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ExxonMobil Company Profile Overview

ExxonMobil is an international oil and gas exploration and production company headquartered in Houston. It has experienced both earnings growth and dividend increases in recent years despite challenges in the oil market. The company plans to double profits by 2025 through expanding upstream, downstream, and chemicals operations, with major investments planned in the U.S. and overseas. Recent successes include improved safety and environmental performance as well as economic support programs in countries like Angola.

Uploaded by

Ahmed Ali Alsubaih
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Topics covered

  • energy efficiency,
  • financial stability,
  • industry leadership,
  • market trends,
  • environmental impact,
  • downstream operations,
  • investment strategy,
  • capital investment,
  • strategic growth,
  • long-term strategy
664 views4 pages

ExxonMobil Company Profile Overview

ExxonMobil is an international oil and gas exploration and production company headquartered in Houston. It has experienced both earnings growth and dividend increases in recent years despite challenges in the oil market. The company plans to double profits by 2025 through expanding upstream, downstream, and chemicals operations, with major investments planned in the U.S. and overseas. Recent successes include improved safety and environmental performance as well as economic support programs in countries like Angola.

Uploaded by

Ahmed Ali Alsubaih
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Topics covered

  • energy efficiency,
  • financial stability,
  • industry leadership,
  • market trends,
  • environmental impact,
  • downstream operations,
  • investment strategy,
  • capital investment,
  • strategic growth,
  • long-term strategy

Course:

Oil & Gas Industry Operation and Markets

Conducted by:

Duke University (via Coursera)

Assignment:

Oil and Gas Company Profile


Section 1: What the Company Does

• Exxon mobil Corporation is an international oil and gas exploration and production company.
Headquartered in Houston, it is one of the largest U.S. oil and gas companies based on equity market
capitalization.

• It is categorized as a publicly traded organization because its ownership is dispersed among the
general public in many shares of stock which are freely traded on a stock exchange/over the
counter markets.

• Exxon mobil exploration and production activities are concentrated in the following three geographic
regions:

1. United States
2. Middle East
3. Africa

• The following facts show why company is more dependent on demand for crude oil as compared to
raw natural gas:

1. One of the Largest producer of oil in worldwide.


2. Producing 6.3 million barrels per day of crude oil.
3. Refine more than 4.91 million barrels per day.

• it is among the top 10 US-based oil and gas companies in the world. (Source: as reported by Statista)

Section 2: How the Company Has Performed

Relative
Performance

• Among oil & gas stocks, Exxon Mobil (NYSE:XOM) is often viewed as a "bastion of safety" - a defensive
holding that can weather a most dire cyclical downturn and preserve (and even grow) its dividend.
•
• Indeed, since the beginning of the current downcycle in oil in mid-2014, Exxon continued to increase
its dividend per share, having stepped it up four times, from $0.63 per quarter in early 2014 to:
•
• $0.69 per quarter in 2014
• $0.73 per quarter in 2015
• $0.75 per quarter in 2016
• $0.77 per quarter in 2017
• Exxon's stock is also one of the best performing among Oil Majors since the beginning of the
downcycle in oil, matched only by Chevron (NYSE:CVX). Even though Exxon's stock is down
approximately 20% since July 2014, the decline is a reasonable price to pay, one might argue, given the
huge drop in oil prices from over $100 per barrel in the first half of 2014 to less than $50 per barrel
currently.. (Source: BARRON'S - US Edition)
Grown, Shrunk or Unchanged?
ExxonMobil’s adjusted earnings rose from $3.7 billion in the fourth quarter of 2017 to $6.4 billion in the fourth
quarter. The earnings growth was due to a rise in upstream and downstream earnings. The earnings growth was
partially offset by the fall in chemicals earnings YoY (year-over-year) in the fourth quarter. (Source: Financial and
Operational Results 2019)

Section 3: What the Successes Have Been for the Company

Significant successes over the past few years


(Source: Financial and Operational Results 2019)

 Leads the industry in workforce safety with a 12 percent reduction in lost-time incident rate on average,
each year since 2000.
 Reduced direct greenhouse gas emissions from its operations.
 Invested more than $1.5 billion in the past five years to increase energy efficiency and reduce
greenhouse gas emissions.
 Achieved zero spills from ExxonMobil-operated and long-term chartered marine vessels in 2008 and
reduced the number of spills greater than one barrel by 60 percent since 2001.
 Strengthened corporate governance by enhancing the role of the presiding director. The presiding
director has the authority to call and chair executive sessions of non-employee directors, and chairs all
board meetings in the absence of the chairman. The presiding director reviews board meeting topics,
agendas and schedules with the chairman prior to distribution to the board, which consists of one
employee and 10 non-employees.
 Provided $225 million in combined corporate giving in the form of cash, goods and services worldwide.
 Employed a variety of economic support and incentive programs for capacity building – collectively
referred to as national content development. In Angola for example, ExxonMobil enhanced local
capacity through business development and expenditures on local goods and services which totaled
$1.5 billion.
Plans for the upcoming several years

(Source: Motely fool 2019)

• ExxonMobil plans to take a multipronged approach to double its profitability in the coming years
by expanding its upstream, downstream, and chemicals businesses. The oil giant expects to
invest $24 billion on capital projects this year, with that ramping up to $28 billion in 2019 before
averaging around $30 billion annually in the 2020 to 2025 time frame.

