1 Green Flag for ExxonMobil in 2022, and 1 Red Flag
ExxonMobil (NYSE: XOM) is probably the most widely recognized energy company in the U.S. That's both a good thing and a bad thing as this bellwether tries to navigate an industry that is known for its volatility and dirty image. Halfway through 2022, it is pretty clear that there's a big tailwind here. But it is equally obvious that there's also a lingering problem that management is trying to deal with. Here's what you need to know.
Oil and natural gas prices are notoriously volatile and prone to swift and dramatic swings. In 2020, which was just two years ago, the price of West Texas Intermediate crude actually fell below zero for a brief moment. That was during the coronavirus pandemic and there were other technical factors involved, but it was a dramatic and historic event. And yet, in mid-2022, oil is trading around $100 per barrel.
Although that could clearly change (see: the recent one-day oil price drop of nearly 10%), right now relatively high prices are a huge benefit for Exxon. To put some numbers on that, the company lost $0.33 per share in 2020. As oil prices rebounded it earned $5.38 per share in 2021. In the first quarter of 2022, meanwhile, the company posted adjusted earnings of $2.07 per share, up from $0.65 in the same period of 2021.
Source Fool.com
