Group 1 - The article discusses the analysis of oil and gas companies, specifically focusing on identifying undervalued companies in the sector [1] - The author emphasizes the importance of understanding the balance sheet, competitive position, and development prospects of these companies [1] - The oil and gas industry is characterized as a boom-bust, cyclical industry that requires patience and experience for successful investment [2] Group 2 - The author has a beneficial long position in Exxon Mobil (XOM) through various financial instruments [3] - The article expresses the author's personal opinions and is not influenced by compensation from any company mentioned [3] - There is a call to action for readers to sign up for a free two-week trial of the Oil & Gas Value Research service for more in-depth analysis [1]

Chevron Corporation ( CVX ) hit a major milestone in closing the acquisition of Hess Corporation following the arbitration win brought on by Exxon Mobil ( XOM ) relating to the Stabroek assets. With added production volumes and cost synergies coming intoMonte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across indust ...

1. Report Industry Investment Rating - Not provided in the given content 2. Core Views - In July, influenced by macro - policies such as "anti - involution and elimination of backward production capacity", black - series coking coal and coke led the rise. Stable - economy policies from meetings boosted the polyolefin futures. After the digestion of positive factors, prices returned to fundamental trading. With multiple new plants coming into operation in July and more to come, the supply - side pressure is high. Currently in the maintenance season, the pressure from new capacity expansion is temporarily offset. OPEC+ production - increase plans dragged down oil prices, weakening cost - side support. Downstream demand is in the seasonal off - season, with limited highlights expected. Mid - and upstream inventories are slowly decreasing, but the total inventory is higher compared to the same period [1][2]. - Domestic new plants: Jilin Petrochemical's 400,000 - ton/year HDPE plant and Yulong Petrochemical's 500,000 - ton/year PP plant were successfully put into operation in July. Many other plants are waiting to start production, indicating continuous growth in domestic polyolefin new - plant capacity. For domestic existing plants, PE maintenance losses are at a high level year - on - year, some PDH plants have restarted, and PDH - made PP plant maintenance has decreased. Overseas, no new plants were put into operation in July, and overseas under - construction plants face many uncertainties and delays may be common. Overseas PE and PP operating rates have decreased slightly. The LLDPE import window is closed, and China's PE and PP imports are continuously decreasing [2]. - In terms of inventory and demand, downstream demand for polyolefins remains in the seasonal off - season, with factories mainly making rigid purchases. The operating rate of PE's downstream agricultural film has a slight rebound, while the demand for packaging film is weak. The operating rate of PP's downstream woven products fluctuates slightly. The demand side is expected to remain weak. Mid - and upstream polyolefin inventories are slowly decreasing, but the total inventory is higher year - on - year [2]. 3. Strategies - Unilateral: Neutral [3] - Inter - delivery: L09 - L01 reverse spread, PP09 - PP01 reverse spread [3] - Inter - variety: Narrow the spread between PP2601 and 3MA2601 [3] 4. Summary by Relevant Catalogs 4.1 Polyolefin Basis Structure - The report provides charts of the main contract trends, basis, and inter - delivery spreads of LL and PP, including LL North China - main contract basis, L1 - L5, L5 - L9, L9 - L1 for LL, and PP East China - main contract basis, PP1 - PP5, PP5 - PP9, PP9 - PP1 for PP [15]. 4.2 Polyolefin Production Plan - Domestic: Multiple plants have been put into operation in 2025, and many are waiting to start production, such as ExxonMobil Huizhou's 500,000 - ton/year LDPE plant. The total planned production capacity of new domestic plants is large, indicating continuous growth in domestic supply [18][20]. - Overseas: Some plants were put into operation in 2025, and many are in the un - started state. Overseas under - construction plants face many uncertainties, and delays may be common [22]. 4.3 Polyolefin Maintenance Plan - PE: The maintenance season of PE plants has ended, and maintenance losses have increased. The report shows historical maintenance data of PE, oil - based PE, coal - based PE, and alkane - based PE [23][36]. - PP: PP plant maintenance losses fluctuate slightly, and the maintenance volume of PDH - made PP plants is still at a high level [36]. 4.4 Polyolefin Monthly Output - In June, domestic PE output was 2.555 million tons, a decrease of 49,000 tons from May. LLDPE output decreased by 44,000 tons, HDPE increased by 27,000 tons, and LDPE decreased by 33,000 tons. Domestic PP output was 3.165 million tons, a decrease of 14,000 tons from May. PP fiber output increased by 12,000 tons, PP homopolymer decreased by 10,000 tons, and PP copolymer remained unchanged [47]. 4.5 Polyolefin Production Profit and Operating Rate - PE: The production profit of oil - based PE is - 130 yuan/ton, and the operating rate is 90.2%, an increase of 6.3% from last month. With the restart of maintenance plants, the operating rate is expected to increase [62]. - PP: The production profit of oil - based PP is - 522 yuan/ton, and that of PDH - made PP is 394 yuan/ton. The PDH - made PP operating rate is rising. The overall PP operating rate is 83.6%, a decrease of 0.6% from last month [62]. 4.6 Polyolefin Non - standard Price Spread and Operating Ratio - PE: The production ratio of LLDPE and HDPE has decreased, while that of LDPE has increased. The operating ratio of LLDPE, HDPE, and LDPE has changed accordingly. The non - standard price spreads between HD injection - LL and LDPE - LLDPE have different trends [69]. - PP: The production ratios of PP fiber and PP copolymer injection have decreased, while that of PP non - standard homopolymer injection has increased. The operating ratios of different PP products have also changed, and the non - standard price spread between PP low - melt copolymer and PP fiber has declined [69]. 4.7 Polyolefin Outer - market Price Spread and Import - Export Profit - LL: The import profit in East China is - 26 yuan/ton, and the export profit is - 69 US dollars/ton. The import window is closed, and China's PE imports are decreasing [85]. - PP: The import profit of PP fiber in East China is - 445 yuan/ton, and the export profit is - 26 US dollars/ton. China's PP imports and exports have decreased [85]. 4.8 Polyolefin Downstream Operating Rate and Downstream Profit - PE: The operating rate of PE's downstream agricultural film is 27%, an increase of 10% from last month. The operating rate of PE's downstream packaging film is 51%, remaining unchanged from last month [109]. - PP: The operating rate of PP's downstream woven products is 41%, a decrease of 1% from last month. The operating rate of PP's downstream BOPP is 58%, a decrease of 1% from last month. The operating rate of PP's downstream injection molding remains unchanged [109]. 4.9 Polyolefin Downstream Inventory and Order Situation - PE: The raw - material inventory days of PE's downstream agricultural film are 8.1 days, remaining unchanged from last month. The order days are 2.8 days, a decrease of 0.1 days from last month. The raw - material inventory days of PE's downstream packaging film are 7.2 days, an increase of 0.1 days from last month. The order days are 8.1 days, an increase of 0.2 days from last month [115]. - PP: The raw - material inventory days of PP's downstream BOPP are 9.1 days, a decrease of 0.4 days from last month. The finished - product inventory days are 10.6 days, a decrease of 0.2 days from last month. The order days are 8.7 days, a decrease of 0.3 days from last month. The raw - material inventory days of PP's downstream woven products are 6.7 days, a decrease of 0.6 days from last month. The finished - product inventory days are 6.1 days, a decrease of 0.3 days from last month. The order days are 6.9 days, a decrease of 0.6 days from last month [115]. 4.10 Polyolefin Actual Inventory - The upstream petrochemical inventory is 750,000 tons, an increase of 30,000 tons from last month. As the downstream is still in the off - season in August, the inventory is expected to increase slightly [130].

