Exxon Mobil Intrinsic Value Calculation – Supreme Court Upholds California Ban on Offshore Fracking, Rejects ExxonMobil Challenge

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The United States Supreme Court recently ruled in favor of California’s ban on offshore fracking, rejecting a challenge from Exxon ($NYSE:XOM)Mobil. The ban covers all state-regulated waters, including those off the coast of Los Angeles and San Francisco. ExxonMobil is one of the world’s largest energy companies and a major player in the global oil and gas industry. The company explores for and produces crude oil and natural gas, manufactures and markets fuel and other petroleum products, and develops and implements advanced technologies.

Market Price

In response, ExxonMobil stock opened at $107.2 but closed at $105.3, a drop of 0.4% from its previous closing price of 105.8. This ruling marks a significant victory for environmental activists and lawmakers, who have sought to impose tighter restrictions on oil and gas drilling in order to protect coastal communities from potential harm caused by fracking. It also serves as a reminder of the power of state regulations to shape energy policy and industry practices. ExxonMobil, however, has indicated that it intends to continue fighting the ban in court. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Exxon Mobil. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Exxon Mobil. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Exxon Mobil. More…

Key Ratios Snapshot

Some of the financial key ratios for Exxon Mobil are shown below. More…

Analysis – Exxon Mobil Intrinsic Value Calculation

GoodWhale recently conducted an analysis of EXXON MOBIL‘s wellbeing to determine the current value of its stock. After utilizing our proprietary Valuation Line, we calculated the intrinsic value of EXXON MOBIL’s share to be around $101.9. At the moment, EXXON MOBIL stock is being traded at $105.3, which is a fair price that is slightly overvalued by 3.4%. More…

Peers

The oil and gas industry is a highly competitive sector. The largest oil companies in the world, Exxon Mobil Corp, Chevron Corp, BP PLC, and Hess Corp, are all vying for market share. These companies have different strengths and weaknesses, and each is trying to outmaneuver the others in order to gain an advantage.

– Chevron Corp ($NYSE:CVX)

Chevron is an American energy company with a market cap of 313.46B as of 2022. Chevron is engaged in every aspect of the oil, natural gas, and geothermal energy industries, including exploration, production, refining, marketing, and transportation. Chevron also has interests in chemicals, mining, and power generation. Chevron’s return on equity was 16.97% as of 2022.

– BP PLC ($LSE:BP.)

HSBC Holdings plc is a British multinational banking and financial services holding company headquartered in London, United Kingdom. It is the world’s fourth-largest bank by total assets and the largest in Europe with total assets of US$2.374 trillion. HSBC traces its origin to a hong in Hong Kong, and its present form was established in London by the Hongkong and Shanghai Banking Corporation to act as a new group holding company in 1991. The last surviving member of the Hong Kong banking conglomerate, The Hongkong and Shanghai Banking Corporation Limited, was renamed HSBC Holdings plc in May 1999.

As of March 2018, HSBC is organized into four business groups: Commercial Banking, Global Banking and Markets, Retail Banking and Wealth Management, and HSBC Holdings. HSBC has a dual primary listing on the Hong Kong Stock Exchange and London Stock Exchange, and is a constituent of the Hang Seng Index and the UK FTSE 100 Index. As of 6 July 2012, it had a market capitalization of £102.7 billion, the second-largest company listed on the London Stock Exchange, after Royal Dutch Shell. It has secondary listings on the New York Stock Exchange, Euronext Paris, and the Bermuda Stock Exchange.

In 2015, HSBC was investigated by the US Senate for allegedly facilitating money laundering for drug cartels and terrorist groups. The allegations date back to 2002 and HSBC’s involvement with Mexican drug lord Osiel Cárdenas Guillén. On 11 December 2015, HSBC agreed to pay US$1.256 billion to settle the charges.

– Hess Corp ($NYSE:HES)

Hess is a leading international independent energy company engaged in the exploration and production of crude oil and natural gas. Hess has a market cap of $37.9 billion as of 2022 and a return on equity of 29.47%. The company has a long history of success in the oil and gas industry, and its operations are primarily focused in the United States, the United Kingdom, Norway, Denmark, Malaysia, and Indonesia. Hess is committed to providing its shareholders with value through a combination of strong operating performance, disciplined capital management, and a commitment to sustainable development.

Summary

Exxon Mobil is a major energy company that has had a long presence in the industry, but has faced some difficulty in recent years due to market volatility. However, analysts are still bullish on the stock as the company continues to increase its production and capitalize on its strong balance sheet. Exxon Mobil has shifted its focus to developing natural gas and renewable sources of energy, which may provide upside in the future. Investors should watch the trends in oil prices and the company’s earnings reports closely as these will be key indicators of whether it can remain profitable and remain an attractive option for long-term investors.