Totemtalk's Guide for Company Research - Exxon Mobil Corporation

Totemtalk’s Guide for Company Research – Exxon Mobil Corporation

Company Research – Exxon Mobil Corporation

Having a business in line with oil and gas is my biggest dream  because we all know that one of the major thing used in a car or any vehicle is the oil (I know the car is more important but it’s excluded for now). So I’m kinda excited to know more about Exxon Mobil Corporation in this company research laid to us by Meriam, Janice and Karla of our Stories team.

Who started Exxon Mobil Corporation company and why?

As what I have in mind, how does this company emerge in its existence? Well should I say Meriam read my mind? Just kidding! She laid below a report that clear some clouds on my thoughts. Come on! Let’s see. 

Exxon Mobil Corporation was organized in the State of New Jersey in 1882. It was then formed in 1999 by the alliance of two major oil companies, Exxon and Mobil. Exxon and Mobil were both heirs of the John D. Rockefeller corporation, Standard Oil which was established on 1970.

Exxon Mobil Corporation

John Davidson Rockefeller was the founder of Standard Oil Company where it changes its name to Exxon Corporation on 1972. Mr. Rockefeller is an American industrialist and philanthropist who ruled the oil industry and was the first great U.S business trust.

Philanthropy or philanthropist means “the caring of man”. That is an interesting information for me! It is the effort or inclination to increase the well-being of humankind, as by charitable aid or donations. A philanthropist is an individual who seeks to promote the welfare of others, especially by the generous donation of money to good causes.

What is the background of the company? Its History and Development?

I’ll give the floor to Meriam and Janice in giving us the milestone of Exxon Mobil Corporation.

Exxon Mobil Corporation

Who’s up for additional? Well definitely I am. What more should I follow to know more about XOM?

    • On 1878, Standard controls $33 million of the country’s $35 million annual refining capacity
    • On 1888, Standard founds its first foreign affiliate, Anglo-American Oil Company, Limited
    • On 1890, The Sherman Antitrust Ac was passed, in large part, in response to Standard’s oil monopoly
    • On 1891, The trust has secured a quarter of the total oilfield production in the United States
    • On 1892, A lawsuit leads to dissolution of the trust
    • On 1906, The federal government files a suit against Jersey under the Sherman Antitrust Act
    • On 1911, The U.S. Supreme Court upholds a lower court conviction of the company
    • On 1931, The merger of Standard Oil Company of New York and Vacuum Oil Company
    • On 1946, A 30 percent interest in Arabian American Oil Company
    • On 1954, The company gains a 7 percent stake in an Iranian oil production consortium
    • On 1973, OPEC cuts off oil supplies to the United States
    • On 1980, Exxon’s revenues exceed $100 billion because of the rapid increase in oil prices
    • On 1984, Mobil acquires Superior Oil Company for $5.7 billion
    • On 1989, The crash of the Exxon Valdez in Prince William Sound off the port of Valdez, Alaska
    • On 1990, Exxon’s headquarters are moved from Rockefeller Center in New York City to Irving, Texas
    • On 2004, Rex Tillerson was appointed president of Exxon Mobil
    • On 2011, Cost savings from the merger were tallied at $4.6 billion
    • On 2011, Cosan SA Industria e Comercio bought the distribution assets of Exxon Mobil
    • On 2012, Apache Corporation acquired Exxon Mobil’s Mobil North Sea Limited assets including the Beryl field and related properties.

What is the nature of Exxon Mobil Corporation business?

I believed that knowing what the business is all about is the most important thing if you are a super rich who wants to invest. So, allow me to pretend to be a rich girl here (he he) and I really want to know Exxon Mobil Corporation’s nature of business. Let me share to you what I found out on Meriam’s report.

Exxon Mobil Corporation (XOM) is an American multinational oil and gas corporation with headquarters located in Irving Texas. It has a number of divisions and affiliates with names that include Exxon Mobil, Exxon, Esso or Mobil. The corporation is a producer and sells of commodity petrochemicals, including olefins, aromatics polyethylene and polypropylene plastics.

