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Rap Sheet

Author:

Reggie Abaca

Subject:

Analysis

Date:

10/30/08 at 12:07 PM CDT

 

 

READ: 244

RPLY: 3

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RECS:1

Sentiment:

Neutral

Exxon Breaks Records and Ignites Passions

Exxon Mobil today shattered a record it had itself created today, reported income Thursday that shattered its own record for the biggest profit from operations by a U.S. corporation, earning $14.83 billion in the third quarter.

That is sure to ignite the raw passions of the political world.  Look for the presidential candidates to jump all over this.

Yet numbers contained within the company's recent financial report revealed production numbers that continue to fall, and shares slipped 3 percent in midday trading.

On average, analysts expected the company to earn $2.39 per share in the latest quarter on revenue of $131.4 billion.  Exxon said net income jumped nearly 58 percent to $2.86 a share in the July-September period. That compares with $9.41 billion, or $1.70 a share, a year ago.

Setting U.S. profit records has become commonplace for the oil giant.  But it has also created a negative persona for the company, which is looked to be deeply associated with the current unpopular American administration.

Things will likely change in one week.  Polls show Barack Obama comfortably ahead in the electoral college, by about 2 to 1.  Intrade, a prediction market based in Ireland, shows an 86% chance Obama will be the victor.

That has kept many oil industry investors anxious, knowing that the Democrats, speaking loudly about more government regulation, will soon have full control of the U.S. government.

In most cases, politics and the market are not this closely aligned.  But today they are more than ever.  The cloud of a Democratic governement and administration will be upon XOM shareholders soon, so it would be wise to be cautious.  Meanwhile, Exxon is loudly bragging about their record profit.  Somebody needs to tell them to be quiet.

govt regulations are serious business for Democrats.  It will become a bad time to invest in A LOT of companies pretty soon.


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Author:

Mahyar Hashemi

Subject:

Analysis

Sentiment:

Neutral

Date:

10/30/08 at 12:30 PM CDT

Natural gas is probably still good though.  I wish I was more knowledgable about a lot of the energy companies.  There's probably some amazing values out there right now


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Author:

Perry Rod

Subject:

Analysis

Sentiment:

Neutral

Date:

10/30/08 at 1:18 PM CDT

Like father, Like Son...

Chevron's 3Q profit soars on oil prices
Friday October 31, 10:11 am ET
By John Porretto, AP Energy Writer Chevron's third-quarter profit doubles on record crude prices

HOUSTON (AP) -- Chevron Corp. said Friday its third-quarter profit more than doubled on the back of record crude prices this summer, though worldwide production fell during the period.

Chevron, the second-largest U.S. oil company, capped off a continued string of robust quarterly profit reports from the world's major oil companies, including another U.S. corporate profit record for No. 1 Exxon Mobil Corp.

Altogether, Chevron, Exxon Mobil and rivals BP PLC, Royal Dutch Shell PLC and ConocoPhillips posted earnings of $44.4 billion for the July-September period, up 58 percent from the same time a year ago.

But this period of astounding, sometimes record profits may be coming to an end.

Crude prices peaked at $147 near the start of the quarter in mid-July before embarking on a dramatic slide that has continued into the fourth quarter. When the third quarter ended Sept. 30, benchmark crude prices were still around $100 a barrel. In early trading Friday, they slipped below $64 a barrel.

San Ramon, Calif.-based Chevron said it earned $7.89 billion, or $3.85 a share, in the three months ended Sept. 30, versus $3.72 billion, or $1.75 per share, at the same time last year.

Analysts were expecting average earnings of $3.25 per share based on a survey by Thomson Reuters.

Revenue shot up 43 percent to $78.87 billion from $55.2 billion.

"Our disciplined capital spending and tight control over costs remain extremely important in today's uncertain economic climate," said Chevron chairman and chief executive Dave O'Reilly. "Our strong balance sheet enables Chevron to continue investing in attractive projects that increase the production of oil and gas and improve the efficiency of our refinery network."

Its shares slipped 10 cents to $74.08 in morning trading Friday.

Chevron said earnings from its exploration and production, or upstream, business rose about 80 percent in the quarter to $6.18 billion, buoyed by crude prices.

However, global production fell nearly 6 percent to an average of 2.44 million barrels of oil equivalent a day, hurt in part from late-summer hurricanes that shut down output in the Gulf of Mexico.

At its U.S. upstream arm, Chevron said the average sales price for a barrel of crude and natural gas liquids was $107 in the third quarter, up from $67 a year ago.

Chevron said it swung to a profit of $1 billion at its U.S. refining and marketing arm after posting a loss of $110 million a year ago, when ample gasoline supplies made it difficult for Chevron and other refiners to recover higher oil costs at the gasoline pump.

During this year's third quarter, Chevron said it benefited from significantly higher margins on the sale or refined products -- largely because of the dramatic drop in crude prices.

The company made the turnaround even though branded gasoline sales volumes fell 7 percent from a year ago.

Chevron reported capital and exploratory expenditures of $5.5 billion in the quarter, up from $5.2 billion a year ago. It also bought back $2 billion shares of its common stock.

 


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Author:

Mahyar Hashemi

Subject:

Analysis

Sentiment:

Neutral

Date:

10/31/08 at 11:35 AM CDT

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