By Daniel Gilbert
Exxon Mobil Corp. (XOM) will release its results for the third
quarter of 2014 at 7:00 a.m. CT, and hold a conference call at 8:30
a.m. CT. Here's what you should know:
EARNINGS FORECAST: Net income of $1.71 a share is the consensus
of analysts surveyed by Thomson Reuters, compared with $1.79 a year
earlier.
REVENUE FORECAST: Revenue of $105.5 billion is forecast,
compared with $111.6 billion a year ago.
WHAT TO WATCH:
--PRODUCTION SLUMP: Exxon's output in the second quarter fell to
its lowest level in five years, as it shed some less profitable
barrels in Abu Dhabi. But the company should see some increase from
major projects like a liquefied natural-gas plant in Papua New
Guinea, which shipped its first cargo earlier this year.
--LEFTOVER CASH: For eight of the last nine quarters, Exxon has
shelled out more in capital costs, dividends and share buybacks
than the cash it has brought it from operations and selling assets.
With lower oil prices biting into cash flow, the company is likely
to either dial back on spending or add more debt.
--RUSSIAN OIL: Just days after Exxon said it would stop drilling
in Russia's Arctic waters because of new U.S. sanctions, its
Russian partner OAO Rosneft announced that the companies had struck
oil in the first well. Exxon is likely to get questions about how
sanctions will impact its venture in the Arctic, which is believed
to hold some of the world's largest untapped crude deposits.
-Daniel Gilbert; AskNewswires@dowjones
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