Oppenheimer: Exxon Mobil Needs $85 Crude Oil
Exxon Mobil Corporation (NYSE: XOM) needs $85 crude oil to avoid a $9 billion shortfall in cash flow this year and next, according to a new report from Oppenheimer. Since the oil price accelerated six months ago, Exxon has collapsed 11.5 percent to $87.40.
While Oppenheimer doesn't go as far as to suggest that Exxon's capital expenditures, dividend or share repurchases are in danger, the analysts point to the fact that the shortfall will have to come from "additional borrowing and proceeds from asset sales." Oppenheimer expects Exxon to generate earnings of $14.7 billion this year and $19.3 billion next.
Shares of Exxon recently traded at $87.51, down 0.6 percent.
Latest Ratings for XOM
|Jan 2017||Wells Fargo||Downgrades||Outperform||Market Perform|
|Dec 2016||BMO Capital||Initiates Coverage On||Market Perform|
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