Why are some investors concerned about Exxon's latest earnings?

Why are some investors concerned about Exxon's latest earnings? (Part 1 of 7)

Exxon Mobil: An investor’s essential guide to the company

Exxon Mobil

Exxon Mobil (XOM) is the largest integrated oil and gas corporation in the world by various measures such as market capitalization ($393 billion), enterprise value ($415 billion), and total production (2013 total production of 4,175 thousands of barrels equivalent per day).

2014.02.05 - XOM Stock PriceEnlarge Graph

The company explores and produces oil and natural gas in its Upstream segment. It also refines, markets, and distributes crude oil, refined products, and natural gas in its Downstream segment. Finally, the company produces and markets petrochemicals in its Chemical segment.

XOM’s net income for the last 12 months ended December 31, 2013, totaled $32.6 billion, or $7.37 per share. Note: Metrics are as of February 4, 2014, end of day.

Currently, the company is trading at EV/2014E EBITDA (enterprise value over 2014 estimated earnings before interest, tax, depreciation, and amortization) of 5.3x, and price to 2014E Earnings of 11.9x (based on Wall Street analysts’ consensus).

The Realist Discussions

  • John

    Interesting series of articles. Some comment though. Regarding onshore concession in Abu Dhabi: add Total to the major IOCs (EM, BP, RDS and Total each own 9.75% (Partex owns a small percentage as well. ADNOC (majority share owner) will oversee ADCO operations until con
    ssion extension is finalized (sometime
    in 2014, most likely). Most references to concession expiry seem to imply ADNOC takeover. That is not the case.