Exxon Mobil reached the target price from our last report as it reported strong first-quarter results for 2021 driven by higher chemical margins and improved realized commodity prices. In the upstream business, the company witnessed a significant improvement in liquids and gas realizations versus the fourth quarter acted as a huge positive. Moreover, production remained high driven by lower government-mandated curtailments and higher seasonal gas demand in Europe. While Exxon continues to witness improved demand for gasoline and diesel, jet demand remains impacted by global travel restrictions. It is also worth highlighting that in addition to cost reduction initiatives, the company benefitted from a higher crude oil price resulting in better margins and increased cash flow from operations. This was sufficient to cover capital spending and the dividend as well as reducing $4 billion worth of debt. Overall, Exxon’s turnaround from last year’s unprecedented string of losses has helped restore confidence and we believe that the company makes a decent investment in the energy sector for the long term.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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