Skip to Content
Morningstar
Get 14 Days Free

Exxon Mobil Corp XOM

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Exxon Improves Cash Flow and Reduces Debt, but Increased Shareholder Returns Still on Hold

Allen Good, CFA Sector Strategist

Analyst Note

| Allen Good, CFA |

Exxon turned in a strong second quarter buoyed by a recovery in commodity prices and a record quarter from its chemical segment. Downstream improved but continued to be a drag due in part to planned maintenance and weak market conditions. Adjusted earnings improved to $4.7 billion from a loss of $3.0 billion last year. Meanwhile, operating cash flow surged to $10.3 billion from $1.5 billion the year before as debt fell another $2.7 billion during the quarter bringing the total reduction to $7 billion since year-end 2020. As a result, net debt to capital fell to 26.5% from 28.7% at the end of 2020. Our fair value estimate and narrow moat rating are unchanged.

Read Full Analysis

Company Profile

Business Description

ExxonMobil is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2020, it produced 2.3 million barrels of liquids and 8.5 billion cubic feet of natural gas per day. At the end of 2019, reserves were 15.2 billion barrels of oil equivalent, 58% of which were liquids. The company is the world's largest refiner with a total global refining capacity of 4.8 million barrels of oil per day and one of the world's largest manufacturers of commodity and specialty chemicals.

Contact
5959 Las Colinas Boulevard
Irving, TX, 75039-2298
T +1 972 940-6000
Sector Energy
Industry Oil & Gas Integrated
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type Distressed
Employees 72,000

Related

Stock Analyst Update
Exxon Improves Cash Flow and Reduces Debt
Our fair value estimate and narrow moat rating are unchanged, as increased shareholder returns remain on hold.
Allen Good
Commentary
The Week Ahead: Tesla, General Electric, and Facebook to Report Earnings
A long list of companies across several sectors will report.
Carole Hodorowicz
Our Picks
15 More Undervalued Stocks with Momentum
These narrow-moat names are all up twice as much as the market this year, yet remain undervalued by our metrics.
Susan Dziubinski
Rekenthaler Report
Index Funds Have Too Much Voting Power
At long last, indexing's detractors have a legitimate complaint.
John Rekenthaler
Sustainability Matters
The Battle at Exxon Was About More Than Board Seats
It brings shareholder-driven climate governance to the forefront.
Jackie Cook
Stock Analyst Update
Activist Wins Two Exxon Board Seats
Despite the victory for Engine No. 1, we do not expect a wholesale change in strategy.
Allen Good
Fund Spy
Medalist Managers Buy SPACs, Airlines, and Oil in 2021's First Quarter
Top managers looked ahead to a post-pandemic economy.
Jack Shannon
ETF Specialist
Not All Value Strategies Are Created Equal
Know what you own.
Daniel Sotiroff
Sustainability Matters
Hints of Sea Change in Big Fund Company ESG Proxy Votes
At midseason for 2021 proxy votes, signs of a jump in support.
Jackie Cook
Stock Analyst Update
Exxon Mobil's Earnings Bounce Back
Our fair value estimate and moat rating remain.
Allen Good
Rekenthaler Report
How Many Stocks Beat the Indexes?
Unlike the children of Lake Wobegon, most companies are below average.
John Rekenthaler
Commentary
The Week Ahead: Tesla, Microsoft, Boeing, Altria Group, and AbbVie to Report Earnings
The week ahead is packed with earnings reports from companies across all sectors.
Carole Hodorowicz
ETF Specialist
Value Has Bounced Back, but It Might Be Too Soon to Call It a Comeback
Is it the end of a long, dark, cold winter?
Ben Johnson
Our Picks
10 Solid Dividend-Paying Stocks on Sale
We think the payouts on these names are sustainable.
Susan Dziubinski
Sustainability Matters
ESG Doesn’t Thrive in Every Market Environment
Despite a subpar first quarter, the long-term case for ESG remains strong.
Dan Lefkovitz
US Videos
Vaccine Rollout Drives Energy's Rise
But the sector's current tailwinds are likely unsustainable, so investors should prioritize high-quality businesses with stable balance sheets.
Dave Meats
Fund Spy
Another Quarter of Gains for the U.S. Equity Market
Value drives U.S. equity market gains in the first quarter.
Claire Butz
Sustainability Matters
Why Sustainable Investors Should Keep an Eye on the SEC
The government plays a key role in ESG proxy voting.
Jackie Cook
Commentary
Looking Past the Pandemic: Stocks That Will Benefit From Economic Recovery
A few undervalued stocks remain, but many have already surged past fair value.
David Sekera
Stock Analyst Update
Exxon Mobil Trims Spending and Defends Dividend
The company is not planning on pivoting from its core oil and gas business.
Allen Good

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.