Thursday, July 30, 2009

ExxonMobil Which Way Now?

ExxonMobil(XOM) announced results. Everyone knows the price of oil is down and therefore results are down dramatically. ExxonMobil gives the impression of a monolithic impermeable. But if you read the earnings release carefully you get the impression of a one armed paper hanger working overtime. For Q2 they report earnings of $4.1 Billion, cash flow of $3 Billion, share repurchase of $5 Billion which is only 1.5% of outstanding shares (pour quoi?) and in the first half they have increased the dividend by 9%.

Too many competing themes in the financial mix. Does the Board really know which way the boat is heading.