August 1, 2013
ExxonMobil, as we know it, came about from a merger in 1999. The original company, Imperial Oil, originated in Canada in the late 1800’s. Based on timeline history that can be viewed on the Exxon Mobil website, Imperial Oil as well as several other independent oil companies would ultimately be bought and taken over by the soon to be renamed Standard Oil. Running concurrently with Standard Oil in the early 1900’s was Mobil Oil. Mobil Oil would also be in positions to buy and take over smaller independent oil companies. In 1999 the two combined resources and merged into ExxonMobil. Industry and Competition
ExxonMobil is in the industry of oil and gas. They are considered one of the world’s largest traded international oil and gas companies in the public market. ExxonMobil maintains an overwhelming inventory of global oil and gas resources. They are considered one of the world’s primary players in refining and marketing petroleum products, and are establishing themselves as a chemical and technology company. ExxonMobil is currently operating in 47 countries in one of the above capacities as well as marketing to more than 120 countries (ExxonMobil, 2012, p4). Their portfolio currently includes a network of refineries, chemical businesses, and world-class projects that involve active exploration in 40 countries.
The financial statements support a positive investment decision; if you have patience and are not looking for a quick return. Historically, ExxonMobil has returned constant profits (Moskowitz, 2013, Table 1). Their financial statements support the claims that they know what they are doing not only with their industry, but with their assets. When you compare returns and ratios for ExxonMobil with their two nearest competitors, BP plc and Chevron Corporation, ExxonMobil continues to be in the lead and outperform the others in fundamental financial areas as noted by the returns posted (Moskowitz, 2013, Table 2)....
References: ExxonMobil Corporation. (2012). 2012 Financial and operating review. Retrieved from http://www.exxonmobil.com/Corporate/
Moskowitz, D. (2013). Is Exxon Mobil a good investment in any environment? Wall St. Cheat Sheet. Retrieved from http://wallstcheatsheet.com/stocks/is-exxon-mobil-a-good-investment-in-any-environment
Sharma, A. (2012). Investing in Exxon: Who should u follow? Buffett or Boone Pickens. The Motley Fool. Retrieved from http://beta.fool.com/theanalystblog/2012/04/25/investing-exxon-who-should-you-follow-buffett-or-boone-pickens
Figure 1. Taken from ExxonMobil Corporation 2012 Financial and operating review.
Table 1. Taken from Wall St. Cheat Sheet.
Table 2. Taken from Wall St. Cheat Sheet.
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