Undervalued-Stock.com issues BUY rating for Exxon Mobil Corp (XOM)
Exxon Mobil Corp
Energy : Oil& Gas - Integrated
Undervalued-Stock.com issues a BUY rating for one or more of the following reasons:
- earning history is stable
- Price to earnings (P/E, PE) ratio is below its average PE ratio for the last 10 years
- selling at a price below its book value
- trailing 3-years earnings have risen over the past 10 years
- credit rating is AAA, AA, or A
- did not have a loss during the last recession
- Price to book ratio is below its historical average
- long term earnings growth increase
- strong competitive position
- successful business execution
- business type and size
[2010 ANNUAL REPORT (10-K) EXCERPT]
Exxon Mobil Corporation was incorporated in the State of New Jersey in 1882. Divisions and affiliated companies of ExxonMobil operate or market products in the United States and most other countries of the world. Their 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. ExxonMobil is a major manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a wide variety of specialty products. ExxonMobil also has interests in electric power generation facilities. Affiliates of ExxonMobil conduct extensive research programs in support of these businesses.
Exxon Mobil Corporation has several divisions and hundreds of affiliates, many with names that include ExxonMobil, Exxon, Esso or Mobil. For convenience and simplicity, in this report the terms ExxonMobil, Exxon, Esso and Mobil, as well as terms like Corporation, Company, our, we and its, are sometimes used as abbreviated references to specific affiliates or groups of affiliates. The precise meaning depends on the context in question.
On June 25, 2010, ExxonMobil acquired XTO Energy Inc. (“XTO”) by merging a wholly-owned subsidiary of ExxonMobil with and into XTO (the “merger”), with XTO continuing as the surviving corporation and a wholly-owned subsidiary of ExxonMobil. Each share of XTO common stock was converted into the right to receive 0.7098 shares of common stock of ExxonMobil plus cash in lieu of fractional shares. The merger combines XTO’s high-quality unconventional gas and oil shale reserve base and technical expertise in unconventional development with ExxonMobil’s research and development expertise, project management and operational skill, global scale, and financial capacity. Details of the merger transactions are contained in the Financial Section of this report under the following: “Note 19: Acquisition of XTO Energy Inc.”
Throughout ExxonMobil’s businesses, new and ongoing measures are taken to prevent and minimize the impact of our operations on air, water and ground. These include a significant investment in refining infrastructure and technology to manufacture clean fuels as well as projects to monitor and reduce nitrogen oxide, sulfur oxide, and greenhouse gas emissions and expenditures for asset retirement obligations. ExxonMobil’s 2010 worldwide environmental expenditures for all such preventative and remediation steps, including ExxonMobil’s share of equity company expenditures, were about $4.5 billion, of which $1.9 billion were capital expenditures and $2.6 billion were included in expenses. The total cost for such activities is expected to remain in this range in 2011 and 2012 (with capital expenditures approximately 40 percent of the total).
The energy and petrochemical industries are highly competitive. There is competition within the industries and also with other industries in supplying the energy, fuel and chemical needs of both industrial and individual consumers. The Corporation competes with other firms in the sale or purchase of needed goods and services in many national and international markets and employs all methods of competition which are lawful and appropriate for such purposes.
Operating data and industry segment information for the Corporation are contained in the Financial Section of this report under the following: “Quarterly Information”, “Note 17: Disclosures about Segments and Related Information” and “Operating Summary”. Information on oil and gas reserves is contained in the “Oil and Gas Reserves” part of the “Supplemental Information on Oil and Gas Exploration and Production Activities” portion of the Financial Section of this report.
ExxonMobil has a long-standing commitment to the development of proprietary technology. We have a wide array of research programs designed to meet the needs identified in each of our business
Item 6. Selected Financial Data.
| Years Ended December 31, | ||||||||||||||||||||
| 2010 (1) | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
| (millions of dollars, except per share amounts) | ||||||||||||||||||||
| Sales and other operating revenue (2) | $ | 370,125 | $ | 301,500 | $ | 459,579 | $ | 390,328 | $ | 365,467 | ||||||||||
(2) Sales-based taxes included. | $ | 28,547 | $ | 25,936 | $ | 34,508 | $ | 31,728 | $ | 30,381 | ||||||||||
| Net income attributable to ExxonMobil | $ | 30,460 | $ | 19,280 | $ | 45,220 | $ | 40,610 | $ | 39,500 | ||||||||||
| Earnings per common share | $ | 6.24 | $ | 3.99 | $ | 8.70 | $ | 7.31 | $ | 6.64 | ||||||||||
| Earnings per common share - assuming dilution | $ | 6.22 | $ | 3.98 | $ | 8.66 | $ | 7.26 | $ | 6.60 | ||||||||||
| Cash dividends per common share | $ | 1.74 | $ | 1.66 | $ | 1.55 | $ | 1.37 | $ | 1.28 | ||||||||||
| Total assets | $ | 302,510 | $ | 233,323 | $ | 228,052 | $ | 242,082 | $ | 219,015 | ||||||||||
| Long-term debt | $ | 12,227 | $ | 7,129 | $ | 7,025 | $ | 7,183 | $ | 6,645 | ||||||||||
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