4. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 86
Dividend Yield: 3.72%
Market Cap: $490.1 billion
Exxon Mobil Corporation (NYSE:XOM) is one of the largest publicly traded energy providers and chemical manufacturers in the world. The company engages in the exploration for, and production of, crude oil and natural gas, as well as the manufacture, trade, and transportation of crude oil, natural gas, petroleum products, and petrochemicals. With operations in more than 60 countries around the globe, the oil giant gains a significant competitive edge due to its diversified world-class asset portfolio.
Though it is hands-down one of the leaders of the global fossil fuel sector, Exxon Mobil Corporation (NYSE:XOM) is also ramping up its investments in lower-carbon energy. The company recently unveiled its 2030 vision, a significant aspect of which is the pursuit of up to $30 billion of low emissions opportunities in the 2025 to 2030 timeframe. The oil major recently secured the largest offshore carbon dioxide storage site in the US through an agreement with the Texas General Land Office. Moreover, Exxon is working on what would be the biggest low-carbon hydrogen production facility in the world, with the capacity to produce up to 1 billion cubic feet of hydrogen per day.
In May 2024, Exxon Mobil Corporation (NYSE:XOM) announced the acquisition of Pioneer Natural Resources in a $59.5 billion all-stock deal, the largest deal in the energy sector in the last 8 years. The acquisition, which was a strategic move from the oil giant to bolster its presence in the Permian Basin, has already started to bear fruit as Exxon has used it to offset the effect of the decline in average oil prices during the quarter, registering the first impact of the new asset.
In Q3 of 2024, Exxon Mobil Corporation (NYSE:XOM) increased its production to 4.6 million oil-equivalent barrels per day, up 24% YoY. Q3 was Exxon’s first full quarter with Pioneer, which added 770,000 oil-equivalent barrels per day of highly advantaged production. The company is also improving the profitability of the barrels it produces and has doubled its unit earnings per oil-equivalent barrel from $5 in 2019 to $10 in the first nine months of 2024.
Exxon Mobil Corporation (NYSE:XOM) also reported a strong financial position in Q3 2024, achieving an operating cash flow of $17.6 billion, with its free cash flow at $11.3 billion. The company returned $26.1 billion to its shareholders in the form of dividends and share repurchases during the quarter, with plans to repurchase over $19 billion of shares by the end of 2024. Moreover, Exxon has increased its annual dividend for 42 consecutive years and announced a quarterly dividend of $0.99 in November.
With 86 elite money managers tracked by IM holding a stake in the company at the end of Q3 2024, Exxon Mobil Corporation (NYSE:XOM) is placed among the Top 12 Oil and Gas Stocks To Invest In According to Hedge Funds.
