Exxon Mobil (NYSE:XOM) is the world's largest independent oil and gas exploration and production company. The gargantuan size of the company comprises of a mix of its own extensive operations spread across the world, along with its equity investments in various global affiliates. Below we take a brief look at Exxon's equity investments and their value to the company's stock. The company competes with other industry giants like BP ( BP ), Chesapeake ( CHK ), Anadarko ( APC ), ConocoPhillips ( COP ) and Chevron ( CVX ).
We currently maintain a $92.44 price estimate for Exxon Mobil , implying a premium to market price.
Exxon's Equity Affiliates Contribute a Fifth of its Total Revenues…
Exxon discloses in its annual report that its equity investments span companies engaged in crude production, natural gas marketing and refining operations in North America, natural gas operations in Europe, crude production in Kazakhstan and liquefied natural gas (LNG) operations in Qatar.
Equity affiliates have generated about 20% of Exxon's total revenues over the past 3 years. Also, Exxon's equity affiliates held 6,708 million barrels of proven and developed oil and gas from the company's total of 17,116 million barrels at the end of 2010, more than one-third share of the company's oil & gas resources.
… and More than 13% of its Stock Value
Our analysis of Exxon shows that its equity affiliates contribute more than 13% to the company's stock value, which we peg at $92.44 .
We expect the income to Exxon from the equity affiliates to continue to grow over the years at a steady rate.