Investment Rating - The report maintains a "Weaker than Market" rating for the U.S. stock market [1] Core Insights - The U.S. stock market experienced a sudden pullback influenced by non-farm employment data, with the S&P 500 declining by 2.4% and the Nasdaq by 2.2% [3] - Among sectors, large-cap value stocks outperformed large-cap growth and small-cap stocks, indicating a preference for stability in turbulent market conditions [3] - The report highlights that three sectors saw gains while 21 sectors faced declines, with utilities, food and staples retailing, and media and entertainment being the only sectors to rise [3] Summary by Sections Price Trends - The S&P 500 fell by 2.4% and the Nasdaq by 2.2% this week, with large-cap value stocks declining by 1.8% compared to a 3.1% drop in large-cap growth stocks [3] - Utilities (+1.6%), food and staples retailing (+0.9%), and media and entertainment (+0.2%) were the only sectors to increase, while transportation (-5.9%), materials (-5.1%), and retail (-4.8%) faced the largest declines [3] Fund Flows - The estimated fund flow for S&P 500 constituents was -$16.95 billion this week, a significant increase from the previous week's -$2.2 billion [4] - Media and entertainment (+$1.59 billion), utilities (+$0.27 billion), and food and staples retailing (+$0.042 billion) saw inflows, while healthcare equipment and services (-$3.47 billion) and financials (-$4.15 billion) experienced the largest outflows [4] Earnings Forecast - The report indicates a 0.6% upward adjustment in the 12-month EPS forecast for S&P 500 constituents, with 18 sectors seeing an increase and 5 sectors experiencing downgrades [5] - Retail (+3.3%), media and entertainment (+2.0%), and technology hardware (+1.5%) led the upward revisions, while healthcare equipment and services faced a significant downgrade of -3.6% [5]

