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Headquartered in Irving, Texas, Exxon Mobil Corporation, known as ExxonMobil, is an American, multinational oil and gas company. As the largest descendant of the John Rockefeller’s Standard Oil Company, ExxonMobil was formed on the 30th of November 1999, with the merger of Mobil and Exxon. Mobil was formally known as Standard Oil Company of New York, while Exxon was formally known as the Standard Oil Company of New Jersey. As of November 2018, Exxon Mobil Corporation is the largest publicly traded international energy company. They use innovation and technology to help meet the world’s growing energy needs. Exxon Mobil is a major manufacturer and marketer of basic petrochemicals, including aromatics, olefins, polyethene and polypropylene plastics, including a wide variety of speciality products.
In addition, the company is engaged in the exploration for, as well as the mining and sale of copper, coal and other minerals. To put it into perspective, ExxonMobil is one of the largest refiners and marketers of petroleum products and its chemical company is one of the largest in the world. ExxonMobil markets products all over the world under brand names such as Esso, Exxon, and Mobil. They also own several hundred subsidiaries globally, which assist in the production and distribution of ExxonMobil products.
Exxon Mobil is divided into 3 business divisions:
ExxonMobil ranks second in the 2018 Fortune 500 list, and they are the largest non-governmental oil company in the world, producing 3% of the world’s oil and energy. As of November 2018, ExxonMobil Corporation is the world’s ninth largest company by revenue, with Walmart in the top spot. By market capitalisation, in January 2018, this company had a market cap of $370 billion, but with the declining oil prices, ExxonMobil’s market cap declined to $319 billion by November 2018. Daily production from ExxonMobil is at roughly 6.2 million barrels of oil a day, regardless of the oil environment. If oil prices increase, this usually boosts the company’s cash flow. ExxonMobil is traded on the New York Stock Exchange (NYSE) under the ticker XOM. It falls under the Energy Sector and the Oil and Gas Integrated Industry.
Over the years, ExxonMobil has made some notable acquisitions. In 2009, the company acquired XTO Energy for $41 billion and Celtic Exploration Ltd in October 2012. In 2016, ExxonMobil acquired the InterOil Corporation for $2.5 billion, and in 2017, they acquired Jurong Aromatics Corporation Pte Ltd, a company that manufactures aromatics and transportation fuels. Their most recent acquisition was MPM Lubricants on the 29th of April 2018.
Exxon Mobil has had 5 stock splits over the years. The first split for XOM, a 2 for 1 split, took place on the 26th of July 1976. After that, the stock splits occurred as follows: 2 for 1 split, 12 June 1981; 2 for 1 split, 15 September 1987; 2 for 1 split, 14 April 1997; and 2 for 1 split, 19 July 2001. Interestingly, ExxonMobil’s history of stock splits follows a distinctive pattern that many other stock market giants have used to guide their own stock-split decisions. Since 2001 though, ExxonMobil hasn’t split its shares. The company was expected to do so in 2007 when oil prices hit $150 per barrel, and Exxon shares neared triple-digit levels. After this, however, with oil prices declining, the stock eventually lost about a third of its value by 2010. By the end of 2013, ExxonMobil stock climbed above $100 per share, and it stayed there for much of 2014 before falling back. As of November 2018, the stock is trading at $75.49 a share.
Many investors are wondering if ExxonMobil will split their stocks again. Analysts have speculated that if oil prices rebound enough to have a dramatic impact on the company’s financials, the energy giant could give shareholders a long-awaited stock split. Since ExxonMobil’s revenue and profits are sensitive to commodity pricing, specifically crude oil trading price as it is the main component of the company’s profits, it is vital to keep track of this commodity’s price and movements when trading. As a general rule, when crude oil is trading higher, that makes for larger profits for companies such as Exxon. When you look at the crude oil futures compared to the XOM stock chart, you can see that there are major similarities in terms of price movements.
ExxonMobil also pays dividends to its shareholders. In June 2018, the company boosted its quarterly dividend by about 7% to 0.82 cents, the 36th year in a row it has increased the payout. The dividend was paid on the 11th of June 2018 to shareholders. In August 2018, the Board of Directors of Exxon Mobil Corporation also declared a cash dividend of 0.82 cents per share on the Common Stock, payable on the 10th of September 2018. Through the Exxon stock dividends, the company has shared its success with its shareholders for more than 100 years.
ExxonMobil is one of the most followed and traded stocks on the New York Stock Exchange. Here is what to keep in mind when trading the XOM stock:
Other such events that could impact ExxonMobil is instability in the Middle East, in countries such as Kuwait. Exxon operates in some of the most hostile countries in the world, so this needs to be assessed as it could directly influence the profitability of the company. Since ExxonMobil plays such a vital role in the global supply of oil, it is important to look into the impact that all these factors can cause in the short term, rather than in the long term when the Exxon stock price would have discounted them accordingly.
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