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The Zacks Analyst Blog Highlights: ExxonMobil, Chevron, Royal Dutch, BP and TOTAL
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For Immediate Release
Chicago, IL –February 22, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: ExxonMobil (XOM - Free Report) , Chevron (CVX - Free Report) , Royal Dutch Shell plc , BP plc (BP - Free Report) and TOTAL S.A. .
Here are highlights from Thursday’s Analyst Blog:
Big Oil Q4 Earnings Scorecard: Things Investors Need to Know
With the fourth-quarter earnings season almost over, it’s time to sit back and analyze the bevy of ‘Big Oil’ firms that put in their reports. The world’s five biggest non-state oil firms – traditionally known as supermajors – reported profits that jumped in the fourth quarter compared to the same period a year before. All but one of the companies also managed to beat the Zacks Consensus Estimate. At the same time, a number of them jumped on the results, reflecting improvement in free cash flow generation.
In this writeup, we dive into the results from U.S.-based energy behemoths ExxonMobil and Chevron plus the three European majors – Royal Dutch Shell plc, BP plc and TOTAL S.A.
XOM
Earnings & Revenue: The company reported fourth-quarter adjusted earnings per share of $1.51, ahead of the Zacks Consensus Estimate of $1.08 and the year-ago profit of 88 cents. The outperformances were driven by robust downstream profits thanks to impressive margins from North American crude differentials, and ramped-up liquids production from the prolific Permian Basin.
Total revenues at the Irving, TX-based world's largest vertically integrated oil company was $71.9 billion, up 8% from a year ago. However, sales marginally lagged the Zacks Consensus Estimate of $74.2 billion due drop in crude price realizations.
Production:The production of oil and natural gas averaged 4,010 thousand barrels of oil-equivalent per day (MBOE/d) (59% oil), marginally higher than 3,991 MMBOE/d a year ago. Results were also above the Zacks Consensus Estimate of 3,921 MMBOE/d.
Free Cash Flow: In the fourth quarter, the company generated around $8.6 billion of cash from operating activities while shelling out $7.8 billion on capital expenditures for free cash flow of $0.8 billion. During the same period, ExxonMobil paid out $3.5 billion as dividends to its shareholders.
Debt:ExxonMobil's total debt is currently around $37.8 billion, down from $42.3 billion a year ago.
Share Price Impact:The company's shares rose more than 2% following the strong earnings beat.
CVX
Earnings & Revenue: The company reported fourth-quarter earnings per share of $2.06, ahead of the Zacks Consensus Estimate of $1.87 and the year-ago quarter’s earnings of 73 cents. The outperformances were driven by higher revenues, record production and rising oil price realizations.
Total revenues at the San Ramon, CA-based energy giant was $42.3 billion, up 12.5% from a year ago and beat the Zacks Consensus Estimate of $41.6 billion.
Production:The production of oil and natural gas averaged a record 3,083 MBOE/d (60% liquids), up 12.5% from last year. Overall volumes were also above the Zacks Consensus Estimate of 2,991 MBOE/d.
Free Cash Flow: In the fourth quarter, the company generated around $9.1 billion of cash from operating activities while shelling out $5.8 billion on capital expenditures for free cash flow of $3.3 billion. During the same period, Chevron paid out $2.1 billion as dividends to its shareholders and repurchased $1 billion worth of shares.
Debt:Chevron's total debt is currently around $34.5 billion, down from $38.8 billion a year ago.
Share Price Impact:The company's shares jumped more than 4% as production reached an all-time high and free cash flow went up significantly.
RDS.A
Earnings & Revenue: The company reported earnings per ADS (on a current cost of supplies basis, excluding items - the market’s preferred measure) of $1.38, above the Zacks Consensus Estimate of $1.30 and the year-ago profit of $1.04, driven by robust commodity price realizations and higher downstream earnings.
Total revenues at The Hague-based group were $104.6 billion, 18.7% above the fourth-quarter 2017 sales of $88.1 billion and beating the Zacks Consensus Estimate of $86.9 billion.
Production:The production of oil and natural gas averaged 2,809 MBOE/d (60% liquids), up 1% from last year.
Free Cash Flow:In the fourth quarter, the Zacks Rank #3 (Hold) company generated around $22 billion of cash from operating activities while shelling out $8 billion on capital expenditures for free cash flow of $14 billion. During the same period, Shell paid out $3.9 billion as dividends to its shareholders and repurchased $2.5 billion worth of shares (up to Jan 28).
Debt:As of Dec 31, 2018, the company had $76.8 billion in total debt, as against $85.7 billion at the end of 2017.
Share Price Impact:The company's shares surged around 5.5% as cash flow from operations soared 202% from the year-earlier level it announced the third instalment of its three-year $25 billion buyback program.