The company has been a leader in the energy industry since it started more than 100 years ago. Their main business is energy, involving exploration for, and production of, crude oil and natural gas and petroleum goods. It has also an interest in electrical power generation facilities.

Exxon Mobil Corporation is the world’s largest company by revenue and one of the largest publicly traded companies by market capitalization in the world.

Any compound obtained from petroleum or natural gas called “petrochemicals”. Ooops I guess I’m sleeping during the time my professor taught that. Good thing Meriam helped me out with my confusions. According to her, it has been broadened to include the whole range of aliphatic, aromatic, and naphthenic organic chemicals, as well as carbon black and such inorganic materials as sulfur and ammonia.

Who is running Exxon Mobil Corporation company and their background?

A business would not run effectively without someone or people behind it. Who would it be for Exxon?

Exxon Mobil Corporation is a manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a range of specialty products. The key executive officers responsible for the operations and growth of the business have been with the company for many years both have experiences in serving both domestic and international offices.

Mr. Rex W. Tillerson is the chairman and chief executive officer of Exxon Mobil Corporation since January 1, 2006. He joined the Exxon Company, US, in 1975 as an engineer. Since joining the company, he held a variety of management positions in domestic and foreign operations, including president, Exxon Yemen Inc., Esso Exploration and Production Khorat Inc.; vice president, Exxon Ventures (CIS) Inc.; president, Exxon Neftegas Limited; and executive vice president, ExxonMobil Development Company. In 2004, he became president and director of Exxon Mobil. Mr. Tillerson is a member of the executive committee and a former chairman of the American Petroleum Institute. He is also a trustee for the Center for Strategic and International Studies and the American Petroleum Institute, and a member of the Business Roundtable.

Mr. Tillerson earned a Bachelor of Science in Civil Engineering at the University of Texas at Austin. He was also recognized with the following awards, in 1965, he earned the rank of Eagle Scout, and in 2009 he was inducted into the Eagle Scout Hall of Fame of the Greater New York Councils, and was awarded the Silver Buffalo Award in 2010 and was appointed as the National President of the Boy Scouts of America in May 2010. Rex is a native of Wichita Falls, Texas, married and has four children. In 2012, he was called the most reckless man on the planet by author Bill McKibben for dismissing the climate crisis, an engineering problem.

Donald D. Humphreys is the principal financial officer and became senior vice president of Exxon Mobil Corporation on January 25, 2006. Upon joining the company, he serve several domestic and international positions includes senior financial advisor in the controller’s department in New York, financial reporting manager for Exxon Company International, Upstream Controller of Exxon Company, U.S.A. and financial director of the Exxon companies in Kuala Lumpur, Malaysia. Donald is a native of Tulsa, Oklahoma and served in the U.S. Army from 1972-1974.

Mr. Humphreys holds a Bachelor of Science in Industrial Engineering and Management from Oklahoma State University in 1971 and earned an MBA from the Wharton School of the University of Pennsylvania before joining Exxon Chemical Company in 1976. He serves as a Trustee of the Oklahoma State University Foundation and is a Life Member of the OSU Alumni Association. He also serves as a director on the boards of Texas Parks and Wildlife Foundation and Junior Achievement Worldwide., a member of Financial Executives International and the American Petroleum Institute, and Financial Accounting Standards Advisory Council. In 2007, Mr. Humphreys was named a Distinguished Alumnus of OSU and was inducted into the Spears School of Business Hall of Fame, College of Engineering, Architecture and Technology Hall of Fame in 2008, and in year 2010, he was inducted into the OSU Alumni Hall of Fame.

International Studies (IS) generally refers to the specific university degrees and courses which are concerned with the study of the major political, economic, social, cultural and sacral issues that dominate the international agenda. The term also defined as the contemporary and historical understanding of global societies, cultures, languages and systems of government and of the complex relationships between them that shape the world we live in. International studies also encompass all phenomena which are globally orientated.

Who is directing the company; How are the committees structured?

Did I mentioned that a company can’t stand without people behind to lead? It’s true isn’t it? But in addition, leader can’t make it without the help of subordinates to oversee each area. Now, the question is, who are they? 

