ExxonMobil Stock Rout Deepens as Profit Flub Meets S&P 500 Plunge
(Bloomberg) -- Exxon Mobil Corp. is on course for its steepest two-day stock rout in almost 2 1/2 years.
The plunge began this morning, following fourth-quarter results that missed expectations on Friday, and deepened this afternoon as the S&P 500 Index endured its steepest single-day decline since August 2015. Brent crude traded down 1.7 percent at $67.44 a barrel at 3:23 p.m. New York time.
“It’s a follow up trade from Friday, there’s nothing incremental that’s come out since the earnings call,” said Jason Gammel, a London-based analyst at Jefferies LLC, with a ‘hold’ rating on the stock. “There were pretty weak cash flow numbers. It was a pretty big miss.”
Exxon missed analysts’ fourth-quarter profit and production estimates, disappointing investors who had hoped the oil giant would have cashed in more from crude’s rally at the end of last year. Additionally, the Irving, Texas-based company said share buybacks to return capital to shareholders remain suspended. They were halted in 2016.
Stock in the world’s biggest oil explorer by market value traded down 5.2 percent to $80.11 at 3:27 p.m. in New York, compounding Friday’s 5.1 percent decline. The slump was the driller’s steepest two-day plunge since August 2015. Trading volume was almost double the three-month daily average.
Exxon has an “aggressive” growth strategy in each of its upstream, downstream and chemicals businesses that will be detailed to investors on March 7, Jeff Woodbury, Exxon’s vice president of investor relations, said during a call with analysts on Friday. Key to its upstream expansion is a more than 3 billion barrel discovery in Guyana, a ramp up in U.S. shale fields plus recent acquisitions in Mozambique and Papua New Guinea, he said.
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