Shell, Occidental Petroleum And Exxon Mobil Rise In Monday Premarket: What's Going On?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 02 2025
0mins
Source: Benzinga
OPEC+ Production Increase: OPEC+ has decided to maintain an output increase of 411,000 barrels per day for July, leading to a significant rise in oil prices, with Brent crude futures up by 2.95% and U.S. West Texas Intermediate crude up by 3.49%.
Market Implications: The decision comes amid competitive tensions between major oil companies like Chevron and Exxon Mobil over valuable oil resources, indicating potential impacts on the broader energy market despite Kazakhstan's refusal to cut production.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 146.190
Low
114.00
Averages
132.17
High
158.00
Current: 146.190
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Slow Progress in Iran Nuclear Talks: Despite Vice President JD Vance stating that Iran agreed to meet again in Geneva, Iran has not acknowledged Trump's core conditions, particularly zero uranium enrichment on its soil, complicating the negotiation landscape further.
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- Dividend Growth: Chevron's board announced a 4% increase in its quarterly dividend to $1.78 per share, marking 39 consecutive years of dividend increases, with a current yield of 3.9%, significantly higher than the S&P 500's 1.2%, demonstrating its commitment to shareholder returns.
- ExxonMobil's Cash Flow: ExxonMobil produced $23.6 billion in free cash flow last year, and while its adjusted earnings per share for 2025 are projected to decline to $6.99, its strong cash flow provides ample coverage for $17.2 billion in dividend payments, showcasing resilience in a volatile market.
- Dividend Policy: ExxonMobil's board raised the December dividend by 4% to $1.03 per share, achieving 43 consecutive years of dividend increases, with a current yield of 2.8%, reflecting its focus on long-term shareholder value, although lower than Chevron's yield.
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- Military Action Inclination: Senator Lindsey Graham highlighted that the U.S. is close to eliminating the largest state sponsor of terrorism in the region, suggesting a potential increase in military actions aligned with Israel's stance on Iran.
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- Energy Market Impact: Iran's central role in global oil supply means a successful deal could lower Brent crude prices by $5, while a collapse in talks could raise prices by $5 to $10, exacerbating inflationary pressures.
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- Military Base Lease Controversy: Trump warned UK Prime Minister Keir Starmer that leasing the Diego Garcia military base is a “big mistake,” indicating that it may be necessary for U.S. strikes on Iran if nuclear talks fail, highlighting his deep concern for U.S. military strategy.
- Slow Progress in Iran Nuclear Talks: Despite Vice President JD Vance stating that Iran agreed to meet again in Geneva, Iran has not acknowledged Trump's core conditions, particularly zero uranium enrichment on its soil, complicating the negotiation landscape further.
- Military Readiness Status: Earlier satellite imagery confirmed that at least six B-2 Spirit bombers, constituting 30% of the U.S. stealth bomber fleet, were staged at Diego Garcia, preparing for potential military action, suggesting that Trump's comments may be paving the way for future military options.
- Significant Market Reaction: According to Polymarket, the odds of a U.S./Israel strike on Iran by February 28 surged from 24% to 38%, reflecting the market's heightened sensitivity to Trump's warning and investors' urgency regarding potential military actions.
See More
Energy Stocks Shine with APA and Exxon Leading Gains
- Energy Sector Performance: Energy stocks rose 1.4% on Wednesday, with APA Corp gaining 5.3% and Exxon Mobil Corp increasing by 3.0%, indicating strong sector performance that may attract more investor interest.
- ETF Performance: The Energy Select Sector SPDR ETF (XLE), which tracks the energy sector, was up 1.8% on the day and 22.32% year-to-date, reflecting optimistic market sentiment towards energy stocks and potentially driving more capital into the ETF.
- Year-to-Date Gains: APA Corp has risen 18.73% year-to-date, while Exxon Mobil Corp has increased by 25.94%, suggesting both companies are performing exceptionally well in the current market environment, which may enhance their appeal among investors.
- Industrial Sector Dynamics: The industrial sector rose 1.2%, with Global Payments Inc up 16.4% and Moody's Corp up 5.7%, indicating signs of recovery in industrial stocks that may provide new investment opportunities for investors.
See More
EXXON GUYANA PRESIDENT ANNOUNCES INTENT TO CONNECT LONGTAIL PROJECT GAS TO FUTURE BERBICE PIPELINE
- Gas Supply Plans: The President of Guyana has announced plans for gas supply from the Longtail project.
- Future Infrastructure: This gas supply is intended to be integrated into the future Berbice pipeline infrastructure.
See More
Investment Analysis of Chevron and ExxonMobil
- Chevron's Earnings Decline: Chevron's adjusted earnings per share for 2025 fell by 27.5% to $7.29, primarily impacted by weaker commodity prices, although Brent crude has seen a rebound since the end of last year, which could affect future profitability.
- Acquisition Expands Reserves: Chevron's $53 billion acquisition of Hess enhances its geographic reserves in Guyana and the U.S. Bakken, expected to achieve greater economies of scale and efficiencies, thereby strengthening the company's long-term competitive position.
- Free Cash Flow Performance: Chevron generated $16.6 billion in free cash flow last year, sufficient to cover $12.8 billion in dividends, demonstrating strong cash flow management and the ability to continue supporting shareholder returns in the future.
- ExxonMobil's Steady Performance: ExxonMobil's adjusted earnings per share for 2025 stood at $6.99, down from the previous year, yet its $23.6 billion in free cash flow provides ample cushion for paying $17.2 billion in dividends, showcasing its stability in a volatile market.
See More
Investment Analysis of Chevron and ExxonMobil
- Cash Flow Performance: Chevron generated $16.6 billion in free cash flow last year, and despite a projected 27.5% decline in adjusted earnings per share to $7.29 for 2025, the acquisition of Hess is expected to further enhance cash flow, bolstering its financial stability.
- Dividend Growth: Chevron's board announced a 4% increase in its quarterly dividend to $1.78 per share, marking 39 consecutive years of dividend increases, with a current yield of 3.9%, significantly higher than the S&P 500's 1.2%, demonstrating its commitment to shareholder returns.
- ExxonMobil's Cash Flow: ExxonMobil produced $23.6 billion in free cash flow last year, and while its adjusted earnings per share for 2025 are projected to decline to $6.99, its strong cash flow provides ample coverage for $17.2 billion in dividend payments, showcasing resilience in a volatile market.
- Dividend Policy: ExxonMobil's board raised the December dividend by 4% to $1.03 per share, achieving 43 consecutive years of dividend increases, with a current yield of 2.8%, reflecting its focus on long-term shareholder value, although lower than Chevron's yield.
See More
Mixed Verdict on Iran Nuclear Talks by VP JD Vance
- Negotiation Progress: VP JD Vance noted that while Iran agreed to meet again, it has not acknowledged Trump's red lines, indicating the complexity of negotiations that could impact future diplomatic efforts.
- Military Action Inclination: Senator Lindsey Graham highlighted that the U.S. is close to eliminating the largest state sponsor of terrorism in the region, suggesting a potential increase in military actions aligned with Israel's stance on Iran.
- Market Reaction: Polymarket data shows a rise to 74% in the probability of U.S. military strikes on Iran by December, reflecting market concerns over escalating tensions that could influence oil price fluctuations.
- Energy Market Impact: Iran's central role in global oil supply means a successful deal could lower Brent crude prices by $5, while a collapse in talks could raise prices by $5 to $10, exacerbating inflationary pressures.
See More
