2024-06-16 09:08:25 ET
Summary
- Exxon Mobil is focusing on high-potential production areas like Guyana and Permian to drive its upstream earnings.
- OPEC+ supply limitations could boost petroleum prices, benefiting Exxon Mobil.
- Undervalued Exxon Mobil offers potential for growth, especially with recent Permian-focused acquisitions.
- Shares trade at only an 11X P/E ratio while Exxon Mobil continues to generate a ton of free cash flow.
Exxon Mobil ( XOM ) is set to improve its earnings power through targeted investments in high-potential production areas such as Guyana and Permian, while at the same time the extension of OPEC+ supply curbs could also have a positive effect on petroleum prices. Exxon Mobil provides deep free cash flow value for investors, and the company has said that it is looking to push high-growth upstream assets in a bid to boost the importance of the production segment. With petroleum prices possibly benefiting from long-term supply curbs, I believe Exxon Mobil is set for a period of strong earnings growth. With shares also dipping lately and approaching oversold territory (RSI of 33.0), I believe Exxon Mobil makes a superior value proposition for long-term investors!...
Read the full article on Seeking Alpha
For further details see:
Exxon Mobil: OPEC+ Driving Earnings Upside (Rating Upgrade)