Thread regarding ExxonMobil Corp. layoffs

Stock Buyback?

Is XOM buying back shares in part to “hide” profits and not fully share with employees or increased dividends to share holders many of which are XOM employees and retirees? Or are they banking stock for a future large acquisition or merger.

https://www.marketwatch.com/articles/exxon-mobil-stock-price-buybacks-51670504609?mod=mw_quote_news

Maybe they could have invested some of this money on people and not had all the experience and knowledge leave or retire earlier than planned over the last 2 years. The company always talks about employees being the biggest asset and competitive advantage and playing the long game but this is only smoke and mirrors in the new XOM. The new company is nothing but bean counters and lawyers playing 3 card monte.

Don’t even get me started on all these waisted money over the years…Russia, XTO, Spring Campus….which management has never been held accountable.

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| 1571 views | | 5 replies (last December 11, 2022) | Reply
Post ID: @OP+1k6nYwhe

5 replies (most recent on top)

Correct no more greenies . So I’m guessing no splits any time soon.

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Post ID: @2ekw+1k6nYwhe

You don't invest in a company with the outlook of a shrinking business model. Investment level is low relative to the crude price, hence just return free cash directly to the shareholder whilst you can. You do the math.

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Post ID: @kpy+1k6nYwhe

I’m thinking they are buying back to reduce the number of outstanding shares so the greenies don’t continue to try and take over.

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Post ID: @nno+1k6nYwhe

Exxon will not be making those earnings again any time soon. And at 100 usd per share, the return on avoided dividend is low. It's a short term strategy for the short term shareholder, 3 times the investment in LCS is going on buy backs. Poor business for the long term.

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Post ID: @dir+1k6nYwhe

Stock buyback is tax free distribution to shareholders. It also reduces the total dividend payment. By 2025 total sharecount will probably be 3.6Gshares. At $1 dividend, that’s only $14.4G cash. Our dividend burden was close to $15G a few years ago with a smaller dividend.

Now assume our earnings are what they are today where we make $50G/year. That’s earnings per share of about $14/share. Use a 10X multiple and share price is $140

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Post ID: @dul+1k6nYwhe

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