Case Study Component 4

Please see attachments

Running head: EXXON MOBILE 1

EXXON MOBILE 5

Exxon Mobile Corporation

Professor:

November 29, 2017

This paper presents the financial analysis of Exxon Mobile Corporation through application of two steps of the nine-step assessment process. Exxon Mobile Corporation deals in oil and gas production and is located in Irving, Texas. It was founded in 1999 and is now a publicly traded company. Its current CEO and Chairman is Darren Woods. The company’s products and businesses include crude oil, petrochemicals, natural gas, oil products and power negation. The two processes entail: a) Analysis of Fundamentals: Goals, Strategy, Market, Competitive Technology, Regulatory, and Operating Characteristics and, b) Analysis of Fundamentals: Revenue Outlook

Analysis of Fundamentals

Goals: The Company aims at being the premier petroleum and petro chemical company in the world through its proactive financial and operating activities (Exxon Mobile Corporation, 2017). The second goal is to foster clean business practices to promote a conducive environment. Thirdly, the company aims to equip its employees with technical and leadership skills to enhance their competitive value (Exxon Mobile Corporation, 2017).

Strategy: The long-term strategy is build up on its upstream business to outdo its competitors during boom seasons. The other strategy is to regenerate its reserves to ensure constant flow of supply especially during scarcity

Competitive technology: One of the goals of the company is to invest in high-impact technologies, which will enhance their operations. The company has invested in large-scale oil technologies, which aim at fostering clean environment. For instance, it has a 3-D seismic imaging, which is useful in imaging of geological formations. Others include controlled free zone technology, deep-water technology, hydraulic fracturing technology, and full wave file inversion (Exxon Mobile, 2017).

Regulatory: The Company is guided by a wide variety of regulations that govern chemical production. The company’s code of ethics and business conduct offers guidelines on best practices among the directors, employees and shareholders. The company has appointed a Board Affairs Committee, which is in charge of reviewing any issues under the code (Exxon Mobile Corporation, 2017). The code entails several policies including, ethics policy, conflicts of interest’s policy, corporate assets policy and, directorships policy (Exxon Mobile Corporation, 2017).

Operating characteristics: The Company has established an OIMS system, which integrates five characteristics: scope and objectives, processes and procedures, responsible and accountable resources, verification and measurement, feedback and improvement mechanisms and evaluation (Exxon Mobile Corporation, 2017).

Analysis of Fundamentals: Revenue Outlook

The company’s business model in terms of meeting the fluctuating demand and supply of oil and its products promises future stability and growth in sales and profits. The company is in the fourth position of the fortune 500 list in the current year due to its long-term great performance. Currently, the company has a 2040 energy outlook that looks into sustaining supply of energy through integration of technology, transportation systems and power generation ( Exxon Mobile Corporation, 2017).The company has produced $ 69.3 billion in sales and an earnings per share of $ 0.93 in the current quarter (CNN Money, 2017). “However, persistently low oil prices and weaker profit margins in Exxon’s refining business weighed on earnings for the full year” (DiChristopher, 2017, par. 3).

References

CNN Money. (2017). Exxon Mobile Corp. Retrieved from

http://www.money.cnn.com/quote/forecast/forecast.html?symb=xom

DiChristopher, T. (2017). Exxon Mobile profit and revenue rise as the oil giant takes $ 2 billion impairment. Retrieved from

https://www.cnbc.com/2017/01/13/exxon-mobile-reports-earnings.html

Running Head: CASE STUDY COMPONENT 2 1

NINE-STEP ASSESSMENT PROCESS 2

Case Study Component 2

Professor:

December 13, 2017

In this paper we will talk about the investment the company has done to support its Business Unit Strategies. Then there is the company palling to its future profit, and how it has prepared itself for the competitive world of business.

