Exxon Mobil: Even As Lithium And CCS Grow, Shareholder Capital Still At Risk (Rating Upgrade)

Summary:

  • Exxon Mobil’s foray into lithium mining is a positive development, but it will not significantly alleviate the potential pain for current long-term stockholders.
  • I believe the decline of fossil fuel demand and the rise of renewables will lead to declines in Exxon’s revenues, even when including its growing lithium and carbon capture businesses.
  • Exxon’s current valuation is likely to drop lower as its finances deteriorate, and the company is fundamentally overvalued in the long term.

Old way or new way (in yellow) roadmarking

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Introduction and Thesis

I first wrote about Exxon Mobil Corporation (NYSE:XOM) in August 2023. Considering that my articles are written with a 5-10 year timeframe in mind, I didn’t anticipate writing a new piece on the company so soon after


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