Exxon Mobil Corporation (XOM): Why You Should Buy

Revenue

ExxonMobil’s revenue declined in the first quarter by 12% and production volume fell 3.5% for the seventh consecutive quarter. This is undoubtedly part of the reason ISI Group cut ExxonMobil from a buy to a neutral position. However, I believe that now is actually the best time to buy Exxon Mobil Corporation (NYSE:XOM), and one reason is because of all of its growth potential.

Over the next four years, it will begin pumping oil and gas from about 24 new facilities around the world. One of the first such projects to come online was the Kearl Oil Sands in Canada, which was significantly delayed but finally began production in March.

One of ExxonMobil’s other large projects is the liquefied natural gas project in Papau New Guinea. This site will become operational in 2014.

ExxonMobil also agreed to a deal with Russian oil company Rosneft to build an LNG facility in the country by 2018. Additionally, Rosneft recently announced that it is working with the Iraqi administration on rights to drill within Iraq. Rosneft will need a partner for this and is considering utilizing ExxonMobil.

These are just a few of the facilities that ExxonMobil will begin harvesting oil and gas from over the next couple years. They are an indication that ExxonMobil’s falling production will come to an end in the very near future and that the company will be able to have steady production growth for the next few years.

As a final bonus, Exxon Mobil Corporation (NYSE:XOM) also raised its second-quarter dividend to $0.63 per share from $0.57 per share.

Conclusion

ExxonMobil has seen decent share price growth over the past few years, though it has been outstripped by Chevron and ConocoPhillips. Look for that to change moving forward. ExxonMobil is in a good growth position as evidenced by its better earnings in the most recent quarter and its production potential from its new operations.

The article ExxonMobil Is a Must Buy originally appeared on Fool.com and is written by Sean Sullivan.

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