ExxonMobil’s stock performance
In the previous part, we discussed ExxonMobil’s (XOM) third-quarter segmental earnings. In this part, we’ll discuss ExxonMobil’s stock performance. ExxonMobil announced its earnings on November 2.
ExxonMobil stock opened at $81.8 per share on November 2—higher than the previous close of $80.7. The rise could be because ExxonMobil’s third-quarter earnings beat Wall Street analysts’ expectation. ExxonMobil stock saw a high of $82.5 and a low of $80.2 during the day. Eventually, the stock closed at $81.9, which was ~1.6% higher than the previous day’s close. ExxonMobil stock rose despite the decline in oil prices and the markets on November 2. ExxonMobil’s peers fell on November 2.
On the day, the WTI crude oil prices fell 0.9%. The SPDR S&P 500 ETF (SPY), the broader market indicator, fell 0.6% on November 2. Royal Dutch Shell (RDS.A), BP (BP), and Total (TOT) decreased 1.4%, 2.5%, and 0.9%, respectively, on November 2.
ExxonMobil’s third-quarter update
Although ExxonMobil’s earnings beat analysts’ estimates, the company continued its growth and maintenance spending. In the third quarter, ExxonMobil incurred a capex of $6.58 billion—compared to $5.98 billion in the third quarter of 2017. Of the third-quarter capex, $5.33 billion was incurred towards the Upstream segment. In the third quarter, $0.72 billion and $0.53 billion of the capex was incurred towards the Downstream and Chemical segments, respectively.
In the third quarter, ExxonMobil’s Permian Basin production rose 17% sequentially. The company continued to increase its production in the Midland and Delaware basins. Currently, 38 rigs are deployed in the region.
ExxonMobil progressed well on its long-term growth portfolios in Guyana and Brazil. ExxonMobil had it ninth discovery offshore Guyana in the promising Stabroek Block. In the Hammerhead-1 well, ExxonMobil encountered 60 meters of oil-bearing sandstone reservoir. In Brazil, the company won the Titã exploration block, which strengthened its footprint in the region.
Next, we’ll discuss analysts’ ratings for ExxonMobil after its third-quarter earnings.