Stocks - Exxon Mobil

Exxon Mobil is a manufacturer and marketer of petrochemicals, plastics, and a range of specialty projects. It also has holdings in electric power generator facilities and is based out of Irving, Texas. Exxon Mobil’s principle purpose is energy, which involves the exploration, production, and transportation of crude oil, natural gas, and petroleum products. It was formed on November 30, 1999, by the merger of Exxon and Mobil and is traded on the New York Stock Exchange under the ticker symbol XOM. It is a direct descendant of John D. Rockefeller’s Standard Oil Company and is currently the world’s largest publicly traded international oil and gas company.

Exxon Mobile has a frequently changing staff of board members and executives employed to help the company compete competitively with the changing market. Mr. Rex W. Tillerson was appointed as Chairman of the Board and Chief Executive Officer on January 1st, 2006. He joined the Exxon Organization in 1975 and since then has had numerous high ranking positions throughout the company. Last year he was paid over $34.9 million for the extremely important role he plays in the company.

Other high earners within the company include Jack Williams Jr. and Neil Duffin, both of which are the presidents for different subsidiaries owned by Exxon Mobil. Jack Williams leads XTO Energy Inc. This subsidiary was launched in order to manage global development of unconventional resources within Exxon Mobil; they specialize in Natural Gas research. The ExxonMobil Development Company is led by Neil Duffin, this subsidiary was launched by Exxon Mobil to specialize in drilling wells and finding new properties throughout the globe.

Exxon Mobil produces high returns for its investors. The 2011-2012 fiscal year produced $486.43 billion in total revenue and achieved a gross profit of $126.7 billion. The company’s total operating expense was $413.17 billion and its net income amounted to approximately $41 billion for the previous year. Exxon Mobil saw much higher returns this year than in years past, allowing them to issue dividends of .57 to its investors. Fiscal year 2010 achieved a gross profit of $107.82 billion while 2009 saw profits at about $89.73 billion. This rise in revenue may allude to a quickly developing pattern within the company. As oil prices rise, Exxon Mobil’s profits increase.

Exxon Mobil’s current stock price is at $77.83 per share and currently stands slightly on the high side of the 52 week average. May’s closing prices are relatively even with the last 3 months but relatively higher compared with the previous 5 years. Exxon Mobil, along with most of the petroleum market, saw a sharp increase in prices last spring and through the summer. This change in prices may have been a reaction to the Arab Spring, particularly the Libyan revolution.

Based on current data I believe that the Exxon Mobil Corporation will continue to produce high returns for its long term investors. It is a relatively healthy stock and has potential to produce high capital gains. During the three weeks that I tracked XOM it moved rapidly between gains and losses, at the end of the third week however I had lost a total of $146.40. As with most publically traded companies news and current events can change the outlook. However, Exxon Mobil can sometimes be more turbulent than other stocks due to the nature of what it sells. With oil being the most common way to produce the world’s energy, a near infinite amount of catastrophes can affect its shareholders.

This stock has the potential to be a relatively safe long term investment. With oil being constantly on the rise, it seems an appropriate stock to invest in. Exxon Mobil’s satisfactory track record in the past few years and resilience as a reputable Fortune 500 company should give investors good judgment when investing in the company. Although I didn’t gain money in the three weeks I held the stock I still have enough faith in the company to invest in it again should I get a chance.