Weekend Update #165
Thank you for your continued support and engagement. Each week, we're sharing what companies we're researching and the what, the who and the how that we think makes the companies interesting and unique. This roundup is brought to you weekly by a group of interns, creative minds, artists and investors who believe that through best in class investing along with the democratization of financial education we can do great things together. Enjoy, Explore and Share.
Earnings season continued in full force as the S&P 500 hit its fifth straight week of gains to finish above 5,000 for the first time ever, despite analysts seeing “frothy” valuations across the equity market. The Dow Jones Industrial Average also notched a new record, closing at 38,726 on Thursday.
Economic data continues to support a soft-landing scenario, as revised CPI showed prices rose 0.2% in December instead of 0.3% as reported last month, and initial and continuing jobless claims ticked down from the prior week, still hovering around 2019 levels. Still, Fed governors indicate they are in no rush to cut rates and support Chair Powell’s view that we’ll still need to see multiple months of inflation data before easing policy. With January’s CPI and PPI data set to report next week, investors will have a better idea of what direction the Fed might be headed. Currently, traders have priced in a 54% probability of a rate cut by May, increasing to 81% by June.
On the equities front, Disney beat fiscal first-quarter earnings estimates, and implemented a 45% dividend increase and additional share buybacks, sending the stock up 12% for its best daily gain since 2020. New York Community Bank saw its shares drop another 23% on Wednesday after Moody’s downgraded its credit rating two notches to junk. Arm Holdings beat earnings estimates and raised forecasts, with shares surging over 47%. Snap Inc. provided an adjusted EBITDA profitability outlook for Q1 2024 that fell short of investor expectations, sending the stock down 34%. Chipotle topped analyst expectations, outperforming industry trends causing the stock to pop 7%.
Next week, we’ll get key earnings from Shopify, Coca-Cola, Airbnb, Robinhood, Instacart and Lyft on Tuesday; Kraft-Heinz and Sony on Wednesday; Crocs, John Deere, Roku and Coinbase on Thursday.
Weekly Index Performance
S&P 500 5,026 +1.37%
Dow Jones 38,671 +0.04%
Nasdaq 15,990 +2.31%
Key Economic Readings Next Week
Tuesday — NFIB Small Business Optimism, Consumer Price Index, Real Average Earnings
Wednesday — MBA Mortgage Applications
Thursday — Jobless Claims, Empire Manufacturing, Retail Sales
Friday — Housing Starts, Producer Price Index, Univ. of Michigan Sentiment
Thank you Blue Room Analyst NICK PEART
Ryan Wallace
Good afternoon, and thank you for joining PayPal's Fourth Quarter 2023 Earnings Conference Call. Joining me today is Alex Chriss, our President and CEO; and Jamie Miller, CFO.
We're providing a slide presentation to accompany our commentary. This conference call is also being webcast. Both the presentation and call are available on our Investor Relations website. In discussing our company's performance, we will refer to some non-GAAP measures. You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in the presentation accompanying this conference call.
Our remarks today will include forward-looking statements that are based on our current expectations, forecasts and assumptions and involve risks and uncertainties. Our actual results may differ materially from these statements. You can find more information about risks, uncertainties and other factors that could affect our results in our most recent annual report on Form 10-K and quarterly report on Form 10-Q filed with the SEC and available on our Investor Relations website.
All information in this presentation is as of today's date, we expressly disclaim any obligation to update this information. And with that, let me turn the call over to Alex.
Alex Chriss — President and CEO
Thank you, Ryan, and thank you to everyone for joining us this afternoon. It's been a productive first four months. I'm pleased with what we've been able to accomplish in such a short period of time while delivering the solid financial results we will discuss today. More importantly, I'm excited about the foundation we're setting and the velocity at which we're executing as we enter 2024.
Today, I'd like to walk you through the changes we've made to the structure of our company, including several key additions to our leadership team, give a clear road map for how we will be executing going forward, and share our strategic priorities for 2024. Jamie will take you through the fourth quarter and full year results in greater detail, but the headline is that we delivered a solid quarter during the most important shopping season for our customers.
