ExxonMobil(XOM)
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The Oil Price Outlook is Good for Energy Companies
MarketBeat· 2025-01-06 14:33
Energy Select Sector SPDR Fund Stock Forecast Today12-Month Stock Price Forecast:$87.47-0.58% Downside Moderate BuyBased on 382 Analyst RatingsHigh Forecast$87.47Average Forecast$87.47Low Forecast$87.47Energy Select Sector SPDR Fund Stock Forecast DetailsThe oil price outlook is good for energy companies because it is depressed, averaging a long-term low for Q4 and at an extreme level likely to increase as the year progresses. This means the outlook for energy company earnings is likely too low and that an ...
How Energy Stocks Performed In 2024
Forbes· 2025-01-04 21:52
Market Performance Overview - The S&P 500 achieved a total return of 23.3% in 2024, building on its 24.2% gain in 2023, driven by optimism around AI and Federal Reserve interest rate cuts [1] - Seven out of eleven sectors underperformed the broader benchmark, while five sectors delivered returns of at least 20% [1] Artificial Intelligence Sector - AI stocks led the market surge, with Nvidia gaining 171% and Broadcom rising 108% in 2024 [2] - Consumer discretionary stocks outperformed in Q4 2024 with double-digit returns, while health care and materials sectors faced double-digit losses [2] Energy Sector Performance - The energy sector delivered a modest total return of 5.6% in 2024, with significant variance across subsectors [3] - Midstream companies led the energy sector with an average total return of 20.8%, with Targa Resources Corp. delivering a 110.1% return [4] - Upstream companies recorded an average gain of only 1.5%, with PrimeEnergy Resources and Comstock Resources leading at 106.5% and 105.9% respectively [5] - The refining segment struggled, with the "Big Three" refiners (Marathon Petroleum, Valero, Phillips 66) posting an average decline of 6.2% [6] - Integrated supermajors ended the year down an average of 3.1%, with ExxonMobil gaining 11.3% and Chevron eking out a 1.3% gain [7] Outlook for 2025 - The energy sector faces a mixed outlook for 2025, with a favorable regulatory environment under the incoming Trump Administration expected to benefit oil and gas operators [8] - OPEC+ production cuts and record U.S. oil output are likely to keep oil prices subdued, resulting in modest profitability for the sector [9] - Midstream companies remain well-positioned due to stable cash flows and attractive yields, while upstream and refining companies will need to focus on cost efficiency and operational resilience [10] - The energy sector is expected to maintain moderate prices and selective subsector outperformance in 2025, offering measured opportunities for investors [11]
Down 11% in 1 Month With a 3.7% Yield, Is This High-Yield Dividend Stock Too Cheap to Ignore, and Worth Buying in 2025?
The Motley Fool· 2024-12-29 12:35
ExxonMobil's Financial Health and Debt Management - ExxonMobil's net long-term debt and leverage are at their lowest levels in a decade [2] - The company has very little net debt on its balance sheet, with low financial debt-to-equity and debt-to-capital ratios [14] - ExxonMobil used excess profits in recent years to pay down debt, avoiding dependence on debt [14][13] Strategic Investments and Cost Efficiency - ExxonMobil has ramped up capital spending, focusing on high cash-flow generation projects like the Permian Basin, Guyana, and LNG portfolio [2] - The company achieved $11 billion in structural cost savings between 2019 and Q3 2024, with an additional $7 billion expected by 2030 [7] - ExxonMobil now generates over 50% of its production from advantaged assets, aiming for 60% by 2030, which helps drive down production costs [15] Earnings and Cash Flow Projections - ExxonMobil expects to grow annual cash flows by $30 billion compared to 2024 and $50 billion since 2019, with earnings growth of $20 billion versus 2024 and $35 billion since 2019 [9] - The company forecasts $165 billion in surplus cash between 2025 and 2030, allowing for sizable dividend raises and buybacks [10] - At $55 per barrel Brent, ExxonMobil expects $110 billion in cash surplus, which could rise to $280 billion if Brent averages $85 [17] Dividend and Shareholder Returns - ExxonMobil has raised its dividend for 42 consecutive years, offering a 3.7% yield compared to the S&P 500's 1.2% [11] - The company returned $140 billion to shareholders through buybacks and dividends between 2019 and Q3 2024 [7] - ExxonMobil can fund its capital projects and dividends even if Brent prices drop to $35 through 2027 and $30 by 2030 [17] Low-Carbon Technology Investments - ExxonMobil is investing heavily in low-carbon technologies like carbon capture and storage and hydrogen [8] - The company believes carbon capture can help deliver lower emissions power for data centers, with projects detached from the grid [8] Market Performance and Valuation - ExxonMobil's stock price fell by 11.25% over the past month, while the S&P Energy Select Sector Index dropped by 10.60% [12] - The company has a price-to-earnings ratio of 13.3, making it an inexpensive stock based on earnings during a period of mediocre oil prices [16] Corporate Plan and Future Growth - ExxonMobil updated its corporate plan on Dec 11, extending its targets from 2027 to 2030 [5] - The company's plan is based on generating positive cash flow without relying on debt, setting clear expectations for investors [13] - ExxonMobil stands out as a well-rounded oil and gas company to buy in 2025, with a clear outline for future growth [4][6]
ExxonMobil Stock Navigates Death Cross: Market Signals Turn Bearish For The Oil Giant
Benzinga· 2024-12-27 17:41
ExxonMobil Corp. XOM may be pumping out oil, but its stock chart has hit a dry spell. What Happened: ExxonMobil stock is about to form a death cross — a bearish technical indicator where the 50-day moving average falls below the 200-day moving average. Chart created using Benzinga ProA Slippery Slope For XOM StockThe numbers don't lie: Exxon's stock price of $106.49 is firmly below its 20-day ($111.37), 50-day ($116.32), and 200-day ($116.24) simple moving averages. The Moving Average Convergence Divergence ...
