XOM’s stock performance
ExxonMobil’s (XOM) stock price, amid volatility, has fallen in 2015. XOM stock lost 16% in the trailing 12 months ended January 19, 2016. During the same period, XOM’s peers Chevron (CVX), Royal Dutch Shell (RDS.A), and BP (BP) lost 23%, 40%, and 23%, respectively.
XOM’s downward spiral in 2015 saw some respite in the latter half of the year. The positive spikes were due to the announcement of oil production from its project in Nigeria in September 2015 and its declaration of a fourth-quarter dividend in October 2015.
This led to the stock price rising. After that, better-than-estimated 3Q15 results pushed the stock higher. Following the results, the stock price continued to remain volatile. It has been trending lower as oil touches multiyear lows.
ExxonMobil’s capex plan
In 2015, ExxonMobil was expected to incur capital expenditure (or capex) of $34 billion, the bulk of which was to go toward upstream projects. In 9M15, XOM incurred $23.6 billion in capex. The remaining capex was likely to be incurred in 4Q15. The company expects to incur capex of less than an average of $34 billion per year in 2016 and 2017.
In a lower oil price scenario, ExxonMobil is focusing on optimizing its integrated model. XOM is investing in its value chain to increase returns from refined products. Plus, XOM plans to utilize its downstream assets to augment the use of its upstream and midstream capabilities. It will aim to lower costs through the effective execution of projects in the upstream segment.
If you are looking for exposure to integrated energy stocks, you can consider the iShares Global Energy ETF (IXC). The ETF has XOM, CVX, RDS.A, and BP in its portfolio. IXC has ~59% exposure to the integrated energy sector.