Transcript Slide 1
Why buy a big oil company? • Demand for oil is increasing all over the world • Demand for alternative energy is increasing all over the world • Big oil companies like Exxon Mobil and British Petroleum (BP) produce both XOM • • • • Sector: Energy Market Cap: 439.76 B Explores for oil and gas on six continents Produces, transports and sells crude oil, natural gas and petroleum products. • Interests in electric power generation • Develops more energy-efficient diesel, hydrogen and solar technology Promising future contract • Reuters reported that Gazprom OAO announced that between April 2008 and May 2008, it will sign a contract to buy the entire annual gas output of 11 billion cubic meters from the Sakhalin-1 field of an oil company, Exxon Mobil Corporation, based in the United States. Further details were not disclosed. More recent news • Exxon Mobil's 41.7 percent stake in a heavy oil project in Venezuela's Orinoco Belt region had a net-book value of about $750 million, according to a September filing with the U.S. Securities and Exchange Commission. Exxon Mobil is challenging the Chavez government's nationalization of one of four heavy oil projects in the Orinoco River basin, one of the world's richest oil deposits. • Irving, Texas-based Exxon Mobil is the world's largest oil company and last year was the mostprofitable U.S. corporation in history. 2007 results • Capital and exploration project spending increased to $20,853 million in 2007, up 5% from 2006. • The Corporation distributed a total of $35.6 billion to shareholders in 2007 through dividends and share purchases to reduce shares outstanding, up $3.0 billion from 2006. • Net income was up 3% from 2006. • Earnings per share excluding special items increased 11% to $7.28, reflecting strong business results and the continued reduction in the number of shares outstanding. New, Greener Technology • ExxonMobil Chemical and ExxonMobil’s Japanese affiliate, Tonen Chemical, introduced new battery separator film technologies that are expected to significantly enhance the safety, power and reliability of lithium-ion batteries for use in hybrid and electric vehicles. • Global energy management system reduces energy consumed at refineries and chemical complexes. • Working with Toyota and Caterpillar to design lowemission, high-efficiency gasoline and deisel fuel/engine systems. • Interests in 85 cogeneration (simultaneous production of energy and steam using natural gas) power facilities in 30 locations worldwide. • Research programs for hydrogen and solar power.