Exxon Mobil - Oil Prices Are Recovering Why Hasn't This Oil Major
Summary
Exxon Mobil is the largest oil company in the world, yet the company hasn't properly recovered as oil prices have.
The company has enormous growth potential. With the Guyana project alone, the company's project could grow by double digits in the coming years.
Exxon Mobil has strong financials. The company is decreasing its debt load and watching its earnings increase. At the same time, the company is cutting operating expenses drastically.
Exxon Mobil (XOM) is the largest oil company in the world with a market cap of almost $350 billion. The company has consistent production, long-term reserves, strong financials, and is in a league of its own among other oil companies. However, as oil prices have recovered, the company's stock price has languished. As we will see throughout this article, Exxon Mobil's growth potential and strong financials in a recovering oil market make it a good investment.
Exxon Mobil Growth Potential
Giant doesn't mean stagnant. Exxon Mobil has significant growth potential going forward, potential that will result in higher production. That higher production will directly translate to higher earnings.
Exxon Mobil Expansion projects - Exxon Mobil Investor Presentation
Exxon Mobil's Guyana exploration is the source of some of its largest potential for production growth. Exxon Mobil recently announced a 7th discovery here containing a 20 meter deep sandstone oil reservoir. The company believes that discovery will help it to push production to more than 500 thousand barrels per day, significant growth in production.