So naturally, many conservative investors living off dividends are wondering how safe this legendary oil giant’s dividend really is.
Let’s take a look at why, and how, Exxon plans to ride out this oil storm, and not just maintain the current payout, but also continue growing it as it has for over a third of a century.
ExxonMobil is the world’s largest publicly traded integrated oil company, meaning it profits from extracting value from every stage of oil production, refinement, and transformation into specialty petrochemicals.
Source: ExxonMobil Investor Presentation
During the first half of 2016 the company produced the equivalent of just over 4.1 million barrels per day of oil, 58.8% of that in the form of higher margin liquids, such as crude oil, and the remainder in the form of natural gas. To put that in perspective, if Exxon were a nation, it would be the fifth largest oil producer on earth; ahead of Canada, Iran, Kuwait, the UAE, and Venezuela.
Source: US Energy Information Administration
What’s more, with 25 billion barrels of proven oil reserves, Exxon would hold the 14th largest reserves of any nation on earth; more than Mexico, and Brazil combined.
Source: CIA World Factbook