U.S. oil and gas giant
) announced that its chief executive officer (CEO) Rex W.
Tillerson received compensation worth $28.1 million in 2013,
which marks a 3% hike from $27.2 million in 2012. Most of Rex W.
Tillerson's compensation was in the form of stock awards.
Tillerson received a salary of $2.7 million, reflecting a 6%
increase from the year ago, plus a cash bonus of nearly $3.7
million, which was down 20% because Exxon's earnings fell from
2012. The value of Tillerson's stock awards increased $1.6
million, or 8% from 2012, because of a rise in the company's
share price. He received other compensation valued at $496,704.
The biggest items in that miscellaneous category were $190,190 in
matching contributions to a retirement plan and $177,140 for
Exxon earned $32.6 billion in 2013, a decrease of 27% from
2012, which was the company's second-best year ever, courtesy of
ExxonMobil is the world's best run integrated oil company
given its track record of superior return on capital employed.
The company is in excellent financial health. Free cash flow
generation remains strong and investors seeking a defensive name
with continued dividend growth have long considered the company
has a core holding.
ExxonMobil is fairly active in its investment program. The
company plans to spend about $185 billion over the next five
years. The capex covers as many as 21 important oil and gas
projects currently under the anvil that are estimated to
accumulate over 1 million net oil-equivalent barrels per day by
ExxonMobil is also engaged in a large liquefied natural gas
project in Papua New Guinea. It will further unearth more oil
from the development of Hebron oil field, offshore the Canadian
province of Newfoundland and Labrador. The development will help
in recovering over 700 million barrels of oil and the platform is
expected to yield its first oil toward the end of 2017.
However, we remain skeptical due to the company's continued
disappointing production trend. We see ExxonMobil struggling to
consistently grow production volumes, which have been steadily
decreasing in the past year.
ExxonMobil carries a Zacks Rank#3 (Hold). Some better-ranked
stocks in the oil and gas industry worth considering include
EnLink Midstream Holdings, LP
Exterran Holdings, Inc.
Range Resources Corporation
). All these stocks sport a Zacks Rank #1 (Strong Buy).
ENLINK MIDS LLC (ENLC): Free Stock Analysis
EXTERRAN HLDGS (EXH): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
To read this article on Zacks.com click here.