Exxon Mobil Corporation (NYSE:
XOM) is scheduled to reports its Q1 2010 results after the market closes on April 28, 2010. ExxonMobil is expected to return to volume growth for the first time since 2006, however, an approximate 6% of returns dilution is likely from the acquisition of XTO. The successful ramp of Qatari LNG volumes will drive 3.5% production growth in 2010 after a disappointing 2008-2009. XOM has also had multiple high impact exploration successes (Brazil, Greenland, Madagascar, Indonesia, etc.).
Exxon Mobil Corporation's principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacturing of petroleum products and transportation and sale of crudeoil, natural gas and petroleum products. Exxon Mobil is a major manufacturer and marketer of basic petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a wide variety of specialty products. Exxon Mobil is engaged in exploration for, and mining and sale of coal, copper and other minerals.
As for Q4 2009, earnings were $6,050 million, a decrease of 23% or $1,770 million from the Q4 of 2008. Earnings per share were $1.27, a decrease of 18%. Capital and exploration expenditures were $8.3 billion, up 21% from the Q4 of 2008. Oil-equivalent production increased nearly 2% from the Q4 of 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up over 3%. Cash flow from operations and asset sales was $8.9 billion, including asset sales of $0.3 billion. Share purchases to reduce shares outstanding were $2.0 billion. Exxon Mobil Corporation and XTO Energy Inc. announced an all-stock transaction valued at $41 billion.
Analysts' estimates for Q1 2010 range from a low of $1.22 to a high of $1.48, compared to a consensus estimate of $1.38, with number of estimates being 13 and the co-efficient variance 5.25. In Q1 of 2010, share purchases to reduce shares outstanding are expected to continue at a pace consistent with Q4 2009 of $2 billion. However, total purchases for the quarter may be less due to trading restrictions following the filing of XTO Energy's merger proxy. On January 27, 2010, The Board of Directors of Exxon Mobil Corporation declared a cash dividend of 42 cents per share on the Common Stock, payable on March 10, 2010 to shareholders of record of Common Stock at the close of business on February 10, 2010. On January 25, 2010, ExxonMobil Iraq Limited signed an agreement with the Iraq Ministry of Oil to redevelop and expand the West Qurna-1 field in southern Iraq.
The stock closed $ $69.29, on April 26, 2010 and most analysts' recommend this stock as a relative Overweight with an average price target of $80. The share price will rise in absolute terms over the next 60 days as the stock has traded off recently, making short term valuation much more compelling. ExxonMobil has among the highest free cash flow yields, 9%, of the Integrated's at the current strip.
