Industry: Oil & Gas
Headquarters: Irving, Texas, U.S.
Key people: Darren Woods (Chairman & CEO)
Products: Crude oil products Natural gas, Petrochemicals.
Revenue: US$7.84billion (2016)
Number of Employees: 73,500 (2016)
ExxonMobil Corporation is multinational oil and gas American corporation that has its headquarter in Irvin, Texas.
ExxonMobil was established on the 30th of November, 1999, following the merging of Exxon (formerly known as the Standard Oil Company of New Jersey) and Mobile (formerly known as the Standard Oil Company of New York). Exxon Mobil is the largest direct descendant of John D. Rockfeller’s Standard Oil Company.
Exxon Mobil, apart from being the world’s seventh largest company by revenue, it is also the seventh largest publicly trading company by market capitalization. In 2014, ExxonMobil was referred to as the most profitable company in the Fortune 500. Also, it ranked ninth globally in the Forbes Global 2000 in 2016.
With daily production of 3.921 million barrels of oil equivalent, ExxonMobil gets tagged as the largest of the world’s Big Oil corporations. However the amount of oil produced by ExxonMobil is significantly smaller than the one produced by a significant number of national companies.
The company’s 2007 rate of production was estimated to last more than 14 years. At the end of 2013, ExxonMobil’s oil and gas reserves were 25.5 billion barrels of oil equivalent.
ExxonMobil is the largest refiner in the world, despite the availability of 37 oil refineries in 21 countries, which constitutes a combined daily refining capacity of 6.3 million barrels (1,000,000m3).
It should be noted that being the largest refiner is a title that was also associated with Standard Oil since its incorporation in 1870.
ExxonMobil Financial Records
Although Wal-Mart remained the largest by number of employees, ExxonMobil beat it as the world’s largest publicly held corporation in 2005. In that same year, ExxonMobil’s revenue was $340 billion, which was like 25% increase over its revenue in 2004.
In 2006, Wal-Mart didn’t look like it was going to lose again to ExxonMobil; it snatched the lead with revenues of $348.7 billion against ExxonMobil’s $335. Even at this, ExxonMobil continued to lead the world in both profits ($39.5 billion in 2006) and market value ($460.43 billion).
In 2007, ExxonMobil witnessed an increase in its net income, which was $40.61 billion on $404.552 billion of revenue. This increase was as a result of the inflation of oil prices as their billion barrels of oil equivalent production decreased by 1%.
The table below contains the financial records of ExxonMobil from 2005-2010.
ExxonMobil Stock Prices
Why have ExxonMobil Stock Prices always remained relatively stable? While ExxonMobil has remained a leader by market value in its industry, it has had a rough ride over the past few years. Well, it is easy to pinpoint the reason as the company is run on the profitability of oil and the last couple of years haven’t been so good for the oil industry. Oil prices have continuously plummeted leading to a downward trend of stock prices.
For instance, during 2014 and 2015 when oil prices collapsed, ExxonMobil stock lost 30% of their stock price value. Moreover, ExxonMobil stock prices continued to suffer from a climate change push that created the demand for more renewable and carbon-free fuels.
These demands have been fronted by governments and global institutions who opt for the use of clean energy alternatives like wind and solar, that pressure isn’t positive for an organization that has invested so heavily in the oil industry.
ExxonMobil stock prices suffered, even more so, when they plummeted in July 2017 by a margin of 4% due to incorrect analyst’s estimates. As a result, it underperformed its peers (Chevron and Total) whose stock gained by 3%. The pressure pilled and became too much in the following month when the stock approached its 5-year low at approximately $68 on a closing basis.
Fortunately he stock prices did not remain there, they started to rise. This was attributed to the shutdown of many refineries in Texas and also as a result of the natural disaster Hurricane Harvey which landed on on 25th August 2017. This saw the ExxonMobil stock prices rise up by 6%.
ExxonMobil Stock Price History
Despite the downward trend of ExxonMobil stock prices of the last couple of years, the dividends continued to rise compared to its peers who have cut them when oil prices plummeted. This made ExxonMobil a more seductive corporation to invest in.
