How Much Money Did Exxon-Mobil (XOM) make in 2021?

Anybody who visits a filling station these days will wonder if big oil is a value investment? In particular, people will wonder how much money oil giants such as Exxon-Mobil (NYSE: XOM) are making?

Anybody who visits a filling station these days will wonder if big oil is a value investment? In particular, people will wonder how much money oil giants such as Exxon-Mobil (NYSE: XOM) are making?

Moreover, Exxon-Mobil’s revenues grew in 2021. For example, the quarterly operating income grew from -$26.613 billion on 31 December 2021, and the quarterly gross profit grew from $7.715 billion on 31 December 2021.

So yes, Exxon-Mobil was making more money before $4.20 a gallon gas. To explain, the AAA estimates the average US price for a gallon of regular gas was $4.20 on  2 April 2022. Similarly, the average price for a gallon of diesel fuel was $5.10 on the same day.

Impressive Revenue Growth at Exxon-Mobil

Impressively, Exxon-Mobil (XOM) shows impressive revenue growth. For example, Stockrow estimates Exxon-Mobil’s revenues grew by 82.56% in the quarter ending on 31 December 2021.

However, Exxon-Mobil’s revenues can shrink dramatically. For example, Stockrow estimates Exxon-Mobil’s revenues fell by 30.2% in the quarter ending on 31 December 2021.

However, that revenue growth is not translating into value. In fact, Exxon-Mobil’s total assets fell from $358.043 billion on 30 September 2020 to $336.688 billion on 30 September 2021. Tellingly, Exxon Mobil reported no asset numbers on 31 December 2021.

Thus, Exxon-Mobil is shrinking despite the incredible revenue growth. Hence, I cannot call XOM a value investment because it loses value.

How Much Cash is Exxon-Mobil Generating?

Exxon-Mobil (NYSE: XOM) can generate enormous amounts of cash. For example, Exxon-Mobil reported a quarterly operating cash flow of $17.124 billion on 31 December 2021. The quarterly operating cash flow grew from $4.005 billion on 31 December 2021.

However, Exxon-Mobil reported no quarterly ending cash flow on 31 December 2021. The last quarterly ending cash flow was $1.303 billion on 30 September 2021.

Exxon-Mobil is not keeping only some of that cash. For instance, the cash and short-term investments grew from $4.364 billion on 31 December 2020 to $6.802 billion on 31 December 2021.

Impressively, Exxon-Mobil can pay enormous amounts of debt. For example, Exxon-Mobil reported a quarterly financing cash flow of -$12.801 billion on 31 December 2021. Consequently, Exxon-Mobil’s total debt fell from $68.812 billion on 31 December 2020 to $53.029 billion on 31 December 2021.

Is Exxon-Mobil a Value Investment?

Many people will wonder if XOM is a value investment because of a modest share price. $83.12 on 1 April 2022.

Additionally, Exxon-Mobil (XOM) is delivering impressive share value growth. Mr. Market paid $57.39 for XOM on 1 April 2021. Hence, I consider Exxon-Mobil a speculative growth stock in today’s markets.

That’s odd because Exxon-Mobil is 150 years old. It is a descendant of John D. Rockefeller Senior’s infamous Standard Oil cartel.

Plus, Exxon-Mobil is a tremendous dividend stock. Impressively, Exxon-Mobil has scheduled seven 88₵ quarterly dividends between December 2022 and March 2024. Overall, Exxon-Mobil delivered a $3.52 forward dividend and a 4.23% dividend yield on 2 April 2022.

A Tremendous Stock but not a Value Investment

Hence, I consider Exxon-Mobil a tremendous stock but not a value investment. I cannot call XOM a value investment because it is unstable. Recent history shows, Exxon-Mobil’s revenues could collapse.

Moreover, I just hate the morality of oil. Notably, oil is driving destructive wars in Ukraine and Yemen. Plus, fossil fuels drive climate change. I think making money from the planet’s destruction is wrong. So, Exxon-Mobil is a great stock for people with no conscience.

Finally, Exxon-Mobil (XOM) faces a dangerous competitor that could destroy it.

Exxon-Mobil’s most dangerous competitor: Tesla Motors

Strangely, Exxon-Mobil’s competitor is Tesla Motors (TSLA). To explain, Tesla is an energy company.

I consider Tesla an energy company because it provides power for vehicles, businesses, and homes. The energy is electricity from batteries that can power a car, a house, or a city. Moreover, Tesla (TSLA) also builds solar panels that can produce electricity for homes, communities, businesses, and vehicles.

Tesla threatens Exxon-Mobil (XOM) because it can power vehicles without petroleum. In particular, Tesla claims to have delivered over 936,000 electric vehicles in 2021 and 308,000 electric vehicles in the fourth quarter of 2021.

Volkswagen threatens Exxon-Mobil

Worse, Tesla’s success is turning other auto companies such asFord (F), General Motors (GM), Stellantis (STLA). and Volkswagen (DE: VOW) into energy companies. For example, Volkswagen AG (VWAGY) plans to build six giant battery factories to power vehicles without oil, Forbes reports.

In fact, Volkswagen launched a battery company, Société Européenne to control the battery production process. Thus, Volkswagen is now an energy company and a competitor to Exxon-Mobil.

Société Européenne threatens Exxon-Mobil because it will supply raw materials for batteries and manufacture the batteries. I think such large-scale production will make batteries cheap and widespread and reduce the demand for gasoline and diesel. Ultimately, that will hurt Exxon-Mobil’s profits.

Nor is it just Volkswagen, Stellantis; the owner of Chrysler, Dodge, Jeep, and Fiat, plans to spend $4.1 billion on a gigantic battery factory in Windsor, Ontario. Stellantis plans a second battery factory somewhere in the US, The Verge claims.

Consequently, Exxon-Mobil’s future looks dismal. I think much of Exxon-Mobil’s market and its profits will shrink as electric vehicle use grows. Therefore, investors need to be leery of XOM.