Exxon Mobil Stock Is on a 9-Day Losing Streak - Barron's

Exxon’s drop has come as oil prices have fallen. Photograph by David McNew/Getty Images

Exxon Mobil stock had fallen for nine days in a row as of Monday’s market close, the longest losing streak since a 10-day drop in 2015. The stock has lost 7.2% over that period, which is about the same as Exxon Mobil’s total return in 2019 including dividends.

Exxon’s (ticker: XOM) drop comes as oil has fallen into a bear market, and natural gas has dropped below $2 per million British thermal units, the lowest level in about four years. Oil and gas are struggling because investors are worried about the coronavirus, which has cut into travel in China, making worse a worrisome global supply-demand picture this year.

Exxon has also faced other difficulties. Management told investors this month that its fourth-quarter earnings are likely to be lower than those for the third quarter in several areas outside of oil and gas production. A drop in refining margins could sap $600 million to $800 million from results, while weakness in chemicals will hurt the numbers as well.

Exxon is set to release its earnings report on Friday morning.

Investors have been debating Exxon’s prospects in recent months, because the company has taken a different path than competitors. While Chevron and some others have cut back on big projects in order to preserve cash, Exxon has continued to increase production, both in the U.S. and in new areas such as Guyana, where the company recently began producing oil from an offshore field.

Although Exxon’s large size makes it relatively resilient to swings in the oil market, it has been a streaky stock over the past year. In September, the shares rose for 10 days in a row.

Write to Avi Salzman at avi.salzman@barrons.com

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https://www.barrons.com/articles/exxon-mobil-stock-is-on-a-9-day-losing-streak-51580217946

2020-01-28 13:25:00Z
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