Posted on 08/17/2005 2:09:32 PM PDT by WmShirerAdmirer
No. 1 oil producer beats forecasts, helped by bullish crude prices, but supply concerns weigh.
NEW YORK (Reuters) - Exxon Mobil Corp., the world's largest publicly traded oil company, posted a 32 percent rise in quarterly profit Thursday, fueled by a relentless surge in crude oil prices and strong refining profits.
But a more than 4 percent drop in oil and gas production in the second quarter tempered much of the enthusiasm, adding to Wall Street concerns that large oil companies are finding it increasingly difficult to boost output.
Nevertheless, like its peers, Exxon (down $0.34 to $59.26, Research) has continued to bask in the glow of an extended bullish run in oil and gas prices, spurred by soaring demand in Asia and increasingly stretched global supplies of crude. Oil prices topped $62 a barrel earlier this month to touch yet another record high.
Persistently strong refining and marketing margins also helped boost the company's bottom line.
"Oil and gas production volumes (and earnings) were disappointing in the quarter, but this was offset by a now-familiar bonanza in the refining and marketing division - particularly in the U.S.," Credit Suisse First Boston analysts said in a research note.
Net income was $7.64 billion, or $1.20 a share, in the second quarter, compared with $5.79 billion, or 88 cents a share, in the year-earlier quarter.
Excluding a $200 million charge for a lawsuit provision, the company earned $1.23 per share. Analysts, on average, expected Exxon to earn $1.22 per share, according to Reuters Estimates.
The Irving, Texas company, which has maintained a large stock buyback program as its cash pile soars alongside oil prices, said it would further increase its share repurchase level to $5 billion in the third quarter.
(Excerpt) Read more at money.cnn.com ...
I don't know the details, but I do know that there is an army of accountants in the Dallas area.
That's what I thought he said too.
This is what happens when you sell products below the market-clearing price.
When the consumers you provide for and the economy that we all rely on suffers so tremendously, a truly ethical American Corporation would take steps to alter the situation, but not these scumbags!
Calm down, and read some economics books. Exxon is doing exactly what they should. The high price of gas reflects the reality of a constrained supply, and encourages conservation and alternative energy sources.
Google "price elasticity of demand". It is not, nor should be a one to one relationship. In this instance, the price goes up a lot more than the demand for oil by industries because people fear that there is not much oil to go around, so they bid up the price in order to guarantee future supplies.
Why didn't you invest in them?
DING! DING! DING! Give that man a cheroot!
You can hide a lot of gouging behind the "surge" in crude prices.
People might say that, and people might strike. However, they would only be harming themselves, and would not reduce the price of gas. It might be reduced while they are striking, but will go back up as soon as they stop striking.
Exxon, stock XOM, has gained 36% since I bought it less than a year ago. The only stock I have that has done better is AMD, which has almost doubled in one year. Tax free growth Roth IRA doncha know. If you can't beat em. . .
What, you didn't get a 78 % pay raise at work? < sarcasm > Doesn't matter...I make X amount of dollars an hour, if I have to spend it on Chinese products at Wal-Mart because of high oil prices than I can't be held responsible for American job losses.
What are you going to do. When I got my work van last year it cost sixty dollars. Today it was ninety-six. Every five days that gets paid to these hosebags. I didn't like .99 cent gas when they were keeping the price high in the late eighties. I like it even less now. Before someone argues the price in the late eighties with me, my father was an exec at Oxy. He gave me the figure of .80 cents for our .99 cent gas. If you want to take issue with him, grab a shovel and go to the Windbury Memorial Park.
Exxon holds vast reserves of oil. When the price of oil goes up, they sell those reserves higher. Most of the increased profits comes from this, not from the gas stations. There is no gouging. Gasoline is an incredibly efficient marketplace.
Damn, If I would have known the war would do this to gas prices, I would have invested. See #26.
Is that true, or is it a fee per gallon? I just can't see them (or the feds) taking less when prices fall.
I understand the price elasticity, and I don't mind the oil companies making a profit - that's why they're in business. What I mind is having to get a cosigner in order to fill my tank up.
And no, neither my wife or I drive gas guzzlers or have gazillion mile commutes to work....
They take a certain number of cents per gallon, so the take depends only on the volume of gas sold, not the price of the gas.
Though it does appear that the President is asleep at the ranch, instead of getting in front of what will likely turn into an issue that burn him and the GOP, though it shouldn't. How hard would it be to issue an executive order this week suspending and consolidating the 40+ different EPA/state mandated fuel standardss into a half dozen? Might not make a huge difference, but it would help some in reducing regional shortages and ineffiencies that drive up price. Second the symbolism of him being proactive would be good PR (something this admin at times appears to be tone deaf about, and it doesn't help that the WH spokesperson looks like a Mongoloid punching bag) at a small cost. Third, while the media and enviro's would howl, it would put the issue on the front burner of public debate, educating many who previously had no idea that these contributed to both shortages and price hikes. Such a debate is good, and would again help out that these lib groups are once again on the wrong side of consumer interests.
But of course Rove is a genius, so sitting back and appearing to do nothing is obviously the better approach. < / sarc >
That is a great idea.
Since companies exist to maximize profits for their investors that probably wouldn't work very well but what would work is for the tax collectors to give up their chunk of change. .38 a gallon (here in Texas) isn't much, but it's a start.
Perhaps when goobermint types that are supposed to represent us (and don't produce a drop of gas) lead the way and relax taxes corporations can start thinking along those lines.
I ain't waiting for pigs to fly.
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