Exxon Mobil’s Board of Directors has announced a $3 billion share buyback program. This purchase of common shares will take place during this quarter. This amount represents just over 1 percent of all outstanding shares of XOM stock. The stock remains down nearly 15 percent for the year and management seems to think it makes sense to put some of its cash to use soaking up some outstanding shares. With a dividend over 3 percent, XOM seems like a really nice long term buy right here. That said, with inflation worries on the horizon, it may be less appealing to earn a dividend like that these days.
dividend, outstanding shares, share buyback
There is much ado about the weakness of the commodity sector, in particular oil, right now. Fears of a faltering global economy seem to be driving all commodities, with the exception of gold down. The reality is, however, perhaps much different. One of the first reasons is a potential squeeze on supply because of the BP oil spill. Exxon investors are in a good position to gain from this unfortunate accident. The second reason is the potential for massive inflation because of the American Federal Reserve’s massive growth in the monetary base. These two factors really could work independent of a faltering economy to push oil and the energy sector back up, making ExxonMobil a particularly nice looking investment right now.
bp, commodities, economy, gold, inflation, investment, oil spill
You may find it hard to believe, but things are looking pretty good for Exxon Mobil stock. Here you have a company that is trading at a lower price than 1 year ago despite improving its balance sheet and dividend (right now about 3 percent!). In addition, the company’s acquisition of XTO Energy has the potential to offer continued growth for a company that has already been doing just that. I think that the company may actually be able to take advantage of the BP situation because of its solid balance sheet. BP may find itself in a position of needing to sell off assets – Exxon Mobil is a likely purchaser of said assets. Given these reasons and its attractive valuation, I think Exxon Mobil represents a good value and income investment play.
balance sheet, bp, income, investment, value, xto
Increasing polypropylene demand is causing Exxon Mobil to increase its production. Exxon’s Lillebonne, France facility will increase its capacity by 45,000 tons. This European move comes on the heels of increased production at facilities in Asia and North America. Ironically, one of the plant’s biggest customers is the auto industry. Not an area you immediately think of as spurring growth.
auto industry, demand, europe, france, polypropylene, production
Exxon Mobil Corporation announced yesterday that the company will be boosting processing of natural gas at its Piceance Basin location. The company sees ‘steady’ increase in supplies to US markets through the use of efficient technologies. The company currently processes 100 million cubic feet per day. Total estimate reserves in the Piceance Basin are believed to be 45 trillion cubic feet. The Piceance Basin is located in northwestern Colorado.
colorado, cubic feet, natural gas, Piceance Basin, processing
Today Exxon stock fell with the rest of the market, but investors seemed to be saying a rise was coming. Exxon stock was one of the money flow leaders in the Dow Jones with most buying on weakness. The up-down ratio was 151/100. This shows that the value of trades on the uptick was over 50 percent higher than those trading the oil company giant on the down tick. This is generally a bullish signal for Exxon and the oil market in general.
dow jones, exxon stock, money flow, oil company, uptick
The 9th Circuit Court of Appeals has ruled that Exxon Mobil Corporation must pay court costs and the built up interest fees in the ExxonValdez class-action case. This issue was not addressed in the Supreme Court ruling that cut the original ruling against Exxon $5 billion by nearly 90 percent. The rate of interest to be applied is 5.9 percent. This brings the two parties in this suit one step closer to a final resolution.
9th Circuit Court, class-action, exxon mobil corporation, ExxonValdez, supreme court
Exxon Mobil stock had a strong year, of course. Now comes time for it to share its prpfits with the community. The company will be giving nearly $400,000 to the University of Houston. The company’s educational matching gift program combines the generosity of the company and its employees to donate around $36 million to 900 different colleges and universities each year.
community, exxon mobil, profits, university of houston
As Exxon begins work on its Alaska gas pipeline, it announced today that it would work with TransCanada Corporation. These two energy companies will work to deliver clean energy to markets south of Alaska. The pipeline is seen as becoming an integral part of energy movement from the Alaskan area to the continental United States.
alaska, clean energy, exxon, gas, pipeline, transcanada
Exxon Mobil will begin exploring in deep water for oil in Turkey. The Turkish government agreed to let Exxon work with Türkiye Petrolleri Anonim Ortakl??? (TPAO) in the Black Sea. This new opportunity presents a range of potential upside for Exxon stock investors. However, the agreement comes at a cost of a 50 percent revenue share with TPAO, the Turkish government oil company.
black sea, exploration, exxon mobil, tpao, turkey