Exxon Mobil Corporation is composed of audit, compensation, board affairs, finance, public issues and contributions and executive committee. The six committees are supervised by independent chairman. The chairman of the board of directors is Mr. Rex W. Tillerson, and he also serves as the chairman of executive and finance committee.

Michael J. Boskin, age 66, an independent director of XOM since 1996 and the current chairman of audit committee. He is a T.M. Friedman Professor of Economics and senior Fellow, Hoover Institution, Stanford University. Mr. Boskin is a research associate of National Bureau of Economic Research and chief executive officer and president of Boskin & Co., an economic consulting company. He also served as board of director for Shinsei Bank and Vodafone Group, and currently serves as director of Oracle.

William W. George, age 69, is a non-management director since 2005 and the chairman of compensation committee. At present, he is a professor of Management Practice, Harvard University and serves as director of Goldman Sachs. He served as chairman of Medtronic, chief executive officer, president and chief operating officer. He was a former director member of Novartis.

Kenneth C. Frazier, age 57, is an independent director since 2009 of XOM and present chairman of board affairs committee. Kenneth is a former chairman of the board, president and chief executive officer of Merck & Co., Inc. He held other executive positions at Merck including president, and chief executive officer. He was also elected as executive vice president, president and general counsel. Mr. Frazier is a current member director of Merck & Co., Inc.

Edward E. Whitacre, Jr, age 70, is a non-executive director and chairman of public issues and contributions committee. He was a former chairman of the board of General Motors. During his stay at General Motors, he seated as chairman then became chief executive officer later, and relinquished the roles in 2010. Whitacre also served as chairman emeritus of AT&T, Business Experience and was elected chairman and chief executive officer upon its merger with SBC Communications in 2005, and retired in 2007. During his stay at SBC, he served the following positions, chairman and chief executive officer, and president and chief operating officer. Mr. Whitacre served as board director of the following companies, namely, Anheuser Busch, AT&T, Burlington Northern Santa Fe and General Motors.

I’m watching a certain show on television wherein there is this attorney from the public attorney’s office. Not much about it but I just mentioned this since  Janice mentioned something about attorney. According to her,  a general counsel is the chief attorney of a legal department in a corporation or government department. The jobs of the general counsel lawyer are varied and depend on the employer. In a corporate setting, chief lawyer usually reports to the chief executive officer, while in government setting, they usually report directly to the head of the agency for which they work.

How do they make money?

Exxon Mobil Corporation is the world’s largest company by revenue and one of the largest publicly traded companies by market capitalization in the world. The company was ranked #1 globally in Forbes Global 2000 list in 2012.That’s a “Wow”.

The corporation generally sells crude oil, natural gas and petroleum and chemical products under short term agreements at prevailing market prices but in some cases products are sold under long-term agreements with periodic price adjustments. Revenue are driven from the three global operating divisions the company, these are, upstream, downstream and chemical division.

The upstream segment comprises of oil exploration, extraction, shipping, and wholesale operations, while downstream division is responsible in marketing, refining, and retail operations. The third is chemical segment which manufactures and sells petrochemicals and supplies olefins, polyolefins, aromatics, and a wide variety of other petrochemicals. Other sales also come from the production of natural gas properties in which the company has an interest with other producers are recognized on the basis of the corporation’s net working interest.

Revenues are recorded when the products are delivered, when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured.

On the side note guys, petrochemicals are chemical products which have been derived from petroleum. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewable sources such as corn or sugar cane. Petrochemicals are typically extracted during the refining process as crude oil and gas are distilled or cracked, and they can be utilized in a wide variety of ways.

How do they fit in the industry they operate in?

Fitting in and staying on the line is difficult considering that the nature of business is not unusual. Let’s find out the “how” on Meriam’s report below.

The energy and petrochemical industries are highly competitive.Exxon Mobil competes with other firms in the sale or acquisition of needed goods and services in numerous national and international markets. The company struggled with other industries in supplying the energy, fuel and chemical needs of both industrial and individual consumers. They manages to maintain some factors such as, management effectiveness, exploration and development program, project management, operational efficiency, research and Development, and safety, business controls and environmental risk management.

