Exxon Mobil Stock Fair Value – Exxon Mobil’s Merger With Pioneer and Upcoming Oil Price Hike Lead to Rating Upgrade

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Exxon Mobil ($NYSE:XOM), one of the largest publicly traded energy companies in the world, has seen a significant boost in its ratings following its recent merger with Pioneer and market expectations that oil prices will soon rise. The rating upgrade comes as no surprise, as the merger signals Exxon Mobil’s dedication to maintaining its position as a leader in the energy sector. It is primarily engaged in the exploration and production of crude oil and natural gas, as well as refining and marketing of these products.

Additionally, Exxon Mobil manufactures and markets petrochemicals and provides chemical products and services to industrial customers. Its portfolio of assets includes the world’s largest refineries, retail sites, and extensive pipelines. Exxon Mobil’s merger with Pioneer is seen as a strategic move to expand the company’s presence in the energy industry and to stay competitive amidst increasing competition. The added resources provided by Pioneer will help to increase Exxon Mobil’s production capacity and also give it a larger footprint in the international market. The anticipated increase in oil prices also serves as an added incentive for this merger. The combined companies’ economies of scale will help to create a more competitive and efficient operation that can benefit from higher prices. The rating upgrade for Exxon Mobil is a reflection of these developments and further demonstrates the company’s commitment to remaining a leader in the energy sector. With its merger with Pioneer secured and oil prices expected to rise, Exxon Mobil appears to be well-positioned for future success.

Market Price

Exxon Mobil has recently been upgraded by ratings agency S&P Global, which follows the company’s merger with Pioneer Natural Resources and the imminent oil price hike. On Thursday, Exxon Mobil’s stock opened at $101.5 and closed at $101.7, representing a 0.5% rise from the previous closing price of $101.3. This surge in the stock price can be attributed to the news that the company’s merger with Pioneer Natural Resources will be finalized in the coming weeks and that an oil price hike is imminent.

The merger will create a larger oil exploration and production platform, combining the two companies’ vast resources in shale acreage. The S&P Global upgrade to ‘Buy’ reflects this positive sentiment for the company’s long-term prospects. Live Quote…

About the Company

Income Snapshot

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

Cash Flow Snapshot

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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 Stock Fair Value

At GoodWhale, we take pride in providing a thorough analysis of financials for companies such as EXXON MOBIL. Through our proprietary Valuation Line, we have determined that the intrinsic value of EXXON MOBIL’s share is around $96.7. Currently, EXXON MOBIL stock is traded at $101.7, which is a fair price but overvalued by 5.2%. Therefore, investors may want to take this into consideration when making their decisions. 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 multinational oil and gas corporation with a global presence. The company has recently announced a merger with Pioneer Natural Resources, a Texas-based producer of natural gas, and is expecting rising oil prices due to increased global demand. As a result, many analysts and investors have upgraded their ratings on Exxon Mobil’s stock. The company’s commitment to efficient production and rigorous cost control is expected to help it capitalize on market shifts.

Exxon Mobil has also been actively expanding its operations into different sectors, such as chemicals and petrochemicals, to bolster its competitive advantage. Investors should pay close attention to the company’s activity in areas such as research and development, as it could significantly influence the stock’s performance in the future.