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.

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Elon Musk Just Proved Electric Cars Are Competitive with Gas and Diesel Burners

In today’s world, electric cars could soon be cost competitive and high performance while oil companies are struggling to survive.

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Energy Disruption: Why I Won’t Buy Oil Stocks Now

My prediction is that the energy industry is about to go through a process of disruption similar to what the computer industry went through in the 1980s. In 1980 the computer industry consisted of a few companies such as IBM that relied upon giant centralized systems. By 1990 the industry had become decentralized as new competitors like Apple sold smaller, cheaper machines that diffused computing power to everybody.

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Is Russia a Theocracy?

In terms of its historical origins, domestic policy, and foreign relations, the situation in Russia has some disturbing similarities to Iran. In both nations, an all-powerful religious establishment is promoting authoritarian government, undermining democracy, and supporting or at least turning a blind eye to state-sanctioned terrorism.

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Is Uncle Warren Going Shopping?

What’s more intriguing is that Uncle Warren himself seemed to confirm such speculations with a cryptic remark to MSNBC. After calling Exxon a “wonderful company,” he said, “We thought we might have other uses for the money.”

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Falling Commodities Prices could Create Economic Turmoil

The effect of falling oil prices should have us wondering about other commodities and energy in general. As modern technology makes increases the supply of commodities, prices will drop making industries and enterprises unprofitable with devastating effects on employment and the greater economy.

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How Lower Gasoline Prices Could Affect Big Retail

Energy is not the only industry that would be disrupted by falling oil and gas prices. The effect of cheaper gasoline on big retail could be just as profound and wide ranging.

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