Oil and gas major-giant Exxon Mobil is scheduled to release its Q4 earnings results tomorrow Jan 31 pre-market with a conference call to follow at 9:30 am ET the same day.
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$XLE
Oil and gas major-giant giant Exxon Mobil (XOM) is scheduled to release its Q3 earnings results tomorrow on Oct 28 before the opens with a conference call to follow at 9:30 am ET the same day.
Capital IQ Consensus calls for EPS of $0.60 and a revenue decline of 10.0% to $60.6 bln, compared to EPS of $1.01 on revenue of $67.3 bln in 3Q15
The company announced an oil discovery in offshore Nigeria; potential recoverable resource of between 500 mln & 1 bln barrels of oil. Some color about this find was in the press release. Color on this tomorrow will be good.
In other news that just came out a couple of hours ago, Exxon Mobil is mulling setting up a full-scale trading division, according to the FT.
XOM Chart: https://www.tradingview.com/x/ceKwvDIR/
Peers include: PTR, EC, TOT, SNP, STO, E, OXY, SSL, MITSY, ECA, YPF, PZE, RDS.A, BP, CVX
Geographic Revenue Breakdown
- North America -- 38.2% of total FY15 revenue
- Latin America -- 11.4% of total FY15 revenue
- Europe/Africa/Russia Caspian -- 20.8% of total FY15 revenue
- Middle East/Asia Pacific -- 21.9% of total FY15 revenue
- Industrial Services -- 7.7% of total FY15 revenue
Some of the most exciting news in this space in the past year was when Halliburton (HAL) announced an agreement which HAL will acquire all the outstanding shares of Baker Hughes (BHI) in a stock and cash transaction.
In their last report, Halliburton said, "We are enthusiastic about and fully committed to closing the compelling BHI transaction, and remain confident we can achieve annual cost synergies of nearly $2 billion." BHI is the world's third largest oilfield services company. SLB is the largest and HAL is the second largest.
Technicals
Technically, BHI remains in context of its downtrend off the 2015 highs, below its down-sloping 200-day moving averages (48/49). Energy as a whole has stabilized during Q1 of this year as Crude rallied back towards four month highs off the Feb lows.
BHI currenty sits along the top of its own 4-month range highs near the $47-area. A positive response to earnings will need to clear this resistance as well as the 200-day ma's above near 48/49. This would ignore more short covering. A negative response to earnings will liekly cause a test support near the 50-day ma's at 43/44, followed by its YTD range lows near 38/40.
HAL
Geographic Revenue Breakdown
- North America - 45.9% of total FY15 revenue
- Latin America - 13.3% of total FY15 reveue
- Europe/Africa -- 17.7% of total FY15 revenue
- Middle East/Asia -- 23.1% of total FY15 revenue
In their annual report, Halliburton stated that the Baker Hughes acquisition may not be accretive, and may be dilutive, to their earnings per share in the near term.
A Technical Perspective
Technically, HAL has been on the mend off its January/February lows with a gain of more than 40%. It's recent upward momentum is clearing its longer-term downtrend line with price challenging resistance at the 40/41 area from the latter half of 2015. Expect price to push higher towards 45 on a positive response to earnings. A negative response will likely knock price back down towards the 36/37 followed by 34.
Options Activity
Based on HAL options, the current implied volatility stands at ~ 30%, which is 2% lower than historical volatility (over the past 30 days). Based on the HAL weekly Apr22 straddle, the options market is currently pricing in a move of ~2% in either direction by weekly expiration (Fri).
OIH WILL BE IMPACTED BY THE REPORTS