As a company, which is successful it is the one who innovates by itself, the company has to invest in order secure its long-term goals. The Exxon Mobile being in top ten and number ten as the largest company revenues, it has secured it market which is the most important thing to support the business unit strategy. Comment by Simone: Good observation

The Exxon Mobile has come up with a way in which it will put its market up and even fly over its competitors; it has to come up with a way in which it will reduce its costs. But still, its revenue to be increasing, the company need to keep the low price in a long-term and not like an offer. This has led the company getting ways from its XTO shale unit, and invested in through exploration and development of assets; this will have to work in a fair way but quickly hence supporting the company extremes. The XTO has been giving leash which is long enough, which is from 2010 when it was acquired, but now the most important thing is that the Exxon’s had an acquisition of $6 billion in the drilling rights this year on February. This has made the XTO accelerating, and even its contribution to company performance has a gown. (Bourgeault, 2017). Comment by Simone: Good observation

Exxon is trying to adapt to the U.S, shale, which is rapidly changing in the circumstances. Hence it has tried to finding low-cost growth; the company will have an onshore oil production which is much of different than the offshore oil. The company had planned on spending $22 billion in the year 2017 capital expenditure, which is more of 16% of the previous year. The company investing in five projects, which will work as a startup in the year 2017 and 2018, will work at the production of 340,000 BOE/D which is barrels of oil equivalent per day. It has the recent discovery at the Guyana, which will start its production by 2020. The $20 billion will be an investment at the US Gulf Coast region a project until 2020. This will enable the company in production and supply of crude oil and natural gas, domestically, at a low-cost in it manufacture hence tapping the international market (Caroll, 2017). Comment by Simone: Name the projects that the $22 billion will be invested in Comment by Simone: Do you mean in Guyana, the country? Comment by Simone: I thought you said $22 billion for 5 projects?

As for now, the company has reported an increase of 3rd quarter in 2017 which is by 12.76% year on year. The company has previously shown the bad result as compared to its competitors. The company has invested in its future profitability in which it will be able to manufacture its products at a lower price, which will enable the company harvesting high profits compared to its competitor. The exploration of the company to drill oil will have its boom profit for six years. The project which will be entrusted to XTO’s shale project in 2017, as it will be seen rising to 50 percent in 2018. This project will also be an advantage to the Exxon’s shale output which may rich to about 20 percent by 2025 (DiChristoper, 2017). Comment by Simone: This is vague. Name the projects and the revenue expected from these projects. Describe how these ventures are profitable.

It is seen that Exxon, which is the largest oil trading company in the world, has secured its future and its strategy by investing. It has and will boost in its exploration and production and also the refining business which will see the company producing more oil, and gaining more profit and lowering the price which will interact more customers. Just form the example of the last year, its exploration leads to an increase of $947 million to $1.6 billion, after exploring fossil fuel. It also showed a competitive future by gaining 2percent in comparison to last year. Comment by Simone: Increase in revenue? What has increased?

References
Bourgeault, G. (2017). Exxon Mobil Releases Its XTO Shale Unit To Operate Like A Start-Up. Seeking Alpha. Retrieved from https://seekingalpha.com/article/4064324-exxon-mobil-releases-xto-shale-unit-operate-like-start
Caroll, J. (2017). Why Exxon Is Giving Its Shale Unit a Long Leash. Bloomberg Businessweek.
DiChristopher, T. (2017). Exxon Mobil beats expectations for profits and revenue, even as Harvey takes a bite out of earnings. CNBC. Retrieved from https://www.cnbc.com/2017/10/27/exxon-mobile-earnings-93-cents-a-share-vs-expected-eps-of-86-cents.html

Running head: CASE STUDY COMPONENT 3
1

CASE STUDY COMPONENT 3

4

Case Study Component 3

Professor:

January 10, 2018

Analysis of Exxon’s Future Financial Needs and Access

Exxon Mobil Corporation is one of the largest publicly held corporations engaged in energy business when measured by revenue. It is engaged in a range of operations including exploration, production, transport, sale of oil and natural gas. It manufactures transports and sells petroleum products. The following paper focuses on Exxon’s future external financing needs and ease of access to target sources of external finance.

Exxon’s Future External Financing Needs

One of the key outputs involved in the forecasting process relates to the identification of the number of funds a firm needs to obtain to finance its future external needs. The amount is commonly referred to as the External financing Need.
The approach is necessary when a company has garnered excess capacity in the fixed assets. According to Stice, Stice & Stice, (2017), external financing refers to a type of business funding companies acquire from external sources as the name suggests. Exxon Mobil Corporation identified three external financing needs highlighted as follows.

