Exxon Mobil Corporation (XOM), Chevron Corporation (CVX): As Oil Prices Rise, Profit With These Stocks

Page 1 of 2

The economy in the United States continues its steady, albeit painfully slow, recovery from the crushing effects of the Great Depression.  One area of the economy that is well into its own recovery is the price of oil.  Due to a confluence of factors, including the recovering global economy and a combination of low interest rates and continued stimulus from the Federal Reserve, oil is now only a few dollars away from the $100 per barrel mark.  Prices at the pump have eclipsed the psychologically-important $4 per gallon level in many cities across the United States.  If you’re frustrated from shelling out more and more of your hard-earned wages at the gas pump, here’s your chance for payback.

Exxon Mobil Corporation (NYSE:XOM)As the saying goes, if you can’t beat ‘em, join ‘em

Exxon Mobil Corporation (NYSE:XOM) is the largest publicly traded stock in the world, with a market capitalization that currently sits at over $400 billion. The stock is the gold standard for the merits of slow and steady investing.

Earnings per share increased 15% to a record $9.70 per share, and the company’s financial position is fantastic. The balance sheet is an absolute fortress, holding a long-term debt to equity ratio of only 5%. In addition, the company is extremely friendly to its shareholders by providing generous share repurchases and dividend increases.  Gross share purchases for 2012 were $21.1 billion, and in 2012 Exxon Mobil Corporation (NYSE:XOM) raised its dividend for the 30th consecutive year.  The current payout is a solid 2.5% yield at current prices, and the stock trades for a trailing price-to-earnings ratio of less than 10.

Chevron Corporation (NYSE:CVX) is a close cousin of Exxon’s, although it had less success in 2012.  Chevron’s full-year 2012 earnings were $13.32 per diluted share, down from $13.44 per share in 2011.  To the company’s credit, Chevron’s proven reserves place the company in a great position.  Chevron added approximately 1.07 billion barrels of net oil-equivalent proved reserves in 2012, which equate to 112 percent of net oil-equivalent production for the year.

Like Exxon, Chevron Corporation (NYSE:CVX) is extremely well capitalized.  At year end, balances of cash, cash equivalents, time deposits, and marketable securities totaled $21.9 billion, an increase of $1.8 billion from the end of 2011. Meanwhile, total debt stands at only $12.2 billion.

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

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

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

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!