Reply To: Exxon Mobil Joins Shell and Chevron with Record Quarterly Profits


Exxon Mobil (NYSE:XOM) reiterated as a Buy with a $112 price target at Goldman Sachs on Thursday after the bank hosted investor meetings with Chairman/CEO Darren Woods and other senior management.

Analyst Neil Mehta said Goldman continues to believe Exxon (XOM) offers differentiated upstream projects led by Guyana and the Permian Basin, a unique business transformation that drives the company’s free cash flow breakeven lower, and improving returns on capital employed.

Goldman noted Exxon’s (XOM) increasingly important role in energy transition and low-carbon emissions projects, seeing “biofuels, hydrogen and CCS as areas of focus where they have differentiated capabilities… Its refineries over time can be repurposed for biofuels production, chemicals/lubricants production, or plastic recycling.”

Exxon (XOM) management noted margins in the Chemicals unit have dropped closer to the low end of the 10-year average, but U.S. exposure and the ethane advantage in that market still positions the company well on a relative basis.