PASADENA, CA-OCTOBER 7, 2022: California Attorney General Rob Bonta holds a press conference. (Mel ... [+] Melcon / Los Angeles Times via Getty Images)Los Angeles Times via Getty Images ExxonMobil filed suit in a U.S. District Court in Beaumont, Texas Monday, targeting California Attorney General Rob Bonta and an array of environmental NGOs including the Sierra Club over what it says are smears related to its advanced plastic recycling business. In addition to the Sierra Club, other NGOs named as defendants ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

KEY TAKEAWAYSExxonMobil said it expects to take an up to a $900 million hit to its upstream earnings in the fourth quarter versus the previous three months amid falling oil prices.Lower liquids prices are set to bring down its upstream earnings by between $500 million to $900 million in the fourth quarter of 2024 compared with the third quarter.The forecasted earnings hit comes at a time when demand for oil is soft and there is an oversupply of the commodity. ExxonMobil (XOM) said it expects to take an up t ...

Exxon Mobil Corporation (XOM) has filed a lawsuit against California Attorney General Rob Bonta and several environmental groups, accusing them of defaming its advanced plastic recycling initiatives, per a Reuters report. This legal move is part of ExxonMobil’s broader response to increasing criticism from environmentalists and legal challenges related to its role in climate change and greenhouse gas emissions.The lawsuit, filed in the federal court of Beaumont, TX, alleges that Bonta, in collaboration with ...

Energy Select Sector SPDR Fund Stock Forecast Today12-Month Stock Price Forecast:$87.47-0.58% Downside Moderate BuyBased on 382 Analyst RatingsHigh Forecast$87.47Average Forecast$87.47Low Forecast$87.47Energy Select Sector SPDR Fund Stock Forecast DetailsThe oil price outlook is good for energy companies because it is depressed, averaging a long-term low for Q4 and at an extreme level likely to increase as the year progresses. This means the outlook for energy company earnings is likely too low and that an ...

Market Performance Overview - The S&P 500 achieved a total return of 23.3% in 2024, building on its 24.2% gain in 2023, driven by optimism around AI and Federal Reserve interest rate cuts [1] - Seven out of eleven sectors underperformed the broader benchmark, while five sectors delivered returns of at least 20% [1] Artificial Intelligence Sector - AI stocks led the market surge, with Nvidia gaining 171% and Broadcom rising 108% in 2024 [2] - Consumer discretionary stocks outperformed in Q4 2024 with double-digit returns, while health care and materials sectors faced double-digit losses [2] Energy Sector Performance - The energy sector delivered a modest total return of 5.6% in 2024, with significant variance across subsectors [3] - Midstream companies led the energy sector with an average total return of 20.8%, with Targa Resources Corp. delivering a 110.1% return [4] - Upstream companies recorded an average gain of only 1.5%, with PrimeEnergy Resources and Comstock Resources leading at 106.5% and 105.9% respectively [5] - The refining segment struggled, with the "Big Three" refiners (Marathon Petroleum, Valero, Phillips 66) posting an average decline of 6.2% [6] - Integrated supermajors ended the year down an average of 3.1%, with ExxonMobil gaining 11.3% and Chevron eking out a 1.3% gain [7] Outlook for 2025 - The energy sector faces a mixed outlook for 2025, with a favorable regulatory environment under the incoming Trump Administration expected to benefit oil and gas operators [8] - OPEC+ production cuts and record U.S. oil output are likely to keep oil prices subdued, resulting in modest profitability for the sector [9] - Midstream companies remain well-positioned due to stable cash flows and attractive yields, while upstream and refining companies will need to focus on cost efficiency and operational resilience [10] - The energy sector is expected to maintain moderate prices and selective subsector outperformance in 2025, offering measured opportunities for investors [11]

