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Worth notingAgendaXOMFri, Oct 30 Time to be announced1 min read
ExxonMobil produces oil and gas and turns crude into gasoline, diesel and other fuels, so price changes can affect its businesses differently. Oil recently moved with shifting supply fears, while Shell reported much stronger refining profits. This report tests whether refining is also cushioning pressure on production earnings and offers another check on the energy industry's cash generation. Quarterly results do not directly establish profitability at the latest oil price.[1]
Separate production earnings, refining profits and cash remaining after capital spending. Strong refining and ample cash could support earnings expectations for integrated energy companies and their suppliers. If refining gains fade while investment stays high, the balance between dividends, buybacks and new projects becomes more important. Higher fuel prices can help refiners while squeezing airlines and transport companies; cheaper crude can hurt producers while potentially easing fuel buyers' costs. Watch fuel supply and demand and investment plans rather than treating all energy stocks as the same business.[1]