Latest news with #XOM
Yahoo
4 days ago
- Automotive
- Yahoo
UBS Reaffirms a Buy Rating on Exxon Mobil Corporation (XOM)
Exxon Mobil Corporation (NYSE:XOM) is among the 13 Best Hydrogen and Fuel Cell Stocks to Buy According to Analysts. Josh Silverstein, a UBS analyst, set a price objective of $130.00 and reaffirmed his Buy recommendation on Exxon Mobil on June 4. Aerial view of a major oil rig in the middle of the sea, pumping crude oil. Exxon Mobil Corporation (NYSE:XOM) reported $83.1 billion in sales for the first quarter of 2025, a modest 0.06% year-over-year rise, but it fell just short of analysts' forecasts by $3 billion. However, earnings per share were above forecasts by $0.02, reaching $1.76. Exxon Mobil has been focusing on cost reduction, increasing its most profitable volumes, and enhancing efficiency since 2019. Considering the state of the market, these measures have raised quarterly earnings by almost $4 billion. It intends to bring 10 high-return projects online in 2025, with a predicted earnings increase of more than $3 billion by 2026 if prices and margins remain stable. Exxon Mobil Corporation (NYSE:XOM) engages in the production, trading, transportation, and sale of crude oil, natural gas, petroleum products, petrochemicals, and specialized products. The business is also concentrating on opportunities for reduced emissions, such as hydrogen, carbon capture and storage, and the production of sustainable fuels. While we acknowledge the potential of XOM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025. Disclosure. None.
Yahoo
4 days ago
- Automotive
- Yahoo
UBS Reaffirms a Buy Rating on Exxon Mobil Corporation (XOM)
Exxon Mobil Corporation (NYSE:XOM) is among the 13 Best Hydrogen and Fuel Cell Stocks to Buy According to Analysts. Josh Silverstein, a UBS analyst, set a price objective of $130.00 and reaffirmed his Buy recommendation on Exxon Mobil on June 4. Aerial view of a major oil rig in the middle of the sea, pumping crude oil. Exxon Mobil Corporation (NYSE:XOM) reported $83.1 billion in sales for the first quarter of 2025, a modest 0.06% year-over-year rise, but it fell just short of analysts' forecasts by $3 billion. However, earnings per share were above forecasts by $0.02, reaching $1.76. Exxon Mobil has been focusing on cost reduction, increasing its most profitable volumes, and enhancing efficiency since 2019. Considering the state of the market, these measures have raised quarterly earnings by almost $4 billion. It intends to bring 10 high-return projects online in 2025, with a predicted earnings increase of more than $3 billion by 2026 if prices and margins remain stable. Exxon Mobil Corporation (NYSE:XOM) engages in the production, trading, transportation, and sale of crude oil, natural gas, petroleum products, petrochemicals, and specialized products. The business is also concentrating on opportunities for reduced emissions, such as hydrogen, carbon capture and storage, and the production of sustainable fuels. While we acknowledge the potential of XOM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025. Disclosure. None.
Business Insider
15-06-2025
- Business
- Business Insider
Powell Faces Tough Fed Call as Oil Surges and Middle East Conflict Escalates
The upcoming Fed meeting is garnering more attention following the surge in oil prices and the escalation of tensions in the Middle East. Just a few weeks ago, markets were confident that rate cuts were coming later this year. Now, that outlook is getting cloudy. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter On June 13, Iran fired more than 150 ballistic missiles and over 100 drones at Israel in response to Israeli airstrikes. The attack sent Brent crude up 7.96% to $74.76 and West Texas Intermediate (WTI) to $73.92, both hitting five-month highs. With the Strait of Hormuz in focus, traders say prices could move past $80, or even hit $120, if the situation gets worse. That's a problem for the Fed. Rising oil prices tend to push inflation higher, which could prompt the Fed to reconsider cutting rates. Clear Market Signals The S&P 500 dropped roughly 1% on Friday as investors pulled back from sectors that don't do well in a high-rate environment. Travel and airline stocks took a hit, while energy and defense stocks saw modest to more meaningful gains. Stocks such as (XOM), (CVX), and (LMT) all moved higher. Gold stayed close to all-time highs, and the dollar got a boost, showing a clear move toward safety. If the Fed comes out sounding worried about inflation and signals no cuts for now, volatility could stick around. Tech, real estate, and consumer stocks might take another hit. But if the Fed's Chair, Jerome Powell, leaves the door open for easing later this year, especially if oil prices calm down, markets might bounce. TipRanks data indicates that more analysts have been focusing on energy and defense recently. Stocks like (SLB), (HAL), and (RTX) have picked up upgrades, while outlooks on consumer names have softened. For now, markets are in wait-and-see mode. The Fed's tone this week will shape how investors position for the rest of the summer. If oil keeps climbing and inflation starts to creep back up, rate cuts may be off the table. We used TipRanks' Comparison Tool to bring together the energy and defense stocks mentioned above, giving you a broader view of each company and how it stacks up within its industry.
