Has Exxon Mobil Corporation (XOM) Become the Perfect Stock?

In response, Exxon has used its global scope to seek out better opportunities. A potential Alaskan nat-gas pipeline and LNG joint venture with BP plc (ADR) (NYSE:BP) and ConocoPhillips (NYSE:COP) would have huge capital demands that would tax even Exxon’s massive balance sheet, but if it opens Asia’s markets to Alaskan natural gas, it could be a big win for the companies involved. But concerns persist, with Exxon walking a political tightrope in Iraq as it tries to do lucrative deals both with the Iraqi central government and the Kurdish regional government.

In its most recent earnings report, Exxon managed to post minimal growth in earnings even as revenue fell. Still, signs of early success in its relationship with Russia’s Rosneft over potential Arctic development, as well as new activities off the coasts of South Africa and Canada’s eastern coast, could eventually help replace some lost production.

For Exxon to improve, it needs to hold off Chevron Corporation (NYSE:CVX) , which has been more aggressive with its attempts to expand internationally. Right now is when oil giants are drawing important battle lines that will govern the industry for decades to come, and Exxon needs to jump in with both feet in order to defend its leadership role.

The article Has ExxonMobil Become the Perfect Stock? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Chevron.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

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!