Exxon Mobil: Escalating Costs Question Structural Change


  • Exxon Mobil agreed to massive 9% pay hikes, questioning the structural shift in the cost structure.
  • The energy giant faces a scenario of lower energy prices next year, especially natural gas.
  • The stock is already priced for targeted 2027 EPS estimates, though the structural business shift needed to reach such goals has major questions.

ExxonMobil"s Baton Rouge Refinery, Louisiana, USA.


Typical of a company raking in record profits, Exxon Mobil (NYSE:XOM) has turned around and hiked employee pay and benefits by a large amount. The downside here is that the energy giant isn’t expected to maintain record

Expense table

Source: Exxon Mobil Q3’22 supplements info

WTI chart

Source: Markets Insider

Nat. Gas chart

Source: Markets Insider

Natural Gas table

Source: EIA

2027 EPS slide

Source: Exxon Mobil 2022 corporate plan

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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