Blog: You, us, everyone

Welcome to our blog – a place to discuss and exchange thoughts and ideas about iX-7 Asset Management SA, the stock markets and all matters relating to wealth management.


Article
Tuesday, July 8, 2025 by Christoph Schmid|Comment 0
within category XOM,Exxon,Strat_Bord,Integrated Energy,Low Carbon Solutions,Upstream Growth,Dividend Aristocrat,Energy Transition,Energy Infrastructure,Chemicals & Refining,Biofuels,Hydrogen

ExxonMobil is one of the world’s largest vertically integrated oil and gas companies, headquartered in Irving, Texas. Founded in 1999 from the merger of Exxon and Mobil, the company operates across the entire hydrocarbon value chain, including upstream exploration and production, midstream logistics, and downstream refining and chemicals. With a growing focus on low-carbon solutions, carbon capture, and biofuels, ExxonMobil is actively investing in energy transition technologies while maintaining its core profitability in fossil fuels.

 

📊 Company Specs for Investment Decision

✅ Value Drivers

  1. Integrated Business Model & Scale
    • ExxonMobil’s size and vertical integration provide operational efficiency, supply chain resilience, and cost advantages across its global footprint.
    • Balanced operations across upstream (E&P), downstream (refining/chemicals), and energy products offer cyclical protection.
  2. Disciplined Capital Allocation & Cost Control
    • Focused on capital efficiency with high-grading of upstream assets and digitization of operations.
    • Aggressive cost reductions and focus on high-return projects in Guyana, Permian Basin, and LNG.
  3. Shareholder Returns
    • Strong free cash flow generation, enabling consistent dividend payments (yield ~3.3%) and share buybacks.
    • Dividend aristocrat with 40+ years of increases.
  4. Energy Transition Strategy
    • $17B commitment (2022–2027) toward Low Carbon Solutions: carbon capture, hydrogen, and advanced biofuels.
    • Partnerships with industry and government to develop large-scale decarbonization infrastructure.
  5. Guyana as a Growth Engine
    • The offshore Guyana development (with partner Hess) is one of the world’s most prolific new oil plays, delivering high-margin, low-cost production through 2030 and beyond.

 

⚠️ Risks & Considerations

  • Commodity Price Volatility: earnings are sensitive to oil and gas prices.
  • Energy Transition Pressure: regulatory, investor, and legal scrutiny over fossil fuel reliance.
  • Geopolitical Exposure: operations in politically sensitive regions (e.g., Russia, Guyana).
  • ESG Headwinds:  risk of divestment by institutions focused on sustainable investing.

 

💰 Key Financial Metrics (FY2023)

Metric

Value

Notes

Revenue

~$343B

Reflects strong pricing and volumes

Net Income

~$36B

Solid performance despite price softening

Free Cash Flow

~$36B

Funds dividends and buybacks

Dividend Yield

~3.3%

40+ years of increases

Net Debt / EBITDA

~0.8x

Strong balance sheet

🏁 Investment Recommendation: BUY (Value + Yield + Energy Transition Optionality)

ExxonMobil offers a strong value proposition for income and long-term growth, backed by disciplined operations, shareholder returns, and exposure to next-gen low-carbon technologies. The Guyana project and LNG expansion provide low-cost production growth, while its growing carbon capture business positions it well for a measured energy transition. XOM is ideal for investors seeking defensive exposure to energy, attractive yield, and long-term optionality.

Target Investor Profile: Dividend-focused investors, value-oriented portfolios, and those looking to hedge inflation via energy exposure.

 

Comments
Not commented yet? Be the first to post a comment.
Current pageTotal pages 0
Comments per page
select
Add a comment
Author:
Email: Help
Related articles
Monday, August 12, 2013
Description: Burckhardt Compression is an industrial group focusing on reciprocating compressors. The company runs two major business units: a) manufacturing (including installation), and b) custo…
More …

Monday, August 12, 2013
Company profile, investment opportunity and asset management integration: Metric Rating Operational risks: Above avera…
More …

Monday, June 3, 2013
What are the drivers and indicators of growth in the consumer electronics sector? Growth drivers: Personal disposable income, Consumer confidence, Consumer spending, Inn…
More …
iX-7 Asset Management SA, access to financial information is a right. Knowledge is power.