Exxonmobil obtained leading financial results from the industry in the first quarter.
This allowed this to return an amount of effective cash to the industry to their shareholders.
The oil company plans to improve its performance in the coming years.
ExxonmobilI It is the gorilla of 800 pounds in the oil sector. It is not only the largest company in the industry for market capitalization (more than $ 450 million), but also the leader in several crucial categories.
It oil company He showed his capacity in the first quarter when he offered leading performance in the industry in the midst of challenging market conditions. Here is a look at the quarter and the key factors that feed ExxonmobilSuccess.
Where to invest $ 1,000 right now? Our analyst team just revealed what they think are the 10 best stocks to buy right now. Continue »
Recent results from the first quarter of exxonmobil were Nothing short Exceptional, taking into account market conditions during the period. The company obtained a leading income of the industry of $ 7.7 billion, or $ 1.76 per action, which exceeded analysts expectations in $ 0.01 per action. He also led the sector by producing a cash flow of $ 13 billion from operations, while also generating $ 8.8 billion in free cash flows.
The company gained stronger revenue than expected, despite a significant decrease in industry improvement margins, the weakest prices of crude oil, lower -based volumes of some non -core assets and higher expenses of growth initiatives.
A factor feeding his strong results was his Robust production of oil and gas in the quarter. Exxon production had an average of 4.6 million Barrels of Oil Equivalent (BOE)at the day. This was 20% of 20% of the previous year periodpromoted by its acquisition of pioneering natural resources last year.
Image Source: Getty’s pictures.
The other major catalyst was the leading structural cost savings program in the Exxon industry. This strategy Now it is saving The company of $ 12.7 billion a year compared to the level of 2019, which is more than all other international oil companies (IOC). The company captured additional $ 600 million of cost savings through this program During the first quarter.
The combination of investments to grow their volumes and the saving of structural costs added $ 4 billion to the company’s bottom line during the first quarter, which helped make up for part of the impact of inflation and other factors on its results.
The flow of the leader in the exxon industry allowed him to obtain returns from the leading shareholders of the industry. The oil giant sent $ 9.1 billion to their investors during the quarter, including the purchase of its $ 4.8 billion action, leading the sector. This has the company to repurchase about $ 20 billion this year.
Exxon also paid $ 4.3 billion in dividends. The company delivered its 42nd consecutive increase in consecutive sector dividends earlier this year. Only 4% of companies in S&P 500(Snpindex: ^GSPC) They have given a dividend growth of 42 years or older.
The company elite balance played a key role in their ability to return cash to investors. The company ended the quarter with $ 18.5 billion in hand cash. Although this dropped from $ 23.2 billion at the end of the fourth quarter, maintained the leading industry in the industry leverage relationships of 12% of capital debt (less than 13% of the fourth quarter) and 7% clean after the turnover of their massive cash balance (up to 6% at the end of last year). This gives you a lot of pillow to reduce oil prices in the future.
Exxonmobil firmly hopes to improve its already leading performance in the industry in the future. The company continues to invest a lot in the extension of its incorporated resources, which are its low -cost and lowest assets. The company plans to start 10 projects for this year, that will generate More than $ 3 billion of earnings next year at constant prices and margins. In the meantime, although prices and margins fall, these investments will still contribute to their financial results.
The company also goes to the dollars of $ 18 billion in structural cost savings by the end of 2030 compared to 2019 flat. When adding to its growth capital investments, Exxon hopes to add $ 20 billion to their profits and $ 30 billion to their cash flow by 2030.
The oil giant’s strategy to improve their gain capacity also puts it in a stronger position to reduce oil prices In the future. In the meantime, the potential will significantly increase the company’s reverse if prices improve.
Exxonmobil continues to show that it is the best company in the oil industry. Their ability to produce industry leading benefits and return more cash to investors who have helped Donate –It the fuel to produce total peer leadership returns (17% return from annual shareholders composed over the last three years). With more growth in income and cost savings, Exxon is in a strong position to continue to grow the value of shareholders In the futureMaking it an excellent oil stock to buy and maintain during the long journey.
Before buying shares at Exxonmobil, consider this:
It Motley Fool Stock Exchange Advisor The analyst team just identified what they think are the 10 best stocks For investors to buy now … and exxonmobil was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Think about whenNetflixMade this list on December 17, 2004 … if you invested $ 1,000 at the time of our recommendation,would you have 623,685 $!* Or when NvidiaMade this list on April 15, 2005 … if you invested $ 1,000 at the time of our recommendation,You would have 701,781 $!*
Now it’s worth notingValue AdvisorThe total average profitability is906%: a market crushing performance compared to164%For the S&P 500. Do not miss the most recent list of 10 Top, available when you joinValue Advisor.
Matt dilolo It has no position in any of the stocks mentioned. The Motley Fool has no position in any of the aforementioned stocks. The mold’s fool has a Outreach policy.
