ExxonMobil

ExxonMobil
Lanzao0o1 · CC BY-SA 4.0 · source
Name	ExxonMobil Corporation
Type	Public
Traded as	NYSE: XOM, S&P 500 component
Industry	Oil and gas industry
Founded	30 November 1999 (merger), Predecessors: Standard Oil (1870), Exxon (1972), Mobil (1911)
Founder	John D. Rockefeller (Standard Oil)
Hq location	Spring, Texas, U.S.
Key people	Darren Woods (Chairman & CEO)
Products	Petroleum, natural gas, petrochemicals, lubricants
Revenue	413.7 billion (2023)
Num employees	~62,000 (2023)

ExxonMobil. ExxonMobil Corporation is an American multinational oil and gas company and one of the world's largest publicly traded energy providers. Formed by the merger of Exxon and Mobil in 1999, its lineage traces directly to the Standard Oil trust founded by John D. Rockefeller. 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 origins lie in the Standard Oil trust, incorporated in 1870 in Ohio and broken up by the Supreme Court of the United States in 1911 following an antitrust ruling. Two of the resulting entities, Standard Oil of New Jersey and Standard Oil of New York, eventually became Exxon and Mobil, respectively. Throughout the 20th century, both companies grew into international giants, with Exxon notably involved in major projects like the Prudhoe Bay Oil Field in Alaska and Mobil expanding its global lubricants and fuel marketing. The landmark merger, valued at approximately US$81 billion, was finalized on November 30, 1999, creating the world's largest company by market capitalization at the time. Key historical events include the Exxon Valdez oil spill in 1989 in Prince William Sound and the company's long-standing operations in regions like the Niger Delta.

Operations

ExxonMobil's business is segmented into Upstream, Downstream, and Chemical divisions. The Upstream division focuses on exploration and production, with major assets in the United States Permian Basin, Guyana's Stabroek Block offshore development, Brazil's pre-salt fields, and LNG projects in Mozambique and Papua New Guinea. The Downstream segment operates one of the world's largest refining networks, with complexes in Baytown, Baton Rouge, and Singapore, and markets products under brands like Esso and Mobil 1. The Chemical division is a leading producer of polyethylene and paraxylene, with major facilities in Beaumont and Jurong Island. The company also maintains significant research and development capabilities through its ExxonMobil Research and Engineering division.

Environmental record and controversies

The company has faced sustained criticism and legal challenges over its environmental impact and historical stance on climate change. Following the Exxon Valdez oil spill, the company paid billions in cleanup costs and damages. It has been frequently cited for pollution and gas flaring in the Niger Delta. Internally, documents revealed that scientists warned executives about potential global warming from carbon dioxide emissions as early as the 1970s, while the company publicly emphasized uncertainty. Multiple attorneys general, including those from New York and Massachusetts, have sued the company for allegedly misleading investors and the public. In 2021, an activist hedge fund, Engine No. 1, successfully won three seats on the board of directors to push for a stronger climate change strategy. The company is also a defendant in numerous climate liability lawsuits filed by municipalities like Baltimore and Honolulu.

Financial performance

As a Dow Jones Industrial Average component, ExxonMobil is a blue-chip stock and has paid a dividend for over a century, often increasing it annually. Its revenue and earnings are heavily influenced by commodity prices for crude oil and natural gas. After reporting a historic US$22.4 billion loss in 2020 during the COVID-19 pandemic, it rebounded strongly, posting a US$55.7 billion profit in 2022, bolstered by high energy prices following the 2022 Russian invasion of Ukraine. In 2023, it announced the acquisition of Pioneer Natural Resources for about US$60 billion, significantly expanding its footprint in the Permian Basin. The company's market capitalization regularly places it among the top-valued firms on the New York Stock Exchange.

Corporate governance

The company is led by a board of directors elected by shareholders, with Darren Woods serving as both Chairman and Chief Executive Officer. Its corporate headquarters is located in Spring, Texas, a master-planned community within the Houston metropolitan area. Major institutional shareholders include The Vanguard Group, BlackRock, and State Street Corporation. Governance has been a focus following the campaign by Engine No. 1, which led to the appointment of directors with expertise in energy transition and clean energy. The company faces ongoing shareholder proposals related to its climate lobbying and plans for reducing greenhouse gas emissions from its operations.