Exxon Mobil Corp. (XOM) is an American multinational oil and gas company headquartered in Texas.
And while concerns over demand continue to put pressure on the industry, the company anticipates major improvements ahead…
In late September, Exxon highlighted that its upstream operations will grow its earnings by roughly $1.5 billion in the third quarter compared to the quarter prior.
The company also said that rising natural gas prices would benefit its upstream divisions’ profits by about $500 million to $900 million.
Meanwhile, the oil giant projected that its downstream business would report an incremental improvement as well, with its oil and liquids division poised to see $200 million to $600 million more in sales thanks to increased oil prices.
Exxon’s downstream business’ earnings are expected to rise as well. The company said they could jump by $500 million to $700 million versus the previous quarter.
These positive forecasts could suggest that while some economists are concerned about prices rising to less sustainable levels, demand for oil and natural gas are beginning to increase thanks to colder weather in the northern hemisphere.
This should bode well for Exxon despite some ongoing operational disruptions. The tighter supply of commodities, as well as higher oil prices, may enable the company to make more from sales – pushing its share price higher and potentially enabling it to better reward shareholders with its 5.6% dividend yield.
Elon Musk and Tesla still have one BIG PROBLEM that could derail the whole electric vehicle market.
No, it's not lithium.
It's another resource that's even more critical for electric vehicles…
In fact, every single Tesla Model 3 needs approximately 121 lbs of it… about 5-6x more than the amount needed for gas-powered cars.
And there's one tiny stock that I identified during my research that is uniquely set up to benefit from this new growing demand more than most…
It's virtually unknown and trading for less than $4 today.
So get the facts for yourself today while there's still time…