Executive Summary
Pinterest shares fell -9.46% on the trading day after Pinterest’s revenue guidance of $698 million came in below consensus revenue estimates of $700 million and suggests a -29% decline QoQ. This comes a week after Facebook’s META projected its first quarter to comp -10% QoQ, in line with seasonality. In the quarter, Pinterest reported revenue of $981 million, which was at the low end of its prior guidance range and below consensus estimates for $990 million. Finally, the revenue miss contributed to lower than expected global ARPU, putting focus back on Pinterest’s low ex-North America user monetization.
In terms of business developments, Pinterest continues to focus on becoming a more shoppable platform to drive engagement as well as ROAS and clicks. This quarter, the company focused on highlighting its bottom-of-funnel growth, which Pinterest noted now accounts for two thirds of revenue. This increased activity at the lower end of the funnel is driven by investments in Pinterest’s mobile deep linking, shopping ads, API for conversions, and direct links offerings. That has ultimately driven better ROI for advertisers. At the top and middle of the funnel, Pinterest is investing in a number of AI tools to drive user engagement and bring forth more relevant content. Management noted that the increase in non-GAAP operating expense year-over-year was driven by investment increases in R&D, specifically around headcount for AI talent.
A bright spot in the earnings call was the addition of Google as a third party ad partner, which the company will book in addition to the existing 3P ad partnership with Amazon. We continue to view additional 3P ad activity as incrementally positive as this has the potential to fill any brand ad revenue holes that come with cyclicality. The Google campaign is specifically targeting international regions where monetization has been historically low.
Executive Summary
Vertex grew revenue 9.3% year-over-year to $2.52 billion, slightly beating consensus estimates of $2.51 billion primarily driven by stronger-than-expected TRIKAFTA sales of $2.33 billion. Adjusted EPS grew 12% year-over-year to $4.20, 11 cents higher than consensus. Vertex also announced positive data for its vanzacaftor triple combination, expected to be its next-generation cystic fibrosis drug, showing superiority over TRIKAFTA. With CASGEVY now improved in most regions and expected to ramp throughout the year, and two potential FDA filings for additional launches, VRTX shares are poised to gain throughout the year as it successfully diversifies its commercial products beyond cystic fibrosis, and as its R&D pipeline continues to progress.
Executive Summary
Snap Inc. posted an adjusted EBITDA profitability outlook for Q1 2024 that fell short of investor expectations, and after already having implemented a 15% headcount reduction in 2023 as well as stellar social media advertising results from its peer Meta Platforms, investors seemed to have lost faith in the business trajectory with shares falling back to $11.79 (-32.4%) following the results. Snap is taking further action to right-size its cost structure for profitability with another 10% headcount reduction this week of about 500 employees, and results lacked the excitement that an AI-fueled inflection in revenue seen at Meta inspired in the market. For some, the first decline in North American Daily Active Users since mid-2018 was enough to lose faith that Snapchat will ever be able to compete significantly in the social media advertising space going forward.
Management was a lot more upbeat about the outlook for a continuation of the reacceleration in revenue growth that they are seeing as well as increased leverage on infrastructure from 2023 investments. At the high end of Snap’s guidance, they are calling for a 15% YoY growth in total revenue, which would be the highest growth rate since Q1 2022. This is driven by the ad platform changes Snap has implemented throughout 2023, which drove a 90% YoY increase in purchase-related conversions for advertisers in Q4 2023, and the 7-0 Pixel optimization was able to drive 67% improvement in return on investment for those customers.
In the long term, Snap has a unique positioning proposition for users, being a safe and creative place to connect deeply with family and friends, which is clearly valued by users as seen by the strong trajectory of Snapchat+ subscription revenue at 7 million users in Q4 (+180% YoY), as well as the deepened user engagement with other parts of the Snapchat app such as 175% YoY growth in time spent watching Stories — on top of 10% YoY growth in total Daily Active Users.
