Exxonmobil continues to prove that it is the best company in oil patches
ExxonMobil provided industry-leading financial results in the first quarter.
This allowed us to return industry-leading amounts of cash to shareholders.
Oil companies hope to improve performance over the next few years.
exxonmobilI He is a 800-pound gorilla in the oil sector. It is not only the largest company in the industry by market capitalization (over $450 billion), but also the leader in several key categories.
Oil companies He showed off his talent in the first quarter, where he achieved industry-leading performance amid a challenging market situation. This is how we look at this quarter and what is important to our fuel supply. exxonmobilSuccess.
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Exxonmobil’s most recent first quarter results were Other than that there is nothing This is exceptional considering the market conditions during the period. The company delivered industry-leading profits at $7.7 billion, or $1.76 per share, reaching analysts’ forecasts of $0.01 per share. It also led the sector by generating $8.8 billion in free cash flow while producing $13 billion in cash flow from $13 billion in operations.
The company has produced stronger revenue than expected despite a significant decline in industry refinement margins, lower crude oil prices, reduced base production due to some non-core asset sales, and increased costs from growth initiatives.
One of the factors driving that powerful outcome was its powerful outcome. Robust quarterly oil and gas production. Exxon’s output averaged 4.6 million Oil equivalent barrel (BOE)Per day. That was a spectacular 20% compared to the previous year. periodwas driven by the pioneering acquisition of natural resources last year.
Image source: Getty Images.
Another big catalyst was Exxon’s industry-leading structural cost reduction program. The strategy I’m saving it now The company is $12.7 billion a year compared to 2019 levels, more than all other international oil companies (IOCs) combined. The company has earned an additional $600 million cost savings through the program In the first quarter.
The combination of investments to increase volume and structural cost savings added $4 billion to the company’s revenue in the first quarter. This offset some of the effects of inflation and other factors on revenue.
Exxon’s industry-leading cash flow has enabled us to provide industry-leading shareholder returns. The oil giant sent $9.1 billion in cash to investors during the quarter. This has repurchased a sector-leading $4.8 billion in shares. This has made the company well ahead of the year to buy back about $20 billion in shares.
Exxon also paid a dividend of $4.3 billion. The company provided the sector-leading 42nd consecutive annual dividend increase earlier this year. Only 4% of companies S&P 500(snpindex: ^gspc) It has brought dividend growth for over 42 years.
Company Elite Balance Sheet played an important role in the ability to return cash to investors. The company ended the quarter with $18.5 billion in cash on hand. It fell from $23.2 billion at the end of the fourth quarter, but maintained its lead. Leverage ratio 12% from debt to capital (down from 13% in the fourth quarter) and 7% on a net basis (up from 6% at the end of last year). This will give you a lot of cushioning as oil prices fall in the future.
Exxonmobil is keen to repeat and improve future industry-leading performance. The company continues to invest heavily in expanding its lucrative resources, the lowest cost and highest margin assets. The company is expected to launch 10 lucrative projects this year. Generate Next year we will generate more than $3 billion in revenue at a fixed price and margin. Meanwhile, these investments still contribute to financial results, even if prices and margins fall.
The company is also steadily delivering $18 billion in structural cost savings by the end of 2030 compared to 2019. level. When added to its growth capital investment, Exxon expects to add $20 billion in revenue and $30 billion in cash flow by 2030.
The oil giant’s strategy of strengthening revenue capacity could also put it in a stronger position to lower oil prices future. On the other hand, if pricing is improved, it will significantly increase the company’s chances of rising.
Exxonmobil continues to prove that it is the best company in the oil industry. Ability to generate industry-leading profits and return more cash to more investors than anyone else Give it fuel To generate total revenue for peering (combined annual shareholder returns of 17% over the past three years). With increasing profits and cost savings, Exxon is in a strong position to continue increasing shareholder value futureto make it a great oil stock for long-term purchases and holdings.
Consider this before purchasing stocks with ExxonMobil.
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