Portfolio Review: ExxonMobil

Updated

Over the next couple of weeks John and David will be reviewing their real-money, 10-Bagger Portfolio. In this video, they take a closer look at ExxonMobil.

Despite some near-term challenges, ExxonMobil remains one of the best-managed energy companies in the world, and it's committed to returning capital to shareholders. Its latest quarterly results were surprisingly weak operationally. But the company has a diverse portfolio of global investments that will power earnings, and cash flow over the long term. Domestic natural gas continues to be a weakness, as prices remain low. Producers like Chesapeake Energy and Exco Resources are still feeling the stress. Competitor Devon Energy has made a big shift from gas to liquids as a result. What ExxonMobil has in its favor is that it's a diversified energy company. That's what helps the company generate so much cash flow that it can pay shareholders in the form of dividends and repurchases.

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The article Portfolio Review: ExxonMobil originally appeared on Fool.com.

David Meier has no positions in the stocks mentioned above. John Reeves has no positions in the stocks mentioned above. The Motley Fool owns shares of Devon Energy and ExxonMobil and has the following options: long JAN 2013 $16.00 calls on Chesapeake Energy, long JAN 2013 $25.00 calls on Chesapeake Energy, long JAN 2014 $20.00 calls on Chesapeake Energy, and long JAN 2014 $30.00 calls on Chesapeake Energy. Motley Fool newsletter services recommend Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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