EXXON MOBILE 2

This paper presents the financial analysis of Exxon Mobile Corporation through application of two steps of the nine-step assessment process. Exxon Mobile Corporation deals in oil and gas production and is located in Irving, Texas. It was founded in 1999 and is now a publicly traded company. Its current CEO and Chairman is Darren Woods. The company’s products and businesses include crude oil, petrochemicals, natural gas, oil products and power negation. The two processes entail: a) Analysis of Fundamentals: Goals, Strategy, Market, Competitive Technology, Regulatory, and Operating Characteristics and, b) Analysis of Fundamentals: Revenue Outlook

Analysis of Fundamentals

Goals: The Company aims at being the premier petroleum and petro chemical company in the world through its proactive financial and operating activities (Exxon Mobile Corporation, 2017). The second goal is to foster clean business practices to promote a conducive environment. Thirdly, the company aims to equip its employees with technical and leadership skills to enhance their competitive value (Exxon Mobile Corporation, 2017).

Strategy: The long-term strategy is build up on its upstream business to outdo its competitors during boom seasons. The other strategy is to regenerate its reserves to ensure constant flow of supply especially during scarcity

Competitive technology: One of the goals of the company is to invest in high-impact technologies, which will enhance their operations. The company has invested in large-scale oil technologies, which aim at fostering clean environment. For instance, it has a 3-D seismic imaging, which is useful in imaging of geological formations. Others include controlled free zone technology, deep-water technology, hydraulic fracturing technology, and full wave file inversion (Exxon Mobile, 2017).

Regulatory: The Company is guided by a wide variety of regulations that govern chemical production. The company’s code of ethics and business conduct offers guidelines on best practices among the directors, employees and shareholders. The company has appointed a Board Affairs Committee, which is in charge of reviewing any issues under the code (Exxon Mobile Corporation, 2017). The code entails several policies including, ethics policy, conflicts of interest’s policy, corporate assets policy and, directorships policy (Exxon Mobile Corporation, 2017).

Operating characteristics: The Company has established an OIMS system, which integrates five characteristics: scope and objectives, processes and procedures, responsible and accountable resources, verification and measurement, feedback and improvement mechanisms and evaluation (Exxon Mobile Corporation, 2017).

Analysis of Fundamentals: Revenue Outlook

The company’s business model in terms of meeting the fluctuating demand and supply of oil and its products promises future stability and growth in sales and profits. The company is in the fourth position of the fortune 500 list in the current year due to its long-term great performance. Currently, the company has a 2040 energy outlook that looks into sustaining supply of energy through integration of technology, transportation systems and power generation ( Exxon Mobile Corporation, 2017).The company has produced $ 69.3 billion in sales and an earnings per share of $ 0.93 in the current quarter (CNN Money, 2017). “However, persistently low oil prices and weaker profit margins in Exxon’s refining business weighed on earnings for the full year” (DiChristopher, 2017, par. 3).

References

CNN Money. (2017). Exxon Mobile Corp. Retrieved from http://www.money.cnn.com/quote/forecast/forecast.html?symb=xom

DiChristopher, T. (2017). Exxon Mobile profit and revenue rise as the oil giant takes $ 2 billion impairment. Retrieved from https://www.cnbc.com/2017/01/13/exxon-mobile-reports-earnings.html