ExxonMobil

IEEFA Research

IEEFA Investor Memo ExxonMobil (XOM): Company Is an ‘Outlier’ in How It Reports Write-offs on Canadian Oil Sands Assets

Loss Accounting ‘Largely Overlooked by Industry Analysts;’ Full Transparency Could Affect Balance Sheet by $22 Billion

April 17, 2017  (IEEFA.org) – The Institute for Energy Economics and Financial Analysis (IEEFA) today published an investor memo questioning whether ExxonMobil has appropriately accounted for its recent write-off of billions of barrels of Canadian oil sands assets. In “ExxonMobil Investment Note,” IEEFA outlines how ExxonMobil remains the exception in the oil industry in its […]

April 17, 2017 Read More →

IEEFA Exxon: Telltale Crossover in Late 2014 Marks Where a Major Oil Stock Began to Go South

A Decoupling From the Larger Stock Market 2 Years Ago Portends a Future in Which the World’s Biggest Oil Company Will Be Smaller and Will Not Pay Out as Much in Shareholder Distributions

The world is moving in fits and starts but with gathering momentum toward a more diversified, low-carbon energy mix. The evidence is all around us. One exhibit, of many, is in the report we published this week—“Red Flags on Exxon: A Note to Institutional Investors”—which includes the chart here: ExxonMobil Financial Performance, 2006 – 2015 […]

October 27, 2016 Read More →
IEEFA Report: Red Flags on ExxonMobil: Core Financials Show a Company in Decline

IEEFA Report: Red Flags on ExxonMobil: Core Financials Show a Company in Decline

Potentially Irreversible Slide; Falling Revenues, Rising Debt, Shrinking Capex, Weak Cash Balances Add to Growing Reputational Risk Tied to Climate-Change Controversy; ; Institutional Investors Owe Their Shareholders a Fiduciary Review

CLEVELAND, Oct. 26, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis (IEEFA) published a report today that indicates deep financial weaknesses at ExxonMobil (XOM) and suggests the company is in potentially irreversible decline. The report—“Red Flags on ExxonMobil (XOM)”—by IEEFA Director of Finance Tom Sanzillo, cites key metrics that include a 45 […]

October 26, 2016 Read More →
Report: ‘A Constellation of Risks’: How Public Accountability Is Slowing Tar Sands Development

Report: ‘A Constellation of Risks’: How Public Accountability Is Slowing Tar Sands Development

Material Risks: How public accountability is slowing tar sands development (pdf) By: Tom Sanzillo (IEEFA), Lorne Stockman (Oil Change International), Deborah Rogers (Energy Policy Forum), Hannah McKinnon (Oil Change International), Elizabeth Bast (Oil Change International), and Steve Kretzmann (Oil Change International)

October 29, 2014 Read More →
Briefing note: Fossil fuels, energy transition, and risk

Briefing note: Fossil fuels, energy transition, and risk

Briefing note: Fossil fuels, energy transition, and risk (pdf) By Tim Buckley,  Director of Energy Resource Studies, Australasia, IEEFA

April 18, 2014 Read More →

More News and Commentary

Investor-Driven Climate-Risk Transparency Is Taking Hold

S&P Global Market Intelligence: Investors pushing companies to analyze and disclose their climate risks said they believe that those moves have set up a dynamic that will lead to changes in corporate operations. Big investors such as BlackRock Inc. in recent years have joined the effort — through shareholder resolutions, public letters and behind-the-scenes conversations […]

February 8, 2018 Read More →
and

IEEFA Update: Red Flags Around ExxonMobil’s Q4 and 2017 Earnings

Oil Prices Rise … and Profits Stumble

ExxonMobil’s reporting on Q4 and FY 2017 earnings last week comes in a year when per-barrel oil prices for the company rose by 28%, as financial performance fell short of analysts’ expectations.  (While average West Texas Intermediate prices rose 19% in 2017, Exxon’s own “annual realization” around crude-oil data indicate a 28% year-over-year increase. More […]

and February 6, 2018 Read More →

Shareholders Seek More Detail in Exxon’s Acknowledgement of Climate-Policy Risk

Reuters: Exxon Mobil Corp said on Friday that it expects global oil demand to drop sharply by 2040 if regulations aimed at limiting the impact of greenhouse gas emissions on climate are fully implemented. Under this scenario, Exxon projected world oil consumption will drop 0.4 percent annually to 2040 to about 78 million barrels per […]

February 5, 2018 Read More →

Exxon Capitulates to Investors Who Want More Climate-Risk Exposure

Fortune: ExxonMobil said it would publish new details about how climate change could affect its business, in a move aimed at appeasing critics and forestalling another proxy fight next year. Until now, it had opposed such a move, in contrast to other western oil and gas majors such as Royal Dutch Shell, BP and Total. […]

December 12, 2017 Read More →

IEEFA Op-Ed: ‘Pension Funds, Sell Your Gas and Oil Stock’

Former Blue-Chip Investments Bear a Greater Resemblance Now to Speculative Holdings

Last month, Norway’s $1 trillion pension fund announced plans to drop oil and gas stocks from its core benchmark stock portfolio. The move was of note because it served as an important acknowledgement by a major institutional investor that such holdings have lost their status as mainstream, blue-chip investments and are now considered speculative. It […]

December 4, 2017 Read More →

Big Oil, ‘Unloved and On Sale’

Sydney Morning Herald: Big Oil is under pressure, unloved and on sale. Energy giants from Exxon Mobil to Royal Dutch Shell are struggling back to their feet after a three-year oil slump, while also fighting to prove they can survive for decades to come amid an accelerating shift to clean energy. So getting dumped by […]

November 17, 2017 Read More →

More Climate Risk to Oil Majors in 2 New Lawsuits Reminiscent of Tobacco Litigation

Reuters: California cities San Francisco and Oakland filed separate lawsuits against five oil companies on Wednesday seeking billions of dollars to protect against rising sea levels they blamed on climate change, according to public documents. The lawsuits, filed in state courts in San Francisco and Alameda Counties, alleged Chevron Corp, ConocoPhillips, Exxon Mobil Corp, BP […]

September 21, 2017 Read More →

Harvard Study Concludes Exxon Misled Investors on Climate Risk

InsideClimate News: A comprehensive, peer-reviewed academic study of ExxonMobil’s internal deliberations, scientific research and public rhetoric over the decades has confirmed empirically that the oil giant misled the public about what it knew about climate change and the risks posed by fossil fuel emissions, the authors said on Tuesday. The paper confirms the findings of […]

August 23, 2017 Read More →

Oil Majors’ Shareholder Dividends Are at Risk, Exxon’s Included

Wall Street Journal: Major oil companies seem to have moved through the stages of grief about low prices, finally arriving at acceptance. During the latest round of sector earnings delivered in recent days, Royal Dutch Shell ’s RDS.B 0.22% boss Ben van Beurden even said oil could be “lower forever”: BP said Tuesday it is […]

August 2, 2017 Read More →

Investors Grow Wary of Big Oil

Wall Street Journal: Three years into an oil-price slump, investors want the world’s biggest oil companies to do something they have historically struggled with: Maintain some financial discipline. The companies are under pressure to show they are continuing to move on from budget-busting projects once common in the industry, as they head into second-quarter financial […]

July 26, 2017 Read More →