Exxon Mobil: Future FCFs Justify The Bullish Case

Aug. 03, 2021 3:22 PM ETExxon Mobil Corporation (XOM)14 Comments


  • Exxon Mobil Corporation, which was incorporated in 1882, is one of the largest oil and gas conglomerates in the United States and the entire world.
  • According to Barclays, global energy demand will rise by 20% by 2040, and gas and oil will continue to be some of the largest sources of energy.
  • The company expects to maintain a stable debt/capital ratio until 2025. Exxon Mobil expects to have the capacity to make acquisitions, make accretive investments, and borrow at good rates.
  • With XOM’s analysts’ estimates and a WACC of 8.5%, I obtained an implied share price of $37-$71, which mostly depends on the company’s long-term growth.
  • Under my optimistic case scenario, if the company’s FCF reaches $10-$21 billion from 2021 to 2025, the stock price will most likely touch $85.
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Exxon Mobil Corporation (NYSE:XOM) is under the radar of many investors because of the popularity of alternative energy sources. In my opinion, the global oil demand will continue to grow in the future. Under my optimistic case scenario, which includes FCF of $10-$21 billion, the

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I am an M&A investment advisor with 10+ years of experience. I used to work for a big institution. I like M&A deals, value investing, and emerging markets. If you see an error please contact: wangluxem@financier.comQuingshan Capital Management provides articles for informational purposes only. I only give my opinion. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on my articles constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments.

Disclosure: I/we have a beneficial long position in the shares of XOM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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