ExxonMobil's Financial Health and Debt Management - ExxonMobil's net long-term debt and leverage are at their lowest levels in a decade [2] - The company has very little net debt on its balance sheet, with low financial debt-to-equity and debt-to-capital ratios [14] - ExxonMobil used excess profits in recent years to pay down debt, avoiding dependence on debt [14][13] Strategic Investments and Cost Efficiency - ExxonMobil has ramped up capital spending, focusing on high cash-flow generation projects like the Permian Basin, Guyana, and LNG portfolio [2] - The company achieved $11 billion in structural cost savings between 2019 and Q3 2024, with an additional $7 billion expected by 2030 [7] - ExxonMobil now generates over 50% of its production from advantaged assets, aiming for 60% by 2030, which helps drive down production costs [15] Earnings and Cash Flow Projections - ExxonMobil expects to grow annual cash flows by $30 billion compared to 2024 and $50 billion since 2019, with earnings growth of $20 billion versus 2024 and $35 billion since 2019 [9] - The company forecasts $165 billion in surplus cash between 2025 and 2030, allowing for sizable dividend raises and buybacks [10] - At $55 per barrel Brent, ExxonMobil expects $110 billion in cash surplus, which could rise to $280 billion if Brent averages $85 [17] Dividend and Shareholder Returns - ExxonMobil has raised its dividend for 42 consecutive years, offering a 3.7% yield compared to the S&P 500's 1.2% [11] - The company returned $140 billion to shareholders through buybacks and dividends between 2019 and Q3 2024 [7] - ExxonMobil can fund its capital projects and dividends even if Brent prices drop to $35 through 2027 and $30 by 2030 [17] Low-Carbon Technology Investments - ExxonMobil is investing heavily in low-carbon technologies like carbon capture and storage and hydrogen [8] - The company believes carbon capture can help deliver lower emissions power for data centers, with projects detached from the grid [8] Market Performance and Valuation - ExxonMobil's stock price fell by 11.25% over the past month, while the S&P Energy Select Sector Index dropped by 10.60% [12] - The company has a price-to-earnings ratio of 13.3, making it an inexpensive stock based on earnings during a period of mediocre oil prices [16] Corporate Plan and Future Growth - ExxonMobil updated its corporate plan on Dec 11, extending its targets from 2027 to 2030 [5] - The company's plan is based on generating positive cash flow without relying on debt, setting clear expectations for investors [13] - ExxonMobil stands out as a well-rounded oil and gas company to buy in 2025, with a clear outline for future growth [4][6]

Core Viewpoint - ExxonMobil's stock is facing bearish signals, highlighted by a potential death cross in its moving averages, indicating a challenging market environment for the company [1][7]. Stock Performance - ExxonMobil's current stock price is $106.49, which is below its 20-day ($111.37), 50-day ($116.32), and 200-day ($116.24) simple moving averages [2]. - The Moving Average Convergence Divergence (MACD) is at a negative 2.89, indicating bearish momentum, while the Relative Strength Index (RSI) is at 23.54, suggesting the stock is oversold [2]. European Market Challenges - The President of Exxon for Europe, Philippe Ducom, stated that Europe's competitiveness is "in a crisis," with the company focusing on regions with fewer regulatory challenges [4]. - Despite a global investment of $20 billion in clean energy initiatives by 2027, Exxon is not planning a significant pivot towards Europe, instead concentrating on projects in Texas [5]. Exploration and Future Prospects - Exxon continues its exploration in Guyana's Stabroek Block, particularly with the Haimara-3 well, which is assessing a gas discovery made in 2019 [6]. - The company is increasingly considering standalone gas development in Guyana, which could create new revenue streams by 2025 [6]. Overall Outlook - While the death cross indicates potential difficulties, it does not signify the end for ExxonMobil, as the company faces regulatory challenges in Europe and fluctuating oil prices [7]. - Investors are advised to monitor geopolitical developments and the company's clean energy initiatives in the U.S. for potential recovery signals [8].

Core Insights - Exxon Mobil Corporation (XOM) has outperformed the industry with an 8.2% gain over the past year compared to the industry's 1.6% growth, indicating a strong market position and promising long-term outlook supported by profitable projects and shareholder returns [1]. Group 1: Financial Performance and Strategy - ExxonMobil's acquisition of Pioneer Natural Resources on May 3 has significantly enhanced its upstream portfolio, with 1.4 million net acres in the Delaware and Midland basins and an estimated 16 billion barrels of oil equivalent resources [3]. - The company maintains a lower debt-to-capitalization ratio of 13.34% compared to the industry's 22.36%, reflecting a robust balance sheet and improved financial position due to favorable commodity prices [5]. - ExxonMobil plans to generate $165 billion in surplus cash flow from 2025 to 2030, which will support increased shareholder distributions, including dividends and share repurchases [23]. Group 2: Investment and Growth Plans - The company aims to invest $30 billion in low-carbon solutions from 2025 to 2030, focusing on carbon capture, storage networks, and hydrogen facilities, aligning with global energy transition goals [7]. - ExxonMobil plans to double production in the Permian Basin to 2.3 million barrels of oil equivalent per day by 2030, indicating a strong growth trajectory in its key operational areas [20]. - A total investment of $140 billion in major projects and Permian Basin development by 2030 is planned, although this could pose financial strain if energy prices do not meet expectations [25]. Group 3: Market Position and Valuation - The current valuation of ExxonMobil stands at 6.30x trailing 12-month Enterprise Value/EBITDA, which is a premium compared to the industry average of 3.93x, suggesting potential overvaluation [9]. - Wall Street's average price target for XOM indicates a potential upside of 22.5% from its recent closing price of $106.40, with the highest target reaching $147, representing a possible gain of 38.2% [26].

Core Insights - Exxon Mobil's shares experienced a decline in December, with intensified selling pressure following the Federal Reserve's indication of a slower pace of federal fund rate cuts in 2025 [1] Company Performance - Exxon Mobil is expanding its operations and has recently completed an acquisition, which may influence its future growth trajectory [1] Market Context - The broader market sentiment is affected by the Federal Reserve's monetary policy, which could impact energy sector stocks like Exxon Mobil [1]