Exxon knows how to under promise and over deliver, to the delight of investors. They trounced analysts estimates by almost 10%. The stock is up sharply today and has outperformed CVX during the past couple years.
At Exxon if you fail to deliver you are sacked in pretty short order. Excuses are not tolerated.
1tmw: here's a clue for you:
XOM ytd return: 32.10%
CVX ytd return: 14.86%
source: ytdreturn.com
1tmw: it's YOU who needs education.
have a nice day.
Write-offs are important. Getting capex off the boox increases our ROCE. We are chasing ROCE because Exxon convinced the market it was important 20 years ago when they were leading it. Now they are convincing the market that earnings and cash flow are important.
Chevron has has the biggest financial write-offs in industry (many billions) due to bad investments in GOM appraisals, Chad, Brazil and Venezuela.
Wirth believes "write-offs" are a viable financial instrument to get stock price up. Wirth has got to GO!
Agree every one look smart in this industry when the price of oil is rising. Chevron is up 200%, and we started from a higher point than OXY who was being penalized for bad deals with Anadarko and Berkshire Hathaway.
That is because exxon has been so bad that the investment community has no faith in them. If you invest in XOM in 2005 you are just breaking even. It goes to show that 88 dollar oil covers alot of mistakes (short term). Just another FYI, OXY is up 300+% in past 2 years.