Exxon Mobil Corporation (XOM): a Great Investment for the New Year

Page 1 of 2

Exxon Mobil Corporation (NYSE:XOM) is the world’s largest publicly-traded oil company, with around 80% of its earnings coming from outside the U.S. Exxon has a variety of operations, ranging from upstream to downstream, and even some chemical segments. Exxon’s upstream operations include nearly 25 billion in oil equivalent barrels in proven reserves, with nearly a 50/50 oil and gas split. Its downstream operations include refining and marketing products, with refining capacity of over six million barrels per day. Mega-billionaire Bill Gates is the top fund owner in Exxon (check out Bill Gates’ biggest bets).

An Interesting Microsoft Corporation (MSFT), Google Inc (GOOG) Showdown

Exxon reported better than expected 3Q results on the back of strong refining margins. Driving future growth will be Exxon’s XTO Energy acquisition, which gave the energy company access to significant unconventional resources. This will also help it to expand its handle on the natural gas market. Exxon expects to spend $185 billion over the next five years, which is up 30% from the 5-years prior.

The oil giant boasts an impressive balance sheet and is one of the few companies still sporting a triple-A credit rating. Exxon has an impressive long-term debt to equity ratio of only 5% and has over $13 billion in cash on hand. Exxon also has the lowest payout ratio of the five energy stocks listed here at 22%. Assuming Exxon boosts its payout to the peer average (35%), its dividend yield could increase from its current 2.6% to 4.2%.

Chevron Corporation (NYSE:CVX) is one of the major energy players alongside Exxon. Production fell 3% in 2011 on the back of a pipeline incident in Thailand. Growth is expected to be driven by new liquid natural gas projects in Australia and Asia. These initiatives will fuel production growth of 1% through 2014, and then 4% from 2015 to 2017. The one downside for Chevron is its liquid-heavy portfolio mix, as nearly 70% of its assets are focused in this arena.

This oil giant has been pushing to make its downstream operations smaller and less complex, with a whopping 90% of its 2012 CapEx budget expected to go toward exploration and production. Ken Fisher – founder of Fisher Asset Management – is Chevron’s top fund owner with over 3.5 million shares (check out Ken Fisher’s newest picks).

What other companies must we compare Exxon to?

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!