Price correction in giant oil and gas firm
Shares of ExxonMobil, $321 billion energy business company, has fallen nearly 11% since the start of the year.
The oil and gas company recently reported its fourth quarter and full year results early this month.
ExxonMobil reported 17.4% rise in revenue and an impressive 151% increase in profits. Minus any gains from revaluation of deferred income tax brought by the recent tax reform, ExxonMobil would still have delivered a strong 76% rise in profits.
“The impact of tax reform on our earnings reflects the magnitude of our historic investment in the U.S. and strengthens our commitment to further grow our business here.
“We’re planning to invest over $50 billion in the U.S. over the next five years to increase production of profitable volumes and enhance our integrated portfolio, which is supported by the improved business climate created by tax reform.”
Darren W. Woods, chairman and chief executive officer
In 2017, ExxonMobil also had a book value of $187.7 billion (+$20 billion a year ago) and generated $10 billion in free cash flow while having provided 13 billion in dividends and share repurchases to shareholders. *Debt figures were not retrieved from recent report.
In the past three fiscal years excluding 2017, ExxonMobil allocated $34 billion in financing activities and accumulated $21.9 billion in free cash flow.
Analysts have an average price target of $86.30/share vs. $76.50 at the time of writing. Conservative calculations indicated a per share figure of $70.
Disclosure: I have shares in ExxonMobil.