How Risky Is ExxonMobil Corporation?
Oil prices peaked at over $100 a barrel in mid-2014 and then fell sharply to around $30 a barrel in January of 2016. Although prices have rebounded since that low, they remain range bound at about half the previous highs. ExxonMobil Corporation (NYSE: XOM) has rolled with the punches, though, continuing to reward shareholders with annual dividend hikes. That's a testament to its conservative culture and diversified business. If volatile energy prices have you wondering how risky ExxonMobil is, well, here are some key facts you'll want to know.
Exxon is an integrated energy company. That means it has operations across the industry, including drilling, refining, and chemicals. This is notable because oil prices affect each of these business differently. Specifically, downstream businesses like refining and chemicals can actually benefit from lower input costs (essentially falling oil prices).
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Source: Fool.com