Exxon's Earnings Stink, But Its Execution Rocks

Oil prices are in the dumps thanks to an ugly mix of world events, and the situation is likely to take a long time to resolve. ExxonMobil's (NYSE: XOM) earnings were already under pressure, and now that the oil downturn has deepened the numbers are only going to look that much worse.

That's why investors with a long-term view should focus on the things that Exxon can control. And on that front it's doing quite well.

If you listen to an energy industry CEO talk, they are likely to discuss long-term supply and demand fundamentals. Yes, current energy prices are important, but the heads of these companies know that they operate in a highly cyclical industry in which prices can move rapidly and often dramatically. In fact, the heads of Exxon, Chevron, and Royal Dutch Shell have all highlighted that a growing population will lead to increasing long-term demand for all energy sources. Thus, oil, and increasingly natural gas, will be vital. That's why the near-term ups and downs in the industry are less important than the long-term fundamentals that underpin demand. 

Continue reading

Source Fool.com