Latest news with #ExxonMobilCorporation
Yahoo
18-05-2025
- Business
- Yahoo
Exxon Mobil Corporation (XOM) Partners with the UAE to Expand the Country's Oil Production Capacity
It was recently revealed that the American oil and gas company, Exxon Mobil Corporation (NYSE:XOM) has partnered up with ADNOC to expand the UAE's oil production capacity. Let us shed some light on this development. Exxon Mobil Corporation (NYSE:XOM) is one of the largest integrated fuels, lubricants, and chemical companies in the world. The company operates facilities and markets products around the globe and explores for oil and natural gas on six continents. It was recently revealed that the oil supermajor will work with Abu Dhabi National Oil Company (ADNOC) to expand the capacity of the UAE's Upper Zakum field, as part of multiple strategic agreements that could potentially enable $60 billion of U.S. investments in UAE energy projects. Though ADNOC has not specified the new capacity target, the site (where Japan's Inpex Corp. is also a partner) can currently produce more than 1 million barrels per day (bpd). The strategic move comes as part of the multiple strategic agreements that could potentially enable $60 billion of U.S. investments in UAE energy projects, following President Trump's recent visit to his allies in the Middle East. Sultan Al Jaber, Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, stated: "The deep-rooted bilateral relationship between the UAE and the US is underpinned by our shared commitment to enabling energy abundance and we are reinforcing this commitment through these agreements with US energy majors. We see significant opportunities for further UAE-US partnerships across the energy-AI nexus and we look forward to working with our American partners to unlock long-term sustainable value and drive socioeconomic progress.' Exxon Mobil Corporation (NYSE:XOM) is working tirelessly to expand its total global output, despite the current market volatility. The company's global production in the first quarter of 2025 came in at 4.55 million barrels per day, up 20% YoY, with a target to achieve close to 5.4 million boe/d in 2030. Exxon also topped profit estimates during the quarter, generated an industry-leading $13 billion in cash flow from operations, and distributed $9.1 billion to its shareholders. So it shouldn't come as a surprise that the stock was recently included in our list of the 13 Best Energy Stocks to Buy Right Now. While we acknowledge the potential of XOM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XOM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None. Sign in to access your portfolio
Yahoo
18-05-2025
- Business
- Yahoo
Exxon Mobil Corporation (XOM) Partners with the UAE to Expand the Country's Oil Production Capacity
It was recently revealed that the American oil and gas company, Exxon Mobil Corporation (NYSE:XOM) has partnered up with ADNOC to expand the UAE's oil production capacity. Let us shed some light on this development. Exxon Mobil Corporation (NYSE:XOM) is one of the largest integrated fuels, lubricants, and chemical companies in the world. The company operates facilities and markets products around the globe and explores for oil and natural gas on six continents. It was recently revealed that the oil supermajor will work with Abu Dhabi National Oil Company (ADNOC) to expand the capacity of the UAE's Upper Zakum field, as part of multiple strategic agreements that could potentially enable $60 billion of U.S. investments in UAE energy projects. Though ADNOC has not specified the new capacity target, the site (where Japan's Inpex Corp. is also a partner) can currently produce more than 1 million barrels per day (bpd). The strategic move comes as part of the multiple strategic agreements that could potentially enable $60 billion of U.S. investments in UAE energy projects, following President Trump's recent visit to his allies in the Middle East. Sultan Al Jaber, Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, stated: "The deep-rooted bilateral relationship between the UAE and the US is underpinned by our shared commitment to enabling energy abundance and we are reinforcing this commitment through these agreements with US energy majors. We see significant opportunities for further UAE-US partnerships across the energy-AI nexus and we look forward to working with our American partners to unlock long-term sustainable value and drive socioeconomic progress.' Exxon Mobil Corporation (NYSE:XOM) is working tirelessly to expand its total global output, despite the current market volatility. The company's global production in the first quarter of 2025 came in at 4.55 million barrels per day, up 20% YoY, with a target to achieve close to 5.4 million boe/d in 2030. Exxon also topped profit estimates during the quarter, generated an industry-leading $13 billion in cash flow from operations, and distributed $9.1 billion to its shareholders. So it shouldn't come as a surprise that the stock was recently included in our list of the 13 Best Energy Stocks to Buy Right Now. While we acknowledge the potential of XOM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XOM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
Was Jim Cramer Right About Exxon Mobil (XOM)?
