So the world is going electric? Would it happen without massive government subsidies and incentives? Not so fast. Tesla exists because of government subsidies and incentives - the only reason it reports "profits" is by selling its emissions credits. The only way they have stayed in business is by issuing billions worth of stock each time Musk manipulated it higher. NIO was on the verge of bankruptcy and was saved by a large cash injection. Better Place - an Israeli electric vehicle startup that covered Israel with battery replacement stations - went bankrupt. Nissan Leaf saw its sales decline by about 80% once state tax breaks were removed. Electric vehicle sales by other manufacturers barely move the scale. The fact is that there is no demand for electric vehicles except for the top 1% hipsters, as they are viewed by most people as expensive cars with a major drawback that makes them impractical except for in city use.
S
In the year 2050 gasoline engines will be banned. But since electronic c batteries cause as much polution to the environment, people will be required to own and receive tax credits using a bicycle or a horse and carriage. Retirees on cruise ships will be required to take shifts paddling subs theose ships will have no engine. Passenger planes will be powered by Tesla’s batteries as an exception but taxes on flights will make it prohibitively expensive. Hot air balloons will be the transportation of choice for long distance travel.
This way we will save our precious planet and undo the evils of technology and the modern world. Kids will learn in school about Ted Kazynsky as the visionary who tried to saved the planet but was locked up by the FBI.
S
At some point, stocks reach a point of peak pessimism. Once everything that can go wrong has gone wrong, things tend to improve. And for Exxon, we’re at that point, or at least very near it. Oil has been in a crushing bear market since 2014. Exxon Mobil got kicked out of the Dow Jones Industrials Average after decades of membership. The media has already written the obituary for Big Oil, as green energy technology and socially conscious investors seem set to kick crude to the curb. And analysts assume that XOM stock’s dividend will be cut. What else is left to go wrong?
M
I'm a buyer here, historically speaking it's a great PE value. blood in the streets and fossil fuels not going anywhere for years.
J
Screaming buy here massive pessimism even by myself who capitulated means buy. Evs and batteries aint gonna replace heating oil and millions of other things. World cannot run on lithium or any other metals in batteries i initiate massive overweight here. Double bottom at pandemic lows as well
S
Exxon is an energy company. 38% of electricity in US is created by natural gas. Exxon is largest producer of natural gas in US.
S
While its European peers are more bearish on oil demand recovery and are diversifying away from oil and gas, XOM believes demand will not only recover but continue to grow to satisfy higher energy needs of developing countries. XOM tracks a lot of economic data and trends, and has not seen anything until now which changes their view of long term-demand fundamentals of Oil and Gas business.
B
Does anyone know Blackrock's opinion on the transition XOM is making? (!) The reason XOM, Shell, BP and other big oil companies are dropping is because big funds are pulling money out of companies that cause polution.
J
In Phase 3 Trails of a vaccine with 5 Drug Companies Combined having over 350 people in trails now. The forward looking news for markets and energy is closer then it was in March of 2020. Thus, major reason energy stocks are a buy here. This pricing will not last to much longer.
E
When you look at the fossil fuel debate, it's important to realize that the USA is only about 12% to 15 % of the worlds climate change issue. If the US completely eliminated fossil fuels it would make little to no impact on the world stage. India and China will continue to grow and pollute. 30% plus of the world still uses wood and dung for fire material to cook. The trillions of dollars the democrats want to spend on climate change is a waste. The best thing XOM and the other oil companies could do is institute a $.50 cpg. recovery fee now, to start recovering their $15 trillion dollar investment in energy. Unlike the airlines no one will bail our industry out.
B
Maybe XOM should use the free cashflow to create a EV company, and only draw a sketch. Then you'll see XOM increase by 400%-500%. And then the CEO needs to dig a tunnel to Mexico and escape.
S
Morningstar’s analyst Allen Good laid out the bull case on XOM stock clearly. Assuming a 10x enterprise value/EBITDA ratio — fully in-line with normal levels for industrials or materials stocks — you get a fair value of $74 per share for Exxon.
On dividends: "Dividend preservation remains the top priority as XOM is committed to keep paying dividend through the current commodity down cycle. XOM is willing to pull multiple levers to ensure dividend safety without adding materially to its gross debt. XOM expects 2020 capex at $23Bn vs. original guidance of $33B."
