Dubai's efforts to postpone its debt repayments, making the dollar stronger, commodities weaker ... are external to XOM ...

Surprise, surprise ... EIA Nat Gas report ... 12/17/2009 10:30 AM followed by 10:35 AM commentary:

" January natural gas, on the other hand has been in positive territory all session. After trading almost sideways all session the energy component began to gain momentum early this morning, rising over 2% higher to session highs of $5.611 per MMBtu. Ahead of this week's inventory data, where consensus is calling for a draw of 178 bcf, natural gas is 2.5% higher at $5.597 per MMBtu. Following the data, which showed a draw of 207 bcf, natural gas spiked to fresh highs of $5.911 per MMBtu and is 7.5% higher at $5.869 per MMBtu. "

Xom's purchase of XTO Energy (Nat gas, coalbed methane) is looking more and more like a genius move.

I am confident XOM made the correct move, based on the acquisition cost per barrel of crude equivalent, is only slightly higher than XOM's own cost per barrel of crude equivalent even when you include the 10 Billion in XTO Energy debt that XOM is also assuming. I think the street didn't like the assumption of the 10 Billion in debt ... and that's the most like candidate for the drop in XOM. The second candidate, is the street has this nasty habit of buying (XTO) the stock to be acquired and SHORTING (XOM) the acquiring company. Next month's short interest report should reveal if this is culprit #2.

Exxon's Q2 2010 profit gains were due to a doubling in profits from its refining and marketing operations. Profits at its chemical business tripled.

Exxon earned $7.56 billion, or 1.61 cents a share, on revenue of $92.5 billion, compared with $3.95 billion or 82 cents a share in the second quarter of 2009, when revenue was $74.46 billion. Earnings beat the Street estimate of $1.47 a share. Revenue missed the Street estimate of $98.5 billion.

Oil and gas production was up 8% from a year ago, but nearly all of that gain came from increased production of natural gas. Gas production should expand, especially in the United States, with Exxon's $31 billion acquisition of XTO Energy.