XOM Stock Up 8% in a Year: Is Now the Time to Buy, Sell, or Hold?
ZACKS· 2024-12-26 17:06
In the past year, Exxon Mobil Corporation (XOM) has gained 8.2%, surpassing the industry’s 1.6% growth. XOM’s long-term outlook remains promising, supported by a solid pipeline of profitable projects, its leading shareholder return and robust plans.One-Year Price Chart Image Source: Zacks Investment ResearchBefore considering the appropriate investment strategy for the stock, let’s delve into some key fundamentals of this energy leader.Driving ExxonMobil's Growth: Focus on Permian & GuyanaWith a strong focu ...
Exxon Mobil: Buy The Drop Opportunity
Seeking Alpha· 2024-12-24 05:07
Shares of Exxon Mobil (NYSE: XOM ) skidded in December, with selling pressure accelerating last week when the Federal Reserve guided for a slower pace of federal fund rate cuts in 2025. Since Exxon Mobil is growing its operations, completed the acquisition ofI look for high-risk, high-reward situations, mainly in the technology markets. I am an early buyer of Bitcoin and my portfolio mainly focused on companies with asymmetric long-term upside. My top holdings include: Bitcoin, Tesla, Google, Amazon and Nvi ...
ExxonMobil Finalizes $535M Liza Destiny FPSO Purchase
ZACKS· 2024-12-23 14:05
Exxon Mobil Corporation’s (XOM) subsidiary, ExxonMobil Guyana, has acquired the floating production, storage, and offloading (FPSO) unit, Liza Destiny, from SBM Offshore. The purchase, valued at $535 million, was finalized ahead of the FPSO's maximum lease term, originally set to expire in December 2029. This strategic move positions ExxonMobil as the unit's owner, while SBM Offshore remains responsible for its operations and maintenance through 2033.The transaction includes a $535 million cash consideratio ...
Where Will ExxonMobil Be in 5 Years?
The Motley Fool· 2024-12-23 12:07
ExxonMobil is promising investors big profits. If it can deliver by 2030, the share price should move much higher.So you say you want to invest in top-10 oil stock ExxonMobil (XOM 0.34%) -- but you'd first like some assurance that the stock will go up after you buy it, and not down? Then today may be your lucky day! ExxonMobil's management just launched a forecast that lays out in clear, concise numbers how it expects its business to perform both next year and over the next five years. Wall Street analysts ...
Exxon Mobil: A Solid Prospect With Market-Beating Potential
Seeking Alpha· 2024-12-19 21:29
With a market capitalization as of this writing of $491.5 billion, Exxon Mobil Corporation (NYSE: XOM ) is a true behemoth in the fossil fuel industry. The company touches on multiple parts of the energy space, not only when itCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow a ...
Inside ExxonMobil's $30 Billion Plan to Build the Energy Company of the Future
The Motley Fool· 2024-12-19 09:40
ExxonMobil (XOM -1.47%) is the hands-down leader of today's carbon-powered world. The company is an industry-leading producer of hydrocarbons. It's also the most profitable company in the sector by a wide margin. The energy giant expects to invest heavily over the next several years to continue growing its legacy hydrocarbon business. At the same time, it's also ramping up its investments in lower-carbon energy. Those investments should fuel billions of dollars in incremental earnings in the coming decades. ...