Analyst Note
| Allen Good, CFA |Exxon Mobil held its annual analyst day and as is typical, it held little new news, in large part because most strategic guidance items, including a reduction in long-term spending, were updated previously. But also, because Exxon did not announce a pivot away from its core oil and gas business as many peers have. While this might leave activist investors disappointed, we think it’s the right move and should lead to near-term outperformance, if not longer. Our fair value estimate and narrow moat rating are unchanged, leaving Exxon as our Best Idea in the sector.