August 26, 2020 Read More →

Dow Jones shakeup leaves ExxonMobil out in the cold

CNN:

For decades, ExxonMobil was an unstoppable machine. It made gobs of money, spent that cash wisely and rewarded shareholders lavishly.

As recently as 2013, Exxon was the most valuable company on the planet. Its market value topped out at $446 billion in mid-2014, the last time crude prices traded above $100 a barrel.

But Exxon is now a shell of its former self.

A series of strategic decisions backfired badly, from betting on natural gas at the top of the market to being late to America’s shale boom.

Exxon has proudly raised its dividend 37 consecutive years, making the company a member of the dividend aristocrat group. But analysts said that streak is now in jeopardy.

Last year, Exxon relied on asset sales and borrowing to cover 64% of its dividend payout, according to the Institute for Energy Economics and Financial Analysis. That’s well above the company’s 10-year average of 30%. 

[Matt Egan]

More: Exxon was the world’s largest company in 2013. Now it’s being kicked out of the Dow

Posted in: IEEFA In the News

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