ExxonMobil Corporation (NYSE Stock symbol: XOM) or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller’s Standard Oil Company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas. It is affiliated with Imperial Oil which operates in Canada.
ExxonMobil is one of the largest publicly traded companies by market capitalization in the world, having been ranked either No. 1 or No. 2 for the past 5 years, and is the second largest company in the world by market revenue. Exxon Mobil’s reserves were 72 billion oil-equivalent barrels at the end of 2007 which at current rates of production are expected to last over 14 years. With 37 oil refineries in 21 countries constituting a combined daily refining capacity of 6.3 million barrels (1,000,000 m3), Exxon Mobil is the largest refiner in the world, a title that was also associated with Standard Oil since its incorporation in 1870.
ExxonMobil is the largest of the six oil supermajors with daily production of 3.921 million BOE (barrels of oil equivalent). In 2008, this was approximately 3% of world production, which is less than several of the largest state-owned petroleum companies. When ranked by oil and gas reserves it is 14th in the world with less than 1% of the total.
What is ExxonMobil Stock worth Today?
ExxonMobil stock currently trades at around 89.00 which gives them a market capital of around $410 billion. This makes them the largest Petrochemical company in the world and the second largest company in the world in terms of market cap.
ExxonMobil Stock History Chart
ExxonMobil Stock Price History
As a rule the stock price of ExxonMobil tends to shadow the oil price, when oil goes up ExxonMobil goes up and vice versa. There are some exceptions to this rule however, the two main ones being, significant new oil finds which will obviously increase the price and disasters on the scale of Exxon Valdez, which have a detrimental effect on the oil price.
You can see from the above chart that the price dropped bellow $60 in the middle of 2010 when the recession was at its deepest. The price has since rebounded to around $90 which is only 10% off of pre-recession highs. This shows the resilience of oil stocks and proves they’re always the first to recover from an economic downturn.
ExxonMobil Stock Split History
ExxonMobil has split 5 times since being listed on the NYSE. All splits were 2:1 with only 40% resulting in an immediate profit for shareholders.
The first split took place on Jul 26, 1976 with the stock trading at 107.75 on the previous days trading and closed at 53.50 the day after, resulting in a loss of -0.70%.
The second split took place on Jun 12, 1981 with the stock trading at 68.25 on the previous days trading and closed at 33.63 the day after, resulting in a loss of -1.45%.
The third split took place on Sept 15, 1987 with the stock trading at 94.00 on the previous days trading and closed at 46.75 the day after, resulting in a loss of -0.53%.
The fourth split took place on Apr 14, 1997 with the stock trading at 101.25 on the previous days trading and closed at 51.75 the day after, resulting in a profit of 2.22%.
The fifth and final split took place on Jul 19, 2001 with the stock trading at 84.25 on the previous days trading and closed at 43.08 the day after, resulting in a profit of 2.27%.
When Will Exxon Mobil Stock Split Again?
ExxonMobil currently trades around 89.00; this is quite high, but not high enough to warrant a split. The share price would need to be around 150.00 before a split would be considered again. With the level of growth that’s predicted, I can’t see a split happening within the next 3 years.
Does Exxon Mobil Stock Pay a Dividend?
ExxonMobil pays a dividend quarterly; this amounts to an annual yield of around 2.20% per share and is inline with other companies in the sector, with the exception of BP who are still recovering from the Deepwater Horizon spill.
Should You Invest in Exxon Mobil Stock?
With western economies showing signs of recovery and demand in Asia continuing to grow it’s a sure bet that the price of oil will continue to rise and ExxonMobil will reap the rewards for the next five years or so.
There are of course certain risks involved when investing in a major oil company, the main one being a spillage or accident of some sort. Fortunately such accidents are rare; the last major incident for ExxonMobil was the Exxon Valdez disaster which was way back in 1989. It should be noted however that the fallout from this accident is still ongoing.
For the near term the outlook for ExxonMobil is good and baring any incidents the company is good for 10% growth per year for the next five years or so. When you add in 2.2% yield from dividends it’s easy to see why ExxonMobil is a good reliable investment.
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