Houston Chronicle

Exxon Mobil’s fourth-quarter profit declined by 5 percent, capping a year in which earnings plunged by more than 30 percent.

Exxon Mobil's profit tumbled 30% in 2019, 5% in final quarter-oil and gas 360

Source: Houston Chronicle

The company’s $5.7 billion profit in the fourth quarter lagged the previous year on weaker sales and pricing in its petrochemical and refining divisions.

For the year, Exxon earned $14.3 billion, down from $20.8 billion in 2018, despite the sale of its Norwegian North Sea assets and the beginning of oil production in the waters off Guyana in December.

The company’s bottom line in 2019 showed the effects of pumping billions of dollars into oil-production from Guyana’s coastal waters and West Texas’ Permian Basin, where Exxon is the most active driller. Exxon’s capital spending jumped more than 20 percent to $31 billion last year from nearly $26 billion in 2018.

Despite short-term declines in refining and chemicals profit margins, Exxon Chief Executive Darren Woods said the company had a positive quarter overall. Exxon last month had warned that weakness in those segments would drag down its profits.
“Growth in demand for the products that underpin our businesses remains strong,” Woods said. “We remain focused on improving our base businesses, driving efficiencies, and optimizing the value of our investment portfolio.”

Exxon Mobil’s oil and gas production remained essentially flat in the fourth quarter. A nearly 5 percent dip in natural gas production was offset by a 4 percent jump in crude oil volumes, driven by growth in the Permian.

One other factor for weaker refining profits was additional downtime at Exxon’s refining and petrochemical complex in Beaumont, which is undergoing a major expansion.

Despite Exxon Mobil’s growth, the company has been punished on Wall Street with its stock near its lowest value since 2010 as the nation’s largest energy company deals with weaker oil and gas and petrochemical prices, increased spending and a souring investment sentiment on the broader energy sector.

Last year, Exxon fell out of the S&P 500 stock index’s list of 10 largest companies for the first time.

The company still has a market value of about $275 billion. Rivals Chevron and Royal Dutch Shell still lag behind with values of more than $210 billion.


Recent Company Earnings:

February 12, 2021

More than $185 million in Free Cash Flow 1 Expected in 2021 Noble…

January 22, 2021


Schlumberger NV on Friday joined rivals in predicting a steady recovery in the oil industry this year after the world’s top oilfield services provider’s fourth-quarter results beat estimates, aided partly by growing demand for drilling.

Schlumberger echoes rivals' oil recovery predictions after results beat- oil and gas 360

Source: Reuters

Easing of COVID-19 related restrictions has propelled oil demand and prices, which remain stable since a late-2020 rebound from historic lows. Brent crude, which averaged at $45 per barrel in the last quarter of 2020, hovered around $55 on Friday.

Schlumberger Chief Executive Officer Olivier Le Peuch said he was optimistic about demand recovery through this year, as rivals Halliburton Co and Baker Hughes Co have noted, giving investors hope the oil downturn was nearing an end.

However, Le Peuch’s timeline for a full recovery to 2019 level no later than 2023 was behind Halliburton’s view of a rebalancing next year. Baker Hughes also sees strong investment growth in 2022.

Still, Le Peuch said the reset could happen sooner, as some analysts have noted in recent weeks, with international recovery accelerating from second quarter this year and North America activity continuing to build upwards after a strong start to the year.

“Our hypothesis going forward is that the market supply share will rebalance slightly, will favor international and will, as a consequence, pull international activity to 100% or more in the next 2 or 3 years,” he told analysts on a post earnings call.

Schlumberger’s shares were down 1.4% at $24.86in early trading, outperforming rivals and other energy stocks that fell more on latest COVID-19 related restrictions in China. [O/R]

Total revenue of $5.53 billion in the fourth quarter beat analysts’ estimates of $5.25 billion. It’s the first quarter-over-quarter increase in revenue for Schlumberger since the third quarter of 2019.

Since taking over in July 2019, Le Peuch has focused on reshaping Schlumberger through thousands of job cuts, other steep cost cuts and divesting unprofitable businesses, actions that have been received well by Wall Street.

