Oil Bulls Struggling as Exxon Mobil Dominates Market

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Exxon Mobil ($NYSE:XOM), the largest publicly traded oil and gas company, is having a particularly strong year as it continues to dominate the oil and gas markets. This is proving to be a difficult situation for those who are oil bulls, or optimistic about the future of oil prices. Exxon Mobil Corporation is an American multinational oil and gas corporation based in Irving, Texas. The company is engaged in exploration and production of crude oil and natural gas; manufacturing and marketing of petroleum products; refining, transportation, and sale of petroleum products; and manufacturing and marketing of chemical products. It also engages in power generation activities and owns interest in petrochemical plants. The company’s success has been driven by its strong focus on operational efficiency, a diversified business portfolio, and strategic investments.

Its production capabilities have allowed Exxon Mobil to capitalize on the current pandemic-induced increase in demand for energy products, indicating strong market strength and future growth potential. Exxon Mobil’s success has also resulted in an increase in its dividend yield, which has been consistently above 4 % for the past four years. Exxon Mobil’s continued dominance in the oil and gas markets is causing difficulties for those who are hoping for higher oil prices. While there are some analysts who believe that the current market conditions could translate into higher long-term prices, Exxon Mobil’s market position makes this scenario less likely. As such, those who are optimistic about the future of oil should remain cautious when considering their investments.

Market Price

On Wednesday, Exxon Mobil (XOM) dominated the oil market as its stock opened at $102.0 and closed at $101.7, down by 0.5% from the prior closing price of 102.1. The oil behemoth has been in the headlines for its massive market share and impressive financial performance in the past year. The company’s stock performance, however, has been struggling in recent weeks, with a 0.5% decrease on Wednesday being the latest indication that investors may be losing confidence in the company. Exxon Mobil is still considered an industry leader and its financials remain healthy, despite the market downturn.

The company has been able to maintain its competitive edge and solidify its position in the oil market by cutting operating costs and increasing efficiency, making it one of the most attractive investments in the sector. As volatile market conditions continue, Exxon Mobil will need to remain agile and responsive in order to keep its position at the top of the oil market. Investors should keep a close eye on XOM stock over the coming months as it navigates these turbulent times. 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

At GoodWhale, we have done a detailed analysis of EXXON MOBIL‘s financials. After assessing the company’s performance according to our Star Chart classification, we have determined that EXXON MOBIL falls into the ‘rhino’ category, indicating that the company has achieved moderate revenue or earnings growth. For investors looking to gain exposure to such a company, EXXON MOBIL is strong in dividend and has medium growth, profitability, and asset. Additionally, its high health score of 10/10 based on its cashflows and debt indicates that it is capable of sustaining future operations even in times of crisis. 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 global energy leader and the world’s largest publicly traded oil and gas company. Recent analysis on Exxon Mobil suggests that investors may be running into some trouble. Oil prices have been on a rollercoaster ride over the past year, and the geopolitical landscape has been unpredictable. As a result, Exxon Mobil’s stock price has plummeted and investors are uncertain as to where to go next.

Additionally, current market conditions have put pressure on Exxon Mobil to increase its operational efficiency and cut costs in order to remain competitive and turn a profit. This could mean reduced dividends, decreased investor returns, and possibly higher debt levels moving forward. Investors should continue to monitor the situation closely as changes in global energy prices and geopolitical landscape could have a significant impact on Exxon Mobil’s bottom line.