5. Exxon Mobil Corporation (NYSE:XOM)
Navellier & Associates’ Stake Value: $19,743,376
Number of Hedge Fund Holders: 81
Exxon Mobil Corporation (NYSE:XOM) is one of the largest energy and chemical companies in the world. It was founded in 1999 when Exxon and Mobil, both originally part of John D. Rockefeller’s Standard Oil Company, merged. Exxon Mobil Corporation (NYSE:XOM) recently completed its acquisition of Pioneer Natural Resources. As part of the deal, Pioneer shareholders received 2.3234 shares of Exxon Mobil Corporation (NYSE:XOM) for each Pioneer share they owned. This acquisition significantly expands Exxon Mobil Corporation (NYSE:XOM)’s operations in the Permian Basin, effectively doubling its presence in the region.
In Q1 2024, Exxon Mobil Corporation (NYSE:XOM) reported earnings of $2.06 per share. Analysts predict that for the full fiscal year 2024, Exxon Mobil Corporation (NYSE:XOM)’s earnings per share (EPS) will decrease by 6.84% year-over-year. However, they expect a rebound with a 7.18% increase in EPS for FY 2025, followed by an additional 4.69% increase in FY 2026.
At the end of Q1 2024, Exxon Mobil Corporation (NYSE:XOM) ranks 5th in Navellier & Associates’ top 10 stock picks, as they held 169,850 shares of Exxon Mobil Corporation (NYSE:XOM), valued at $19,743,376. This investment made up 2.43% of their total portfolio, as stated in regulatory filings.
Madison Dividend Income Fund stated the following regarding Exxon Mobil Corporation (NYSE:XOM) in its first quarter 2024 investor letter:
“This quarter we are highlighting Exxon Mobil Corporation (NYSE:XOM) as a relative yield example in the Energy sector. XOM is a leading integrated oil and natural gas company. It has upstream assets that develop and produce oil and natural gas, along with downstream refining and chemical manufacturing assets. We believe it has attractive low-cost acreage in the Permian basin and has a sizeable growth opportunity in Guyana. Further, we think XOM has a sustainable competitive advantage due to size and scale, and its ability to integrate refining and chemical assets provides a low-cost advantage versus competitors.
Our thesis on XOM is that it will grow production volumes of oil and gas moderately over the next few years, while limiting excessive capital investment that plagued the industry from 2014-2020. Production growth will come from its 2023 acquisition of Pioneer Natural Resources, which is the largest producer in the Permian basin. XOM plans to double its Permian output by 2027, to 2 million barrels per day. Capital spending will be limited to $20-25 billion per year through 2027, which should allow for significant amounts of cash to be returned to shareholders including a $35 billion share repurchase program and continued dividend increases. Higher oil prices would provide a tailwind to our thesis but are not necessary. We think XOM can grow earnings and cash flow if oil prices remain above $60 per barrel…” (Click here to read the full text)
