Exxon Mobil Intrinsic Value – EXXON Mobil Reverses Course, Joins UN-Led Methane Reporting Program
December 1, 2023
🌥️Trending News
Exxon ($NYSE:XOM)Mobil, one of the world’s largest oil and gas companies, has reversed its previous stance and agreed to participate in a UN-led global methane reporting initiative, according to an article in the Financial Times. This marks a major shift for ExxonMobil, which had previously declined to join the project. The company is also heavily involved in energy research and has recently been investing in renewable energy sources.
Share Price
On Wednesday, EXXON MOBIL reversed course and joined the United Nations-led methane reporting program, dubbed the Global Methane Initiative (GMI). This announcement came after months of pressure from environmental and investor groups. As a result, EXXON MOBIL stock opened at $104.3 and closed at $102.3, down by 1.5% from the previous closing price of 103.9. The GMI program seeks to reduce global methane emissions from oil and gas operations, which are among the major contributors to global warming.
The program requires companies to identify and report on methane emissions and set specific reduction goals. EXXON MOBIL’s decision to join the GMI marks an important step forward in its commitment to reduce emissions and contribute to a cleaner environment. The company has expressed its intention to continue working collaboratively with the UN, other stakeholders, and investors to address climate change. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Exxon Mobil. More…
| Total Revenues | Net Income | Net Margin |
| 346.17k | 41.13k | 11.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Exxon Mobil. More…
| Operations | Investing | Financing |
| 59.31k | -18.91k | -38.68k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Exxon Mobil. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 372.26k | 164.73k | 50.39 |
Key Ratios Snapshot
Some of the financial key ratios for Exxon Mobil are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.9% | 76.6% | 17.8% |
| FCF Margin | ROE | ROA |
| 10.9% | 19.4% | 10.4% |
Analysis – Exxon Mobil Intrinsic Value
GoodWhale has conducted an in-depth analysis of EXXON MOBIL‘s financials and come up with an intrinsic value of $96.2 for the company. Our proprietary Valuation Line was used to arrive at this estimated value, which is based on taking into account core indicators like revenue, cash flow and return on assets. At the current market price of $102.3, EXXON MOBIL’s share is slightly overvalued by 6.4%. This means investors may be paying a premium for the stock, and a good opportunity could arise in the near future if prices drop. That said, it still remains a good investment option for those looking to invest in a stable and reliable company. More…
Peers
The oil and gas industry is a highly competitive sector. The largest oil companies in the world, Exxon Mobil Corp, Chevron Corp, BP PLC, and Hess Corp, are all vying for market share. These companies have different strengths and weaknesses, and each is trying to outmaneuver the others in order to gain an advantage.
– Chevron Corp ($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, one of the world’s leading oil and gas companies, has recently announced a policy U-turn, joining a United Nations-led methane reporting program. This shift marks a notable change in the company’s approach to environmental responsibility and sustainability, as well as a positive step towards transparency for investors. As a result, Exxon Mobil shares have seen an increase in demand from investors eager to capitalize on the company’s focus on environmental, social, and governance (ESG) initiatives.
In the eyes of investors, Exxon Mobil is now seen as a potential industry leader in ESG practices. Moving forward, investors should watch out for further news from the company regarding ESG initiatives and reporting transparency and use it to inform their decisions when considering investing in the company.
