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Oil giant ExxonMobil missed fourth quarter earnings Friday as production and Oil-equivalent production fell whilst CapEx costs soared 86% sending $XOM shares lower by 5% at market open.

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Exxon Mobil Corp NYSE: $XOM

Premarket $84.40 â–¼ $4.72 (-5.30%)

Earnings

EPS of 88 cents lower than $1.07 expected with revenue of $66.5 billion lower than expected revenue of $74.44 billion excluding effects of tax cuts and other items.

Fourth Quarter Highlights

  • Total production fell 3% to 3.99 million barrels of oil equivalent per day.
  • Capital and exploration spending jumped 86% to $9 billion.
  • $XOM signed a petroleum agreement with the government of Ghana to acquire exploration and production rights for the Deepwater Cape Three Points block offshore Ghana. Exxon will begin exploration activities later this year.

Upstream

Adjusted losses from U.S. upstream operations narrowed to $60 million from $193 million a year ago, and non-U.S. upstream earnings jumped 53% to $2.58 billion.

Downstream

U.S. downstream operations grew earnings 13% to $306 million, while non-U.S. operations saw a 33% drop to $646 million.

Chemical

U.S. chemical earnings climbed 25.6% to $442 million, while non-U.S. chemical earnings fell 5% to $493 million.

Last Quarter Earnings: Exxon Misses Earnings on Lower Production

TradersCommunity Preview: Big Oil Earnings on Tap With Exxon, Chevron and Conoco

ExxonMobil Huge Liza Field Acerage in Guyana

$XOM made a final investment decision during 2Q17 to proceed with the Liza field development located offshore Guyana, where production is expected to start in 2020. The company expects Liza to add up to 120,000 barrels of oil per day to $XOM's production.

Liza HESS EXXON

Treasury Department Dispute

Analysts have been cold on $XOM since April when it legally challenged the Treasury Department’s Office of Foreign Assets Control that states the company violated U.S. sanctions against Russia in 2014. The dispute is based on the interactions $XOM had with Rosneft, Russian oil company.

Source: ExxonMobil, Alpha Street

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