Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nyse  >  Exxon Mobil Corporation    XOM


SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations
The feature you requested does not exist. However, we suggest the following feature:

Chevron, Exxon shrink spending as coronavirus cuts demand

share with twitter share with LinkedIn share with facebook
10/30/2020 | 10:34pm EDT
FILE PHOTO: The sun sets behind a crude oil pump jack on a drill pad in the Permian Basin in Loving County

(Reuters) - U.S. oil majors Chevron Corp and Exxon Mobil Corp cut spending aggressively in the third quarter in a race to offset weak trends in fuel demand caused by the COVID-19 pandemic, though the former managed a slim profit.

Exxon posted its third straight quarter of losses on Friday and reduced spending plans for the coming year.

In common with others in the sector, the two are laying off a substantial portion of their workforce and expect to cut costs further as they try to reverse years of weak stock performance, worsened by the impact of movement restrictions.

U.S. oil prices have dropped 41% this year as the coronavirus forced billions of people into lockdowns. Demand recovered in the late northern hemisphere summer, but nations including Germany, India and the United States are again tackling a surge in infections, dampening demand for gasoline, diesel and jet fuel.

The outlook for energy consumption "depends on when the world - this country and other countries - get control of the pandemic and those activities resume. We don't know when that's going to be," said Chevron Chief Financial Officer Pierre Breber.

Exxon shares were down 1% to $32.62 on Friday. Chevron shares gained 1% to $69.50. Exxon shares have lost half of their value this year; Chevron's are down 40%.

Chevron, the second-largest U.S. oil producer by production, earned $201 million in the most recent quarter, compared with a profit of $2.9 billion for the year-earlier period. Exxon posted a loss of $680 million, its third straight quarterly loss.

Exxon came into the year with an ambitious spending plan driven by investments in shale and offshore discoveries, particularly off the coast of Guyana. It originally planned to spend $33 billion in capital and exploration investment in 2020, though through three quarters it has instead spent just $16.6 billion.


Now, however, Exxon is focused on preserving its dividend.

Earlier this week, it announced plans to cut its workforce by about 15% but kept its fourth-quarter dividend at 87 cents a share, making 2020 the first year since 1982 that it has not raised its shareholder payout.

"While we see the dividend as safe over the next 12 months, the cash flow outspend is massive under current conditions," analysts at Raymond James wrote.

The largest U.S. oil producer, which has slashed costs aggressively, is also evaluating whether to hold on to other North American assets. It could write down natural gas assets valued between $25 billion to $30 billion, and possibly part of its Canadian business, Imperial Oil, it said.

"It is significant that Exxon is explicitly guiding to maintaining the dividend having reduced capex and potentially adding more divestments," said Anish Kapadia, director of energy at London-based Palissy Advisors.

Next year, Exxon said capital spending would be between $16 billion to $19 billion, versus an adjusted plan to spend around $23 billion this year.

The company, once the most valuable in the United States by market capitalization, was this month surpassed in value by wind and solar provider NextEra.

In the top U.S. oil field, the Permian Basin shale field, Chevron expects oil and gas output to dip to around 550,000 barrels of oil equivalent per day, from 565,000 boepd this quarter, Breber said. It is likely to maintain that level until the global economy recovers.

Exxon's Permian output was around 401,000 boepd in the third quarter, up from the previous quarter, and it said its costs there had dropped 20%.

(Reporting by Jennifer Hiller in Houston, with Arathy Nair and Shariq Khan in Bangalore; Writing by David Gaffen; Editing by Barbara Lewis and Marguerita Choy)

By Jennifer Hiller, Arathy S Nair and Shariq Khan

Stocks mentioned in the article
ChangeLast1st jan.
CHEVRON CORPORATION 1.02% 69.5 Delayed Quote.-42.33%
EXXON MOBIL CORPORATION -1.06% 32.62 Delayed Quote.-53.25%
IMPERIAL OIL LIMITED 6.36% 17.72 Delayed Quote.-48.41%
LONDON BRENT OIL 0.53% 37.86 Delayed Quote.-43.09%
RAYMOND JAMES FINANCIAL 1.18% 76.44 Delayed Quote.-14.55%
WTI -1.29% 35.72 Delayed Quote.-41.06%
share with twitter share with LinkedIn share with facebook
10/30Chevron, Exxon shrink spending as coronavirus cuts demand
10/30Energy Shares Gain Even as Oil Prices Sink -- Energy Roundup
10/30Exxon posts third straight quarterly loss as pandemic hits demand, prices
10/30Dow Wraps Up Worst Month Since March
10/30NEWS HIGHLIGHTS : Top Energy News of the Day
10/30Dow on Track to Wrap Up Worst Month Since March
10/30NEWS HIGHLIGHTS : Top Company News of the Day
10/30Dow on Track to Wrap Up Worst Month Since March
10/30U.S. drillers add most oil and gas rigs in a month since May 2018 -Baker Hugh..
10/30When Less Is Less
More news
Financials (USD)
Sales 2020 182 B - -
Net income 2020 -2 523 M - -
Net Debt 2020 60 426 M - -
P/E ratio 2020 -52,0x
Yield 2020 10,7%
Capitalization 138 B 138 B -
EV / Sales 2020 1,09x
EV / Sales 2021 0,93x
Nbr of Employees 74 900
Free-Float 52,7%
Duration : Period :
Exxon Mobil Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends EXXON MOBIL CORPORATION
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 25
Average target price 46,43 $
Last Close Price 32,62 $
Spread / Highest target 127%
Spread / Average Target 42,3%
Spread / Lowest Target 1,16%
EPS Revisions
Darren W. Woods Chairman & Chief Executive Officer
Andrew P. Swiger Chief Financial Officer & Senior VP
Samuel J. Palmisano Independent Director
Steven S. Reinemund Independent Director
Kenneth C. Frazier Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
BP PLC-58.31%51 283
NESTE OYJ44.04%39 980
PTT-29.55%28 417