The top competitors of the corporation are Royal Dutch Shell plc., BP plc. and Chevron Corporation. Top industries they contest of are Petroleum Refining, Oil & Gas Transportation & Storage, and Convenience Stores & Truck Stops.

Petrochemical industry is a branch of heavy industry encompassing the production of synthetic materials and items. Products are mainly derived from the refining of petroleum and natural fuel gases.

Who are their suppliers and customers?

Of course a business can’t continue without this so-called “suppliers and customers”. Let’s have a drop down view to Exxon’s suppliers and customers.

The company has upstream, downstream, chemical components, oil, natural gas, and other business and operation in countries all over the world.Exxon Mobil products and services to mention are fuels, chemicals, aviation, natural gas, marine and lubricants and special products. Moreover, XOM has three brands of fuels and lubricants in the global market, such as EXXON, ESSO and Mobil. They have 38 refineries in 21 countries have a throughput capacity of 6.3 million barrels per day. Likewise, they provide refined products to nearly 34,000 service stations in 100 countries, and supports fuel to more than 600 airports and 200 seaports.

There are some factors that may affect the company’s supply and demands like, commodity prices, economic conditions, seasonal weather patterns, and changes in currency exchange rates, interest rates, inflation and other local or regional market conditions.

The principal fuels used in internal combustion engines (automobiles, diesel, and turbojet) and in the furnaces of stationary power plants are organic fossil fuels. These fuels, and others derived from them by various refining and separation processes, are found in the earth in the solid (coal), liquid (petroleum), and gas (natural gas) phases.

What is their workforce like?

I bet you would agree with me. It is more enjoyable and inspired to work in a company where the employees get the right treatment. Is this a “yes” or a “no” for Exxon Mobil Corporation. So join me guys and let us explore this one.

The corporation is committed to gender equality extends to all aspects of the employment relationship, including recruitment, hiring, promotion, transfer, termination, wage and salary administration, and selection for training. The people, technical expertise, financial strength, and global reach provide a competitive advantage and ensure broad exposure to high-quality opportunities from conventional exploration to opportunities that require close integration across the businesses.

In 2011, the company has a total of 82,100 regular employees and 17,000 employees in company-operated retail sites. Regular employees of the company are active executive, management, professional, technical and wage employees who work full time or part time for the corporation and are covered by the benefit plans and programs. Currently, 26 percent of worldwide workforce is women excluding company-operated retail stores.

XOM hires exceptional people, and individual are empowered to think independently, take initiative and be innovative. It focuses on developing a diverse workforce of highly talented individuals to help the business grow and use a long-term, career-oriented approach started with global recruitment of outstanding talent and continues with development from within through a wide range of assignments and experiences. Aside from its people, the company uses innovation and technology to deliver energy and petrochemical products to meet the world’s growing demand.

Look! Janice has something for us. She said “competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry. It is gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.”

PAY STRUCTURE

Exxon Mobil Corporation

Exxon Mobil Corporation

Exxon Mobil Corporation

Gossips

Let’s have some news here about Exxon Mobil Corporation.

On October 17, 2012 reuters.com announced that: Exxon Mobil Corp To Buy Celtic Exploration Ltd.-DJ. in a deal worth about CDN$3.1 billion ($3,14 billion ) including debt. Celtic said Exxon Mobil’s Canadian unit is offering CDN$24.50 a share for its outstanding shares, plus 0.5 of a share of a new company, representing a 35% premium to Celtic’s closing price of CDN$18.12 in Toronto Tuesday.

According to , ene rgyandcapital.com, October 18, 2012 , Exxon Mobil (NYSE: XOM) Acquires Canadian Oil and Gas Company in a $3.1 billion cash and stock deal, part of the company’s continued efforts to expand into the enticing shales of western Canada. Terms of the transaction indicate that Exxon will be paying 24.50 Canadian dollars ($24.92) per share, or a 35 percent premium on Celtic’s Tuesday closing price.

