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Earnings Previews: Chevron, Exxon Mobil, NextEra Energy

It also is unlikely that either Exxon or Chevron will accede to President Biden’s request for more production. While it may be convenient to call that simple greed, oil producers have to keep an eye on future demand, which is threatened by the increasingly rapid adoption of electric vehicles. Will demand come back to absorb new production or will that just be billions lost to demand destruction? Nobody knows.

Of 29 analysts covering the stock, 14 rate the shares at Hold, eight have a Strong Buy rating and six rate the shares at Buy. At a price of around $107.00 a share, the upside potential based on a median price target of $110.00 is 2.8%. At the high target of $134.00, the upside potential is 25.2%.

Third-quarter revenue is forecast at $102.96 billion, down 11% sequentially but 39.5% higher year over year. Adjusted EPS are pegged at $3.80, down 8.1% sequentially and up 140.5% year over year. For the full 2022 fiscal year, current estimates call for EPS of $13.04, up 142.3%, on sales of $415.4 billion, up 45.3%.

Exxon shares trade at about 8.2 times expected 2022 EPS, 10.1 times estimated 2023 earnings of $10.67 and 11.8 times estimated 2024 earnings of $9.14 per share. The stock’s 52-week range is $57.96 to $107.68, and Exxon pays an annual dividend of $3.52 (yield of 3.32%). Total shareholder return for the past 12 months was 70.5%.

NextEra Energy

Shares of regulated electricity company NextEra Energy Inc. (NYSE: NEE) have declined by nearly 10% over the past 12 months. The Florida-based utility’s master limited partnership, NextEra Energy Partners, boosted its annual dividend by about 15% on Monday, in line with dividend increases over the past 3 years. NextEra owns about 45% of the MLP. Since mid-September, the share price has fallen by nearly 16.5% following a $2 billion convertible debt offering the company plans to use to expand its green generation capabilities. NextEra is already the world’s largest producer of electricity using solar and wind energy.

Of the 20 ratings on NextEra stock, 16 are Buy or Strong Buy. The other four analysts rate the shares at Hold. At a price of around $76.00 per share, the upside potential based on a median price target of $91.95 is about 21%. At the high price target of $102.80, the implied gain is 35.3%.


Third-quarter revenue is forecast to come in at $5.77 billion, up 11.4% sequentially and by 32.0% year over year. Adjusted EPS are forecast at $0.80, down about 0.7% sequentially but up 6.7% year over year. For the full 2022 fiscal year, current estimates call for EPS of $2.88, up 12.8%, on sales of $20.87 billion, up 22.3%.

NextEra shares trade at about 26.4 times expected 2022 EPS, 24.6 times estimated 2023 earnings of $3.09 and 22.6 times estimated 2024 earnings of $3.37 per share. The stock’s 52-week range is $67.22 to $93.73, and NextEra pays an annual dividend of $1.70 (yield of 2.37%). Total shareholder return over the past 12 months was negative 9.2%.

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