IEEFA Research

IEEFA Exxon: Telltale Crossover in Late 2014 Marks Where a Major Oil Stock Began to Go South

A Decoupling From the Larger Stock Market 2 Years Ago Portends a Future in Which the World’s Biggest Oil Company Will Be Smaller and Will Not Pay Out as Much in Shareholder Distributions

The world is moving in fits and starts but with gathering momentum toward a more diversified, low-carbon energy mix. The evidence is all around us. One exhibit, of many, is in the report we published this week—“Red Flags on Exxon: A Note to Institutional Investors”—which includes the chart here: ExxonMobil Financial Performance, 2006 – 2015 […]

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IEEFA Report: Red Flags on ExxonMobil: Core Financials Show a Company in Decline

Potentially Irreversible Slide; Falling Revenues, Rising Debt, Shrinking Capex, Weak Cash Balances Add to Growing Reputational Risk Tied to Climate-Change Controversy; ; Institutional Investors Owe Their Shareholders a Fiduciary Review

CLEVELAND, Oct. 26, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis (IEEFA) published a report today that indicates deep financial weaknesses at ExxonMobil (XOM) and suggests the company is in potentially irreversible decline. The report—“Red Flags on ExxonMobil (XOM)”—by IEEFA Director of Finance Tom Sanzillo, cites key metrics that include a 45 […]

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Report: ‘A Constellation of Risks’: How Public Accountability Is Slowing Tar Sands Development

Material Risks: How public accountability is slowing tar sands development (pdf) By: Tom Sanzillo (IEEFA), Lorne Stockman (Oil Change International), Deborah Rogers (Energy Policy Forum), Hannah McKinnon (Oil Change International), Elizabeth Bast (Oil Change International), and Steve Kretzmann (Oil Change International)

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Briefing note: Fossil fuels, energy transition, and risk

Briefing note: Fossil fuels, energy transition, and risk (pdf) By Tim Buckley,  Director of Energy Resource Studies, Australasia, IEEFA

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More News and Commentary

IEEFA Exxon: A Company in Need of More Accountability at the Top

As Directors Ponder CEO's Successor, Will They Seek a Much-Needed Change in Meeting Performance Standards?

ExxonMobil has been reducing its cash returns to investors over the past few years, a trend we highlighted in our report last week, “Red Flags on Exxon Mobil,” but has still paid out far more to investors than standard financial metrics would support.  Indeed, all indicators, including the company’s recent announcement that it will likely de-book […]

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IEEFA Exxon: Why the Abrupt Revision on Reserves?

Oil Giant Owes Investors Answers, and Much More Transparency

The headline news out of ExxonMobil’s third-quarter earnings call last week bears repeating: If low prices persist during the fourth quarter of 2016 then as much as 4.6 billion barrels of the company’s oil reserves in Canada and North America would no longer qualify as proven reserves.   This makes ExxonMobil the latest in a […]

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Exxon Widens Its Fight Against Climate-Change Disclosures

David Hasemyer for InsideClimate News: Attorneys for ExxonMobil have revealed a plan to ratchet up pressure on state attorneys general who have vowed to hold Exxon and fossil fuel companies accountable for their conduct on climate change. Exxon attorney Theodore Wells told a New York judge that the company is working on deposing at least […]

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IEEFA Exxon: The Problems Are More Than Cyclical

All Signs Point to Low Oil Prices Going Forward

Some stock analysts say the problems afflicting ExxonMobil are cyclical, which would mean that a spike or increase in oil prices are on the horizon and that the company will move back into the black across the board when that happens.  But the fact is that a rebound in oil prices is unlikely. Independent assessments—from […]

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Exxon’s Lowering of Its Reserve Estimates Is an Acknowledgement of Its Financial Distress

Nicholas Kuznetz for InsideClimate News: Exxon said that the average price of oil this year has been so low that 3.6 billion barrels of oil at its Kearl tar sands field, as well as 1 billion barrels of oil and gas equivalent elsewhere in North America, may no longer be claimed under accounting formulas imposed […]

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On the Blogs: ‘Is the Era of Oil Mega Projects Over?’

Irina Slav for oilprice.com: BP said earlier this year that its capex for 2016 would come in at less than the US$17 billion it had initially planned for the year. Shell boasted a 20-percent cut in its capex for 2015 from 2014, to US$29 billion. Exxon in March said it would be reducing its capital […]

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On the Blogs: A Dinosaur ‘Slowly Dying Before Our Eyes’

Andy Rowell for Oil Change International: For years people have been warning that Big Oil’s business model was fundamentally flawed and was not only putting the climate at risk, but millions of dollars of shareholders’ money. For years the industry’s critics warned the industry was ignoring the risks of climate change and was just caring […]

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Exxon: Profits Down, Reserves in Question

Bradley Olson and Anne Steele for the Wall Street Journal: Exxon Mobil Corp., which is under state and federal investigation for how it accounts for the value of its oil and gas wells, said Friday that it may be forced to recognize that as much as 4.6 billion barrels of its reserves are no longer […]

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‘Exxon Enters No Man’s Land’

Matthew Phillips for Bloomberg News: With the Paris agreement on climate ratified in December 2015, investors are increasingly confident that governments will act to reduce carbon emissions. That could put billions at risk for oil companies’ biggest shareholders—pension funds, institutional investors, and large asset managers—as the industry faces its worst downturn in a generation, with […]

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A Certain Oil Company’s ‘Death Spiral’

Tom O’Connor for International Business Times: Oil giant ExxonMobil may be in a death spiral, according to a new analysis issued Wednesday that detailed the company’s rise in long-term debt and decline in cash balance, net income and overall revenue. The Institute for Energy Economics and Financial Analysis (IEEFA), an energy-focused research group based in […]

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