Any storm going through the Gulf is going to slow the pace of the recovery from Katrina. |
Delivering volume growth is critical to the Exxon story -- but incremental margins are equally critical. |
Evacuations have already started, which is going to disrupt production. Any storm going through the Gulf is going to slow the pace of the recovery from Katrina. |
Exxon Mobil's exposure to North Sea natural-gas prices and European marketing are two main areas of variance vs. our expectations. |
Exxon produces the equivalent of a small country every year so replacing that with new reserves is a tough task. But they've got a pipeline of opportunities coming online that promises to be a meaningful driver of growth. |
I don't think $65 oil is sustainable in the long term. There will be a reaction from either the supply or demand side. |
It doesn't take long in this price environment for these deals to pay for themselves. |
The dynamic shifted this year. There was a growing perception that supply was running out. The doomsday scenario that stated OPEC couldn't meet demand and the Saudis wouldn't be able to increase output gained traction. |
The removal of hedging for '06 should reveal (the company's) true earnings power as hedges have depressed earnings over the past three years. |
The second half of last year we started to see another list of projects in place. It is in a lucrative position with one of the strongest production profiles in the sector with very attractive margins as well. |
There is no shortage of actual physical supplies; what there is is a shortage of spare capacity. |
There seems to be a greater tolerance in the economy in terms of what can be withstood. |
We continue to view near-term sector weakness as more opportunity than risk as we head toward winter. |
While stocks once again saw significant draws, the market's focus is currently set on seemingly weaker demand. |
Without a shadow of a doubt, Exxon has the best management in the oil industry. They've been riding the momentum of higher prices for some time now, and they've got a pipeline of new opportunities that promises volume growth. |