Earnings Reports

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Ahead this week we have the three U.S. major oil companies reporting ExxonMobil $XOM, Chevron $CVX and ConocoPhillps $COP. With oil over $50 WTI and near $60 Brent positive news is expected. ConocoPhillips $COP will lead off reporting quarterly results Thursday. ExxonMobil $XOM will report Friday with Chevron $CVX. 


Oil Gas Sunset

Guidance on exploration and production spending will be key as oil prices have picked up recently, though U.S. drilling and production have tailed off and both Schlumberger $SLB and Baker Hughes, a GE Co $BHGE. reported differing metrics.


What to expect from ConocoPhillips Earnings

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, LNG, and natural gas liquids (NGLs) worldwide.

Analysts expect Conoco's EPS up to 6 cents with revenue lower to $6.3 billion (because of divestures)

Keep in mind production and sales numbers are diffuclt to foecast with the $COP divestures including the sale of the mining operations in Foster Creek Christina Lake oil sands and Western Canada’s Deep Basin gas assets. Conoco also closed the divesture deals of San Juan asset and Barnett asset in the third quarter of 2017.

Barclays raised its price target for ConocoPhillips $COP on October 10 to $55.00 from $51.00 while maintaining an Overweight rating, Analyst Paul Cheng noted a positive outlook on the U.S. Oil companies, both major integrated and independent refiners, as crude oil continues to maintain spot prices above $50, providing a catalyst for "some new legs" in the space. He sees Hurricane Harvey and Irma not having lasting effects.

Jefferies on October 18 rated  $COP a buy their price target was raised to $57 from $49. They noted Conoco’s portfolio includes resource-rich North American tight oil and oil sands assets; lower-risk legacy assets in North America, Europe, Asia and Australia; various international developments; and an inventory of conventional and unconventional exploration prospects. Many Wall Street analysts feel the company can accelerate growth from a reloaded portfolio depth in the Bakken and Eagle Ford, and with visibility on future growth from a sizable position in the Permian.

Last Quarter: ConocoPhillips $COP Beat Earnings and Revenue on Higher Prices


What to expect from ExxonMobil's Earnings

Exxon Mobil Corporation principal business is energ exploration and production of, crude oil and natural gas; manufacture of petroleum products; and transportation and sale of crude oil, natural gas, and petroleum products, $XOM.operates as a manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics; and various specialty products.

Analysts expect Exxon's EPS up 35% to 85 cents with revenue rising 9% to $63.97 billion.

Look for capex, cash and hurricane impact. Dividends are huge with oil majors, look at how General Electric $GE bounced from 8% down to be up 1.5% after a huge earnings washout Friday, Exxon's capex budget is $22 billion for 2017 they have spent $8.1 billion of that so far in 1H, updates on this are key with oil recovering so far this year. $XOM  had $7 billion in operating cash flow in Q2. From this $3.3 billion went in dividend payments. 

Permian updates are what we want. After the huge acerage buys at the start of the year Exxon announced last month another 22,000 net acres in the Permian Basin since May split between the Midland Basin and the Delaware Basin. Guyana is another region we want to hear updates on. LNG and natural gas updates along with its massive polyethylene production expansion in Mont Belvieu are all areas to watch in this intergrated major.

Last Quarter: Exxon Misses Earnings on Lower Production


What to expect from Chevron's Earnings

Chevron Corp. is a U.S.-based integrated oil and gas company with worldwide operations in exploration and production, refining and marketing, transportation and petrochemicals. It has large exposure to the Permian and to LNG with the recent Wheatstone Chevron LNG Facility production starting in Western Australia

Analysts expect EPS up 47% to $1 with revenue rising 11% to $33.41 billion

Jefferies on October 18 rated $CVX a buy their price target was raised to $137 from $120. They noted the Permian Basin remains a key source of capital flexibility, and it is a key issue behind their relative preference for Chevron versus some of the other majors. 

Last Quarter: Chevron $CVX Earnings Mixed, Revenue Rises on Record Permian Production


Sources: MarketWatch, TradersCommunity, XOM, CVX, COP

From The TradersCommunity Research Desk

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