ExxonMobil reported a plunge in quarterly profit on Thursday, falling short of analyst expectations, as crude oil prices fell from year-ago levels. Phil Weiss, senior energy analyst at Argus Research Company, shared his analysis of the company’s earnings.
“Exxon’s been ramping up its spending on capital projects. Some of those projects are coming online and that’s falling through the bottomline and making those costs a little bit higher—and that’s why they missed,” Weiss told CNBC.
“They’re still making a good amount of money.”
Weiss has a $85 price target for the Dow company and said it’s still a “good place” for investors to put their money.
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“It’s a nice conservative way to profit in the energy sector,” he said.
Weiss said oil prices have gotten too high. While he expects some volatility along the way, costs will be “relatively stable” in the long run.
“We’ve gotten ahead of ourselves,” he said.
“In this quarter, we’ll average about $69 to $70 and next year about $68. So, relatively stable oil prices.”
ExxonMobil Competes With:
Royal Dutch Shell
Analyst’s family owns shares of ExxonMobil.