Exxon Mobil’s abundance of cash and a highly valued stock may prompt the supermajor to pursue a deal, as investors seek a wise allocation of resources. Despite cash accumulation among all oil majors, Exxon stands out with a significant influx. With first-quarter net income of $11.4 billion, surpassing Wall Street predictions, Exxon faces pressure to utilize its resources effectively. While upstream earnings were impacted by lower oil and natural-gas prices, higher production volume mitigated some of the loss.
All of Exxon’s segments exceeded analyst expectations, except for the chemicals segment, which remains below the 10-year range in industry margins. Generating $11.4 billion in free cash flow in Q1, Exxon’s cash balance grew to $32.7 billion, the highest figure since 2008.
