Here's Why ExxonMobil Is a No-Brainer Energy Stock
ExxonMobil (NYSE: XOM) is not the perfect energy stock for every investor. But if you have a conservative bias, this consistent dividend payer should be high up on your list in the energy sector. Here's why now, with oil prices at fairly attractive levels, is a good time to consider this integrated giant over some other energy options.
Exxon is what's known as an integrated energy major. That means it has exposure to the entire energy chain from the upstream (where it drills for energy), through the midstream (the pipelines and other infrastructure that moves energy around the world), and all the way to the downstream chemicals and refining arena. It's also globally diversified.
This balance of businesses doesn't exactly protect Exxon from the cyclical energy industry's often dramatic price swings. But it does help to soften the blow when energy prices are trending lower as the downstream uses oil and natural gas as inputs. So low prices are usually a net benefit to profitability in the segment even as the upstream area is seeing less revenue.
Source Fool.com
