Exxon Revenue Decline Not Preventing New Stock Highs

Energy

Published: May 1, 2014 8:55 am

Last Updated: April 27, 2020 9:03 pm

Exxon Mobil Corp. (NYSE: XOM) reported first-quarter 2014 results before markets opened Thursday. The integrated oil and gas company posted diluted earnings per share (EPS) of $2.10 on revenues of $106.77 billion. In the same period a year ago, the company reported EPS of $2.12 on revenues of $108.36 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.88 on revenues of $109.76 billion.

As with ConocoPhillips (NYSE: COP), which reported earnings earlier this morning, Exxon’s worldwide production of both oil and natural gas in the quarter was lower year-over-year. Global liquids production slipped from 2.193 million barrels a day in the first quarter of 2013 to 2.148 million barrels a day.

Worldwide natural gas production fell from 13.2 billion cubic feet a day to 12.02 billion cubic feet per day. In barrels of oil equivalent, production fell from 4.395 million barrels a day to 4.151 million barrels a day.

Exxon did not reveal its average realized prices per barrel, but the company did say that earnings from its upstream operations rose $746 million year-over-year to $7.78 billion on higher price realizations for natural gas, partially offset by lower prices for liquids.

Downstream earnings (refining and marketing) slipped by $732 million to $813 million as a result of weaker refining margins. Refined product sales rose to 5.82 million barrels a day, up 62,000 barrels compared with a year ago.

The company’s CEO said:

ExxonMobil’s first quarter earnings and cash flow reflect the company’s continuing focus on delivering profitable growth and creating long-term shareholder value. Strong performance in the Upstream benefitted from improved production mix and increased unit profitability.

Exxon’s CEO also noted that the company had returned $5.7 billion to shareholders through dividends and stock buybacks during the first quarter. Those returns are the result of a drop of 28% in capital spending from $11.78 billion in the year-ago quarter to $8.4 billion. In the first quarter of last year, Exxon closed its $3.1 billion acquisition of Canada-based Celtic Exploration Ltd.

Exxon shares traded up about 0.5% in Thursday’s premarket to $102.90, above the stock’s 52-week range of $84.79 to $102.57. Thomson Reuters had a consensus analyst price target of around $99.30 before this report.

ALSO READ: States With the Most Drunk Driving

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.