Core Viewpoint - U.S. energy company stocks experienced a decline in pre-market trading on February 2, with notable drops across major companies in the sector [2] Group 1: Company Performance - Occidental Petroleum saw a decrease of 3.1% [2] - ConocoPhillips dropped by 2.6% [2] - Halliburton's stock fell by 4.1% [2] - Schlumberger experienced a decline of 2.9% [2] - ExxonMobil's shares decreased by 1.5% [2] - Chevron's stock was down by 1.7% [2]

Core Viewpoint - Oil prices have dropped by 5%, leading to significant pre-market declines in the stock prices of major U.S. energy companies [1] Group 1: Company Stock Performance - Occidental Petroleum (OXY.US) shares fell by 3.1% [1] - ConocoPhillips (COP.US) shares decreased by 2.6% [1] - Halliburton (HAL.US) stock dropped by 4.1% [1] - Schlumberger (SLB.US) shares declined by 2.9% [1] - ExxonMobil (XOM.US) saw a decrease of 1.5% in its stock price [1] - Chevron (CVX.US) shares fell by 1.7% [1]

Group 1 - The article discusses the analysis of oil and gas companies, focusing on identifying undervalued firms within the sector [1] - The author emphasizes the cyclical nature of the oil and gas industry, highlighting the importance of patience and experience in navigating this market [2] - The investing group, Oil & Gas Value Research, seeks out under-followed oil companies and midstream firms that present attractive investment opportunities [2] Group 2 - The article mentions that the analysis includes a breakdown of companies' balance sheets, competitive positions, and development prospects [1] - The investing group features an active chat room for investors to discuss recent information and share investment ideas [2]

Group 1 - The article discusses the analysis of oil and gas companies, focusing on identifying undervalued firms within the sector [1] - The author emphasizes the cyclical nature of the oil and gas industry, highlighting the importance of patience and experience in investing [2] - The investing group, Oil & Gas Value Research, seeks out under-followed oil companies and midstream firms that present attractive investment opportunities [2] Group 2 - The article mentions that the investing group includes an active chat room for discussions among oil and gas investors, facilitating the sharing of recent information and ideas [2]

Market Performance - S&P 500 increased by 0.3% while Nasdaq decreased by 0.2% this week[1] - Small-cap stocks led the decline with Russell 2000 value down by 1.0% and Russell 2000 growth down by 3.1%[1] - Key sectors showing gains include telecommunications (+9.0%) and technology hardware (+4.6%) while software and services fell by 6.9%[1] Fund Flows - Estimated fund flow for S&P 500 components was -$84.1 million this week, a significant drop from +$5.6 million last week[2] - Major inflows were seen in technology hardware (+$40.3 million) and media and entertainment (+$39.5 million) while software and services experienced outflows of -$106.0 million[2] Earnings Forecast - S&P 500's forward 12-month EPS expectation increased by 0.8% this week, up from 0.2% last week[3] - Notable upward revisions were in technology hardware (+5.6%) and automotive (+3.2%) sectors, while energy saw a downward revision of -2.7%[3] Risk Factors - Economic fundamentals, international political uncertainties, U.S. fiscal policy, and Federal Reserve monetary policy present significant risks[3]

Market Performance - S&P 500 increased by 0.3% while Nasdaq decreased by 0.2% this week[1] - Small-cap stocks led the decline with Russell 2000 value down by 1.0% and Russell 2000 growth down by 3.1%[1] - 13 sectors saw gains, while 10 sectors experienced losses, with telecommunications leading at +9.0%[1] Fund Flows - Estimated fund flow for S&P 500 components was -$84.1 million this week, down from +$5.6 million last week[2] - Major inflows were seen in technology hardware (+$40.3 million) and media & entertainment (+$39.5 million)[2] - Significant outflows occurred in software & services (-$106.0 million) and healthcare equipment & services (-$57.7 million)[2] Earnings Forecast - S&P 500's forward 12-month EPS expectation increased by 0.8% this week, up from 0.2% last week[3] - 21 sectors had upward revisions, with technology hardware & equipment seeing the largest increase at +5.6%[3] - Energy sector saw a downward revision of -2.7%[3] Risks - Economic fundamentals, international political situations, U.S. fiscal policies, and Federal Reserve monetary policies present uncertainties[3]

