2024-06-18 04:16:19 ET
Summary
- Exxon Mobil recently completed the merger with Pioneer Natural Resources, adding debt and boosting production at relatively high oil prices.
- OPEC+ restricting oil production and holding spare capacity is likely to lead to a future oil price collapse when production ramps back up.
- The stock would be far more attractive if XOM would restrain from share buybacks and build up the balance sheet for the next storm in the energy sector.
Most energy stocks remain unappealing, trading close to all-time highs, while OPEC+ restricts oil production. Exxon Mobil Corporation ( XOM ) recently completed a merger with Pioneer Natural Resources, adding to debt and boosting production in another move that doesn't help long-term industry pricing. My investment thesis remains Bearish on the energy giant....
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Exxon Mobil: Prepare For A Rainy Day