Currently, its dividend payout is 3.79% of yield, management’s commitment also makes investors confident of their investment return resulting in the overall company’s financial stability. Today, things continue to look positive as oil prices are stabilizing and as at February, 2018, the closing price of the stock was $76.42, while its day’s low and high was $75.84 and $77.05, respectively.
Furthermore, to minimize the shocks of depressed oil prices, ExxonMobil has diversified its portfolios leading to more revenues and earnings, which might result in dividend hikes, boosting the stock’s price to the investing public.
For instance, the shift from oil to projects like liquefied natural gas, and the generation of greater amounts of income from its downstream and chemical segments, ExxonMobil has managed to mitigate the effects of low priced oil and put its stock prices stable.
Additionally, what has made the stock prices more stable is the fact that ExxonMobil is able to incur only $20 per barrel in its oil exploration and development costs. That means if the cost of a barrel continues to increase above $50, then ExxonMobil will make more profits.
Potential risks to ExxonMobil Stock Prices
While ExxonMobil assures the public and its shareholders that it is able to operate successfully if the oil prices remained above $40 per barrel, it still faces geopolitical and low commodity prices risk. Moreover, there is a risk of being slapped with punitive taxes, new rules, and regulations as well as being attacked by global institutions and governments for using carbon-based fuels.
In addition, its stock prices can be affected by a potential decline in liquefied natural gas and if the above factors can significantly lead to revenue reduction resulting in dividend cuts, then, the stock prices will tumble.
Among, its competitors ExxonMobil has managed to relatively keep its stock prices stable and despite plummeted oil prices and revenues, it has continued to increase its dividends. As a result, the shareholders have been loyal to the organization providing stability to its stock and with the current stabilization of oil prices, there is a positive projection for 2018 that ExxonMobil stock prices will increase. It is wise to speculate that there will be a hike in dividends and a rise in stock value.
ExxonMobil Company Headquarters
ExxonMobil has its headquarter situated at Irving, Texas. This was after the company vacated its offices in Downtown Houston in 2015.
As of May 2015, Exxon Mobil is getting closer to completing its new campus located in a northern suburb of Spring, at the intersection of interstate 45, the Hardy Toll Road, and the Grand Parkway extension.
The corporate campus is an elaborate one, featuring twenty offices which total 3,000,0002ft, laboratory, a wellness centre and the vehicles parking garages. In October 2010, the company stated that it would not move its headquarters to Greater Houston.
ExxonMobil Senior Management
Darren W. Woods is the current Chairman of the Board and CEO of Exxon Mobil Corporation. Following the retirement of former Chairman and CEO Rex Tillerson, Woods was elected as Chairman of the Board and CEO on January 1, 2017.
Before his election as Chairman and CEO, Woods was elected President of ExxonMobil and a member of the board of directors in 2016.
As of January 11, 2017, the current ExxonMobil board members are:
- Larry R. Faulkner, President, Houston Endowment; President Emeritus, the University of Texas at Austin
- Michael Boskin, professor of economics Stanford University, director of Oracle Corp., Shinsei Bank, and Vodafone Group
- Angela F. Braly, former CEO of WellPoint
- Peter Brabeck-Letmathe, Nestlé chairman and former Nestlé CEO
- William C. Weldon, past Johnson & Johnson chairman
- Samuel J. Palmisano, Chairman of the Board, IBM Corp
- Steven S Reinemund, retired Executive Chairman of the Board, PepsiCo
- Ursula Burns, Xerox chairman and CEO
- Douglas R. Oberhelman, Chairman and Chief Executive Officer, Caterpillar Inc.
- Henrietta H. Fore, Holsman International
- Kenneth Frazier, President of Merck & Co.
- Darren W. Woods, Chairman of the Board and CEO, ExxonMobil Corporation
Exxon faced criticism for being nonchalant to cleanup efforts after the infamous Exxon Valdez oil spill in Alaska, which took place in 1989.
In terms of damages made to the environment, this incident is widely regarded as one of the world’s worst oil spills.
The company also has a history of lobbying for climate change denial and against the scientific consensus that global warming is caused by the burning of fossil fuels.
It is fair to say that Exxon has now spent a great deal of time and money improving safety and environmental issues and now one of the main advocates of environmental policies. If you are interested in exxonmobil jobs and the latest exxon project news, head over to our article on ExxonMobil To Create High Paying Jobs.