Who is ExxonMobil Corporation? A Useful Guide

Exxon Mobil Corporation, also known as ExxonMobil, or XMO is an international oil and gas corporation in America with headquarters in Irving, Texas. ExxonMobil is incorporated in New Jersey and it is considered John D. Rockefeller’s Standard Oil largest direct descendant. It was founded on November 30, 1999 by the person who merged Exxon, previously the Standard Oil Company of New Jersey, with Mobil, previously the Standard Oil Company of New York. ExxonMobil has 4 major brands. These are Exxon, Mobil, Esso, and ExxonMobil Chemical.

ExxonMobil’s management is quite fascinating. The company’s CEO, Rex Tillerson, joined the company in 1975 as an engineer. Since then, he has worked his way up the ranks to his present position, which he obtained in 2006. It is interesting to note that Rex Tillerson was chosen by President Donald Trump as the Secretary of State on 1st February 2017. During his tenure, there was a considerable drop in new applications to work for the Foreign Service while many career ambassadors and ministers departed. By March 2018, Tillerson was dismissed by Trump and was replaced by Central Intelligence Agency (CIA) director Mike Pompeo.

The company deals with the investigation and production of crude oil and natural gas, as well as with the manufacturing of petroleum products. The company also distributes petrochemicals including olefins, aromatics, polypropylene plastics, and a broad variety of specialty products. Moreover, ExxonMobil transports and sells crude oil and natural gas, and is involved with electric power generation facilities. Last but not least, the company now operates in the United States, Canada, South America, Europe, Africa, Asia, and Australia.

Awards and numbers

From 1996 to 2017 ExxonMobil varied from the 1st to 6th largest publicly traded company based on market capitalisation. It still is nevertheless, one of the world’s largest companies by revenue. In 2012, 64% of ExxonMobil’s partial earnings was in natural gas exploration and production, 28% in processing and marketing and 8% in chemicals. The company ranked 5th on Forbes’ Global 2000 list in 2013 while during the Forbes Global 2000 list in 2016, the company ranked 3rd worldwide. In 2017, it was the 10th most profitable company in the Fortune 500. In 2018, ExxonMobil ranked 2nd in the Fortune 500 rankings of the largest United States corporations based on total revenue.

The Dow is the most famous and basically the largest stock market index of the 30 most prominent companies in the U.S. The Nasdaq is another stock market where technology shares are listed. The S&P is a group of 500 companies.

Different institutions hold around 55.56% of the company’s shares. Since March 2019, the Vanguard Group with 8.15%, the BlackRock with 6.61%, and the State Street Corporation with 4.83% are ExxonMobil’s largest shareholders. Among the world’s Big Oil companies, ExxonMobil is one of the largest. In 2007, there was daily production of 3.921 million barrels of oil equivalent (BOE) while in 2008, this was almost 3% of world production, which is less than some of the largest state-owned petroleum companies.

ExxonMobil is 14th in the world when ranked by oil and gas reserves. This is actually less than 1% of the total. The company’s reserves reached 20 billion BOE by the end of 2016 while the 2007 rates of production were expected to last over 14 years. ExxonMobil has 37 oil refineries in 21 different countries making a combined daily refining capacity of 6.3 million barrels. With that being said, ExxonMobil is the 7th largest refiner in the world. This title was also associated with Standard Oil since its incorporation in 1870.

Why so special?

ExxonMobil was in an agreement with the Russian company Rosneft in August 2011, which would allow the companies to jointly undertake exploration and development of hydrocarbon resources in Russia, America and other countries around the globe. ExxonMobil and Rosneft would also participate in technology and sharing experiences activities.

The agreement involved funding the exploration of the Kara Sea and Black Sea with $3.2 billion. The latter are amongst the most promising and not well-explored offshore areas globally. ExxonMobil and Rosneft also made an agreement with which they could conduct a mutual study for developing tight oil resources in Western Siberia, and for creating an Arctic Research and Design Centre for Offshore Developments.

As of June 2010, XOM bought XTO Energy, Inc. with an all-stock deal valued at $40.5 billion. 2,471 million BOE were added because of this great deal. ExxonMobil’s technical expertise would open up additional resource possibilities in the upcoming years based on this acquisition.

ExxonMobil has lasted through time because of its enduring quality. The company has presently almost twice as many assets as liabilities and is currently making over $400 billion in revenue yearly.

If you looked at some of the company’s impressive numbers, you could easily be convinced of its success. For instance, in 2012 the company made $453,123 sales and other operating revenue while its net income reached $44,880 and its total assets $333,795. Looking at the Return on Average Capital Employed for capital-intensive companies such as oil, which is an equally important area, the company shines here as well. The company actually managed to make higher profits from smaller amounts of cash compared to other competitors. Regarding shareholder returns, these are also super impressive for XOM. The company now offers a 2.66% dividend yield.

Criticism

After the 1989 Exxon Valdez oil spill in Alaska, ExxonMobil had undergone criticism for its slow reaction to cleanup efforts. This was considered to be one of the worst oil spills in terms of damage to the environment worldwide. ExxonMobil is well-known for its continuous insistence on climate change denial and against the scientific public opinion that global warming is a result of the burning of fossil fuels. The company has also been targeted for accusations regarding dealing with human rights issues inappropriately, for its influence on American foreign policy, as well as for its impact on the future well-being of nations.

History and more

During the last 135 years, ExxonMobil has developed from being a regional marketer of kerosene in America to one of the largest publicly traded petroleum and petrochemical enterprises around the globe. As of 2021, the company operates in multiple countries of the world and is popular for its brand names Exxon, Esso and Mobil. ExxonMobil creates the products that drive modern transportation, power cities and provide petrochemical building blocks which result in thousands of consumer goods.

Disclaimer:
This information is not considered as investment advice or an investment re commendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

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