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Exxon Mobil Corp XOM

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Exxon’s 2020 Analyst Day: Full Speed Ahead

Allen Good, CFA Sector Strategist

Analyst Note

| Allen Good, CFA |

Investors looking for Exxon to use its annual analyst day to revise its investment plans in the face of a tough macroenvironment were left disappointed. Outside a modest slowing in the Permian this year and next, the company’s long-term plans remain intact. That includes an increase in capital spending from 2019’s $31 billion to about $33 billion this year and a range of $30 billion-$35 billion through 2025. The result, depending on market conditions, could ultimately be a doubling of earnings from 2017 levels by 2025 as well as growth in free cash flow and improvement in returns. Our fair value estimate and narrow moat are unchanged.

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Company Profile

Business Description

ExxonMobil is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2019, it produced 2.4 million barrels of liquids and 9.4 billion cubic feet of natural gas per day. At the end of 2019, reserves were 22.4 billion barrels of oil equivalent (including 3.8 billion for equity companies), 65% of which are liquids. The company is the world's largest refiner with a total global refining capacity of 4.7 million barrels of oil per day and one of the world's largest manufacturers of commodity and specialty chemicals. It operates its business divisions in North and South America, Europe, the Middle East, North and sub-Saharan Africa, and Asia-Pacific.

Contact
5959 Las Colinas Boulevard
Irving, TX, 75039-2298
T +1 972 940-6000
Sector Energy
Industry Oil & Gas Integrated
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type Hard Assets
Employees 74,900

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