Despite Making History, ExxonMobil Underwhelms. Time to Sell the Energy Stock?
ExxonMobil (NYSE: XOM) delivered record-smashing results last year. The oil giant's $59.1 billion of adjusted earnings were $36.1 billion more than the prior year. That set a record for Exxon. It was also the highest tally in the history of the Western oil industry.
Despite that impressive feat, Exxon's fourth-quarter results were a bit underwhelming because revenue came in below analysts' expectations due to lower oil and gas prices. The company also didn't follow rival Chevron's (NYSE: CVX) lead by unveiling a significant boost to its share repurchase program. These disappointments likely have some investors wondering whether it's time to bail on the energy stock.
Exxon's long-term investment strategy paid big dividends last year. Unlike many others in the oil industry, Exxon continued investing in its business during the pandemic-driven downturn of 2020, "lean[ing] in when others leaned out," as CEO Darren Woods stated in the earnings report. That positioned the oil giant to capitalize on the recovery over the past couple of years. Production from Guyana and the U.S. Permian Basin rose by more than 30% in 2022. Meanwhile, Exxon's refining business delivered its best performance ever in North America, while its global operations achieved their highest level since 2012.
Source Fool.com