Firstly, Exxon intends to preserve its resources; it wants to maximize its excess capacity and use internal financial resources for other purposes. In line with, it makes sense to preserve resources and put funds in the external financing for business operations. Secondly, the firm wants to use the external financing to finance growth projects which it cannot fund on its own. According to Stice, Stice & Stice, (2017), such a move is necessary especially when a company has expanded to the point that it needs additional operating space to meet market demands. Lastly, the company has developed an outlook for energy given the demand and supply through 2040. This way, it would ensure that the world can access affordable and reliable energy demand and supplies
.

Exxon’s Access to Target Sources of External Finance

In order to fulfill its future external financing needs outlined above, Exxon targets to secure funds from external financing sources which require a return on investment. After establishing external financing needs and the benefits associated with, it is now appropriate to set out available external sources of acquiring finance. Exxon can turn to venture capital
. It is a popular method of equity financing in which undertaking entrepreneurs discover firms with growing potential. They offer to invest in exchange for a substantial share of ownership since they have access to funds and expertise companies like Exxon require in order fulfilling their full potential Müllner & Puck, (2018). For example, since venture capitalists offer both capital and expertise, they bring their industry experts who can help Exxon meet its future external financing needs.

Apart from seeking venture capital, Exxon has access to external financing by considering bond issues instead of going for bank loans. Since the company pursues industrial developments, it is prudent to focus on the Industrial Development Revenue Bond. According to Müllner & Puck, (2018), the program works with governments (especially local governments) which help to finance industrial projects like Exxon’s outlook for affordable and reliable demand and supplies through to 2040. When it manages to get approval, it is allowed to issue bonds to private investors, and in return, it obtains enough finances to meet its financing needs
. In brief, these two external finance sources match correctly with the company’s future external financing needs.

References

Müllner, J., & Puck, J. (2018). Towards a holistic framework of MNE–state bargaining: A formal model and case-based analysis. Journal of World Business, 53(1), 15-26.

Stice, D., Stice, E. K., & Stice, J. D. (2017). Cash Flow Problems Can Kill Profitable Companies.

�This can be calculated using this formula: External Financing Needed (EFN) = Change in Assets – Change in Current Liabilities – Retained Earnings

�You first have to calculate if the funding is needed.

�I hardly think they would seek out venture capitalist when they can sell preferred stock, rights issue, financial lease, commercial paper etc.

�Great

�Great. You need some more references

Throughout this course you have been preparing separate components of a comprehensive 2,500-word financial analysis (excluding tables, figures, and addenda) of a chosen company following the nine-step assessment process detailed in Assessing a Company’s Future Financial Health.

There are three parts to the final component assignment of the case study.

Part One (Case Study Component 4)

Apply the final three steps of the nine-step assessment process to develop a 750-word analysis of your chosen company:

1. Viability of the 3-5 Year Plan

2. Stress Test Under Scenarios of Adversity

3. Current Financing Plan

Part Two

Access the three prior component assignments, with instructor feedback incorporated, that you submitted in Topics 2, 4, and 6 see attachments. Integrate these three assignments into the final case study submission along with the Component 4 assignment in this topic to provide a comprehensive analysis inclusive of all nine steps that flows from start to finish.

Part Three

Assume that you will be presenting your analysis to a group of senior management at your place of employment that urgently needs to know this information to make a major financial decision for your company. In 250 words, develop an introduction to your analysis that can serve as an overview. Consider factors that might impede their ability to focus on the information you are presenting. For example, some of your audience may be pressed for time, another may have a crisis in their work team that needs to be attended to quickly, and others may simply not be paying attention. You have one chance to impress them; keep your overview focused, succinct, and informative. Present only key and other potentially relevant points this group needs to know.

Prepare this assignment according to the guidelines found in the APA Style Guide,. An abstract is not required.

