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

BP PLC (NYSE:BP) is still executing its asset disposal plan ($45 billion), but in the meantime should manage upstream annual production growth of 1% over the next five years with a focus on higher margin barrels, rather than purely volume growth. BP has been performing well, with reserve replacement last year above 100%. The energy company expects to increase production 1% through 2014. BP pays one of the top dividend yields in the industry at 5.2%, and its payout ratio is on the low side at 35%. Ken Griffin – founder of Citadel Investment Group – was one of BP’s big-name investors last quarter (check out Ken Griffin’s newest picks).

Total SA (NYSE:TOT) has built one of the most irregular portfolios in this space by targeting unconventional and high risk-high reward assets. Mixture-wise, Total has an impressive portfolio allocation with a 60% oil – 40% gas breakdown. Total hopes to grow production at 2% through 2016 and its dividend is one of the best out there with a 5.8% yield.

Marathon Oil Corporation (NYSE:MRO) posted 3Q EPS of $0.64, compared to $0.59 in 3Q 2011, on the back of better than expected onshore production. Third quarter volumes were up 10% on a quarter over quarter basis and are expected to see to see solid growth going forward from onshore U.S. operations. Close to 55% of CapEx is expected to be allocated to onshore territories – 35% at Eagle Ford alone. The oil and gas company expects to keep CapEx relatively flat in 2013, but also has a dividend that yields just 2.2%. Marathon saw Steven Cohen of SAC Capital up his stake almost 200% last quarter (check out Steven Cohen’s big bets).

In short, Exxon is one of the top defensive names in the sector with solid dividend growth. We believe that Exxon’s cash flow generating abilities are robust and will allow the company to throw off excess cash in the near future. For more energy coverage, continue reading below:

XOM setting up for a rally

Why Does Cohen love Exxon Mobil?

Exxon Mobil, Chevron are this billionaire’s top energy picks