• Exxon's strategic growth plan is investing to expand the capacity of its refining and chemicals
businesses, which are both expected to double their earnings by 2025. The company plans to spend
more than $20 billion to expand these operations in the U.S. alone in the coming years. One project
it's considering is expanding its refinery in Beaumont, Texas, which could nearly double that facility's
capacity to more than 665,000 barrels per day by 2022.

• Exxon also plans to grow its downstream operations overseas. The company is investing in some
projects at its Rotterdam refinery in the Netherlands that should double that facility's margins by
early next year. Exxon also has refinery projects planned in Singapore, Belgium, and the U.K. that
should start up in the 2020 to 2024 time frame. Meanwhile, the company has a petrochemical
complex in Asia that should also come online during that period.. Furthermore, it will focus on
lowering its costs which over time management believes will correlate to increasing and decreasing
oil prices.
Bibliography

Company's official website

[Link]

Wikipedia, the free encyclopedia

[Link]

Google Finance

[Link]

Statista, The Statistics Portal

[Link]

BARRON'S (U.S. Edition)

[Link]

Moltey fool
[Link]

Common questions

Powered by AI

Strengthened corporate governance has contributed to ExxonMobil's operational success by enhancing decision-making processes, improving transparency, and fostering accountability. The presiding director of ExxonMobil has a pivotal role in board meetings and executive sessions, which aids in ensuring strategic alignment with corporate goals. This governance structure helps sustain investor confidence and regulatory compliance, which are critical for steady operational performance .

The significance of ExxonMobil's dividend growth amid declining oil prices since 2014 lies in its capacity to maintain investor confidence and financial stability. The company raised dividends steadily, an indicator of robust cash flow management and strategic cost control, despite a challenging market environment. This practice highlights ExxonMobil's operational resilience and commitment to sustaining long-term shareholder value, allowing it to stand out among peers facing similar market challenges .

ExxonMobil’s strategic focus on expanding refining and petrochemical capacities is crucial for its future profitability. By investing over $20 billion in U.S. projects to double refining and chemical earnings by 2025, ExxonMobil aims to capitalize on high-margin, value-added products. This strategy mitigates risks associated with fluctuating crude oil prices, diversifies revenue streams, and enhances competitive positioning globally, thus sustaining long-term profitability despite market volatility .

ExxonMobil has implemented several initiatives to address environmental concerns, including reducing direct greenhouse gas emissions through investments exceeding $1.5 billion aimed at increasing energy efficiency. The company achieved zero spills from its operated marine vessels and reduced significant spills by 60% since 2001. These efforts underscore ExxonMobil's commitment to sustainable practices and reducing its operational environmental footprint .

ExxonMobil's investment in local communities has bolstered its operational success and sustainability by enhancing local capacities and fostering goodwill. The company spent $1.5 billion in Angola on business development and local goods, which contributed to job creation and infrastructure improvement. Additionally, ExxonMobil's corporate giving initiatives, which provided $225 million globally, highlight its commitment to social responsibility, thus supporting sustainable development and strengthening community relations .

ExxonMobil's dividend policy is closely tied to its performance during oil market downturns. By consistently increasing its dividends even when oil prices fell drastically—from above $100 per barrel to under $50—ExxonMobil demonstrated financial resilience and a strong balance sheet. This approach reassures investors of the company's commitment to stable shareholder returns, contributing to its image as a stable investment during volatile economic periods .

ExxonMobil plans to double its profitability by 2025 through a multipronged approach that includes expanding its upstream, downstream, and chemicals businesses. The company will invest approximately $30 billion annually in capital projects to enhance production capacity and efficiency, with strategic projects underway in the United States and overseas. Refinery expansions in Texas, as well as various projects in the Netherlands, Singapore, Belgium, and the U.K., aim to boost ExxonMobil's margins and refine operations .

ExxonMobil is termed a 'bastion of safety' due to its stable dividend payments even during economic downturns. The company's dividends increased steadily from $0.63 per quarter to $0.77 over several years despite falling oil prices. Exxon's ability to maintain and grow its dividends in such conditions illustrates robust financial health and a reliable income stream for investors, thereby positioning it as a relatively safe investment compared to other oil and gas stocks .

ExxonMobil's emphasis on reducing operational emissions aligns with global environmental trends by addressing climate change concerns and fulfilling stakeholder expectations for sustainable practices. The company's investment in energy efficiency and reduced greenhouse gas emissions places it in a favorable position to comply with international regulations and sustainability standards. This proactive approach not only mitigates regulatory risks but also enhances ExxonMobil's corporate reputation as an environmentally responsible entity .

ExxonMobil's operations are primarily concentrated in the United States, Middle East, and Africa. This geographic focus influences its operations by targeting regions with significant oil and gas reserves, thereby optimizing exploration and production capacities. The strategic choice of these regions allows ExxonMobil to leverage its expertise in working with diverse regulatory environments and market conditions, fostering resilience against regional economic fluctuations .

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