Exxon Mobil Benefits from Countercyclical Investments Delivering Record Annual Profit

Energy giant ExxonMobil, the largest U.S. oil company, reported better than expected fourth-quarter earnings Tuesday but revenue fell short of estimates. Revenue rose to $95.429 billion from $84.965 billion a year ago, below the $97.345 billion FactSet consensus. XOM delivered its highest-ever annual profit in 2022 fueled by surging oil prices to resurrect it as one of America’s most profitable companies and erase billions of dollars of losses incurred during the pandemic. Exxon reaped the benefits of its countercyclical investments … Continue reading “Exxon Mobil Benefits from Countercyclical Investments Delivering Record Annual Profit”

Commodity Traders Weekly Outlook: Lumber Rebound and Natural Gas Slide Continues

Trends continued to play out this week, partially short squeeze induced, partly resurgent speculation with a significant loosening of financial conditions continues to feed the reversal in risk. The VIX fell another 3% Friday to the lowest since last January. One commodity not benefiting is natural gas futures, down another 7% or 10% depending on what month you are unfortunate to be long in. Notably the rest of the energy complex was down this week also. Copper had been a … Continue reading “Commodity Traders Weekly Outlook: Lumber Rebound and Natural Gas Slide Continues”

Around The Barrel – Crude Oil and Gasoline Outlook for The Week Ahead

US crude oil inventories have been building rather stoically in 2023, specifically at the Cushing WTI futures Hub. The EIA said there was a build +4.267Mbbls this week, following +3.646Mbbls and +2.511Mbbls the prior weeks. Gasoline also had another sizeable build of +1.763Mbbls following +3.483Mbbls and +4.114Mbbls the prior weeks. For crude EIA reported a build of +533Kbbls much lower than the +8.408Mbbls and +18.161Mbbls the weeks prior. Higher futures prices suggest traders appear to be ignoring large US builds … Continue reading “Around The Barrel – Crude Oil and Gasoline Outlook for The Week Ahead”

Chevron Q4 Earnings Lower Than Expected with Higher CapEx and Lower Volumes

Chevron, the second-largest U.S. oil company after Exxon, on Friday reported Q4 adjusted earnings that missed expectations, while revenues topped forecasts. CVX Q4 net income rose to $6.35B, or $3.33/share, from $5.05B, or $2.63/share, in the year-ago period, but fell from $11.2B in Q3, as $1.1B in write-downs in international oil and gas operations left adjusted earnings short of forecasts. For the full year, Chevron said earnings totaled $35.5B for its highest-ever annual profit, more than double the prior year … Continue reading “Chevron Q4 Earnings Lower Than Expected with Higher CapEx and Lower Volumes”

EIA Reports WTI Cushing Crude Oil Storage Hub Filling Up Rapidly, +11Mbbls in 3 Weeks.

US crude oil inventories have been building rather stoically in 2023, specifically at the Cushing WTI futures Hub. There was a build +4.267Mbbls this week, following +3.646Mbbls and +2.511Mbbls the prior weeks. Gasoline also had another sizeable build of +1.763Mbbls following +3.483Mbbls and +4.114Mbbls the prior weeks. For crude EIA reported a build of +533Kbbls much lower than the +8.408Mbbls and +18.161Mbbls the weeks prior. Higher futures prices suggest traders appear to be ignoring large US builds and have chosen … Continue reading “EIA Reports WTI Cushing Crude Oil Storage Hub Filling Up Rapidly, +11Mbbls in 3 Weeks.”

Halliburton Earnings Beat with Free Cash Flow Up 79% in a Year

Houston-based oil and gas servicing giant Halliburton reported better than expected fourth quarter earnings Tuesday before the market. HAL posted adjusted income of $656 million, or 72 cents per share, for the quarter compared with a 67 cent EPS consensus. It wasn’t long ago oil services companies were debt laden and loss making, free cash flow was up 79% y/y in Q4 2022. HAL followed up a mixed start to earnings season for the world’s top oilfield services providers with … Continue reading “Halliburton Earnings Beat with Free Cash Flow Up 79% in a Year”

Texas Oil and Natural Gas Industry Paid a Record $24.7 Billion in Taxes and Royalties in 2022

The surge in oil and natural gas prices was a boon for the state of Texas in 2022. The Texan oil and natural gas industry paid a record $24.7 billion in taxes and royalties last year, crushing the previous annual high of $16 billion set in 2019 by 54%, according to the Texas Oil and Gas Association. The money goes toward funding a range of public interests such as education through public schools and universities, roads, first responders and other … Continue reading “Texas Oil and Natural Gas Industry Paid a Record $24.7 Billion in Taxes and Royalties in 2022”

Oil Service Giant Baker Hughes Received Record Orders of $8.0 Billion in Fourth Quarter

Energy services company Baker Hughes reported weaker than expected fourth quarter earnings on Monday before the market open. However, $BKR said it had record orders of $8.0 billion for the fourth quarter. Baker Hughes reported fourth-quarter net income of $182 million, or 18 cents a share. On an adjusted basis, BKR earned 38 cents a share, up from 25 cents a share a year before. Last quarter the company reported a loss of $17 million for the second-straight quarterly loss … Continue reading “Oil Service Giant Baker Hughes Received Record Orders of $8.0 Billion in Fourth Quarter”

Commodity Traders Weekly Outlook: Heating Oil Soars, Natural Gas Falls (Reprise)

This week we saw a complete reversal in risk, from the VIX melting a softer US CPI report last week it was the top performer this week as indices floundered, though correcting much of that Friday with options expiration. Like a scratched record, natural gas futures were down again, losing another 8.34% while it’s energy brethren Gasoline, WTI, Brent Oil and Heating oil were all higher. Copper and gold continued higher but at a lesser pace. Copper had been a … Continue reading “Commodity Traders Weekly Outlook: Heating Oil Soars, Natural Gas Falls (Reprise)”

Oil Field Services Giant SLB Earnings Beat Expectations, Raises Dividend

The world’s largest oil fields service company SLB (formerly known as Schlumberger) reported better than expected fourth quarter earnings Friday before the market opened. SLB increased its quarterly dividend by 43%, raised it to 25.0 cents a share from 17.5 cents a share. Higher demand for its services and equipment, as producers capitalize on the global energy crisis and higher crude and natural gas production. Growth was driven by its core divisions. The oil service giant’s peers Baker Hughes (BKR) … Continue reading “Oil Field Services Giant SLB Earnings Beat Expectations, Raises Dividend”