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Exxon Mobil’s Q2 2019 earnings: Eleven facts the company would like investors to forget

August 01, 2019
Kathy Hipple and Tom Sanzillo
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Key Findings

The amount the company received for a barrel of oil increased by 11% to $57.95 per barrel in the second quarter.

ExxonMobil borrowed $4.4 billion and paid $3.7 billion to shareholders during the second quarter. The money increased company indebtedness by 11%.

There were no significant asset sales during the second quarter. ExxonMobil’s plan calls for $15 billion by end of 2021. The company acknowledges that its original list of assets is unlikely to produce the $15 billion projected and it is adding more assets not on the list.

Executive Summary

ExxonMobil’s second quarter earnings report contained more red flags than usual (See IEEFA update: Exxon’s Q2 report marks another signpost on the long road downwards). Its market capitalization is declining even as the bull market thunders on. It now appears all but certain that ExxonMobil will fall out of the elite group of companies in the top ten of the Standard and Poor’s 500, a spot it has held for at least four decades. In 1980, seven of the top ten companies in the S&P 500 were oil and gas companies. With ExxonMobil’s latest step down in Q2 2019, there are now none.

5-year performance of ExxonMobil

Please view full report PDF for references and sources.

Kathy Hipple

Former IEEFA Financial Analyst Kathy Hipple is a founding partner of Noosphere Marketing and the finance professor at Bard’s MBA for Sustainability. She worked for 10 years with international institutional clients at Merrill Lynch and then served as CEO of Ambassador Media.

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Tom Sanzillo

Tom Sanzillo is Director of Financial Analysis for IEEFA. He has produced influential studies on the oil, gas, petrochemical and coal sectors in the U.S. and internationally, including company and credit analyses, facility development, oil and gas reserves, stock and commodity market analysis, and public and private financial structures. He also examines such areas as community and shareholder activism, institutional investment, public subsidies and Puerto Rico’s energy economics.

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