Jim Cramer’s Latest Game Plan: 20 Stocks to Watch

10. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 92

Cramer mentioned the love surrounding Exxon Mobil Corporation’s (NYSE:XOM) stock presently and the kerfuffle around Chevron’s acquisition of Hess Corporation. Here’s what he said:

“Finally, we hear from two biggest, biggest oil companies, Chevron and Exxon… If not for that battle with Exxon for the Hess acquisition, I think the stock could be quite a bit higher because of its great conventional flow. Exxon doesn’t have the earnings power that Chevron has, but it’s got a lot more love right now.”

Exxon (NYSE:XOM) is engaged in the exploration and production of crude oil and natural gas. Currently, the company is involved in a significant legal dispute concerning Chevron’s proposed $53 billion acquisition of Hess, centered around whether the merger would constitute a change of control over Hess’s valuable subsidiary in Guyana, an area critical to both companies due to its substantial oil reserves.

The company contends that the right of first refusal was triggered by the potential change of control. Although the U.S. Federal Trade Commission recently permitted Chevron’s purchase of Hess, Exxon’s challenge to the merger is expected to unfold over the coming months, with a three-judge arbitration panel set to review the case in May.

In the most recent quarter, Exxon (NYSE:XOM) reported positive financial results stemming from its merger with Pioneer, which contributed $500 million in earnings. The company also highlighted a strong financial performance, with free cash flow amounting to $4.9 billion in the second quarter of 2024, bringing the total free cash flow for the first half of the year to $15 billion.