...Exxon Mobil is the largest U.S. Company in the world and it participates in three very profitable industries: Mining/Crude-Oil industry, Petroleum Refining, and Chemicals. Exxon Mobil is a multinational oil and gas corporation. They have evolved over the past 125 years as a regional marketer of kerosene in the U.S. to the largest publicly traded petroleum and petrochemical enterprise in the world. Today Exxon Mobil operates in most of the world's countries and is best known by their familiar brand names: Exxon, Esso and Mobil. They make the products that drive modern transportation, power cities, lubricate industry and provide petrochemical building blocks that lead to thousands of consumer goods. Exxon Mobil was founded by John Rockefeller and his associates in 1870 originally named standard oil company. By 1882 Standard Oil Company was renamed Standard Oil Company of New Jersey (Jersey Standard) and the Standard Oil Company of New York (Socony). Standard Oil broke up into 34 unrelated companies after a U.S. Supreme Court ruling, including Jersey Standard, Socony, and Vacuum Oil. After 100 years in business the company went through yet another name change to Mobil Oil Corporation. In 1972 Jersey Standard becomes Exxon Corporation. In November 30, 1999, Exxon and Mobil join together to become Exxon Mobil Corporation. The merger increased their ability to be a more effective global competitor in the volatile economy and in an industry that is very competitive. In 2005 both Exxon...
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...Chairman and CEO of ExxonMobil stated in 2012s summary annual report “unrelenting focus on creating long-term value is the commitment we make to all who place their trust in ExxonMobil by investing in our stock… our unique competitive advantages and steadfast commitment to ethical behavior, safe operations, and good corporate citizenship enable us to deliver long-term value to our shareholders while helping to supply the world’s growing demand for energy” (pg. 5). Exxon continues to deliver “superior results” to its shareholders. As I looked over Exxon’s summary annual report for 2011 and 2012, it was clear that the majority of the oil company’s assets were tangible. According to Investopia.com (2014) tangible assets are “assets that have a physical form…they include both fixed assets, such as machinery, buildings and land, and current assets, such as inventory.” Both the 2011 and 2012 summary annual reports have the majority of its tangible assets in its property, plant and equipment portion of the balance sheet. Exxon Mobil Corp.'s current, quick, and cash ratios improved from 2011 to 2012. The company’s Net Income was $41,060, 000 (2011) to $44,880, 000 (2012), which is a positive move and an increase of $3,820,000 or a little of 9%. Cash flows for the same period moved negatively, about $11,305,000 or a little over 65%. The cash flow statement is broken down into three different categories, such as, operating activities, investing activities, and financing activities. Operating...
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...Exxon Mobil is an oil and gas company that was founded in 1999; a merger of Exxon and Mobil. It is a Descendant of John D Rockefeller’s Standard Oil Company (Exxon Mobil). Exxon is a US based company with its head quarters located in Irving Texas, even though it is considered an international corporation. Exxon Mobil is considered the world’s largest publicly traded international oil and gas company, and has even been ranked as the number one traded company in the world. Currently Exxon is traded on the New York Stock Exchange, is a Dow Jones Industrial Average Component as well as a S&P 500 Component (Exxon Mobil). When it comes to oil, Exxon Mobil does it all. With 102,700 employees, Exxon has broken its operations into two main categories Upstream and Downstream (Yahoo Finance). Exxon does partake in other types of operations such as it operates coal mines and has its own IT, real estate, help center, as well as an engineering and chemical research and development department which fall under the umbrella of Exxon Mobil Corp (Exxon Mobil). Exxon’s two main divisions are incredibly important in keeping its industry advantage, where the Upstream sector is responsible for the exploration of new resources in an efficient and economical manner. The Upstream sector also extracts resources and then deals with the wholesale and distribution of the minerals. The Down Stream operations include refining the mineral and managing retail operations and marketing. Due to Exxon’s vast...
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...S&P 500 Exxon Mobil’s (XOM) stock prices seem to follow the same trend line as the market. When market prices are high, Exxon’s stock prices are equally high, and when the market declines, so do the prices of Exxon stock. For the most part, Exxon’s stock follows the market trend. The difference between the market and Exxon’s prices seems to be that Exxon’s prices typically fall below the market trend line. Although Exxon’s prices range lower than the S&P over the six months studied from May 5, 2010 to November 5, 2010, Exxon’s stock prices clearly show a correlation to the market prices. With this correlation, Exxon’s prices ebb and flow with the market, but Exxon’s prices in the short-run versus longer periods of time seem to move up and down more vigorously where as the market remains more consistent on a short-term basis. See attached chart. Exxon Mobil is one company who over the past few years despite the recession has been able to post record profits. But, increasing sales and profitability is not always that easy. Despite having gross profits no less than $124,000,000 in 2009, Exxon actually shrank in 2009 versus 2007 and 2008. Exxon’s gross profit went from $171,000,000 in 2007 and ballooned to $188,000,000 in 2008 showing a growth change of +9.8%. While from 2008 to 2009, Exxon’s gross profits went from $188,000,000 to $124,000,000 shrinking nearly -34% from the previous year. While both 2007 and 2008 Exxon had a net income over $40,000,000, in 2009 Exxon couldn’t...