“Schlumberger ripped the cover off the ball with these results,” Tudor, Pickering, Holt and Co analysts wrote in a note on Friday, saying the strong performance wasn’t a big surprise due to the yeoman’s work around cost cuts and improving margins and incremental fee cash flow.

Aided by cost cuts, Schlumberger’s net income excluding charges and credits came in at 22 cents per share in the quarter ended Dec. 31, which also beat estimates of 17 cents, according to Refinitiv IBES data.

In light of the anticipated demand recovery, Schlumberger forecast capital investments this year of between $1.5 billion and $1.7 billion, a slight improvement at the midpoint of the range from last year’s $1.5 billion.

January 21, 2021


Oilfield equipment and services provider Baker Hughes Co on Thursday joined larger rival Halliburton Co in saying the energy industry’s worst downturn in decades would turn a corner this year.

Baker Hughes says energy downturn to bottom out this year- oil and gas 360

Source: Reuters

Oil and gas producers have been forced to cut budgets, restructure operations and reduce employees, to tackle the COVID-19 pandemic-led fallout in energy demand and prices.

“We expect spending and activity levels to gain momentum through the year as the macro environment improves, likely setting up the industry for stronger growth in 2022,” Baker Hughes Chief Executive Officer Lorenzo Simonelli said.

Halliburton on Tuesday predicted a recovery in the global oil and gas industry from the second quarter of this year.

Demand for oilfield equipment and services recovered in the last three months of 2020, with producers completing more wells and drilling some, as crude prices averaged around $45 a barrel in the quarter. Global crude prices hovered around $56 per barrel on Thursday.

Baker Hughes’ adjusted operating profit nearly doubled to $462 million in the fourth quarter ended Dec. 31, compared with the third.

The company has cut its budget, restructured operations, reduced the number of employees, closed facilities and accelerated the exit of non-core products to save cash and cushion the blow from the fallout in demand due to the pandemic.

Total revenue for the reported quarter rose nearly 9% to $5.5 billion, compared with the third, and also beat estimates of $5.42 billion, according to Refinitiv IBES data.

The total revenue was down 13.4% and adjusted operating profit 15.4% lower from a year earlier, as drilling activity was well below last year’s levels.

Halliburton also posted a better-than-expected profit on Tuesday, while top oilfield service provider Schlumberger NV is expected to report results on Friday.

Baker Hughes’s shares were up 3.7% at $23.75 in premarket trading.

November 13, 2020


MOSCOW – Fallout from the pandemic and a weaker rouble sent Russian energy giant Rosneft ROSN.MM to a third-quarter net loss of 64 billion roubles ($827 million) from net income of 43 billion roubles in the previous quarter, the company said on Friday.

Rosneft swings to third-quarter net loss, buyback extension supports shares- oil and gas 360

Source: Reuters

However, plans to extend a share buyback programme until the end of 2021, announced later during a conference call with investors, helped its shares reverse earlier losses.

Rosneft, the world’s second-largest oil producer by output behind Saudi Aramco 2222.SE, was forced to reduce oil production in line with the OPEC+ supply pact aimed at stabilising global markets.

The company’s oil and gas condensate output for the July to September period was down 3.2% from the previous quarter at 3.91 million barrels per day.

It also had to contend with the coronavirus crisis. Its headquarters was placed on a 30-hour working week and pandemic-related costs for the first nine months of the year amounted to 5 billion roubles ($65 million).

Rosneft’s shares were 0.2% higher by 1350 GMT.

The company proposed a $2 billion share buyback in May 2018 to reduce debt and boost investor returns. It eventually started making open market repurchases in March 2020, and had initially planned to complete the programme by year-end.

The company’s earnings before interest, tax, depreciation and amortisation in the third quarter more than doubled from the previous three months to 366 billion roubles.

Run by one of President Vladimir Putin’s closest allies, Igor Sechin, Rosneft had long opposed output production cuts in tandem with OPEC but has been overruled by the president, who is keen to deepen political cooperation with the Middle East.

The company, in which BP BP.L owns a 19.75% stake, said it still planned capital expenditure of 1 trillion roubles in 2021, but the eventual amount depends on how the OPEC+ deal evolves.

The company has had to buy oil from third parties to meet its obligations amid the production curbs.

Rosneft said it bought 27.4 million barrels on global markets in the third quarter, up 35% from the second quarter.

