ExxonMobil (NYSE:XOM) Shares Up 2.5% - Here's Why

Key Points

• ExxonMobil shares rose 2.5% to about $169.28 in mid-day trading, outperforming its previous close amid positive developments in its LNG business and Pioneer integration.
• ExxonMobil’s Pioneer subsidiary received approximately $1.19 billion in tenders for senior notes, while management projects U.S. LNG could account for roughly 30% of global supply by 2030.
• Near-term risks include a power outage at the 264,000-barrel-per-day Joliet refinery and more than 54,000 pounds of unauthorized emissions from the Baytown refinery. Analysts maintain a consensus “Hold” rating with an average price target of $167.45.

Shares of ExxonMobil Corporation (NYSE:XOM - Get Free Report) traded up 2.5% during mid-day trading on Tuesday . The company traded as high as $169.64 and last traded at $169.2780. Approximately 12,302,318 shares changed hands during mid-day trading, a decline of 34% from the average session volume of 18,617,670 shares. The stock had previously closed at $165.08.

Trending Headlines about ExxonMobil

Here are the key news stories impacting ExxonMobil this week:

• Positive Sentiment: ExxonMobil’s wholly owned Pioneer Natural Resources subsidiary received approximately $1.19 billion in tenders for Pioneer’s 2030 and 2031 senior notes—$570.36 million and $615.60 million, respectively. The cash offers support integration of Pioneer’s debt and simplify the combined company’s capital structure, although they also require a sizable cash outlay. ExxonMobil announces pricing terms, expiration and results of cash tender offers
• Positive Sentiment: An ExxonMobil executive said U.S. LNG production could represent roughly 30% of global LNG supply by 2030, reinforcing the company’s long-term growth outlook in natural gas and LNG. Management also characterized LNG fundamentals as healthy despite current disruptions to flows. ExxonMobil executive sees U.S. accounting for 30% of global LNG market by 2030
• Positive Sentiment: Engineering firm Wood secured a five-year, $200 million contract supporting ExxonMobil’s PNG LNG project, indicating continued investment in brownfield infrastructure and future production capacity. Wood secures $200 million contract from ExxonMobil for PNG LNG project
• Neutral Sentiment: U.S. refiners are benefiting from unusually strong fuel margins, which may help ExxonMobil’s downstream business. However, the company’s exposure to refining is less concentrated than that of pure-play refiners such as Valero and Marathon Petroleum.
• Negative Sentiment: A power outage shut or disrupted ExxonMobil’s 264,000-barrel-per-day Joliet, Illinois, refinery. The outage could reduce near-term throughput and earnings, though tighter fuel supplies may partly support refining margins. ExxonMobil’s Joliet refinery reports upset due to power outage
• Negative Sentiment: ExxonMobil reported more than 54,000 pounds of unauthorized air pollution from its Baytown refinery, creating potential regulatory, remediation and reputational costs. ExxonMobil releases unauthorized air pollution at Baytown refinery

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on XOM shares. Mizuho decreased their target price on ExxonMobil from $175.00 to $170.00 and set a "neutral" rating on the stock in a report on Thursday, July 9th. HSBC set a $158.00 price target on shares of ExxonMobil in a research note on Monday, August 3rd. Bank of America lowered shares of ExxonMobil from a "buy" rating to a "neutral" rating and raised their target price for the company from $154.00 to $158.00 in a report on Tuesday, July 28th. DZ Bank downgraded ExxonMobil from a "buy" rating to a "hold" rating and set a $156.00 price objective on the stock. in a research report on Tuesday, August 4th. Finally, Wall Street Zen upgraded shares of ExxonMobil to a "hold" rating in a report on Saturday, September 5th. Ten investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, ExxonMobil currently has a consensus rating of "Hold" and an average price target of $167.45.

ExxonMobil Stock Performance

The firm has a market capitalization of $701.65 billion, a price-to-earnings ratio of 21.79, a PEG ratio of 1.02 and a beta of 0.18. The firm's 50 day simple moving average is $156.21 and its 200 day simple moving average is $152.89. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.85 and a current ratio of 1.13.

ExxonMobil (NYSE:XOM - Get Free Report) last posted its quarterly earnings results on Friday, July 31st. The oil and gas company reported $3.52 EPS for the quarter, missing the consensus estimate of $3.56 by ($0.04). The business had revenue of $114.53 billion during the quarter, compared to analysts' expectations of $109.94 billion. ExxonMobil had a net margin of 8.88% and a return on equity of 13.14%. During the same period in the previous year, the company posted $1.64 earnings per share. Sell-side analysts forecast that ExxonMobil Corporation will post 11.93 earnings per share for the current fiscal year.

ExxonMobil Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Monday, August 17th were issued a $1.03 dividend. The ex-dividend date of this dividend was Monday, August 17th. This represents a $4.12 dividend on an annualized basis and a yield of 2.4%. ExxonMobil's dividend payout ratio is presently 53.02%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Norges Bank acquired a new stake in shares of ExxonMobil during the fourth quarter valued at approximately $7,625,063,000. Bank of New York Mellon Corp increased its position in ExxonMobil by 1.2% in the 4th quarter. Bank of New York Mellon Corp now owns 46,605,353 shares of the oil and gas company's stock worth $5,608,488,000 after purchasing an additional 531,362 shares during the last quarter. Fisher Asset Management LLC raised its position in ExxonMobil by 1.0% during the fourth quarter. Fisher Asset Management LLC now owns 31,497,852 shares of the oil and gas company's stock valued at $3,790,452,000 after acquiring an additional 303,359 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of ExxonMobil by 5.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 28,364,314 shares of the oil and gas company's stock valued at $4,812,790,000 after purchasing an additional 1,540,902 shares during the last quarter. Finally, Amundi boosted its stake in shares of ExxonMobil by 5.1% during the 1st quarter. Amundi now owns 24,511,156 shares of the oil and gas company's stock worth $4,158,563,000 after acquiring an additional 1,192,386 shares in the last quarter. 61.80% of the stock is owned by institutional investors and hedge funds.

ExxonMobil Company Profile

Exxon Mobil Corporation, doing business as ExxonMobil, is an integrated energy company engaged in the exploration, development, production and marketing of crude oil and natural gas. Its upstream operations support oil and natural gas production in multiple regions worldwide, while its downstream businesses refine crude oil into fuels and other petroleum products for commercial, industrial and consumer markets.

Through its product solutions businesses, ExxonMobil manufactures and markets lubricants, specialty fluids, petroleum-derived products and chemical products, including commodity and performance chemicals used in packaging, automotive components, construction materials and other industrial applications.

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