We recently published a list of . In this article, we are going to take a look at where Exxon Mobil Corporation (NYSE:XOM) stands against other stocks that Jim Cramer discussed 12 months ago. During a recent episode of Mad Money, which aired on Friday, the 9th of May, Jim Cramer urged investors to stop chasing hot stocks blindly and instead start with the most fundamental question of all: what are you investing for? 'Far too often people will invest in the stock market with the simple poorly defined goal of making money. That's right. Poorly defined goal. Yeah, we all want to make money. I want it. You want it. But how quickly do you want that return? What are you willing to risk in order to get there? How much can you even afford to risk in the first place?' READ ALSO: and . He stressed the importance of matching your stock choices to your actual financial goals such as retirement, home purchase, and college tuition, rather than treating all money as interchangeable. This, he explained, is the cornerstone of suitability: 'You simply can't know which stocks you should buy if you haven't taken the time to really consider what your objectives are. That's the foundation of good investing judgment.' Cramer closed the segment by reminding viewers that even though the U.S. remains one of the best markets for long-term growth, discipline must come before stock picking: 'America remains a growth country… But please get to know yourself before you jump down the rabbit hole of getting to know individual companies.' For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during Mad Money episodes that aired on the 7th and 8th of May 2024. We then calculated their performance for the past 12 months, until May 7th, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey's Q4 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them. Please note that this article mentions Jim Cramer's previous opinions and may not account for any changes to his opinions regarding the stocks that are mentioned. It is primarily an examination of how his previously provided opinions have panned out. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Aerial view of a major oil rig in the middle of the sea, pumping crude that older episode, Cramer took a question about Exxon Mobil Corporation (NYSE:XOM) from an investor wondering whether to reallocate into other energy dividend plays after receiving Exxon shares via a merger. Cramer supported a partial rotation while keeping core exposure. Here's his analysis: 'You make it so hard on me, because the first two.. you know I like those dividends. ET and NPLX have fabulous dividends. But you know what, here's what you're going to do: you're going to sell a quarter of the Exxon and put it in ET, and a quarter in NPLX. Don't do the HUT, you don't get the dividend. Keep the other half with Exxon and you're going to do terrifically.' Despite Cramer's split strategy, Exxon stock fell 9.95%, undercutting the outlook. Exxon Mobil Corporation (NYSE:XOM) is one of the world's largest publicly traded oil and gas companies, involved in exploration, production, refining, and distribution of petroleum products. Due to the recent drop in oil prices, Cramer gave a bearish outlook on the stock in April, saying: 'Friday's important, not just because we have Exxon and Chevron. Hey, by the way, the two largest oil companies, and I doubt that they'll really… have anything good to say because look at the price of oil.' Overall, XOM ranks 6th on our list of stocks that Jim Cramer discussed 12 months ago. While we acknowledge the potential of XOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than XOM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
Exxon Mobil Corporation (XOM): One of the Undervalued Dividend Aristocrats to Buy Now
We recently published a list of the . In this article, we are going to take a look at where Exxon Mobil Corporation (NYSE:XOM) stands against other undervalued dividend aristocrats. Dividend-paying stocks are regaining popularity this year as investors look for ways to soften the blow of current market challenges. The S&P Dividend Aristocrats Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has fallen by a little over 1.2% since the start of 2025, compared with a 4.1% decline of the broader market. Analysts point out that dividends not only help boost overall returns early on, but there's also clear evidence that companies with growing dividends tend to deliver stronger performance. These stocks often provide better returns with less risk, stay ahead of inflation, and hold up well whether interest rates are climbing or falling. According to S&P Indices' 'Research Insights,' dividends have accounted for roughly a third of total returns since 1926. This is largely because, unlike stock prices that can fluctuate, dividends