Stuart, are you on the same page on that? So as of a couple of weeks ago, I told my newsletter subscribers that I sounded the all clear and told them to get into some of these big names, including Exxon and Chevron because I think they're cheap compared on where we think oil is going to go over the next quarter or two. So for us, we've said to people, you can no longer manage investments in energy stocks based upon the macros that are going feeding into the market like the Federal Reserve and the dollar drop and all of that but have to focus on the fundamentals of oil and the oil's price, and we think that they're pretty darn good and are getting better all the time. And that has been the difference between investing in oil companies for the last two, three, four years and the seven or eight years before that when they were at the bottom of the heap in terms of sector performance. And so with that in mind, I mean, the appetite for investors as you were getting into there- and Dan, I'll pivot this one back to you- for investors that are kind of looking at a year out time horizon, just to try and figure out where production will continue to move or where even the shift towards other renewable energy alternatives may move as well, are there key metrics from these companies along that pathway that they should be paying closest attention to?ĭAN DICKER: Well, look, I think Stuart is dead accurate on this that it's the discipline of the oil companies to not be brought in by the siren song of high oil prices and, in fact, targeted those projects that have the greatest return and not delved into those that have lesser returns despite the fact that oil prices go up and go down. But I do think that until investors start to argue for more production growth and growth in general, you're likely to see both companies continue on this path. Obviously lower this year, year over year because you can't control where oil and natural gas prices go. They've done a great job at maintaining cash from operations. They're really focused on cash from operations. Production is really an outcome.Īfter, they've managed through their businesses and decided what projects hit their hurdle rates. And I think they're really not focusing on production as a goal. It's a strategy that has worked quite well to keep investors interested in the names.
Both of these companies have been pretty committed to dividends and buybacks for several years now. When you kind of think about the results that we saw paired with the difference in the market from last year to this time to now this year this time, should this at all be surprising?
Great to have you both here with us this morning to break down the results from these two majors in this sector here.ĭan, I'll start with you. Joining us now, we've got Dan Dicker who is the Energy Word founder and Stuart Glickman, CFRA energy equity analyst. After both energy giants reported results, Exxon saw a 56% dip in profit, Chevron's profit fell 48% as both companies took a hit from the drop in energy prices. We're watching shares of Exxon and Chevron today. Stewart Glickman, CFRA Energy Equity Analyst, highlights that "you can't control where oil and natural gas prices go," and that both companies are focusing on what they can control. According to Dan Dicker, Founder of The Energy Word, "there's nothing to look at for investors here," emphasizing that the revenue declines reflect the movement in oil prices rather than the companies' actions. Energy giants Exxon Mobil and Chevron both saw their earnings suffer from the drop in oil prices.
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