XOM

Exxon Mobil Corp

Energy


Presented:12/04/2015
Price:$78.86
Cap:$330.42B
Current Price:$120.35
Cap:$534.69B

Presented

Date12/04/2015
Price$78.86
Market Cap$330.42B
Ent Value$347.66B
P/E Ratio16.64x
Book Value$41.01
Div Yield2.92%
Shares O/S4,190.00M
Ave Daily Vol14,203,780
Short Int1.10%

Current

Price$120.35
Market Cap$534.69B
Exxon Mobil Corp. explores, develops and distributes crude oil and natural gas. The company through its divisions and affiliated companies, engages in its principal business, is energy, involving exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products. It manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a variety of specialty products. The company also has interests in electric power generation facilities. It operates business under three segments: Upstream, Downstream and Chemical. The Upstream segment is organized and operates to explore for and produce crude oil and natural gas. The Downstream segment manufactures and sells petroleum products. The refining and supply operations encompasses global network of manufacturing plants, transportation systems, and distribution centers provides fuels, lubricants, and other high-value products and feedstocks to customers. The Chemical segment operates to manufacture and sell petrochemicals. It supplies olefins, polyolefin's, aromatics, and a wide variety of other petrochemicals. The company operates and markets products in the U.S. and most other countries of the world. Exxon Mobil was founded by John D. Rockefeller in 1882 and is headquartered in Irving, TX.

Publicly traded companies mentioned herein: Anadarko Petroleum Corporation (APC), Exxon Mobil Corporation (XOM)

Highlights

With shares of Exxon Mobil (XOM) trading at ~$78 the presenter sees a favorable risk/ reward setup for bears. He is short and said the stock appears to be expensive at just over 19x consensus 2016 earnings forecasts. If the price of oil remains depressed, XOM’s earnings will likely fall short of Street estimates and the multiple could contract. Additionally, management could pull the trigger on a large acquisition that would send XOM shares lower in the short run. If his thesis plays out as expected, XOM shares could see $70 near term and then possibly the high $50s over a longer time horizon.

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Idea Discussion

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