⁍ Exxon is expected to report a record-setting third straight quarterly loss on Friday.
⁍ Shares are at a two-decade low, down 55% this year.
⁍ The company’s stock was removed from the storied Dow Jones Industrial Average after nearly a century of membership.
– Exxon Mobil is expected to report a record-setting quarterly loss Friday as the COVID-19 pandemic crushes demand globally for crude oil and fuel. Shares are at a two-decade low, down 55% this year. The company’s stock was removed from the storied Dow Jones Industrial Average after nearly a century of membership, and it is facing questions about whether it can maintain its dividend. Exxon cut employees and project spending, but has stuck by plans to continue paying a dividend that costs nearly $15 billion per year. Reuters reports the oil major is not even the largest energy name, having been surpassed by rivals and even a renewable company, as it tries to maintain its hefty dividend. Cutting the dividend would “upset the apple cart pretty significantly” with many investors, says Mark Stoeckle, senior portfolio manager at Adams Funds, which holds about $46 million in Exxon shares. The company’s cash balance could be depleted if US oil CLc1 remains below $45 a barrel due to its debt. “The last thing Exxon should be doing is putting itself in a position where it is forced to sell assets purely for the purpose of finding extra cash to pay the dividend,” says Raymond James analyst Pavel Molchanov.
Source: https://www.reuters.com/article/exxon-mobil-valuation/graphic-exxon-mobils-fading-star-no-longer-the-biggest-us-energy-company-idUSL1N2HJ2XI