This analysis was written in 2016 and while it contains bias, many of the comments are truthful. Most of us are loyal to a fault, but is this company showing signs of the next Enron? Greed & fear drove that company's demise. Is XOMs fate the same?
Not seeking to start a debate, just want some honest, open discussion.
https://ieefa.org/wp-content/uploads/2016/10/Red-Flags-on-ExxonMobil-XOM-A-Note-to-Institutional-Investors_October-2016.pdf
9 replies (most recent on top)
Insightful article. It was noticeable that the company began struggling in 2015 or so.
The receipt of dividend heavy stock certainly is an issue that I believe drives bad behavior.
Sorry but cups and lunches aren’t driving us into the ground. Your focus is way off. Issues are much more fundamental. What projects are we investing in. Is the FID cost estimate real or what the VP said the number would be.
Original post originator chiming in. I really appreciate the responses and understand the compare/contrast. While XOM may not have overt fraudulent behavior, the Management of both companies have made decisions that seem focused on self interest rather than the company's long term viability. The analysis from 2016 linked above pointed to some of the financial concerns and how Management should consider addressing them. Not of the warnings were considered and this is where we are. Not looking for agreement, but do feel that we should all reflect on where this company is currently and where it will be in 10-20 years. Thank you for your time and stay safe!
well...leader's wrong decisions can be as bad as fraud. At the end of the day. the Enron scandal started with its leaders, didn't it?
Exxon keeps acting the way it does then one can totally compare the company to enron. Are you NSI my friend?
Cannot compare ExxonMobil with Enron. ExxonMobil got badly hurt by Covid and bad mistakes like XTO and others. But overall ExxonMobil has a strong portfolio, oil and gas will be needed for a very long time despite growth in electric and solar. And do not forget strong polymer and chemical business. Stock will return to $60 - $70 and company will stabilize. Everyone makes mistakes and things can and will turnaround. As far as bad toxic culture, that will remain a drag, if this culture could be fixed, stock could go into the $80s. But that is unlikely. But overall, ExxonMobil will be there to stay for the long term, make no mistake.
Let’s not forget the careless spending that both Companies were/are guilty of. When I look in my cupboard I see more da** Yeti’s from projects completed. Is that necessary? I love lunch meetings since they always provide a great lunch but, honestly I’d rather have a job than fajitas. Oh, and let’s talk about themed meetings...for heaven’s sake we are Professionals NOT children. Keep up the frivolous spending and we will end up like Enron.
Enron's collapse was due to fraud and XOM's slow decline is mostly due to market's demand and its leaders wrong decisions.