Course:

Oil & Gas Industry Operation and Markets

Conducted by:

Duke University (via Coursera)

Assignment:

Oil and Gas Company Profile

Section 1: What the Company Does

• Exxon mobil Corporation is an international oil and gas exploration and production company.
Headquartered in Houston, it is one of the largest U.S. oil and gas companies based on equity market
capitalization.

• It is categorized as a publicly traded organization because its ownership is dispersed among the
general public in many shares of stock which are freely traded on a stock exchange/over the
counter markets.

• Exxon mobil exploration and production activities are concentrated in the following three geographic
regions:

1. United States
2. Middle East
3. Africa

• The following facts show why company is more dependent on demand for crude oil as compared to
raw natural gas:

1. One of the Largest producer of oil in worldwide.

2. Producing 6.3 million barrels per day of crude oil.
3. Refine more than 4.91 million barrels per day.

• it is among the top 10 US-based oil and gas companies in the world. (Source: as reported by Statista)

Section 2: How the Company Has Performed

Relative
Performance

• Among oil & gas stocks, Exxon Mobil (NYSE:XOM) is often viewed as a "bastion of safety" - a defensive
holding that can weather a most dire cyclical downturn and preserve (and even grow) its dividend.
•
• Indeed, since the beginning of the current downcycle in oil in mid-2014, Exxon continued to increase
its dividend per share, having stepped it up four times, from $0.63 per quarter in early 2014 to:
•
• $0.69 per quarter in 2014
• $0.73 per quarter in 2015
• $0.75 per quarter in 2016
• $0.77 per quarter in 2017
• Exxon's stock is also one of the best performing among Oil Majors since the beginning of the
downcycle in oil, matched only by Chevron (NYSE:CVX). Even though Exxon's stock is down
approximately 20% since July 2014, the decline is a reasonable price to pay, one might argue, given the
huge drop in oil prices from over $100 per barrel in the first half of 2014 to less than $50 per barrel
currently.. (Source: BARRON'S - US Edition)
 Grown, Shrunk or Unchanged?
ExxonMobil’s adjusted earnings rose from $3.7 billion in the fourth quarter of 2017 to $6.4 billion in the fourth
quarter. The earnings growth was due to a rise in upstream and downstream earnings. The earnings growth was
partially offset by the fall in chemicals earnings YoY (year-over-year) in the fourth quarter. (Source: Financial and
Operational Results 2019)

Section 3: What the Successes Have Been for the Company

Significant successes over the past few years

(Source: Financial and Operational Results 2019)

 Leads the industry in workforce safety with a 12 percent reduction in lost-time incident rate on average,
each year since 2000.
 Reduced direct greenhouse gas emissions from its operations.
 Invested more than $1.5 billion in the past five years to increase energy efficiency and reduce
greenhouse gas emissions.
 Achieved zero spills from ExxonMobil-operated and long-term chartered marine vessels in 2008 and
reduced the number of spills greater than one barrel by 60 percent since 2001.
 Strengthened corporate governance by enhancing the role of the presiding director. The presiding
director has the authority to call and chair executive sessions of non-employee directors, and chairs all
board meetings in the absence of the chairman. The presiding director reviews board meeting topics,
agendas and schedules with the chairman prior to distribution to the board, which consists of one
employee and 10 non-employees.
 Provided $225 million in combined corporate giving in the form of cash, goods and services worldwide.
 Employed a variety of economic support and incentive programs for capacity building – collectively
referred to as national content development. In Angola for example, ExxonMobil enhanced local
capacity through business development and expenditures on local goods and services which totaled
$1.5 billion.
Plans for the upcoming several years

(Source: Motely fool 2019)

• ExxonMobil plans to take a multipronged approach to double its profitability in the coming years
by expanding its upstream, downstream, and chemicals businesses. The oil giant expects to
invest $24 billion on capital projects this year, with that ramping up to $28 billion in 2019 before
averaging around $30 billion annually in the 2020 to 2025 time frame.

• Exxon's strategic growth plan is investing to expand the capacity of its refining and chemicals
businesses, which are both expected to double their earnings by 2025. The company plans to spend
more than $20 billion to expand these operations in the U.S. alone in the coming years. One project
it's considering is expanding its refinery in Beaumont, Texas, which could nearly double that facility's
capacity to more than 665,000 barrels per day by 2022.

• Exxon also plans to grow its downstream operations overseas. The company is investing in some
projects at its Rotterdam refinery in the Netherlands that should double that facility's margins by
early next year. Exxon also has refinery projects planned in Singapore, Belgium, and the U.K. that
should start up in the 2020 to 2024 time frame. Meanwhile, the company has a petrochemical
complex in Asia that should also come online during that period.. Furthermore, it will focus on
lowering its costs which over time management believes will correlate to increasing and decreasing
oil prices.
 Bibliography

Company's official website

https://corporate.exxonmobil.com/

Wikipedia, the free encyclopedia

https://en.wikipedia.org

Google Finance

https://www.google.com/finance?catid=us-TRBC%3A50102020&ei=iZ7IVtmXNNfKuASdgZ24AQ

Statista, The Statistics Portal

http://www.statista.com/

BARRON'S (U.S. Edition)

http://blogs.barrons.com/

Moltey fool
https://www.fool.com/investing/2018/12/16/where-will-exxonmobil-be-in-5-years.aspx