Following the earnings call, Snap is still clearly in its turnaround phase as the company is just now starting to see deep work on ad platform improvements and user engagement innovations starting to turn the tide following iOS privacy changes and macro pressures. Snap turns its focus to five key priorities of 1. Continuing to improve ML ranking models 2. Increasing support for advertisers to fully utilize tools 3. Evolving the go-to-market operations to better support advertisers 4. Continuing to advance differentiated augmented reality offerings for users and advertisers 5. Accelerating the diversification of revenues through Snapchat+ growth.
Scott Pelley–60 Minutes
I'll start with this. Is inflation dead?
Chair Jerome H. Powell
I wouldn't go quite so far as that. What I can say is that inflation has come down really over the past year, and fairly sharply over the past six months. We're making good progress. The job is not done and we're very much committed to making sure that we fully restore price stability for the benefit of the public.
Scott Pelley–60 Minutes
But inflation has been falling steadily for 11 months.
Chair Jerome H. Powell
Right.
Scott Pelley–60 Minutes
You've avoided a recession. Why not cut the rates now?
Chair Jerome H. Powell
Well, we have a strong economy. Growth is going on at a solid pace. The labor market is strong: 3.7% unemployment. And inflation is coming down. With the economy strong like that, we feel like we can approach the question of when to begin to reduce interest rates carefully.
And, you know, we want to see more evidence that inflation is moving sustainably down to 2%. We have some confidence in that. Our confidence is rising. We just want some more confidence before we take that very important step of beginning to cut interest rates.
Scott Pelley–60 Minutes
What is it you're looking at?
Chair Jerome H. Powell
Basically, we want to see more good data. It's not that the data aren't good enough. It's that there's really six months of data. We just want to see more good data along those lines. It doesn't need to be better than what we've seen, or even as good. It just needs to be good. And so, we do expect to see that. And that's why almost every single person on the Federal Open Market Committee believes that it will be appropriate for us to reduce interest rates this year.
Executive Summary
Spotify shares are in a position to continue to climb through 2024 as the company continues to grow its user counts and implement measures that cut costs, drive efficiencies, and achieve savings to drive operating leverage and thus margin expansion.
In 2023, SPOT posted ~13% growth, with Q4 revenues of €3.67 billion representing an acceleration of year-over-growth to 16% from 11% the previous quarter, propelled by steady growth in total MAUs and premium subscribers—602 million and 236 million, respectively. Further, the company provided Q1 2024 guidance on various metrics that exceed Street expectations, including gross and operating margin expansion that has resulted from a growing higher-margin podcast business and the recent 17% workforce reduction. .
Executive Summary
On Thursday, February 7th, Arm stock closed at $113.89, up +48% from the previous close price and affording Arm Holdings a valuation of $117 billion.
The overall takeaway from the quarter is that AI compute is a megatrend that will create a windfall over the technology industry, and that companies with tangible connection to this megatrend will stand to benefit at a high level. In other words, the investors are likely to endure extreme valuations as they award the potential for AI growth with a premium. This is also bolstered by continued data center infrastructure spending by hyperscale & enterprise customers alike, who have begun to see meaningful contributions from AI on back-end processes (this includes companies like Meta, Pinterest, Uber, and Microsoft).
Key Differences in the Model versus Reported
While BLUE ROOM modeled flat sequential growth in units as the base case for the third quarter, Arm grew units by 600 billion. BLUE ROOM modeled total revenue/units shipped at $0.106 and the company reported $0.107, meaning that aside from unit sales, the per chip revenue estimates were in-line with actuals. GAAP operating margin was 16.3% versus BLUE ROOM’s expectation for 17.3%. On a per share basis, BLUE ROOM modeled GAAP EPS of 10c versus the actual of 8c, and on a non-GAAP basis, EPS was 29c versus our 21c estimate. Lastly, Arm’s guidance for the fourth quarter is $875 million versus our pre-earnings estimate for $781 million, while consensus forecast $779 million. On a full year basis, Arm’s revenue guidance of $3.180 billion is $158 million above our pre-earnings estimate of $3.022 billion and the consensus $3.025 billion.
