Learn About DRIPS
Start a DRIP

News and Views
DRIP of the Week
DRIPs A to Z

Free Trial!
Advertise With Us
Terms of Service
Contact Us
About Us


Sunday, 02/11/2001

XOM - ExxonMobil

Company Description

On November 30th, 1999, Exxon Corporation and Mobil Corporation formally merged to form Exxon Mobil Corporation. Headquartered in Irving, Texas, ExxonMobil is a worldwide leader in the petroleum and petrochemicals business.

The company is mainly engaged in exploring, producing, transporting and selling crude oil and natural gas along with manufacturing, transporting and selling petroleum-based products. ExxonMobil is also a global manufacturer and marketer of petrochemical products. In addition to its crude oil-related operations, the company is engaged in coal and mineral mining along with electric power generation.

(source: ExxonMobil)

Reasons to Invest

Energy is in high demand across the entire world. That fact is most prevalent in California - a state in dire need of more energy. Whether resulting from an increased demand for electricity or increased fuel consumption, ExxonMobil stands to reap long-term rewards from the high demand for energy.

As the world's #1, leading integrated oil and gas company, ExxonMobil continues to please investors with its stable financial performance. The company recently reported revenues for its fiscal fourth-quarter of $64.1 billion and earnings of $5.12 billion. The $5.12 billion in earnings posted by the company set a new world record. It should follow that investing in a company that is breaking profit records should bode extremely well for the long-term. ExxonMobil's massive profits have allowed the company to embark on a share buy-back program which has given its stock a solid floor and foundation, on top of the loyal shareholders in the company. With so much free cash flow readily available and very little debt to service, the company can easily buy-back shares en masse, thus providing stability to its stock price which is welcome in the current and volatile marketplace.

The majority of ExxonMobil's profits are obviously tied to the price of crude oil. And as much of the world knows, OPEC plays a major role in determining the price of oil through its production quotas. But the role of OPEC in determining the price of oil has become somewhat clearer in recent months. The oil cartel has said that it's committed to maintaining a stable price in crude oil through production regulation, which would be a welcome event for ExxonMobil. In fact, oil industry analysts have recently echoed their beliefs of OPEC maintaining a high price in oil. Morningstar analyst, Corey McElveen, said, "Given that the OPEC members appear committed to maintaining their two-year accord on managing their oil productions, oil prices are expected to remain fairly high for at least the first quarter of 2001..."

Despite the uncertainty revolving around OPEC, ExxonMobil is positioned to be one of the premier energy companies for many years to company. Because of its stable revenues and earnings, the company would make a nice addition for an investor who is just getting started or for an investor looking for diversification away from technology and financial stocks.

DRIP Information:

Shares to Qualify = 1           Accept Foreign Accounts: Yes
Auto-reinvestment  = Yes        Temper Enrollment Serv:  Yes

Min/Max Investment = $50 - $200,000/year
Reinvestment Fees: 
Dividend: 0         Cash: 0     Auto ReInvest: $1

Transfer Agent:


ExxonMobil Shareholder Services:

Fundamentals            Company Profile

Industry Group:		Integrated Oil	52-week high=$95.44
Annual Dividend		Per Share=$1.76	52-week low =$69.88
Last earnings 01/00	est=1.29		actual=1.46
Next earnings 04-15	est=1.21		versus=0.95
					P/E = 16

Analyst Ratings:
Strong Buy    = 7
Moderate Buy  = 12
Hold          = 9
Moderate Sell = 0
Strong Sell   = 0

Six Month Chart of XOM


Copyright 2003

Do not duplicate or redistribute in any form.
          Privacy Statement   Disclaimer   Terms Of Service