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Misses come from steady market not giving the benefit of the horizontal hedging. Shale not turned on but can see the wisdom in buying those assets with Chevrons result.
[quote=”TradersCom” post=381]Misses come from steady market not giving the benefit of the horizontal hedging. Shale not turned on but can see the wisdom in buying those assets with Chevrons result.[/quote]
Yes when that starts producing agreed – even more so when some of the struggling medium producers are pulling back. Politically inevitable they are a target with Tillerson now SoS unfortunately.
Exxon production was lower by 1% but the higher realized prices helped there, going forward expect better margined projects contributing.
Free cash flow is key in the majors and $XOM generated free cash flow to cover both capital spending and the dividend. Through H116, Exxon generated $15.2 billion in operating cash flow, funding its $7.5 billion capital expenditure and $6.4 billion in shareholder distributions.
Capital spending is running below full-year guidance (much ado with weak demand and pricing so a prudent thing). Usually this is back-end-loaded with their two big acquisitions yet to be completed.
At this point still expect Exxon to fund and cover its dividend with ease. Significantly its break-even level is under $40/barrel, the lowest of the majors.
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