- XOM has had its most challenging year ever; we think that economic indicators and trends in commodities suggest these doldrums are ending.
- Exxon's $19 billion write-down was actually part of a strategic shift in its upstream strategy that will ultimately benefit shareholders.
- Exxon's investment in downstream should pay off over the coming quarters. We show what even a small surprise in downside margins could mean for price.
- Peak oil is ahead of us, political risk is relatively low, and the robust cyclical recovery will cause XOM to outperform.
- We discuss the risks to our thesis materializing.
For further details see:
Why Exxon Mobil Is A Buy Despite Mixed Earnings