General Takeaways
Investors are likely eager to capitalize on Arm reporting higher nascent market penetration (more units) in automotive and cloud servers, while also achieving 2x Armv8 royalties (higher ASP) with its Armv9 platform. Armv9 penetration as a percentage of total royalties increased to 15% from 10% in the third quarter.
The licensing revenue grew more than royalties in the quarter indicating the need for development related assistance by customers looking to leverage Armv9 for AI. This could be indicative of a longer-term trend, although QoQ changes in licensing figures tend to be volatile as a majority of the lifetime contract revenue is recognized in the period for which the license is awarded.
From a more critical perspective, Arm increased its full year sales outlook by only +5.30% and its full year EPS outlook by 16.2%. Non-GAAP EPS guidance for $1.22 also implies an EOY EPS multiple of 76x, highlighting the market’s despondency to traditionally stretched valuations. Management’s limited responses when asked about the potential for seasonality to impact next year’s 1H leads us to believe that there could be some slowdown in smartphone volume moving forward, although the Armv9 adoption rate (which we have to model as increasing) may offset this seasonality. Given the one quarter lag in royalties recorded versus Arm designs booked, there is still the potential for the company’s automotive and smartphone markets to dip slightly, as highlighted by several Arm-based customers in these segments. This is further supported by the mention of Arm IoT/embedded royalty revenue contribution coming in flat, a market that entered a correction about a quarter before automotive.
Joanna Park – Vice President, Investor Relations and Treasurer
Thanks and welcome to the California Resources and Aera Energy Merger Announcement Conference Call. Today's call will be led by our President and CEO, Francisco Leon. We also have other members of our executive team here today to take your specific questions, following our prepared remarks.
There are supplemental slides posted under the Investor Relations section of our website, crc.com. These slides highlight our compelling value we see behind today's combination. In addition, we have also provided information reconciling non-GAAP financial measures discussed to the most directly comparable GAAP financial measures on our website, as well as in today's release.
Today, we will be making some forward-looking statements based on current expectations. Actual results may differ due to factors described in today's press release and in our periodic SEC filings. During Q&A, please limit your time to one question and one follow-up. This will allow us to get through more -- to more of your questions today. Thanks and now I'll turn the call over to Francisco.
Francisco J. Leon – President and Chief Executive Officer
Good morning everyone, and thanks for joining us. We're incredibly excited about today's news and the tremendous value it unlocks. This transaction enhances our conventional energy business and provides cash flow to help expand our carbon management business and decarbonize California. The transaction truly benefits all of our stakeholders. This combination demonstrates the merits of consolidation and reinforces our belief that CRC is a different kind of energy company.
Over the next few minutes, I will highlight the key value drivers and how they position us to succeed on the road ahead. Many of you are likely familiar with Aera and its successful history in California over the last two plus decades. Aera was founded as a private joint venture by Exxon and Shell and is currently owned by IKAV, and Canada Pension Plan Investment, CPPIV. Aera operates high quality assets, including five of the largest oil fields in the state, and has been profitable throughout its 25 years of existence.
Here are four things to know about the deal. The assets are a great fit and – they're an exceptional fit with CRC. The deal is priced right. The combination creates critical scale in our operations making us a more durable business. It more than doubles our free cash flow, allowing us to return more cash to shareholders and provides meaningful opportunities to capture synergies.
Let me take a minute to expand on these four points. First, this deal fits and is priced right. The Aera assets are very complementary to our existing portfolio and are very accretive, 45% accretion to operating cash flow per share and 90% accretion to free cash flow per share. The combination will double our production and make us the largest native producer in the state. This is a great thing for California.
Let me explain, California needs oil production. In a recent report issued by the state, their experts acknowledged that California will need oil production through at least two more decades through 2045. We are working to rapidly decarbonize all sectors of the California economy, including the energy sector to provide cleaner, more affordable and lower carbon energy. There is no better company to do that than CRC. Our in-state production reduces reliance on more expensive, higher carbon foreign barrels and today's deal helps us build a material decarbonization business to benefit all stakeholders. As long as California needs oil, CRC will be here to provide it.
