Aster Chemicals and Energy is reportedly preparing to make a bid for Exxon Mobil's (XOM, Financial) network of petrol stations in Singapore. This deal involves 58 stations and carries an estimated value of around $1 billion. According to insiders, Exxon Mobil has moved into the formal bidding stage, with binding offers expected by May. These developments indicate a strategic shift as Exxon Mobil evaluates its retail operations in the region.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for Exxon Mobil Corp (XOM, Financial) is $123.86 with a high estimate of $144.00 and a low estimate of $93.00. The average target implies an upside of 14.02% from the current price of $108.63. More detailed estimate data can be found on the Exxon Mobil Corp (XOM) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, Exxon Mobil Corp's (XOM, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Exxon Mobil Corp (XOM, Financial) in one year is $95.29, suggesting a downside of 12.28% from the current price of $108.63. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Exxon Mobil Corp (XOM) Summary page.
XOM Key Business Developments
Release Date: January 31, 2025
- Earnings: $34 billion in 2024, third highest result in a decade.
- Cash Flow from Operations: $55 billion, third highest in a decade.
- Free Cash Flow: More than covered shareholder distributions.
- Return on Capital Employed (ROCE): 13% in 2024; 17% excluding cash balances and projects under construction.
- Average ROCE (Five Years): Industry leading 11%; 15% excluding cash balances and projects under construction.
- Production Growth: Record production from advantaged assets; highest liquids production in over 40 years.
- Permian Production: Record production with synergies expected to average over $3 billion per year.
- Guyana Production: Record production reaching 650,000 barrels per day.
- Dividend and Buybacks: Over $125 billion distributed in the last five years.
- Total Shareholder Return: 14% compounded annual growth over the last five years.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Exxon Mobil Corp (XOM, Financial) delivered strong financial results with earnings of $34 billion in 2024, marking the third highest result in a decade.
- The company achieved a significant reduction in methane intensity, over 60% since 2016, showcasing its commitment to environmental performance.
- Exxon Mobil Corp (XOM) reported record production levels in the Permian and Guyana, highlighting successful operational execution.
- The company is advancing its low carbon solutions, with a unique end-to-end system for capturing, transporting, and storing carbon emissions.
- Exxon Mobil Corp (XOM) has a robust pipeline of major projects set to start in 2025, expected to deliver over $3 billion in earnings potential by 2026.
Negative Points
- Despite strong earnings, Exxon Mobil Corp (XOM) faces softer market conditions, which could impact future financial performance.
- The company is involved in legal disputes, such as the lawsuit against the California Attorney General, which could pose reputational risks.
- Exxon Mobil Corp (XOM) relies on government incentives for some low-carbon projects, indicating potential vulnerability to policy changes.
- The chemical market remains challenging, with margins consistently below the 10-year average, affecting profitability in this segment.
- Exxon Mobil Corp (XOM) has limited presence in the Gulf of Mexico, potentially missing out on opportunities in this region.