Globe and Mail
11-06-2025
- Business
- Globe and Mail
How ExxonMobil's Upstream Business is Coping With Falling Oil Prices
Exxon Mobil Corporation XOM generates a significant portion of its earnings from the upstream business, which is positively correlated with oil prices. Given that the price of West Texas Intermediate (WTI) crude has declined more than 7% since the beginning of the year, XOM's exploration and production business is likely to take a hit. The latest short-term energy outlook from the U.S. Energy Information Administration ('EIA') reveals that the WTI spot average price in 2025 will be $62.33 per barrel, lower than $76.60 per barrel last year. The price of the commodity for 2026 is projected to further fall at $55.58 per barrel. Increasing inventories of oil across the world are leading to declining oil prices. Undoubtedly, the declining oil prices are adversely impacting ExxonMobil's upstream business and will continue doing so. Now, the billion-dollar question is: To what extent? Given that XOM has a significant presence in the Permian – the most prolific basin in the United States – where the breakeven costs are significantly lower than the prices at which analysts expect oil prices to trade, the largest integrated energy player is unlikely to witness a loss from its upstream operations. However, profits are expected to get squeezed following lower crude prices. Are CVX & BP Also Bearing the Brunt of Soft Oil Prices? Both Chevron Corporation CVX and BP plc BP generate significant earnings from their upstream operations, and hence are bearing the blow of softer oil prices. In the Permian, Chevron's operations cover approximately 1.8 million net acres within the sub-basins of Delaware and Midland. Being a major player in the region, the breakeven costs of CVX are also low to combat the softer crude pricing environment. In the first quarter of this year, CVX mentioned that Permian primarily aided its production volumes. BP also has solid upstream operations, comprising a top-tier oil and gas business in attractive basins. BP is also a low-cost producer. The British energy giant claimed that it has been able to keep the cost of producing oil very low. Thus, BP is among the lowest-cost producers in the industry. XOM's Price Performance, Valuation & Estimates Shares of XOM have gained only 1.6% year to date, outpacing the 0.9% improvement of the composite stocks belonging to the industry. From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.65X. This is above the broader industry average of 4.15X. The Zacks Consensus Estimate for XOM's 2025 earnings hasn't been revised over the past seven days. XOM stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Yahoo
04-06-2025
- Business
- Yahoo
Is ExxonMobil's Plan for $35 Oil Breakeven Going to be a Game Changer?
Exxon Mobil Corporation XOM mentioned in its recent earnings call that it plans to lower its breakeven costs to $35 per barrel by 2027 and $30 per barrel by 2030. Now, the billion-dollar question lies with the investors: To what extent will this lower breakeven, if achieved, aid XOM? This is a realistic question that should arise in every investor's mind since the integrated energy giant derives the lion's share of its earnings from its upstream business. The no-brainer answer is that this level of low breakeven costs will be highly beneficial for XOM's bottom line, especially from its upstream business. In other words, ExxonMobil will remain profitable even if crude oil prices drop significantly and stand to earn substantially more when prices climb. To add to that, even during most months of 2020, when energy demand collapsed due to the COVID-19 pandemic, ExxonMobil's upstream operations could have been profitable if its breakeven costs had been $30 per barrel. Per data from the U.S. Energy Information Administration, the Cushing, OK, WTI Spot prices for March, April and May were only below the $30 per barrel mark. Thus, there is no doubt that this development, if achieved, is going to be a game changer for ExxonMobil. According to Statista, a leading platform for data collection and visualization, the breakeven price in the Permian, especially in the Delaware and Midland sub-basins, is well below $40 per barrel. Hence, companies operating in the Permian, like Chevron Corporation CVX and EOG Resources Inc. EOG, are experiencing low breakeven prices. In 2024, CVX conducted 80% of its development activities in the Delaware basin. Chevron plans to increase the development program in the Delaware basin to 85% this year. This simplifies CVX's strong focus on low breakeven-cost operations to maximize its profit. In its recent earnings call, EOG said that it could easily handle all its planned spending for this year, even if oil prices trade in the low $50 per barrel. That means that to remain financially healthy, EOG does not need high oil prices. Shares of ExxonMobil have declined 4.4% over the past year, outpacing the 6.3% fall of the composite stocks belonging to the industry. Image Source: Zacks Investment Research From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.45x. This is above the broader industry average of 4.05X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for ExxonMobil's 2025 earnings has been revised downward over the past seven days. Image Source: Zacks Investment Research XOM currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report EOG Resources, Inc. (EOG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
