Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.
Top Wall Street analysts expect Exxon to remain a key beneficiary in this higher oil price environment, and most remain strongly positive about the company’s sharp positive inflection in capital allocation strategy, upstream portfolio, and leverage to a further demand recovery, with Exxon Mobil offering greater downstream/chemicals exposure relative to peers.
The top U.S. oil producer reported fourth-quarter 2022 earnings of $12.8 billion, or $3.09 per share, as well as full-year earnings of $55.7 billion, or $13.26 per share. In addition, Exxon Mobil announced that it will be increasing its dividend by 3.4% from last year’s comparable payment on March 10 to $0.91 a share.
After the increase, the yield will be 3.26%, and the dividend will continue to be defended. The Truist Financial price target of $151 is well above the $125.85 consensus target. And Exxon Mobil stock closed trading on Tuesday at $114.92.
Shell
This European energy giant offers investors size and strength. Shell PLC (NYSE: SHEL) operates as an energy and petrochemical company in Europe, Asia, Africa, the Americas and elsewhere.
Shell explores for and extracts crude oil, natural gas and NGLs. It markets and transports oil and gas, produces gas-to-liquids fuels and other products, and operates upstream and midstream infrastructure necessary to deliver gas to market. The company also markets and trades natural gas, LNG, crude oil, electricity and carbon-emission rights, and it markets and sells LNG as a fuel for heavy-duty vehicles and marine vessels.
In addition, the company trades in and refines crude oil and other feed stocks, such low-carbon fuels, lubricants, bitumen, sulfur, gasoline, diesel, heating oil, aviation fuel and marine fuel. It produces and sells petrochemicals for industrial use, and it manages oil sands activities. Further, the company produces base chemicals, comprising ethylene, propylene and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide and ethylene glycol.
Furthermore, it generates electricity through wind and solar resources, produces and sells hydrogen and provides electric vehicle charging services, as well as electricity storage.
Shell delivered a record $40 billion profit in 2022. The European giant also posted a record fourth-quarter profit of $9.8 billion, after a strong recovery in earnings from LNG trading, beating analyst forecasts for an $8.0 billion profit. The company also increased its dividend by a strong 15%.
Shareholders will receive a 3.98% dividend, with the increase. Shell stock has a $74 target price at BofA Securities. The consensus target is $69.38, and Tuesday’s $59.61 close was up over 3% for the day.
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