Balls and Strikes: YouTuber Recommends Exxon Mobil(XOM) for 2023
The creator of the ClearValue Tax YouTube channel discusses Exxon Mobil (ticker symbol XOM) as one of their top stock market picks for 2023 in this video. They address common questions and concerns about the stock, such as whether clean tech and green energy will replace oil and why they like Exxon specifically.
The creator advocates for a “buy low, sell high” strategy and argues that oil will continue to be a necessary part of human civilization due to growing energy demands from a growing population. They also mention that the stock has gone up 214% in the past three years.
XOM Released its 2023 Corporate Plan:
ExxonMobil has unveiled its business plan for the next five years, which calls for significantly more funding for projects that reduce emissions. The plan keeps yearly capital spending between $20 and $25 billion while increasing investments in lower-emission technologies to about $17 billion.
In the Upstream and Product Solutions sectors, this strategy gives high-return, low-cost assets the first priority and supports initiatives to lower the intensity of greenhouse gas emissions from both owned and sourced assets. The strategy supports the company’s strategic pillars of safety, shareholder returns, profits and cash flow growth, cost and capital efficiency, and emissions reductions. It is anticipated to quadruple earnings and cash flow potential by 2027 as compared to 2019.
The business also recently upped its annual dividend payout for the 40th year in a row and announced an expansion of its $30 billion share-repurchase program, which is now up to $50 billion through 2024.
Latest Earnings Release Summary:
The results of ExxonMobil’s third-quarter earnings for 2022 have been announced, and they reveal an increase in both earnings and cash flow to a total of $19.7 billion and $24.4 billion, respectively. Strong volume performance, including record refining volumes, rigorous cost control, and higher natural gas realizations were attributed to the company’s strong results. These factors more than compensated for lower crude realizations and weaker industry refining margins, which contributed to the company’s strong results.
The company also achieved a record-breaking quarterly refining throughput in North America and globally since 2008, as well as strong oil and gas production, including a record Permian production of nearly 560,000 oil-equivalent barrels per day. Since 2008, the company has also achieved strong oil and gas production.
Additionally, ExxonMobil inked a commercial agreement to sequester and store permanently up to 2 million metric tons of CO2 emissions annually. In addition, the corporation announced that it will be increasing its dividend for the last quarter of the year to $0.91 per share, an increase of $0.03 per share, and will pay out a total of $15 billion for the year.
We will check back in throughout the year to check this stock suggestion.