Eli Lilly & Co. posted another phenomenal quarter of Mounjaro growth at $2.206 billion (+690% YoY, +57% QoQ) and Zepbound’s launch at $176 million greatly surpassed Mounjaro’s first quarter sales at $16 million in Q2 2022. The better-than-expected ramp is due to positive leverage on price realization during the quarter, fueled by demand continuing to outpace supply, as well as a massive launch trajectory that prescription data tracking companies probably cannot keep up with. The combination lead to FY 2024 revenue guidance that surpass consensus estimates and a solid EPS range even while Lilly continues to step up OpEx investment significantly.
A key focus in addition to the continued ramp of supply for Mounjaro and Zepbound will be pending FDA approval of donanemab in Alzheimer’s Disease in Q1 2024, for Lilly to penetrate yet another large market area.
To guide Lilly’s growth into uncharted territory for a pharmaceutical company, CEO Dave Ricks has said they will continue to let research and development be the north star, to invest in innovation and continue discovery and development of life-changing therapies for patients. Lilly’s execution on ramping supply and continuing stellar data readouts on pipeline programs will be key to the company’s success in the coming year as doctors, patients, and investors have all come to recognize the massive potential of the company’s key growth products and late-stage pipeline.
Press Releases & Business Updates from 4Q 2023
Jan. 18, 2024 – Chevron Direct Investment Fund Ltd. (CDIF) has announced investment agreements into two Kazakhstani companies. After extensive work, CDIF made direct equity investments in 2023 of up to $41 million into Top Cleaning Kazakhstan, a managed service marketplace for the business and Orhun Med Ltd, a growing healthcare company in Kazakhstan. The objective of the CDIF is to make a significant positive contribution to the economic development of the Republic of Kazakhstan.
Dec. 14, 2023 – Chevron announced the company received a score of 100 on the Human Rights Campaign Foundation’s 2023-2024 Corporate Equality Index (CEI) for the 18th consecutive year.
Dec. 6, 2023 – Chevron announced an expected organic capital expenditure range of $15.5 to $16.5 billion for consolidated subsidiaries (capex) and an affiliate capital expenditure budget of approximately $3 billion for 2024. Upstream spending in 2024 is expected to be about $14 billion. Of this planned expenditure, two-thirds is allocated to the United States, including approximately $6.5 billion to develop Chevron’s US shale and tight portfolio, of which around $5 billion is planned for Permian Basin development. About 25 percent of US upstream capex is planned for projects in the Gulf of Mexico, including the Anchor project, which is expected to achieve first oil in 2024.
Oct. 30, 2023 – Cabinda Gulf Oil Company Ltd (CABGOC), a Chevron subsidiary in Angola, hosted in Luanda a signature of a Memorandum of Understanding (MOU) between Chevron New Energies, a Chevron U.S.A. Inc. division, and the Angola Government to explore potential low carbon business opportunities in Angola. Chevron and the Angola Government plan to evaluate various projects related to nature-based and technological carbon offsets, lower-carbon intensity biofuels and products such as hydrogen, carbon capture and storage, and the creation of a regional center of excellence to incentivize and attract lower carbon investments.
Executive Summary
Take-Two beat revenue estimates with $1.37 billion and modestly beat on net bookings with $1.37 billion in the quarter, although both metrics are down roughly 3% year-over-year due to a softer release slate. However, the company reduced its FY24 guidance with Q4 bookings estimated to be roughly $1.3 billion, below analysts’ expectations of $1.5 billion. The company attributed to lower guidance to softness in mobile advertising and NBA 2K24 sales in addition to a planned release moving out of the fourth quarter. Leadership also discussed a new cost-reduction program that is expected to improve its overall margin outlook.
TTWO shares are coming off of a 52-week high prior to earnings, so the -8% move, while larger than usual, may be more of an effect of profit taking with the resetting of expectations and shifting timelines, rather than investors souring on the stock. With GTA 6 launch still on schedule, the highly anticipated release should provide a floor for the stock given that the game has potential to be the fastest-selling game of all time.
