
Here's Why Exxon (XOM) Stock Is Sliding Today
NEW YORK (TheStreet) -- Shares of Exxon Mobil (XOM) - Get Report are retreating 0.28% to $93.48 in midday trading on Friday as it has hit a standstill with BP regarding the terms of an oil production deal with Azerbaijan, Reuters reports.
BP has tentatively agreed to terms with the Azeri government on extending the 30-year contract, but Exxon is waiting for a better deal, sources told Reuters. Talks have consequently stalled over the project, which could produce another $100 billion of oil at current prices.
Exxon receives about 1% of its hydrocarbon production through its stake in the ACG consortium.
The companies have eight years left in their current contract, but oil and gas players typically try to renew long-term production deals as early as possible, according to Reuters.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Exxon's strengths such as its reasonable valuation levels, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, poor profit margins and weak operating cash flow.
You can view the full analysis from the report here: XOM
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.