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...Exxon Mobil Corporation Exxon Mobil Corporation - Financial and Strategic Analysis Review Publication Date: 03-Aug-2012 Reference Code: GDGE1203FSA Company Snapshot Key Information Exxon Mobil Corporation, Key Information Web Address www.exxonmobil.com Financial year-end December Number of Employees 82,100 NYSE XOM Source : GlobalData Company Overview Exxon Mobil Corporation (ExxonMobil) is an integrated global oil and gas company. The company's operations include exploration and production of oil and gas; refining, transportation and marketing of oil and natural gas; and manufacture and sale of petroleum products. ExxonMobil also has interests in petrochemicals and electricity generation facilities. The company operates through three reportable business segments, namely, Upstream, Downstream and Chemical. It offers products and services under various brands such as Exxon, Esso and Mobil. ExxonMobil is headquartered in Texas, the US. ExxonMobil is expanding its operations and presence in unconventional gas resource assets. 9.75 4.37 26.59 11.03.00 15.06 0.02 Key Ratios Exxon Mobil Corporation, Key Ratios P/E EV/EBITDA Return on Equity (%) Debt/Equity Operating profit margin (%) Dividend Yield SWOT Analysis Exxon Mobil Corporation, SWOT Analysis Strengths Weaknesses Improvement in Financial Performance Extensive Research & Development Activities Geographical Diversification Pending Litigations Note: Above ratios are based on share price as of 01-Aug-2012...
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...EXXON MOBIL Financial Analysis JUNE 2015 Prepared by: Maria Karpowicz-Wójcik Monika Tyburska Executive Summary This report was commissioned to analyze financial statements for years 2010- 2014 of Exxon Mobil. It presents overall review of this company’s history and business, as well as its strategies and mission. Additionally, this report presents an impact of Exxon Mobil on social and natural environment. Moreover it describes how the company communicates social and environmental issues. In analytical part of the report, we examined income statement and balance sheet for the above mentioned years. We looked for trends and presented them in form of graphs. Furthermore, this report shows calculations of financial ratios such as: • Profitability ratios • Liquidity ratios • Solvency ratios It presents trends over time and our comments. Exxon Mobil – the story of success Exxon Mobil Corporation is a motor fuel brand. The history of the company begun in 1870, when John D. Rockefeller and his partners established Standard Oil Company. This company was very successful for thirty years and by the year 1878, it was controlling 95% of US the oil industry. Because of the public protest that took place in 1911, the Supreme Court of the United States decided to divide one big company into 34 small companies. Two of these companies finally became...
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...* Intro * A strategic planning initiative for the organization selected for the Week 2 assignment ExxonMobil, an American multinational oil and gas corporation; whose headquarters is in Irving, Texas which is North of Dallas in the United States of America. It is the descendant of John D. Rockefeller’s Standard Oil Company, and was established on November 30, 1999, when Exxon and Mobil merged together. As one of the largest oil and gas corporations to date, with a daily production of $3.921 million BOE, in 2008 ExxonMobil was 3% of world production, which serves as less than their competition. The company’s strategic thinking is simple. Keeping the promise of being the premier petroleum and petrochemical company in the world, they must commit to providing superior financial and operating results while standing by the company’s ethical standards of business conduct. By doing so, the organization shall create the foundation in those commitments to serve those they interact with. The strategic planning, which should align with the company’s overall vision which is to become the center of excellence for all key water related technologies, especially to those closest to the petroleum and municipal sectors. Next step, deliver the business strategy which shows how the organization proves their superior excellence within daily operations, cash flow, and creating long-term shareholder value. By continuously applying this business strategy, ExxonMobil centers the company...