Core Insights - Exxon Mobil Corporation (NYSE:XOM) is recognized as one of the 12 best long-term stocks to buy [1] Group 1: Valuation and Market Position - BofA raised Exxon's price target to $135 from $129 while maintaining a Neutral rating, indicating a focus on relative valuation among US and European integrated oil companies [2] - BofA prefers Buy-rated TotalEnergies and Chevron over Neutral-rated Exxon and Shell, and Underperform-rated BP, based on relative valuations within the supermajors [2] Group 2: Strategic Partnerships - Exxon Mobil and China's BYD have signed a long-term strategic Memorandum of Understanding to expand their partnership in hybrid vehicle technology, focusing on customized product R&D and new materials [3] - The collaboration follows the launch of a specialized engine oil for BYD's plug-in electric vehicles, indicating a commitment to innovation in the automotive sector [3] Group 3: Company Overview - Exxon Mobil is one of the largest integrated energy companies globally, involved in oil and natural gas exploration, production, refining, and manufacturing of fuels, petrochemicals, lubricants, and advanced plastics [4] - The company is also investing in lower-emission initiatives, including carbon capture and lithium production, reflecting a focus on sustainability [4]

Core Viewpoint - Lukoil, Russia's second-largest oil producer, has reached a tentative agreement to sell the majority of its international assets to Carlyle Group amid ongoing Western sanctions affecting Russian energy companies [1][2]. Group 1: Asset Sale Details - The deal includes Lukoil's oil and gas fields spanning from Iraq to Mexico, thousands of petrol stations in 20 countries, and refineries located in Bulgaria and Romania [2]. - The total book value of Lukoil's entire international business is reported to be $22 billion, although the specific value of the current deal has not been disclosed [2]. Group 2: Exclusions and Regional Interests - Lukoil's interests in Kazakhstan will not be included in the asset sale [2]. - Kazakhstan has submitted a bid to U.S. authorities to acquire stakes in Russian oil producers' energy projects within the country [3]. Group 3: Market Context and Future Outlook - The U.S. Treasury Department authorized potential buyers to negotiate with Lukoil for its foreign assets starting in November, which represent approximately 0.5% of global oil production [4]. - Despite the asset sale, analysts from S&P Global anticipate that Lukoil's oil and gas output from overseas operations will continue to rise through the end of the decade [4].

Core Insights - Chevron and Exxon Mobil reported their fourth-quarter earnings, with Exxon Mobil achieving its first quarterly profit increase in over a year, while Chevron's performance did not show similar growth [1] Group 1: Earnings Performance - Exxon Mobil's Q4 earnings per share (EPS) increased by 2.4% to $1.71, despite a revenue decline of 1.3% to $82.31 billion [1] - Chevron's earnings report did not indicate any profit growth, contrasting with Exxon's positive performance [1] Group 2: Market Context - Exxon Mobil entered stock market trading around record highs following its earnings report [1] - The overall market context includes external factors such as a winter storm affecting natural gas prices and airline operations, which may influence investor sentiment in the energy sector [1]

Core Viewpoint - Exxon Mobil reported fourth-quarter earnings and revenue that surpassed Wall Street expectations, driven by strong operational performance and cash generation [1][2] Financial Performance - The company posted earnings per share of $1.71, exceeding the consensus estimate of $1.68 [1] - Revenue for the quarter was $82.31 billion, a decline from the previous year but above analyst forecasts of $81.04 billion [1] Operational Strength - CEO Darren Woods stated that ExxonMobil has become fundamentally stronger in recent years, with improved value capture from production [2] - The company generated $12.7 billion in operating cash flow during the quarter [2] - Free cash flow for the quarter totaled $5.6 billion [2] Future Outlook - ExxonMobil is developing scalable growth platforms capable of supporting profitable expansion through 2030 and beyond [2]