Fully realizing that the Q2 quarter tends to be cyclically profitable for its refinery business (ramping up output into the US driving season),
let’s ballpark Exxon’s profits for 2022 at $80B, and that number would certainly grow as oil is almost certainly would grow up, given supply tightness and the funfolind reopening of China.
How does that profit of $80B compare vs. the $360B market capitalization of XOM?
Wait, 4.5x earnings which are still not even close to being at the peak?
Huge ability to buyback shares, grow dividend, and buy rivals?
This simplistic “analysis” implies that the stock price of XOM could easily go up 3-4x just on the multiple expansion.
BTW Exxon Mobil is still one of the best US companies – extremely well managed.