Group 1 - China is actively supporting open cooperation and attracting foreign investment, as evidenced by events like the Chain Expo and the upcoming Import Expo [1] - Henkel's investment in China includes the acquisition of a factory in Suzhou and the launch of a new factory in Yantai, with a total investment of approximately 900 million RMB [1] - The resilience of the Chinese market continues to encourage multinational companies to invest, as seen with the recent 500 million RMB investment by the German company Voith in Suzhou [1] Group 2 - The potential of China's green economy is attracting global investors, with Schneider Electric emphasizing the importance of digitalization and low-carbon initiatives [2] - Schneider Electric has established 21 "zero-carbon factories" in China, significantly reducing carbon emissions through digital technologies [2] - ExxonMobil's Huizhou ethylene project, with a total investment of 10 billion USD, has commenced production using green technologies to reduce nitrogen oxide emissions by 50% and greenhouse gas emissions by 35% [2] Group 3 - The Huizhou project will produce high-value chemical raw materials for various industries, highlighting China's role as a key player in technology innovation and global standards [3] - Danfoss views green initiatives as a common language and a significant driver of growth in China-EU trade, with strong growth expected in sectors like data centers and energy storage [3]

(投资中国)多家跨国企业持续加码中国市场 中新社北京8月2日电 (陶思阅)从近期结束的链博会到11月将举行的进博会，中国以实际行动力挺开放合 作，吸引多家外企持续加码投资。 德国化工企业汉高大中华区总裁安娜表示，借助进博会平台，汉高深度串联起产业链上下游资源，加速 全球创新方案在本土的落地生根。这更坚定了其持续加码中国市场的决心。 在工业领域，今年3月，汉高完成对苏州博克工厂的收购。同月，总投资约9亿元人民币的汉高鲲鹏工厂 在山东烟台启动试生产。全新的汉高粘合剂上海应用技术中心于5月正式投用，通过本地化的应用测试 和工艺放大，进一步加速创新成果落地转化。 尽管全球经济存在诸多不确定性，中国市场仍保持着强劲韧性。世界第二大经济体的长期增长潜力，让 跨国企业继续作出投资中国的决定。 该项目投产后，将规模化生产高附加值化工原料，应用于消费品包装、汽车制造、家电生产等领域。 特种化学品公司路博润亚太区副总裁刘茂树表示，中国不仅是技术创新的策源地，更是全球标准制定的 关键参与者。随着"国七"排放标准的推进，该公司的润滑油业务版块将加强自主创新，进一步降低灰分 与磷含量。 丹佛斯是来自丹麦的知名工业企业。丹佛斯中国区总裁 ...

ExxonMobil and Chevron reported much lower second-quarter profits as the price of oil slumped. https://t.co/fvTFF5mUeB ...

Exxon Mobil Corp. warned its project to build the world’s biggest low-carbon hydrogen plant in Texas could face delays after Congress curtailed incentives as part of President Donald Trump’s tax and spending package. https://t.co/psZe6EM7Yl ...

Key Takeaways XOM posted Q2 EPS of $1.64, beating estimates but down y/y from $2.14 on lower energy prices.Higher U.S. liquid production and seasonal refining demand boosted results despite the top-line weakness.Chemical earnings dropped on compressed margins, while Specialty Products hit record sales volumes.Exxon Mobil Corporation (XOM) reported second-quarter 2025 earnings per share of $1.64 (excluding identified items), which beat the Zacks Consensus Estimate of $1.49. The bottom line declined from the ...

I would tell you we were very surprised. I think as you and I talked about that morning, I was surprised. If you remember when we talked about this in the past, uh Exxon negotiated and wrote co-wrote with Shell, uh the the agreement that the the operating agreement for Guyana.We understood the intent of that document and we firmly believe that the language in the document conveyed that intent. As we went into the arbitration, we went back to the folks who negotiated. We went back and talked to Shell about i ...