November 6, 2020


Cheniere Energy Inc LNG.A reported earnings on Friday that missed analysts estimates and said it expects to complete the third train at its Corpus Christi liquefied natural gas (LNG) export plant in Texas in the first quarter of 2021.

Cheniere earnings miss estimates, sees Texas Corpus 3 complete in first-quarter 2021- oil and gas 360

Source: Reuters

Previously, Cheniere, the biggest U.S. LNG company, said it expected to complete Corpus 3 in the first half of 2021.

In what has been a tough year for the LNG industry due to coronavirus demand destruction, Cheniere said its earnings per share were minus $1.84 in the third quarter.

That fell short of the minus 33 cents analysts estimated and compared with minus $1.25 in the third quarter last year.

Cheniere said that revenue was $1.46 billion in the quarter, which fell short of the $1.96 billion analysts estimated and compared with $2.17 billion in the same quarter last year.

Cheniere also said it still plans the “substantial completion” of the sixth train at its Sabine Pass LNG export plant in Louisiana in the second half of 2022.

Cheniere said Corpus 3 was 96.7% complete and Sabine 6 was 70.9% complete. Each train will be capable of producing about 5 million tonnes per annum (MTPA) of LNG, equivalent to around 0.66 billion cubic feet per day (bcfd) of natural gas.

As of Sept. 30, Cheniere said it has spent about $1.8 billion of the roughly $2.5 billion contract price to build Sabine 6 and about $2.3 billion of the roughly $2.4 billion contract price to build Corpus 3.

Bechtel Corp, which has a history of building liquefaction trains for Cheniere under budget and ahead of schedule, is also working on the new trains.

In addition, Cheniere said the final investment decision (FID) for the Corpus Stage 3 expansion will be subject to entering a construction contract, obtaining additional commercial support and securing financing.

July 22, 2020

Schedules Second Quarter 2020 Earnings Release Date and Conference Call Montage Resour…

May 11, 2020

HOUSTONMay 11, 2020 /PRNewswire/ — Callon Petroleum Company (NYSE: CPE) (“Callon” or the “Company”) today reported results of operations for the three months ended March 31, 2020.

Presentation slides accompanying this earnings release are available on the Company’s website at www.callon.com located on the “Presentations” page within the Investors section of the site.

May 4, 2020

Power Solutions International Announces Fourth Quarter and Full Year 2019 Financial Results and the Filing of its Form 10-K

April 28, 2020


Energy giant BP reported a significant fall in first-quarter net profit on Tuesday, as oil prices continue to dive amid intensifying concerns about the coronavirus crisis and dwindling storage capacity.

BP’s net profit slides 67% in the first quarter following a historic fall in oil prices- oil and gas 360

Source: CNBC

The U.K.-based oil and gas company posted first-quarter underlying replacement cost profit, used as a proxy for net profit, of $800 million. That compared with $2.4 billion in the first quarter of 2019, reflecting a fall of 67%.

Analysts had expected first-quarter underlying replacement cost profit to come in at $987 million, according to data compiled by Refinitiv.

“A good quarter but, undoubtedly, a very brutal environment,” BP CEO Bernard Looney told CNBC’s “Squawk Box Europe” on Tuesday.

BP’s results come shortly after a historic plunge in oil prices. The May contract of U.S. West Texas Intermediate plunged below zero to trade in negative territory for the first time in history last week. Trading volume was thin given it was the day before the contract’s expiration date, but the move lower was unprecedented nonetheless.

WTI futures had fetched more than $60 a barrel at the start of the year. A dramatic fall-off in demand as a result of the coronavirus outbreak has sent oil prices tumbling.

On Tuesday, the June contract of WTI traded at $11.36 per barrel, more than 11% lower for the session, while international benchmark stood at $20.22, up around 1%.

“The real situation that we have here is a fundamental situation of supply and demand,” Looney said. “Demand in the second quarter, we think, will be down around 16 million barrels per day worldwide this year. And that’s about five times the previous demand destruction which we saw in the global financial crisis in 2008 to 2009.”

Shares of BP, which edged into positive territory during mid-morning deals, have fallen approximately 35% since the start of the year.