A statement coming from www.fool.com on October 19,2012 stated: ExxonMobil Reportedly Looks to Quit Major Iraq Oil Field. Recently, Exxon has run up against resistance from the Iraqi government over the company’s plan to engage in oil exploration in the semi-autonomous Kurdish region of northern Iraq. Some speculate it wants out of the Qurna field in order to focus on projects in the north of Iraq.

An article from reuters.com on October 22, 2012 stated: Iraq ambassador wants U.S. to pressure Exxon on Kurdistan . “We need the American government to exert some pressure on this company,” Jabir Habeb, Iraq’s ambassador to the United States, told reporters about Exxon after a panel on Iraq’s energy potential at the Center for Strategic and International Studies.

Exxon Mobil Corp agreed to buy Celtic Exploration Ltd.the company would purchase Canadian oil and gas company Celtic Exploration. On the other side XOM, intend to leave its flagship oil field in Iraq and the Obama administration should pressure XOM to slow down dealings with Iraqi Kurdistan.

CITATION

Who started the company and why?

http://www.sec.gov/Archives/edgar/data/34088/000119312511050134/d10ka.htm

http://en.wikipedia.org/wiki/Exxon_Mobil

http://exxonmobil.com/corporate/history/about_who_history.aspx

http://www.fundinguniverse.com/company-histories/exxon-mobil-corporation-history/

https://www.google.com.ph/search?q=Exxon+Mobil+Corporation+founder&aq=f&oq=Exxon+Mobil+Corporation+founder&sugexp=chrome,mod=0&sourceid=chrome&ie=UTF-8

http://en.wikipedia.org/wiki/John_D._Rockefeller

What is the background of the company? Its History and Development?

http://www.fundinguniverse.com/company-histories/exxon-mobil-corporation-history/

http://www.google.com/finance?q=NYSE%3AXOM&ei=T5SEULjvNsqhkAWlvwE

http://en.wikipedia.org/wiki/Exxon_Mobil

What is the nature of the business?

http://www.google.com/finance?q=NYSE%3AXOM&ei=T5SEULjvNsqhkAWlvwE

http://exxonmobil.com/Corporate/about_who.aspx

http://en.wikipedia.org/wiki/Exxon_Mobil

http://www.sec.gov/Archives/edgar/data/34088/000119312511050134/d10ka.htm

http://www.reuters.com/finance/stocks/companyProfile?symbol=XOM

http://www.knowmore.org/wiki/index.php?title=Exxonmobil_Corporation

Who is running the company and their background?

http://www.exxonmobil.com/Corporate/about_who_mgmt_rwt.aspx

http://www.reuters.com/finance/stocks/officerProfile?symbol=XOM&officerId=191865

http://insiders.morningstar.com/trading/executive-profile.action?PersonId=PS000018NF&flag=Executive&insider=Rex_Tillerson&t=XOM&region=usa&culture=en_US

http://en.wikipedia.org/wiki/Rex_Tillerson

http://www.exxonmobil.com/Corporate/about_who_mgmt_ddh.aspx

http://www.reuters.com/finance/stocks/officerProfile?symbol=XOM&officerId=186097

http://insiders.morningstar.com/trading/executive-profile.action?PersonId=PS00001UVA&flag=Executive&insider=Donald_Humphreys&t=XOM&region=usa&culture=en_US

Who is directing the company; How are the committees structured?

http://www.exxonmobil.com/Corporate/investor_governance_comm.aspx

http://www.exxonmobil.com/Corporate/investor_governance_directors.aspx

http://www.exxonmobil.com/Corporate/investor_governance_directors.aspx

http://www.exxonmobil.com/Corporate/investor_governance_directors.aspx

http://www.exxonmobil.com/Corporate/investor_governance_comm.aspx

http://www.exxonmobil.com/Corporate/investor_governance_directors.aspx

http://www.exxonmobil.com/Corporate/investor_governance_comm.aspx

http://www.exxonmobil.com/Corporate/investor_governance_comm.aspx

http://www.exxonmobil.com/Corporate/investor_governance_comm.aspx

http://www.exxonmobil.com/Corporate/investor_governance_directors.aspx

How do they make money?

