Exxon Mobil : A Great Stock For Beginner Investors

     Chevron Texaco, or Texaco Shell, is the leading competitor to ExxonMobil. Texaco is in the same areas of business as Exxon. Their petroleum products and lubricants are sold in the same markets, stores, and in many cases opposite street corners from each other. The two companies are very similar, but Exxon’s recent petroleum deals in the Middle East and Africa have allowed its stock price to jump ahead for the time being (1). In the industry, the two companies mainly compete for the ability to negotiate for new production. The competition is not made at the pump or at the local auto store. It seems that it’s more important to control oil than it is to sell it quickly. Because oil has so much value and power in the world, the industry is made of semi-friendly companies. Surviving and making as much profit as possible, is more important than trying to put people out of business.

The quick ratio for Exxon in 2010 and 2011 are 0.64 times, which falls between the median and lower range of the industry averages on the D & B chart for both years. This shows that ExxonMobil Corporation to be among the average in its industry, therefore it will be a less risky investment. The current ratio in 2010 and 2011 is 0.94 times, in which 2010 falls in the lower range and 2011 falls between the median and lower range of the industry averages. This explains that in 2010 and

Their ability to map the contours of a market, and then maximize profit given that structure, is just as important as understanding demand, production, and costs (JWI518 W5 L2). Oil and gas prices fluctuate on a minute by minute basis, taking a look at the historical price range is the first place you should look. Many factors determine the price of oil, but it really all comes down to supply and demand. Demand typically does not fluctuate too much (except in the case of recession), but supply shocks can occur for a number of reasons. When OPEC meets to determine oil supply for the coming months, the price of oil can fluctuate wildly. Day-to-day fluctuations should not influence investment decisions in a particular energy company, but long-term trends should be followed more closely (OPEC, 2014).

ExxonMobil is identified as one of the world’s leading oil and gas businesses. It manages market commodities and means countrywide. ExxonMobil is entail in “marketing, gas, and oil exploration, transportation and production in roughly 200 nations” (ExxonMobil, 2015). This company furnishes assistance and products under label names such as “Mobil, Esso, and Exxon. ExxonMobil is known as one of the biggest oil industrial installation where a substance is refined in the nation” (ExxonMobil, 2015). This essay discusses ExxonMobil’s strategic initiative from

Over the past two years, oil prices have increased very rapidly. “With OPEC production cuts and a growth in crude oil demand,” oil prices went from a 25-year low of $11 per barrel in February 1999 to a peak of close to $36 per barrel in December 2003 (Jablon 1). “Some analyst, however, said the cut could soon push crude prices above the psychologically important threshold of $40 per barrel and worsen the pain for U.S. motorists” (“Rising Prices Fuel Gas Clash” 1). During this winter, the price of natural gas has gone through the roof. This brings many questions to mind. Are the companies just raising prices? Is there actually a shortage that is causing the raise in price?

Between the Exxon and Chevron companies, Chevron proves to be more profitable than Exxon since Chevron shrunk less in

From the recent case data, ExxonMobil has not acted irresponsibility in pricing its gasoline products. Outside of the grocery industry, I have not heard of any business segments surviving on less than a 5% profit margin. In reading that ExxonMobil reported only a net profit of 8.5%3, it is difficult to state that the firm over priced its products to reap abnormal profits. Although Mr. Lee Raymond’s $400 million retirement seems grossly out of proportion in utilitarian terms, adding these funds back into the firm’s bottom line would not change the profit results. With profit margins of less than 10%, it is unlikely that ExxonMobil would be able to keep the price of gasoline fixed if sweet crude oil were to increase from $80 per barrel to $88. This 10% increase in raw material cost would have to be passed through to the customer in the form of higher prices for the firm to survive.

Formed by the merger of two big oil companies in 1999, Exxon and Mobil, the corporation is now the world’s 8th largest by revenue and third largest publicly traded company by market capitalization. Exxon’s history is the story of two groups; both Exxon and Mobil are descendants of John D. Rockefeller 's Standard Oil Company of Ohio, incorporated as Standard Oil Trust in 1882.

This company experienced an all-time high in March of 2011 when its close price hit an astounding 93.01 but then dropped by nearly 20 three months later when it closed at 76.95 and then 55.44 in September of that same year. They currently hold a return on equity of 9.61% and a return on assets of 5.24%. The industry that this company is in, oil and gas industry, has seen enormous advances in technology and this has helped toward assisting companies in producing more oil and gas. These technology advancements have allowed them to more accurately find and produce resources in order to maximize profit for the companies. Although the technology efficiency is on the rise, trying to maintain a fresh and talented workforce within the industry is an area that is struggling. Another factor hurting this industry is the decrease in activity and transactions, which took a huge plummet in 2013 compared to 2012. Despite these setbacks, the oil and gas business still maintains to be dynamic due to how critical the resources are to the daily lives of everyone in the world.

ExxonMobil is a United States based transnational oil and gas corporation. Founded on the 30th of November 1999 after the merger between Exxon and Mobil, reuniting the original breakup of standard oil company (Folsom Jr 1998). It is the world’s largest publicly traded oil and gas company by market value and as of 2016, the sixth largest in terms of revenue at $246 million per year (Decarlo 2016) . ExxonMobil’s oil and gas exploration stretches across six continents with

A fortune five hundred company is defined as “an annual list of the 500 largest industrial corporations in the U.S., published by Fortune magazine. The corporations are ranked based on such metrics as revenues, profits, and market value.” (2011) Exxon Mobile has been declared the number one fortune five hundred company in the world in 2008. In 2007 Exxon Mobile was ranked number two but recently with its new improvements and massive revenue it has taken in throughout the year, it has reclaimed its spot as number one. Receiving the status as the number one fortune five hundred company is a great honor and will actually bring this company even more

Exxon and Chevron are no doubt some of the leading incorporated oil companies on the globe. Exxon Corp. is the second largest oil firm after Royal Dutch Shell, it is respected for getting the biggest revenue return in 2008 which no company in the U.S. have ever reported before. According to Wilson (2009) Chevron has managed to show a lot of profitability in the market despite the decease in its oil production. It graded as one of firms which made a billion dollars profit within a week in the period of July to September 2008. Regardless of profitability trends set by the two oil firms in the U.S. market, they have been facing financial decline like the rest of the companies in other industries. The two firms are like two sailing ships which are taking longer time to sink. In the last few years, the production capacity of Chevron and Exxon has decreased and their listings on the stock market have become weak. The continuation of construction and drilling which requires billions of dollars in expense of oil production might make them experience a bigger financial crisis (Wilson, 2009).

One of the most reputable resources that Exxon Mobil has today is a strong brand name. Exxon Mobil operates all over the world and is recognized in every part of the world (Datamonitor, 2008). When people all over the world know who a company is, what they do, and where they are located, the company gains a unique competitive advantage over

Exxon Mobil is a business that believes in a diverse workforce. The company believes in investing in its employees so the company can retain its workforce. Exxon Mobil also wants to provide its consumers with an energy source that lowers the global warming effects and the company can achieve just that by continuously investing in research and development.

This report consists of financial analysis of Exxon Mobil Corporation and it is based on the company annual report for the fiscal year ended December 31, 2006, on the company’s official documents placed at their website and on other appropriate sources. For convenience and simplicity, in this report the terms ExxonMobil, Exxon, Esso and Mobil, as well as terms like Corporation, Company, their and its, are sometimes used as abbreviated references to specific affiliates or groups of affiliates.