Executive Summary
The fourth quarter earnings report was neutral from our perspective. Although in-quarter Gross Bookings, revenue, and EPS all exceeded consensus estimates, the trend in overall take rate continues to decline. This puts pressure on Uber Gross Bookings to outperform in subsequent quarters, as the fall through to revenue is less incrementally. On the other hand, the outlook for Gross Bookings in 1Q24 is just enough to offset the take rate trend and ultimately come in flat QoQ. We now forecast $37.98 billion in Gross Bookings (+21.0% YoY from $31.41 billion) and revenue of $9.945 billion (+13.0% YoY from $8.823 billion).
The ultimate goal for Uber is driving the company towards reported profitability, which the company achieved in FY2023 with a net margin of 5.1% (and 1.8% exclusive of net interest and other income). Uber was able to reach $4.0 billion in adjusted EBITDA this year, and we currently model $5.80 billion in adjusted EBITDA (inclusive of SBC) in FY2024.
The concerns raised in the previous third quarter earnings call may continue to weigh on shares as Mobility take rates seem to have topped out around 29% and Delivery take rates have declined sequentially during the year. Given the trend throughout the year, it appears prudent to model a lower take rate than before (from 27.8% to 26.2%). This may offset the positive outlook provided by the company, despite sequential growth in adjusted EBITDA.
Executive Summary
AGCO Corporation missed on revenue estimates for Q4 2023 due to a normalizing ag machinery demand environment, especially in South America, while strength in sales showed in Europe — but the real story of the quarter is much better-than-expected earnings results on softening sales, as well as a more resilient sales and earnings forecast for FY 2024 than expected. A common theme for AGCO throughout the year was the improvement in midcycle operating margins vs. historical periods, and this increased operating leverage is helping drive a strong outlook for the coming year as more mature ag machinery peers are struggling with the impact of sales declines given the cyclical macro dynamics. Margin expansion will continue to be a key part of the AGCO investment thesis as the company deepens penetration in the U.S. ag market and expands use cases for customers through innovative and accessible precision ag offerings.
AGCO’s growth stage and leverage on existing infrastructure give it two important tailwinds compared to competitors in the coming year. This is a strong signal for investors that the financial outlook is underappreciated in the market, and this can potentially lead to some margin expansion in the coming year with AGCO (8.0x) catching up to DE (11.4x).
With the better-than-expected outlook, AGCO shares are currently trading up to $128.87 (+6.6%).
Executive Summary
Enphase’s Q4 revenue declined 45% sequentially to $303 million, missing analysts estimates of $328 million. Adjusted EPS was $0.53, meeting analysts’ expectations. The company’s forward guidance of $260-300 million for 1Q24 missed consensus estimates of $318 million as channel inventory remains highly elevated. Management expects revenue to rebound in the second half of 2024, with a strong conviction that Q1 will be the bottom. ENPH shares may see some support in the first half of 2024 as the potential for interest rate cuts provide some optimism for the overall solar industry. However, current global demand for residential solar systems has substantially deteriorated from a year ago, and there is still minimal visibility into how the back half of 2024 will play out. Additionally, the company remains at risk of pricing pressure and margin compression as increasingly competitive products come to market at much lower prices.
David Kirn — Co-Founder & Chief Executive Officer
Thank you, everyone, for being here with us today to discuss these exciting results from the 4D-150 Phase II PRISM clinical trial.
Our focus today is wet AMD, which is the leading cause of vision loss in the elderly in the U.S. and Europe and drives an $18 billion retinal diseases opportunity. 4D-150, our lead product candidate for retinal diseases is the first intravitreal genetic medicine with a dual-transgene payload targeting four VEGF family members.
This gene therapy utilizes our modular R100 vector, which we have invented at 4D to deliver transgene payloads to the retina with a single routine low-dose intravitreal injection. We shared positive interim data over the weekend from the 4D-150 Phase II PRISM clinical trial in patients with severe disease activity and a high treatment burden.
The results met all of our study objectives. 4D-150 demonstrated a favorable safety profile with no significant or recurrent intraocular inflammation. Stable vision and improved retinal anatomical control were demonstrated. Finally, robust reduction in anti-VEGF treatment burden was demonstrated, especially at the 3E10 dose level. We demonstrated an 89% overall reduction in treatment burden and 84% of patients received zero or one injection and 63% remained completely injection free.