http://en.wikipedia.org/wiki/ExxonMobil

http://www.sec.gov/Archives/edgar/data/34088/000119312512078102/d257530d10k.htm p23

http://www.sec.gov/Archives/edgar/data/34088/000119312512078102/d257530d10k.htm

http://www.exxonmobil.com/Corporate/Files/news_pub_ir_finstmts2011.pdf p F-27

http://www.exxonmobil.com/Corporate/Files/news_pub_ir_finstmts2011.pdf p F-27

How do they fit in the industry they operate in?

http://www.sec.gov/Archives/edgar/data/34088/000119312511050134/d10ka.htm p1

http://www.sec.gov/Archives/edgar/data/34088/000119312511050134/d10ka.htm p5

http://www.sec.gov/Archives/edgar/data/34088/000119312511050134/d10ka.htm

http://www.answers.com/topic/exxon-mobil-corporation

http://www.hoovers.com/company-information/cs/competition.Exxon_Mobil_Corporation.07cc70931047bfd5.html

Who are their suppliers and customers?

http://exxonmobil.com/corporate/history/about_who_history_alt.aspx

http://www.esso.be/Benelux-English/products.aspx

http://www.sec.gov/Archives/edgar/data/34088/000119312511050134/d10ka.htm p3

http://www.knowmore.org/wiki/index.php?title=Exxonmobil_Corporation

http://www.answers.com/topic/exxon-mobil-corporation

What is their workforce like?

http://www.sec.gov/Archives/edgar/data/34088/000119312512078102/d257530d10k.htm p1

http://www.exxonmobil.com/Corporate/about_what.aspx

http://www.exxonmobil.com/Corporate/about_who_sbc.aspx

http://www.exxonmobil.com/Corporate/imports/careers/careers_map.aspx

http://www.exxonmobil.com/Corporate/careers_emplpolicies.aspx

http://www.exxonmobil.com/Corporate/careers_emplpolicies_diversity.aspx

How do they treat their employees; what is the pay and working condition like?

http://www.sec.gov/Archives/edgar/data/34088/000119312512160085/d277949ddef14a.htm p15

http://www.exxonmobil.com/Corporate/careers_emplpolicies.aspx

http://www.exxonmobil.com/Corporate/about_who_sbc.aspx

http://www.sec.gov/Archives/edgar/data/34088/000119312512160085/d277949ddef14a.htm p11

http://www.sec.gov/Archives/edgar/data/34088/000119312512160085/d277949ddef14a.htm p21

http://www.sec.gov/Archives/edgar/data/34088/000003408812000026/r11kemsp061412.htm

http://www.sec.gov/Archives/edgar/data/34088/000119312512160085/d277949ddef14a.htm 38

http://www.exxonmobil.com/Corporate/careers_emplpolicies_programs.aspx

http://www.exxonmobil.com/Corporate/careers_emplpolicies_programs.aspx

http://www.exxonmobil.com/Corporate/careers_emplpolicies_programs.aspx

http://www.exxonmobil.com/Corporate/Files/news_pub_ir_finstmts2011.pdf pF-29

http://www.sec.gov/Archives/edgar/data/34088/000119312512160085/d277949ddef14a.htm p59

http://www.sec.gov/Archives/edgar/data/34088/000119312512160085/d277949ddef14a.htm 58

Gossips

http://www.reuters.com/finance/stocks/XOM/key-developments/article/2624409

http://www.energyandcapital.com/articles/exxon-mobil-nyse-xom-acquires-canadian-oil-and-gas-company/2696

http://www.fool.com/investing/general/2012/10/19/exxon-seeks-to-quit-flagship-iraq-oil-project.aspx

http://www.reuters.com/article/2012/10/22/us-usa-iraq-oil-idUSBRE89L1AO20121022

http://moneymorning.com/2011/05/02/buy-sell-or-hold-exxon-mobil-corp-nyse-xom-again-proves-to-be-a-profit-gusher/

http://seekingalpha.com/article/932251-gas-drag-may-cause-exxon-mobil-to-sag

http://www.dividend.com/blog/?p=53650

 

Researched by: Meriam and Janice

Written by: Meriam, Janice and Karla

Edited by: Maydee

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