TOT
Earnings & Revenue:The company reported fourth-quarter operating earnings per share of $1.17, lagging the Zacks Consensus Estimate of $1.22 by 4.1% due to slightly weaker production in the Middle east and. However, the bottom line improved from the year-ago profit of $1.04, driven by rising oil prices and solid production.
Total revenues at the Paris, France-based energy company was $46.3 billion, increasing 12% year over year.
Production:The production of oil and natural gas averaged 2,876 MBOE/d (55% liquids), up 10% from last year.
Free Cash Flow:In the fourth quarter, the company generated around $10.6 billion of cash from operating activities while shelling out $4.5 billion on capital expenditures for free cash flow of $6.1 billion. During the same period, TOTAL paid out around $700 million as dividends to its shareholders and repurchased $500 million worth of shares.
Debt:Net debt as of Dec 31, 2018 was $21.7 billion compared with $15.4 billion recorded in the corresponding period of 2017.
Share Price Impact:Despite announcing a 3.1% increase in its 2019 dividend, TOTAL shares edged down 1% following lower-than-expected earnings number.
BP
Earnings & Revenue:The company reported fourth-quarter adjusted earnings of $1.04 per American Depositary Share (ADS) on a replacement cost basis, excluding non-operating items, ahead the Zacks Consensus Estimate of 78 cents and the year-ago quarter’s 64 cents. The London, UK-based company benefited from higher oil equivalent price realizations, ramped-up production from key upstream projects and strength in the fuel marketing businesses.
In the reported quarter, BP’s revenues of $76.9 billion surpassed the Zacks Consensus Estimate of $60.7 billion and was 10% above the fourth-quarter 2017 sales.
Production:The production of oil and natural gas averaged 2,627 MBOE/d (50% liquids), up from last year’s 2,581 MBOE/d.
Free Cash Flow: In the fourth quarter, the company generated around $7.1 billion of cash from operating activities while shelling out $4.4 billion on capital expenditures for free cash flow of $2.7 billion. During the same period, BP paid out around $1.7 billion as dividends to its shareholders and repurchased $16 million worth of shares.
Debt:BP's net debt was $44,144 million at the end of the fourth quarter, higher than $37,819 million a year ago.
Share Price Impact:The company's shares gained 4% as investors were encouraged by the solid quarterly results.
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This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: ExxonMobil, Chevron, Royal Dutch, BP and TOTAL
For Immediate Release
Chicago, IL –February 22, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: ExxonMobil (XOM - Free Report) , Chevron (CVX - Free Report) , Royal Dutch Shell plc , BP plc (BP - Free Report) and TOTAL S.A. .
Here are highlights from Thursday’s Analyst Blog:
Big Oil Q4 Earnings Scorecard: Things Investors Need to Know
With the fourth-quarter earnings season almost over, it’s time to sit back and analyze the bevy of ‘Big Oil’ firms that put in their reports. The world’s five biggest non-state oil firms – traditionally known as supermajors – reported profits that jumped in the fourth quarter compared to the same period a year before. All but one of the companies also managed to beat the Zacks Consensus Estimate. At the same time, a number of them jumped on the results, reflecting improvement in free cash flow generation.
In this writeup, we dive into the results from U.S.-based energy behemoths ExxonMobil and Chevron plus the three European majors – Royal Dutch Shell plc, BP plc and TOTAL S.A.
XOM
Earnings & Revenue: The company reported fourth-quarter adjusted earnings per share of $1.51, ahead of the Zacks Consensus Estimate of $1.08 and the year-ago profit of 88 cents. The outperformances were driven by robust downstream profits thanks to impressive margins from North American crude differentials, and ramped-up liquids production from the prolific Permian Basin.
Total revenues at the Irving, TX-based world's largest vertically integrated oil company was $71.9 billion, up 8% from a year ago. However, sales marginally lagged the Zacks Consensus Estimate of $74.2 billion due drop in crude price realizations.
Production:The production of oil and natural gas averaged 4,010 thousand barrels of oil-equivalent per day (MBOE/d) (59% oil), marginally higher than 3,991 MMBOE/d a year ago. Results were also above the Zacks Consensus Estimate of 3,921 MMBOE/d.
Free Cash Flow: In the fourth quarter, the company generated around $8.6 billion of cash from operating activities while shelling out $7.8 billion on capital expenditures for free cash flow of $0.8 billion. During the same period, ExxonMobil paid out $3.5 billion as dividends to its shareholders.
Debt:ExxonMobil's total debt is currently around $37.8 billion, down from $42.3 billion a year ago.
Share Price Impact:The company's shares rose more than 2% following the strong earnings beat.
