Posted on 07/29/2016 9:09:34 AM PDT by bananaman22
ExxonMobil reported on Friday earnings of US$1.7 billion for the second quarter, a 59-percent tumble on the year, amid sharply lower commodity prices and weaker refining margins.
Earnings per share assuming dilution fell to US$0.41 from US$1.00 for the second quarter last year, missing Thomson Reuters’ analyst expectations of US$0.64 earnings per share.
Upstream earnings plummeted by US$1.7 billion, to US$294 million in the second quarter of 2016, and the U.S. upstream segment posted a loss of US$514 million, swelled from a loss of US$47 million in the second quarter of 2015. Non-U.S. upstream earnings tumbled by US$1.3 billion, to US$808 million.
(Excerpt) Read more at oilprice.com ...
Poor Exxon!
No more Masterpiece Theater
Gee, missed ANALysts expectations. Let me see, oil has been trading near 20 year lows and they missed their lolfty expectations. XOM was trading near 90p/s, nearly double its ten year low of 50 or so in 2005 and near its high of about 110. Meanwhile Iran is pushing out record amounts of crude now into a saturated market.
The last time Exxon plunged I picked up a nice dividend and later made some easy money on it. Get paid a 3.4% yield right now.
When missiles start flying in the Middle East see what happens to the price of oil. Its an unstable place.
I think the political instability of Venezuela and Nigeria—over 4 million barrels per day of production now—has to worry people. If either of them go offline due to political instability, the price of oil could rocket to $75 to $80 per barrel in a blink of an eye.
Yes, there is a lot of political instability in the world. Eventually prices will jump back up for one reason or another. Who knows when? But what I am reasonably sure of with XOM is that, in the meantime, its nice to enjoy a good (tax advantaged) yield while you wait for the next oil price recovery.
What I do see right now, and have been seeing for a few years now, is an oil glut. I know that can change but XOM’s earnings report the past, not the future. ANALysts ability to project, as evidenced by how much they missed the mark here, have not been good. I agree that unstable regions have an effect on the price of oil.
XOM made a big play for shale when they bought XTO. ANALysts thought it was a good deal. Maybe we find out in the future. FWIW I have a decent sized portfolio of EandP companies. IMO, the market prices snapped back too much and are ahead of themselves right now even with some unstability baked in.
I still hold a sizeable chunk of Exxon that was acquired long ago but I’ve done a little side trading on swings that’s been profitable for me. However....I took a bath on an MLP when prices crashed. Those things happen. lol
As you probably know, if you’re in the markets long enough you learn a few lessons the hard way. :)
Yes, paid my dues too! Especially last year when the E and Ps fell apart.
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