I perceive Exxon Mobil as a defensive security due to (1) top-tier FCF/dividend coverage ratio, (2) below-average financial leverage (as a result of its integrated model that delivers strong FCF from its refining and chemicals businesses). Upside: (1) improved Upstream production, (2) potential acquisitions to add inorganic reserves.
Taking into account target CAPEX, I believe that XOM could maintain: (1) production level >4Mboed (at least before 2020), (2) strong balance sheet, (3) dividend yield > 4%. My major concern: if it is sufficient organic CAPEX for maintaining production after 2020.
I perceive Exxon Mobil as a defensive security due to (1) top-tier FCF/dividend coverage ratio, (2) below-average financial leverage (as a result of its integrated model that delivers strong FCF from its refining and chemicals businesses). Upside: (1) improved Upstream production, (2) potential acquisitions to add inorganic reserves.
Taking into account target CAPEX, I believe that XOM could maintain: (1) production level >4Mboed (at least before 2020), (2) strong balance sheet, (3) dividend yield > 4%. My major concern: if it is sufficient organic CAPEX for maintaining production after 2020.