Replies to post #2392 on Exxon Mobil Corporation (XOM)

[Nebuchadnezzar]

That is a great question. I would venture to guess that XOM and CVX sold down so hard, a dividend cut wouldn't be terrible.

XOM from $70 to $30 and CVX from $117 to $53.... Probably priced in

Fascinating times

[fung_derf]

90% chance they cut it.

DJ Is ExxonMobil's Dividend in Trouble? -- Market Talk
Dow Jones News10:58 AM Eastern Daylight Time Mar 26, 2020

10:58 ET - ExxonMobil's dividend could be in jeopardy due to plummeting pricing differentials between the price of crude oil and refined products, or crack spreads, according to Heikkinen Energy Advisors. Crack spreads for the rest of the year will be half of what they were in 2019, Heikkinen estimates, meaning Exxon will get around 50% less profit margin from each barrel of crude it refines. That will translate in $2B in lost income for Exxon, according to Heikkinen. "If the cracks don't improve by late 2021, we think there is a high likelihood that XOM's current 10% dividend will be cut to prevent becoming over-levered," it says. Exxon gains 2.7% to $38.29. ([e-mail]; @cmatthews9)

(END) Dow Jones Newswires