We believe 4D-150 is the first investigational ophthalmology drug to receive both FDA RMAT and EMA PRIME designations. These designations along with these positive data enable us to rapidly advance our pivotal trial program with a Phase III clinical trial expected to initiate in Q1 2025. Our balance sheet is strong with approximately $300 million in cash as of the end of December 2023, which is expected to fund operations into the first half of 2026.
Press Releases & Business Updates from 4Q 2023
Dec. 6, 2023 – ExxonMobil gave an update to its Corporate Plan through 2027, reflecting continued execution of its strategy to provide the products society needs and to lower emissions, both its own and others’. The Company is expecting capital investments to generate average returns of ~30%, with payback periods less than 10 years for greater than 90% of the capex; Exxon is pursuing more than $20 billion in lower emissions opportunities, up $3 billion; Exxon expects to generate $9 billion in structural cost savings with $6 billion more expected by 2027; Exxon is increasing the pace of share repurchases to $20 billion per year from the Pioneer close through 2025, assuming reasonable market conditions.
Nov. 14, 2023 – ExxonMobil started production at Payara, Guyana’s third offshore oil development on the Stabroek Block, bringing total production capacity in Guyana to approximately 620,000 barrels per day. The Prosperity floating, production, storage and offloading (FSPO) vessel is expected to reach initial production of approximately 220,000 barrels per day over the first half of next year as new wells come online. This additional capacity will be the third major milestone towards reaching a combined production capacity of more than 1.2 million barrels per day on the Stabroek Block by year-end 2027.
Nov. 7, 2023 – ExxonMobil announced that Dina Powell McCormick will join its board of directors, effective January 1. Ms. Powell McCormick is currently vice chairman, president and global head of Client Services at BDT & MSD Partners, an investment and advisory firm, and previously spent 16 years at The Goldman Sachs Group Inc., most recently as a member of its Management Committee. Prior to the private sector, Ms. Powell McCormick served for over a dozen years in senior roles in the United States Government, including as Assistant to the President for Presidential Personnel, Assistant Secretary of State and Undersecretary for Public Affairs and Public Diplomacy, and Deputy National Security Advisor. Ms. Powell McCormick currently serves as chairman of the Robin Hood Foundation Board, Trustee of the National Geographic Society Board, Trustee of the Lincoln Center for the Performing Arts, Trustee of Mt. Sinai Health System and a member of the Board of the Atlantic Council.
Nov. 2, 2023 – ExxonMobil announced it has closed its acquisition of Denbury Inc. (NYSE: DEN) in an all-stock transaction valued at $4.9 billion, or $89.45 per share, based on ExxonMobil’s closing price on July 12, 2023. ExxonMobil now has the largest owned and operated CO₂ pipeline network in the U.S. – adding more than 1,300 miles, including nearly 925 miles of CO₂ pipelines in Louisiana, Texas and Mississippi – located in one of the largest U.S. markets for CO₂ emissions. The company also has access to more than 15 strategically located onshore CO₂ C storage sites.
10% OF ALL BLUE ROOM REVENUES GO DIRECTLY TO FUND OUR NON PROFIT TOGETHERISM.
WE CAN ACCOMPLISH ANYTHING TOGETHER.
These materials do not purport to be all-inclusive or to contain all the information that a prospective investor may desire in considering an investment. These materials are intended merely for preliminary discussion only and may not be relied upon for making any investment decision. Any discussion or information contained in this presentation does not serve as a receipt of, or as a substitute for, personalized investment advice from Blueroom or your advisor.
This publication does not constitute an offer to sell or a solicitation to buy any securities in any fund, market sector, strategy or any other product. Investing is speculative and involves substantial risks (including, the risk of loss of the investor’s entire investment). Past performance is not indicative of future results, and there can be no assurance that the future performance of any specific investment, investment strategy, or product will be profitable.
For more information about us and our general disclosures contact us directly.