represent a guaranteed gain once paid out. Even in strong bull markets like the 1950s, 1980s, and 1990s, dividends played a meaningful role in enhancing investor returns. However, their true value becomes especially clear in weaker market cycles, when capital gains are modest or even negative, dividends have often made up more than half of the total return. In some cases, they've been the deciding factor in keeping returns positive. In essence, dividends tend to matter most when market performance falls short. A report from Fenimore Asset Management reveals that between 1972 and 2016, companies that either raised or initiated dividends consistently outperformed those that did not. Historically, a dividend hike has often been viewed as a sign that management is confident in the company's future. This concept is even the basis of the 'Dividend Discount Model,' which values a company based on expected dividend growth. On average, firms that grew or introduced dividends delivered annualized returns of 9.8%, outpacing businesses that didn't pay dividends. These companies typically enjoy rising sales and earnings, generating more cash than they need for reinvestment, allowing them to reward shareholders regularly. This pattern also reflects a strong commitment by management and the board to return value to investors. In contrast, companies that cut or eliminate dividends often struggle financially. These underperformers posted annualized returns of -0.6% during the said period, and such reductions usually point to a weakening business, limited growth prospects, or a need to redirect cash toward internal needs rather than shareholder payouts. The report also highlighted that one of the key advantages of a growing dividend is its ability to preserve purchasing power over time. As inflation gradually pushes up the cost of living, dividend income needs to grow just to keep up. Assuming a long-term inflation rate of 2%, dividends must increase by at least that much to avoid losing value in real terms. While investors seeking income may be drawn to stocks with high current yields, it's just as important to consider how fast those dividends are growing. Focusing solely on yield without looking at growth can be short-sighted. In the long run, companies that steadily raise their dividends provide income that keeps pace with or even exceeds inflation, offering greater financial security. Aerial view of a major oil rig in the middle of the sea, pumping crude oil. For this list, we scanned the list of the S&P Dividend Aristocrats– the stocks that have raised their payouts for 25 years or more– and identified stocks with low forward P/E ratios. From there, we picked 11 dividend aristocrats with forward P/E ratios below 20, as of May 7, and ranked them accordingly. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Forward P/E Ratio as of May 7: 13.44 Exxon Mobil Corporation (NYSE:XOM) ranks fourth on our list of the best undervalued dividend aristocrat stocks. The American multinational oil and gas company oversees a top-tier portfolio of resources and stands as one of the largest global players in integrated fuels, lubricants, and chemicals. It runs facilities and markets its products worldwide, while also engaging in oil and natural gas exploration across six continents. In the first quarter of 2025, Exxon Mobil Corporation (NYSE:XOM) reported revenue of $83.1 billion, up modestly by 0.06% from the same period last year. The revenue missed analysts' estimates by $3 million. However, its EPS of $1.76 exceeded consensus by $0.02. Since 2019, the company has made strategic decisions to cut costs, increase high-value volumes, and optimize its operations, boosting its quarterly earnings by approximately $4 billion based on current prices and margins. This year, the company is launching 10 advantageous projects, which are expected to generate over $3 billion in earnings by 2026, assuming constant prices and margins. Exxon Mobil Corporation (NYSE:XOM) reported operating cash flow of $13.0 billion and free cash flow of $8.8 billion. It distributed $9.1 billion to shareholders, comprising $4.3 billion in dividends and $4.8 billion in share repurchases, in line with its previously announced plans. The company's quarterly dividend is $0.99 per share and offers a dividend yield of 3.73%, as of May 7. It is one of the best dividend aristocrat stocks, having raised its payouts for 41 consecutive years. Overall, XOM ranks 4th on our list of the best undervalued dividend aristocrats to buy now. While we acknowledge the potential of XOM as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than XOM but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-05-2025
- Business
- Yahoo
Is Exxon Mobil Corporation (XOM) the Most Undervalued Energy Stock to Buy According to Hedge Funds?