Credit Suisse updates on Exxon Mobil (XOM -1.0%) after meeting with management. On dividends: "Dividend preservation remains the top priority as XOM is committed to keep paying dividend through the current commodity down cycle.
Credit Suisse updates on Exxon Mobil (XOM -1.0%) after meeting with management. On dividends: "Dividend preservation remains the top priority as XOM is committed to keep paying dividend through the current commodity down cycle.
seekingalpha.com
w
This is the latest news from XOM..On dividends: "Dividend preservation remains the top priority as XOM is committed to keep paying dividend through the current commodity down cycle. XOM is willing to pull multiple levers to ensure dividend safety without adding materially to its gross debt. XOM expects 2020 capex at $23Bn vs. original guidance of $33B.
B
For people who wants to hold this stock for 20 years, this might be interesting (2040): - Global energy demand will rise by 20% - Oil and natural gas make up about 55 percent of global energy use today. By 2040, 10 of the 13 assessed 2oC scenarios project that oil and gas will continue to supply more than 50 percent of global energy. Investment in oil and natural gas is required to replace natural decline from existing production and to meet future demand under all assessed 2oC scenarios.
B
In Q2 2020 XOM realised the following averages: Crude: 21.79 USD ($/b) and Natural Gas 1.57 ($/kcf) Q3 2020 (july/august/september) should be around 40 USD/b oil and Natural Gas maybe 2.00 ($/kfc) Q2 2020 had a net loss of 610 m compared to 5.690m profit the quarter prior. My assumption is that XOM was profitable this quarter. They said they will cut on investments, so in the current quarter I don't see issues with the continuation. If Q4 2020 is more turbulent that could be a danger.
M
If you drop $10,000 here in to Exxon and just take the dividends and reinvest them - not the price appreciation. In 20 years, it will be almost $200,000. Quietly, you'll be set for retirement with really very little downside risk.
Plus, you'll have the price appreciation.
G
XOM already made Cap EX cuts that would free up 9 Billion for the dividends. Now they announced another 10B CapEX cut. So that's 19 Billion, MORE than covering a year of dividends.
Poor Jefferson and Company. So much wasted time bashing only to come up with NOTHING.
Merry Christmas to all us XOM holders. Full dividend coming December 10 !!
P
I hope we finally found the bottom. I'm running out of funds to invest. Every 50 cents, I buy another 10 shares. I started at $47. I'm losing a lot of money.
r
Brilliant analysts touts shopify that has almost the market cap of exxon ....xom has about 170 billion in tangible assets and shopify hardly has anay profit and 3 billion in sales
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This way we will save our precious planet and undo the evils of technology and the modern world. Kids will learn in school about Ted Kazynsky as the visionary who tried to saved the planet but was locked up by the FBI.
(!) The reason XOM, Shell, BP and other big oil companies are dropping is because big funds are pulling money out of companies that cause polution.
https://seekingalpha.com/news/3617060-exxon-mobil-expects-emerging-markets-to-stoke-demand
On dividends: "Dividend preservation remains the top priority as XOM is committed to keep paying dividend through the current commodity down cycle. XOM is willing to pull multiple levers to ensure dividend safety without adding materially to its gross debt. XOM expects 2020 capex at $23Bn vs. original guidance of $33B."
- Global energy demand will rise by 20%
- Oil and natural gas make up about 55 percent of global energy use today. By 2040, 10 of the 13 assessed 2oC scenarios project that oil and gas will continue to supply more than 50 percent of global energy. Investment in oil and natural gas is required to replace natural decline from existing production and to meet future demand under all assessed 2oC scenarios.
Q3 2020 (july/august/september) should be around 40 USD/b oil and Natural Gas maybe 2.00 ($/kfc)
Q2 2020 had a net loss of 610 m compared to 5.690m profit the quarter prior. My assumption is that XOM was profitable this quarter. They said they will cut on investments, so in the current quarter I don't see issues with the continuation. If Q4 2020 is more turbulent that could be a danger.
Plus, you'll have the price appreciation.
Poor Jefferson and Company. So much wasted time bashing only to come up with NOTHING.
Merry Christmas to all us XOM holders. Full dividend coming December 10 !!