This assignment uses a rubric below. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

20.0 %Organization and Effectiveness

 

20.0 %Organization and Effectiveness

 

 

 

1 Unsatisfactory 0.00%	2 Less than Satisfactory 65.00%	3 Satisfactory 75.00%	4 Good 85.00%
70.0 % Content	5 Great 100%
40.0 % Incorporation of the Required Set of Elements in the Nine-Step Assessment Process for the Case Study Component	The required set of elements is not present.	The required set of elements is incorporated, but the information provided is incomplete, inaccurate, or otherwise deficient.	The required set of elements is incorporated, but minimal detail or support is provided for one or more components.	The required set of elements is present, and is incorporated in full. The submission encompasses essential details and provides appropriate support.	The required set of elements is present and comprehensive. The submission further incorporates analysis of supporting evidence insightfully and provides specific examples with relevance. Level of detail is appropriate.
10.0 % Integration of Prior Case Study Components with Incorporation of Feedback	Integration of prior case study components with incorporation of feedback is not present.	Integration of prior case study components with incorporation of feedback is present, but the information provided is incomplete, inaccurate, or otherwise deficient.	Integration of prior case study components with incorporation of feedback is present, but minimal detail or support is provided for one or more components.	Integration of prior case study components with incorporation of feedback is present in full. The submission encompasses adequate details level of support.	Integration of prior case study components with incorporation of feedback is present and comprehensive. The submission encompasses essential details. Level of detail is appropriate.
20.0 % Case Study Analysis Introduction for Senior Management	The case study analysis introduction for senior management is not present.	The case study analysis introduction for senior management is present, but the information provided is incomplete, inaccurate, or otherwise deficient.	The case study analysis introduction for senior management is present, but minimal detail or support is provided for one or more components.	The case study analysis introduction for senior management is present, and is incorporated in full. The submission encompasses essential details and provides appropriate support.	The case study analysis introduction for senior management is present and comprehensive. The submission further incorporates analysis of supporting evidence insightfully and provides specific examples with relevance. Level of detail is appropriate.
		20.0 %Organization and Effectiveness
7.0 % Thesis Development and Purpose	Paper lacks any discernible overall purpose or organizing claim.	Thesis and/or main claim are insufficiently developed and/or vague; purpose is not clear.	Thesis and/or main claim are apparent and appropriate to purpose.	Thesis and/or main claim are clear and forecast the development of the paper. It is descriptive and reflective of the arguments and appropriate to the purpose.	Thesis and/or main claim are comprehensive. The essence of the paper is contained within the thesis. Thesis statement makes the purpose of the paper clear.
8.0 % Argument Logic and Construction	Statement of purpose is not justified by the conclusion. The conclusion does not support the claim made. Argument is incoherent and uses non-credible sources.	Sufficient justification of claims is lacking. Argument lacks consistent unity. There are obvious flaws in the logic. Some sources have questionable credibility.	Argument is orderly, but may have a few inconsistencies. The argument presents minimal justification of claims. Argument logically, but not thoroughly, supports the purpose. Sources used are credible. Introduction and conclusion bracket the thesis.	Argument shows logical progression. Techniques of argumentation are evident. There is a smooth progression of claims from introduction to conclusion. Most sources are authoritative.	Clear and convincing argument presents a persuasive claim in a distinctive and compelling manner. All sources are authoritative.
5.0 % Mechanics of Writing (includes spelling, punctuation, grammar, language use)	Surface errors are pervasive enough that they impede communication of meaning. Inappropriate word choice and/or sentence construction are used.	Frequent and repetitive mechanical errors distract the reader. Inconsistencies in language choice (register), sentence structure, and/or word choice are present.	Some mechanical errors or typos are present, but are not overly distracting to the reader. Correct sentence structure and audience-appropriate language are used.	Prose is largely free of mechanical errors, although a few may be present. A variety of sentence structures and effective figures of speech are used.	Writer is clearly in command of standard, written, academic English.
10.0 %Format
5.0 % Paper Format (Use of appropriate style for the major and assignment)	Template is not used appropriately, or documentation format is rarely followed correctly.	Appropriate template is used, but some elements are missing or mistaken. A lack of control with formatting is apparent.	Appropriate template is used. Formatting is correct, although some minor errors may be present.	Appropriate template is fully used. There are virtually no errors in formatting style.	All format elements are correct.
5.0 % Documentation of Sources (citations, footnotes, references, bibliography, etc., as appropriate to assignment and style)	Sources are not documented.	Documentation of sources is inconsistent or incorrect, as appropriate to assignment and style, with numerous formatting errors.	Sources are documented, as appropriate to assignment and style, although some formatting errors may be present.	Sources are documented, as appropriate to assignment and style, and format is mostly correct.	Sources are completely and correctly documented, as appropriate to assignment and style, and format is free of error.
100 % Total Weightage