We recently published a list of the 10 Most Undervalued Energy Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Exxon Mobil Corporation (NYSE:XOM) stands against other undervalued energy stocks. As of the close of May 2, 2025, the overall energy sector is undervalued by 13.1%, as compared to the general market's undervaluation of 5.3%. The current downturn in the energy sector is primarily attributed to the current trade war sparked by President Trump's tariffs and its resultant forecasted global economic slowdown. Moreover, global crude oil prices have plunged heavily since last month, with the West Texas Intermediate (WTI) crude price currently hovering around the $56 mark – a level it last hit during the Covid-19 pandemic in 2021. READ ALSO: Top 15 Energy Companies With the Highest Upside Potential Crude oil took a fresh hit this weekend after OPEC+ stunned the market by announcing a larger-than-expected output increase for June. This follows a similar surge announced for May and signals a sharp reversal from the group's efforts to defend crude prices. It seems like Saudi Arabia has adopted a low-price strategy, aiming to discipline overproducing members like Kazakhstan and Iraq. This could also be a part of Riyadh's efforts to build good relations with Donald Trump, who has recently been calling on the Kingdom to increase production in order to bring prices down. Given the high volatility in the market, it comes as no surprise that short-sellers marginally increased their bets against oil and gas stocks in March, with short interest in the energy sector reaching 2.58% compared to 2.52% in February. That said, while oil may be presenting a bleak outlook, there are other sectors within the energy business that look very promising right now. A significant growth driver for the global energy industry is the ongoing AI boom and its accompanying power-hungry data centers. According to the International Energy Agency, the global electricity demand from data centers is set to more than double by 2030 to around 945 terawatt-hours (TWh), slightly more than the entire electricity consumption of Japan today. The rise of AI is also reshaping US power markets, as according to BNEF, the country's data center demand is projected to rise from 3.5% of total electricity demand today to 8.6% by 2035. Big Tech seems to have jumped headfirst into the AI boom, with commitments to invest hundreds of billions of dollars to build data centers and ensure their energy supply. In fact, this strategic move has injected new life into sectors such as nuclear, which has regained the spotlight after several tech giants met on the sidelines of the CERAWeek conference in March and signed a pledge to support the goal of at least tripling the world's nuclear energy capacity by 2050. That said, there have been concerns lately that the power demand required by the ballooning data center industry may have been overestimated, which led to several energy stocks posting significant declines not so long ago. However, the recently reported better-than-expected results from the cloud and AI businesses of some American tech giants suggest that these fears may have been overblown. Commercial real estate executives have stated that while there has been a 'pause' in some data center capex, it is likely to be temporary, with hundreds of billions of dollars still to be spent. Aerial view of a major oil rig in the middle of the sea, pumping crude oil. To collect data for this article, we looked for companies operating in the energy sector with forward P/E ratios of below 15 as of the close of May 2, 2025. Then, we identified companies that have delivered substantial returns over the last five years, in order to steer clear of potential value traps. In the end, we selected companies with the highest number of hedge fund holders in the Insider Monkey database, as of Q4 2024. The following are the Most Undervalued Energy Stocks According to Hedge Funds. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (). No. of Hedge Fund Holders: 104 Forward P/E Ratio as of May 2: 13.77 Topping our list of the Most Undervalued Energy Stocks to Invest in is Exxon Mobil Corporation (NYSE:XOM), which manages an industry-leading portfolio of resources and is one of the largest integrated fuels, lubricants, and chemical companies in the world. The company operates facilities and markets products around the globe and explores for oil and natural gas on six continents. Exxon Mobil Corporation (NYSE:XOM) had a strong Q1 2025, reporting an adjusted EPS of $1.76 against expectations of $1.74, as production growth and cost cuts offset the impact of falling oil prices. The industry behemoth's global oil and gas production totaled 4.55 million boe/d during the quarter, up from 3.78 million boe/d in the same period last year. Moreover, the company has taken an impressive $12.7 billion of structural costs out of the business since 2019. Exxon also generated an industry-leading $13 billion in cash flow from operations in Q1, while its free cash flow came in at $8.8 billion. Notably, the company maintains a strong reputation as a cash engine, and over the last three years, its total free cash flow equaled more than 25% of its current market cap. Exxon Mobil Corporation (NYSE:XOM) paid $4.3 billion in dividends and repurchased $4.8 billion in shares in Q1 2025, staying on track to meet its annual share repurchase goal of $20 billion. The company recently declared a Q2 dividend of $0.99 per share and boasts an annual dividend yield of 3.73%. As of the end of Q1 2025, Exxon has delivered an industry-leading 3-year total shareholder return of 60%, for a CAGR of 17%. Overall, XOM ranks 1st on our list of the most undervalued energy stocks to buy according to hedge funds. While we acknowledge the potential of XOM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than XOM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
