Acerca de XOM
"When a company is showing double digit losses, I don’t throw good money after bad by averaging down until I see a catalyst indicating price may start heading higher.
I have been watching XOM for such a catalyst. A rising rig count is one of the catalysts I was looking for and that is happening, but I did say I was going to wait on the earnings report for further information that would clarify a buy signal. XOM announced earnings today and no such signal appeared.
In addressing the dividend, management said they are committed to it, however they acknowledged that “all bets are off” should current operating conditions persist through next year.
If the energy demand recovery appears likely to be pushed out beyond 2021, then Exxon will probably be forced to cut its dividend to protect its balance sheet, perhaps by the middle of next year.
Management said their plan has some “contingency and flexibility” but made it clear that taking on additional debt is not part of the equation.
In the past, management has been willing to take on debt to cover the dividend but they are clearly stating they don’t wish to do that at this time. Therefore, with management signalling the possibility of a cut with his words of “all bets are off” if certain conditions aren’t met, I will simply hold for now and wait to add additional shares."