ExxonMobil announced last week a major joint-venture with Rosneft, an entity controlled by the Russian government. Although details are scarce, Exxon will join with Rosneft in exploring for and producing oil in the Russian arctic and Black Sea, while Exxon will allow Rosneft to join it on certain new projects in the United States. This … Read more
In his book, The Prize, Daniel Yergin described plastics and chemicals as “the bricks and mortar of contemporary civilization.” Today, chemicals touch more than 95% of manufactured goods and virtually every sector of the modern economy. The petrochemical business is growing, particularly in Asia, which accounts for more than half of the world’s petrochemical demand. … Read more
Rex Tillerson, the CEO of ExxonMobil, keeps a low profile. In fact, there is no picture of Tillerson in his official corporate biography as there is for other top company executives. Which is not necessarily a bad thing–we have an aversion to the egotistical CEO whose picture appears on the cover of the annual report … Read more
Negative sentiment abounds in ExxonMobil with several notable investors voicing negative views on the company. Their argument states that ExxonMobil has failed to replace reserves and is borrowing its dividend. Additionally, the ExxonMobil bears believe that the company is effectively in liquidation because the company is not replacing its reserves. Looking at ExxonMobil’s reserves and … Read more
One month ago, we sold our position in ConocoPhillips and replaced it with a larger position in ExxonMobil. After we reviewed 2009’s results, we determined that ExxonMobil’s current price offered a substantially larger discount to fair value than ConocoPhillips. Additionally, we believe there is materially less risk in owning ExxonMobil than ConocoPhillips. For the supermajor … Read more
ExxonMobil is the largest global integrated oil and gas company that explores, produces, and refines oil and natural gas around the world. In 2008, ExxonMobil produced 2.4 million barrels of oil and 9.1 billion cubic feet of natural gas a day. At year-end 2008, reserves stood at 21.1 billion barrels oil equivalent (BOE), 59% of … Read more