Exxon Mobil: Buy The Drop Opportunity

Summary:

• Exxon Mobil’s acquisition of Pioneer Resources expands its Permian Basin reach, doubling its acreage and enhancing its growth prospects.
• Recent share price drop due to Federal Reserve’s slower rate cut pace for 2025 presents a buying opportunity for long-term dividend investors.
• Exxon Mobil boasts the largest free cash flow among large-cap energy firms, making it a strong value proposition despite recent market volatility.
• Risks include potential declines in petroleum prices and production efficiency in the Permian.
• Shares trade just slightly above the 3-year average forward P/E ratio and have an attractive risk profile on the drop.

Shares of Exxon Mobil (NYSE:XOM) skidded in December, with selling pressure accelerating last week when the Federal Reserve guided for a slower pace of federal fund rate cuts in 2025. Since Exxon Mobil is growing its operations, completed the acquisition of

Analyst’s Disclosure: I/we have a beneficial long position in the shares of XOM, CVX, COP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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