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...Resumen Ejecutivo Principios de Contabilidad ACC/208 16 de junio de 2012 Oscar Rosario Figueroa * Resumen Ejecutivo * EXXON MOBILE * ExxonMobil Corporation es una empresa petrolera estadounidense. Sus actividades se extienden por más de 40 países de todo el mundo e incluyen, entre otras, la explotación, elaboración y comercialización de productos petroleros y gas natural, así como la fabricación de productos químicos, plásticos y fertilizantes. * Historia: Exxon Mobil surgió de la fusión de las herederas de la Standard Oil perteneciente a John D. Rockefeller, creada en 1870. Para 1939 esta empresa es la más grande el mundo, y solamente tiene como rival a la SHELL que extrae petróleo de México. Exxon Mobil Corporation se formó en 1999 gracias a la fusión de dos grandes compañías petroleras, Exxon y Mobil. En 1998, Exxon y Mobil firmaron en EE.UU. un acuerdo por U$73,7 billones para fusionarse y formar una nueva empresa llamada Exxon Mobil Corporation, la empresa más grande del planeta. Tras las correspondientes aprobaciones accionarias, la fusión se completó el 30 de noviembre de 1999. La fusión de Exxon y Mobil fue única en la historia de Estados Unidos, ya que reunió las dos mayores empresas del conglomerado Standard Oil de John D. Rockefeller; la Standard Oil Company de Nueva Jersey (Exxon) y la Standard Oil Company de Nueva York ( Mobil), que habían sido separadas forzosamente por orden del Gobierno norteamericano casi 100 años antes. Como...
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...A Look at Cost of Capital Decisions at Exxon Mobile American Military University Abstract This paper discusses and analyses the cost of capital decisions Exxon Mobile faces after its acquisition of XTO Energy. The advantages and disadvantages of both single company – wide cost of capital and divisional costs of capital are detailed. Finally, the method of estimating the costs of capital and determining how Exxon Mobile could best evaluate the weights to use for various sources of capital is discussed. A Look at Cost of Capital Decisions at Exxon Mobile Due to its recent acquisition of XTO Energy, Exxon Mobile must reevaluate how it determines the proper cost of capital for use in making corporate investments across the company’s many business units. Essentially, Exxon Mobile has two choices, it can either use a single company – wide cost of capital for analyzing capital expenditures or it can evaluate the divisional costs of capital. Both of these two methods offer their own advantages and disadvantages in analyzing capital expenditures, however the divisional weighted average cost of capital is the best choice for Exxon Mobile due to its recent acquisition of XTO energy. The consequences of Exxon Mobile using a company - wide cost of capital are that is could lead to the overinvestment or underinvestment into divisions where the beta varies widely from the company beta (Hung Il, 2008). Companies such as Exxon Mobile have many different divisions that are separated either...
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...Exxon Mobil: Company Overview: Exxon Mobil Corporation is an American multinational Oil and gas corporation. It is one of the largest publically traded companies by market capitalization in the world with its operations spanning several continents. The Company was formed on November 30, 1999 by the merger of Exxon and Mobile (ExxonMobil, 2011). Exxon Mobil explores, produces and distributes natural gas and crude oil and also manufactures and distributes petroleum products. It also produces and sells petrochemicals such as polyethylene, aromatics, olefins, polypropylene plastics and other products. It has interests in thirty seven refineries world wide. It also markets its products through more than thirty two thousand retail stations worldwide (ExxonMobil, 2011). Types of market and legal systems that exist in countries that Exxon Mobil operates: Exxon Mobil has operations spanning several countries in the United States, Europe, Australia/Oceania, Asia, Africa, and Canada/South America. Market systems that exist in these countries range according to various policies that regulate the market place operations. In countries such as the US, Australia, Canada, countries in South America, Western Europe and some parts of Africa and Asia, the kind of market systems that exist are basically mixed market economy systems. In these systems, a bigger part of the market is controlled by the prices, demand and supply of commodities with few government regulations. In other regions...
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...Exxon Mobile, which is the world’s largest oil and gas company, faces many critics and is always under constant scrutiny by the public. They have been making positive changes however, concerning their impact on the environment and pride themselves on enhancing their social responsibilities as well. Environmentally, not only do they follow the Corporation’s Environmental Policy but they also are making positive steps towards making a better tomorrow. ExxonMobil’s Environmental Policy consists of the following: * Abide by the rules and regulations of environmental law and make educated decisions when there are no laws that apply. * Encourage their employees to respect and have concern for the environment while operating their individual tasks * Collaborate with industries and government to be more efficient and proactive during operations and projects * Prevent incidents, excess emissions and excess waste while improving facilities through operations and designs * Quick and effective responses to unfavorable occurrences * Lead and help research to further understanding on the results that the company has on the environment, to find ways to protect the environment and to create new technological advances in order to be more compatible with the environment’s needs * Exchange with the public on the issues concerning the environment in order to improve how the corporation operates * Carry out evaluations regarding the way the corporation operates to...
