Tuesday, February 1, 2011

Exxon Mobil (NYSE:XOM) Prepared for Short-, Long-Term Growth

Exxon Mobil (NYSE:XOM) has made some good moves, especially their move into natural gas via its acquisition of XTO Energy in 2010.

While their strong exposure to natural gas will weigh on the company for some time, the high price of oil is helping them overcome its exposure at this time.

In general, Exxon has the best of both worlds, as they're set for the short-term with oil, which will continue in high demand, and for the future which they believe will increasingly be dominated by natural gas.

Low prices of natural gas, as mentioned, has and does weigh on Exxon, but their strong performance in the last quarter because of high oil prices bodes well for them in their decision, as the oil prices not only help them to exceed earnings expectations, but also to limit the weakness related to natural gas.

In other words, they can continue to generate hefty profits while they those earnings subsidize their future natural gas play when prices inevitably rise.

For investors, it doesn't get much better than that for the type of safety that comes with Exxon.

Exxon Mobil said fourth-quarter profits surged 53%, the latest of its big oil competitors to report a big gain in earnings.

Exxon Mobil said earnings came to $9.25 billion, or $1.85 a share, compared to $6.05 billion, or $1.27 per share, in the same quarter last year. Revenue increased to $105.2 billion, compared to $89.8 billion in the same quarter last year.

Exxon closed Monday at $80.68, gaining $1.69, or 2.14 percent.

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