Dividend confirmed

BP’s debt rose to $51.4 billion at the end of the first quarter, $6 billion higher than the quarter before. And the firm’s debt-to-capital ratio, or gearing, jumped to 36% through the first three months of the year.

The company also announced a dividend of 10.5 cents per share was announced for the quarter.

“The board of BP reviewed the dividend in the first quarter as usual and reviewed it in full and the decision was made to pay that dividend based on the underlying performance of the business in the first quarter and based on the actions we are taking,” Looney told CNBC on Tuesday.

Last week, Norway’s Equinor became the first oil major to cut its dividend this earnings season which had raised concerns that other oil majors may follow suit.

“There will be a sigh of relief from many retail investors that BP has committed to paying a dividend,” Stuart Lamont, investment manager at Brewin Dolphin, told CNBC via email.

“There had been a great deal of debate about what the failure to do so would mean for income investors, who will now have a close eye on Royal Dutch Shell’s results later this week,” Lamont said.

Net-zero by 2050

On February 12, BP’s Looney published a statement entitled “Reimagining energy, reinventing BP.” It outlined the energy firm’s long-term goal of becoming a net-zero company by 2050 “or sooner.”

When asked whether the ongoing impact of the coronavirus crisis had altered his outlook for the business, Looney said there were three reasons to explain why he was now “even more” committed to pursuing this goal.

“Number one, I don’t think this pandemic does anything but add to the challenge for oil outlooks in the future,” Looney said.

“The second is I think it has reminded people in society of the frailty of our ecosystem … People are looking at clear skies and the beauty of that and I think, while we have got different priorities right now, I think people will be very focused on that in the medium term,” he continued.

“Finally, we talked about negative WTI prices last week, Lightsource BP, where we are a 50% shareholder … is letting contracts for 400 megawatts of solar power in the United States. So, there is something about that sector that I think is providing a real attractive proposition for investors and is very resilient at times like this,” Looney added.



April 1, 2020

NRG Energy, Inc. Changes to Virtual Meeting Format for 2020 Annual Meeting of Stockholders

March 3, 2020

At its annual Security Analyst Meeting today, Chevron Corporation (NYSE: CVX) announced expectations to deliver leading shareholder returns through disciplined capital spending, improved cost efficiency, and continued cash flow growth over the next five years.

February 24, 2020

Superior Drilling Products, Inc. (NYSE American: SDPI) (“SDP” or the “Company”), a designer and manufacturer of drilling tool technologies, today announced unaudited preliminary revenue for the year ended December 31, 2019, was $19.0 million, up 4% from the prior year. Fourth quarter 2019 preliminary revenue included approximately $600 thousand from the rental of the Company’s well bore conditioning tool, the Drill-N-Ream® (DNR) in the Middle East, or almost half of SDP’s total Middle East revenue for the year. For the year, international revenue nearly quadrupled to $1.3 million compared with $360 thousand in 2018. At the end of 2019, SDP had $1.2 million in cash. Preliminary results are subject to change pending review by the Company’s independent accountants.

February 20, 2020

Houston Chronicle

Houston oilfield service company Halliburton plans to pay down its long-term debt by issuing $1 billion in lower-interest notes.

Halliburton to pay down debt by issuing $1 billion of lower-interest notes- oil and gas 360

Source: Houston Chronicle

Halliburton on Wednesday said it plans to issue a type of debt known as senior notes. Due in March 2030, the notes will pay 2.92 percent interest.

The company said it will use proceeds from the sales to buy back previously issued senior notes and reduce other forms of debt.

Halliburton closed 2019 with about $10.3 billion of debt, almost one-third less than the $15.4 billion in debt it had at the end of 2015, according to a Securities and Exchange Commission filing.

With the price of crude hovering just above $50 per barrel, most oil companies are reducing drilling and fracking activity, resulting in recent losses for oilfield service companies. Halliburton lost $1.1 billion in 2019.

Shell Midstream Partners, L.P. (NYSE: SHLX) reported net income attributable to the Partnership of $140 million for the fourth quarter of 2019, which equated to $0.37 per common limited partner unit. Shell Midstream Partners also generated adjusted earnings before interest, income taxes, depreciation and amortization attributable to the Partnership of $187 million.

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