Is Big Oil Dying at Exxon-Mobil?

To clarify, data is the fundamental resource our civilization needs to operate. Hence, data is to the 21st Century what petroleum was to the 20th Century.

Hence, Exxon-Mobil runs more cash through its till but Alphabet keeps far more of its cash. Specifically, Alphabet had $109.14 billion cash and short-term investments on 31 December 2019. Conversely, Exxon-Mobil had $3.042 billion in cash and short-term investments on the same day.

Read more

Will the Oil Glut Sink Exxon-Mobil (XOM)?

A related problem is that oil is a sideline for both the United States and China. Thus, political leaders in those countries have no incentive to raise or lower oil prices.

Read more

Is Exxon-Mobil (XOM) Making Money?

Money rather than moral outrage is the probable motivation for the lawsuits. Exxon-Mobil’s (XOM) financial numbers indicate the company is generating a lot of money.

For example, Exxon-Mobil reports a free cash flow of $2.853 billion; and an operating cash flow of $7.78 billion, for 2nd Quarter 2018. Moreover, Exxon-Mobil earned a $23.799 billion gross profit on $73.501 billion in revenues during the 2nd Quarter.

Exxon-Mobile received a $3.95 billion net income and a $6.659 billion in operating income in 2nd Quarter 2018. However, Exxon-Mobile had only $3.43 billion in cash and short-term investments on June 30, 2018.

Therefore, Exxon-Mobil is not making that much money for a company that generated $244.363 billion in revenue in 2017. Exxon-Mobil generates a lot of revenues but it does not keep that much money in the bank.

Another problem is that Exxon-Mobil’s high revenue growth (26.56% in 2nd Quarter 2018) is not translating into cash. The return on Exxon-Mobil’s revenues is low.

Read more

Exxon-Mobil and Suncor sued for marketing Fossil Fuels

Exxon-Mobil and Suncor should do the same and offer to drop the lawsuit in exchange for investment in Commonwealth Fusion Systems or one of its competitors such as Tri-Alpha Technologies. Exxon-Mobil which had $3.177 billion cash and short-term investments on 31 December 2017 can easily afford to invest several hundred million dollars in fusion research.

If the City of Boulder and Boulder County are serious about fighting climate change they can agree to be the site of the first commercial fusion reactor. Commonwealth’s proposed test reactor would generate more than enough electricity to power Boulder; which has a population of around 108,090, and a city government dedicated to buying “carbon-free electricity.”

Read more

World’s Largest Wealth Fund wants to Sell $40 Billion Worth of Oil Stocks

Part of the reason for the proposal is risk avoidance; because around one-fifth of Norway’s gross domestic product comes from oil money. The hope is to keep generating enough income to keep Norway’s welfare state going into an oil-free future.

Read more

Is Exxon-Mobil still a Safe Investment?

Exxon-Mobil has a lot of cash and a lot of float, and that cash and float is increasing. That, and the unpopularity of fossil fuels these days certainly makes it a value investment but it’s also a growth investment. Who knew?

Read more

Stocks to Dump in 2017

That means there are some equities you should throw out of your portfolio right now. Disturbingly some big names; that were once among the best and brightest in stocks, are now among the deadwood you need to jettison.

Read more

The Incredibly Shrinking Exxon-Mobil

Big oil is withering away before our eyes, and destroying a classic value investment in the process. No oil company seems to be shrinking faster than Exxon-Mobil (NYSE: XOM).

Read more

Is Berkshire Hathaway right about Apple?

That’s what makes it a widows and orphans stock, no matter what happens it will make money for the foreseeable future perhaps the next 10 years or so. This reminds me of another major Buffett investment; Walmart Stores Inc. (NYSE: WMT). Like Apple, Walmart has so much money $483.83 billion in revenues in June 2016; that it can survive what would be catastrophic losses for the average company several times over.

Read more