This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Exxon Is Good but Halliburton Is Better Value

NEW YORK ( TheStreet) -- When it comes to oil and gas, there aren't many rivals that can go toe-to-toe with Exxon Mobil (XOM - Get Report). I will concede that as enamored as I have become with Halliburton (HAL - Get Report), even it can't compete with the successful track record of Exxon Mobil, the world's second largest company behind only Apple (AAPL). Yet through no fault of its own, the company often gets overlooked when discussing some of the top run operations on Wall Street and seemingly punished for what appears to be routine success -- something from which the company has become somewhat of a victim.

It goes without saying, that this is a tremendous problem to have. But while Exxon trades in-line with Halliburton from the standpoint of their respective multiples, the stock remains significantly discounted when compared to such names as Schlumberger (SLB). The concerns surrounding natural gas cannot be overstated, as with several of its peers and most notably Chesapeake Energy (CHK), Exxon has had to deal with adverse effects of not only slower production, but considerably weaker North American prices for natural gas -- an event that served to offset what was once perceived to be a benefit of higher oil process.

Leading into the company's first-quarter earnings report, I was eager to see if it was able to navigate through the roughs as well as rival Halliburton and thus, which of the two was the better investment. While Halliburton convinced that it was undervalued by at least 33%, it was Exxon's turn to remind Wall Street of why it deserves a bit more respect.

The quarter that was

The company reported first-quarter earnings of $9.45 billion or $2 per share -- representing a decrease of 11% from the same period of a year ago as upstream earnings declined 10% to $7.8 billion. As noted, this was attributable to declining production of both oil and natural gas, whereas in last year's quarter it reported $10.7 billion in net income or $2.14 per share. Analysts polled by Thompson Reuters had expected the company to bring in profits of $2.09 per share for the first quarter. Oil-equivalent production fell 5% to 4,553 oil equivalent barrels per day but higher oil prices helped boost prices, as did other income and higher refining activities.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
HAL $41.99 1.00%
XOM $83.23 1.00%
AAPL $126.08 -0.41%
FB $86.82 -0.10%
GOOG $522.48 0.12%

Markets

DOW 17,712.38 -45.53 -0.26%
S&P 500 2,071.49 -5.93 -0.29%
NASDAQ 4,991.2030 -21.92 -0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs