting global climate targets, it supports the company’s strategy of investing heavily in traditional energy projects.
Source: Reuters
Exxon has finalized the results of its offer to buy back about 2.1 billion dollars in debt from its subsidiary, Pioneer Natural Resources. This move follows through on the company's plan to clean up the debt it inherited when it acquired Pioneer earlier this year. By paying off these notes early, Exxon is simplifying its finances and reducing its future interest payments. This is a routine step in integrating a large acquisition and shows the company is using its cash to keep its balance sheet lean.
Source: Business Wire
Exxon's Joliet refinery in Illinois experienced a power outage on Sunday afternoon that disrupted normal operations. The facility is capable of processing about 264,000 barrels of oil per day. While any unplanned shutdown at a major refinery can temporarily affect local fuel supplies, these types of power-related issues are usually resolved quickly. This event is a routine operational hiccup and does not change the company's long-term production outlook.
Source: Reuters
Management has a habit of setting conservative targets they can reliably clear. Six beats in the last eight quarters show they have a firm handle on their costs even as energy prices swing.
| Expectation | |
|---|---|
| EPS | $3.54 |
| Revenue | $106.77B |