As the world oil rate decreases from $100 per barrel to $50 since April last year, it rendered some of the Exxon projects worthless with no profit at all. After facing a downfall, they are going to alter the company’s spending by 12% to $34 billion.
Exxon Mobil Corporation is on the verge of poor performance. Exxon Mobil stock, going downwards 4.6 percent per share, is experiencing the worst loss in a day after August 2011.
Exxon was 4.8 percent down in July, whereas Chevron fell by 8.3% in the same month. Collectively, over this year Exxon Mobil shares are 14% down, a great fall for any company to recover. Wall Street anticipated earlier on Friday about quarterly earnings that the oil company will be seen down.
The CEO and Chairman of Exxon Mobil, Rex Tillerson, states about the variation of their company, "Our quarterly results reflect the disparate impacts of the current commodity price environment, but also demonstrate the strength of our sound operations, superior project execution capabilities, as well as continued discipline in capital and expense management.”
The huge drop in crude oil rates also affected the results of Chevron, the oil producer. John Watson, Chevron’s CEO, clearly stated about the financial position of the company in a statement, "Second quarter financial results were weak, reflecting a crude price decline of nearly 50% from a year ago."
Their fast running business was seriously cracked by the fall of oil prices turnovers, which brought out massive destruction to their reputed business. Mr. Watson acknowledged about the improvement in refining, purification, and processing of crude oil, which can give the best financial support by saying that, "Downstream operations continued to deliver strong financial performance, reflecting both high reliability and improved margin."
One of the best and superior oil organizations, Shell, announced yesterday that they have downsized around 6,500 workers, as they are facing a fall in their revenues because of continuous fall in oil rates.
All oil majors in industry are experiencing disruptions in their earnings, which resulted in thousands of jobless workers. These companies have started reviewing their criteria by adjusting their techniques to pull even more oil and gas out of wells, to collect the quantity by which they can cover up their losses or expenditure at least.
It is necessary to bring a quick responsive change in their strategies because industry officials do not expect energy prices to be accelerated anytime soon. At an official meeting last week, Exxon Mobil CEO said about the falling rates, “the low prices are going to be with us for some time."
After the recession in oil prices, the Exxon Mobil stock market also brings the decrease in valuation, as the company is returning money to its shareholders continuously.
Hilcorp Energy is continuing its aggressive push into Alaska’s oil and gas industry.
Hilcorp Energy has snapped up a deal with Exxon Mobil’s (NYSE:XOM) subsidiary division in Alaska for the purchase of the world’s largest oil and gas major’s Cook Inlet assets located in northern Alaska. Houston-based, Hilcorp is planning to buy two offshore platforms from Exxon Mobil subsidiary, XTO Energy, in addition to a tank facility and other offices in the island of Nikiski located in the Kenai Peninsula. The new asset facilities are located at Middle Ground Shoal Gas Field, owned by XTO Energy.The deal represents another avenue for growth for the Hilcorp in the remotest US state region. After setting foot there four years ago, the business has seen its growth by leaps and bounds, and in that process made it the largest producer of oil and gas in the region in Cook Inlet. It further flexed its muscle by acquiring some fields from BP for its North Slope oil and gas business. It also had acquired two other facilities from BP for a 50% stake, bringing the total value of the deal at $1.5 billion.Hilcorp says that they expect the latest round of acquisition to be finished before the end of this year, most likely around the fall, subject to regulatory approval. Once that is achieved, the energy company is expected to make an offer of employment to all of its more than 30 employees who work in the Middle Ground Shoal facilities.This is not the first transaction by Hilcorp of XTO Energy’s assets, though. It acquired the company as a whole, five years ago, as part of more than $30 billion deal, though it did not acquire the company all in one round. Sueann Guthrie, who is the media advisor for the Fort Worth-based company, says that the move is seen as part of meeting the company’s operational and financial objectives, though the contents of the deal are still confidential.On the other hand, Kim Jordan, Exxon Mobil Alaska public affairs coordinator, believes that the transaction will not influence the company’s LNG consortium project in Alaska, a $50 billion joint venture project that will see Exxon partner with state, as well as other local companies, to tap into the North Slope oil and gas reserves. The coordinator also confirmed that the transaction would be completed later this year, probably around the last quarter of this year.Exxon Mobil’s stock price ended the day at $82.53, a decline of more than 0.70% the previous day.
The oil digging firm has reported a much better quarter than expectations of the analysts.
Halliburton Company has successfully ended up surprising analysts and investors in the industry by a huge difference as it has reported a better second quarter of the FY15 than what was expected out of it. The oil digging company is of the biggest of its kind in the world and has proved to be carrying out a successfully progressive business following the earnings report presented recently, given the difficult time it was facing due to the oil prices which faced an all-time low in the international market.Halliburton oil firm reported the earnings for the second fiscal quarter of 2015 before the stock market opened for the day. It was seen that the oil company managed to receive net income of around $380 million in which a decline was most evident as in the last quarter of the same year; the net income had been recorded at $418 million. The loss at that point came out to be of 9.09 percent. On the other hand, the earnings per share of the oil field services providing firm turned out to be $0.44. However, this time around, the analysts expected the EPS of the company to come around at 0.29 which showed that the oil services provider outdone itself by reported such a high earnings rate.Even though as compared to the previous quarter, Halliburton has reported comparatively low figures, they are still much higher than what the analysts expected it to show. Furthermore, operating income was announced in the earnings conference to come to be $643 million while total revenue was noted down at $5.9 billion. This showed that a decrease of 16.9 percent was recorded as compared to the first quarter of the same year. However, it was seen that the oil digging firm carried out its business in the oil industry around 26 percent more positive results than what the other companies achieved.It was also expected from the oil company’s future endeavors that the share price might go down from the current position as the oil prices have been experiencing a major dip for the past couple of quarters.
