Exxon

Exxon. Exxon Mobil Corporation is an American multinational oil and gas company and one of the world's largest publicly traded energy providers. Formed through the merger of Exxon and Mobil in 1999, it is a direct descendant of John D. Rockefeller's Standard Oil trust. The corporation is a major player in upstream exploration and production, downstream refining and marketing, and chemical manufacturing, with operations spanning the globe.

History

The company's lineage traces directly to the 1870 establishment of the Standard Oil trust by John D. Rockefeller in Cleveland. Following the U.S. Supreme Court-ordered breakup of Standard Oil in 1911, the Standard Oil Company of New Jersey emerged as one of its largest successors. This entity was later renamed Exxon Corporation in 1972. Similarly, another successor, the Standard Oil Company of New York, evolved into the Mobil Corporation. The two companies announced a historic merger in 1998, which was completed in 1999, creating Exxon Mobil Corporation. Key historical events include the Exxon Valdez oil spill in Prince William Sound, Alaska in 1989, and the company's significant expansion into liquefied natural gas projects in Qatar and Papua New Guinea in the 21st century. Under longtime CEO Lee Raymond and later Rex Tillerson, who later served as United States Secretary of State, the corporation pursued a strategy of large-scale, integrated projects.

Operations

Exxon Mobil operates across all segments of the hydrocarbon value chain. Its upstream division explores for and produces crude oil and natural gas in key regions including the Permian Basin, the Guyana-Suriname Basin, Brazil, and offshore Nigeria. The downstream sector manages a global network of refineries, such as the Baytown Refinery in Texas and the Singapore Refinery, and markets fuels and lubricants under the Exxon, Mobil, and Esso brands. Its chemical division, one of the world's largest, manufactures polyethylene, polypropylene, and other petrochemicals at major facilities in Texas, Louisiana, and Saudi Arabia. The company is also a leading investor in carbon capture and storage technology and holds a significant stake in Imperial Oil in Canada.

Environmental record

The company's environmental and climate policies have been the subject of intense scrutiny and litigation. Following the catastrophic Exxon Valdez oil spill, the company faced billions in fines and settlements. In the 21st century, investigations by InsideClimate News and the Los Angeles Times alleged that Exxon Mobil's own scientists understood the risks of climate change as early as the 1970s, while publicly promoting doubt. The corporation has been sued by numerous attorneys general, including those from New York and Massachusetts, for allegedly misleading investors and the public. Major environmental groups like Greenpeace and the Sierra Club have consistently criticized its ongoing investment in fossil fuels. In 2021, an activist hedge fund, Engine No. 1, successfully won board seats to push for a stronger climate change strategy.

Financial performance

Exxon Mobil is consistently ranked among the largest companies by revenue on the Fortune 500 and the Forbes Global 2000. Its financial performance is heavily influenced by global commodity prices set by benchmarks like Brent Crude and West Texas Intermediate. The company faced significant challenges during the COVID-19 pandemic and the 2020 oil price war between Saudi Arabia and Russia, reporting historic losses and being removed from the Dow Jones Industrial Average after nearly a century. It has maintained a reputation for financial discipline, often prioritizing share buybacks and dividend payments, earning it a place as a Dividend Aristocrat on the S&P 500. Major financial institutions like JPMorgan Chase and Goldman Sachs provide regular analysis of its stock performance on the New York Stock Exchange.

Corporate governance

The company is headquartered in Spring, Texas, within the Houston metropolitan area. Its board of directors includes members from diverse backgrounds in energy, finance, and public policy. The role of CEO has been held by figures such as Darren Woods, who succeeded Rex Tillerson. Exxon Mobil maintains significant political lobbying efforts in Washington, D.C., and is a member of influential industry groups like the American Petroleum Institute and the Business Roundtable. Its shareholder base includes major institutional investors like The Vanguard Group and BlackRock, who have increasingly voted on resolutions concerning climate change disclosure and emissions targets.

Category:Oil and gas companies of the United States Category:Companies listed on the New York Stock Exchange Category:Fortune 500 companies