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How Has ExxonMobil’s Stock Performed in 2016?

What to Expect from ExxonMobil's 1Q16 Results

(Continued from Prior Part)

XOM’s stock performance

In the previous part of this series, we analyzed the changing dynamics of ExxonMobil’s (XOM) business segments. In this part, we’ll look at XOM’s stock performance.

In 2016, integrated energy stocks have been rising since February due to spikes in oil prices. The rise in oil prices is favorable for the upstream segment earnings of integrated energy companies. From February 2 until April 20, ExxonMobil (XOM) has seen its stock price rise by 16%.

XOM’s peers like YPF (YPF) and PetroChina (PTR) rose by 10% and 25%, respectively, during the same period. Statoil (STO) rose sharply by 35%. If you want exposure to global stocks, you can consider the Vanguard Total World Stock ETF (VT).

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ExxonMobil’s capex, cost, and divestment position

ExxonMobil (XOM) plans to maintain strict capital discipline in terms of capex as well as operating costs. With this aim, XOM has cut its capex guidance to $23 billion for 2016, around 25% lower than 2015. XOM had incurred capex of $31 billion in 2015, of which the main portion was in the upstream segment.

Plus, ExxonMobil is focused on lowering costs through effective execution of projects. Per XOM, its refining unit cost is 15% lower than the industry average. The company has reduced its upstream unit cost by 9% in 2015. Also, the company has been churning its portfolio by divesting non-strategic assets and investing in attractive projects. In 2015, XOM raised $2.4 billion from asset sales.

Continue to Next Part

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