What Else is Exxon (XOM) Hiding?
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Price: $138.88 +1.03%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 3.2%
Revenue Growth %: +35.3%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 3.2%
Revenue Growth %: +35.3%
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As reported Thursday, ExxonMobil (NYSE: XOM) investors are probably wondering... what gives?
Finding a billion barrel oil reserve is kind of a big deal -- a material event even for a company as large as Exxon. With the potential for $13 billion in revenue, and the ability to power the entire U.S. for nearly two months, this is the kind of news investors should be made aware of soon after everything is confirmed.
Despite being possibly the largest find in the Gulf, and among the top finds in the company's history, one spokesperson for Exxon said the company "doesn't talk much." Alas, investors only found out about the discovery when Exxon sued the U.S. Interior Department over leases for the oil.
Exxon also has a 50 percent partner in Statoil (NYSE: STO) on the play.
Investors have been worried over the last year or so about Exxon's focus on lower-margin natural gas plays.
In 2009 and 2010, Exxon was all hush-hush about two discoveries in the Hadrian prospect until drilling could be resumed following the long drilling moratorium. Other plays, like the 2007 find in the Julia field, may have kept Exxon quiet due to circumstances: large capital infusions on drills and equipment are needed with no assurance of what Exxon will actually be able to tangibly derive from the play. A premature announcement before things are in place might rile investors' already shaky fears, as oil and gas companies can hit or miss on a daily basis.
Either way, Exxon will continue to battle the Interior about expired patents. A victory could spell handsome gains for investors, while a loss may cause Exxon to go back in the shadows about future finds.
Shares are down 0.8 percent early Friday.
Finding a billion barrel oil reserve is kind of a big deal -- a material event even for a company as large as Exxon. With the potential for $13 billion in revenue, and the ability to power the entire U.S. for nearly two months, this is the kind of news investors should be made aware of soon after everything is confirmed.
Despite being possibly the largest find in the Gulf, and among the top finds in the company's history, one spokesperson for Exxon said the company "doesn't talk much." Alas, investors only found out about the discovery when Exxon sued the U.S. Interior Department over leases for the oil.
Exxon also has a 50 percent partner in Statoil (NYSE: STO) on the play.
Investors have been worried over the last year or so about Exxon's focus on lower-margin natural gas plays.
In 2009 and 2010, Exxon was all hush-hush about two discoveries in the Hadrian prospect until drilling could be resumed following the long drilling moratorium. Other plays, like the 2007 find in the Julia field, may have kept Exxon quiet due to circumstances: large capital infusions on drills and equipment are needed with no assurance of what Exxon will actually be able to tangibly derive from the play. A premature announcement before things are in place might rile investors' already shaky fears, as oil and gas companies can hit or miss on a daily basis.
Either way, Exxon will continue to battle the Interior about expired patents. A victory could spell handsome gains for investors, while a loss may cause Exxon to go back in the shadows about future finds.
Shares are down 0.8 percent early Friday.
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