Editor’s Note: Related Tickers: Exxon Mobil Corporation (NYSE:XOM), TOTAL S.A. (ADR) (NYSE:TOT), Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), BP plc (ADR) (NYSE:BP), Eni SpA (ADR) (NYSE:E), Chevron Corporation (NYSE:CVX)
Exxon’s Rex Tillerson see climate change as risk managment problem (Plain Dealer)
Climate change is a serious and complex problem that society may not be able to fix and will just have to deal with, the head of the world’s largest oil company said Friday. “I view it as a risk management problem,” Rex Tillerson, CEO of Exxon Mobil Corporation (NYSE:XOM), said in response to a question following his address to the City Club of Cleveland. It was the second time in 13 months that Tillerson articulated Exxon’s new acceptance that climate change appears to be a reality. And it was the second time that Tillerson suggested the problem may not solvable. Previously Exxon did not acknowledge the possibility of climate changes, let alone how it might be dealt with.
Exxon sued over Arkansas pipeline spill (CNN)
The Arkansas Attorney General and the federal government are suing Exxon Mobil Corporation (NYSE:XOM), alleging improper waste storage and water contamination stemming from a March pipeline spill that sent thousands of barrels of heavy tar sands crude flooding into the small town of Mayflower. In a lawsuit filed Thursday, the Arkansas AG alleges that Exxon stored oil and oil-contaminated clean-up material alongside a state highway without a permit, despite being told to remove the material on May 1. Civil penalties related to that case could total $25,000 per violation.
Jefferies Raises Price Target on Exxon (XOM) (Dividend.com)
Jefferies reported on Monday that it has raised its price target on energy company, Exxon Mobil Corporation (NYSE:XOM) to match its current price. The firm has reaffirmed a “Hold” rating on XOM, and has increased the company’s price target from $85 to $90. This new price target suggests that the stock will remain flat at its current price of $91.45. Analyst Iain Reid commented, “our deep-dive into the global majors free cashflow prospects identifies four winners, TOTAL S.A. (ADR) (NYSE:TOT), Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), BP plc (ADR) (NYSE:BP) and Eni SpA (ADR) (NYSE:E). Key drivers are the ability of these companies to deliver new, higher-margin barrels whilst limiting capex growth, aided by on-going portfolio divestments. We have upgraded PBR to Buy, raised our BP price target by 10% whilst downgrading Chevron Corporation (NYSE:CVX) to Hold.”
Exxon CEO: U.S. Losing Ground in Natural Gas Exports (Fox Business)
Exxon Mobil Corporation (NYSE:XOM) Chief Executive Rex Tillerson criticized delays in approving more natural gas export projects, saying U.S. companies are losing millions of dollars a day and the nation is losing ground to other countries. On Thursday, U.S. Energy Secretary Ernest Moniz told lawmakers in Washington that he plans to “expeditiously” begin evaluating more than a dozen applications that are awaiting approval. The applications would allow for the export of liquefied natural gas. “It’s a very competitive marketplace. It’s not like people are just going to stand at our door like panting dogs just waiting for us to give this (LNG) to them,” Tillerson said, according to Reuters.
Exxon Mobil management guilty of corporate greed (Billings Gazette)
Exxon Mobil Billings Refinery employs far fewer company-employed wage earners than the other two refineries in the valley. They rely on contractors to do work that the other two refineries often do “in house.” They say they are more competitive that way. The number of total employees at Billings Exxon Mobil, however, has remained constant for many years. This suggests a top-heavy management structure. Now Exxon Mobil Corporation (NYSE:XOM) has laid off some of the above-mentioned contractors and replaced them with lower-wage workers. Many of these laid-off workers had worked at the Billings plant for several years. Exxon Mobil says this move was strictly to remain competitive. The three largest expenses in refining are crude oil, energy costs and catalyst/chemical costs. It makes no sense to start cutting wages first.