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Category: ExxonMobil (XOM)
Date: 3 May 2021 Stock Price of ExxonMobil (XOM): $57.24 Market Capital of ExxonMobil (XOM): $242.3 billion We take a look at the 1st quarter earnings report of their 2021 fiscal year of ExxonMobil one of the world's largest publicly traded energy providers and chemical manufacturers. The group reported net income of $2.73 billion for the 1st quarter of their 2021 fiscal year.
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About ExxonMobil (XOM)
As one of the world's largest publicly traded energy providers and chemical manufacturers, ExxonMobil develops and applies next-generation technologies to help safely and responsibly meet the world's growing needs for energy and high-quality chemical products
Overview of ExxonMobil 1st quarter 2021 earnings report
First Quarter 2021 Results and Management Perspectives
- Cash flow from operating activities of $9.3 billion fully funded dividend and capital expenditures, and drove debt reduction of over $4 billion
- Lowered cash operating expenses versus the first and fourth quarters of 2020; on pace to deliver additional structural cost savings
- Advanced several initiatives to reduce emissions and launched Low Carbon Solutions business to commercialize extensive low-carbon technology portfolio
- Added three new directors to strengthen board experience in energy, capital allocation and complex business transitions
- Oil-equivalent production was 3.8 million barrels per day, up 3 percent from the fourth quarter of 2020
- Earnings for the quarter: $2.730 billion
- Earning per share: $0.64
ExxonMobil (XOM) management commentary on their 1st quarter 2021 earnings report
IRVING, Texas – April 30, 2021 – Exxon Mobil Corporation today announced estimated first quarter 2021 earnings of $2.7 billion, or $0.64 per share assuming dilution, compared with a loss of $610 million in the first quarter of 2020. Results included unfavorable identified items of $31 million, or $0.01 per share assuming dilution. First quarter capital and exploration expenditures were $3.1 billion, $4 billion lower than the first quarter of 2020.
“The strong first quarter results reflect the benefits of higher commodity prices and our focus on structural cost reductions, while prioritizing investments in assets with a low cost of supply,” said Darren Woods, chairman and chief executive officer. “Cash flow from operating activities during the quarter fully covered the dividend and capital investments, and we strengthened the balance sheet by reducing debt. We also made progress on our energy transition strategy by launching our new ExxonMobil Low Carbon Solutions business, which is initially working to develop innovative, large-scale carbon capture and storage (CCS) concepts, including the evaluation and advancement of more than 20 new opportunities, such as a multi-industry hub to reduce emissions from hard-to-decarbonize industries near the Houston Ship Channel. As the global leader in carbon capture, we are seeing growing public and private sector support for CCS as a critical enabling technology to reduce emissions and help meet society's net-zero ambitions.”
“The strong first quarter results reflect the benefits of higher commodity prices and our focus on structural cost reductions, while prioritizing investments in assets with a low cost of supply,” said Darren Woods, chairman and chief executive officer. “Cash flow from operating activities during the quarter fully covered the dividend and capital investments, and we strengthened the balance sheet by reducing debt. We also made progress on our energy transition strategy by launching our new ExxonMobil Low Carbon Solutions business, which is initially working to develop innovative, large-scale carbon capture and storage (CCS) concepts, including the evaluation and advancement of more than 20 new opportunities, such as a multi-industry hub to reduce emissions from hard-to-decarbonize industries near the Houston Ship Channel. As the global leader in carbon capture, we are seeing growing public and private sector support for CCS as a critical enabling technology to reduce emissions and help meet society's net-zero ambitions.”
During the quarter, ExxonMobil announced the elections of Michael Angelakis, Jeffrey Ubben, and Wan Zulkiflee to its board of directors. With the addition of the new members, the ExxonMobil board increased to 13 directors, 12 of whom are independent. The company has added six new independent directors since 2017 with specific experience in the areas of climate science, asset and risk management, capital allocation, energy and business transition, investor perspectives, and additional energy industry experience.
ExxonMobil (XOM) stock price chart over the last 5 years
The image below shows the stock price history of ExxonMobil (XOM) over the last 5 years. And it's not been a good time for ExxonMobil (XOM) stockholders. The stock of ExxonMobil decreased by -36.2% over the last 5 years.
The stock of ExxonMobil is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of ExxonMobil stock is positive at this point in time.
The stock of ExxonMobil is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of ExxonMobil stock is positive at this point in time.
ExxonMobil (XOM) latest stock valuation
So what is ExxonMobil's stock worth based on the release of their 1st quarter 2021 earnings report? Based on ExxonMobil 1st quarter 2021 earnings report our valuation model provides a target price (full value price) for ExxonMobil (XOM) at $47.80 a stock. We therefore believe that the stock of ExxonMobil is overvalued.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target price (full value price) which in this case is $47.800 Therefore we see a good entry point into ExxonMobil stock at $43 or below.
We expect the stock of ExxonMobil to pull back from its current price to levels closer to our target price in coming weeks and months. Since the stock of ExxonMobil is trading at well above our suggested entry point we rate the stock of ExxonMobil as a sell
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target price (full value price) which in this case is $47.800 Therefore we see a good entry point into ExxonMobil stock at $43 or below.
We expect the stock of ExxonMobil to pull back from its current price to levels closer to our target price in coming weeks and months. Since the stock of ExxonMobil is trading at well above our suggested entry point we rate the stock of ExxonMobil as a sell
Next earnings release of ExxonMobil (XOM)
It is expected that ExxonMobil (XOM) will release their 2nd quarter 2021 earnings report in late July 2021