Summary
- Revenues and other income came at $65.05 billion, down 15.1% compared to the third quarter last year and down 5.8% sequentially. Earnings were $3.17 billion in the quarter or $0.75.
- Combining oil and gas production, Exxon Mobil produced 3,899K Boep/d this third quarter, up 3% year over year but down slightly sequentially. Liquids represented 2,392K Bop/d or 61.4%.
- While XOM is an excellent long-term investment, I believe it is quite essential to trade short term about 30% of your portfolio.
Source: usambassy.gov
Investment Thesis
The US-based Exxon Mobil (XOM) is one of the best "first-class" oil supermajors with about $300 billion in market capitalization. As it is common in this segment, the company pays a secure dividend yield of 4.92%, and it makes sense to hold XOM in your long-term portfolio.
The company is amongst my "six oil majors" group, which includes BP Plc (BP), Royal Dutch Shell (RDS.A) (RDS.B), Equinor (EQNR), Total S.A. (TOT), and Chevron (CVX) that I covered on Seeking Alpha regularly.
I have added ConocoPhillips (COP) recently to the group since the company is diversified and quite as strong. COP is considered the third-largest integrated energy company in the United States.
Please read my list of articles published (click on my list of articles published here).
Investing in the oil sector is not a simple assignment because of the highly volatile nature of the industry. Investors will have to understand that Exxon Mobil is not drastically changing in a few quarters or even a few years. It is a company that you virtually partner for years and keep in spite of the ups and downs.
When you invest in such a reliable company, it is essential to look at its underlying strength for the next five to ten years before totally committing.
While XOM is an excellent long-term investment, I believe it is quite essential to trade short term about 30% of your portfolio using key events to add or reduce your long position. Technical analysis can help you with this task.