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...Royal Dutch Shell Exxon Mobil Team #1: EXECUTIVE SUMMARY Exxon Mobil Corporation (ExxonMobil) is an oil and gas company. It is the world’s largest integrated oil company. The company carries out the exploration and production of oil and gas; refining, transportation and marketing of oil and natural gas; and manufacture and sale of petroleum products. ExxonMobil also has interests in petrochemicals and electricity generation facilities. The company operates through three reportable business segments, namely, Upstream, Downstream and Chemical. It offers products and services under various brands such as Exxon, Esso and Mobil. ExxonMobil has presence in Americas, Europe, Asia-Pacific, Australia and Africa. ExxonMobil is headquartered in Texas, the US. Royal Dutch Shell Plc commonly known as Shell is an independent company with its registered office located in London, UK and headquartered in The Hague, Netherlands operating in the oil and gas industry globally. It is the second largest oil company in the world. The operations of the company are divided into three main segments including: Downstream, Upstream and Projects and Technology. The Upstream segment combines activities involved in the search for and recovery, liquefaction and transportation of oils and natural gas and wind energy. The Downstream segment is engaged in the activities of manufacturing, distributing and marketing of chemicals and oil products. Finally, the Projects and Technology segment includes all the...
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...Why do organization bring in outside consultant to manage the organizational change process ? Change management is essential for organizational development in dynamic environment. Any change is likely to be resisted by the employees, if their confidence in the organizational system evaporate. The role of external change agent is to establish the faith and confidence of the employees on the organizational management system, as a first step. Effective change management depends on absorptive capacity of the organization and adaptive skill of the employees. The same may be assessed and suitable measures may be suggested by the external change agent. Further organizational architecture and agility are important factors in quick decision making and adaptation to change. The external change management agent may study and suggest the suitable measures for improvement. Introduction to change management Change is only permanent feature of our life. Life of individuals and organizations are evolving ever since their creation. Modern companies are in a state of cultural change. From working more or less alone to solving specific tasks, we are now required to work in an interdependent way. Teamwork is vital. These changes require that we change what we expect from the co workers. We have to change the values we highly believe. Values like awareness, teamwork, tolerance, responsibility and information are paramount - just as flexibility and change readiness. Team work make in imperative...
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...Mergers and Acquisition: Exxon Mobil Merger Introduction Industry mergers or business combinations are a phenomenon that has been commonplace for quite some time now. They basically involve two or more organizations coming together to form a large corporate under which they operate. The new organization which may have a combination of the names of the merging components or a totally new name operates as a new entity. The new rule under which the new entity operates depends in the agreement on the terms of the merger. As stated in our advanced accounting text, the history of mergers can be traced back to the 1895 to 1905 period in the US when the small companies with small market shares combined forces to form larger entities that dominated the target markets. In this way their collective value accounted for 20% of the total GDP (Cartwright & Schoenberg, 2006, p 3). Since then mergers have remained a popular way of market consolidation and strengthening of the capital base of the various firms involved. The rise of globalization in the 1990s further increased the market for international mergers with firms located in different countries and continents coming together. These mergers have resulted in huge conglomerates across borders with multibillion dollar financial bases and thousands of international shareholders. This paper sets to discuss Exxon Mobil merger with special emphasis on...
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...| Futures & Options Report | | | | | | a) Our portfolio consists of five stocks, one put option and one futures contract. The five stocks we have are Exxon Mobil (XOM), Johnson & Johnson (JNJ), Google (GOOG), Ford (F), and Amazon (AMZN). These stocks are all traded on the NASDAQ stock market. We have purchased ten shares of each of the five stocks below. Below is a graph with shows when we purchased the stocks and how much it cost at that time. | Stock P | Date | Time | AMZN | $179.97 | 3/5/2012 | 1:28pm | XOM | $86.67 | 3/5/2012 | 1:29pm | GOOG | $614.70 | 3/5/2012 | 1:28pm | F | $12.48 | 3/5/2012 | 1:29pm | JNJ | $64.67 | 3/5/2012 | 1:28pm | The table below now shows the results of how the stock performed from 3/5/12 to 3/16/12: We will discuss some stock analysis and the gain/loss later in this report. | Current | Date | Time | AMZN | 185.05 | 3/16/2012 | 1:28pm | XOM | 86.44 | 3/16/2012 | 1:29pm | GOOG | 625.4 | 3/16/2012 | 1:28pm | F | $12.51 | 3/16/2012 | 1:29pm | JNJ | $65.12 | 3/16/2012 | 1:28pm | Other than having five stocks, we have a put option for Procter & Gamble and a futures contract of Gold. b) Analyzing the futures contract of gold we bought at the beginning, March 2, 2012, it closed at $1,698 which meant our initial value was at $10,125 with a margin call at $7500. If it drops below that price then we would have to borrow money to bring it back up to the initial margin. On March 3...
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