Does ExxonMobil Have the Fuel to Grow Into a $1 Trillion Company?
ExxonMobil (NYSE: XOM) is the 800-pound gorilla in the oil patch. The energy giant currently has a market cap of more than $500 billion. That's over $200 billion more than its next largest rival, Chevron, at $290 billion. It's the most profitable company in the sector by a wide margin. Last year, it generated $34 billion in earnings and $55 billion in operating cash flow, which led all international oil companies (IOCs). ExxonMobil is halfway to joining the trillion-dollar market cap club. Here's a look at whether it has enough fuel to grow that big in the future.ExxonMobil has grown into the largest IOC through a combination of organic investment and acquisitions. The company invests tens of billions of dollars each year into capital projects to develop its oil and gas resources and expand its product solutions business, which encompasses refining and chemicals operations. It has also closed a number of high-profile acquisitions over the years to enhance its portfolio and scale. The most recent deal was its $59.5 billion all-stock acquisition of Pioneer Natural Resources to boost its position in the prolific Permian Basin of Texas and New Mexico. Continue reading
ExxonMobil (NYSE: XOM) is the 800-pound gorilla in the oil patch. The energy giant currently has a market cap of more than $500 billion. That's over $200 billion more than its next largest rival, Chevron, at $290 billion. It's the most profitable company in the sector by a wide margin. Last year, it generated $34 billion in earnings and $55 billion in operating cash flow, which led all international oil companies (IOCs).
ExxonMobil is halfway to joining the trillion-dollar market cap club. Here's a look at whether it has enough fuel to grow that big in the future.
ExxonMobil has grown into the largest IOC through a combination of organic investment and acquisitions. The company invests tens of billions of dollars each year into capital projects to develop its oil and gas resources and expand its product solutions business, which encompasses refining and chemicals operations. It has also closed a number of high-profile acquisitions over the years to enhance its portfolio and scale. The most recent deal was its $59.5 billion all-stock acquisition of Pioneer Natural Resources to boost its position in the prolific Permian Basin of Texas and New Mexico.