CVX
Earnings & Revenue: The company reported fourth-quarter earnings per share of $2.06, ahead of the Zacks Consensus Estimate of $1.87 and the year-ago quarter’s earnings of 73 cents. The outperformances were driven by higher revenues, record production and rising oil price realizations.
Total revenues at the San Ramon, CA-based energy giant was $42.3 billion, up 12.5% from a year ago and beat the Zacks Consensus Estimate of $41.6 billion.
Production:The production of oil and natural gas averaged a record 3,083 MBOE/d (60% liquids), up 12.5% from last year. Overall volumes were also above the Zacks Consensus Estimate of 2,991 MBOE/d.
Free Cash Flow: In the fourth quarter, the company generated around $9.1 billion of cash from operating activities while shelling out $5.8 billion on capital expenditures for free cash flow of $3.3 billion. During the same period, Chevron paid out $2.1 billion as dividends to its shareholders and repurchased $1 billion worth of shares.
Debt:Chevron's total debt is currently around $34.5 billion, down from $38.8 billion a year ago.
Share Price Impact:The company's shares jumped more than 4% as production reached an all-time high and free cash flow went up significantly.
RDS.A
Earnings & Revenue: The company reported earnings per ADS (on a current cost of supplies basis, excluding items - the market’s preferred measure) of $1.38, above the Zacks Consensus Estimate of $1.30 and the year-ago profit of $1.04, driven by robust commodity price realizations and higher downstream earnings.
Total revenues at The Hague-based group were $104.6 billion, 18.7% above the fourth-quarter 2017 sales of $88.1 billion and beating the Zacks Consensus Estimate of $86.9 billion.
Production:The production of oil and natural gas averaged 2,809 MBOE/d (60% liquids), up 1% from last year.
Free Cash Flow:In the fourth quarter, the Zacks Rank #3 (Hold) company generated around $22 billion of cash from operating activities while shelling out $8 billion on capital expenditures for free cash flow of $14 billion. During the same period, Shell paid out $3.9 billion as dividends to its shareholders and repurchased $2.5 billion worth of shares (up to Jan 28).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Debt:As of Dec 31, 2018, the company had $76.8 billion in total debt, as against $85.7 billion at the end of 2017.
Share Price Impact:The company's shares surged around 5.5% as cash flow from operations soared 202% from the year-earlier level it announced the third instalment of its three-year $25 billion buyback program.
TOT
Earnings & Revenue:The company reported fourth-quarter operating earnings per share of $1.17, lagging the Zacks Consensus Estimate of $1.22 by 4.1% due to slightly weaker production in the Middle east and. However, the bottom line improved from the year-ago profit of $1.04, driven by rising oil prices and solid production.
Total revenues at the Paris, France-based energy company was $46.3 billion, increasing 12% year over year.
Production:The production of oil and natural gas averaged 2,876 MBOE/d (55% liquids), up 10% from last year.
Free Cash Flow:In the fourth quarter, the company generated around $10.6 billion of cash from operating activities while shelling out $4.5 billion on capital expenditures for free cash flow of $6.1 billion. During the same period, TOTAL paid out around $700 million as dividends to its shareholders and repurchased $500 million worth of shares.
Debt:Net debt as of Dec 31, 2018 was $21.7 billion compared with $15.4 billion recorded in the corresponding period of 2017.
Share Price Impact:Despite announcing a 3.1% increase in its 2019 dividend, TOTAL shares edged down 1% following lower-than-expected earnings number.
BP
Earnings & Revenue:The company reported fourth-quarter adjusted earnings of $1.04 per American Depositary Share (ADS) on a replacement cost basis, excluding non-operating items, ahead the Zacks Consensus Estimate of 78 cents and the year-ago quarter’s 64 cents. The London, UK-based company benefited from higher oil equivalent price realizations, ramped-up production from key upstream projects and strength in the fuel marketing businesses.
In the reported quarter, BP’s revenues of $76.9 billion surpassed the Zacks Consensus Estimate of $60.7 billion and was 10% above the fourth-quarter 2017 sales.
Production:The production of oil and natural gas averaged 2,627 MBOE/d (50% liquids), up from last year’s 2,581 MBOE/d.
Free Cash Flow: In the fourth quarter, the company generated around $7.1 billion of cash from operating activities while shelling out $4.4 billion on capital expenditures for free cash flow of $2.7 billion. During the same period, BP paid out around $1.7 billion as dividends to its shareholders and repurchased $16 million worth of shares.
Debt:BP's net debt was $44,144 million at the end of the fourth quarter, higher than $37,819 million a year ago.
Share Price Impact:The company's shares gained 4% as investors were encouraged by the solid quarterly results.
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Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.