Exxon Mobil Corporation (XOM): Which Oil Major Returns the Most Cash to Investors?

Page 1 of 2

The world’s largest oil companies, such as Exxon Mobil Corporation (NYSE:XOM), Royal Dutch Shell plc (ADR) (NYSE:RDS.A) and TOTAL S.A. (ADR) (NYSE:TOT), are well known for their larger than average free cash flows, which allow them to return large amounts of cash to investors through stock repurchase programs and dividends. However, with each company providing equally impressive returns, which offers investors the most by way of cash returns.

Exxon Mobil Corporation (NYSE:XOM

Exxon Mobil Corporation (NYSE:XOM), the world’s largest oil company by market cap, is under pressure to return lots of cash to investors, and the company does this through a combination of buybacks and dividends. On the other hand, Chevron Corporation (NYSE:CVX) has focused more on dividend payouts rather than stock repurchases and offers a stronger yield than Exxon but smaller overall returns.

For this analysis, I am going to be analyzing the companies based on the total amount of cash returned to shareholders, per share during the period. Then I’m going to use this per-share amount to arrive at a total returned as a percentage of the average share price for the period.

Exxon Mobil Corporation (NYSE:XOM)

Billions 2011 2012 Q1 2013 Average Retuned
Number of shares in issue (Billions) 4.88 4.63 4.49
Total dividend (Billions) $9.00 $10.10 $2.56
Total repurchases (Billions) $21.13 $20.88 $5.62
Returned per share $6.17 $6.69 $1.82
Average Share Price $76.80 $82.20 $88.40
Total Returned 8.0% 8.1% 2.1% 8.2%

As the biggest company in the world, Exxon Mobil Corporation (NYSE:XOM) is under a certain amount of pressure to return cash to shareholders, which it does well. Exxon has returned around 8.2% to investors annually (based on Q1 2013 the company is set to return an annualized 8.4% this year). On a per share basis, both stock repurchases and dividends meant that shareholders received $6.17 per share in 2011 and $6.69 in 2012.  Based on the average share price for the year, this was a total cash return of 8% and 8.1%, respectively.

Chevron Corporation (NYSE:CVX)

Billions 2011 2012 Q1 2013 Average Return
Number of shares in issue (Billions) 1.99 1.95 1.93
Total dividend (Billions) $6.14 $6.84 $1.74
Total repurchases (Billions) $3.19 $4.14 $1.00
Returned per share $4.69 $5.63 $1.42
Average share price $102.60 $105.10 $116.00
Total returned 4.6% 5.4% 1.2% 4.9%

Despite trading at a higher valuation, Chevron Corporation (NYSE:CVX) does not return as much cash to shareholders as Exxon Mobil Corporation (NYSE:XOM). Chevron has returned around 4.9% to investors annually (based on Q1 2013 the company is set to return an annualized 4.8% this year). On a per share basis, both stock repurchases and dividends meant that shareholders received $4.69 per share in 2011 and $5.63 in 2012. Based on the average share price for the year, this was a total cash return of 4.6% and 5.4%, respectively.

ConocoPhillips (NYSE:COP)

2011 2012 Q1 2013 Average Return
Number of shares in issue (Billions) 1.38 1.24 1.24
Total dividend (Billions) $3.63 $3.28 $0.82
Total repurchases (Billions) $11.03 $4.96 -$0.01
Returned per share $10.62 $6.65 $0.65
Average share price $67.80 $65.00 $58.80
Total returned 15.7% 10.2% 1.1% 10.4%

ConocoPhillips (NYSE:COP)’ results are somewhat skewed due to the separation from Philips 66 last year. Indeed, in 2011 and 2012, Conoco returned 15.7% and 10.3% to shareholders, respectively; however, this is set to fall to around 4.4% this year based on the first quarter results.

That said, based on the data at the bottom of this article, it would appear that although ConocoPhillips (NYSE:COP) has reduced shareholder returns, it still has plenty of room to increase them again.

Occidental Petroleum Corporation (NYSE:OXY)

Millions 2011 2012 Average Return
Number of shares in issue (Billions) 0.812 0.809
Total dividend (Billions) 1.44 2.13
Total repurchases (Billions) $0.22 $0.50
Returned per share $2.05 $3.25
Average share price $98.20 $91.50
Total returned 2.1% 3.6% 2.8%

Lastly, Occidental Petroleum Corporation (NYSE:OXY) appears to be retuning the least to shareholders out of the whole group – the company returned around 2.8% to investors annually. On a per share basis, with both stock repurchases and dividends, shareholders received $2.05 per share in 2011 and $3.25 in 2012.  Based on the average share price for the year, this was a total cash return of 2.1% and 3.6%, respectively.

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 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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!